AGP Executive Report

Qatar–Saudi Trade Boost: The Qatari-Saudi Coordination Council’s Economy, Trade and Industry committee met by videoconference, highlighting trade of about $1.98bn in 2025 (+36%) and 18% growth in Q1 2026, with 977 Saudi firms operating in Qatar and talks on easing customs, backing SMEs and improving consumer protection. Oil & Shipping Watch: Brent held above $103 as Hormuz flows recovered, but analysts warn the market is still pricing longer disruption; separately, Saudi restarted Yanbu loadings after East-West pipeline repairs, supporting Middle East export momentum. Red Sea Security Risk: The Houthis’ growing role is raising pressure on Gulf shipping and Saudi Aramco assets, while Saudi and partners push for maritime security and collective defence. Healthcare Partnerships: KFSH became the first Middle East institution to join the International Registry for Alzheimer’s Disease and Other Dementias, and also secured JCI reaccreditation with zero high-risk findings. Finance & Infrastructure: Saudi Finance Minister Mohammed Al-Jadaan told the AIIB in Doha that impact—not just financing—should measure progress, urging country-driven, multi-year programs and stronger partnerships. Eastern Region Development: Sharqia Development Authority received Saudi approval for the Misk Tarout master plan for Darin and Tarout islands, paving the way for new urban and investment projects.

Gulf Diplomacy: Saudi Crown Prince Mohammed bin Salman met UAE Vice President Sheikh Mansour bin Zayed in Riyadh as both sides reviewed bilateral ties and regional developments, with the visit coming amid rising Houthi pressure on Saudi Arabia. Red Sea & Yemen Risk: Houthis’ rapid advances and alleged Iran-linked weapons upgrades are keeping Bab el-Mandeb and Red Sea shipping in focus, while UN envoy Hans Grundberg met Houthi negotiators to try to prevent further escalation. Energy & Markets: Oil sentiment stayed choppy as Saudi resumed Yanbu loadings after East-West pipeline restoration, while traders weighed US-Iran talks and ongoing maritime disruptions; gold held above $4,150 as rates expectations stayed a headwind. Corporate Deals: Saudi Steel Pipe won a SAR73m Aramco contract to supply oil and gas pipes, with delivery over eight months. Business & Investment: India’s Gulf crude imports recovered toward pre-conflict levels, and Saudi fintech/SME funding stories continued, including Amaani’s $5m Series A to expand AÏZA across the GCC. Tourism & Innovation: WEF and Saudi Tourism launched the inaugural “Beyond Tourism Impact Stars” cohort, backing private initiatives tied to community and sustainability.

Oil & Shipping: Brent held near $105 as Iran kept pushing to reopen the Strait of Hormuz, while Saudi Arabia restored partial flows on its East-West pipeline after drone damage, easing some supply fears but keeping markets jumpy. Saudi-US Diplomacy: Saudi FM Prince Faisal bin Farhan met US Secy of State Marco Rubio in Washington, focusing on Yemen and protecting navigation through Hormuz and Bab al-Mandab. Red Sea Security: Analysts warn the Middle East is shifting into multi-front escalation, with attacks and retaliation spreading across Iraq, Yemen, the Gulf and the Red Sea. Capital Markets & Fintech: Sahm Capital backed Saudi’s Financial Market Innovation Hackathon, supporting teams building solutions for the local capital market. Banking/Deals: ASB Capital was appointed joint lead manager for Kuwait International Bank’s $500m sukuk, drawing 2x orders. Energy/Industry: Saudi Red Sea Authority signed an MoU with Tahaluf Events to support the 2027 Red Sea Yacht Show and promote investment. Business & Trade: Saudi Food Show 2026 opened in Jeddah with record participation, while Pakistan’s TDAP marked its biggest-ever pavilion at the event.

