Good morning, wonderful people. With the weekend within arm’s reach, we have what we like to call a Goldilocks issue — not quite a slow cycle, but nowhere near a torrential downpour.

HAPPENING TODAY-

Shares in petroleum derivatives manufacturer Petrol Naas will begin trading on Tadawul’s parallel market Nomu this morning, according to a Tadawul statement. The company’s shares will be allowed to trade within a ±30% range for the first three days before being capped at no more than 10% up or down when circuit breakers kick in. All shares on Tadawul are subject to the 10% up-or-down rule.

REFRESHER- Petrol Naas is taking a 20% stake (equivalent to 600k ordinary shares) public on Nomu in a secondary share sale, according to its prospectus (pdf). The company priced its shares at SAR 49 apiece, after lining up regulatory approval for the move back in March.

⚠️WEATHER WARNING- Storms continue through to next week: Makkah will continue to see heavy rain, flooding, and strong winds through to Saturday, the General Directorate of Civil Defense said, according to SPA. Madinah, Al Baha, Asir, Jazan, and Najran are also in for medium to heavy rain, the directorate said.

HAPPENING TOMORROW-

Trading on Savola Group’s SAR 6 bn rights offering kicks off tomorrow and wraps on Thursday, 5 September, it said in a filing to Tadawul. The trading period allows shareholders, and investors to buy and sell shares part of the offering. Meanwhile, the subscription period where shareholders can choose to exercise their rights to purchase additional shares, as offered in the rights issue concludes on Tuesday, 10 September.

REMEMBER- The offering aims to boost Savola’s capital by adding 600 mn shares valued at SAR 10 apiece. The Tadawul-listed player will then reduce its capital before offloading its entire 34.5% stake in Almarai to its existing shareholders, pending regulatory and shareholder approvals.

PSAs-

#1- A couple of new regs up for feedback on Istitlaa:

  • Telecom infrastructure + services in residential buildings: Proposed regulations that aim to govern the development of telecom infrastructure and services in residential buildings are up for public consultations on the government’s surveying platform Istitlaa until 26 September, state news agency SPA reports. The regulations cover the responsibilities of property developers and telecom service providers, in a bid to set high quality standards.
  • Prepayment for electricity services: Updated regulations for prepayment procedures for electricity services are open for feedback on the government’ssurvey platformIstitlaa. The regulations cover prepayment fees, balance recharging, and disconnection / reconnection procedures. Find the full draft here (pdf).

#2- Travelers and holders of ordinary passports will now be required to process their visa applications to China through a newly established center starting tomorrow, and not through the embassy, according to the center’s website. Meanwhile, the embassy will continue to directly process visa applications for those applying for diplomatic, or service visas. The embassy will also “extend the exemption of fingerprints collection for eligible applicants applying for single or double entry business, tourist, family visit, transit, or crew visas until 31 December 2024.”

#3- Tabuk’s landowners must fence vacant plots to avoid recurring financial penalties, the Tabuk Municipality said on X. This phase of the initiative targets the owners of 141 vacant plots in the municipality. You can apply for a fencing license here.

WATCH THIS SPACE-

#1- BNPL payments in Saudi Arabia are expected to reach USD 1.3 bn in 2024, up 16.2% on an annual basis, according to a Research and Markets report. The industry is projected to grow at a compound annual growth rate (CAGR) of 10.8% from 2024 to 2029, with the gross merchandise value reaching USD 2.2 bn by 2029, up from USD 1.1 bn in 2023.

#2- The Saudi Arabia accounting software market is expected to reach USD 75.7 mn by 2029, up from USD 44.5 mn in 2023, hitting a CAGR of 9.1% during the period, Research and Markets said in a separate report.

#3- Update for the gamers among us: The Esports Olympics are scheduled to take place in the Kingdom for the first time in 4Q 2025, Savvy CEO Brian Ward told Asharq Al Awsat. The International Olympic Committee had said last month the event would happen next year, without specifying an exact time.

SPEAKING OF ESPORTS- Saudi Arabia's esports sector is expected to contribute USD 13.3 bn to the Kingdom’s GDP by 2030 and generate nearly 39k jobs, Arab News reports, citing a PwC Middle East report.

MARKET WATCH-

Tharwah shares fall on Nomu debut: Homegrown recruitment and HR agency Tharwah’s shares closed down 6.8% on its first day of trading on parallel market Nomu, according to Tadawul data. The shares — which had debuted at SAR 62.0 apiece — closed at SAR 57.8 apiece after recovering slightly from an intraday low of SAR 57.1 per share.

