{"id":82575,"date":"2023-12-06T00:00:00","date_gmt":"2023-12-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2023\/12\/06\/vladimir-putin-lands-in-riyadh-today\/"},"modified":"2023-12-06T00:00:00","modified_gmt":"2023-12-06T00:00:00","slug":"vladimir-putin-lands-in-riyadh-today","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2023\/12\/06\/vladimir-putin-lands-in-riyadh-today\/","title":{"rendered":"Vladimir Putin lands in Riyadh today"},"content":{"rendered":"

Good morning, friends. It\u2019s another packed issue this morning<\/strong>, so we\u2019re going to once more jump straight in with no preamble.<\/p>\n

<\/a> UP FIRST- Russian President Vladimir Putin will <\/strong>land in Riyadh today<\/a><\/strong> and visit the UAE on a rare, two-country whistle-stop tour of the region. Expect trade and investment, cooperation on oil production, Israel\u2019s war in Gaza, and the conflict in Ukraine to be on the agenda when Putin sits down with Crown Prince and Prime Minister Mohammed bin Salman. <\/p>\n

Sound smart: <\/strong>Putin is the latest world leader to skip COP28 in Dubai. In the UAE, he\u2019ll be heading instead to Abu Dhabi to meet President Sheikh Mohamed bin Zayed Al Nahyan. <\/p>\n

Remember: <\/strong>Saudi and Russia recently coordinated a 2.2 mn barrels-per-day production cut at OPEC+, as we discussed earlier this week.<\/p>\n

Putin is also welcoming Iranian President Ebrahim Raisi to Moscow. <\/strong>The two are scheduled to meet tomorrow as Russia continues to push on regional diplomacy. <\/p>\n

The visit to KSA is getting plenty of ink <\/strong>in the global press: Wall Street Journal<\/a> | Financial<\/a>Times<\/a> | New York Time<\/a> | Bloomberg<\/a>.<\/p>\n

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<\/a> ALSO- The film industry got a <\/strong>huge shout-out in Variety<\/a><\/strong>\u2014 arguably the most influential business publication covering Hollywood \u2014 as US Ambassador Michael Ratney talked up the \u201cextraordinary explosion\u201d in culture and film<\/strong> in the Kingdom. <\/p>\n

The ambassador said international producers can count on help from the embassy<\/strong> as they look to push into the industry.Ratney, who noted that \u201cextraordinary ambition\u201d as being a \u201cdefining characteristic of Saudi Arabia,\u201d<\/strong> was speaking at the Red Sea Film Festival in Jeddah, which continues through this weekend. <\/p>\n

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<\/a> SMART POLICY- The Kingdom is offering tax incentives to foreign companies that <\/strong>relocate their regional headquarters here<\/strong>, state-run news agency SPA<\/a> reported yesterday. The Investment Ministry said the tax incentives include a 30-year exemption from corporate income tax as well as withholding tax on each company\u2019s approved activities. The 30-year no-tax windows for the activities of the regional entity incorporated in KSA will open from the day the company\u2019s business license is issued. <\/p>\n

Remember: <\/strong>Companies face a 1 January 2024 deadline to move their regional HQ\u2019s to Saudi or run the risk of losing out on government contracts. The plan, a cornerstone of Prince Mohamed\u2019s drive to build a diversified, globally significant non-oil economy, has been in the works since February 2021. At least 200 foreign companies have so far established HQs here, according to Investment Minister Khaled Al-Falih.<\/p>\n

** You\u2019re reading Zero Issue #08 of EnterpriseAM KSA. <\/strong><\/p>\n

** Think of a zero issue as a \u201cbeta.\u201d<\/strong> This issue has not been published or distributed to a wide audience. The sponsor logos above are not correct because we\u2019re still developing the new Saudi template.<\/p>\n

** Did you receive this as a forward?<\/strong> Email editorial@enterprisemea.com and let us know if you\u2019d like to be added to our list of beta readers ahead of our launch.<\/p>\n

** Have a comment, criticism, or story tip? <\/strong>Hit up patrick@enterprisemea.com<\/a>. <\/p>\n

<\/a> EXPO WATCH- Riyadh Expo 2030 will be a boon to construction and infrastructure <\/strong>players <\/strong>(among others) in the Kingdom, with spending on infrastructure and other components of the event now estimated to be in the USD 92 bn<\/strong> range. That\u2019s according to remarks by Princess Haifa bin Mohammed Al Saud, the vice minister of tourism, who was speaking at the Saudi Green Initiative in Dubai. <\/p>\n

Spending highlights: <\/strong>Expect big earmarks designed to turn Riyadh into one of the world\u2019s most sustainable cities, Princess Haifa said, including the decarbonization of urban transport and the inauguration of the King Salman Park. <\/p>\n

Sound smart: <\/strong>King Salman Park will be the world\u2019s largest urban park when it opens. <\/p>\n