Strait of Hormuz Tensions: Saudi and regional officials warned that any disruption to the Strait of Hormuz threatens global energy security, as Trump rejected Iran’s proposal and mediators still work on a deal to reopen the waterway without tolls or restrictions. Red Sea Security: Saudi coalition interception of Houthi drones and missiles continued amid escalating threats, with civil defence issuing alerts in Najran and Jazan before the danger passed. Saudi Markets Under Pressure: Gulf bourses slid after the Hormuz flare-up; Saudi’s benchmark fell about 1% with Aramco and major banks also retreating. Aramco Gas Shake-up: Saudi Aramco is considering creating a separate gas division and monetising assets to raise cash and attract foreign investment. Tadawul Reform Focus: A new push to fix Saudi market depth and trust is underway under the Capital Market Authority chairman, with the regulator facing the challenge of linking the exchange to Vision 2030 growth. Workforce Housing Deal: Rela, a Saudi workforce accommodation platform, secured investment from Yazeed Al Rajhi & Brothers Holding to expand its housing network. AI & Data Governance: Saudi highlighted its AI leadership as Arab League statistics meetings in Jeddah showcased AI-driven survey and classification tools. Saudi Tourism & Events: Saudi tourism climbed in a global index, while Golf Saudi backed a major women’s golf championship from 2027.

Gulf Security & Energy: Iran said it won’t soften its seven-day proposal to reopen the Strait of Hormuz after Trump rejected it, while oil prices swung on the risk of further delays; Saudi-led coalition forces also reported intercepting Houthi drones and missiles aimed at Riyadh and Khamis Mushait, keeping Red Sea and Hormuz risk premiums in focus. Markets: Gulf bourses were mixed as Saudi’s main index rose on strong banks despite the regional standoff; broader investor caution persisted amid rising US 10-year yields and Middle East uncertainty. Regulation & Finance: Saudi CMA opened a 30-day consultation on draft rules for conducting dealing activities in capital markets outside the Kingdom, including suitability and margin controls. Business & Investment: Saudi agencies adopted 500+ public proposals via the Istitlaa platform, including reducing some fines and fees. Infrastructure & Tourism: Jeddah Airport began operating Terminal 4 for 15m passengers annually; Red Sea Global launched the “Yacht Network” linking Amaala and Shura Island for winter 2026. Policy & People: Saudi Council of Ministers issued royal decrees waiving residency and work-permit fees for eligible displaced people from neighbouring countries, including clearing certain prior fines.

Red Sea & Hormuz Pressure: Iran says it will keep the Strait of Hormuz closed and claims it seized a US submarine drone, while oil flows through Hormuz are reported to have rebounded to about two-thirds of prewar levels as Saudi exports rise. Houthi Attacks on Saudi: France says its planned troop and air-defence deployment to protect Saudi energy infrastructure (notably Yanbu) is “strictly defensive,” as Houthis claim a Saudi airstrike killed seven in a Taiz market. Gulf Security Diplomacy: Saudi, Qatar, Türkiye, UK and US held UNGA-linked talks on Somalia’s security and territorial integrity, while Saudi FM pushed for Hormuz to return to pre-war status and warned that Gulf threats can hit global trade and energy. Nuclear Deal Scrutiny: US intelligence reported Saudi has not ruled out developing nuclear weapons, as Congress reviews the US-Saudi nuclear cooperation framework. Energy & Markets: Oil sentiment stays jumpy on truce hopes versus renewed security risks, with gold and silver traders watching US jobs/inflation and Fed signals. Saudi Business & Tourism: WEF launched Beyond Tourism Impact Stars with Saudi, and TOURISE set its 2027 summit theme “Alliances That Move the World.” Aramco Supply Chain: SLB won four multi-year integrated well construction contracts from Aramco covering 450+ wells. Food Sector: Saudifood Show and Saudifood Manufacturing 2026 open in Jeddah with 1,000+ exhibitors and 100,000+ products.

