AGP Executive Report

US-Iran Fallout for Gulf Economies: The US Treasury is exploring ways to use frozen Iranian assets to fund reconstruction and repairs in Gulf states hit by attacks attributed to Tehran, with officials seeking damage-cost assessments from partners; options under review reportedly range from financial holdings to physical assets like oil tankers. Saudi-Russia Minerals Push: Saudi Arabia’s Industry Minister Bandar Alkhorayef says Riyadh wants deeper cooperation with Russia in rare earths and critical minerals to strengthen supply-chain resilience, echoing Vision 2030 diversification priorities. Energy Reliability Message: Saudi Energy Minister Prince Abdulaziz bin Salman told the St. Petersburg forum the Kingdom will remain a reliable energy supplier “under all circumstances,” citing resilience and infrastructure capability. Saudi Business Links: SABCCI inaugurated its office in Dhaka to boost Saudi-Bangladesh trade and investment ties. Regional Trade Routes: Turkey’s plan to modernise the Hejaz Railway and extend it toward Oman aims to create an alternative corridor to reduce reliance on the Strait of Hormuz. Tourism & Media: Red Sea Global released “Red Sea Waves Vol. 2,” a second music album tied to its regenerative tourism brand.

Gulf Security: Kuwait temporarily closed airspace after intercepting seven Iranian ballistic missiles and multiple drones; 11 flights were diverted, with officials citing material damage but no casualties. Regional Diplomacy: Saudi Arabia also condemned Iran’s strikes on Bahrain and Kuwait as a breach of international law, pledging support for both states’ sovereignty and security. Energy & Trade Risk: With the Strait of Hormuz still effectively blocked, shipping and oil-market workarounds are keeping crude below $100, but costs and route disruptions continue to ripple through the region. Saudi Business & Enforcement: Saudi Customs (ZATCA) reported 686 contraband seizures last week, including major drug hauls and tobacco smuggling attempts. Capital Markets: SpaceX’s IPO plan—$75bn at about $1.77tn valuation—could eclipse Saudi Aramco’s 2019 record, while highlighting Musk’s control via high-vote shares. Saudi-Linked Deals: Pakistan signed a MoU with Saudi partners to develop a 140-acre Karachi port waterfront maritime business district, including a digital banking park.

Saudi Real Estate Rules: Saudi Arabia’s Ministry of Investment updated 2026 guidelines for non-resident foreign firms to own property, requiring home-country commercial registration, translated and embassy-authenticated incorporation documents, a certified power of attorney naming a Saudi representative, and digital identity steps via Saudi diplomatic missions. Saudi-Russia Pharma Ties: The SFDA signed an MoU with Russia’s State Institute of Drugs and Good Practices to deepen cooperation on GMP, inspections, quality frameworks, and training. Saudi-Pakistan Deal Push: Saudi and Pakistan finalised investment agreements covering ports, motorways (including Hyderabad–Karachi), real estate and minerals, while Pakistan also signed an MoU with Saudi and local partners to explore a 140-acre maritime business district at Karachi Port Trust waterfront. Customs Crackdown: ZATCA seized 6.2kg of hashish at Al-Wadiah border crossing, arresting the intended recipient after the drugs were found hidden in vehicle food containers. Archaeology Spotlight: Saudi archaeologists at Diriyah unearthed an Abbasid-era hoard—over 100 pieces of gold, silver and gemstone jewellery—buried along an old Hajj pilgrimage route.

Saudi Investment Rules: Saudi Arabia’s Ministry of Investment set out updated requirements for non-resident foreign firms to own property in the Kingdom without running local economic activity, including embassy-authenticated corporate documents and a nominated representative. Whistleblower Protection: Saudi Arabia launched regulations to protect whistleblowers, witnesses, experts and victims, with court procedures to hear testimony privately and conceal identities in sensitive cases. Energy & Trade Resilience: At SPIEF, Russia’s Putin said Saudi and Russia are working to balance oil interests of suppliers and consumers, while broader coverage highlights how Hormuz disruption is pushing Gulf states to diversify routes and capacity. AI & Infrastructure Pressure: A new analysis warns the global AI data-centre boom is facing delays and redesigns, with the real battleground shifting to capital allocation and energy security. Markets Watch: SpaceX’s record IPO plans and Kraken’s tokenized access via xStocks kept investors focused on how tech listings could reshape global capital flows. World Cup Business: FIFA confirmed clubs will receive daily compensation for players called up for the 2026 tournament, tying football talent to a wider economic payout.

