AGP Executive Report

Security Watch: Saudi Arabia says it expects imminent coordinated attacks by Iran-supervised Iraqi militias and Yemen’s Houthis, warning energy infrastructure, ports and airports could be targeted, as drones and missiles are reportedly being moved from both north and south. Border Fallout: In Najran, the Saudi-led coalition says Houthi attacks wounded 11 civilians, including a 4-year-old, while Yemen’s Houthis also claimed deadly strikes on government forces in Marib and Hadramout. Energy & Shipping: Oil jumped more than $3 a barrel as Hormuz-related risks and Iran’s push to restrict hostile vessels stirred traders, while Saudi tanker rerouting and a brief Strait of Hormuz opening are reshaping crude flows. Diplomacy: Turkey’s Erdogan is set to visit Saudi Arabia for talks with Crown Prince Mohammed bin Salman and Pakistan’s PM Shehbaz Sharif amid wider regional mediation efforts. Economy & Daily Life: Knight Frank reports Saudi retail and F&B spending stayed resilient in H1 2026, with consumer payments and e-commerce still growing. Infrastructure: Saudi Arabia opened the 246-km Rafha–Hail Road to boost land connectivity for pilgrims and logistics. Nuclear Safety: Qatar and Saudi Arabia signed an MoU on nuclear safety and radiation protection cooperation.

Red Sea Security: Saudi Arabia appointed Rear Admiral Abdullah bin Salem Al-Shehri to lead a new multinational maritime defense coalition aimed at protecting key shipping routes around the Bab al-Mandeb, the Red Sea and the Gulf of Aden, with more countries completing joining procedures and a planners’ meeting set for Aug. 12-13. Gaza Diplomacy: Turkey and seven other countries, including Saudi Arabia, condemned Israel’s attacks on Gaza healthcare and civilian infrastructure, warning they breach international law and could derail the Gaza peace plan’s next phase. Iran-Gulf Pressure: Iran’s foreign minister Abbas Araqchi warned Gulf states that Tehran would target oil, power and water infrastructure unless Washington’s strikes end, as negotiations around a Strait of Hormuz arrangement with Oman continue. Saudi-Iraq Ties: Iraq said its border with Saudi Arabia saw no breaches or smuggling for a second straight year, while Iraq’s ruling coalition met amid financial and security strains linked to regional tensions. Pakistan Visit: Pakistan’s PM Shehbaz Sharif and army chief Asim Munir are set to visit Saudi Arabia Aug. 6-8 for talks with Crown Prince Mohammed bin Salman. Jobs Platform: Saudi Arabia launched a new official website to help foreigners find jobs and relocate using a skills-based search.

Red Sea Security: Yemen’s Houthis claimed they struck Saudi oil tankers in the Red Sea and Gulf of Aden, including a ballistic missile attack that they said forced a tanker to turn back, as Saudi-linked shipping faces renewed disruption. Saudi Air Operations: Najran Airport suspended flights after a retaliatory drone strike damaged its main radar system, with operations listed as “unknown.” Hormuz Tensions: Iran warned Gulf states it would retaliate if the US targets Iranian infrastructure, while US officials said a Strait of Hormuz reopening deal could be announced “today or tomorrow,” adding pressure to global energy markets. GCC Counter-Terrorism: Qatar joined a GCC meeting in Riyadh on the Unified Terrorist List, reinforcing regional coordination on counter-terrorism. Saudi Economy & Investment: Uganda urged stronger Saudi trade and investment ties, pitching agro-processing, tourism, mining, and digital infrastructure opportunities. Sports (Saudi-linked): Newcastle confirmed Matthias Jaissle as head coach after Eddie Howe’s exit, with Saudi club Al Ahli’s success in Asia tied to his recent profile. Tech/Policy: A debate on Saudi “AI ministry” branding argued titles alone don’t build real capability.

Red Sea Security: Houthis claimed they hit Saudi oil tanker “Wafaa” off Yanbu with ballistic missiles, vowing to intensify attacks as they say Saudi rerouted tankers to the northern Red Sea. Hormuz Talks: US President Donald Trump said a deal to reopen the Strait of Hormuz could come as early as Wednesday, with Iran-Oman arrangements discussed; sources also say the proposal would avoid transit fees. Saudi Investment Push: Saudi Arabia climbed to 13th globally for FDI inflows in 2025, pulling in SR136bn, as Vision 2030’s investment drive gathers pace. EA Takeover: Electronic Arts has been taken private in a $55bn Saudi-led consortium deal led by PIF and Jared Kushner’s Affinity Partners, raising questions about debt-driven cost cuts. Retail Pulse: Saudi POS spending jumped 33% week-on-week to SR16.31bn, with food, beverages, and restaurants leading transactions. Tourism & Pilgrims: Makkah and Madinah ranked among the world’s top visitor cities in 2025, with Umrah arrivals up 114% since 2022. Health Care: KFSH cut hospital stays for eligible children after minimally invasive congenital heart surgery by 44%. Weather Watch: Thunderstorms and extreme heat with dust and strong winds were reported across parts of Saudi Arabia.

