Good morning, friends. The regional war still holds sway as yet another facet of the Kingdom’s economy — its lineup of gigaprojects — falls victim to the resulting jitters, as m-o-m tendering activity sees a marked decline.

And that’s not all: The conflict has prompted Aramco to raise its Arab Light crude premium for its Asian customers by USD 17 a barrel for deliveries scheduled in May. In relative terms, the premium has never exceeded USD 10 a barrel over the past 26 years.

WEATHER- Looks like rain: Najran, Asir, and Jazan are in for a soaking today, while Riyadh, Makkah, Al-Baha, and the Eastern Region get off a little easier with just a sprinkle.

  • Riyadh: 29°C high / 18°C low;
  • Jeddah: 31°C high / 24°C low;
  • Makkah: 37°C high / 25°C low;
  • Dammam: 27°C high / 18°C low.

Watch this space

MACRO — The GCC can withstand war-related shocks, IMF chief says: Strong institutions and economic diversification will allow Gulf economies to absorb shocks from the US-Iran war, IMF Managing Director Kristalina Georgieva told Asharq Business. That being said, the global lender will “somewhat” lower its growth forecast for GCC nations, she added. Global growth, too, will see a downward revision.

Watch this space: The regional war and its economic impact is expected to dominate discussions among policymakers during the IMF and World Bank’s annual spring meetings, which will kick off on Monday, 13 April.

WAR WATCH — Debris from intercepted missiles lands near energy sites: Saudi Arabia intercepted seven missiles bound for the Eastern Province, with debris falling near energy facilities, according to statements by the Defense Ministry. The ministry said damage assessment was underway without specifying who launched the missiles.

OIL — South Korean envoy to lock in crude supplies in Saudi visit: South Korean presidential chief of staff Kang Hoon-sik is heading to Saudi Arabia to secure crude oil and naphtha supplies, Reuters reports. He kicks off his trip, which will also see him land in Kazakhstan and Oman, later today. Seoul relies on the Strait of Hormuz for over half of its crude imports.

PRIVATIZATION — Development plans for Prince Naif bin Abdulaziz International Airport are moving forward, as Matarat Holding and the National Center for Privatization & PPP (NCP) invite interested firms to submit credentials for the project’s prequalification phase, according to a statement. The tender has attracted 89 bidders — 55 local players and 34 international firms.

ICYMI: Matarat and NCP called for expressions of interest for the project — which includes the design, construction, operation, and maintenance of the facility — earlier this year. The project will be implemented under a build-transfer-operate contract with a concession period of 30 years.

Data point

13% — that’s how much Saudi Arabia’s total revenues are projected to rise in 2026, totalling SAR 1.3 tn, according to a SNB Capital report. The asset manager sees the Kingdom’s economy growing 4.3% this year — down from previous estimates of 4.7%.

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The big story abroad

US-Iran talks haven’t made much headway yet. US President Donald Trump shut down Iran’s 45-day ceasefire proposal, which he criticised for being “not good enough.” Trump warned that every bridge in Iran could be destroyed if a resolution — that reopens the Strait of Hormuz — was not reached by later today. “The entire country can be taken out in one night,” Trump said during a news conference yesterday.

Tehran hit back with a ten-point proposal, which reportedly demands assurances that Iran would not be attacked again, an end to Israeli strikes on Lebanon’s Hezbollah, and the removal of all sanctions, two senior Iranian officials told the New York Times.

Meanwhile, in the world of finance: Global investment bank Goldman Sachs said that the recent exodus of retail investors from private credit has created an opportune moment to invest in the asset class. The firm characterized the trend as a “meaningful shift” which will result in heavier reliance on institutional investors.

Also in the news orbit is Nasa’s latest mission, Artemis II, which has officially reached thefarthest point in space ever travelled by humans. Launched earlier this week, the mission took four astronauts around the far side of the moon and they’re now on their way back to Earth.

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