Good morning, ladies and gentlemen. We have a relatively quiet news day at home with which to close out the week, as regional developments lead the news cycle.

HAPPENING TODAY-

#1- The two-day retail subscription window for Fourth Milling Company’s (MC4) IPO of a 30%stake closes today. Retail investors were allocated 20% of the Tadawul offering. The final allocation of shares will take place next Sunday, 6 October and the surplus will be refunded on Wednesday, 9 October.

Looking for growth: MC4 plans to add another mill to its Al Kharj facility once it secures the necessary approvals, CEO Khalid Al Maktary told Gulf News, adding that the company is mulling potential green field projects.

#2- The Sirha Arabia Food Trade Exhibition wraps up today at Riyadh Front Expo. The event showcases 300 exhibitors from the food products and equipment, bakery, pastry, and coffee industries. Sirha Arabia will also be hosting selection contests for the Bocuse d’Or and the Pastry World Cup, which start in 2025.

#3- Intersec Saudi Arabia also wraps today: The event brought together experts in the security, safety and fire protection industries to address the role of AI and VR in the sector.

#4- It’s the last day of the Global Cybersecurity Forum 2024. Held at the Ritz-Carlton Hotel in Riyadh, the forum gathers international leaders from over 120 countries to discuss cybersecurity challenges and cooperation. Running alongside the event is the Child Protection in Cyberspace Global Summit, focused on efforts to tackle online threats to children.

WEATHER- Riyadh is looking at a daytime high of 40°C and a nighttime low of 28°C today. Over in Madinah, the temperature will peak at 39°C before dropping to 29°C. Meanwhile, Jeddah will see a high of 38°C and a low of 28°C.

PSAs-

#1- Zatca to waive fines for taxpayers on certain violations: The Zakat, Tax and Customs Authority (Zatca) launched the Cancellation of Fines and Exemption of Financial Penalties Initiative (pdf) to waive fines for some of the taxpayers’ violations, including late registration, payment, filing of returns, and VAT corrections, among others, Zatca said in a statement. To qualify for the initiative, which runs until the end of the year, taxpayers must be registered, submit any overdue returns, and settle all associated principal tax debts.

NOT INCLUDED- Tax evasion penalties will not be covered in the initiative, Zatca said.

#2- The Justice Ministry will now be responsible for issuing legal rulings in domestic labor disputes as of today, while the Human Resources and Social Development Ministry will only be responsible for settling disputes amicably through mediation, the Human Resources Ministry said in a statement. Individuals filing a lawsuit related to domestic labor disputes will still have to submit their claim through the Human Resources and Social Development Ministry’s website, which will refer the case to the Justice Ministry if the conflict is not settled amicably.

WATCH THIS SPACE-

#1- Saudi is raising the bar on its RHQ program: The Investment Ministry is raising its target for the number of international firms that move their regional headquarters to Saudi after surpassing the program’s 2030 target, Investment Minister Khalid Al Falih told Aleqtisadiah. The minister did not specify the new target.

By the numbers: Some 517 international companies were issued licenses to establish regional headquarters in the Kingdom by 1H 2024, according to the Finance Ministry’s 2025 pre-budget statement.

#2- The General Authority for Competition is cracking down on collusion in government projects, imposing penalties totaling SAR 7.1 mn against 14 establishments in the contracting sector for violating the competition law, it said in a news release.

DATA POINTS-

#1- The number of foreign tourists visiting the country for entertainment and holiday purposes hit 4.2 mn in 7M 2024, up 25% y-o-y and 656% when compared to the same period in 2019, state news agency SPA reports, citing Tourism Ministry figures.

#2- Consumer spending via point-of-sale (PoS) transactions in the Kingdom increased 11.9% w-o-w for the week ending 28 September at SAR 13.4 bn, according to the Saudi Central Bank (Sama)’s report (pdf). Meanwhile, the number of weekly transactions was up 5.3% at 207.7k.

The breakdown: Food and beverages saw the highest spending during the week, rising 28% w-o-w to SAR 2.1 bn, followed by restaurants and cafes at SAR 2.0 bn, up 12.1%. Education recorded the steepest weekly decline in number of transactions, falling 18.3% w-o-w. Meanwhile, Riyadh had the highest value of PoS transactions at SAR 4.5 bn, followed by Jeddah at SAR 1.8 bn.

