{"id":90487,"date":"2024-10-14T00:00:00","date_gmt":"2024-10-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/10\/14\/fdi-inflows-rise-in-2q-2024\/"},"modified":"2024-10-14T00:00:00","modified_gmt":"2024-10-14T00:00:00","slug":"fdi-inflows-rise-in-2q-2024","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/10\/14\/fdi-inflows-rise-in-2q-2024\/","title":{"rendered":"FDI inflows rise in 2Q 2024"},"content":{"rendered":"

Good morning, friends<\/strong>, and welcome to a busy Monday. We lead our news well this morning with the latest from the Global Logistics Forum, which saw a slew of agreements worth some SAR 17 bn signed on its first day.<\/p>\n

WEATHER<\/strong>- <\/strong>Riyadh <\/strong>is looking at a high of 38\u00b0C, and a low of 2\u00b0C today. Over in Madinah<\/strong>, the temperature will peak at 39\u00b0C, before dropping to 2\u00b0C. Meanwhile, Jeddah <\/strong>will see a high of 37\u00b0C, and a low of 28\u00b0C.<\/p>\n

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WATCH THIS SPACE-<\/p>\n

<\/a> #1- Construction on the USD 7 bn Landbridge megaproject is expected to kick off in early<\/strong> 2025<\/strong>, with the final cost and financing arrangements being ironed out, Meed<\/a> reports, citing a source it says is close to the project. The project, slated for completion in seven years, will connect the Kingdom\u2019s Red Sea coast to the Arabian Gulf and features six railway lines, and seven logistics centers.<\/p>\n

Background:<\/strong> The Saudi Railway Company awarded a consortium that includes US-based construction management firm Hill International, Italy-based consulting firm Italferr, and Spain-based engineering firm Sener the contract to manage the construction of the project back in December 2023<\/a>.<\/p>\n

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<\/a> #2- CAPITAL MARKETS-<\/strong> Nomu-listed Shatirah House Restaurant Co., the owner and operator of burger chain Burgerizzr<\/a>, received the green light from Tadawul to transition to the main market, according to a statement<\/a>. The company filed for the upgrade in November 2023<\/a>, but soon it decided to put it on hold<\/a> after failing to round off some regulatory requirements.<\/p>\n

It\u2019s been a long time coming:<\/strong> Burgerizzr arranged for Mohamed Al Ruwaigh, a founder and major shareholder, to divest last year a 0.84% stake to make certain the popular burger chain could meet the liquidity requirement<\/a> for an upgrade to the main market. <\/p>\n

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<\/a> #3- Delayed launch for Riyadh Metro?<\/strong> The Riyadh Metro is reportedly set to go live early next year, instead of this month, Aleqtisadiah<\/a> reports, citing sources it says are in the know. Maher Shira, director general of the Smart City Department for the Royal Commission of Riyadh, told the same outlet in February<\/a> that the USD 22.5 bn metro system was slated to start operations this year. Transport Minister Saleh Al Jasser had also confirmed to Al Arabiya in August<\/a> that the USD 22.5 bn metro is on track for a 2024 launch.<\/p>\n

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#5- The Gulf Cooperation Council (GCC) is set to kick off free trade talks with Japan next<\/strong> month<\/strong>, after the two parties agreed on terms of reference, Aleqtisadiah<\/a> reports, citing the GCC secretariat. Terms of reference have also been agreed with Malaysia, but talks are still pending the Malaysian government's approval to kick off.<\/p>\n

#6- <\/strong>AlBaik to tap into Pakistan<\/strong>: Homegrown food chain AlBaik signed an MoU with energy firm Gas & Oil Pakistan Limited (Go) to launch AlBaik restaurants in Pakistan, according to a LinkedIn post<\/a> from Go. This comes after Pakistani and Saudi businesses signed over USD 2 bn in agreements; read our coverage here<\/a>.<\/p>\n

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DATA POINTS-<\/p>\n

Saudi Arabia\u2019s <\/strong>FDI inflows went up 5.8% y-o-y at the end of 2Q 2024 to SAR 829.4 bn<\/strong>, Mubasher<\/a> reports, citing data from the Saudi Central Bank.<\/p>\n