Saudi Business & Economy: Saudi Arabia’s events industry is forecast to surge from $6.1bn in 2021 to $17.6bn by 2031, with a projected 8.7% CAGR, led by sports as the biggest revenue contributor and sponsorship spending as a key growth driver. Real Estate & Investment: A new UAE property investment index ranked the Emirates as the top global destination, with 85% of Saudi investors listing it among their top three choices—highlighting continued regional capital flows. Energy Security: South Korea’s vice trade minister met Aramco officials in Seoul to discuss long-term resource security, including stable crude and naphtha supply and cooperation via strategic petroleum reserves and storage infrastructure. Corporate & Projects: ROSHN Group signed a new deal with Tatweer Buildings Company to design, build and supervise a public educational facility in East Riyadh’s WAREFA community for up to 500 students, following 43 prior school projects in Riyadh and Jeddah. Healthcare Governance: Rameda appointed Sharif Ahmed El Akhdar as non-executive chairman, reflecting ongoing board reshuffles after LimeVest’s investment-linked stake changes. Regional Trade & Diplomacy: Saudi Arabia and the UAE blocked US strikes on Iran by denying airspace access, a move that underscores how Gulf security decisions can reshape US military options.

SpaceX IPO Watch: SpaceX set its IPO price at $135 per share, aiming to raise $75bn and value the company at about $1.77tn, with trading expected June 12—an event that’s already rattled Saudi investors, including Kingdom Holding shares. Saudi Markets: Kingdom Holding shares slid up to 10% after the SpaceX stake re-pricing, with the firm saying it holds a 0.34% stake valued at $4.47bn as of end-March. Aviation & Trade: Riyadh Air received its first two Boeing 787-9 Dreamliners, a key step as the carrier prepares to launch passenger flights. Energy Diplomacy: Saudi Energy Minister Prince Abdulaziz bin Salman met Russia’s Alexander Novak at SPIEF, calling for stability in global energy markets amid OPEC+ uncertainty. Regional Risk: The US issued a new Level 3 travel alert covering Saudi Arabia and other Gulf states as Iran-linked tensions keep security “highly unpredictable.” Logistics: Maersk launched a new weekly shipping service linking North Europe and Italy with Egypt to improve transit times and reliability. Venture Capital: Saudi-backed Anara Impact Capital held its first close at $48m for MENA impact startups, targeting $50m.

Aramco Contracting: McDermott has been selected by Saudi Aramco for a multi-year project management consultancy long-term agreement, partnering with Fayez Engineering (SLFE) for engineering and front-end development across energy, downstream, petrochemicals and low-carbon projects in the Kingdom. Energy Deals: Korea Electric Power Corp (KEPCO) won the second phase of Aramco’s Jafurah cogeneration project, signing power and steam sales agreements and an EPC contract with Doosan Enerbility; the 331MW plant is due by June 2029. Saudi Market Finance: Kingdom Holding said it holds a 0.34% stake in SpaceX, with a carrying value of SAR 16.76bn as of March 31, 2026, as SpaceX’s IPO terms near. IPO Watch: SpaceX set a fixed IPO price of $135 per share, targeting about $75bn and valuing the company around $1.77tn, with trading expected on June 12—potentially reshaping global IPO records. Regional Risk & Markets: Gulf stocks edged higher on hopes for a wider US-Iran deal, while Brent eased on an Israel-Lebanon ceasefire; Saudi’s benchmark rose slightly. Saudi Economy Signal: The IMF reiterated Saudi growth resilience despite Hormuz and regional conflict risks. Saudi Business Culture: Westcon-Comstor achieved Great Place To Work certification in 25 countries, citing trusted leadership and inclusion.