Hormuz Diplomacy: US Treasury Secretary Scott Bessent said a Strait of Hormuz deal with Iran could be reached “today or tomorrow,” while Qatar says mediation is progressing and draft terms are being exchanged—yet shipping remains disrupted amid fresh attacks. Red Sea Security: Saudi Arabia is reportedly seeking behind-the-scenes diplomacy with Yemen’s Houthis via Omani mediators while still preparing military options to protect Red Sea oil exports and ports. Aramco Earnings: Saudi Aramco posted a 44% jump in Q2 net profit to $32.69bn, citing higher oil prices and rerouted shipments, but warned global inventories remain depleted and replenishment could take up to 18 months. Saudi Housing Policy: The Cabinet approved a framework letting investors build housing for developmental beneficiaries in return for owning part of the land, plus a one-year extension to fix undocumented real estate deals. Riyadh Air Expansion: Riyadh Air will start daily Manila–Riyadh flights from Sept. 9, using Boeing 787-9s. Tech & Smart Cities: Naver says it’s exporting its robot platform to Saudi Arabia, with field trials underway and plans to showcase an outdoor autonomous robot in Riyadh this November. Sports & Culture: The Gulf Club Champions League draw is set for Aug. 24, and Saudi Arabia’s entertainment sector reportedly drew 45.7m visitors.

Middle East Security: Yemen’s Houthis again claimed drone strikes on Saudi Arabia, including Najran Airport, as the Red Sea and Strait of Hormuz tensions keep shipping and regional stability in the spotlight. Energy & Trade: Saudi Aramco reported adjusted Q2 net income of $33.4bn and said it’s studying new export routes and possible East-West Pipeline expansion after disruptions tied to Hormuz and Red Sea pressures. Diplomacy Watch: US-Iran talks remain disputed, with Qatar mediating while Washington signals a possible near-term Hormuz breakthrough. Local Economy & Jobs: CEER localisation deals were announced with major projected economic benefits and job creation. Business & Investment: SAL Logistics completed a $32m acquisition of Belgium’s Aviapartner Liège to expand cargo handling in Europe, while EFG Hermes topped brokerage rankings across multiple MENA markets. Aviation & Tourism: Riyadh Air announced daily Riyadh–Manila flights starting Sept. 9, boosting Saudi-Philippines travel links. Trade Remedies: Saudi Commerce imposed final anti-dumping duties on Indian cast-iron hollow pipes for five years.

US-Iran Tensions: Trump says talks are “going on right now” and gives Iran a “last chance” to reach a deal, warning of “decapitation” if it fails—while Iran’s foreign ministry denies any US negotiations and says discussions are only with Oman over a temporary Strait of Hormuz shipping route. Hormuz Shipping Dispute: Iran’s senior advisor Mohsen Rezaee rejects any unauthorized corridor and threatens to target US warships if they enter via routes other than Iran’s designated one; meanwhile, the UAE has cut Hormuz oil exports by more than half in July as traffic disruptions persist. Oil Markets: Oil prices bounced after the strike pause but remain fragile as supply risks and diplomatic uncertainty continue. Saudi Pilgrimage Update: Saudi Arabia’s Pilgrim Experience Programme reports 19.5 million pilgrims and Umrah performers in 2025, with satisfaction rates hitting 91% for Haj and 94% for Umrah performers. Aviation: Riyadh Air launches direct Riyadh–Kuala Lumpur service, starting a new Southeast Asia gateway. OPEC+ Decision: OPEC+ agrees to raise September output by 188,000 bpd, even as Hormuz risks cloud near-term supply.

