Good morning, wonderful people. We’re going to kick off today with a nice run of five stories that should put a smile on even the grumpiest of faces on this fall morning. And if you’re into air freight or air travel? Well, we’ve got a packed news well just for you.

#1- IT’S OFFICIAL- We’re hosting the 2030 World Expo, having trounced Italy and South Korea in balloting by member states of the Bureau International des Expositions late yesterday. Riyadh took 119 of 165 votes cast, according to a BIE post on X, while Busan took just 29 votes and Rome — which has hosted before — a mere 17.

The event could attract mns to the Kingdom, cementing our position as one of the world’s fastest-growing globally significant tourism destinations.

So, when’s it happening? October 2030 to March 2031.

How much will we invest? Something on the order of USD 7.8 bn or so, based on what officials had said at the time they first mounted the bid. We’re still waiting for more details on investment plans, the location of the pavillion, et cetera.

And there’s more: Saudi looks on track to get the nod to host the 2034 FIFA World Cup — and Neom will host the 2039 Asian Winter Games.

The World Expo win is getting plenty of play in the international press: New York Times | Bloomberg | Reuters | Politico.

!_Anchor02-1 #2- We now own 10% of Heathrow after the Public Investment Fund (PIF) acquired the stake from Ferrovial, which offloaded in a GBP 2.4 bn transaction the 25% stake it’s owned for some 17 years. Ardian, the European private equity major headquartered in France, acquired the remaining 15%. The transaction still requires regulatory approval, Ferrovial said in a disclosure. The story is getting ink in the Financial Times and from the BBC.

#3- HAPPENING NOW- The first Asian exchange-traded fund tracking Saudi equities made its trading debut in Hong Kong this morning, gaining 0.9% in early trading.

Sound smart: The CSOP Saudi Arabia ETFtracks the 56 constituents of the FTSE Saudi Arabia Index and counts the PIF as an anchor investor, CSOP said in a press release. PIF Deputy Governor Yazeed A. Al-Humied is in Hong Kong this morning for the start of trading. You can check out the ETF on Bloomberg (WISAUNT) or Reuters (2830.HK). It is run by Hong Kong-based CSOP Asset Management.

More to come: “Today is a milestone in our financial cooperation with Saudi Arabia,” reporters quoted Hong Kong Financial Secretary Paul Chan as saying at the launch event. “We can expect to see more products to be made available in both the Hong Kong and the Saudi markets for our respective investor bases.”

See it as: The latest sign in our warming ties with China, one of our most important energy markets and a new diplomatic and investment partner.

#4- The 2023 Saudi Games kicked off yesterday with the opening ceremony at Riyadh’s King Fahd International Stadium. More than 6k athletes will compete in 53 events ranging from tennis and boxing to archery and wrestling through 10 December.

#5- Al Hilal landed a place in the AFC Champions League’s final 16 last night after putting down Uzbekistan's Navbahor 2-0, potentially setting up a fifth crown for the Saudi team.

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HAPPENING TODAY-

Lula is in town ahead of COP28 — and is getting the royal treatment, having met Crown Prince and Prime Minister Mohamed bin Salman at Yamamah Palace yesterday before he heads out to the UAE for COP28, the Saudi Press Agency reports. Prince Mohamed and the Brazilian president inked a joint agreement to expand cooperation on the energy front.

Look for more news today as the two sides look to shore up global cooperation on energy and as Brazil angles to line up fresh Saudi investment. Reuters says Lula wants Saudi investment to help speed the “growth acceleration” scheme his administration recently launched.

AND- The Jazan Investment Forum kicks off today in a bid to lure investment to the region. Look for the emphasis to be on sectors including the green economy, digital and logistics transformation, fintech and others.

HAPPENING TOMORROW-

GET READY for a hectic end to a busy week:

#1- COP28 kicks off tomorrow, with thousands of global leaders in climate, policy, and business touching down in Dubai for 13 days of intense negotiations to save our planet from climate catastrophe. Check out the full agenda for the summit, which runs from 30 November to 12 December.

The loss and damage fund and who’s going to pay for it is already causing a ruckus: Former world leaders and leading economists have signed a joint letter calling on oil-producing states — like the conference host country and its Gulf neighbors — to pay a USD 25 bn levy to fund the loss and damage fund, the Guardian reports. Little progress has been made on the landmark loss and damage fund over the past year after delegates from some 200 nations signed off on the pact at the close of COP27.

OPEC and the IAE are trading barbs as COP kicks off: OPEC Secretary General Haitham Al Ghais accused the International Energy Agency (IEA) of smearing the oil and gas industry in a recent note that said that the industry was facing a “moment of truth” on the worsening climate crisis. “This presents an extremely narrow framing of challenges before us, and perhaps expediently plays down such issues as energy security, energy access and energy affordability,” he said.

#2- It’s OPEC+ o’clock: OPEC+ member states are meeting tomorrow to discuss how the cartel of oil-producing nations will respond to falling oil prices, decide on next year’s production targets, and make a decision on whether to prolong production cuts. The meeting was initially scheduled from Sunday, but was pushed back after alliance members filed to reach a consensus on the output quotas for African members.