Middle East Risk Premium: Iranian strikes hit Kuwait’s airport terminal, killing at least one and injuring dozens, as Kuwait expels Iranian diplomats and the US carries out defensive actions near the Strait of Hormuz—pushing Brent above $98. Saudi Macro Resilience: The IMF says Saudi Arabia is holding up thanks to rerouting oil via the East-West pipeline and Red Sea ports, though war disruption is weighing on non-oil momentum and confidence. Forced-Labour Trade Pressure: The US proposes Section 301 tariffs on 60 economies over forced-labour failures, with Saudi Arabia among those listed—raising the stakes for GCC exporters and supply chains. SPIEF Spotlight: Russia’s St. Petersburg forum (“Russian Davos”) opens amid Ukrainian drone attacks on nearby energy infrastructure; Saudi is attending with a large delegation. Saudi Private Sector Pulse: Saudi non-oil private sector activity grew fastest in three months in May, with the PMI rising, helped by restored operations and domestic demand. Healthcare Expansion: Morocco’s Akdital plans a third hospital in Saudi after land acquisition in Riyadh, targeting 1,000 beds by 2030. Corporate Moves: Georg Fischer opens a commercial office in Riyadh to support water infrastructure projects. Food Security Push: Almarai opens nominations for its $500,000 food security research prize for dryland regions. Space IPO Buzz: SpaceX’s $75bn IPO plan at $135/share could make Elon Musk a first-time trillionaire—an outsized global finance story that’s still rippling into investor sentiment.

Riyadh Real Estate Finance: SAB Invest and Retal launched a CMA-regulated SAR1.9bn ($502m) real estate investment fund for the Retal Heights project in Almalqa, with SAB funding up to 50% and targeting institutional/qualified investors. Makkah Redevelopment Deals: Umm Al Qura-led consortium won Royal Commission letters of award for Hindawiya West and South adjacent to Masar Destination, a SAR6bn ($1.6bn) development via a CMA-compliant real estate investment fund. Mideast Market Mood: Gulf stocks mostly slipped as Iran-war jitters and stalled US-Iran talks weighed on sentiment, while Saudi’s TASI edged up on ACWA Power gains. US Trade Pressure: The US proposed extra 12.5% duties on 54 economies, including Saudi Arabia, over alleged failures to block forced-labour imports, with hearings set for July. AI Push in Saudi Telecom: Zain KSA launched an AI Center of Excellence to embed AI across operations and expand AI services for customers and government, aligning with the Year of AI. RCRC Mobility Move: Riyadh’s Royal Commission for Riyadh City rolled out flexible working hours across six zones to ease traffic and improve commute times. Energy & Projects Watch: TAQA-led consortium won Abu Dhabi’s 2.6GW Taweelah C IPP (PPA to 2050), with commercial operations targeted for 2029.

Women at Work: Elsewedy Electric says Saudi female staff now make up about 6.5% of its workforce in the Kingdom, as it pushes workplace inclusion aligned with Vision 2030. GCC Connectivity: Kuwait’s municipal council approved the first phase of the Kuwait–Saudi rail link, a strategic 85.8km corridor aimed at boosting Gulf trade and logistics. Saudi-Russia Energy Diplomacy: Saudi Arabia will be the main guest of honour at Russia’s SPIEF 2026, with Saudi Energy Minister Prince Abdulaziz bin Salman leading a delegation including Saudi Aramco. Health Tech Push: Saudi Arabia’s health transformation is accelerating with AI diagnostics, robotics and virtual care, including the Seha Virtual Hospital network linking 242 hospitals. AI Ethics Debate: A new Gulf-focused discussion questions whether the region’s AI boom is improving lives—or raising deeper ethical concerns. Finance Rules: SAMA told lenders that only verified Taqeem-licensed appraisal reports can determine total loss for leased vehicles, tightening how banks handle accident write-offs. Makkah Real Estate: Rikaz consortium won a SAR2bn ($533m) mixed-use contract for East Hindawiyah near Al Masjid Al Haram, targeting a major Vision 2030 urban upgrade.

