Gulf

1. Saudi’s Nasrallah narrative
2. Israel shapes, Gulf waits
3. $250M for Saudi healthcare
4. Saudi FDI disappoints
5. Oman’s upgrade

Qatar — and Walter Isaacson — at the Riyadh book fair.

Saudi latches onto anti-Iran sentiment

Many Hezbollah members accused Iran of betraying longtime leader Hassan Nasrallah, a sentiment Saudi-backed media amplified in its coverage of Israel’s weekend assassination.

In an interview with Saudi state-owned Al Arabiya, an ex-colleague of Nasrallah’s said Shiites in Lebanon “have no trust” in Iran. “Iran’s primary concern is: the nuclear project,” he said, echoing a perception popular among both Hezbollah’s defenders and detractors. In the Saudi daily Okaz, one columnist likened Iran to a cliche about Persian rug dealers, who work on a carpet for decades but ultimately “sell it.”

Saudi outlets’ narrative offensive spotlights the kingdom’s decades-long rivalry with Iran, a battle which has forced Arab states to take sides. Saudi Arabia’s historically poor treatment of its own Shiite citizens — accusing many of spying for its foe — further highlights the geopolitical undertones of its media commentary.

The emphasis on Iran’s role, or lack thereof, in Nasrallah’s killing was not as prominent in the Arab world’s go-to channel for breaking news, Al Jazeera, whose Arabic-language station played archival material showing Nasrallah’s rise and focused on delivering straight news.

Gulf watches Israel shape a new order

As Israel upends the balance of power in the Middle East, Gulf countries will wait on the sidelines until a new order emerges, Al Arabiya’s Chief International Anchor Hadley Gamble writes in a Semafor column.

Calls for Saudi Arabia to step into the vacuum will soon arise, given its history in Lebanon, she noted. But that intimate knowledge will make the kingdom and other Gulf countries reluctant to engage. “History has shown there is no upside to Gulf involvement,” Gamble wrote. “The Gulf is resting on a lesson about throwing good money after bad, and will be content to abhor the method without engaging in the madness.”

Aster’s shot in the arm for Saudi Arabia

The amount Aster DM Healthcare’s Gulf unit plans to pour into a major expansion into Saudi Arabia over the next three to five years. “We are not only doubling down, we are tripling down,” Alisha Moopen, CEO of Aster’s GCC unit, told Bloomberg, adding that the UAE-based health care operator is aiming to have over 1,000 hospital beds, 180 pharmacies, and 25 medical centers in the kingdom.

The push piggybacks on Saudi Arabia’s Vision 2030, Crown Prince Mohamed bin Salman’s roadmap to drive private investment in economic diversification and attract expats. Saudi Arabia’s health care market is becoming increasingly competitive as a result: One health care provider recently raised $763 million in Saudi Arabia’s largest IPO this year, the Public Investment Fund is preparing to list the kingdom’s largest medical procurement firm, and another company borrowed $346 million to finance new health care facilities.

Foreign investors tepid on Saudi

Saudi Arabia will need to attract near-record levels of foreign direct investment in the second half of 2024 to meet its $29 billion target for the year, according to Bloomberg. Inflows for the first half of the year were $9.7 billion, data released Monday by the Saudi General Authority for Statistics showed. The kingdom aims to attract $100 billion a year in FDI by 2030 — a crucial component of its economic diversification plans — especially as oil prices remain far below the government’s break-even point of about $100 a barrel. Saudi Arabia recently revamped its investment laws and plans to streamline some bureaucratic processes in 2025 to entice foreign investors.

Oman’s debt is no longer junk

A major credit ratings agency upgraded Oman to investment grade, seven years after the country was consigned to junk status. S&P Global Ratings raised Oman’s credit rating to BBB- from BB+ with a stable outlook, citing improved public finances and lower debt levels among state-owned companies. The agency expects Oman to continue privatizing companies, shifting its role from “owner to regulator” to drive non-hydrocarbon private sector growth and attract foreign direct investment. S&P forecasts average annual GDP growth of 2% until 2027, with budget surpluses that help accumulate reserves and boost its sovereign wealth fund assets.

Finance

• ACWA Power, alongside PIF-owned Badeel, and Saudi Aramco Power Co., have secured $3.2 billion total investment in three domestic solar projects with a combined capacity of 5.5 gigawatts. — Arab News
• Abu Dhabi-backed ADNH Catering plans to proceed with an IPO on ADX next month, listing 40% of its share capital. — Zawya

Stats

• Saudi Arabian giga-project Diriyah awarded contracts worth nearly $1 billion to Italian and French companies, its CEO said without naming the firms. — Reuters
• Sharjah is amping up efforts to attract expats that have been priced out of Dubai, where rents for single family villas have soared 86% since the pandemic. — Bloomberg
• King Salman Energy Park has landed more than $3 billion in investments from over 60 investors.
• The UAE pledged a $100 million relief package to Lebanon. Hundreds of thousands of people have been displaced as Israel ramps up airstrikes in the country.

Risk & Diplomacy

• Saudi Arabia executed more than 198 individuals in 2024, an Amnesty International tally found. The human rights watchdog said it was the highest number of executions in the kingdom per year since it began recording in 1990.
• A seaport and power station in Houthi-controlled territory in Yemen were struck on Sunday, adding another country in Israel’s expanding campaign against Iran proxies.
• Israel’s and Lebanon’s airspace has been designated “high risk” by the European Union Aviation Safety Agency. Israeli airstrikes in Lebanon mark “a sharp escalation in the military activity that constitutes a threat to civil aviation.”

Out of Office

• This region is obsessed with scents — there’s even a joke among clerics that spending half your wealth on perfume isn’t profligate. Vendors will be happy with this plug at the Otor West Walk Oud & Perfume Exhibition in Doha this week.
• The NBA Abu Dhabi Games are back this weekend. Main draws are fan experiences with basketball legends and two exhibition games between Boston and Denver.
• AlUla, home to Saudi Arabia’s first UNESCO World Heritage Site, is hosting AlUla Skies Festival until Oct. 5, with hot-air balloons during the day, and stargazing and drone shows at night.

Qatar is the “guest of honor” at the Riyadh International Book Fair, one of many gatherings growing in size and ambition as the Gulf looks to buck a reputation for censorship and position itself as a crossroads of Arab culture and literary influence. Less than three years after Riyadh restored relations with Doha, Qatar’s Ministry of Culture and its publishing houses are presenting a diverse range of titles at the kingdom’s book fair, running through Oct. 5 at King Saud University.

If Qatar is the official guest of honor, then Walter Isaacson is perhaps the unofficial surprise guest. Saudi “podcast king” Abdulrahman Abumalih played host to the American biographer, according to a post on X, as he signed stacks of his Elon Musk biography, and tucked into slow-roasted lamb on his swing through Riyadh.

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