AGP Executive Report

Saudi-French Deals: Crown Prince MBS and President Macron extended the Saudi–France strategic partnership, signing 21 agreements including AlUla cooperation to 2035 and a €6bn plan for three theme parks near Paris (including a Dragon Ball Z site) expected to create 22,000 jobs. Energy & Trade Security: Riyadh and Paris urged a negotiated solution with Iran and called for normal navigation in the Strait of Hormuz, opposing any shipping fees as attacks and threats keep maritime routes under strain. Aramco-France Business: Saudi Aramco signed deals and MoUs with French firms worth over $3.7bn to strengthen supply chains, boost industrial AI and digital tech, and improve business continuity. Finance Markets: Al Salam Bank was appointed joint lead manager and bookrunner on SRC’s $2.75bn sukuk, underscoring Saudi momentum in GCC debt capital markets. Red Sea Risk: A tanker caught fire after an unknown projectile struck near Yanbu, adding to security worries for Saudi oil exports. Geopolitics Watch: The US unveiled “economic D-Day” sanctions to isolate Iran, while Pakistan’s army chief Asim Munir heads to Tehran to mediate amid threats to Gulf oil flows. STEM & Tourism: Mawhiba opened registration for the 2026 World Robot Olympiad, and Saudia launched up to 50% fare discounts to spur travel demand.

Red Sea Security: Houthis claimed they attacked a vessel off Saudi Arabia’s Yanbu, while UKMTO said a tanker was hit by an unknown projectile 63 nautical miles west of Yanbu, causing a fire; Saudi authorities have not confirmed the Houthi claim. Vehicle Recall: Saudi Arabia’s Ministry of Commerce recalled 84,639 Toyota Camry units (2025–2026) over an instrument panel defect that could disable warning lights, alerts and turn signals; owners can check VINs at Recalls.sa and get free software fixes via Abdul Latif Jameel. Iran Sanctions & Oil: Oil prices slipped even after US Treasury chief Scott Bessent flagged an “economic D-Day” on Iran; markets are watching the next sanctions details for supply risk signals. Shipping Rules: Iran says it has blacklisted 45 tankers for Strait of Hormuz violations, warning of fines, detention and cargo seizure—raising uncertainty for Gulf energy logistics. Saudi-France Business: Crown Prince MBS met Macron in France as talks focus on regional security, energy routes and investment, with new agreements expected. Aviation Training: flynas began building a Riyadh training center (SAR 200m+) with capacity for about 700 trainees daily, targeting a 2028 opening.

Saudi-France Business Push: Paris hosts a French-Saudi Investment Roundtable during Crown Prince MBS’s visit, with talks expected to cover industrial partnerships, transport/logistics, AI and digital infrastructure, alongside energy-supply diversification. Red Sea Oil Disruption: Saudi oil logistics are again roiled by Houthis’ Red Sea threat, forcing more rerouting as tanker traffic and insurance costs stay under pressure. Hormuz Pressure on Shipping: Iran’s Persian Gulf Strait Authority issued a “Non-Compliant Vessels” list, warning of fines, detention and seizure, as commercial traffic through Hormuz remains sharply reduced. Mecca Pact Expansion Talk: Iran says it has received an invitation to join the Saudi-Pakistan-Turkiye Mecca joint defence framework and is considering it, while Bangladesh signals openness to joining. Regional Diplomatic Moves: Pakistan’s Army Chief Asim Munir is set to visit Tehran to discuss peace and security amid rising US-Iran sanctions threats. Visa Services: Saudi Arabia opened a Tasheer visa center in Damascus to handle visa applications and related cargo/passenger services. Energy/Storage Deals: Saudi Energy signs multiple battery storage agreements, including a $283m Al-Muwaih project. Digital Economy: Saudi CST publishes its 5th Digital and Space Sustainability report, reinforcing the Kingdom’s push in ICT and sustainability.