DATA POINTS-

#1- Some 18.5k people enrolled in the Real Estate Development Fund’s low-interest mortgage loan initiative between 4Q 2023 and 1Q 2024, state news agency SPA reported. The initiative allows Sakani beneficiaries to secure mortgage loan agreements at interest rates as low as 2.6%.

#2- The number of industrial establishments in Saudi Arabia reached 11.5k in 2023, up 60% from 2016, according to Alsharq Al Awsat.

OIL WATCH-

Oil prices fell 2% yesterday, ending a 7% rally over the three previous days, Reuters reported. The decline was driven by concerns that slower growth in the US and China could diminish energy demand.

SPORTS-

Neymar isn’t going anywhere: The Brazilian player’s representatives have brushed off reports of an exit from Al Hilal back to Barcelona as “lies,” the Daily Mail reports.

COMING TO SAUDI:

  • Joao Cancelo: Manchester City has signed off on defender Joao Cancelo’s GBP 21.2 mn transfer to Al Hilal, BBC reports under a three-year contract. The Portuguese player is expected to proceed with inking a three-year contract with the SPL club.
  • Yoann Barbet: Al Riyadh signed 31-year-old French defender Yoann Barbet on a one-year contract, according to King Fut.

NOT COMING TO SAUDI?

#1- Chelsea is looking to snag Brentford’s Ivan Toney, who also received a GBP 35 mnoffer from Al Ahli, according to Sky Sports. Chelsea “would not be able to match” Al Ahli’s offer, but would give the Brentford striker a place in the Premier League.

#2- Victor Osimhen is still a Napoli player, the football player’s agent said in a post on X. The player has reportedly received a GBP 60 mn offer from Al Ahli, the Independent reported.

AND- Saud Abdulhamid is joining Roma in a landmark move, becoming the first Saudi footballer to secure a permanent transfer to a top European league, according to theNational. Abdulhamid joined the Yellow and Reds from Hilal for a fee of EUR 2.5 mn, potentially rising to EUR 3 mn with bonuses.

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THE BIG STORY ABROAD-

Trump gets indicted, again: Former President and current presidential nominee Donald Trump was hit with a fresh indictment yesterday in the 2020 election case, as special counsel Jack Smith submitted a revised indictment accusing Trump of election subversion.

The new indictment was revised to remove parts of the case that would conflict with arecent Supreme Court ruling granting presidents immunity for “official acts” while in office, including allegations “related to an effort … to make the Justice Department support his false claims of voter fraud.” The ruling, in effect, granted Trump immunity from being indicted over colluding with Justice Department officials because communicating with the Justice Department would count towards his “core official duties.”

The fresh indictment was filed at the eleventh hour before the start of a 60-day window before presidential elections, in which the Justice Department has a policy of avoiding prosecution-related work that could influence an election.

The story is topping the front pages everywhere this morning: Reuters | Politico | FinancialTimes | Washington Post | New York Times | Wall Street Journal

CIRCLE YOUR CALENDAR-

The EFG Hermes London Conference returns: EFG Hermes will hold its annual conference in London on 9-12 September, giving investors “unique and unparalleled access to leading equities in MENA and key frontier emerging markets.”

The Crown Prince Camel Festival runs until Tuesday, 10 September at the Taif Camel Racing Track, featuring 610 rounds of racing and a purse of SAR 56 mn.

The two-day Data Center Xpo summit will kick off in Riyadh on Tuesday, 3 September.

SRMG Academy’s technology journalism course will kick off in Riyadh on Sunday, 15 September. The five-day, TikTok-backed program will run until 19 September.

Fenaa Alawwal cultural center will kick off the contemporary art forum Muntada FAA on Sunday, 15 September at the Diplomatic Quarters in Riyadh. The forum runs until Thursday, 19 September.

The two-day Kingdom Business and Luxury Travel Congress will kick off on Wednesday, 25 September, at the Crowne Plaza Riyadh RDC Hotel and Convention.

The three-day Global Logistics Forum will kick off on Saturday, 12 October at Riyadh’s King Abdullah Financial District.

The Industrial Hackathon 2024 is scheduled for 10-11 October, the Saudi Industrial Development Fund spokesperson said on X. The hackathon will pit top Saudi talents against each other to showcase their design, production and sustainability solutions for the local manufacturing sector. Contestants will compete for a pool worth a combined SAR 1.4 mn.

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