Good morning, wonderful people. We are saying goodbye to the second workweek of Ramadan with a meaty issue, as we delve into Fitch’s latest projections for our budget deficit, and PIF-backed Scopely snaps up Pokemon Go from US-based Niantic.

ALSO- Siemens Energy has landed a USD 1.6 bn project for two gas-fired power plants, and BSF agreed to lend Diriyah SAR 6 bn for Wadi Safar project. Let’s dive in.

HAPPENING TODAY-

#1- Rawasi Albina Investment will list its SAR 70 mn sukuk on the Tadawul for trading today, with the notes carrying a SAR 1k par value and semi-annual payments at a 10.25% rate, Tadawul said on X.

#2- The final allocation of shares in Umm Al Qura for Development and Construction is scheduled to happen today, after the retail bookbuilding period wrapped up on Sunday.

REMEMBER- Umm Al Qura is offering a 9.1% stake on Tadawul’s main market priced at the top of its indicative range at SAR 15 per share, with the institutional tranche oversubscribed by 241x. The pricing would see it raise SAR 2 bn in proceeds and give the firm a market cap of SAR 21 bn at listing, making it the largest IPO on Tadawul so far this year.

WEATHER- Riyadh and Madinah will see thunderstorms, while Makkah will see some rain today.

  • Riyadh: 27°C daytime / 16°C overnight
  • Makkah: 32°C daytime / 20°C overnight
  • Madinah: 28°C daytime / 16°C overnight

WATCH THIS SPACE-

#1- Filling the PwC-shaped hole: Consultancy firms including Deloitte and EY are moving to expand their presence in the Kingdom after the PIF sidelined PwC from advisory contracts, Bloomberg reports, citing sources it says are in the know. Some firms have already been invited to bid on “lucrative” consultancy contracts for giga-projects including Neom, according to the business information service’s sources.

Talent shortage? Deloitte and EY managers have reportedly instructed staff to brace for an uptick in projects, with EY already bringing in more than a dozen staff members to Saudi Arabia from other offices in anticipation of securing new assignments. This shift comes as PwC’s competitors struggle to scale up and absorb the additional workload due to a limited local consultant pool.

REMEMBER- PwC was reportedly barred from securing advisory and consulting contracts from the fund and its subsidiaries until February 2026, two years after setting up its regional headquarters in Saudi Arabia, where it employs over 2k people. The consulting firm informed employees in an internal memo that the situation pertains to a “client” matter rather than a regulatory issue, while the Financial Times said it was due to the consultancy firm’s attempt to hire Neom’s then-chief internal audit officer Jason Davies.

#2- Abu Dhabi-based Alpha Data aims to triple Saudi sales to 10% by next year as it expands beyond the UAE, CEO Fayez Al Abini told Asharq Business. The digital and IT services provider opened offices in Saudi Arabia and Qatar in 2022 but is adopting a cautious approach toward its expansion, focusing on projects that can “[ensure] payment commitments” and “avoid delays in signing and implementation,” Al Abini said.

ICYMI- Alpha Data debuted on the ADX yesterday with a 40% stake sale that raised AED 600 mn (USD 163 mn).

#3- The Royal Commission for Riyadh City extended the deadline to submit bids for the contract to design and build Riyadh Metro Line 7 to Sunday, 15 June 2025, according to Metro Rail Today. The line is set to be developed in two phases, with phase 1 spanning a 65 km stretch, linking 19 stations to key areas including Qiddiya Entertainment City and King Salman Park. Meanwhile, phase two — still in the design stage — will extend the line northeast to connect Diriyah Gate, New Murabba, and King Khaled International Airport.

Who’s in? Several major global companies are reportedly bidding for the contract, including Germany’s Alstom, Japan’s Hitachi Rail, Siemens, Samsung Construction and Trading, and China’s CRRC, Freysinnet Contracting, Turkey’s Mapa and Limak. Local firms competing for the project include Alayuni, Albawani, Almabani, FCC, and WeBuild, Nesma and Partners, and OHLA.

REMEMBER- The orange line (Line 3) — the final link in Riyadh’s network — was launched earlier in January, bringing the total number of operating metro lines to six. This milestone follows a successful pilot earlier in December, which introduced three of the network’s six lines, followed by the launch of Lines 2 and 5 mid-month.

#4- Riyadh Air is exploring partnerships with Air India and IndiGo to strengthen its presence in India as the airline’s CEO Tony Douglas leads a delegation visiting India for three days, according to a statement. “India has long been a crucial part of Riyadh Air’s network planning ahead of our operations launch,” Douglas said.