HAPPENING TODAY-<\/strong><\/p>\n

<\/a> #1- The Council of Ministers is set to approve the state budget <\/strong>for 2024 when it meets later today. The Finance Ministry\u2019s pre-budget statement back in September suggested we\u2019re looking at a modest fiscal deficit, with total spending set to come in at SAR 1.25 bn against revenues of SAE 1.17 bn. That sets up a deficit of just under 2% of GDP. <\/p>\n

What to watch for: <\/strong>Ministers are unlikely to pull back from significant spending on infrastructure \u2014 and will look at additional measures to encourage private-sector growth. We don\u2019t expect any cuts to outlays for services benefitting citizens and residents.<\/p>\n

#2- Institutional investors have until the close of business to place orders for shares in <\/strong>broadcaster MBC\u2019s blockbuster IPO<\/strong>, which got underway with a bang last Thursday as bankers took orders in the first hour sufficient to cover 100% of the offering. Advisors on the transaction said they expect to price the offering at SAR 23-25<\/a>per share (pdf)<\/a>, valuing the company at as much as SAR 8.1 bn, according to Enterprise calculations.Some 90% of the offering is earmarked for institutions.<\/strong><\/p>\n

Bankers will price the offering by 12 December<\/strong>, and individual investors can place between 14 and 18 December, according to the prospectus (pdf)<\/a>.<\/p>\n

#3- It\u2019s day seven of COP28 <\/strong>in Dubai. Discussions today will focus on the shift to sustainable transport, building green infrastructure and cities, and looking at ways to minimize waste in the production-consumption cycle.<\/p>\n

Want to go deeper on everything happening over there? <\/strong>Enterprise Climate has got your<\/a>back<\/a>.<\/p>\n

REMEMBER- KSA is playing an outsized role in Dubai <\/strong>even as top officials including the Crown Prince and energy ministers give COP28 a pass. As we reported yesterday, the Kingdom will not back western countries\u2019 call for a phase-down or phase-out of oil and gas. <\/p>\n

The Kingdom\u2019s position on the \u201cenergy transition\u201d is clear:<\/strong> It\u2019s not about the mix of fuels used, it\u2019s about reaching zero emissions \u2014 itself a key target of the Kingdom\u2019s economic policy, which sees us using proceeds from fossil fuels to build a diverse, green, globally competitive economy.<\/p>\n

#4- Lana Medical debuts on Nomu today: <\/strong>Qualified investors will start trading shares of pharma player Lana Medical<\/a> after it listed 720k shares \u2014 good for a 20% stake \u2014 on the parallel market Nomu, Tadawul<\/a> said. Shares will open at SAR 31 a piece<\/a>. Yaqeen Capital was financial advisor and underwriter for the IPO. <\/p>\n

#5- KSA\u2019s RSGT is set to be the first foreign firm to operate a port in Bangladesh today <\/strong>with a concession agreement<\/a> with the Chittagong Port Authority (CPA) to manage and operate the Patenga Container Terminal in Bangladesh.<\/p>\n

Making history:<\/strong> RSGT is the first foreign company to operate a port in Bangladesh as the South Asian country looks to attract investment and shore up its export base. The container terminal was completed last year and was initially set to be operated<\/a> by the CPA, but Bangladesh\u2019s government opted for a foreign operator instead under a PPP model.<\/p>\n

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PSA #1- You can no longer get a cold soda at the traffic light:<\/strong> The Municipal, Rural Affairs and Housing Ministry has banned the installation of vending machines alongside the main roads\u2019 traffic lights, to avoid visual distortions, Okaz<\/a> reported yesterday. Also banned: The sale of energy drinks and tobacco products<\/strong> in self-serve machines. <\/p>\n

So where can you find a vending machine? <\/strong>Only in public facilities and parks, event sites, service centers, commercial streets, government facilities, and malls, among others.<\/p>\n

PSA #2- It\u2019s set to be another beautiful late-fall day in the Kingdom. <\/strong>Expect a daytime high of 24\u00b0C in Riyadh<\/strong>, with a bit more heat and humidity in Dammam<\/strong> (26\u00b0C) and Jeddah<\/strong> (32\u00b0C). <\/p>\n

THE BIG STORIES-<\/strong><\/p>\n

HERE AT HOME- The non-oil private sector continued to grow at a red-hot pace in <\/strong>November<\/strong> despite rising price pressures. <\/p>\n

PLUS- Crown Prince and Prime Minister Mohamed bin Salman landed in Qatar yesterday <\/strong>for the Gulf Cooperation Council summit<\/strong>, which Turkish President Recep Tayyip Erdogan attended at the invitation of the GCC. <\/p>\n

^^ We have the rundown on both stories in this morning\u2019s news well, below. <\/p>\n

ABROAD- No single story has captured the interest of the global business press:<\/strong><\/p>\n