Good morning, wonderful people. We trust you made the most of the short holiday before we dive back into the relentless pace of the market.

In today’s issue: OECD’s latest forecasts for Saudi’s economy, three sewage plants come online courtesy of Spain’s Acciona, and so many figures from Gastat on maritime transport and construction costs. Let’s dive in.

IN MEMORIAM-

The Kingdom’s Grand Mufti, Sheikh Abdulaziz bin Abdullah Al Al Sheikh, passed awayyesterday at the age of 84. He had been holding the position since 1999, alongside other prominent roles, including the General President of Scholarly Research and Ifta, and Chairman of the Supreme Council of the Muslim World League

The main funeral prayer was held yesterday at the Imam Turki bin Abdullah Mosque in Riyadh. Prayers in absentia took place at the Grand Mosque in Makkah, the Prophet’s Mosque in Madinah, and all mosques across the Kingdom. King Salman and Crown Prince Mohammed bin Salman extended their condolences.

HAPPENING TODAY-

Schneider Electric’s Innovation Summit kicks off today at the Hilton Riyadh Hotel and Residences. The two-day summit — themed “Impact Today for a Better Tomorrow” — is expected to draw more than 2k participants, including government officials, diplomats, industry leaders, and entrepreneurs, to discuss energy efficiency, digital transformation, and sustainability.

WEATHER- Thunderstorms and scattered showers are set to linger across much of the Kingdom today, potentially bringing strong winds, dust and reduced visibility. Moderate to heavy rainfall is expected in Makkah, Al Baha, and Asir, where downpours could lead to localized flooding. Lighter rainfall is expected in Riyadh, Madinah, Najran, Qassim, Hail, and the Eastern Region.

  • Riyadh: 40°C high / 29°C low,
  • Jeddah: 38°C high / 33°C low
  • Makkah: 43°C high / 33°C low.

PSAs-

Qiddiya train project opens for bids: The Royal Commission for Riyadh, in partnership with the National Center for Privatization and Qiddiya Investment Company, opened registration for companies to participate in the first phase of the Qiddiya High-Speed Train under a public-private partnership model, the commission said in a statement on Monday. The project will link King Salman International Airport, the King Abdullah Financial District (KAFD), and Qiddiya City in around 30 minutes, with trains reaching speeds of up to 250 km/h.

WATCH THIS SPACE-

#1- The Capital Market Authority (CMA) is nearing a decision to lift the 49% cap on foreign ownership in locally listed companies, potentially allowing overseas investors to hold majority stakes for the first time, the regulator’s board member Abdulaziz Abdulmohsen Binhassan told Bloomberg yesterday. The size of the stake foreigners will be allowed to own was not specified, and the decision still needs approval from other government entities, according to Binhassan.

The rationale: The reform is designed to boost Saudi stocks’ weighting in global benchmarks such as the MSCI Emerging Markets Index, drawing more international capital. It also seeks to revive the Saudi stock market, down 9.6% this year, and support financing for the Kingdom’s diversification agenda.

Could be soon: “I think we’re almost there. It could come into effect before the end of the year,” he said.

REMEMBER- Last month, the CMA introduced rules allowing foreign individuals and firms to invest directly in Saudi securities, debt, and funds, while capping single foreign ownership at 10% and total foreign holdings at 49% per listed company.

#2- Alwaleed bin Talal upped his stake in US-based social media and tech company Snap, buying 15.2 mn shares, Bloomberg reports, citing an email confirmation from Bin Talal that did not specify the size of the transaction or the rationale. The newly purchased shares were valued at USD 133.5 mn based on Snap’s stock price on Monday morning, bringing his total stake to 40.8 mn shares, or roughly 2.8% of the company, according to Bloomberg.

Rough times: The b’naire prince’s investment comes as Snap faces slowing sales, fierce competition from TikTok, Instagram, and YouTube, and a stock that’s lost nearly 90% of its value since peaking in 2021. Alwaleed, who chairs Kingdom Holding Co. and ranks as the 156th richest person in the world with an estimated fortune of USD 16.5 bn, has been invested in Snap since 2018.

#3- Saudi is at the center of BYD’s gulf expansion: Chinese automaker BYD plans to rollout between 500 and 1k ultra-fast EV chargers across Saudi Arabia and the UAE within two years, Vice President Stella Li told Asharq Business. The 1 MW chargers can deliver enough energy for 400 km of driving in just five minutes.

