AGP Executive Report

Startup & Tech Ecosystem: KPMG opened applications for its Global Tech Innovator 2026, a no-fee Saudi startup pitch programme with mentoring, investor access and a global final; submissions close July 31. Consumer Spending & Payments: SAMA data shows Saudi POS transaction value rose 1.9% to $3.36bn (SR12.60bn) in the week to June 27, led by food and beverages, even as transaction counts slipped 1.1%. Business Momentum: Riyad Bank PMI lifted to 53.3 in June, the highest in four months, as domestic demand and new orders improved, while exports weakened amid logistics and foreign competition. Real Estate & Education: Alandalus will buy a prime Riyadh plot to build an 11,000 sq m dual-curriculum educational complex for 2,000 students, with a 25-year lease deal worth SR157m net rental value. Municipal Licensing: Saudi exempts several activities from the 24-hour operating permit fee, including fuel dispensing outside urban areas, hotels, pharmacies and education-related services. Labour Dispute: A Jeddah labour court ordered an Arab barber to pay SR40,866 for breaching a fixed-term contract after leaving without proper procedures. Real Estate Development: Sumou signed a development management deal for a 6,394-sq-m mixed-use Jeddah project, targeting sales above SAR700m. Sports & Innovation: Saudi students backed by Johnson Controls Arabia placed seventh at the MATE ROV World Championship 2026 in Canada, a Gulf first.

Saudi Economy & Markets: BofA’s Michael Hartnett flags a split in the second half: Q2 AI/US leaders are outperforming while “war/inflation laggards” include Saudi (-4%) and oil (-31%), with the Treasuries-to-gold trend hinting at peak inflationary de-globalization. Energy & Trade Security: With Gulf shipping still in focus, Saudi and coalition officials warn they will hit any Houthi attempt to target the Kingdom with “unprecedented” force, while Yemen rights groups accuse Saudi warplanes of obstructing an Iranian humanitarian flight into Sana’a. Water & Infrastructure: Acwa Power is the sole bidder for Bahrain’s Hidd independent water project, a desalination plant expected to start in 2028, underscoring continued Gulf water investment. Digital Services: Saudi’s Tawakkalna added 160 new services in June via 40 public and private partners, expanding access across sectors from health to housing and tourism. AI & Finance: Together AI raised $800m Series C at an $8.3b valuation, with Aramco Ventures among the lead investors, as Saudi-linked capital doubles down on AI infrastructure. Foreign Investment & Business: Banque Misr launched operations in Riyadh after SAMA approval, aiming to serve Egyptian firms in Saudi and Saudi investors in Egypt. Aviation Watch: Saudia defended its sale of five Boeing 777s reportedly destined for Iran, saying it followed commercial and legal procedures through a non-Saudi counterparty. Regional Projects: Mabani Aljazeera plans to invest in Kenya’s Tatu City, backing Jabali Towers as the first tower reportedly sells beyond 80%.

Saudi-Iran Tensions: Saudi Arabia’s deputy foreign minister Waleed el Khereiji attended Ayatollah Ali Khamenei’s Tehran funeral, signaling cautious outreach amid a wider West Asia security rethink. Yemen Security: The Saudi-led coalition warned it will hit back with “unprecedented force” against any Houthi attempt to target Saudi airports or assets, after Houthi threats and an Iranian civilian flight to Sanaa. Saudi Property Rules: Saudi Arabia tightened non-Saudi property ownership rules with new executive regulations and a clearer framework for foreign buyers. Counterterror Designations: India’s home ministry designated 23 Pakistan-based individuals as terrorists under UAPA, including figures tied to LeT and JeM, with allegations spanning infiltration, recruitment and financing. Gold & Energy Watch: Gold posted its first weekly gain since May as Fed rate-hike expectations eased; Gulf oil exports rose in June as Hormuz flows improved. Saudi Business Abroad: IIG brought Saudi real estate investors to London’s House of Lords for a “Where Investment Meets Parliament” event. Saudi Tourism Tech: Saudi tourism is leaning into AI for personalized trip planning, with claims of higher booking conversion and smarter destination discovery. Sports Economy Link: Saudi Pro League Al-Ettifaq is named in a FIFA complaint over an alleged unauthorized approach for Trabzonspor’s Paul Onuachu. Real Estate Investment in Africa: Mabani Aljazeera Group bought a 49% stake in Jabali Towers at Tatu City, a mixed-use project near Nairobi.