Saudi Finance & Regulation: SAMA licensed two new finance companies—Muwafaqa Alragmiya for finance aggregation and jak almuqaddimah for consumer finance—pushing the Kingdom’s fintech and lending competition forward. Energy & Industry Deals: Emerson will co-develop with Saudi Aramco next-generation corrosion management solutions, using ultrasonic online monitoring and real-time data to improve safety and performance. Power Projects: Doosan Enerbility won a $556m contract for the second phase of Saudi’s Jafurah cogeneration plant, adding 330MW power and 465 tonnes/hour steam. Makkah Real Estate Pipeline: Ladun-led and First Avenue-led Saudi consortia were awarded major informal settlement redevelopment projects in Makkah, with targeted sales value of about $1.6bn and an East Hindawiyah concession estimated at $532m. Capital Markets: Banan Real Estate secured an SAR 84m Shariah-compliant credit facility from Riyad Bank to fund Riyadh projects. Logistics & Security: An MSC container ship was damaged by an explosion off Iraq, renewing concerns over northern Arabian Gulf shipping safety. Green Hydrogen Leadership: Acwa appointed Samir J Serhan as CEO, as the renewables-to-hydrogen developer scales its Neom-linked ambitions. Nomu Market Watch: Nomu activity shows signs of revival after Masqa Investment’s IPO, with more deals cautiously advancing.

Energy & Trade Security: Oil prices swung as US-Iran talks stayed uncertain and Iran threatened to block the Strait of Hormuz, while satellite-based reporting said Iranian strikes damaged at least 20 US military sites across the Gulf region, including in Saudi Arabia, UAE, Qatar, Kuwait, Iraq, Jordan, Bahrain and Oman. Shipping Risk: A Panama-flagged containership was hit off Umm Qasr, Iraq, with a second blast sparking a fire, underscoring rising dangers for vessels in the northern Arabian Gulf. Saudi Power & Industry: Doosan Enerbility won a $556m contract for the second phase of Saudi Aramco-linked Jafurah cogeneration, and Saudi Arabia’s RCMC awarded a $533m Makkah mixed-use development deal to the First Avenue-led consortium. Saudi Economy & Markets: Saudi non-oil exports jumped 18.9% to $97bn in 2025, while Gulf sovereign wealth funds showed no slowdown in investment despite the Iran war. Tech & Capital Markets: Anthropic confidentially filed for a US IPO as the AI race turns into an IPO race, with SpaceX also targeting a record-setting listing. Policy & People: Riyadh is set to launch an urban cooling plan to cut surface temperatures by up to 15°C, and Saudi Arabia started re-issuing Umrah visas for the new season.

Makkah Mega-Projects: Umm Al Qura-led consortium has won two Royal Commission for Makkah City and Holy Sites contracts worth about SAR 6bn ($1.6bn) to develop Hindawiya West and South, expanding the Masar Destination area. Capital Markets: Masqa Investment (MSGA) set IPO subscription for June 17-24 on Nomu, targeting a listing allocation on June 28, with net profit up sharply in 9M 2025. IPO Watch: Mutlaq Al-Ghowairi Contracting (MGC) opened bookbuilding for its IPO, pricing between SAR 11-12.5 to raise up to SAR 3bn ($800m). Mining Expansion: AMAK completed incorporation of a wholly owned drilling and exploration subsidiary with SAR 40m capital, boosting support services for mining. Urban Cooling Plan: Saudi Arabia is preparing a Riyadh project to cool roads and building surfaces by up to 15°C, with pilot areas planned before wider rollout. Tech & Mobility: NVIDIA expanded DRIVE Hyperion robotaxi partnerships, including HUMAIN’s plan to deploy robotaxis in Saudi Arabia. Energy & Trade Routes: With Iran-US tensions, oil exports through the Strait of Hormuz may not return to pre-war levels, pushing shipowners to reassess routes and sanctions risk. Hajj Climate Risk: A new analysis warns Mecca’s heat is being reshaped by climate change, raising extreme-heat exposure for pilgrims.

Hajj & Umrah Logistics: Saudi Arabia began issuing Umrah visas for the new season, with entry to Makkah and Umrah permits via the Nusuk app from June 1, and set deadlines for visas, entry and final departures. Trade & Retail Data: GASTAT reported Saudi wholesale and retail trade operating revenue rose 7.3% in Q1 2026 year-on-year, with retail (ex-motor vehicles) up 9.5% and wholesale (ex-motor vehicles) up 5.5%, alongside higher employee compensation in the sector. Exports Momentum: Saudi non-oil exports (including re-exports) jumped 18.9% in 2025, while oil exports fell 4%, with machinery and electrical equipment driving re-exports growth. Real Estate Development: Hamat started first tenant handovers at Al Huda Park in Makkah, with construction now over 70% and Panda Retail taking the first unit ahead of a Q1 2027 opening. Regional Energy Supply: Zanzibar received its first direct fuel shipment from Saudi Arabia—36 million litres—aimed at easing shortages and lowering future costs if regional conditions stabilise. International Business Spotlight: Saudi Arabia was named guest of honour at Russia’s SPIEF 2026 (June 3-6), a major platform for investment and global economic engagement.

Hajj Operations: Saudi Arabia says Hajj 2026 wrapped up successfully with stable security and no major incidents, after deploying extensive health, security and environmental measures for about 1.71m pilgrims. Hajj Services & Compliance: The Hajj and Umrah ministry outlined 2027 arrangements, including mandatory transportation and catering during pilgrims’ stay, new Hajj office training, and a new three-category package system after cancelling “Package D.” Urban Cooling Plan: Riyadh is set to launch a city cooling project to cut road and building surface temperatures by up to 15°C, with studies and approvals still under way. Digital Infrastructure: Letsia Holding is expanding in Saudi Arabia with Letsia HyperDC, a green data centre and enterprise cloud in Riyadh focused on energy efficiency and lower water use. Energy & Trade: Japan’s April crude imports from Saudi fell sharply amid Strait of Hormuz disruption, while Aramco’s Abu Safah offshore project hit a key installation milestone with a Chinese contractor. Vision 2030 Review: Saudi Arabia is scaling back some Vision 2030 megaprojects, citing financial pressure and shifting priorities.

Hajj Operations: Saudi Arabia’s Hajj and Umrah minister Dr. Tawfiq Al-Rabiah met Hajj company representatives in Mina to review this season’s performance, discuss improvements, and kick off early preparations for next year’s pilgrimage, stressing continuous development across digital services, housing, transport and contracting. Pilgrim Services Awards: Malaysia’s Prime Minister Anwar Ibrahim congratulated Lembaga Tabung Haji for winning Saudi Arabia’s Labbaitom Award for a fifth straight year and Malaysia Airlines’ Amal for the Misk Al-Khitam Award, highlighting international recognition of pilgrim-arrival management. Retail Real Estate: Qatar’s retail market stayed broadly stable in Q1 2026, with organised retail supply unchanged while unorganised space added modestly; footfall improved early in the quarter thanks to major events and new brand openings including Saudi Deraah Perfumes. SME Growth in Water Tech: UAE-based Meyahh, a digital B2B platform for water-treatment procurement, said it has expanded beyond Egypt into Saudi Arabia and the wider region, aiming to help SMEs compete on better terms. Regional Finance & Trade: Pakistan’s foreign exchange reserves rose to $22.65bn, supported by foreign economic assistance inflows including Saudi oil-facility loans, while FX rates in Pakistan stayed steady around the Saudi riyal peg. Geopolitics & Markets: Gold’s unusual “war news” reaction pattern is being linked to Strait of Hormuz risk, with analysts suggesting the move may be short-lived as investors track peace-versus-escalation headlines.