Gulf Security at UNGA: Saudi FM Prince Faisal bin Farhan warned that escalating Iranian and Houthi attacks threaten Gulf stability, global energy security and trade, urging freedom of navigation through the Strait of Hormuz, Bab al-Mandab, the Red Sea and Gulf of Aden, and calling for Hormuz to return to pre-Feb. 28 conditions without fees or restrictions. Makkah Defence Pact: Saudi Defence Minister Khalid bin Salman met Pakistan’s CDF Asim Munir in Riyadh, reaffirming joint efforts under the Makkah Agreement to confront attacks on Makkah and Saudi civilian/economic facilities. US-Iran Hormuz Deadlock: Iran said diplomacy is the only way forward after Trump rejected an Iranian proposal to reopen Hormuz, with Tehran insisting its conditions remain clear and awaiting mediator updates. Oil Exports Resilient: Saudi crude exports reportedly hit the highest level since the Iran war began, averaging about 6m bpd in September despite heightened regional risks. Digital Economy Scorecard: Bahrain ranked third in the Arab Digital Economy Index 2026, while Saudi placed close behind, highlighting data sovereignty, e-government and cybersecurity progress. Saudi EV Push: Ceer launched its first homegrown Exobot sedan and SUV, but adoption will hinge on charging, pricing and trust in warranties/after-sales. Aviation & Connectivity: Jeddah Airports begins the gradual rollout of Terminal 4 operations, shifting select international airlines starting Sept. 27.

Saudi Security & Yemen: Saudi Arabia says it intercepted Houthi missiles and drones aimed at Riyadh and Khamis Mushait, as attacks on civilian and economic targets continue. Mecca Pact in Action: Saudi, Pakistan and Türkiye held urgent defence chiefs talks in Riyadh under the Mecca Joint Defence Agreement, with ministers condemning attacks on Mecca and reaffirming collective defence. Nuclear Scrutiny: US intelligence assessments cited by the Washington Post say Saudi Arabia has not ruled out developing nuclear weapons, raising concerns over the Trump-era civilian nuclear cooperation deal. Oil & Markets: Crude prices swung on hopes for US-Iran de-escalation and fears of renewed conflict; traders also watched Red Sea risk and potential diesel export moves. AI & Tourism: Saudi is pushing AI across the visitor journey, including Nusuk’s multilingual assistant, as it targets 150m visits by 2030. Tech Investment: Qualcomm CEO told Asharq Al-Awsat it is expanding investments in Saudi Arabia and betting on the AI economy, building on an early Saudi customer relationship. Trade & Business: India-GCC talks in New York advanced an India-GCC Free Trade Agreement path, while Jordan’s food firms gear up for Saudi Food Expo and Saudi Industrial Expo in Jeddah. Regional Diplomacy: Morocco’s foreign minister held talks with Saudi, Lebanon and UAE officials on UNGA sidelines.

Mecca Pact in Action: Saudi, Pakistan and Türkiye chiefs of defence met in Riyadh to review threats after Houthi attacks, condemning strikes on Makkah and Saudi civilian/economic infrastructure and pledging deeper intelligence sharing, coordination and capability integration under the Makkah Joint Defence Agreement. Oil & Markets: Brent slipped about 2% as hopes grew for a US-Iran phased path to reopen the Strait of Hormuz, but traders still flagged Saudi supply risks amid ongoing Houthi pressure. Nuclear Concerns: A US classified assessment says Saudi Arabia has not ruled out developing nuclear weapons, raising fresh US congressional scrutiny of the civilian nuclear cooperation deal. EV Push: Saudi automaker CEER unveiled its Exobot sedan and SUV, targeting high-performance specs and fast charging, as the Kingdom accelerates its domestic EV ambitions. Trade & Diplomacy: A US official said the India-US trade deal is “90%-plus” done, while Pakistan’s PM Shehbaz urged restraint at the UN and stressed the Makkah pact is not aimed at any country. Global Trade Disruption: A WTO-linked editorial warned the world trading system is facing its most serious sustained disruptions in decades, tied to geopolitical shocks and supply-route strain.