Saudi-U.S. Rift: Reports say trust between Riyadh and Washington is at its lowest in years over Iran policy, regional security and diplomacy priorities, with Vision 2030 concerns about another escalation weighing on Saudi strategy. Oil & Shipping: Crude prices were steady as traders weighed fragile US-Iran peace efforts; some Strait of Hormuz traffic resumed, but uncertainty remains around tolls and security. Customs Crackdown: ZATCA seized 208,836 amphetamine pills at Al Hadithah border crossing, arresting two suspects and highlighting tighter land/sea/air controls. AI Governance: Saudi Arabia warned that AI is becoming a counterterrorism threat, as regulators worldwide struggle to keep pace with fast-moving tech. Energy & Industry: Saudi Aramco reportedly ramped up Ras Tanura exports and shifted to spot sales; meanwhile, Saudi Arabia qualified 27 companies for a second BESS tender, signaling continued grid storage push. Finance & Business: PwC appointed Faisal Al Sarraj as country senior partner for Saudi Arabia, while foreign investors deployed about $5.3bn into Saudi private markets in 2025. Sports Business: Saudi-backed LIV Golf faces uncertainty after its Saudi backer said it will stop paying bills after 2026.

Saudi Private Capital Inflow: Foreign investors put about $5.3bn into Saudi private markets in 2025 (around 60% of total private capital), with the Saudi Venture Capital Company saying international capital now views the Kingdom as a destination, not just a regional stop. Labour & Migration: Kenya’s PM Cabinet Secretary Musalia Mudavadi begins a three-day visit to Riyadh to push stronger protections for 300,000+ Kenyan workers in Saudi Arabia, focusing on labour standards, dispute resolution and ethical recruitment. Aviation & Travel Disruptions: Airlines are cautiously resuming some Middle East routes amid the Iran-US diplomatic push, but many services to Riyadh and Dubai remain cut or delayed. Energy & Trade Security: CENTCOM chief Admiral Brad Cooper met regional leaders in Bahrain to deepen security cooperation and back efforts to keep the Strait of Hormuz open for commerce. Finance & Fintech: Paytm Europe Payments received Luxembourg regulator approval for its payment licence, adding new transaction and acquiring services. Corporate Deals: Yara agreed to buy a Texas ammonia plant for $1.3bn, targeting ramp-up by end-2026. Innovation Push: VAP Group launched VAP Ventures to back 100 startups by 2030 across AI, Web3 and digital games.

Strait of Hormuz Security: The US and 12 Middle East countries, including Saudi Arabia, agreed to intensify joint efforts to keep commercial shipping moving uninterrupted through the Strait of Hormuz, with senior officials meeting in Bahrain under CENTCOM leadership. Oil Market Signals: Saudi Aramco has resumed loadings from Ras Tanura after nearly four months, switching to spot pricing to speed Asia sales as Gulf flows recover post–US-Iran interim deal; crude prices also steadied as Saudi and UAE shipments near pre-war levels. Arbitration Reform: The Saudi Center for Commercial Arbitration (SCCA) published a 2026 country report showing Saudi courts’ high award enforcement and a modern, pragmatic approach, including acceptance of service via SMS/WhatsApp, feeding into a draft arbitration law under consultation. Hajj Pre-Registration: Saudi’s Hajj roadmap update is driving 2027 pre-registration, with pilgrims asked to submit identity, photo, mobile and bank details by set deadlines. Real Estate Deal: Retal signed conditional agreements with Roshn to acquire and develop 163 residential units in Makkah’s AlManar community in a SAR124m ($33m) package. Aviation & Travel Links: Flynas launched its first Riyadh–Budapest route, while Riyadh Air continues expanding international connectivity. Labor & Compliance: A legal update highlights Saudi’s evolving employment framework, including Qiwa-linked contract and workforce mobility rules.

