Good morning, ladies and gents. Big energy players are making waves in this morning’s issue, with updates from Aramco and Acwa Power leading our news well.

In today’s issue: Aramco’s Jafurah gas project is said be nearing a USD 10 bn investment from BlackRock-led consortium, which is expected to follow the structure of the oil giant’s “lease and leaseback” agreements. Meanwhile, Acwa Power’s rights issue was over 96% covered, coinciding with Senegal’s government inking USD 800 mn agreements with the renewables giant for what will be the largest desalination project in West Africa.

***
BUT FIRST- We’re delighted this morning to welcome our friends from Hassan Allam Properties as our newest pillar sponsor here on EnterpriseAM Saudi Arabia.

HAP is a developer of world-class residential communities, mixed-use developments, and vacation homes that cater to families looking for exclusive experiences and private seaside getaways in prime locations across Egypt. A three-generation family business, HAP draws on 80 years of heritage and has been Egypt’s premier boutique developer since the 1990s.

HAP’s portfolio of communities includes SwanLake Residences (NewCairo, ParkView NewCairo, SwanLake Katameya, and more) as well as destinations in West Cairo, El Gouna, Ain Sokhna, and, of course, the North Coast — 25 integrated and sub-developments across a national footprint and in partnership with leading global industry names.

Our friends at HAP share three of our most important values: Innovation, ambition, and family, and have long been our partners as the anchor sponsors of the EnterpriseAM Weekend Edition in Egypt.

HAP is pursuing new opportunities in Saudi Arabia and beyond. Whether for investment or primary use, they see significant appetite for high-quality Egyptian real estate from Saudi nationals, foreign residents of the Kingdom — and, of course, from Egyptians living and working in Saudi. HAP trusts EnterpriseAM to deliver “the quality, the reach, and the micro-selective and targeted audiences” that have marked the “brilliant success story” they’ve enjoyed with the EnterpriseAM Weekend Edition.

HAP chose EnterpriseAM Saudi for our unique ability to simultaneously reach Egyptian expats, global markets, and high-profile execs across our region. “We couldn’t think of a better, more selective and targeted vehicle than EnterpriseAM — delivering the right executives and CEOs a unique early-morning report on everything that is happening economically — and in real estate, of course.”

Please join us in thanking HAP for their trust — EnterpriseAM Saudi Arabia remains available without charge thanks to their generous support.
***

HAPPENING TODAY-

#1- Master plans and new corporate identities for King Fahd International, Al Ahsa, and Qaisumah airports will be out today, along with the strategy for Dammam airports, state news agency SPA reported on Friday. Today will also see the inauguration of 77 aviation-related infrastructure projects worth SAR 1.6 bn in the Eastern Province.

#2- The Real Estate Brokerage Forum kicks off today in Riyadh International Convention and Exhibition Center. The event, which takes place two years after the real estate brokerage law came into effect, will discuss legislative updates in the sector, empowerment prospects, and the role of brokers in enhancing the value and sustainability of real estate products.

WEATHER- Riyadh is set to sizzle with a high of 46°C and a low of 30°C. Jeddah will stay milder, reaching 35°C at its peak and slipping to 29°C later in the day. Makkah will see the heat climb to 43°C, with temperatures easing to 32°C as the day winds down.

HAPPENING TOMORROW-

Trading will resume tomorrow for Saudi Azm for Communication and InformationTechnology and Obeikan Glass on the main index TASI, with a 10% daily price fluctuation cap, according to separate Tadawul disclosures.

IN CONTEXT- The Saudi Exchange suspended trading of Saudi Azm and Obeikan Glass shares last Tuesday as both companies prepare to transition from the Nomu parallel market to the main market Tadawul. The two companies received approval for the move in late June, following the companies’ resubmission of their transfer requests in May after an earlier rejection by the exchange. Both companies were listed on Nomu in early 2022.

ADVISORS- Azm enlisted Al Rajhi Capital as financial advisor, KLA as counsel, and Deloitte as financial due diligence advisor. Meanwhile, Obeikan appointed Al Rajhi Capital as financial advisor, KLA as counsel, and PwC as financial due diligence advisor.

NEWS TRIGGERS-

Saudi Aramco is expected to publish its 2Q 2025 earnings on Tuesday, 5 August, according to the company’s website. The oil giant is forecast to post SAR 92.8 bn in net income for the quarter, up from SAR 106.2 bn recorded in the same period last year, according to Argaam.