Red Sea Shipping Watch: Two tankers carrying Saudi oil crossed Bab el-Mandeb over the weekend as traffic through the Strait of Hormuz slowed amid renewed vessel-attack fears, with data showing fewer commodity ships passing and some tankers switching routes around the region. Yemen Front: Reports of Saudi preparations for operations against Yemen’s Houthis are reviving concerns about a possible ground escalation, though coverage points more to contingency planning and force repositioning than a confirmed invasion. Iran-US Talks: Trump said US-Iran talks to wind down the war will begin Monday after he paused “massive” strikes, while Iran denies direct negotiations with Washington and says discussions are with Oman over a temporary Hormuz shipping route. Oil Markets: OPEC+ approved a 188,000 bpd production increase for September, extending its rollback of 2023 voluntary cuts as markets react to shifting Middle East risk. Saudi Weather: High heat and dust are forecast across parts of Saudi Arabia, including Riyadh and Makkah, with possible thunderstorms in the south.

US-Iran Diplomacy: President Donald Trump said new negotiations with Iran will start Monday, after he called off a planned “massive attack” and pointed to Saudi Arabia, the UAE and Qatar urging restraint. Talks are set to cover reopening the Strait of Hormuz and Iran’s denuclearization. Strait of Hormuz Volatility: Iran says talks with Oman on managing a new shipping route are in “final stages,” while UKMTO reported an explosion near a tanker off Oman; crew were safe and authorities are investigating. Saudi-Iran De-escalation: Saudi Foreign Minister Prince Faisal bin Farhan and Iran’s Abbas Araghchi discussed steps to reduce tensions and protect freedom of navigation in the Gulf and Red Sea. Oil Markets: OPEC+ approved a September rollback of “voluntary” cuts, adding about 188,000 bpd, as Brent and WTI slid on the renewed diplomacy; gold rose as Iran talks eased rate-hike concerns.

Saudi-US De-escalation Talks: Saudi Crown Prince Mohammed bin Salman urged Trump to avoid wider escalation with Iran, after which Trump said planned strikes were halted “subject to” a rapid deal that would reopen the Strait of Hormuz; Iran meanwhile warned of a decisive response if the diplomatic understanding collapses. Diplomatic Calls Across the Region: Qatar’s PM and foreign minister held calls with Saudi and Kuwait and stressed dialogue, while US embassies in several Middle East countries urged Americans to “consider departing” amid heightened escalation risk. Oil Market Move: OPEC+ agreed to raise September production by 188,000 barrels/day, continuing the gradual unwinding of 2023 cuts as shipping disruptions tied to the Iran conflict keep pressure on energy flows. Saudi Economic Snapshot: The IMF said Saudi Arabia’s economy has shown resilience during the Middle East war, but warned growth and diversification remain vulnerable if Strait of Hormuz disruptions persist. Regional Security Focus: Reports also highlighted Saudi-led efforts to strengthen maritime security as tensions around Red Sea shipping and Bab el-Mandeb continue to loom.

US-Iran Tensions: Iran’s foreign minister Abbas Araghchi warned Saudi Arabia and other regional partners that any “adventurous action” by the US would trigger a decisive, proportionate response, as Washington weighs further strikes and State Department alerts urged Americans across 10 Middle East countries—including Saudi Arabia—to be ready for flight cancellations and possible airspace closures. Saudi-US Defense Ties: Saudi Assistant Minister of Defence Dr Khalid Al Biyari visited the US to expand cooperation in defence industries, technology transfer and regional security. Red Sea Security: Saudi Arabia is pushing a multinational maritime defence coalition to protect shipping through Bab al-Mandab amid Houthi threats and blockade claims, with reports saying Riyadh is also preparing for a wider push against the Iran-backed Houthis. Saudi Economy & Society: Saudi authorities reported a major crackdown on residency and labour violators, while Saudi weather forecasts flagged dust, rain and rising temperatures. Sports & Culture: Qatar drew Group C for the FIBA U-18 Asia Cup with China and Iran, and Saudi football saw Al-Ahli close in on a right-back signing.

Red Sea Security: Saudi Arabia has launched a 14-nation maritime defence coalition to keep shipping moving through the Red Sea, Bab el-Mandeb and the Gulf of Aden, with Bangladesh among the confirmed members, after Houthi attacks disrupted energy exports. Saudi-Iran Tensions: Iran warned against “fire of war” as US strike threats on energy sites grow, while Saudi officials push for de-escalation amid fears the conflict could widen. Saudi-Kuwait Trade Links: Saudi Arabia and Kuwait advanced customs data exchange and railway cooperation, with milestones on track for completion before end-2026. Nuclear Deal Fallout: Analysts say the Saudi-US civil nuclear “123 Agreement” could boost long-term tech and industrial investment, but also raises strategic stakes as nuclear competition intensifies. Gaza Diplomacy: Saudi Arabia and Bahrain welcomed Trump’s announced Gaza disarmament deal, stressing full implementation, Israeli withdrawal, humanitarian access and a political path to Palestinian statehood. Local Life & Heritage: Historic wells in Saudi’s Northern Borders show how water sustained desert communities, with traditional sites still drawing attention as temperatures rise.