Is another delay in the cards? Reuters picked up chatter from OPEC+ sources that the once-delayed meeting may be delayed again as African member states seem adamant on their refusal to cut production quotas for 2024. Bloomberg also thinks talks are at an impasse this morning.

#3- So. Much. Nomu: Armah Sports makes its SAE 137 mn parallel market debut tomorrow, a disclosure from Tadawul read yesterday, with shares allowed to move up or down 30% during the debut, as is customary with Nomy launches.

BACKGROUND- The owner and operator of the Optimo and B-Fit fitness chains, Armah finalized the book-building process for its market debut strong demand, allowing it to price the IPO shares, which make up a 15% stake in the company, at SAR 28.00 a piece — comfortably at the top of the range that financial advisor Saudi Fransi had provided.

ADVISORS- Saudi Fransi Capital is leading the transaction as financial advisor, lead manager, and bookrunner. Sate is legal counsel, PwC is financial due diligence advisor, while Baker Tilly is auditor, and Portas the market consultant, according to the company’s prospectus (pdf).

Why it matters: The parallel market has been on a tear this fall, seeing high demand from qualified investors for a run of IPOs. Yes, they’re smaller. And yes, they’re open only to qualified investors. But the thesis is that Nomu companies will learn the ins and outs of being a public institution as the best of them grow — and ultimately make the leap to the main market, as the parent company of homegrown burger chain Burgerizzr did last week.

THE BIG STORY ABROAD-

Charlie Munger, right-hand man of Warren Buffett, dies aged 99: Bn’aire and market sage Charles Munger, who was second-in-command to business magnate Warren Buffett for almost 60 years, has died aged 99. Under their management of Berkshire Hathaway, the previously-failing textile company averaged an annual gain of 20% between 1965 and 2022 — roughly twice the pace of the S&P 500 Index — to become the multi-bn USD conglomerate that it is today.

The story has plenty of ink in the int’l business press this morning: (Reuters | AssociatedPress | Wall Street Journal | CNBC | Bloomberg | Financial Times)

Check out Munger’s final interview, recorded with CNBC’s Becky Quick just a couple of weeks ago.

THE LATEST ON GAZA-

Another batch of Palestinian and Israeli prisoners have been release as the truce enters the first of two extra days.

Cabinet called again yesterday for a “complete ceasefire” and the establishment of an independent Palestinian state with Jerusalem as its capital, Arab News reports.

AND- Joe Biden’s administration seems more divided than ever over his full-throated support for Israel’s war in Gaza, with the New York Times that “supporters” and “even some staff members” in the White House feel “ deep anger over his solidarity with Israel.” The Financial Times, meanwhile, reports that the CIA’s associate deputy director for analysis — one of the agency’s top officials on the “think-and-make-sense-of-it” side of the house — posted pro-Palestinian images on her Facebook page.

FINALLY- Rescuers have saved 41 construction workers trapped in a tunnel in Uttarakhand state — a beautiful end to a drama that has kept much of India glued to television screens since the men were trapped by a landslide on 12 November. Catch coverage in the Wall Street Journal if only for the smiles as the come out.

FAST FACT- The Northern Border Region is home to more than 25% of our mineral wealth— and could be worth north of SAR 1.2 tn at current market prices. Vice Minister of Industry and Mineral Resources for Mining Affairs Khalid Al-Mudaifer provided the estimate, noting that the Kingdom has invested some SAR 120 bn in infrastructure in the region to open it to the mining industry.

DATA POINT- Our trade balance is at a five-month-high surplus: While the value of our exports remained unchanged at SAR 104 bn in September, imports fell to SAR 60 bn, down from SAR 70 bn in August, leading to a 29% m-o-m increase in surplus to SAR 44 bn, according to General Authority for Statistics figures (pdf).

Oil cuts weigh heavily on exports — and the economy as a whole. The Kingdom’s exports fell 17.1% y-o-y to SAR 103.8 bn in September 2023, down from SAR 125.3 bn in the same month last year. Oil exports declined 17.1% y-o-y to SAR 83.1 bn in September, while non-oil exports shrank 17.2% y-o-y to SAR 20.7 bn. The economy contracted 4.5% y-o-y in 3Q on the back of lower oil activity even as the private sector boom continued.

CIRCLE YOUR CALENDAR-

The Red Sea Film Festival kicks off in Jeddah tomorrow (Thursday)and runs through Saturday, 9 December.

Also tomorrow: This year’s Noor Riyadh festival begins, continuing until 16 December with an expanded roster of new and returning artists. More than 120 pieces from over 100 artists drawn from 35 countries around the world are set to participate.

The International Conference on Air Services Negotiations (ICAN) 2023 will take place from 3-7 Decemberat the Hilton Riyadh Hotel and Residences. The General Authority for Civil Aviation is hosting the event as well as a networking platform for policy makers, regulators, air operators, service providers and other stakeholders.

The King Abdulaziz Falconry Festivalwill run until Thursday, 14 December with the participation of elite falcon owners from all around the world.The competition currently holds the Guiness World Record for the biggest falconry competition in the world.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.