Digital Economy & Connectivity: Saudi Arabia retained the No.1 spot in the 2026 ITU ICT Development Index for the second year running, scoring 99.8/100, with regulators citing continued investment in digital infrastructure, cloud and AI under Vision 2030. Energy & Trade: Saudi Aramco resumed exports from Ras Tanura and is switching to spot pricing to speed up Asia sales after a near four-month halt, with multiple supertankers leaving the Strait of Hormuz as prompt supply pressures crude prices. Aviation & Travel: Cathay Pacific said it will restart Middle East passenger services from September 1 to Dubai and four-times weekly to Riyadh from Sep 1, with freighter flights to Riyadh resuming from Aug 1. Tourism & Culture: Jazan tourism surged in 2025, with visitor numbers up 47% year-on-year to over 4 million and spending above SAR3bn, supported by new attractions and infrastructure upgrades. Projects & Housing: Retal signed SAR123.83m (about $33m) agreements with ROSHN to develop 163 housing units in AlManar, Makkah, with work over 36 months. Social & Safety: YouTube rolled out supervised kid accounts across MENA including Saudi Arabia, adding stricter privacy controls and parental limits on Shorts viewing. Regional Watch: Iran warned Trump and Israel against attacks during Khamenei’s funeral period, as diplomacy around the US-Iran talks continues via Doha.

Energy & Markets: Saudi Aramco sold at least 6 million barrels of crude on an ad-hoc spot basis to Asia, a rare move that underlines how the Iran war’s supply disruptions are still reshaping global flows; Oil Prices: crude extended losses on oversupply fears as Strait of Hormuz traffic recovered and inventories tightened less than expected; Power Projects: Saudi Arabia prequalified 27 firms for the second round of 12 GWh/3 GW battery storage projects under a Build-Own-Operate model across six provinces; Finance & Licensing: Tabby secured consumer and SME finance licences in Saudi Arabia, while foreign investment in Saudi private markets hit SR20bn in 2025; Real Estate: Al Ramz and Oud Capital plan a shariah-compliant SAR267m residential fund; Corporate/Industry: Sipchem’s ethylene cracker expansion is complete and trial production has started; Diplomacy & Trade: Saudi and China discussed expanding strategic partnership, and Saudi foreign minister talks with China focused on energy, industry and supply chains.

Saudi Finance & Fintech: Tabby wins Saudi Central Bank consumer finance and SME finance licences, enabling Shariah-compliant Murabaha plans for higher-value purchases and working-capital funding for merchants. AI in Commerce: Saudia Cargo partners with cargo.one to deploy “AI workers” that automate inbound quotation requests, cutting quote turnaround times by 68% and boosting first-quote accuracy. Energy Storage Push: Saudi Power Procurement Company prequalifies 27 developers for Group 2 BESS projects totaling 12,000 MWh across six sites under BOO models. Industrial Expansion: Tasnee completes a $500m ethylene cracker expansion at SEPC in Al Jubail and starts pilot production. Water Infrastructure: NWC wraps up 50 water and sanitation projects worth over SAR 2.4bn in H1 2026, adding pipelines and boosting storage and wastewater capacity. Regional Deals & Capital: Investcorp plans to deploy about $350m from its $750m Golden Horizon fund across GCC family businesses by 2028. Diplomacy: Pakistan’s Interior Minister Mohsin Naqvi arrives in Riyadh for talks to deepen security and counter-narcotics cooperation.

