Good morning. It’s a brand new day with a busier-than-usual issue, featuring forecasts from Riyad Capital for our macroeconomic situation, a newly-launched SAR 7.8 bn project from the National Housing Company, and the latest steps towards listing Wajd Life and Sign World on Nomu. Let’s dive in.

HAPPENING TODAY-

The subscription window for Rawabi Marketing International’s IPO on Tadawul’s parallel market Nomu opens today, Tadawul said on X yesterday. Qualified investors are allowed to book up to 775k shares each, with the minimum subscription limit set at 10. Final allocations will be made on Sunday, 7 September.

REFRESHER- The IPO was priced at SAR 35 per share, with the firm poised to raise SAR 35 mn in proceeds, implying a market cap of SAR 542.6 mn at listing, according to our calculations. The firm is offering 1 mn shares to fund its expansion plan, which centers on building two new warehouses in Dammam and Jeddah

WEATHER- Thunderstorms and heavy rain are to continue over Jazan, Asir, Al Baha, Madinah, and Makkah today, with light to moderate showers expected in Najran, Riyadh, and the Eastern Province. Riyadh is expected to see a high of 43°C and a low of 32°C today, while Jeddah’s mercury will peak at 37°C and bottom out at 32°C. Makkah will see a 37°C high and 31°C low.

CABINET WATCH-

A new law for real estate expropriation for public interest and temporary seizure was approved by the Cabinet yesterday, according to the Official Gazette. The full text is set to be published in the Gazette soon.

What we know: Valuation of expropriated properties will be done by certified appraisers accredited by the Saudi Authority for Accredited Valuers (TAQEEM), plus 20% as compensation, Argaam quoted Governor of the State Properties General Authority Abdulrehman Al Harkan as saying. Temporary seizure will be compensated by fair rental value plus 20%, Al Harkan added.

ALSO- The meeting, chaired by King Salman bin Abdulaziz Al Saud, saw the approval of a new development strategy for Aseer, as well as greenlighting a number of cooperation MoUs.

WATCH THIS SPACE-

#1- Humain began developing its first data centers in Saudi Arabia with an expected launch in early 2026, CEO Tareq Amin told Bloomberg. Facilities in Riyadh and Dammam are slated to go online in 2Q 2026, each with an initial capacity of 100 MW.

The PIF-owned AI company plans to source semiconductors for its data centers from US manufacturers and has already secured regulatory clearance to acquire 18k of Nvidia’s newest chips, Amin said. The company will seek the US government approval for delivery soon, he added.

Humain is also set to launch a computer with built-in AI in the coming months, developed by the company’s engineers, Deputy CEO and Data & AI Models President Yaser Al Onaizan told Asharq yesterday (watch, runtime: 12:44). The company also plans to launch USD 10 bn fund to support tech startups and strengthen local expertise, as part of a larger strategy to partner with leading AI firms while investing or acquiring specialized companies absent from the local market, Al Onaizan said.

Humain is working with multiple US tech firms to build AI infrastructure, including a planned USD 10 bn JV with AMD. In addition, it is in early talks with Elon Musk’s xAI on a Saudi data center project, and it plans to jointly develop 500 MW of AI data centers with Nvidia over five years. The firm aims to add 1.9 GW of data center capacity by 2030.

The company is also partnering with California-based Groq to scale up its Arabic AI chatbot, Humain Chat, currently available only in Saudi Arabia but set to expand across the Middle East in October.

#2- BSF opens books on int’l tier 2 issuance: Tadawul-listed lender Banque Saudi Fransi (BSF) kicked off the issuance of USD-denominated tier 2 (AT2) capital notes yesterday, open to both local and international investors, with the offer period due to end today, according to a disclosure to the bourse. This comes a little over three months after it closed a USD 650 mn issuance of perpetual additional tier 1 (AT1) bonds.

About the offering: The notes carry a 10-year maturity and a five-year call, with size, yield, and final terms set to be determined based on market conditions. The Reg S-compliant paper falls under the bank’s medium-term note program. The paper is set to be listed on the London Stock Exchange.

ADVISORS- BSF tapped our friends at HSBC and Mashreq, alongside Abu Dhabi Commercial Bank, Citigroup Global Markets, DBS Bank, Emirates NBD Bank, Mizuho International, and Saudi Fransi Capital as joint lead managers on the transaction.

#3- Advanced Communications and Electronics Systems Company (Aces) is considering selling a stake, Bloomberg reported yesterday, citing people it said are familiar with the matter. The company — owned by its founders and Riyadh-based investment platform Ewpartners — hired EFG Hermes to advise on the potential transaction. Talks are still ongoing, and no final decision has been made, but both private equity firms and strategic investors have shown interest, according to the sources.

About Aces: The company provides services for telecom operators, airports, metros and stadiums across the region, sharing its digital networks with third-party providers.

DATA POINTS-

The Small and Medium Enterprises Loan Guarantee Program (Kafalah) has backed over SAR 304 mn in funding for 94 entertainment facilities as of 2Q 2025, Kafalah posted on X. The second quarter alone saw 32 facilities join the program, up 78% y-o-y, Alarabiya reported yesterday, citing Kafalah data.

OIL WATCH-

Saudi Arabia received some 1.1 mn tons of fuel oil and vacuum gas oil (VGO) from Russian ports in July, a marginal change from June, Reuters reports, citing traders and LSEG data. Meanwhile, India’s imports of the same products from Russia jumped 65% m-o-m in July to 600k tons.

Saudi Arabia’s power plants ramped up their use of high-sulphur fuel oil and crude during the summer months to cover peak demand, which is driven by high AC loads.

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THE BIG STORY ABROAD-

The fight over the Federal Reserve is taking over the front pages this morning, along with more tariff news and the ripples of the Gaza war in the world of investment and tech.

Not without a fight: Ousted governor Lisa Cook said she will not accept President Trump’s decision to fire her from the board. Cook is filing a lawsuit against the decision, the first of its kind in the independent institution’s history, with her lawyer arguing the alleged “deceitful and potential criminal conduct,” as Trump put it in his posts, has no basis in facts or law. Trump said yesterday he has a list of replacement candidates ready, and he is looking forward to having “a majority very shortly” on the Fed’s board.

US tariffs on India to go up: Additional tariffs amounting to 25% on India’s exports to the US are set to takeeffect today, after a showdown between Washington and Delhi over oil purchases from Russia failed to lead to a trade agreement. The US is India’s largest export partner, with over USD 86.5 bn in goods (some 20% of the total) exported to the US in the last fiscal year.

AND- The world’s largest sovereign wealth fund in Norway divested from manufacturingbehemoth Caterpillar and five Israeli banks over ties to Israel’s unlawful activities in the West Bank. The fund had a USD 2.4 bn stake in Caterpillar by the end of 2024.

ALSO WORTH READING- Microsoft has reportedly enlisted the help of the FBI to track internal protesting over its ties with Israel, following a steady trickle of employee activism targeting its executives. (Bloomberg)

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