{"id":92288,"date":"2024-12-08T00:00:00","date_gmt":"2024-12-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/12\/08\/uk-prime-minister-lands-in-the-gcc-today\/"},"modified":"2024-12-08T00:00:00","modified_gmt":"2024-12-08T00:00:00","slug":"uk-prime-minister-lands-in-the-gcc-today","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/12\/08\/uk-prime-minister-lands-in-the-gcc-today\/","title":{"rendered":"UK Prime Minister lands in the GCC today"},"content":{"rendered":"

Good morning, wonderful pe<\/strong>ople<\/strong>, and welcome to a new week. It\u2019s a relatively calm start to one of the last work weeks of the year. <\/p>\n

<\/a> UK Prime Minister Keir Starmer lands in the region today <\/strong>for a GCC trip that will start in the UAE \u2014 where he will meet with Sheikh Mohammed bin Zayed Al Nahyan \u2014 then take him to the Kingdom where he is scheduled to meet with Crown Prince Mohammed bin Salman, Bloomberg<\/a> reports. The trip marks Starmer\u2019s first to the Gulf since taking office. <\/p>\n

On the agenda: <\/strong>Starmer\u2019s time in the Gulf will see him push for new freetrade agreements and discuss the regional security at large, with a focus on the need to secure a ceasefire in Gaza. <\/p>\n

ALSO- The government rolled over a USD 3 bn deposit at Pakistan\u2019s central <\/strong>bank for one <\/strong>more year<\/strong>, after it was set to mature on 5 December, the State Bank of Pakistan said (pdf)<\/a> on Thursday. The deposit was originally made in 2021, and it was rolled over in 2022 and 2023<\/a>.Pakistan received last year USD 2 bn in financial assistance<\/a> from the Kingdom, which has been among key backers of the crisis-hit country, which is struggling from depleted foreign reserves.<\/p>\n

HAPPENING TODAY-<\/p>\n

#1- <\/strong>Monsha\u2019at Import<\/strong> and Export Week kicks off today<\/strong> in Riyadh, Madinah, Jeddah, and <\/strong>Al Khobar<\/strong>, according to a statement<\/a>. The event, which runs until Thursday, will see key players from the public and private sectors come together to support SMEs in the Kingdom.<\/p>\n

\n

#2- How much did the economy grow last quarter? <\/strong>The GDP growth rate for 3Q 2024 is set to be released today by the General Authority for Statistics (Gastat), while the industrial production index for October will be out on Tuesday.<\/p>\n

ICYMI- <\/strong>The World Bank downgraded its forecast for the Saudi economy to 1.1%<\/a>for this year<\/a>, compared to the 2.5% it had forecast in May. Meanwhile, the Finance Ministry is targeting 0.8% GDP growth for 2024, and 4.6% for next year.<\/p>\n

\n

WEATHER- <\/strong> Riyadh will see cloudy skies today, with temperatures reaching a high of 27\u00b0C and a low of 16\u00b0C. Makkah will see similar cloud cover, with a high of 34\u00b0C and a low of 21\u00b0C. Dammam will have a high of 28\u00b0C and a low of 14\u00b0C.<\/p>\n

PSAs- <\/p>\n

<\/a> #1- <\/strong>Businesses subject to withholding tax must file their Novemb<\/strong>er tax returns by <\/strong>Tuesday <\/strong>via The Saudi Zakat, Tax and Customs Authority\u2019s (Zatca) website, according to a statement<\/a>. Missing the deadline could result in penalties of 1% of the unpaid tax for every 30 days of delay.<\/p>\n

#2- More flights between KSA and Pakistan: <\/strong>Pakistan\u2019s budget airline, Fly Jinnah, expanded its flight frequencies to three cities in the Kingdom \u2014 Dammam, Riyadh, and Jeddah \u2014 Trade Arabia<\/a> reports. The airline will operate daily flights between Lahore to Jeddah, three weekly flights to Riyadh, and three to Dammam. <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- <\/strong>Nomu<\/strong>-listed <\/strong>Obeikan Glass Company<\/a><\/strong> filed an official request to the bourse to <\/strong>make the <\/strong>leap to the main market<\/strong>, after securing board approval for the move, it said in a filing to Tadawul<\/a>. <\/p>\n

Remember-<\/strong> Tadawul issuers must meet a minimum market capitalization of SAR 300 mn, up from SAR 10 mn for Nomu companies. In addition, Tadawul issuers must float at least 30% of issued shares, compared to only 20% or SAR 30 mn worth of shares \u2014 whichever is lower \u2014 for Nomu companies.<\/p>\n