Franco-Saudi Business Push: Saudi Crown Prince Mohammed bin Salman is in Paris for talks with President Emmanuel Macron, with a Saudi-French investment roundtable on Monday expected to drive deals in health, transport, energy, aerospace and AI, plus a first meeting of the Franco-Saudi Strategic Partnership Council. Makkah Defence Pact: Commentary and reporting keep spotlighting the Saudi-Türkiye-Pakistan “Makkah” joint defence framework as a potential shift toward a more autonomous regional security order, with deterrence and logistics routes like the Strait of Hormuz in focus. Iran Sanctions Shockwaves: Gulf markets rose as oil climbed on fears of tougher US economic sanctions on Iran; Iran’s security chief also warned of “seismic” retaliation and threatened to disrupt oil flows if neighbours join the sanctions. Energy Innovation: Saudi Arabia launched its inaugural “Ignite Your Ideas” energy hackathon at KAPSARC, running Oct 7–9, targeting grid stability, hydrogen storage and smarter fuel stations ahead of WPC Energy Congress. Tech & Investment Spotlight: LEAP 2026 in Riyadh (Aug 31–Sep 3) is set to draw $14.3tn in investor assets, while Saudi Arabia was ranked top globally in the ITU ICT Development Index, underscoring its push for digital regulation and space sustainability.

Green Hydrogen Push: Saudi Arabia has completed the world’s largest green hydrogen plant under NEOM, moving into commissioning with commercial output targeted for 2027 and ammonia exports in sight. Maritime Security & Water Links: GCC water interconnection is getting fresh urgency as Gulf states look to diversify supplies beyond the Arabian Gulf, while shipping firms keep rerouting around Red Sea chokepoints amid ongoing risks. Iran Pressure & Hormuz Fallout: Iran’s new security chief warns neighbours against joining US efforts to squeeze Tehran, while Egypt seeks to revive Iran–US talks and Iraq/Iran say Iraqi oil shipments have transited Hormuz. Regional Defence Signals: Bangladesh says it is open to joining the Saudi–Pakistan–Türkiye “Makkah” defence framework, stressing decisions will follow “Bangladesh First” national interests. Saudi Trade & Security: Saudi Customs reported 1,039 contraband seizures last week, including narcotics, tobacco and cash, as ZATCA urges public reporting. Aviation Connectivity: Delta is set to launch ultra-long-haul Atlanta–Riyadh flights later this year, adding another link to Saudi’s growing air network.

GCC Condemns Israel’s E1 Plan: The GCC, Arab-Islamic states and Western allies stepped up criticism of Israel’s West Bank settlement expansion, warning the E1 project could derail Palestinian territorial contiguity and the two-state path. Hormuz Pressure on Energy Markets: Oil and LNG prices moved on fears of tighter supply as the US escalated economic threats on Iran; Asian spot LNG hit a five-month high amid an Hormuz impasse. Qatar Budget Cuts: Qatar slashed department budgets by up to 30% and cut overseas aid by about 85% after war damage and LNG disruptions hit revenues. Saudi-France Strait Talks: Saudi Crown Prince Mohammed bin Salman heads to Paris to sign deals and discuss alternative routes to the Strait of Hormuz, including ports, pipelines and rail. Aramco Off-Hormuz Sales: Saudi Aramco sold at least four million barrels of crude to Chinese refiners for loading outside Hormuz via ship-to-ship transfers off Fujairah. Saudi Capital Markets: Saudi Vitrified Clay Pipes filed with the CMA to cut capital to offset accumulated losses, trimming SAR150m to SAR45.43m. Saudi-Iraq Logistics: Iraq began using the UN-backed TIR transit system for the first time, with cargo moving from Saudi Arabia via Arar toward Central Asia. Pakistan-Saudi Air Connectivity: Fly Jinnah plans Karachi–Riyadh direct flights from Sept 18 (three weekly, then daily from October), boosting business and pilgrimage travel links.

