Good morning, ladies and gents. We have a light issue for you today as business in the Kingdom slows down after last week’s flurry of agreements and conferences. Inflation, however, is not slowing down, as it rebounded slightly to 2.0% in January.

ALSO IN TODAY’S ISSUE- Umm Al Qura sets price range ahead of its Tadawul IPO, the rundown on latest startup funding rounds in Saudi, and a spotlight from Bloomberg on Asfar’s push to widen tourist options in the Kingdom. Let’s dive in.

HAPPENING TODAY-

#1- Thetwo-day AlUla Conference for Emerging Market Economies wraps up today. The event, organized by the Finance Ministry and the IMF, aims to foster dialogue on economic challenges affecting emerging markets, with a focus on fiscal policy, debt, and AI’s role in economic development.

What they said: Finance Minister Mohammed Al Jadaan emphasized the importance of multilateral cooperation, particularly in tackling sovereign debt, and fostering a global economy that is “durable and inclusive for all nations.” IMF Managing Director Kristalina Georgieva highlighted the critical role of emerging markets in global growth, urging them to be “agile, adaptable, and resilient” in tackling challenges such as inflation, high debt, and reforms needed to improve competitiveness and productivity.

#2- Two Nomu IPOs continue today: Local marble and porcelain supplier HKC Ceramics, better known as Hedab Alkhaleej, is offering a 10.7% stake (800k newly-issued shares) on the Nomu parallel market in a primary offering limited to qualified institutional investors (QFIs), according to a Tadawul statement. In addition, Coffee chain operator Ratio is offering a 25% stake (5 mn shares) on Nomu at SAR 10 apiece, in a secondary offering, according to a statement to Tadawul. Both offerings started yesterday, and will run until 20 February.

#3- The public offering of Rawasi Albina Investment’s Series 1 SAR-denominated Sukuk continues until Thursday, 27 February. The initial SAR 50 mn issuance — the first issuance under its SAR 500 mn sukuk program — has a five-year maturity and a 10.25% annual return paid semi-annually. The Sukuk holds a BBB (Stable) rating, with a minimum subscription of SAR 5k and a maximum of SAR 500k.

HAPPENING TOMORROW-

The three-day Capital Markets Forum — organized by Saudi Tadawul Group — kicks off on tomorrow at Riyadh’s KAFD Conference Center, before moving to the Four Seasons Hotel Riyadh for the following two days.

** EnterpriseAM will be at the Forum in Riyadh, Tuesday to Thursday. Feel free to drop us a line at awahid@enterprisemea.com — we’d love to grab a coffee and chat about the latest in the industry.

PSA-

#1- ⚠️ WEATHER- Riyadh is bracing for a wet week as the National Center of Meteorology forecasts moderate to heavy rain across much of the Kingdom between Tuesday and Thursday. Riyadh will also see strong winds, low visibility, lightning, and flooding. Makkah, Hail, Al Qassim, and Madinah will also see rain.

#2- The Saudi Stock Exchange will be taking Sunday, 23 February off in observance of the Founding Day, with trading set to resume on Monday, 24 February, it said in a statement.

WATCH THIS SPACE-

#1- Diriyah’s USD 64 bn development is on track to exceed income projections for 2025, with early residential sales reaching SAR 13-14 bn in deposits, largely driven by luxury property sales, CEO Jerry Inzerillo was quoted as saying during a panel at the PIF private sector forum by the Saudi Gazette. The development, spanning 14.2 mn sqm, has drawn interest from international investors including Italian and Colombian developers, as well as Qatari and Emirati buyers, Inzerillo added.

ALSO- A potential IPO? Inzerillo hinted at a potential future public listing for Diriyah, citing strong investor interest and solid returns. “Diriyah is well-positioned for long-term financial sustainability,” he said.

#2- The first phase of smart city The Line’s Hidden Marina is moving forward, with contractors being sought for raft foundations tendered in six lots, with the Hidden Marina set to be the first segment of the Line to become operational, the Saudi Gazette reports citing remarks by Neom Chief Development Officer Denis Hickey at the PIF Private Sector Forum.

