THIS MORNING: Red Sea Film Festival canceled

Good morning, friends. We’re ending our abridged week with another light issue ahead of the National Day holiday.

PIF is reportedly ready to share one of its marquee clubs with private money for the first time since it took over the Big Four in 2023. The buyer at the head of the table already owns AC Milan, and Cristiano Ronaldo is looking to get in on the action, which could make him a part-owner of the team that pays him.

Meanwhile, IQ Robotics is making a more telling bet. A company that sells warehouse robots only starts running the warehouse itself when it expects the space to stay full, and it has made that call about Saudi e-commerce volumes this month, of all months.

**A quick programming note before we dive in: EnterpriseAM KSA won’t be landing in your inbox tomorrow or Thursday — we’re taking the next two days off in observance of Saudi National Day. Enjoy the long weekend, and we will be back in your inboxes bright and early on Sunday.

With the EnterpriseAM Egypt Forum two weeks away, here's what's shaping up on the agenda:

• Where does AI fit on the list of topics keeping CEOs awake at night as they plan their strategies for 2027 and beyond?
• Is there really an AI opportunity for Egypt?
• An industry insider warns that your company is about to get attacked.
• What does AI mean for your company, your team, and your job?
• What does AI mean for your family — from what your kids should be studying to how to protect aging parents from scams and disinformation

Join us on 5 October in Cairo. Attendance is by invitation only, and seats are filling up quickly. Request your invitation here.

RSIFF 2026 cancelled

This year’s edition of the Red Sea International Film Festival has been canceled, according to a statement by the Red Sea Film Foundation. The event will return to Historic Jeddah in 4Q 2027 at a yet-to-be-determined date. The announcement — which did not mention the ongoing war — attributed the decision to a review of the timing and extensive logistical needs required for an event of this scale.

Ceer to begin its EV line with Exobot

Ceer’s first two cars are out, with production due to start next quarter. The national EV brand’s flagship sedan and Exobot SUV will be the first of seven models Ceer plans to roll out over the next five years across midsize and compact segments, according to a press release. Both will be manufactured at the Ceer Manufacturing Complex, which the company designed for stamping, body construction, painting, and final assembly.

Revving up Gulf expansion: The carmaker plans to expand to other GCC countries in 2028, followed by a gradual rollout across the broader MENA region that is expected to run through 2034, Ceer CEO James DeLuca told Asharq Business (watch, runtime: 4:29).

Ceer expects to contribute SAR 30 bn (USD 8 bn) to GDP and improve the trade balance by around SAR 80 bn (USD 21 bn) by 2034. The company is also targeting 45% local content by 2034 and expects to create about 30k jobs.

War watch

The Houthis want to keep their conflict with Saudi Arabia a two-party fight. The group warned countries against joining the Kingdom in its war, Mohamed Al Boukhati, a member of the group’s political bureau, told the Associated Press (watch, runtime: 1:15). The group has no intention of targeting US cargoes or those of any country other than Saudi Arabia, which is in line with what the group told US officials in Oman. Al Boukhati cast the campaign against the Kingdom as retaliation for Riyadh’s attempts to open internal Yemeni fronts against the Houthis.

No signs of backing down: The group is fighting on three fronts — Bab Al Mandab, the regional fight against Saudi Arabia, and Yemen’s internal conflict — and has no intention of retreating, Al Boukhati said.

REMEMBER- There hasn’t been any direct intervention by regional or international powers, except for mediation efforts by China and Pakistan. Riyadh previously asked the US for military support, but Washington declined and offered intelligence-sharing and targeting support instead.

London to aid Riyadh in Houthi conflict: UK Prime Minister Andy Burnham has agreed to provide Saudi Arabia with air-to-air refueling to support Saudi defensive operations against Houthi attacks, Bloomberg reports. UK support for Saudi aircraft during defensive operations will commence within days and is slated to run for several weeks.

UK will rally allies: London will also lobby international allies to bolster the Kingdom’s defense, unnamed sources told the outlet. The Burnham government reportedly believes assisting Saudi Arabia in countering Houthi aggression will restore regional stability and safeguard critical shipping lanes in the Bab Al Mandab Strait, one source said.

A settlement of Paramount importance

Paramount has settled the US antitrust lawsuit threatening its USD 110 bn Warner Bros. Discovery takeover, clearing the way for the Gulf-backed merger, Bloomberg reports. The media giant agreed to commit to an annual 30-film requirement, spend an extra USD 1.5 bn on US production over the next five years, and enter distribution agreements for its cable arms. These are among several terms agreed upon with the California-led group of US states.

PIF clinches US media foothold: The merger is backed by nearly USD 24 bn in commitments from Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad, and the Qatar Investment Authority. The Gulf funds are set to hold minority, non-voting stakes in the combined company.

International soda, local touch

PepsiCo has cut the ribbon on a USD 10 mn regional R&D hub in Riyadh, which will create localized flavor profiles and packaging concepts tailored to regional consumer tastes, the company said in a press release. Saudi scientists and engineers will staff the facility, collaborating with PepsiCo’s broader R&D network across centers in Brazil, China, Germany, Mexico, and the US.

Deepening its local presence: The F&B giant announced the investment last year with the inauguration of its expanded regional headquarters in Riyadh’s King Abdullah Financial District. PepsiCo has invested more than SAR 9 bn in Saudi Arabia over the past eight years, including a SAR 199 mn Dammam plant expansion in 2023 and a SAR 9.5 mn land lease in Riyadh last year.

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The big story abroad

In the absence of a single story dominating the international press, several developments have taken the spotlight. Here are the most pressing updates making the rounds this morning.

JP Morgan Asset Management has signed an agreement with the Qatar Investment Authority (QIA) to establish a USD 20 bn multi-asset strategic partnership, which will span public and private equities and credit. The effort includes a USD 15 bn long-term public equities mandate for QIA and a USD 5 bn private markets initiative targeting established US middle-market companies.

US bases on Greenland? The Trump administration is reportedly looking to open two military bases in Greenland as per a trilateral agreement expected to be signed with Denmark and the Greenlandic government today. The locations include a former Cold War-era base in southern Greenland and a facility on the east coast.

AI will reshape credit ratings + ins., S&P says: Variations in how quickly financial institutions adopt AI, manage governance, and prepare operationally mean the technology will play a growing role in either bolstering or eroding their credit standing in the coming years, S&P Ratings said in a report. Ins. players are also expected to be swept up in the new AI-powered status quo, with many of the largest multiline insurers and reinsurers already transitioning to formal AI integration.