9 November 2017 Volume 1, Week 42 - 44 STRATEGIC SAUDI ARABIA UPDATE • Strategic Analysis • Insight News www.verocy.com SAUDI ARABIA STRATEGIC UPDATE Volume 1, Week 42 - 44 9 November 2017 STRATEGIC ANALYSIS .............................................................................................. 3 Arab Mirage or Facts, Future Investment Initiative 2017: Saudi Arabia’s future ............... 3 Trump Just Made Iran A Wildcard ................................................................................... 8 Oil Markets Fear Iraqi Escalation MBS strategy to be on track ....................................... 12 STRATEGIC INSIGHT NEWS ..................................................................................... 15 Saudi economic activity picking up: Al Rajhi .................................................................. 15 Saudi Arabia stays 2nd largest oil exporter to US .......................................................... 15 Hedge Fund: China’s Petro-Yuan Plan Could Upend Oil Markets ................................... 16 Saudi Arabia and Iraq launch body to promote deeper ties ........................................... 16 $1trn oil investments deferred, cancelled, says Saudi Aramco CEO ............................... 18 Riyadh commits $20bn to US-managed development fund .......................................... 18 Saudi Arabia announces $500 billion city of robots and renewables .............................. 19 Saudi public fund to double assets by 2020 ................................................................... 19 Saudi Crown Prince backs rollover of oil output cuts ..................................................... 20 EU under mounting pressure to ban arms sales to Saudi Arabia .................................... 21 Saudi Arabia to open secondary market to foreign investors ......................................... 22 Brent oil hits $60 a barrel on support for deal extension ................................................ 22 Saudi Arabia's standoff with Qatar could sink the Gulf region into a recession .............. 23 Saudi Arabia to boost spending next year in push to revive growth ............................... 24 Saudi Aramco backs investment into diesel engine ....................................................... 25 King Salman restructures CMA board ........................................................................... 26 BlackRock, Blackstone to open Saudi offices, says Prince Mohammad .......................... 26 DP World sees Jeddah as trade gateway for region ....................................................... 26 Saudi ministry, PIF plan to set up palm waste recycling firm ......................................... 27 DP World sees Jeddah as trade gateway for region ....................................................... 28 Tadawul inclusion into MSCI, FTSE Indices hinges on investor community, says El- Kuwaiz ......................................................................................................................... 29 US, Saudi Arabia join forces on public procurement reform .......................................... 30 Saudi Arabia: LNG ahead .............................................................................................. 30 Riyadh's retail sector forecast to lead real estate recovery .............................................31 Saudi Arabia seeks to cut wage bill but not salaries, says Al-Jadaan .............................. 32 Saudi privatization plans to start with railways, says Al-Amudi ..................................... 32 Saudis favour local sales as they plan to deepen debt markets ...................................... 33 About VEROCY SABIC chief calls for consolidation in Saudi petchems ................................................... 33 Verocy is a boutique consultancy that Saudi Arabia Gave Richard Branson $1 Billion to Go to Space........................................ 34 provides risk integrated strategy Saudi SABIC says it expects better Q4 in US market ..................................................... 35 services and solutions for companies and organizations that need to Saudi POS transactions up 6% in September ................................................................ 35 develop and manage the value of Saudi general reserves down by SAR 29 bln in Sept. ..................................................... 36 assets and resources in the MENA- National Water Co. takes over water distribution in Saudi Arabia .................................. 36 region. Saudi Arabia to extract uranium for a ‘self-sufficient’ nuclear program .......................... 36 Saudi Arabia will let women enter sports stadiums ........................................................ 37 For more information, please visit: www.verocy.com. F15 wings to be built in Saudi Arabia by Boeing............................................................. 38 Hisham: Malaysian forces to remain in Saudi Arabia ..................................................... 38 Riyadh residential market remains subdued in Q3, prices fall ........................................ 39 GCC sees $200bn construction boom in hotel projects .................................................. 39 UK financial watchdog denies government pressure over Aramco IPO .......................... 40 Saudi state-owned defence company SAMI taps Rheinmetall executive as CEO ........... 41 King Abdullah Port successfully completes first phase of electronic integration process with Saudi Customs ...................................................................................................... 41 Turkey’s Mapa wins $262m Saudi water project deal .................................................... 42 IMF endorses Saudi plan for US$500b business zone .................................................... 43 Saudi Arabia needs oil to trade at US$70 a barrel in 2018 to break even ........................ 43 IMF: Gulf States still committed to VAT but dates will vary ........................................... 44 Saudi defense company SAMI announces board chairman, CEO ................................... 44 FTSE Saudi Arabia Inclusion Index Series: Your Keys To The Kingdom .......................... 45 Saudi Arabia-Based Foodtech Startup Foodics Raises US$4 Million Series A Funding ... 46 Russian wealth fund to send business delegation to Saudi Arabia ................................. 47 Saudi Arabia to begin issuing tourist visas ..................................................................... 48 Saudi Arabia top reformer in the GCC last year, World Bank says .................................. 48 Saudi Arabia taps BofA banker for sovereign wealth fund job ....................................... 49 Saudi Arabia sets up new authority for cyber security ................................................... 50 Saudi Arabia ‘will stand resolute’ against Hezbollah ...................................................... 51 Ukraine interested in attracting investments from Saudi Arabia - Poroshenko .............. 51 UAE leads Gulf in World Bank’s ease of business ranking; Saudi top reformer ............... 52 RFP deadline for Saudi Arabia's first wind plant set on Jan. 25 ....................................... 52 South Korean firms to bid for Saudi nuclear reactors .................................................... 53 Former Barclays CEO eyes work with Saudi wealth fund ............................................... 53 Saudi Arabia to push back balanced budget target to 2023 -sources ............................. 54 Fitch affirms Kingdom’s outlook stable at ‘A+’ .............................................................. 54 Trump Urges Saudi Arabia To List Shares of World's Largest Oil Producer on NYSE...... 54 Saudi Arabia’s Economy by the Numbers...................................................................... 55 WHAT WE DO .............................................................................................................. 56 ABOUT THE EDITORS .................................................................................................. 56 SUBSCRIBTION INFORMATION ................................................................................... 56 About VEROCY Verocy is a boutique consultancy that provides risk integrated strategy services and solutions for companies and organizations that need to develop and manage the value of assets and resources in the MENA- region. For more information, please visit: www.verocy.com. 2 COMMENTARY 9 November 2017 ARAB MIRAGE OR FACTS, FUTURE INVESTMENT INITIATIVE 2017: SAUDI ARABIA’S FUTURE Saudi Arabia formerly known as one of the Hollywood party but a functional and rationally STRATEGIC toughest spots to do business, due to bureaucracy, organized get-together of like-minded people and ANALYSIS political unwillingness and corruption, has interested investors to get an overview and insight changed its face dramatically. Since 2015 the in the programs and projects linked to Saudi’s Kingdom has gone through a transformation main economic plans, called Saudi Vision 2030. process of unknown order, leaving almost all Arab During a three-day well organized conference and Gulf economies looking stagnant. Since the reign workshops, the forum brought together global of King Abdullah, when the first steps toward CEOs and investors with world-leading experts and economic diversification were set, the country has visionaries from a range of industries, to explore gone through a rollercoaster ride of economic the evolving