The details: The 2.5-km long, 500-meter high first phase will be composed of three interconnected modules and is set to house upwards of 200k residents, Hickey said. Neom set a 24 March deadline for firms to submit proposals to undertake the raft foundations of the modules, according to Meed.

Is the Line still facing hurdles? Neom’s flagship project — which is projected to cost anywhere between USD 100-200 bn — was expected to be home to fewer than 300k people by the end of 2030, down from an initial forecast of 1.5 mn residents, due to a slowdown in construction, according to unconfirmed media reports last April. Only 2.4 km of the project were expected to be completed by the end of the decade. More recent projections were not immediately available.

#3- Homegrown electric vehicle brand Ceer is set to unveil its first car toward the end of this year and begin taking orders early in 2026, Al Arabiya quotes Ceer CEO James DeLuca as saying. Ceer. The company’s first two cars are set to begin production in 4Q 2026 and hit markets simultaneously, DeLuca added. Meanwhile, Ceer is set to contribute USD 8 bn to Saudi Arabia’s GDP by 2034, creating some 30k jobs locally and reeling in some USD 150 mn in FDI,

ICYMI- The EV brand inked 11 agreements worth SAR 5.5 bn at the PIF Public Sector Forum with mostly Saudi companies earlier this week, part of its drive to localize EV components.

#4- White House Middle East envoy Steve Witkoff said yesterday he is to land in Saudi Arabia last night, ahead of talks between Russian and US officials aimed at ending the Ukraine-Russia war, in an interview with Fox News (watch, runtime: 2:05). Witkoff was to be joined by National Security Advisor Mike Waltz. Reuters also had the story.

ICYMI- This is the first official confirmation that senior officials from US and Russia will convenein Saudi for talks, which are intended to lay the groundwork for a Trump-Putin summit that could happen as soon as this month.

#5- UK-based global asset management firm Janus Henderson Group Plc is exploring a move to Saudi Arabia as it looks to expand its Middle East presence, with the opening of an office in the Kingdom being a “likely outcome,” the company’s CEO Ali Dibadj told Bloomberg. The firm recently tapped Baraa Amir (LinkedIn) to spearhead its Middle East and Africa operations and to “start laying the groundwork” for further investments in the region.

DATA POINTS-

#1- The Northern Borders province is estimated to hold over SAR 4.7 tn in mineral reserves, the Mineral and Natural Resources Ministry posted on X. The ministry already issued 29 mining licences for operations in five ore phosphate mining sites.

#2- The Public Investment Fund (PIF) reduced its ownership in the US stock market by the end of 4Q 2024 to USD 26.8 bn, down 23.9% y-o-y, Mubasher reports, citing US Securities and Exchange Commission filings. PIF held some 2 bn shares across 60 US companies by the close of the fourth quarter, with its largest holding represented in Lucid Group — where it owns 1.8 bn shares worth USD 5.4 bn. Holdings in Uber Technologies (USD 4.4 bn), and Electronic Arts (USD 3.6 bn) followed.

SPORTS-

UK-born Nissan pilot Oliver Rowland went on top in the Formula E World Championship at Jeddah Corniche Circuit, with a comfortable lead to the checkered flag, marking his second win this season, FormulaE reports. The podium was completed by British drivers Taylor Barnard and Jake Hughes.

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THE BIG STORY ABROAD-

It’s an unusually calm morning on the international scene, as regional and international leaders anticipate the ramifications of the new US administration’s approach to Gaza, Ukraine and the international economy.

US Secretary of State Marco Rubio started his Middle East tour in Israel, where he stood next to Prime Minister Netanyahu to affirm their shared goals of “eradicating” Hamas and preventing the emergence of a nuclear Iran. Netanyahu called US President Trump’s forcible displacement plan “the only viable plan to enable a different future.” Rubio will head next to Saudi Arabia and the UAE. (AP | CNN)

MEANWHILE- Top EU leaders are gathering in Paris today, to discuss a unified response to the US’ unilateral rapprochement with Russia, and the future of European defense. It remains unclear whether EU or Ukrainian representatives will be a viable part of the anticipated US-Russia negotiations to end the war in Ukraine. (FT | AP | BBC)

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