Good morning, wonderful people. We have a meaty issue for you today, as Derayah Financial’s strong Tadawul debut saw the share price close 30% higher. Meanwhile, Zahid’s consortium is not giving up on South Africa’s Barloworld.

Also in the news well: The PIF launched Al Waha, Saudi Arabia’s first dutyfree retailer. We also have plenty of data in today’s issue, from Gastat’s Industrial Production Index for January, to the state of labor market, sustainable debt issuances and greenfield FDI projects in 2024. Let’s dive in.

When do we eat? Maghrib is at 6:00pm today in Riyadh. You’ll have until fajr prayers at 4:47am tomorrow to wrap up sohour.

WEATHER– Riyadh and Makkah will have partly cloudy skies today, while Madinah is expected to have a sunny, clear day.

  • Riyadh: 25°C daytime / 16°C overnight
  • Makkah: 33°C daytime / 18°C overnight
  • Madinah: 27°C daytime / 15°C overnight

PSAs-

Businesses subject to excise tax must file their January and February tax returns by Saturday, 15 March through the Zakat, Tax, and Customs Authority (Zatca) website, according to a statement. Missing the deadline will result in penalties of 5% of the unpaid tax for every 30 days of delay. Excise tax is imposed on products associated with health risks, including soft and energy drinks, and tobacco products.

WATCH THIS SPACE-

Al Watania Poultry draws local, foreign bidders for acquisition: Almarai, Tanmiah Food, Brazil’s food giant JBS, and Ukraine’s MHP submitted separate non-binding offers to acquire Al Watania, the Middle East’s largest poultry producer, in a transaction valued at up to SAR 2 bn (USD 532 mn), Bloomberg reports, citing sources it said are familiar with the matter. BSF Capital is advising on the potential sale, though talks are ongoing and may not result in a transaction.

IN CONTEXT- The Kingdom nearly doubled its poultry production over the past decade, as part of a push for food self-sufficiency and to address an 80% reliance on food imports that leaves the Kingdom vulnerable to shocks. The Kingdom has earmarked USD 4.5 bn to increase local poultry output, achieving a 72% self-sufficiency rate with over 1 mn tons of poultry meat produced annually. Local chicken production is growing at 6% a year — one of the fastest rates in the world.

We are set to become the Mideast’s data center powerhouse by 2027: The Kingdom is expected to spearhead the Middle East’s data center growth over the next three years, with a compound annual growth rate of 37% through 2027, Bloomberg reports, citing analysis from real estate services firm Jones Lang LaSalle (JLL). This rate is almost twice that of Dubai and Abu Dhabi, and well above the global average of 15%.

Fueling the expansion: The Kingdom’s drive to become an AI hub is fueled by government policies, tax incentives, and economic free zones. The push has attracted major firms like Microsoft, Amazon Web Services, and Equinix to invest in data center capacity, alongside a USD 1.5 bn Groq-Aramco partnership for the world’s largest AI inference node. Saudi Arabia is also planning a USD 100 bn AI project to turn the Kingdom into a technological hub to rival the UAE.

Pushing forward despite global hurdles: Saudi has “the ambition and the capital” necessary to become the region’s data center leader, despite challenges including US restrictions on advanced AI chip exports present challenges, rising energy costs and lengthy construction timelines, Stephen Macdonald, managing partner at Proptech, told Bloomberg.

Edrevel to pour USD 100 mn into Saudi AI education: US-based AI-powered education solutions company Edrevel plans to invest USD 100 mn in Saudi Arabia over the next five years to support AI-based education and workforce training, Asharq Al Awsat reported. The company signed an agreement with Aosha Training and Consulting Company, the Saudi Entertainment Academy, and King Faisal University to develop training programs and improve high school testing methods.

DATA POINTS-

#1- The number of exported containers at our ports increased 18.3% y-o-y in February to 215.5k, while imported containers fell 5% y-o-y to 215.7k, according to the Saudi Port Authority (Mawani). Meanwhile, cargo handling volumes fell 3.66% y-o-y to 22.5 mn tons.

#2- The General Authority for Roads launched 55 projects valued at SAR 4 bn in 2024, a spokesperson told Aleqtisadiah. Road investments have exceeded SAR 36 bn since 2016, spanning 13.2 km.

SPORTS-

Al Ittihad continues to lead the Saudi Pro League with a four-point advantage over Al Hilal, while Cristiano Ronaldo maintains his position at the top of the scoring charts despite Al Nassr sitting fourth in the table.

What to tune into: League leaders Al Ittihad are set to face Al Riyadh at 10pm on Thursday, while Al Fateh takes on Al Raed at the same time. The action continues with Al Shabab hosting Al Orobah to complete Thursday’s fixtures.

***You’re reading EnterpriseAM Saudi, your essential daily roundup of business, economics, and must-read news about Saudi, delivered straight to your inbox. We’re out Sunday through Thursday by 7am Riyadh time.

EnterpriseAM Saudi is available without charge thanks to the generous support of our friends at Tas’heel.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on saudi@enterpriseAM.com.

DID YOU KNOW that we also cover Egypt, the UAE, the MENA logistics and climate industries?

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM Saudi delivered every weekday.
***

THE BIG STORY ABROAD-

A single story is dominating the headlines this morning: US President Donald Trump’s tariffs sent US markets plunging, the S&P 500 fell 2.7% yesterday, tech stocks saw their biggest day of losses since 2022 — thanks to Tesla shares falling 15%, seeing their worst performance in five years — with the Nasdaq dipping 3.8%, and the Dow Jones dropped 2.1%.

“This big sell-off feels ugly, it feels nasty,” Citigroup’s Drew Pettit said. “We were coming off very high sentiment and very high growth expectations. All of this is just recalibrating to the new risks that are in front of us,” he said. (Bloomberg | CNBC | FT | Reuters | AP | CNN | BBC)

CIRCLE YOUR CALENDAR-

The 2025 Saudi Arabian Grand Prix weekend is scheduled to kick off on Friday, 18 April at the Jeddah Corniche Circuit and wrap up the following Sunday. You can grab your tickets here.

Tags: