{"id":86411,"date":"2024-05-22T00:00:00","date_gmt":"2024-05-22T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/05\/22\/washington-signals-a-security-and-nuclear-pact-with-riyadh-is-nearly-over-the-line\/"},"modified":"2024-05-22T00:00:00","modified_gmt":"2024-05-22T00:00:00","slug":"washington-signals-a-security-and-nuclear-pact-with-riyadh-is-nearly-over-the-line","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/05\/22\/washington-signals-a-security-and-nuclear-pact-with-riyadh-is-nearly-over-the-line\/","title":{"rendered":"Washington signals a security and nuclear pact with Riyadh is nearly over the line"},"content":{"rendered":"

Good morning, wonderful people. <\/strong>It\u2019s another very busy news day with news from aviation, sports, capital markets, and more than a little bit of foreign policy. <\/p>\n

UP FIRST- US officials have started talking up prospects of a security pact <\/strong>with Saudi <\/strong>Arabia \u2014 and are using the occasion to publicly put pressure on Israel. <\/strong>Secretary of State Antony Blinken told the powerful Senate Foreign Relations Committee yesterday that \u201cthe Saudis have been clear that [normalization] would require calm in Gaza and it would require a credible pathway to a Palestinian state. It may well be that in this moment Israel isn\u2019t able or willing to proceed down that pathway.\u201d<\/p>\n

A senior US official has since given briefings to major global news outlets talking up <\/strong>prospects for a US-Saudi pact<\/strong> that would cover both defense<\/strong> and help developing a domestic nuclear energy<\/strong> industry. (We also expect to see an agreement on artificial intelligence<\/strong> and advanced technologies, though no report overnight has an update on that front.)<\/p>\n

A bilateral agreement between Riyadh and Washington is \u201cmore or less complete\u201d <\/strong>and \u201cpretty much there,\u201d the official told reporters.<\/p>\n

For the record: \u201cWe now have a near final set of arrangements<\/strong>, which would be the bilateral elements of this deal, and we really believe the Saudi deal is pretty much there. But there are elements of it, including a credible pathway for the Palestinians and also some other elements, that would still have to be completed. The [war in Gaza] needs to recede to open up space for this,\u201d the official said. Israel continues to pound Palestinian neighborhoods in both north and south Gaza this morning. <\/strong><\/p>\n

BACKGROUND- The pacts have been in the works for some time now<\/strong>, but got another big push a few days back after White House national security advisor Jake Sullivan touched down in Riyadh. <\/p>\n

Read more: <\/strong>The story is getting prominent play from the Financial Times<\/a> | Wall Street Journal<\/a> | Reuters<\/a>. <\/p>\n

THE BIG STORY AT HOME-<\/p>\n

<\/a> #1- Crown Prince and Prime Minister Mohammed bin Salman reassured the public <\/strong>about<\/strong> King <\/strong>Salman\u2019s health during yesterday\u2019s cabinet meeting<\/strong>, state news agency SPA<\/a> reports. The Crown Prince chaired the meeting after postponing a four-day visit to Japan due to the King\u2019s health, as the King receives treatment<\/a> at Jeddah\u2019s Al Salam Royal Palace for inflammation in the lungs. The diagnosis comes after the King was admitted to the palace\u2019s royal clinics for a medical checkup due to \u201chigh temperature and joint pain.\u201d<\/p>\n

#2- The Tadawul All Share Index is nearly 6% behind the MSCI Emerging Markets gauge <\/strong>this year<\/strong> \u2014 Saudi stocks are lagging behind other EM counterparts for the first time since the pandemic. (Bloomberg<\/a>) <\/p>\n

HAPPENING TODAY-<\/p>\n

<\/a> #1- There are two IPOs whose retail subscription periods wrap up today:<\/strong><\/p>\n

Fakeeh Care:<\/strong> The institutional tranche of healthcare provider Fakeeh Care\u2019s 21.5% offering on the main market drew in strong demand, closing with a 119x oversubscription rate<\/a>. Fakeeh has priced the transaction at the top of the range at SAR 57.50 per share, which would give the business a market cap of SAR 13.3 bn at the start of trading. The pricing means Fakeeh is set to raise SAR 2.9 bn from the offering.<\/p>\n

Miahona:<\/strong> Water treatment outfit Miahona priced its IPO at the top end of its indicative price range at SAR 11.50 per share, valuing the IPO at SAR 555.5 mn. The institutional component of the offering attracted strong demand<\/a> from investors. Vision Invest, the sole owner of Miahona, will offload a 30% stake<\/a> on the main market Tadawul in a secondary share sale. <\/p>\n

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#2- It\u2019s the second and penultimate day of the Airports Council International annual conference <\/strong>\u2014 <\/strong>better known as WAGA 2024.<\/strong> The conference kicked off at the Hilton Riyadh Hotel yesterday, hosting a meeting for the ACI Advisory Board, as well as a networking meeting, exhibition, and reception. <\/p>\n

What to expect today:<\/strong> Riyadh Airports CEO Ayman Aboabah<\/strong>, General Authority for Civil Aviation (Gaca) President Abdulaziz Al Duailej<\/strong>, and International Civil Aviation Organization President Salvatore Sciacchitano <\/strong>will set the tone for today\u2019s sessions with opening remarks. <\/p>\n

The talking points: <\/strong>The day will include discussions of airport competitiveness, infrastructure, airline strategies for network expansion and partnerships, and the economic impact on regional growth and tourism, as well as the role of technology and innovation in enhancing passenger experiences. Panels will also examine the changes and economic impacts of air transport liberalization, with discussions on market reforms, regulatory shifts, economic outcomes, and geopolitical effects on airline operations and trade. <\/p>\n

Panelists to look out for: <\/strong><\/p>\n