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OIL WATCH-<\/p>\n

A look into <\/strong>BMI\u2019s crystal ball for how regional tensions<\/strong> could impact oil prices:<\/strong> BMI outlined three potential oil price scenarios depending on how rising regional tension between Israel and Iran plays out, ranging from USD 70-150 per barrel. <\/p>\n

In the baseline scenario (50% probability), prices are expected to hover between USD <\/strong>75-90<\/strong>, with occasional spikes above USD 90, assuming regional tensions between Israel and Iran escalate but later de-escalate through diplomatic efforts. <\/p>\n

A less volatile scenario (28% probability) projects prices dipping to USD 70-75 \/ bbl<\/strong>, with the conflict contained and demand weakening, posing challenges to Saudi efforts to balance its budget. <\/p>\n

In the worst-case scenario (22% probability), a full-scale war could push prices to USD 120-150 \/ bbl<\/strong>, boosting Saudi revenues but causing global inflation and suppressing demand.<\/p>\n

REMEMBER<\/strong>- <\/strong>The IMF's latest forecast from April projects Saudi Arabia's breakeven oil price for 2024 at USD 96.2 \/ bbl \u2014 roughly 19% higher than last year and well above the current Brent crude<\/a> of USD 79 \/ bbl.<\/p>\n

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SPORTS-<\/p>\n

Meet the first undisputed light heavyweight champion in over 20 years:<\/strong> Russian Artur Beterbiev edged out compatriot Dmitry Bivol by a points decision yesterday at Riyadh Season, unifying the WBA, WBC, and IBF belts for the first time since US champion Roy Jones Jr did it in 1999. However, Turki Alalshikh told The Stomping Ground he doesn\u2019t \u201cthink the the result is fair,\u201d saying that Bivol added two more rounds than he was given credit for and that there might be a rematch between the two boxers (watch, runtime: 0:25<\/a>). The story got ink from AP<\/a> | BBC<\/a> | Reuters<\/a>.<\/p>\n

Also from Riyadh Season: <\/strong>Skye Nicolson beat Raven Chapman, while Fabio Wardley warded off Frazer Clarke.<\/p>\n

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THE BIG STORY ABROAD- <\/p>\n

It\u2019s a quiet morning on global business front pages<\/strong>, but that should change as the week grinds on. <\/p>\n

Is Trump just horsing around about allowing the greenback to weaken?<\/strong> A top Trump economic advisor says The Donald is merely posturing about weakening the USD and turning away from global trade. Hedge fund manager Scott Bessent, who some pundits think could be the Republican\u2019s pick for Treasury Secretary, made the remarks in a conversation with the Financial Times<\/a>, telling the salmon-colored paper that Trump wants the greenback to \u201cremain the world\u2019s reserve currency\u201d and that he\u2019s using the threat of tariffs \u201cas a negotiating tactic.\u201d<\/p>\n

In security news: <\/strong>The US has sent Israel advanced anti-missile systems and 100 troops<\/a> to ru<\/p>\n

n them as tensions between Tel Aviv and Tehran continue to boil. In Asia, China has begun large military exercises around Taiwan \u2014 the war games come as observers spell out worries that disruptions to busy South China Seas shipping lanes could further snarl global shipping<\/a>. <\/p>\n

MORNING MUST READ- <\/strong>One of the world\u2019s top AI researchers thinks <\/strong>\u201cAI is as dumb as a<\/a><\/strong>cat\u201d<\/a><\/strong><\/strong> \u2014 that current models are \u201cfar from rivaling the intelligence of our pets, let alone us.\u201d Christopher Mims\u2019 sit-down with the Meta researcher offers a broad and reasonably balanced view on the state of the art (and hysteria) about artificial intelligence. <\/p>\n

SIGN OF THE TIMES- Global accounting giant EY is blaming a slump in private equity <\/strong>and M&A activity<\/strong> for its decision to delay \u201cstart dates<\/a> for new graduates hired for its elite strategy adviser Parthenon\u201d in the United States. <\/p>\n

HAPPENING THIS WEEK internationally: <\/strong><\/p>\n