Red Sea Security: Saudi Arabia is pushing a major 14-nation maritime defence alliance to protect Red Sea shipping and the Bab el-Mandeb after repeated Houthi threats and attacks, with Riyadh set to lead and host the effort. Houthi Claims: The Houthis’ maritime coordination body denied plans to charge fees for ships transiting Bab el-Mandeb, insisting passage remains free and warning against unauthorized payments. Middle East Escalation: The White House signaled Trump is weighing new strikes on Iran as Iran-linked attacks continue, while U.S. and Saudi actions in Iraq target Iran-backed militias tied to drone attacks on Saudi infrastructure. Shipping Risk: A drone strike damaged two tankers in Egypt’s Damietta area, raising fresh concerns for oil transport security and the Suez Canal route. Umrah Update: Saudi Arabia introduced a one-year multiple-entry Umrah visa for eligible pilgrims worldwide, valid for 365 days with a 90-day total stay cap and suspension during Hajj. Humanitarian Spotlight: Conjoined Fijian twins arrived in Riyadh for evaluation for possible separation surgery at King Abdullah Specialist Children’s Hospital.

Red Sea Security: Saudi Arabia has unveiled plans for a Saudi-led maritime defense coalition to protect shipping through the Bab el-Mandeb Strait, the Red Sea and the Gulf of Aden as Houthi threats disrupt oil routes; a meeting in Riyadh drew representatives from 43 countries plus the EU, and 14 nations backed the initiative, with Riyadh set to host the coalition’s headquarters and key command centers. Yemen Escalation: Yemeni sources say Riyadh is preparing a major sea-and-possibly-land offensive against the Houthis, with troop movements pointing toward al-Bayda as a potential target. Energy Markets: Oil prices eased as shipping flows through key chokepoints improved, but the coalition announcement underscores how quickly Red Sea risk can swing prices. Regional Military Coordination: Gulf security cooperation continues alongside the maritime push, including Bahrain’s “Bahrain Shield” exercise that involved Saudi forces. Saudi Economy & Investment: The EU approved Saudi PIF’s $55bn acquisition of Electronic Arts under subsidy rules, with the deal expected to close next week. Sports & Hosting: Saudi Arabia confirmed as host for the next three AFC Champions League Elite finals through 2029.

Red Sea Security: Saudi Arabia hosted talks with chiefs of staff from 43 countries and the EU to build a multinational maritime defence alliance to protect Bab al-Mandeb, the Red Sea and the Gulf of Aden as Houthi attacks disrupt shipping and energy routes. Regional Diplomacy: Pakistan said Iran-US talks are ongoing despite renewed strikes, while Iraq denied it had approved or had prior knowledge of US-Saudi strikes on its soil, and asked Riyadh for details. Middle East War Update: The US and Iran traded missile barrages as the conflict widens beyond Iraq, with reports of drone damage at Egypt’s Damietta port raising fresh concerns for Suez-linked trade. Nuclear Debate: Saudi-US nuclear cooperation drew fresh scrutiny over safeguards and enrichment controls, with commentary arguing the deal’s non-proliferation protections remain unclear. Business & Markets: Electronic Arts is set to close its $55bn go-private deal next week, while Spinneys increased its stake in its Saudi unit as it targets a younger, more affluent shopper base. Sports: Saudi Arabia secured hosting rights for the next three Asian Champions League Elite finals.

Regional Security: Saudi Arabia condemned Iran’s continued attacks on Jordan, urging an immediate halt to violations of international law and stressing solidarity with Amman. Red Sea Shipping: Riyadh is pushing for an international coalition to protect Red Sea trade from Houthi threats, after the group announced a maritime embargo and floated possible ship fees near Bab al-Mandeb. US-Iran Escalation: The US and Iran traded missile barrages again, with Saudi Arabia openly joining strikes on Iran-linked targets in Iraq as diplomacy stalls and fears of wider spillover grow. Suez Canal Risk: A drone strike sparked a fire on two gas vessels at Egypt’s Damietta port near the Suez Canal, raising fresh concerns for navigation and Saudi oil export routes. Saudi Economy: Saudi GDP contracted 4.9% in Q2 and entered technical recession, with oil activity hit hard by the regional war. Sports: Eddie Howe stepped down as Newcastle boss, with Saudi club Al-Ahli coach Matthias Jaissle emerging as a leading successor.