Mecca Defence Pact in Action: Saudi, Turkish and Pakistani military chiefs are set to meet in Riyadh to coordinate support for Saudi Arabia under the Makkah Joint Defence Agreement after Houthi missile and drone attacks, as Turkey says its chief of general staff will travel and the pact treats attacks on one as attacks on all. Oil & Markets: Oil prices swung as investors weighed US-Iran truce hopes against renewed Houthi strikes; Brent slipped to about $105.7 and WTI to about $93.1, while the dollar headed for weekly gains on higher US yields. Red Sea Pressure: France said it will deploy troops, radar and air defence systems to protect Yanbu, a key Red Sea oil export hub, as Saudi diversions and ship-to-ship transfers in the Gulf of Oman hit capacity. Saudi Trade Data: Saudi’s merchandise trade surplus fell 25% year on year to $3.83bn in July, with exports down and oil still dominating shipments. Tech & Investment: Microsoft plans to spend over $10bn in the Middle East through 2030, including Saudi Arabia, to expand cloud, AI, cybersecurity and education support. Digital Finance & Payments: A Celent survey found 55% of Middle East and Africa banking customers are dissatisfied with payment services, citing outages, delays and fraud. Aviation & Tourism: Jeddah Airports and SJ Group extended planning support for Jeddah’s airport expansion, while Saudi-linked cruise activity brought about 3,400 tourists to Aqaba.

Red Sea Security & Oil Markets: Saudi Arabia intercepted six Houthi ballistic missiles aimed at Taif and Yanbu, pushing Brent to a one-week high before easing on reports of US-Iran talks to reopen the Strait of Hormuz; traders remain jittery as the Red Sea and the east-west pipeline’s restart are still key to Saudi crude exports. Global Diplomacy: Eighty countries at the UN called for urgent reopening of Hormuz and safe navigation, while Saudi FM Prince Faisal bin Farhan warned that delays in the two-state solution are piling up human costs. Western Military Support: France said it will deploy troops and air-defence systems to protect Yanbu, and UK support for Saudi air defences continues to expand amid rising risks to energy infrastructure. Saudi Policy & Markets: The Capital Market Authority proposed tighter IPO rules to boost investor protection and shift more execution risk to institutions and underwriters. Business & Investment: Saudi Arabia’s railways signed financing to buy 10 new passenger trains, while Microsoft pledged $10bn+ investment in Gulf tech and AI through 2030. Tech & Cyber: A report says Chinese-linked AI automation stole 600,000 credit card records from retailers, highlighting growing payment-security pressure in the region.

Halal Business Push: Malaysia’s religious affairs minister urged the industry to move from halal certification to export-ready “market-making”, calling for stronger branding, standards and global value-chain links. Food Innovation in Riyadh: Tanmiah Food opened an in-house innovation center to speed R&D for healthy, sustainable protein products, including custom work with hotels and restaurants. Saudi Capital Markets: Saudi Arabia’s market regulator proposed tighter IPO rules to boost investor protection and transparency amid a slowdown in listings. Energy & Security: Saudi civil defence lifted danger alerts in Makkah, Taif and Tabuk after earlier warnings; meanwhile the coalition said it intercepted six Houthi ballistic missiles targeting Taif and Yanbu. Oil Market Pressure: Aramco CEO Amin Nasser said disrupted operations can be restored “within days” and that alternative export routes are being studied as attacks continue. Trade & Investment Links: Nigeria and Saudi Arabia signalled deeper cooperation across agriculture, energy, aviation, fintech and trade, with a planned Jeddah–Abuja service from Dec 1. Corporate Moves: GAS Arabian got approval to transfer its 50% stake in the FS Elliott JV without changing its indirect economic interest. Digital Economy: A benchmark report estimates Saudi digital ad spend at $4.68bn in 2026 and warns of “creative fatigue” costs after National Day spikes. Smart City Tech: Viper Networks shipped its first smart city project in Saudi Arabia, starting deliveries of an Apollo smart lighting system.

Data Centers Boom: Saudi Arabia is among the fastest-growing data center markets globally, ranking third for annual operating IT capacity growth, with active computing power rising about 23% a year (2024-2026), per Savills. Tech Investment: Microsoft unveiled a Middle East technology framework committing more than $10bn through 2030, with cloud/AI expansion and a “digital resilience” push across the UAE, Kuwait, Qatar and Saudi Arabia. EV Push: CEER, Saudi Arabia’s first homegrown automaker, launched its Exobot electric sedan and SUV, aiming for a seven-model lineup by 2030. Oil & Markets: Oil prices jumped on supply and geopolitics, then swung as Saudi restarted its East-West pipeline and traders weighed US-Iran diplomacy and a possible diesel export ban; global bond yields also spiked on renewed inflation fears. Security & Travel: The US issued a “reconsider travel” advisory for much of the Middle East, citing Houthi attacks and flight disruptions; meanwhile, Secretary of State Marco Rubio said the US will honor defense commitments to Saudi Arabia. Regional Business Ties: Saudi-Azerbaijan cooperation is set to deepen via a joint commission and business council, with trade and investment targets highlighted around National Day. Transport Links: Fly Jinnah launched nonstop Karachi-Riyadh flights, with plans to increase frequency to daily next month.

