Tighter financial controls at Al Nassr

Good morning, wonderful people. Start with a number that keeps getting bigger: the Kingdom’s merchandise trade surplus jumped 328.8% y-o-y in May, extending a run that went 219% in March and 100% in April. The imports side is doing more work than the headline suggests, falling 19.5% y-o-y against a comparatively modest 3.9% rise in exports.

ALSO- PIF is placing a bet on the awkward middle of the capital stack. Its Jada Fund of Funds made a first commitment to Growth Catalyst Fund I, a PE fund chasing USD 200 mn to back growth-stage Saudi SMEs — the companies that have outgrown venture money but can't yet reach the public markets.

BUT FIRST- On our war watch: The Houthis say they downed a Saudi reconnaissance drone over Al Jawf province yesterday, releasing footage that appears to show the wreckage, the group's latest claim a day after it said it hit Saudi oil facilities in Jazan and Yanbu. No confirmation from Riyadh or the coalition. Houthi attacks have reduced ship traffic through the Bab Al Mandeb Strait, which saw 11 vessels pass yesterday — the lowest level in months.

PIF to rein in Al Nassr spending?

The Public Investment Fund is imposing tighter financial controls at Al Nassr after the club’s debt exceeded SAR 800 mn, an unnamed source told Arriyadiyah. The liabilities stem mainly from decisions made last season, when the club was among Asia’s biggest spenders on overseas signings in 2025.

PIF’s response runs along three tracks: restricting some of the executive management’s financial powers, bringing in independent financial, commercial, and legal advisors to lift revenues and cut costs, and evaluating takeover offers. The spending clampdown is the immediate lever — the executive management will be barred from signing players or coaches without sufficient funds generated from sponsorships and the club’s own revenues for the new season, the source said.

What’s next? PIF is reviewing two acquisition offers for Al Nassr, with a preference for a partial sale rather than a full exit, Arriyadiyah’s source said.

ALSO- Club chairman steps down: Al Nassr Chairman Abdullah Al Majed announced on Saturday he will leave the role at the end of his statutory term, he said on X. He will not stay on through the automatic extension permitted under Saudi law, citing work commitments.

This is all part of the plan: Al Nassr is one of PIF’s Big Four SPL clubs, all facing collective budget cuts of USD 200-400 mn as the fund tightens spending. The clubs’ boards are assembling legal teams ahead of next season, bracing for contract disputes from players whose salaries can no longer be met in full. PIF has already sold 70% of Al Hilal to Kingdom Holding and is seeking buyers for the rest of its football portfolio.

Airlines pull back

International carriers are extending suspensions and cutting frequencies to Saudi destinations as regional escalation continues, The National reports. The pullback interrupts a recovery that had been building since regional flights were widely grounded at the start of the Iran war in late February.

Who’s flying and who’s not: British Airways has permanently suspended flights to Jeddah and will cut Riyadh service from two daily flights to one from 8 August. Lufthansa Group carriers — Lufthansa, Swiss, Austrian, and Brussels Airlines — have suspended flights to Riyadh and Dammam until 24 October. KLM has suspended Riyadh and Dammam service until 23 August. Air France flights to Riyadh remain suspended until 24 July, ITA Airways until 15 September, and Cathay Pacific until 25 October. Scoot has suspended its Singapore-Jeddah route until 8 August.

The disruption extends well beyond the Kingdom. Carriers are avoiding the airspace of Iran, Iraq, and Israel, along with parts of the Arabian Gulf, with Dubai hit hardest — Singapore Airlines, Cathay Pacific, Air Canada, Finnair, and Philippine Airlines have all pushed resumption dates to late October or beyond. Even carriers that have restored service, like Turkish Airlines, are warning of further cancellations.

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