Showrooms, buses, and more: BYD plans to establish advanced showrooms in Saudi, while also supplying the market with electric transport buses. The company could help the kingdom electrify its entire bus fleet within three to five years, offering a “bus-as-a-service” model that allows monthly payments to ease financing, Li said.

Partnerships are also on the agenda: BYD is open to working with Aramco and Saudi initiatives such as Saudi Green, offering bundled solutions including solar, battery storage, and clean-powered bus stations. The company also intends to invest in research and development in the country, bringing engineers to develop autonomous driving and AI tech locally, Li added. Local manufacturing could also follow if the environment proves favorable.

BYD has local ties: The Electric Vehicle Infrastructure Company (EVIQ), a JV between the PIF and the Saudi Electricity Company, partnered with BYD’s agent in Saudi Arabia Al-Futtaim Electric Mobility to build public high-speed EV charging stations at BYD Al-Futtaim Electric Mobility locations across the Kingdom earlier this year.

REMEMBER- Saudi Arabia aims for 30% of all vehicles in its capital to be electric by 2030.

#4- MedGulf is one step closer to finalizing its merger with Buruj, after it secured approval from the Capital Market Authority (CMA) to raise its capital to SAR 1.38 bn, up from SAR 1.05 bn, according to a statement. The transaction will see MedGulf issue 33.16 mn new shares to Buruj shareholders in exchange for all of Buruj’s assets and liabilities.

REMEMBER- The transaction values Buruj at SAR 584.6 mn, and will create the fourth-largest ins. player in the Kingdom by gross written premiums (GWP), with a combined SAR 4.1 bn in GWP and an estimated 5.4% market share based on 2024 data. Buruj’s shares will be delisted from Tadawul and new MedGulf shares allocated to Buruj shareholders following approvals.

#5- Negotiations for Saudi Aramco to purchase a minority stake in the renewables arm of Spain’s Repsol have broken down, Reuters reported on Monday, citing two unnamed sources it said are familiar with the matter. The proposed EUR 1 bn (USD 1.2 bn) transaction, reported back in May 2024, has stalled, with no plans to revive talks at this stage.

REMEMBER- Aramco is set to partner with Repsol to develop a sustainable aviation fuel demonstration project in Neom by 2025.

#6- Industrial and mining player Saleh Abdulaziz Al Rashed & Sons Co. is gearing up to list 30% of its share capital, or 5.58 mn shares, on Tadawul, after it had secured approval from the Capital Market Authority (CMA), according to a statement. The approval is valid for six months and will lapse if the listing and share sale are not completed within that timeframe.

OIL WATCH-

Saudi crude oil exports in July fell to their lowest level in four months, dropping to 5.99 mn bbl / d from 6.14 mn bbl / d in June, Reuters reports, citing data from the Joint Organization Data Initiative (JODI). Crude production slipped to 9.20 mn bbl / d in July from 9.75 mn bbl / d a month earlier, while refinery intake rose 10% m-o-m to 2.98 mn bbl / d. Direct crude burn dropped from 674k bbl / d to 608 bbl / d over the same period.

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THE BIG STORY ABROAD-

Global headlines this morning are focused on Trump’s latest regarding the Russia-Ukraine war. In a sharp shift from earlier comments urging territorial concessions, US President Donald Trump said that Kyiv could “win all of Ukraine back” shortly after meeting Ukrainian President Volodymyr Zelenskiy on the sidelines of the UN General Assembly. “With time, patience, and the financial support of Europe and, in particular, NATO, the original Borders from where this War started, is very much an option,” Trump wrote in a post on his Truth Social platform. (Reuters | Associated Press | Financial TImes | The Guardian | BBC | Washington Post | Axios)

AND IN MARKETS NEWS- Fed boss Jay Powell cooled Wall Street’s hopes for a rapid easing cycle, warning that while last week’s 25 bps cut took some pressure off the job market, moving too aggressively could leave the inflation fight unfinished. He flagged upside risks to prices and downside risks to employment, striking a more cautious tone. US equities slipped on the remarks — the tech-heavy Nasdaq led declines, falling 1.0%, with Nvidia down 2.8%, while the S&P 500 shed 0.6%. (Financial Times | CNBC | The Guardian | CNN | New York Times | Reuters | Bloomberg)

ALSO WORTH READING THIS MORNING– Bloomberg takes a deep dive into how researchers and campaigners who warned of superintelligent systems wiping out humanity are losing clout as tech giants race ahead.

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