Saudi weekly digest. XV
Last week passed with plenty of news regarding the Kingdom. Kicking off the review with reports about business and the economy.
Fitch Ratings improved Saudi Aramco's foreign and local currency Issuer Default Ratings to 'A+' from 'A', with a stable outlook, due to the company's robust business profile and a firm commitment to providing a reliable and gradual dividend.
Forbes has included six Saudi Arabian companies in its list of the top 30 fintech companies in the MENA region. Egypt topped the list with eight companies, followed by Saudi Arabia with six and the UAE with five firms.
Saudi Arabia led the way in the MENA region, accounting for 67% of total bond proceeds, followed by the UAE with 17%, Morocco with 9% and Egypt with 6%. During the first quarter of 2023, debt issuances in the region reached $26.9 billion, almost triple the value compared to the same period the previous year.
Last Thursday, Crown Prince Mohammed bin Salman unveiled the creation of four special economic zones in Saudi Arabia to attract foreign investment. The four zones will be established in different locations across the country, namely Riyadh, Jazan, Ras Al-Khair, and King Abdullah Economic City. The ultimate goal of this initiative is to expand economic opportunities for international investors.
Huawei Technologies is discussing with the Riyadh authorities to enhance its presence in Saudi Arabia, including making it the company's headquarters for the Middle East. This move aligns with the Saudi government's efforts to establish itself as a regional business hub and as a result of the growing diplomatic and business relationships between Saudi Arabia and China.
Politics
Last week top White House officials met with Crown Prince Mohammed bin Salman. The visit comes as Saudi Arabia continues to pursue a foreign policy that has caused tension with the US. The meetings follow a recent phone call between the Crown Prince and US national security adviser Jake Sullivan and reportedly covered Iran and steps towards ending the war in Yemen.
And in a surprising change in standpoint…
Senator Lindsey Graham has expressed his admiration for Saudi Arabia after his recent visit to the country, marking a change from his previous stance on its Vision 2030 initiative. The Republican senator from South Carolina had been critical of the Kingdom following the murder of journalist Jamal Khashoggi in 2018 and had previously vowed to boycott the country.
Regional developments
Saudi Arabia and the Houthis exchanged prisoners. More than a dozen Houthi detainees were freed by Saudi Arabia last Saturday ahead of a wider prisoner release agreed upon by the warring sides. In addition, a Saudi Arabian delegation was in Sana'a to engage in discussions with the Houthi rebels to secure a new and potentially long-lasting ceasefire.
Syrian Foreign Minister Faisal Mekdad visited Saudi Arabia, indicating the improving relations between the two Arab nations and the possibility of a reconciliation. In a joint statement, both countries declared their intention to reopen embassies and resume flights, marking the first time in over a decade since diplomatic ties were cut in 2012.
And lastly, news about the sport.
The International Fencing Federation has awarded Saudi Arabia the 2024 World Fencing Championship for Juniors and Youth. The championship is considered one of the major competitions in fencing.
Some brief E2E thoughts on last week
In the latest analytical piece, a question was posed whether the US will show greater interest in Saudi Arabia after the Kingdom established relations with the foes of the US and with the help of the main global competitor of the US. Indeed, last week top US officials, by a series of efforts, demonstrated goodwill to an extent perhaps unprecedented during the Biden era.
While the immediate strategic implications of these steps in enhancing Saudi-US relations remain unclear, they can be interpreted as the US' responsive measures to China's expanding influence in its ties with Saudi Arabia and the wider region.