Good morning, wonderful people. We’re sliding into the weekend with a jam-packed issue, courtesy of Money 20/20 going out with a bang, along with a big helping of updates from debt markets and beyond.

The Saudi Central Bank cut interest rates for the first time this year, lowering them by 25 bps in line with the US Federal Reserve’s move in its meeting yesterday, according to a statement. The repo rate is now at 4.75% and the reverse repo rate is at 4.25%.

The Fed’s move is welcome news for many, including both the Gulf and US President Donald Trump. Lower rates mean cheaper debt, which would come at a time when Saudi Arabia’s financing needs are at an all-time high as it looks to fund major national projects, and the UAE continues its drive to diversify its economy.

While global markets’ response was muted, they had largely priced in the move, with Wall Street mostly flat and seeing small losses. We have more on the Fed’s decision — and what comes next for the Fed, as well as the expected impact on debt and capital markets in the region — in Planet Finance, below.

ALSO WORTH NOTING THIS MORNING- Saudi Arabia inked a strategic mutual defense pact with Pakistan — a move analysts see as Riyadh signaling it wants to diversify its security ties after the shock of last week’s Israeli strikes in Doha. The agreement commits the two countries to treat any attack on one as an attack on both. Saudi officials told the Financial Times the agreement is meant to “reinforce our deterrence” and reflects a broader rethink of Gulf security, as the Saudi Crown Prince hardens his stance on Israel’s war in Gaza and delays any normalization talks with Netanyahu’s government. (Reuters | Washington Post)

HAPPENING TODAY-

Shares of Jamjoom Fashion Trading will begin trading on the Nomu parallel market today, with shares debuting at SAR 145 apiece, according to a bourse disclosure. The company’s shares can fluctuate within a ±30% range for the first three days, after which price fluctuations will be capped at ±10% as circuit breakers take effect.

REFRESHER- The company is taking a 30% stake to Nomu in an offering that was 4.5xoversubscribed, pulling in SAR 1.6 bn in orders. The firm priced its shares at the top of the range it was guiding on — implying SAR 345.7 mn in proceeds. The final price gives Jamjoom a market cap of SAR 1.15 bn at listing, according to our calculations.

WEATHER- Two more days of unclear skies: Thunderstorms and heavy downpours are expected to continue across Makkah, Asir, Jazan, Al Baha and Najran today, while Riyadh and the Eastern Province can expect lighter, steadier showers. Riyadh is expected to see a high of 41°C and a low of 25°C today, while Jeddah’s mercury will go as high as 38°C and as low as 28°C. Makkah will see a 41°C high and 31°C low.

WATCH THIS SPACE-

#1- JPMorgan is looking at placing Saudi Arabia in its emerging markets government bond index (EMGBI), with the bulge bracket bank considering giving the country a 2% weighting on the index, Bloomberg reported. The inclusion could happen “as early as January next year … representing the entry of another meaningful emerging market to that mix,” Emerging Market Corporate Debt co-head at Ninety One Alan Siow told Bloomberg Daybreak (watch, runtime: 4:54). EMGBI tracks local-currency denominated sovereign bond issuances in emerging markets.

Say hello to more capital flows: Inclusion in the index could see Saudi Arabia attracting some USD 5 bn (SAR 18.8 bn) in foreign inflows, according to Zawya. Spreads on Saudi issuances have been declining despite an increase in supply, Siow said. This comes as expectations grow that the Kingdom may return to the market to meet rising funding needs.

The SAR’s inclusion in the index would, in some ways, mirror China’s previous inclusion in the index, Siow said, noting that while the two markets are very different, both signal an early-stage opening of large domestic debt markets to international investors.

#2- Taiwan-based tech firm Foxconn plans for its Saudi Arabian JV Smart Mobility to begin building its first Middle East factory in December to produce electric vehicle chargers, with production set to start in 2026, Reuters reports. The JV was first announced in November.

#3- The Shura Council approved the draft Unified Industrial Regulatory Law of GCC countries, during its first and second regular sessions of the new legislative year, according to two separate statements released on Tuesday. Council members called for faster ins. claims processing, integrated digital health files, clearer performance indicators to measure beneficiary satisfaction, regional competitiveness monitoring, and new financial tracks to support community-based innovation.