#5- Derayah Nomu Market Fund gets the go-ahead: Derayah Financial Company received the green light from the Capital Market Authority for the public offering of its Derayah Nomu Market Fund, the authority said in a statement.

DATA POINTS-

#1- Consumer spending via point-of-sale (PoS) transactions in the Kingdom dipped 25.5% w-o-w in the week ending Saturday, 8 March to c. SAR 13 bn, according to the Saudi Central Bank’s report (pdf). The number of weekly transactions also fell by 19.8% w-o-w to just under 185.5 mn.

The details: PoS transactions on furniture saw the largest decline in terms of value, falling 38.7% w-o-w to SAR 321.5 mn, followed by restaurants and cafes, whose value fell 38.3% to just under SAR 1.3 bn. Food and beverages came in a close third, with the value of transactions falling 38.1% w-o-w to SAR 2.0 bn. In terms of volume, restaurants and cafes recorded the steepest decline during the week (-35.8%). Education transactions jumped 144.6% w-o-w to SAR 200.7 mn as students returned from their second semester vacations following Founding Day.

Riyadh once again had the highest value of PoS transactions at SAR 4.6 bn, followed by Jeddah at SAR 1.8 bn. The lowest value was recorded in Abha, with SAR 139.7 mn in spending across 2,391 transactions.

#2- The Kingdom’s commercial records for importing precious metals and gemstones rose 37% y-o-y in 2024, driven by government reforms to attract investment and improve transaction transparency, according to Aleqtisadiah. Registrations for precious metals and gemstones imports reached 1,081, up from 788 in 2023, while sales registrations grew 29% y-o-y to 1,269. Riyadh led in imports and exports, followed by Makkah and the Eastern Province.

OIL WATCH-

Opec+ oil output jumped in February to 41.01 mn bbl / d, rising 363k bbl / day from the previous month, according to Opec’s monthly oil market report (pdf). The increase was driven primarily by higher output from Kazakhstan, which added 198k bbl / d to its monthly production — “at least 300k bbl / d above its Opec+ ceiling,” Bloomberg notes.

REMEMBER- Opec+ agreed to stick to plans to revive supply in April following repeated delays, with the group citing “healthy market fundamentals” and a “positive outlook.” Opec+ kept the door open, however, for future changes in policy, saying that the increase may be paused or reversed depending on market conditions. “This flexibility will allow the group to continue to support oil market stability,” the group said.

SPORTS-

#1- Saudi clubs comfortably head into the Asian Champions League Elite quarterfinals: Al Hilal recovered from a 1-0 loss in the first leg of the round of 16 to beat Uzbek side Pakhtakor 4-1 on aggregate, while Al Nassr put three past Iran’s Esteghlal following a goalless draw in the reverse fixture. Meanwhile, Al Ahli added two clean goals to the three-goal cushion they took home against Qatar’s Al Rayyan in the previous leg.

What’s next? Qatar’s Al Sadd joined our three Saudi clubs, with the four teams qualifying to the finals from the West region, which can only draw teams that qualified from the East in the next round — including Japan’s Yokohama F. Marinos and Vissel Kobe, Thai side Buriram United, as well as China’s Shanghai Shenhua. The quarterfinals draw will take place next Monday, 17 March. Apart from the round of 16, the competition’s finals will be played over just one leg and within a 10-day stretch between 25 April and 4 May.

#2- Chess teams are recruiting top players for the Esports World Cup this summer, where sixteen players will compete in Riyadh from Thursday, 31 July to Monday, 4 August, for a USD 1.5 mn pool, Reuters reported yesterday.

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THE BIG STORY ABROAD-

It seems like we can’t go a single morning without bringing up the Trump tariffs: US President Donald Trump threatened to introduce additional tariffs on EU imports, after the bloc responded to his 25% tariff on steel and aluminum, saying it would increase tariffs on USD 28 bn worth of US goods starting April. “Whatever they charge us with, we’re charging them,” Trump said in response to the news. (Reuters | Bloomberg | AP | BBC)

“Tariffs are taxes. They are bad for business and worse for consumers,” EU President Ursula von der Leyen said, adding that “nobody needs that — on both sides, neither in the European Union nor in the United States.”

CLOSER TO HOME- Israel and Lebanon kicked off US-backed talks over their border and the possible withdrawal of Israeli troops. Delegates from the two sides met earlier this week in the presence of US and French mediators (Bloomberg)

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