Oil & Sanctions: Oil prices rose after Trump threatened sweeping economic sanctions on Iran’s trading partners, lifting Brent to $94.39 and WTI to $87.06 as markets brace for tighter supply and shipping disruption. Saudi-Iraq Energy Talks: Saudi Energy and Industry Minister Prince Abdulaziz bin Salman and Finance Minister Mohammed Al Jadaan met Iraq’s finance and oil ministers to strengthen energy security and stability of supplies. Mecca Defence Pact Expansion: Syria is reviewing whether to join the Saudi-Pakistan-Türkiye Mecca joint defence agreement, while Bangladesh signalled openness to a wider framework. Middle East Security & Trade Risks: Regional ministers condemned Israel’s E1 settlement plan and called for halting settlement activity, warning it threatens Palestinian state contiguity and regional peace. GEPCO Privatisation: Pakistan’s Privatisation Commission said 11 investors submitted EOIs for GEPCO, including Saudi firm Al Sharif Contracting and Commercial Development, with bids now moving to evaluation. LIV Golf Funding Fallout: A Financial Times report links Sergio Garcia’s Masters outburst to PIF’s decision to stop LIV funding, as the league faces uncertainty over future financing. Saudi Sports Note: Al Hilal issued an official statement on Malcom’s contractual settlement and next steps.

Saudi Economy & Finance: Saudi Arabia’s Q2 contraction and the latest move to tighten bank transfers to the UAE underline how regional frictions are feeding into domestic financial conditions. Energy & Trade: Oil prices are set for a second weekly rise as US-Iran tensions disrupt supply, with Hormuz and wider shipping risk still driving market nerves. Payments & Digital Finance: Indonesia’s QRIS hit 65.77m users and 44.86m merchants, a reminder of how fast digital payments are scaling across the region. Aviation & Connectivity: Riyadh Air keeps expanding ties, including cooperation with ANA on network development and new connectivity moves. Mining & Investment: Saudi Gold Refinery signals interest in Tanzania’s mining sector, while Aramco and Maaden push ahead with a Saudi minerals exploration JV. Logistics & Infrastructure: Saudi Arabia’s indoor entertainment buildout and major supply-chain events in Riyadh point to continued capex momentum. Sports Business: Al-Hilal’s pursuit of a Benzema replacement, with Ollie Watkins in focus, shows Saudi clubs’ ongoing spending push despite wider market uncertainty.

Oil & Shipping Risk: Brent is set for a second straight weekly rise as the stalled US-Iran standoff keeps supply disruptions alive, with markets watching the Strait of Hormuz and wider Middle East shipping stress. Yemen Security & Energy: Houthis claim drone strikes hit Najran airport and an Aramco facility, while reports say they plan to tighten control around Bab el-Mandeb by expanding along Yemen’s coast and targeting key islands/ports—raising the odds of more Red Sea disruption. Saudi Economy & Trade: GAFT launched an anti-dumping probe into multi-layer coated cardboard imports from India and China, aiming to protect local producers from dumped/subsidised inflows. Saudi-Linked Labour & Repatriation: Pakistan says 21,951 nationals have been deported from Gulf states since March 2026; separately, six injured Pakistani sailors from a Houthi attack were returned, with two bodies repatriated, with Saudi MFA support cited. Regional Diplomacy: Japan and Oman agreed Strait of Hormuz talks should involve the international community, including users of the waterway, as they push for safe, free navigation. Power Projects: Doosan Enerbility won a $683m Oman gas power plant EPC contract, citing execution experience in Saudi and Qatar.

Saudi Economy Watch: GASTAT said Saudi operating revenues rose 6.1% y/y in June, helped by manufacturing (+16.9%) and financial/insurance (+16.9%), while building permits jumped 20.3%—a sign the non-oil economy is still finding momentum. Charity & Digital Governance: A Royal Order will turn the “Ehsan” charitable platform into the independent Ehsan Foundation, after it processed 440m donation transactions worth SR17bn. Healthcare Retail Deal: Cosmos Health secured an exclusive distribution agreement with Innova Healthcare for its Sky Premium Life supplements, starting with 126,000 units across 250+ pharmacies. Trade & Food Security: Pakistan and Saudi Arabia plan to deepen agriculture and food trade, targeting meat, rice, processed foods and animal fodder via market linkages and investment. Maritime/Geopolitics: With Hormuz disruption still shaping flows, Gulf states push for a temporary deal to restore shipping, while Houthi claims add pressure on Saudi oil logistics. Business & Investment: Diriyah Company completed the Ministry of Culture’s move to its new HQ, reinforcing Diriyah’s push as a culture-and-governance hub.

LIV Golf Funding Crunch: LIV CEO Scott O’Neil says the league has a “very compressed timeline” to secure a new lead investor and will need player buy-in for a 2027 plan that restores equity and commercial rights, as the Saudi PIF exits after this season and uncertainty grows over pay and even survival. PGA Tour Return Debate: Rory McIlroy questions what LIV stars like Rahm and DeChambeau would add to the PGA Tour, while Scottie Scheffler is more open to returns with penalties. Saudi Maritime Security: Qatar’s PM Sheikh Mohammed met Saudi FM Faisal bin Farhan in Riyadh, stressing de-escalation and safeguarding navigation in the Arabian Gulf and Red Sea as regional tensions tied to Iran-US conflict persist. GCC Ports Integration: Saudi MoT joined the 39th GCC port authorities meeting in Riyadh to push uniform vessel licensing, green shipping corridors, and resilience for navigation services. Amaala Investment: Red Sea Global says it has invested SAR51.04bn (US$13.6bn) in Amaala phase one, with nine luxury wellness resorts opening as the ultra-luxury destination ramps up. Saudi Economy Watch: Saudi Arabia’s stock index edged up while broader Gulf markets fell amid missile-related jitters and regional risk.

Maritime Security & Energy Routes: Iran-linked pressure on the Strait of Hormuz and Bab el-Mandeb is pushing Gulf states toward alternative export routes, while Saudi Arabia’s 14-state Multinational Maritime Defense Alliance is set to be headquartered in Riyadh to protect navigation and trade. Oil & Shipping Impact: With Hormuz traffic collapsing and regional attacks continuing, oil prices are rising and refined-product supply remains tight, keeping downstream costs under pressure. Saudi Business & Investment: Aramco and Maaden are moving ahead with a mineral exploration venture covering nearly 10% of Saudi land, targeting copper and other EV/energy minerals. Finance & Regulation: Saudi Arabia has tightened scrutiny of bank transfers to the UAE amid growing regional tensions. Corporate/Tech Deals: Arabian Drilling signed an Oman offshore contract with Masirah Oil for up to four wells, while Mindware showcased AI and cloud offerings at LEAP 2026. Digital Economy: Oman’s e-invoicing push is framed as a major step in its digital tax modernization, echoing regional momentum. Sports Business: Saudi Pro League spending is increasingly attracting prime-age talent, with reports linking Ollie Watkins to Al-Hilal.

Maritime Security: Saudi Arabia has activated its multinational maritime defense alliance, with the Cabinet citing repeated Iranian attacks on commercial shipping as a “dangerous escalation” and a threat to freedom of navigation through the Strait of Hormuz. Oil & Shipping: As Hormuz tensions keep tanker traffic thin, Saudi Aramco resumed oil loadings from inside the strait, offering heavy crude spot cargoes to Asian refiners; meanwhile, shipping incidents continue to be reported around Yemen and Oman. Financial Transfers: Saudi regulators have tightened scrutiny of financial transfers to the UAE, with businesses reporting weeks-long payment delays after SAMA flagged the UAE as a high-risk jurisdiction for enhanced checks. Energy Markets: Oil prices rose toward three-week highs as US-Iran peace hopes faded and Hormuz disruption risk stayed elevated. Mining & Metals: Sierra Nevada Gold expanded drilling targets at its As Safra copper-gold project in Saudi Arabia after high-grade rock-chip results, with Phase 2 drilling expected to start within eight weeks. Sports Business: LIV Golf’s Michigan team event was cancelled amid funding stress and lawsuits, while the league also cut purses and faces further uncertainty.

