Good morning, ladies and gents. We’re wrapping up budget week with highlights from the annual budget forum, where ministers outlined the hallmarks of next year’s spending plans: more focus on quality, smarter allocation of funding, deeper private sector participation, and flexibility to reassess and recalibrate the big projects.

We also have the latest PMI figures from Riyad Bank in today’s issue. The non-oil private sector expanded at a slower rate in November, with new orders extending growth streak and output levels continuing to rise. Let’s dive in.

WATCH THIS SPACE-

#1- PIF will reportedly get a gigantic chunk of EA: The Public Investment Fund’s (PIF) record leveraged buyout of Electronic Arts (EA) is set to hand it a 93.4% stake, almost full control, of the Nasdaq-listed gaming giant, Wall Street Journal, reports citing a filing to Brazil’s antitrust regulator. US private equity firm Silver Lake is slated to take 5.5% and Jared Kushner’s Affinity Partners 1.1% once the consortium-led takeover closes, according to the filing.

Both Silver Lake and Affinity Partners count PIF as a limited partner, amplifying the sovereign wealth fund’s look-through exposure to the acquisition.

REFRESHER- The PIF-led consortium agreed in September to take EA private in a USD 55 bnall-cashleveraged buyout, funded with some USD 36.4 bn of equity and USD 20 bn of debt fully underwritten by JPMorgan. The offer values EA at USD 210 a share, around 25% above its predeal close and above its prior all-time high, with PIF rolling its existing 9.9% stake. The transaction is expected to close in 1Q 2027 subject to regulatory and shareholder approvals, after which EA will be delisted from Nasdaq.

#2- GCC aims to finalize joint air defense shield: GCC states are focused on completing a unified air defense network “in the near future,” GCC Secretary-General Jasem Al Budaiwi told Al Arabiya on Tuesday (watch: runtime: 21:45), ahead of the 46th GCC summit. He described the meeting as “extremely important” in light of recent attacks on Qatar, including an Iranian missile strike on Al Udeid US base and an Israeli strike on a meeting of senior Hamas members in Doha, which highlighted the need for a coordinated defensive posture. The bloc will also focus on increasing defense training programs and making them more comprehensive.

Regional energy integration is also a focus, including linking southern Iraq to the Gulf electricity grid, The National reports, citing Al Budaiwi. The first 500 MW are expected in early 2026, before scaling that to 2 GW. The project could also extend Gulf electricity exports to other Arab states facing shortages, he added.

The GCC Summit’s final communique emphasized the importance of cooperation in renewable energy, AI and tech, as well as trade and tourism, and encouraging investment in strategic projects, particularly in infrastructure, transport, energy, communications, water, and food. On the trade front, the bloc is finalizing agreements with New Zealand and South Korea, Al Budaiwi is quoted as saying by the National.

#3- Prince Mohammed bin Salman Stadium is on track, set to “start taking shape by the middle of next year,” Shireen Hamdan, global director of designer company Populous told AGBI. The 45k-seat stadium in Qiddiya is designed to host 2034 World Cup fixtures, as well as Saudi Pro League football clubs in the following years.

Development is not affected by cutbacks to other infrastructure projects, Hamdan said, adding she expects it to be finished before 2031. Projects tied to time-sensitive events, including the men’s soccer tournament and Expo 2030, are reportedly being prioritized over other capital-intensive construction projects such as Neom.

  • An SAR 4 bn construction contract — awarded in October 2024 to a Saudi-Spanish consortium — is just a portion of the project expected to cost a lot more by the time it opens for business, according to Populous.

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THE BIG STORY ABROAD-

It’s a pretty slow news day in the business press, with no one story dominating headlines. Among those getting ink:

#1- HSBC has appointed Brendan Nelson as chairman, making his interim role permanent seven months after launching a search to replace former chair Mark Tucker. The decision came just a day after CEO Georges Elhedery said Nelson was not seeking the position permanently. Nelson joined the bank’s board in September 2023 and has been serving as interim chair since October. He will continue to chair the Group Audit Committee until HSBC releases its 2025 results in February, after which a successor will be announced. (Reuters | Wall Street Journal | Financial Times)

#2- Meta has poached Apple’s head of user interface design Alan Dye to accelerate its push into AI-powered devices. Dye, who led Apple’s user interface design team since 2015 and played a key role in products like the Apple Watch, iPhone X, and Vision Pro headset, will join Meta as chief design officer. His departure adds to recent senior exits at Apple, including COO Jeff Williams and AI chief John Giannandrea. (Financial Times | Bloomberg | Reuters)

#3- Bond investors are sounding the alarm over the US Treasury appointing Kevin Hassett as the next Federal Reserve chair, fearing he could bow to political pressure from President Donald Trump to cut interest rates aggressively, Financial Times reports. The Treasury has sought market feedback on potential candidates, including Hassett, during November meetings. Hassett, a former Trump adviser and economist, has emerged as a frontrunner to replace Jay Powell when his term ends in May 2026.

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