Happy Friday Smashi Business Readers!☀️

Today’s top stories delve into the intersection of sports, politics, and tech shaping Saudi Arabia’s future. Cristiano Ronaldo isn’t just renewing his contract with Al Nassr—he’s also gaining a 5% ownership stake, blending sports stardom with business acumen. Meanwhile, Donald Trump’s second term raises questions about trade, technology, and energy dynamics with Saudi Arabia. Lastly, Google Pay is set to launch in the Kingdom in 2025, furthering Saudi Vision 2030’s push toward a cashless, digital economy.

Read on for more details.

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Google Pay Set to Launch in Saudi Arabia in 2025

📰 What is it about?

• The Saudi Central Bank (SAMA) has announced a partnership with Google to launch Google Pay in Saudi Arabia in 2025 via the national payment system mada. This initiative will:

  • Enable secure and seamless purchases in stores, apps, and online.

  • Allow users to add and manage cards conveniently through Google Wallet.

  • Enhance digital payment safety and user experience in the Kingdom.

💡 Why it matters?

• Advancing Vision 2030 Goals:
  This launch aligns with Saudi Vision 2030, which emphasizes building a robust digital payment ecosystem and reducing reliance on cash.

• Strengthening FinTech Leadership:
  The partnership reinforces Saudi Arabia’s ambition to position itself as a global leader in FinTech, leveraging globally recognized payment solutions to modernize its economy.

• Economic and Consumer Impact:
  The move will streamline consumer transactions, increase e-commerce activity, and boost confidence in secure digital payments, accelerating the Kingdom's economic digital transformation.

🔜 What’s next?

• Integration and Awareness Campaigns:
  Google and SAMA are expected to focus on integrating Google Pay with mada and conducting consumer education campaigns to encourage widespread adoption.

• Increased Market Competition:
  The entry of Google Pay could intensify competition with existing digital wallets like Apple Pay and local alternatives, driving innovation and better consumer services.

• Boost for Digital Payment Adoption:
  The initiative is likely to catalyze the Kingdom’s efforts to achieve a 70% non-cash transaction rate by 2025, in line with Vision 2030 targets.

Markets

Trump’s Second Term and Its Impact on Saudi Arabia

📰 What is it about?

• Donald Trump formally begins his second term as US President next Monday. His administration’s policies are poised to influence Saudi Arabia significantly, given the two nations’ economic ties and shared geopolitical interests.

  Key highlights of the Saudi-US relationship:

  • Economic Ties: Saudi Arabia’s Public Investment Fund (PIF) holds stakes in major US companies like Uber, Meta, and Lucid Motors.

  • Energy Investments: The kingdom owns the largest US refinery in Port Arthur, Texas, and has deep-rooted trade connections.

  • Defense and Trade: A substantial portion of US exports to Saudi Arabia comprises defense equipment.

💡 Why it matters?

1. Trade Tensions and Tariff Risks

• Potential Tariffs: Trump’s protectionist stance raises concerns over tariffs on nations engaging with BRICS or pursuing alternatives to the US dollar.

• Oil Dynamics: Saudi Arabia relies on oil prices above $90 per barrel to balance its budget, while Trump may push for lower prices to benefit the US economy.

2. Tech Policy Uncertainty

• Silicon Valley Aspirations: Saudi Arabia aims to attract $20 billion in private AI investments by 2030, making tech policy a critical concern.

• China's Role: Chinese tech integration in Saudi Arabia, such as Lenovo’s manufacturing plant and China Telecom’s Gulf affiliate, could create friction with the US.

• US Export Controls: Recent measures restricting AI chips may require Saudi Arabia to align with stringent US security protocols to access high-end technologies.

3. Geopolitical Balancing Act

• Dollar Dominance: While Saudi Arabia hasn’t joined BRICS, its interest in alternative payment systems signals a shift in alignment.

• Hydrocarbons vs. Alliances: Trump’s administration may challenge Saudi oil policy to ensure lower prices, testing the balance between economic interests and political partnerships.

🔜 What’s next?

Navigating US-Saudi Relations

Saudi Arabia will need to:

• Strengthen Diplomatic Channels: To avoid punitive tariffs, Riyadh may engage in negotiations to assure Washington of its strategic alignment.

• Mitigate Tech Dependency Risks: Saudi policymakers must navigate US restrictions while fostering regional tech innovation and partnerships.

• Adapt to Energy Market Dynamics: Balancing its fiscal needs with Trump’s oil price preferences will be critical.

Regional Implications

The Gulf Cooperation Council (GCC) states, including Saudi Arabia, will closely watch Trump’s policies to gauge their broader impact on trade, energy, and technology strategies.

💭Quote of the day:

“If you don’t design your own life plan, chances are you’ll fall into someone else’s plan and guess what they have planned for you? Not much.” — Jim Rohn

Cristiano Ronaldo’s Renewed Commitment to Al Nassr is Part Business, Part Football

📰 What is it about?

• Cristiano Ronaldo has agreed to extend his stay with Al Nassr in Saudi Arabia for another season under an economically historic contract. Beyond the financial allure, Ronaldo will also acquire 5% ownership of the club, signaling a deeper partnership and long-term commitment.

💡 Why it matters?

1. Historic Ownership Stake

• First of Its Kind: Ronaldo’s 5% stake makes him more than a player; he becomes an investor and part-owner, solidifying his influence on the club’s future direction.

• Structural Evolution: Al Nassr has undergone significant changes, including new leadership, aligning with its ambition to become a global football powerhouse.

2. Record-Breaking Earnings

• Ronaldo’s one-season renewal comes with an eye-watering €183 million salary, breaking down to:

  • €15.25 million per month

  • €3.8 million per week

  • €550,000 per day

• This cements Ronaldo as one of the highest-paid athletes globally, underlining the financial strength of Saudi football.

3. Competitive Ambitions

• Al Nassr is committing to building a more competitive squad, promising Ronaldo trusted teammates and marquee signings during the winter transfer window.

• The Saudi Pro League has become increasingly challenging, with rivals like Al Hilal and Al Ittihad raising the competitive bar by recruiting top-tier talent.

🔜 What’s next?

For Al Nassr and Saudi Football:

• Enhanced Global Prestige: Ronaldo’s continued presence will attract international attention and elevate the league’s reputation.

• New Signings: The club is expected to make major acquisitions, ensuring Ronaldo has the support to challenge for championships.

For Cristiano Ronaldo:

• Legacy Building: Ronaldo is not just shaping his legacy on the pitch but also as a football entrepreneur.

• Mentorship Role: His ownership stake could see him take a more active role in shaping Al Nassr’s strategy and development.

For the Saudi Pro League:

• Ronaldo’s extension adds credibility to the league's ambitions to become a global football hub.

• His presence will continue to attract elite players and amplify Saudi Arabia’s influence in the global sports ecosystem.

🔍In other news…

1. Dubai Mall breaks records again! With over 111 million visitors in 2024, it’s officially the most visited place on Earth for the second year running.

2. Lyvely, the innovative platform empowering content creators to monetise their products and services, has partnered with UAE-based fintech company Mamo.

3. DMCC and REIT Development have unveiled plans for the groundbreaking ‘Crypto Tower’, a 17-storey project in Dubai’s Jumeirah Lakes Towers.

4. The Adani Group is reportedly in advanced negotiations to acquire a majority stake in Emaar India.

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