Maritime Security: Saudi Arabia’s Cabinet has activated the Saudi-led Multinational Maritime Defense Alliance, with Riyadh as the operational hub, aiming to protect freedom of navigation and trade routes as it condemns repeated Iranian attacks on commercial shipping. Red Sea Trade: Saudi Ports Authority (Mawani) added PIL’s intra-Red Sea feeder service to Jeddah Islamic Port, boosting connectivity with Egypt’s Sokhna and Safaga and supporting the National Transport and Logistics Strategy. Hormuz Shock Watch: Fresh reports say a projectile hit a vessel transiting the Strait of Hormuz, while Iran says the strait will stay closed until US demands are met; oil prices stay elevated as markets price prolonged disruption. Saudi-UAE Rift: Saudi Arabia has reportedly tightened oversight on UAE-bound bank transfers, delaying or returning payments for some firms and deepening the Gulf dispute. Markets & Funds: SAB Invest launched a new shariah-compliant Global Select Equity Fund for global growth themes like AI, cloud and semiconductors. Tourism Resilience: TOURISE and Oxford Economics say destinations that act early recover faster, with Gulf hubs facing disruption-driven demand swings.

Red Sea Security & Shipping: Iran’s “fully offensive” posture and the expired US-Iran MoU are keeping Strait of Hormuz and Bab el-Mandeb traffic under pressure, pushing oil prices above $90 and reviving talk of alternative export routes, while Saudi-led efforts to protect navigation continue to shape regional trade costs. Regional Defence & Diplomacy: Pakistan’s PM Shehbaz welcomed Trump’s support for the Makkah Joint Defence Agreement, framing it as a step toward wider regional stability and cooperation. Saudi Regulatory Move: Saudi Civil Defence says third-party cooperative insurance is now required for licensing and renewals of certain high-risk, densely populated activities, aiming to reduce accident risks and compliance gaps. Energy & Industry: Ma’aden earnings get a boost from aluminium, while Saudi Aramco remains in the spotlight amid renewed Red Sea and Yemen-linked threats. Aviation & Connectivity: Riyadh Air begins/expands Pakistan services with inaugural flights and new direct routes, strengthening people-to-people and business links. Business Finance: Saudi PIF-backed LIV Golf cancels its Michigan team championship early, underscoring funding and restructuring pressures in sports investment. Hajj/Umrah Rules: Pakistan warns Hajj pilgrims in Saudi Arabia against begging and unauthorised money collection, aligning with Saudi visa and crowd-management rules.

Red Sea Security: Yemen’s Houthis claimed they hit Saudi naval vessels and a weapons depot in Marib with missiles and drones, as Saudi authorities have yet to confirm details; the claims come amid a wider Red Sea escalation and growing shipping disruption risk. Hormuz Pressure & Oil: Oil prices edged up as Iran paused US talks and shipping through the Strait of Hormuz stayed restricted; traders are watching the 60-day MoU deadline fallout and whether any sea-route arrangement emerges. US-Iran Diplomacy Clash: Trump renewed threats against Oman if it interferes with US-Iran negotiations, while Iran signalled a “fully offensive” shift and warned it expects Washington to implement the MoU terms within weeks. Saudi Logistics & Trade: Riyadh will host the second Global Logistics Forum (29 Nov–1 Dec 2026), co-located with UNCTAD’s Global Supply Chain Forum, aiming to reinforce Saudi Arabia’s Vision 2030 push as a logistics hub. Tourism Resilience: TOURISE and Oxford Economics released a report arguing destinations that prepare early recover faster from repeated shocks—relevant for Gulf hubs facing ongoing disruption. Saudi Capital Markets/Finance: Saudi Arabia’s regulator is probing investment banks over stock market listing performance, adding pressure on how deals are structured and priced. Hajj Services: Saudi-linked Hajj accommodation rules were updated for the 2027 season, while Qatar’s PHCC opened applications for Hajj medical fitness certificates.