Good morning, everyone, and happy THURSDAY. The Fed has decided to hold interest rates steady, defying Trump’s constant pressure since he took office earlier this year. The decision saw a rare occurrence of dissent, however, signaling that Donald’s influence on the independent institution holds some weight. We have the details in today’s Planet Finance.

On the home front: It’s a hot but calm summer morning in the Kingdom, with the big story featuring VA Tech Wabag’s SAR 1 bn contract to build the Yanbu desalination plant. We also sat down for a coffee with Mostafa Gad, head of investment banking at EFG Holding, to break down what’s behind the momentum behind Saudi’s IPO market.

ALSO- This week’s My Morning Routine features Mohamed Milyani, founder and CEO of Nqoodlet. We discussed Milyani’s unique management style, his Chief Happiness Officer™, and Nqoodlet’s financial operating system for Saudi SMEs.

HAPPENING TODAY-

#1- The Kingdom’s statistics agency Gastat is set to release 2Q 2025’s GDP flash estimate today, according to the authority’s calendar. Revised GDP growth in 1Q came in at 3.4% y-o-y, on the back of a 4.9% increase in non-oil activity.

#2- E-invoicing deadlines: Today is the last chance for companies with more than SAR 2.5 mn in revenues subject to VAT in 2022 or 2023 and those that had SAR 40 mn in revenues from goods and services in June and 2Q 2025 to integrate their e-invoicing solutions with Fatoora.

WEATHER- Riyadh will blaze under the desert sun tomorrow, with highs hitting 45°C before easing to 35°C after dark. Jeddah’s coastal heat will peak at 41°C, slipping to a gentler 34°C later in the day. Over in Makkah, the mercury will climb to 42°C, then taper to 35°C by nightfall.

PSAs-

#1- Retailers and wholesalers selling non-food items in the Kingdom must comply with the updated licensing regulations, the Municipal and Rural Affairs Ministry said in a post on X. The new rules apply to outlets selling products like clothing, perfumes, shoes, and stationery, setting minimum space requirements of 24 sqm for standard shops, 2 sqm for kiosks in malls or markets, and 10 sqm for kiosks on commercial or mixed-use land plots.

#2- The Cabinet approved the new Statistics Law, according to the General Authority for Statistics’s statement. The law — replacing the General Statistics Law and the General Population Census Law — establishes a modern framework to improve the quality, transparency, and use of statistics across public and private sectors in line with international standards.

WATCH THIS SPACE-

A shake up at the Kingdom’s biggest pension fund? Hassana Investment Co. is set to overhaul its senior management team, Semafor reports, citing sources it says are in the know. The fund tapped Hani Al Jehani as CEO to succeed Saad Al Fadly, who left earlier this month, with Al Jehani being considered for the permanent position among several other candidates, according to the sources.

Other appointments and reshuffles are expected once a CEO is picked to make up for several recent departures, including senior adviser Paul Sweeting, Chief Risk Officer Maram Alnumay, Chief Investment Officer for regional markets Ahmed Al Qahtani, and Head of Local Public Equity Ahmed Al Humaidan.

More are leaving: Chief Strategy Officer Hamza Khushaim and general counsel Shaima Bakhsh are also expected to leave Hassana by the end of August, the sources said.

Hassana — established in 2009 as the investment arm of the General Organization for Social Insurance — manages over USD 320 bn in assets. The fund has since then been tasked with helping to attract foreign managers to the kingdom to fuel economic diversification, according to Semafor.

Arabian Drilling is looking to expand outside of the Kingdom to bypass long-term offshore suspensions, CEO Ghassan Mirdad told Al Arabiya (watch, runtime: 8:08). The company is adopting a two-pronged expansion approach, including direct contracts and an alliance with Shelf Company, which resulted in 8 to 10 additional tenders.

IN CONTEXT- Two of Arabian Drilling’s offshore platforms are currently suspended, but utilization could return to 100% if a new contract is signed in 2H 2025, Mirdad said. Suspended onshore rigs are expected to resume operations in Saudi Arabia before the end of 2025.

REMEMBER- Arabian Drilling saw its net income drop 65% y-o-y to SAR 7 mn in 2Q 2025. This came on the back of a decline in rig utilization to 79% from 91% in 2Q last year due to the suspension of several onshore and offshore rigs, along with increased finance expenses from higher debt. To preserve liquidity for its expansion, the company’s board is pausing dividend payouts for the year.

