Good morning, ladies and gents, and welcome to the last week of the first month of 2026. It has been quite a start to the year with geopolitical developments taking the world by storm, and we surely hope it does not set the tone for the rest of the year (although it’s looking increasingly likely this was just the warmup).

In today’s issue: The real estate foreign ownership law is now live, the Public Investment Fund raised USD 2 bn from an oversubscribed sukuk issuance, and Fitch’s BMI is bullish on our growth prospects in 2026. Let’s dive in.

WEATHER- The storm is moving out: The weather warning for heavy thunderstorms that blanketed the Kingdom over the weekend largely wraps up today. While the early hours may still see the tail end of moderate rain in Riyadh and the Eastern Province, conditions are expected to clear quickly.

  • Riyadh: 20°C high / 11°C low.
  • Jeddah: 31°C high / 24°C low.
  • Makkah: 32°C high / 24°C low.
  • Dammam: 22°C high / 14°C low.

Watch this space

AUTO — PIF-backed Lucid is taking its Saudi localization strategy a step further, extending plans beyond vehicle assembly to include sourcing rare-earth magnets from Saudi suppliers, CEO Marc Winterhoff told Semafor on Friday. The EV maker is looking to source output from a rare earths processing plant planned by Ma’aden in partnership with the US-based PM Materials, Winterhoff said. The move would anchor the entire EV supply chain within the Kingdom.

Global dynamics are at play: Turning to Saudi suppliers would effectively cut China out of Lucid’s supply chain as early as this year, after the world’s largest supplier of rare earths imposed export restrictions last year amid escalating trade tensions with the US. “We are well underway to move completely away from China in 2026,” Winterhoff added.

BACKGROUND- Lucid expects its first Saudi-made vehicle to roll off the line before the end of the year at its factory in King Abdullah Economic City, where construction wrapped up in December. The plant will have an annual capacity of 150k units, mostly for export, and will later expand production to include existing models, such as Air and Gravity.

ENERGY — The European Union is likely to sign an energy MoU with Saudi Arabia soon, outlining an organized framework for cooperation in energy transition and sustainability, EU Ambassador to Saudi Arabia Christophe Farnaud told Aleqtisadiah on Thursday. Farnaud expects that the Kingdom’s second-largest trade partner will boost its investments in Saudi over the next five years, up from EUR 30.7 in 2023 — 29% of the Kingdom’s direct foreign investments.

TRANSPORT — Don’t expect to see the Uber-WeRide robotaxi across the country just yet, with the partnership between the ride-hailing platform and the autonomous driving tech player mainly focused on broadening coverage within Riyadh for the time being, Uber’s Head of Autonomous Mobility in the Middle East Mohamad Jardaneh tells EnterpriseAM. “This deployment lays the groundwork for broader expansion in Saudi Arabia as regulatory frameworks continue to evolve,” he said.

As things stand: Three months post-launch, Uber and WeRide’s autonomous robotaxi service remains focused on the initial geofenced route linking Roshn Front and Princess Noura University with human safety drivers onboard. Jardaneh said the rollout was met with “strong early interest” from commuters. He did not disclose the specific number of WeRide AVs available on the Uber app in the Kingdom — the Transport General Authority had aimed to have 20 AVs running by the end of 2025.

SPORTS — Gov’t delays 2029 Asian Winter Olympics at Neom: The Saudi Olympic and Paralympic Committee and the Olympic Council of Asia have jointly agreed to defer the 2029 Asian Winter Games, which were originally scheduled to take place at Neom’s Trojena mountain resort. The government will reportedly negotiate a new date for the event, Reuters reported, citing an unnamed source at the Saudi Olympic Committee.

Expect other winter sports events in the meantime: Under a revised agreement, Saudi Arabia will organize several independent winter sports competitions over the next few years. This is intended to boost interest in winter sports and cultivate a local talent base, the statement said.

Data point

[wwtt] 7.4 mn bbl / d — that’s the volume of Saudi Arabia’s crude oil exports in November, rising m-o-m by 278k bbl / d to hit the highest level since March 2023, according to Jodi data. Crude production also rose by 48k bbl / d to reach 10.1 mn bbl / d. Meanwhile, crude oil refined by refineries dropped by 152k bbl / d to 2.6 mn bbl / d, while direct crude burn also edged down by 76k bbl / d to 317k bbl / d.

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The big story abroad

US President Donald Trump has threatened Canada with a 100% tariff if it strikes a trade pact with China, accusing Canadian Prime Minister Mark Carney of turning the US’ northern neighbor into a “Drop Off Port” for Chinese goods. The trade escalation comes days after Carney announced a partnership with Beijing — its second largest trading partner after the US — to mutually reduce tariffs on certain products, including Chinese electric vehicles and Canadian agricultural products.

Meanwhile, a massive winter storm is making its way through the US, triggering power outages and more than 4k flight cancellations. Over 22 states have declared a state of emergency as they brace for the cold.

ALSO WORTH READING THIS MORNING- Europe risks being overtaken by the US and China if it doesn’t spur business practices, business elites departing Davos have said, pointing the finger at the continent’s bureaucratic obstacles, over-regulation, and lack of consolidation in resources. (Bloomberg)

Circle your calendar

Jeddah will host the World Economic Forum’s (WEF) Global Collaboration andGrowth Meeting on 22-23 April 2026, state news agency SPA reported. The meeting, themed “Building Common Ground and Reviving Growth,” was announced by Economy and Planning Minister Faisal Alibrahim during his closing remarks at the WEF annual meeting in Davos.

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