REFRESHER- The company posted a 4.6% y-o-y drop in net income to SAR 97.5 bn (USD 26 bn) in 1Q 2025, exceeding analyst estimates by some SAR 3.4 bn amid weaker oil prices caused by global economic uncertainty.

PSAs-

#1- The new ins. draft law will be up for public consultation on the Istitlaa platform until next Tuesday, 22 July, the Ins. Authority said. The proposed law (pdf) aims to stabilize the sector, improve policyholders’ protection, encourage fair competition, and regulate contractual relationships.

#2- The government extended the deadline for applying for groundwater wells licenses by one year, Okaz reports, citing a statement from Environment, Water and Agriculture Minister Abdulrahman Al Fadley. The extension does not apply to local agricultural companies, large-scale wheat farmers, or other activities overseen by the Saudi Water Authority and the Saudi Food and Drug Authority, such as water stations and bottled water factories.

#3- Investors and entrepreneurs have until 20 August to submit bids for a new 50k sqm hydroponic and greenhouse project in Tabuk via the Furas platform, state news agency SPA reported yesterday. The project aims to produce vegetables using water and energy-efficient farming methods.

WATCH THIS SPACE-

#1- Elon Musk’s xAI is in talks to lease data center capacity in the Kingdom, Bloomberg reported on Wednesday, citing people it said are familiar with the matter. The startup is reportedly weighing a long-term proposal for several gigawatts from PIF-backed Humain — whose infrastructure is not yet built — against a more short-term agreement for a 200 MW facility already under construction by an unnamed company.

ICYMI- Rumors circulated last week that the Public Investment Fund would be a key investor in a potential USD 170-200 bn fundraising round for xAI — a claim Musk denied, stating the startup is not interested in raising capital right now. The sovereign fund already holds an indirect stake in xAI through the Kingdom Holding Company’s USD 800 mn investment.

#2- Workforce cuts at Neom? Neom is said to be considering laying off 1k employees and relocating another 1k, Semafor reports, citing people it says are familiar with the matter. The move — reportedly part of a “comprehensive review” to reassess budgets and progress — effectively ends a live on-site policy and reduces employee benefits, including housing and food.

Many hands are involved: The gigaproject employed around 5k full-time staff from 100 countries, in addition to some 140k contractors, former CEO Nadhmi Al Nasr said in May 2024.

#3- Gas Arabian Services eyes main market listing: Nomu-listed Gas Arabian Services is making its move up the capital markets ladder, formally submitting a request to transition to the main market Tadawul, it said in a filing to the bourse. The company’s share price gained 0.5% to SAR 17.5 at Thursday’s close.

What it takes to make the cut: To transition from Nomu to the main market, a company must have been listed on Nomu for at least two years and satisfy all main market listing conditions — except for market capitalization, where a lower threshold of a SAR 200 mn average over the past six months applies.

#4- GCC economies expected to grow 3.6% this year: The Institute of International Finance (IIF) projects the aggregate real GDP of GCC countries to expand by 3.6% this year, notably up from the 2% growth recorded in 2024, according to a recent report by the institute picked up by Khaleej Times. This significant acceleration is driven by higher oil production and continued expansion in non-oil sectors.

The IIF expects non-resident private capital inflows into the Gulf economies to hit USD 202 bn this year, further increasing to USD 217 bn in 2026. This increase will be largely fueled by sustained growth in foreign direct investment (FDI) in the UAE and portfolio debt flows in Saudi Arabia. The IIF also sees net capital outflows in the Gulf dropping to USD 12 bn in 2025, significantly below its USD 279 bn peak registered in 2022, which it attributed to a dip in aggregated current account surplus.

#5- Oil, gold, sugar, rice, and oils are lined up to be the first commodities to trade on the upcoming local commodities exchange, Target Investment Group Chairman Noureldin Mohamed told Asharq Business last Thursday (watch, runtime: 5:29). While prices would still follow global trends, local factors such as the exchange rate, geographical risks, and shipping disruptions would also influence pricing.

REMEMBER- The Industry and Mineral Resources Ministry announced last week that it’s working to establish a commodities exchange in Riyadh to reduce reliance on global market prices. The exchange will help local producers to get fair prices based on domestic supply and demand, creating a regulated market for buyers and sellers.