Saudi EV Push: Ceer unveiled its first locally developed electric vehicles, the Exobot sedan and SUV, with 838 hp, 112 kWh batteries and up to 416 miles range, as the Kingdom accelerates its net-zero drive. Yemen Security & UK Support: The UK will provide defensive air-to-air refuelling for Saudi missions against Iran-backed Houthis, as attacks and shipping risks around the Red Sea and Bab al-Mandeb intensify. Oil Market Watch: Saudi resumed operations on the East-West crude pipeline after drone damage, easing supply fears and helping push Brent back around/under $100 at points. Pipeline & Shipping Pressure: The Red Sea crisis is also shifting attention to Bab al-Mandeb as a chokepoint, with reports of de facto restrictions affecting regional oil flows. Finance & Payments: SHL Finance renewed a $53.3m Shariah-compliant facility, while FinTra’s UPN launched a global payments consortium to expand cross-border rails. Markets & Rates: Saudi National Day fireworks and drone shows were postponed, and global Gulf stocks tracked oil and diplomacy hopes.

Oil & Shipping: Saudi Arabia restarted its East-West pipeline to the Red Sea after a multi-day shutdown, easing crude supply concerns and helping oil prices drift lower as Hormuz traffic improves; still, routing uncertainty remains as tankers adapt to the Bab Al Mandeb and Hormuz risk. Diplomacy & Security: Russian President Putin and Saudi Crown Prince Mohammed bin Salman stressed safe passage through Bab Al Mandeb and Hormuz and called for a political, diplomatic push to end Yemen hostilities. Markets: Brent slipped below $100 amid hopes for US-Iran talks at UNGA, while Saudi pipeline restoration supported sentiment. Saudi-EV Push: CEER unveiled its first homegrown electric vehicles, signaling a push to build a domestic auto industry. Saudi Biotech Deals: Riyadh’s Life Sciences Innovation Forum (LSIF) reported SAR 5.5bn in declared deals and 23 biotech companies pitching for funding. Saudi-Pak Ties: Pakistan and Saudi Arabia signed a visa waiver pact for diplomatic and official/special passport holders, boosting high-level exchanges. UK Support: The UK agreed defensive RAF Voyager refuelling support for Saudi air defences amid renewed Houthi attacks. National Day: Saudi Arabia marked its 96th National Day with Vision 2030 progress highlighted across diversification, tourism and technology.

Saudi EV Push: CEER, Saudi Arabia’s first automaker, unveiled its EXOBOT sedan and SUV at King Abdullah Economic City, with locally designed and engineered models due in early 2027 and a planned seven-model rollout over five years. Energy & Markets: Oil slipped below $100 as Iran floated a possible Strait of Hormuz reopening and Saudi Aramco restarted its East-West pipeline at reduced rates, easing supply fears. Defense Support: The UK agreed to deploy an RAF Voyager air-to-air refuelling aircraft to support Saudi defensive operations against Houthi attacks, aiming to keep Saudi jets in the air longer. Regional Diplomacy: Saudi and Russia’s leaders discussed keeping the Strait of Hormuz and Bab el-Mandeb open amid Yemen tensions, while G7 ministers urged Iran to stop arming Houthis. SME Finance: A report said Saudi SME lending hit about $125bn in 2025, but still trails the Vision 2030 target, leaving a large financing gap. Real Estate for Foreigners: Dar Global and ROSHN highlighted new opportunities for eligible non-Saudis under updated property ownership rules, with demand rising in Riyadh, Jeddah and Makkah. Saudi-Pak Ties: Saudi Arabia and Pakistan signed a visa exemption deal for diplomatic and special passport holders.