DATA POINTS-

#1- Consumer spending via point-of-sale (PoS) transactions in the Kingdom fell 2.7% w-o-w in the week ending 26 July, reaching nearly SAR 11.9 bn, according to the Saudi Central Bank’s weekly report (pdf). The number of weekly transactions also dropped 2.9% w-o-w to around 206.5 mn during the week.

The details: Food and beverages made up the bulk of consumers’ spending during the week in terms of value, despite slightly dropping 1.8% w-o-w to around SAR 1.7 bn. Restaurants and cafés came in second place, falling 2.4% w-o-w to over SAR 1.5 bn. This was followed by transportation, which dropped 2.2% w-o-w to nearly SAR 945.8 mn, and professional and business services, which declined 3.3% w-o-w to around SAR 931.2 mn. Gas stations spending, inched down 2.1% w-o-w to nearly SAR 886.4 mn, while healthcare shed 4.1% w-o-w to nearly SAR 837.2 mn.

Riyadh had the highest value of PoS transactions at about SAR 4.1 bn, followed by Jeddah at around SAR 1.7 bn.

#2- The Industry and Mineral Resources Ministry issued 23 new mining licenses in June 2025, including 10 for exploration, six for building materials quarry, three for reconnaissance, two for exploitation, and two for surplus mineral ore, the ministry said on X yesterday. The total active mining licenses in the Kingdom currently stand at a little over 2.4k.

#3- Financing backed by the Enterprise Loan Guarantee Program (Kafalah) hit SAR 9 bn in 1H 2025, up 8% y-o-y, according to Kafalah’s post on X. A total of 3k SMEs benefited during the period, marking a 10% increase compared to the same time last year, with SAR 6.6 bn in guarantees issued, up 6% y-o-y.

SPORTS-

#1- Surj joins forces with Leejam Sports: Sports investor Surj Sports Investment and Fitness Time operator Leejam Sports signed an MoU that will see them collaborate on joint facility operations, co-investment in sports properties, community events, and technology and media integration, Surj said in a press release yesterday.

#2- Neom SC reportedly reached an agreement with AS Monaco to sign 19-year-old Saïmon Bouabré in a transfer worth EUR 10 mn plus EUR 2 mn in bonuses, sports reporter Frabrizio Romano saidon X. The transfer completion rests on the French player agreeing to personal contract terms with Neom.

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THE BIG STORY ABROAD-

The US’ latest trade agreements ahead of tomorrow’s deadline are still getting top billing in the foreign press, along with a handful of Big Tech earnings and fresh sanctions on Iran.

#1- The US and South Korea reached a trade agreement, setting a 15% tariff on South Korean exports to the US, in exchange for USD 350 bn in investments in US-owned projects selected by US President Donald Trump, Trump said on Truth Social. This is in addition to USD 100 bn in energy investments in the US. This follows a similar structure to the agreement with the UK and Japan, which also pledged investments in exchange for lower tariffs. (Reuters | Bloomberg | Financial Times | Politico | Axios)

Not yet as lucky? India, which could face a 25% tariff on its exports to the US as of tomorrow if ongoing talks end with no agreement. (Bloomberg | Guardian)

ALSO- The US economy rebounded in 2Q 2025, growing 3% after contracting in the first quarter of the year, on the back of strong consumer spending and a turnaround in the trade balance. (CNBC | Wall Street Journal | Bloomberg)

#2- Microsoft and Meta are both spending big on AI, after reporting strong quarterly earnings. Microsoft, which is set to become the second company to reach a market cap of USD 4 tn, is penciling in USD 30 bn in capital expenditures in its first quarter of its fiscal year, while Meta pledged to spend more from its advertising revenues well into 2026. Both companies’ shares rose more than 9% in afterhours trading on the news. (CNBC | Financial Times | Bloomberg | Reuters)

#3- The US doubled down on its pressure campaign on Iran with sweeping new sanctions on 115-linked Iranian individuals and businesses, broadly targeting the shipping business of Hossein Shamkhani, the son of senior adviser to Supreme Leader Ayatollah Ali Khamenei. (Bloomberg | Reuters)

#4- ALSO- Canada is now the latest to pledge recognition of the Palestinian state at September’s UN summit, following in the footsteps of France and the UK. (Bloomberg)

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