Macron Lands in Riyadh

French President Emmanuel Macron made a surprise visit to Riyadh on Wednesday, becoming the first Western leader to visit Saudi Arabia since Houthi attacks intensified earlier this month.

His arrival came with more than a diplomatic message: France has already deployed defensive capabilities to support the Kingdom and is offering help to secure one of its most critical oil export routes.

The Visit: Macron landed at King Khalid International Airport, which has faced repeated attacks, before meeting Crown Prince Mohammed bin Salman. The stop followed visits to Kuwait, the UAE, Bahrain and Qatar, where the French president sought to strengthen defence partnerships and secure energy supplies.

Whether his flight to Riyadh required special security arrangements or clearance beyond normal procedures has not been disclosed.

Macron confirmed that French personnel and defensive capabilities have been deployed for eight days. Paris has also proposed helping rehabilitate and protect Saudi Arabia's East-West oil pipeline, which carries crude from the Gulf coast to the Red Sea port of Yanbu and has suffered damage from Houthi attacks.

No agreement on the proposed rehabilitation work has been announced.

The Energy Scramble: France's Gulf tour has produced commitments for 295,000 tonnes of diesel a month from the UAE, Bahrain and Saudi Arabia, equivalent to roughly 10% of French consumption.

Macron also secured assurances for 2 terawatt-hours of liquefied natural gas a month from Qatar over winter, as soaring fuel costs fuel domestic unrest.

Why It Matters: Saudi Arabia's East-West pipeline has become increasingly important as disruptions around the Strait of Hormuz threaten conventional oil export routes. France's offer to help secure it shows how protecting Saudi energy infrastructure is becoming an international priority, not merely a domestic security concern.

For Riyadh, the visit also offers a diplomatic signal at a time when attacks have disrupted aviation, unsettled investors and delayed major business events. For Paris, it is about protecting energy supplies and containing a crisis already affecting French consumers.

The question now is whether French defensive support and proposed infrastructure assistance translate into greater security for Saudi oil exports, or whether the Kingdom's critical energy routes remain vulnerable despite growing international involvement.

Saudi Arabia's two largest listed banks are heading in different directions. Al Rajhi Bank's Q3 profit jumped 12% yoy to SR7 billion ($1.9 billion), while Saudi National Bank's earnings slipped 0.3% to SR6.45 billion.

The Gap Widens: Al Rajhi's quarterly profit exceeded its rival's by nearly SR656 million, compared with a gap of around SR406 million in Q2.

Across six Saudi lenders that have reported Q3 results, combined profit rose 5.3% yoy to nearly SR20 billion, supported by growing demand for loans from businesses and property developers.

Saudi Arabia's infrastructure projects, housing developments and expanding private sector have been driving borrowing, giving banks more opportunities to earn financing income.

But the growth comes with a catch: banks have been lending faster than they attract deposits, increasing pressure on their funding costs.

The Difference: Al Rajhi benefited from stronger financing and investment income, while SNB recorded faster growth in loans, deposits and total assets despite its slightly weaker earnings.

Why It Matters: Al Rajhi is making more profit relative to shareholders' money, but its shares are also considerably more expensive. Investors pay about SR13 for every SR1 of annual earnings at Al Rajhi, compared with just SR8.5 at SNB.

With Al Rajhi's provisions for potential loan losses rising nearly 50% yoy, investors will be watching whether its stronger profits can justify that premium.

Saudi Arabia exported more crude in August even as its oil production fell sharply, highlighting how the Kingdom is adapting its energy operations to regional disruptions.

The Numbers: Crude exports rose 8% from July to 4.4 million barrels per day, their highest level since March. Production, meanwhile, fell from 8 million barrels per day in July to 6.2 million in August. Refinery crude processing also declined.

The Workaround: Saudi Arabia has relied on export terminals on both its Gulf and Red Sea coasts to maintain shipments despite disruptions around the Strait of Hormuz. UBS analyst Giovanni Staunovo told Reuters he expects the recovery in exports to have continued into September and October.

Why It Matters: Higher exports alongside sharply lower production suggest Saudi Arabia was able to redirect more of its available crude toward international customers, partly by reducing domestic refinery processing.

That demonstrates operational flexibility, but it also raises questions about how much spare capacity remains to absorb further disruptions.

The August figures predate the latest escalation, making September and October export data an important test of whether the recovery has endured.

After days of uncertainty over whether Riyadh's main airport had actually reopened, there is now clearer evidence of a limited operational recovery.

The Update: King Khalid International Airport has partially resumed domestic flights, according to the Associated Press, with Saudia and flynas restarting some services after attacks forced the airport's closure earlier this month.

Major international airlines, however, continue to suspend flights, with some cancellations extending into November.

The Distinction: A partial domestic reopening is not the same as restoring normal international connectivity. Airlines must assess security conditions, aircraft availability and operational risks before returning.

Why It Matters: Riyadh's airport is a critical gateway for business travel, foreign investment and tourism. Restoring domestic services is an important step, but the Kingdom's international connectivity remains constrained.

For hotels, airlines and businesses dependent on overseas visitors, the more meaningful milestone will be the return of regular international services, not simply the resumption of limited airport operations.

Saudi Arabia's stock market is suffering a much deeper selloff than its headline index suggests.

A total of 36 listed companies and eight real estate investment trusts (REITs) hit all-time lows on Wednesday, even as the Tadawul All Share Index (TASI) fell just 0.3% to close at 9,927 points.

The Bigger Picture: Selling pressure is spreading across sectors, from construction and cement to healthcare, consumer businesses and property funds.

Among the companies hitting record lows were:

Even Saudi Tadawul Group, the company operating the Kingdom's stock exchange, touched its lowest share price since listing.

The Warning Sign: Wednesday's relatively modest index decline concealed a much broader retreat. Some 207 stocks fell, while just 60 advanced.

The benchmark has now slipped below 10,000 points, extending a selloff that saw 32 stocks and REITs hit record lows on Tuesday, compared with 18 on Monday.

Why It Matters: Saudi Arabia's stock market is facing pressure well beyond its largest companies. Recent IPOs, established businesses and property funds are all affected, raising concerns about valuations and investor appetite for future listings.

For investors, the headline index is telling only part of the story. Individual stocks are suffering considerably deeper losses than the benchmark suggests.

ENERGY SECURITY: Whether France's proposal to help protect the East-West pipeline develops into a formal agreement, and whether Saudi Arabia can sustain its recovery in crude exports.

ELECTIONS ON THE HORIZON: Two approaching elections could reshape the political backdrop. Israelis vote on October 27 for the Knesset's 120 seats, with coalition-building determining the next government. US voters head to the polls on November 3 for midterm elections covering all House seats and roughly a third of the Senate.

For Saudi Arabia, the key question is whether either election shifts the diplomatic calculations surrounding the regional conflict and its economic fallout.

AVIATION: Riyadh's partial domestic reopening is progress, but the return of international carriers remains the more consequential test for business travel and tourism.

The news doesn't stop here. Neither do we. See you tomorrow.