THIS MORNING: Saudi and Egypt near commercial start on their 3 GW electricity link

Good morning, wonderful people. Saudi Arabia’s merchandise trade surplus contracted 10% y-o-y in June as both oil and merchandise exports fell, marking the first decline since February. Meanwhile, Aramco expects its upcoming mining joint venture with Maaden to accelerate copper exploration by combining 90 years of subsurface data with AI and high-performance computing. Let’s dive in.

Destination Sahel Issue IV, the final issue in the series, drops this week, and we’re exploring how Egypt’s North Coast could become more than a summer story.

Living in Sahel year-round is moving from a seasonal idea to a serious question; an industrial push is reshaping the Coast’s economic base, and Egyptian homebuyers are weighing Sahel against Dubai, London, and other Mediterranean markets for where to put their money.

In this issue, we get into what it would take for Sahel to work beyond the summer, how industry fits into the Coast’s next chapter, and the numbers behind the Sahel-vs-everywhere debate.

Click here to subscribe to the Egypt edition, coming straight to your inbox today.

Power bridge, almost ready

Saudi Arabia and Egypt are in the final stages of technical and operational trials on their 3-GW electricity interconnection, with the results of precision voltage, frequency, and other technical measurements set to determine the timing of commercial operation, a government official tells EnterpriseAM.

Pre-operation trials are expected to conclude by the end of August, the official says. Coordination meetings between the two sides are underway, following an easing in regional tensions, to verify compliance with technical standards and confirm that the Phase 2 works have left both grids ready for operation, the source said. A government document seen by EnterpriseAM says that Phase 2 was completed in 1Q 2026. Full-capacity operation would allow the two grids to exchange up to 3 GW of power, in line with their differing peak-demand timings. Full operation is expected in September, according to an unnamed government official.

The project: The USD 1.8 bn project, first floated in 2012, runs on 500-kV high-voltage direct current (HVDC) technology, built for moving large amounts of power over long distances with minimal losses. It links Egypt’s Badr converter station to Saudi Arabia’s East Madinah and Tabuk stations via roughly 1.4k km of overhead lines and subsea cables crossing the Gulf of Aqaba.

Looking for int’l partners: Saudi Arabia is launching a separate tender for an international consultant to oversee the cable’s maintenance, the Arabic press reports, citing an unnamed official. Egypt is reportedly preparing a tender to select an international firm to ensure the subsea electricity cable is secure.

BACKGROUND- We first flagged this project in 2021, when it was moving forward with signed EPC contracts and the full link was slated for 2025. Since then, the launch date has slipped repeatedly: PM Madbouly targeted April 2026 during his site visit in October, and Electricity Minister Mahmoud Esmat said in February it would take place “within the coming weeks” — and as we noted two weeks ago, it had slipped again to the end of 2026.

Makkah pact courts fourth member

Bangladesh could join the Makkah mutual defense pact that Saudi Arabia signed with Turkey and Pakistan this month, and it is viewing the prospect “positively,” Reuters reports, citing comments by junior Foreign Minister Humayun Kabir. An unnamed Bangladeshi Foreign Ministry source confirmed to the newswire that Saudi Arabia has invited Dhaka to join.

REMEMBER- The framework, signed in Makkah and modeled on NATO’s collective-defense principle, commits its three Sunni-majority members to treat an armed attack on any one of them as an attack on all. It would bind together a nuclear-armed state (Pakistan), NATO’s second-largest army (Turkey), and the world’s top oil exporter (Saudi Arabia). Turkey has said the agreement is open to expansion.

Armah Sports nears Nomu graduation

Armah Sports will move to Tadawul’s main market on Sunday, 30 August, completing its transfer from the Nomu Parallel Market, the company said in a Tadawul announcement. The stock will trade under a 10% daily price fluctuation limit. The exchange approved the transfer earlier in the month.

Atomic red tape

Civil nuclear cooperation between Saudi Arabia and the US is moving forward, with President Donald Trump submitting an accord to Congress for review, the Wall Street Journal reports, citing an unnamed government official. Trump reportedly maintained his last-minute condition requiring Riyadh to normalize relations with Israel.

Catch up quick: Riyadh and Washington signed the 30-year agreement last month, ostensibly paving the Kingdom's way to enriching uranium on its soil — despite Trump later signaling that there would be no enrichment. The agreement faces a mandatory 90-day congressional review period, opening a window for skeptical lawmakers to try to block it.

Happening next week

The fifth edition of LEAP will kick off in Riyadh next Monday and run through Thursday (3 September) at the Riyadh Exhibition and Convention Center, Requad AI’s CEO Abdullah Al Jaafari told Wamda. Expectations for this year’s version are to focus on further data center, cloud, and chip investments, as well as updates from Humain.

Agentic AI and Arabic-first technology are expected to make a strong appearance. Governments and companies in Saudi Arabia and the wider region are increasingly looking for Arabic-first products rather than English-language technology merely adapted for Arabic-speaking users.

Talent as a key constraint will also be a main topic of discussion, with Saudi Arabia aiming to train more than 20k data and AI specialists by 2030. Meanwhile, AI-supported software development is lowering the barrier to building products, potentially allowing more people with industry expertise to become first-time builders while experienced engineers remain essential for developing reliable products.

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The big story abroad

Taking top billing today are Canada’s retaliatory tariffs on US goods, featuring levies of up to 50% on USD 20 bn worth of imports from its southern neighbor. Effective 8 September, the tariffs target steel, dairy, and agricultural equipment and match Washington’s rates on Canadian goods.

In other geopolitical news: The Kurdish-led Syrian Democratic Forces have been dissolved as their fighters integrate into the Syrian military, the group’s leader Mazloum Abdi said. With US backing, the group helped combat the Islamic State and previously controlled parts ​of the country. The move signals a key breakthrough in President Ahmed Al Sharaa’s efforts to unite Syria’s factions.

Meanwhile, in the tech world: SpaceX aims to build a USD 100 bn spaceport in Louisiana, spanning 125k acres and marking the company’s second private launch site. SpaceX plans to begin building the base next year, targeting its initial rocket launches for 2029.

Speaking of tech, Anthropic is expected to inform investors that its total addressable market exceeds USD 30 tn, surpassing the USD 28.5 tn projection set by Elon Musk’s rocketmaker. The startup’s figure accounts for the full scope of its work that could be accomplished by AI models, and calculates the gains available if a product or service achieves 100% market share.