OIL WATCH-

Opec+ keeps output policy unchanged, says December phaseout hinges on compliance: Opec+ has opted to stay the course on its planned oil production target, including plans to phase out supply cuts by December, putting it on course for a 180k barrels per day (bbl / d) hike by the end of the year, it said in a statement following a meeting yesterday. The oil cartel is also keeping a sharp eye on the compliance and compensatory plans of Iraq, Kazakhstan and Russia, who have been under scrutiny for producing beyond their quotas. The trio pledged 123k bbl / d of compensation cuts beginning in September and continuing into later months to make up for overproduction.

And if they didn’t? Further lack of compliance could push Saudi Arabia and other OPEC+ members to boost production at a quicker rate, Reuters said. “If they fail to comply, we can envision a swifter sunsetting of the voluntary cuts,” the newswire said citing RBC Capital’s Helima Croft.

Who said anything about USD 50 / bbl? The oil cartel’s secretariat rebutted a Wall StreetJournal article published yesterday claiming that Oil Minister Prince Abdulaziz bin Salman warned that lack of compliance by some OPEC+ members could push oil below USD 50 / bbl. OPEC denies that the call took place.

The next checkpoint: The group is scheduled to reconvene on Sunday, 1 December to decide whether to hold steady or adjust according to market conditions.

SPORTS-

Al Hilal thrashed Iraq’s Al Shorta 5-0 in the AFC Champions League Elite on Tuesday, maintaining the top spot in Group B on goal difference. This is how other Saudi Pro League (SPL) clubs fared on matchday 2 of 8 of the continental competition:

• Al Nasr vs. Al Rayyan: 2-1
• Al Wasl vs. Al Ahli: 0-2

Up next:

• Al Ain vs. Al Hilal (21 October — 7pm)
• Al Rayyan vs. Al Ahli (21 October — 9pm)
• Esteghlal vs. Al Nassr (22 October — 7pm)

Tonight’s fixtures for SPL matchday 6 of 34, which will be capped off with a Jeddah derby between Al Ahli and Al Hilal on Saturday:

• Al Ettifaq vs. Al Raed (6pm)
• Al Wehda vs. Al Feiha (9pm)
• Al Akhdoud vs. Al Ittihad (9pm)

And tomorrow’s:

• Al Khaleej vs. Al Kholoud (6pm)
• Al Riyadh vs. Al Qadisiyah (6:15pm)
• Damac vs. Al Shabab (9pm)

Derby Day:

• Al Nassr vs. Al Orobah (6:15pm)
• Al Taawoun vs. Al Faleh (6:25pm)
• Al Ahli vs. Al Hilal (9pm)

PIF Governor Yasir Al Rumayyan and PGA Tour Commissioner Jay Monahan are scheduled to tee off at the Dunhill Links Championship in Scotland this week, the Associated Press reports. The meeting follows discussions between the pair in New York last month on a potential agreement that will see restrictions on player crossovers between the PGA and PIF-backed LIV lifted, with the fund also nabbing a minority stake in PGA Tour Enterprises. Al Rumayyan will be paired with Liv Golf player Dean Burmester, while Monahan will play alongside Billy Horschel.

IN CONTEXT- The PGA Tour and PIF have been mired in merger talks since the pair announced a framework agreement in June of last year. Despite Moynahan expressing optimism at the pace of discussion earlier this June, negotiations would later hit a snag on reintegrating players who defected from PGA to LIV and whether or not they will get to keep the massive earnings that they have racked up on the PIF-backed tour. The resignation of pro-transaction PGA board member Jimmy Dunne in May after being “shut out” from negotiations and the PGA’s windfall USD 3 bn gain as part of an investment by US sporting bn’aires earlier this year further diminished chances that an agreement would see the light.

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THE BIG STORY ABROAD-

It’s a mixed picture on the front pages of the foreign press today, with updates on Israel’s invasion of and attacks on Lebanon, speculation over Israel’s potential methods of retaliation for Iran’s attacks earlier this week, and OpenAI’s latest funding round grabbing headlines.

#1- Israel bombed central Beirut for the second time this week, killing at least six in an attack on a medical center in the heart of the city, Reuters reports. Israel missiles also continued to target southern suburbs of the city. Israel’s ground offensive in Lebanon has also killed eight Israeli soldiers in the first day after its launch, the Washington Post reports.

The US and other G7 partners are working on limiting Israel’s response to Iran’s attacks earlier this week and deterring it from attacking the latter’s nuclear facilities, which some officials have called for, the Financial Times reports. US President Joe Biden said he would not support such an attack, signaling plans to sit down with Israeli Prime Minister Benjamin Netanyahu to advise on Israel’s response, and to escalate sanctions on Iran, Bloomberg reports separately.

The escalation of attacks across the region has forced airlines to take longer paths over Egyptian and Saudi airspace to avoid shuttered airspace, Bloomberg said, citing flight tracking data on FlightRadar24.

This increases flight times and fuel costs, upsetting airline schedules that rely on precise aircraft positioning and further compounding challenges faced by airlines in Europe, the US, and Canada that had to limit trips to China due to a Russian airspace ban.

Saudi ministers speak out against rising conflict: Saudi Foreign Minister Prince Faisal bin Farhan called for an immediate ceasefire in Gaza and advancing a two-state solution in an op-ed published in the Financial Times. The minister reiterates that Saudi Arabia will not move forward on establishing diplomatic ties with Israel without the establishment of a Palestinian state, and calls on the international community to hold Israel accountable for its conduct in Gaza.

Meanwhile, Economy Minister Faisal Ibrahim urged “de-escalation” and said Saudi hopes “that wisdom will prevail, de-escalation will happen, dialogue will come into place and more collaboration will be seen globally, but also regionally for us to address these challenges,” Reuters said.

#2- OpenAI’s secured USD 6.6 bn in fresh funding, giving the company a whopping valuation of USD 157 bn, with backing from Microsoft, Nvidia, and Josh Kushner’s VC firm Thrive Capital, which led the round, Bloomberg reports. Abu Dhabi tech investor MGX also participated in the funding round — we have more in the news well, below. Notably absent from the funding round is Apple, who was said to potentially invest in the firm earlier.

The funding will be used to “double down” on AI research and increase computing capacity, the statement said. The startup also reportedly asked its investors for exclusive arrangements to stop them from investing in other rival AI startups, the Financial Times reports, citing multiple sources.

CIRCLE YOUR CALENDAR-

The 2024 Saudi Games are coming back tomorrow at Riyadh’s Boulevard City, with musical performances from The Saudi Arwa and Abdulwahab kicking off the annual sporting competition, according to a post on X. The event will see upwards of 9k male and female athletes compete in 52 sports. The two-week event runs from until 17 October. You can grab tickets here.

The three-day 6 Kings Slam event at Riyadh’s Venue kicks off on Wednesday, 16 October, featuring all-star players competing for the largest purse in tennis history. The matches will see face offs between tennis champs Novak Djokovic, Rafael Nadal, Jannik Sinner, Carlos Alcaraz, Daniil Medvedev, and Holger Rune (watch, runtime: 5:15). The final and third-place match will be held on Saturday, 19 October. Book your tickets here.

The Professional Fighters League’s (PFL) Battle of the Giants is coming to Riyadh on Saturday, 19 October. Headlining the card, MMA superstar Francis Ngannou will face PFL heavyweight champion Renan Ferreira for the title of inaugural PFL Super Champion. Meanwhile, women’s featherweight champion Cris Cyborg will square off against Larissa Pachecho for the World Title Fight in the co-main event. Expect fireworks with additional matchups featuring Johnny Eblen vs. Fabian Edwards and A.J. McKee vs. Paul Hughes.

The two-dayMultilateral Industrial Policy Forum will kick off in Riyadh on Wednesday, 23 October. The forum will address global industrial challenges, focusing on topics like industrial policy, clean energy, and advanced manufacturing tech. The forum is organized by The Industry and Mineral Resources Ministry in partnership with UNIDO. The Kingdom will also host the UNIDO General Conference in 2025.

The four-day Biban24 Forum organized by Monsha’at will run from Tuesday, 5 November to Saturday 9 November in Riyadh. It will feature over 250 speakers and 1.4k exhibitors, focusing on supporting the growth and competitiveness of SMEs, as well as promoting entrepreneurship in the Kingdom. Biban24 will also host the Entrepreneurship World Cup finals, offer 420 workshops, and focus on key sectors like e-commerce and financing.

The Saudi General Aviation Airshow Sand & Fun 2024 will run from Tuesday, 19 November to Saturday 23 at Al Thumamah Airport, Riyadh. Organized by the Saudi Aviation Club, the event will feature 100+ exhibitors and 15 airshow teams, with over 100k visitors expected. Sand & Fun is a key platform for exploring aviation tech, fostering partnerships, and driving industry growth.

The four-day Saudi Film Forum 2024 will kick off Wednesday, 9 October in Riyadh, featuring areas for agreement signings, consulting, studio simulation, film talks, cinematic arts, and a little filmmaker section for children.