#6- Stock market poised for a rebound? The Saudi exchange is experiencing “unjustified” negativity and is actually very attractive at its current valuations, Rassanah Capital’s CEO Abdullah Al Rabdi told Al Arabiya last Thursday. Al Rabdi attributed the current pessimistic investor sentiment to the ongoing corporate earnings season and the impact of geopolitical events. He expects an upward price correction in the near future, which could be accelerated by potential interest rate cuts.

The rationale: Al Rabdi highlighted strong market fundamentals, pointing to the market’s price-to-earnings ratio being at a five-year low, and describing banknote dividend yields from major companies like STC, Al Rajhi Bank, and Aramco as “excellent,” often exceeding 6%. The Saudi market has also underperformed global peers like the US, suggesting significant room for recovery.

CABINET WATCH-

A new mandate and structure for the General Organization for Irrigation (GOI) was approved, establishing the agency as an independent body responsible for regulating and monitoring businesses and services related to irrigation, dams, and treated water reuse, according to the official gazette. The agency received Cabinet approval last week.

How is it governed and funded? The GOI will be governed by a board of directors headed by the Environment, Water, and Agriculture Minister, with funds coming directly from the state budget, remuneration for services provided, ROI, external donors, and special Cabinet allocations.

OIL WATCH-

The Kingdom’s seaborne oil exports averaged 6.43 mn bbl / d in the first half of July, potentially marking a 16-month high if the pace holds, according to preliminary data from Bloomberg. However, the figures are based on only two weeks of data, and the final monthly average may be lower. The elevated shipments likely reflect the tail end of June’s production increase and the Kingdom’s increased output quota under its July Opec agreement.

The increased shipments were mostly Asia-bound: Exports to China rose to 2.1 mn bbl / d, and if sustained, would mark the highest monthly level since the production surge of April 2020. Shipments to India also climbed and could reach their highest level since December 2022. Meanwhile, flows to Egypt’s Sumed pipeline fell to their lowest level YTD.

In line with the year’s trend: The four-week average stood at 6.2 mn bbl / d, aligning with the YTD average as weaker late-June flows offset the early-July surge — part of a broader pattern of higher shipments in the first half of the month observed throughout the year.

REMEMBER- Opec’s latest report kept Saudi Arabia’s June production within its quota by citing a figure just shy of 9.4 mn bbl / d, using a “supply-to-market” metric instead of the usual wellhead production figures. The change followed a request from the Energy Ministry and stated that the extra oil produced due to geopolitical tensions went into storage and did not reach the market.

SPORTS-

#1- The Green Falcons will compete for the 2026 World Cup ticket at home, hosting Indonesia and Iraq in Asia’s preliminaries between 8-14 October, Reuters reported last week. This marks the seventh time the Saudi national team has attempted to qualify for the World Cup since 1994.

The details: We’ll go against Indonesia on 8 October, before facing off against Iraq on 14 October. Runners-up will get a second chance playing a home-and-away final play-off between 13-18 November to qualify for the World Cup.

#2- Al Nassr appointed Portuguese former player Jose Semedo as acting CEO, the club said on X on Friday. Semedo, who has been working with the club for the past two years, is stepping in to help improve coordination during pre-season, Asharq Al Awsat reports. He has already started his duties and attended the first training session under new head coach Luis Castro.

***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-

Trump’s lawsuit against the Wall Street Journal is dominating global headlines this morning: US President Donald Trump has filed a USD 10 bn defamation lawsuit against the Wall Street Journal, its owner Rupert Murdoch, Dow Jones, and News Corp after the newspaper published claims that Trump had contributed a suggestive letter to a scrapbook for Jeffrey Epstein’s 50th birthday, marking his most aggressive legal challenge to media coverage since entering office. Reactions to the WSJ report and lawsuit have been sharply divided — even within Trump’s base. (Reuters | Bloomberg | Financial Times | New York Times | The Guardian)

AND- Trump wants higher tariffs on EU goods: Trump is pushing for a 15-20% baseline tariff on EU imports, in an aggressive turn that could derail talks ahead of his self-imposed 1 August deadline, writes the Financial Times, citing sources familiar with the matter. Trump is also unwilling to lower 25% auto tariffs and “would be happy to keep duties on the sector,” according to the sources. The EU, which has already faced steep US duties on steel and aluminum, appears divided on countermeasures.

Tags: