Good morning. The Finance Ministry unveiled the spending plan for FY2026, as Vision 2030 is going into its third phase spanning the next five years. Spending on diversification efforts is expected to continue unfazed by oil volatility, but financing is set to shift away from capital-intensive construction projects to productive non-oil sectors including industry, AI and tourism. That means deficits are not going away at least until 2028, but at lower and lower levels as per the estimates.

ALSO- Almasar saw a strong debut on Tadawul, closing up over 18% and bucking what has been a bruising year of muted main market IPOs. Let’s dive in.

WATCH THIS SPACE-

#1- Paramount’s Warner Bros. offer has PIF, GCC backing? The latest offer from Paramount Skydance to fully acquire Warner Bros. Discovery is reportedly backed by the Public Investment Fund, the Qatar Investment Authority, and the Abu Dhabi Investment Authority, unnamed sources told Variety. The offer is mostly backed by Oracle co-founder Larry Ellison, while GCC backing is below the threshold that requires foreign investment approval in the US, the sources added.

Not the first time hearing of it: Ellison, who acquired Paramount this year for USD 8 bn, reportedly held preliminary and “active” talks with the PIF and other Gulf investors to secure financing for a potential bid, the Financial Times reported last month. Earlier reports by Variety on Gulf backing were denied by Paramount at the time.

Fierce competition: Ellison’s GCC-backed offer (if true) will reportedly be going up against offers from industry titans Netflix and Comcast. There’s no word yet on details of the rival offers, but sources say Netflix is trying to sweeten the bid by pledging to honor Warner’s agreements to distribute films in theaters in case its offer goes through.

#2- SNB taps global, Asian liquidity as local lenders extend their borrowing streak: Saudi National Bank (SNB) is reportedly lining up a USD 1 bn syndicated loan, mandating DBS Bank and Mitsubishi UFJ Financial (MUFG) to quarterback the five-year facility, Bloomberg reports, citing people it says are familiar with the matter. The transaction is now being syndicated to a wider pool, including Asian lenders, as the kingdom’s banks continue to raise cross-border funding to support the government’s USD 2 tn agenda.

  • The facility will reportedly be priced at 90 bps over SOFR, with the bank targeting participants globally.

IN CONTEXT- Lenders are gearing up for heavier funding needs as Vision 2030 capex continues to outstrip internal resources. S&P Global says domestic banks will have to extend USD 65-75 bn in new loans annually through 2026, mostly to real estate and utilities, and will increasingly rely on external borrowing as deposit growth lags.

A regional funding wave: SNB’s move follows a string of Middle East borrowers turning to Asia for liquidity, with regional entities raising USD 13.5 bn in syndicated loans from Asia Pacific YTD, nearly triple last year’s haul, according to Bloomberg data. Riyad Bank recently secured USD 1.5 bn, largely from Greater China lenders, while Abu Dhabi’s ADQ closed a USD 5 bn facility in October, tapping a similar investor base.

#3- IPO rush continues: Saudi Exchange CEO Mohammed Al Rumaih says more than 40 companies IPO-ed this year and another 40 have already filed applications, Bloomberg reports citing statements he made at the FII Priority Asia Summit in Tokyo. The broader pipeline expands to as many as 100 firms when including companies now tapping advisers.

DATA POINT- Issuers already raised USD 4.5 bn across the main market and Nomu in 2025, the strongest year for IPO proceeds since 2022, led by PIF-backed airline Flynas and Mecca developer Umm Al Qura.

Market conditions are looking unfavorable for newcomers: TASI sits 12% lower YTD, on track for its worst year since 2015. Weak index performance has already slowed PIF-linked listings and weighed on recent debuts — more recently Cherry Trading.

Riyadh is pushing ahead with sweeping market reforms to draw foreign capital, including plans to open equity trading to all overseas investors and lift ownership caps, at a time when high spending and softer oil revenue are widening deficits.

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THE BIG STORY ABROAD-

Russian President Vladimir Putin met US special envoy Steve Witkoff in Moscow to discuss ways to end the war in Ukraine. Putin’s aide Yuri Ushakov described the discussions as “constructive” but said much work remains. The meeting followed US consultations with Ukrainian officials in recent weeks to revise a 28-point peace proposal criticized for favoring Moscow. (Reuters | BBC | Axios | New York Times | CNN | Washington Post)

In Washington, US President Donald Trump said he will announce his nominee for Federal Reserve chair in early 2026, naming White House economic adviser Kevin Hassett as a leading contender to replace Jay Powell when his term ends in May. Trump said the search, which once included about ten candidates, is now “down to one,” though final interviews with senior officials will continue in the coming weeks. The president reiterated his criticism of Powell for not cutting interest rates fast enough. (Financial Times | Reuters | Bloomberg)

Meanwhile in crypto markets, BTC climbed back above the USD 90k mark, rebounding after a steep selloff, Bloomberg reports. The recovery came after the Securities and Exchange Commission signaled plans for an “innovation exemption” for digital asset firms and Vanguard announced it would allow trading of crypto-focused ETFs and mutual funds on its platform. Despite the recovery, sentiment remains fragile with traders staying cautious ahead of next week’s Fed rate decision.

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