\n

#2- Several Chinese railway firms are vying to construct the Riyadh Metro's <\/strong>seventh line<\/strong>, a 65 km route connecting Qiddiya City, King Salman Park, Diriyah Gate, New Murabba, and King Khaled International Airport, China's ambassador to the Kingdom Chang Hua told Aleqtisadiah<\/a>. <\/p>\n

Remember-<\/strong> The Riyadh Metro kicked off operations last week<\/a>, spanning 176 km with 84 stations across six lines. <\/p>\n

\n

#3-<\/strong> Eldridge Industries is looking into setting up shop in the Saudi market<\/strong>, which would mark its second regional office after the inauguration of its Abu Dhabi office, Chairman and CEO of the US-based investor Todd Boehly told Bloomberg<\/a>. Boehly pointed at Saudi Arabia\u2019s promising sports, entertainment, infrastructure, and media sectors, adding that there\u2019s \u201cso much infrastructure to build\u201d here.<\/p>\n

\n

#4- <\/strong>Saudi <\/strong>Arabia is gearing up to launch a comprehensive volunteer strategy in 2025 <\/strong>which \u201caims to empower 500k volunteers\u201d and \u201cpromote environmental volunteerism,\u201d Environment Minister Abdulrahman AlFadley said, state news agency SPA<\/a> reports. More than 133k volunteers worked under the ministry\u2019s initiatives this year, bringing in a return of SAR 65 mn, the minister said.<\/p>\n

#5-<\/strong> Saudi Arabia is offering 50k sqm of land for exploration of minerals in <\/strong>2025<\/strong>, Argaam<\/a> reported quoting Deputy Industry and Mineral Resources Minister Khalid Al Mudaifer.<\/p>\n

REMEMBER<\/strong>- Saudi Arabia has big mining plans: <\/strong>The ministry launched a fresh incentive package worth SAR 685 mn earlier this year as part of efforts to expand the sector and tap reserves of gold, phosphate and others. The goal is to attract local and foreign mining investors as part of a push to become a global hub for metals critical for the energy transition and become an EV manufacturing hub. The nation\u2019s untapped mineral resources are now worth as much as USD 2.5 tn, or 90% more than the last forecast in 2016.<\/p>\n

DATA POINTS-<\/p>\n

The Kingdom saw a 121% y-o-y increase in issued tour guide licenses in 9M 2024<\/strong>, which exceeded 2.5k, state news agency SPA<\/a> reports. Meanwhile, tourism activities licenses issued during the same period rose 49% y-o-y to 2.6k.<\/p>\n

OIL WATCH-<\/p>\n

<\/a> Opec+ extends production cuts yet again: <\/strong>Opec+ pushed back the start date of production increases by three months to April 2025, with the overall production increases slated to be gradually implemented until the end of 2026, according to a statement<\/a> from the oil cartel. The decision came on the back of weak demand and rising non-Opec production levels. The story got ink in <\/strong>Reuters<\/a>, Bloomberg<\/a>, AP<\/a>, and FT<\/a>. <\/p>\n

Remember-<\/strong> Opec+ had initially planned to start phasing out production cuts in October, but later pushed the plans back<\/a> as oil prices fell.<\/p>\n

The breakdown: <\/strong>The current cuts total 5.85 mn barrels per day (bbl \/ d), or 5.7% of global demand, divided into three tranches \u2014 2 mn bbl \/ d by all members, 1.65 mn bbl \/ d in the first stage of voluntary cuts by eight members (including Saudi Arabia), and another 2.2 mn bbl \/ d in the second phase of the voluntary cuts. On Thursday, Opec+ extended the first two tranches by a year until the end of 2026 and prolonged the 2.2 mn bbl \/ d tranche until September 2026.<\/p>\n

The rationale: <\/strong>Energy Minister Abdulaziz bin Salman told CNBC<\/a> it would be unfeasible to add 2.5 mn bbl \/ d in one year, stressing Opec\u2019s need to balance supply-demand fundamentals with market sentiment.<\/p>\n

Oil price forecasts are a mixed bag for 2025:<\/strong> Morgan Stanley upgraded its Brent crude price forecast to USD 70 a barrel in 3Q and 4Q 2025, up from USD 68 and USD 66, respectively. ING penciled in USD 71 a barrel for the whole year, up from USD 69, Bloomberg<\/a> reports. Meanwhile, HSBC maintained its forecast for the year at USD 70 a barrel, and Bank of America expects Brent to average USD 65 a barrel, according to Reuters<\/a>.<\/p>\n

SPORTS-<\/p>\n

#1- The scoreboard for Saudi Pro League matchday 11 of 34:<\/strong><\/p>\n