Saudi-China Diplomacy: Saudi Foreign Minister Prince Faisal bin Farhan met China’s Wang Yi in Beijing, agreeing to deepen cooperation on energy, industry, supply chains and advanced technologies, with both sides stressing maritime navigation security and freedom of navigation in the Strait of Hormuz. PIF Earnings Surge: Saudi Arabia’s Public Investment Fund reported consolidated net profit up 152% to SR65.1bn in 2025, driven by higher revenues, better operations and stronger contributions from associated companies, as assets climbed to SR4.54tn. FDI Soft Patch: Saudi net FDI inflows fell 2.4% year-on-year to SR23.1bn in Q1 2026, while outward FDI rose 50.6% to SR3.5bn. Makkah Hospital PPP Tender: Saudi NCP launched an EoI/tender for a 391-bed hospital at Umm Al-Qura University in Makkah under a 30-year DBFOM PPP model. Energy & Markets Watch: Reuters said the ECB’s next rate move is less urgent after a fast retreat in energy prices, with Saudi output helping keep supplies steady. Aramco Helicopter Tragedy: Saudi Aramco helicopter crash killed all 14 on board, prompting an investigation. Tourism Push: Aseer’s municipality is offering 44 seasonal tourism investment sites for the summer season, aiming to boost hospitality and local economic activity. Work Permit Rule: Saudi Arabia extended the deadline to rectify expired work permits until end-2026.

Saudi Business Diplomacy: Federation of Saudi Chambers (FSC) and the Islamic Chamber of Commerce and Development (ICCD) pushed for deeper intra-Islamic trade and investment at ICCD board talks in Türkiye, with a focus on youth entrepreneurship, food security and regional connectivity. AI & Data Centers: Sanabil (PIF-owned) joined a $30m Series A in GCC sovereign AI startup 1001, while Magna AI and Emaar Executive Company (EEC) agreed to build sovereign AI data center infrastructure across Saudi Arabia. Capital Markets: Arabian Romoz plans a Nomu IPO float of 11.95% (950,000 shares), and Saudi CMA compensated more than 20,000 investors tied to Al Kathiri/Anaam violations. Retail Media Partnership: MBC Group and Cenomi Centers launched an integrated live media experience at Westfield Riyadh, adding dedicated studios and broadcast capabilities. Energy & Trade: Saudi Arabia introduced a new irrigation code aimed at saving 2bn cubic meters of water annually, and Saudi-led IMCTC took part in UN Counter-Terrorism Week in New York. Corporate Moves: Kapila Ariyaratne will step down as SDB bank CEO in October, with Manoj Akmeemana set to succeed.

Saudi Tourism Jobs: Red Sea Global marked the graduation of 386 trainees from its Red Sea Vocational Training Programme, a 27-month push to build Saudi talent for tourism and hospitality roles across the group’s destinations. Hospitality Expansion: IHG says it will bring all six Luxury & Lifestyle brands to Saudi Arabia by 2028, adding to its fast-growing portfolio as the Kingdom targets 150m visitors. Airport Accessibility: Cluster2 Airports secured Level One Accessibility Enhancement Accreditation for 18 Saudi airports, boosting services for passengers with disabilities. Energy & Trade Risk: Oil prices edged up as US-Iran talks resumed but Strait of Hormuz shipping remains fragile, with transit still far below normal and insurers watching every incident. Aramco Tragedy: An investigation is underway after an AW139 helicopter crash near Ras Tanura killed 14 people, with officials and senior Saudi energy figures offering condolences. Regional Water Security: GCC ministers discussed a regional water interconnection network to strengthen Gulf water resilience and emergency supply routes. World Cup Business: Saudi Arabia’s football federation chief resigned after the team’s group-stage exit, underscoring the economic and brand stakes tied to hosting and performance.

Saudi World Cup Fallout: Saudi Arabia’s Football Federation president Yasser al-Misehal resigned after the Green Falcons crashed out at the group stage, ending a campaign that included a 4-0 loss to Spain and leaving the team bottom of Group H. Oil & Markets: Gulf stocks softened as US-Iran tensions and a fragile ceasefire kept investors cautious; oil prices rose on renewed strike risk around the Strait of Hormuz, even as producers pushed on with loading. Aramco Tragedy: Saudi authorities are investigating a fatal AW139 helicopter crash near Ras Tanura that killed 14 people, as Aramco resumed crude loadings at the terminal after a near four-month halt. Travel Rules: ZATCA lowered Saudi’s cash and gold declaration threshold for travellers to SAR 40,000, requiring disclosure on arrival and departure. Real Estate Leasing: JLL was named exclusive leasing agent for Al Bustan Business Park in Riyadh, a Grade A mixed-use office development targeting LEED Gold. Digital Infrastructure: Letsia said its HyperDC Riyadh phase 1 investment has exceeded SAR 50m, aiming to build green data center and enterprise cloud capacity. Diplomacy: Saudi foreign minister Prince Faisal is set to visit China amid ongoing regional tensions involving Iran and the US.

Saudi Water Week Launch: Saudi Arabia kicked off the first Saudi Water Week in Jeddah, running for five days and pairing the 7th Arab Water Forum with stakeholder talks for the 11th World Water Forum, spotlighting desalination, reuse, digital water management and water security under Vision 2030. GCC Trade Push: Saudi’s industry minister joined a virtual GCC meeting on trade and industry integration, aiming to turn leaders’ directives into an action plan to strengthen supply-chain resilience and intra-Gulf commerce. Aramco Helicopter Tragedy: A helicopter crash near Ras Tanura killed all 14 people on board, with authorities launching an investigation; the incident comes amid heightened regional energy-route risks. Saudi Trade Momentum: Saudi’s Q1 2026 trade surplus hit SR90.5bn, up 60% quarter-on-quarter, as exports outpaced imports. Work Permit Deadline: Qiwa warned employers to fix expired work permits by June 30; from July 1, workers with permits expired for over three months may be removed from establishment records. AI Talent Boost: Saudi’s national AI team won six awards at the Asia-Pacific AI Olympiad, including one gold and three silvers, reflecting growing investment in youth tech. Saudi Retail Contract: Cenomi Centers awarded a SAR1.3bn design-and-build contract for a premium Al Khobar mall and boulevard, targeting a three-year delivery. Regional Shipping Fees Watch: Oman signalled Strait of Hormuz transits may face service fees, raising concerns about future toll-style arrangements. Saudi-Pak Labour Plan: Pakistan targets deploying one million workers to Saudi by 2030 across construction, hospitality, healthcare, IT, logistics and more.

Tourism & Aviation: Saudi Arabia’s Summer 2026 push gets a boost with the “Unlock More” digital platform from the Saudi Tourism Authority, bundling offers from 50+ partners across Riyadh, Jeddah, Aseer, the Red Sea, Taif and Al-Baha. Logistics & Trade: SAL Logistics Services will provide ground handling and air cargo services for Singapore Airlines at King Khalid International Airport in Riyadh under a renewable agreement. Aviation Tech Recognition: Dammam Airports was named among the top five global digital transformation projects for its integrated digital asset management system. Real Estate: Jabal Omar plans to sell 400 hotel residential units and revise its Makkah project’s final phase after Saudi eases foreign property ownership rules in designated zones. Finance & Markets: Burjeel Holdings priced its first MENA healthcare sukuk, raising $500m with 3.2x oversubscription. Policy & Compliance: Saudi Arabia tightened gold declaration rules for travellers, cutting the threshold to SAR40,000 and expanding customs enforcement. Geopolitics & Energy Risk: Iran reiterated it can control shipping in the Strait of Hormuz as oil prices slid, while Saudi Aramco restarted crude loading in the Persian Gulf.

Saudi Trade Security: Zakat, Tax and Customs Authority (ZATCA) says Saudi customs recorded 1,162 contraband seizures last week, including 68 narcotics types and 363 other prohibited items, plus 2,486 tobacco products and cash-related cases. Travel Rules Tightened: Saudi Arabia lowered the gold declaration threshold for travellers to SAR40,000 and requires written customs declarations with proof of purchase; undeclared valuables can be seized and fines apply. Sports & National Scrutiny: Saudi Arabia’s World Cup exit is drawing fresh questions after the federation’s quick coaching change ahead of the tournament, with reports it may consider dismissing Georgios Donis after only six matches. Saudi Pro League Transfer: Al Ahli sealed a reported $25m deal for Armenian midfielder Eduard Spertsyan from Krasnodar, with medicals booked. Regional Finance/AML: Saudi Arabia also introduced tighter anti-money laundering rules for travellers entering or leaving the Kingdom, expanding a risk-based approach to financial crime. Global Markets Watch: Oil and energy sentiment remains sensitive to Strait of Hormuz developments as shipments and security risks swing prices.