#4- Smart parking company Samara Group plans to launch the largest smart parking project in the Kingdom and the Middle East next month in Riyadh with 800 parking spots, Mohamed Althaqfi, one of the group’s owners, told Aleqtisadiah yesterday. The company aims to expand its network to 10k–15k smart parking spots by 2030 and launch its first local factory within four years.

DATA POINTS-

#1- Consumer spending via point-of-sale (PoS) transactions in the Kingdom fell 12.3% w-o-w in the week ending 13 September, reaching SAR 13.1 bn, according to the Saudi Central Bank’s weekly report (pdf). The number of weekly transactions also declined 4.7% w-o-w to about 231.1 mn during the week.

The details: Food and beverages accounted for the largest share of consumer spending despite dropping 13.1% w-o-w to just under SAR 2.0 bn. Restaurants and cafes followed, down 6.1% w-o-w to just under SAR 1.6 bn. Transportation spending dropped 8.1% to SAR 966.8 mn, while professional and business services declined 13.8% to SAR 912.6 mn.

Riyadh recorded the highest value of PoS transactions at SAR 4.7 bn, followed by Jeddah at SAR 1.9 bn.

#2- The Kingdom led debt issuance activity in the region during 1H 2025, with total issuances reaching USD 55 bn, up from USD 49 bn in all of 2024, head of CEEMEA Debt Capital Markets at HSBC Khalid Darwish told Al Arabiya (watch, runtime: 7:43). Major subscriptions to Aramco, the Finance Ministry, and the Public Investment Fund exceeded four to five times the amount offered.

HSBC expects issuance momentum to continue in 2026, with refinancing of first- and second-tranche debt likely to reach around USD 15 bn, much of it in the Kingdom, depending on market conditions and interest rates.

#3- Saudi Arabia’s cybersecurity market grew 14% in 2024, bringing the sector’s total spending to SAR 15.2 bn, the National Cybersecurity Authority said in a statement yesterday. Public sector spending amounted to SAR 4.8 bn (32% of the market), while private sector spending totaled SAR 10.3 bn, accounting for the remaining 68% of the market. The sector contributed SAR 18.5 bn to GDP — SAR 9 bn directly and SAR 9.5 bn indirectly — representing 0.40% of total GDP and 0.71% of non-oil GDP.

#4- The Absher platform processed over 41.1 mn digital transactions in August, the Interior Ministry said in a press release. Individuals completed more than 38.4 mn transactions, including 3.8 mn via digital wallets, while businesses carried out nearly 2.7 mn transactions.

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THE BIG STORY ABROAD-

Global headlines this morning are zeroing in on the Fed’s first rate cut since December — a 25 bps move designed to shore up a labor market showing clear signs of strain. The cut fell short of the deeper reductions pushed by President Donald Trump. We have the full breakdown of the Fed’s move and what to expect next in Planet Finance, below. (Reuters | Bloomberg | Financial Times | New York Times | Wall Street Journal)

MEANWHILE IN WINDSOR- Trump’s second state visit to Britain entered full pageantry mode yesterday, as King Charles welcomed the US president with the country’s largest ceremonial reception in living memory. A carriage procession, banquet at Windsor Castle, and royal tributes to the “special relationship” framed the day — while Trump vowed to deepen trade and diplomatic ties. Today the focus shifts to geopolitics and trade talks at Chequers. (Reuters | Associated Press | BBC | The Guardian | New York Times | Bloomberg | Financial Times)

WORTH READING THIS MORNING- The number of b’naires worldwide has ballooned from just 140 in 1987 to more than 3k worth a combined USD 16 tn today, with the top 0.0001% of the population seeing their wealth grow more than twice as fast as average adults over the past three decades, writes the Financial Times. Economists like Gabriel Zucman say the rise of a hyper-elite underscores governments’ difficulty in taxing vast pools of private wealth — prompting renewed debate over global wealth taxes and exit taxes as the super-rich become ever more mobile.

CIRCLE YOUR CALENDAR-

The Saudi Rail International will take place between 19-20 October at the Riyadh Front Exhibition and Conference Center. The two-day event will bring together local and global players to explore the latest trends of the railway and transport industry.

The Sports Investment Forum will run between 3-5 May 2026 in Riyadh. The three-day event will feature panel discussions, specialized workshops, a dedicated exhibition, and an agreement-signing platform. It will also feature a full day dedicated to the theme of “women and sports” to explore female participation and community engagement.

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