Good morning ladies and gentlemen, and welcome to what has proven to be a relatively calm end to the week.

AT THE TOP OF OUR NEWSWELL this morning is the rise of Gulf issuance in China, as Asian investors pivot away from US debt and look towards diversifying their bonds amid policy uncertainty and headwinds.

PLUS- We had a chat with CI Capital KSA CEO Fahd Al Tarzi about his morning routine and what his role looks like at the financial services firm.

** A QUICK PROGRAMMING NOTE- EnterpriseAM KSA will not be publishing on Sunday, Monday, and Tuesday next week, as we gather our editorial team for a company offsite to plan and work on what’s next for EnterpriseAM. We’ll be back in your inboxes at the usual hour on Wednesday.

The Saudi central bank cut interest rates for the third time this year, lowering them by 25 bps in line with the US Federal Reserve’s move in its meeting yesterday, Sama said in a statement overnight. The repo rate was cut to 4.25%, while the reverse repo rate is now set at 3.75%.

We have more on what drove the Fed’s decision and what’s coming next in this morning’s Planet Finance, below.

WEATHER- Thunder and rain aren’t clearing up just yet across Asir, Al Baha, Jazan, Makkah, parts of Riyadh, the Eastern Province, Hail, and Qassim. Moderate to locally heavy downpours are expected over highlands and coastal areas, accompanied at times by strong downdrafts winds that may stir up dust and sharply reduce visibility. Valleys and low-lying areas remain vulnerable to sudden runoff and flash flooding.

  • Riyadh: 27°C high / 17°C low,
  • Jeddah: 27°C high / 23°C low
  • Makkah: 26°C high / 22°C low
  • Dammam: 27°C high / 20°C low.

WATCH THIS SPACE-

#1- PIF-backed Lucid Group is flagging a drop-off in EV demand across the US and Europe, CEO Mark Winterhoff told Bloomberg. The company remains partially shielded by its existing backlog, but there “definitely” remains a broader market slowdown, Winterhoff said. Lucid is on track to produce some 18k vehicles this year, matching the lower end of its previously stated forecast. Lucid’s shares are down 57% YTD.

Construction wrapped up for Lucid’s factory in King Abdullah Economic City, with equipment installation and testing underway, the EV manufacturer’s Middle East President Faisal Sultan told Asharq Business. The first Saudi-made vehicle is expected to be produced before the end of next year. The plant will have an annual capacity of 150k units, mostly for export, and will later expand production to include existing models, such as Air and Gravity.

ALSO- Lucid opened a research and development center in Riyadh focused on AI, self-driving technologies, and local vehicle engineering, Winterhoff said. The center will allow the company to diagnose and fix issues locally — reducing the need to send cars to the US — and increase Saudi workforce participation, currently standing at 70%.

#2- The Saudi National Development Fund (NDF) plans to issue international sukuk and bonds within 18-24 months to increase development lending, enhance financing capacity, and support projects that may not attract private sector investment, NDF Governor Stephen Groff told Aleqtisadiah. Issuing debt instruments will not reduce the fund’s capital — which currently stands at some SAR 430 bn — but is expected to improve efficiency and broaden developmental impact, Vice Chairman Mohammed Al Tuwaijri said.

The fund will also introduce noncash tools, such as guarantees and reduced-return incentives to attract local and international capital, Deputy Governor Khalid Sharif said.

#3- Sadirat’s play for chemicals-maker Jana hits a wall: Tadawul-listed Saudi IndustrialExport ’s (Sadirat) planned acquisition of Nama Chemicals ’ subsidiary Jubail Chemical Industries (Jana) stalled after the FAAD Industrial Fund — the vehicle meant to bankroll the transaction — failed to raise the minimum capital required to launch, according to a bourse disclosure. Subscriptions closed below the SAR 215 mn requirement — despite Sadirat’s investment arm Haddaj Investment committing SAR 70 mn to the fund — triggering an automatic cancellation.

More on the buyout that didn’t happen: The SAR 220 mn FAAD Industrial Fund was structured to take a 40% stake in Jana through a SAR 200 mn capital increase. The move would have left Nama with 60% ownership and was expected to start contributing to Sadirat’s earnings as early as 2026.

What now? Haddaj’s commitment remains parked with the fund manager, and any decision on reclaiming or redeploying the capital is on hold until a new board is in place.

IN CONTEXT- The fundraising setback comes in the same week that facilities-management firm EFSIM scrapped its main market IPO during bookbuilding, after indications of demand proved insufficient. While unrelated, both episodes point to a tougher capital-raising backdrop on Tadawul, where weaker sentiment, tighter liquidity, and the usual year-end book-closing cycle are making it harder to build traction behind new offerings.

#4- Ladun greenlights long-flagged move to Tadawul’s big league: Nomu-listed developer LadunInvestment submitted its application to transfer to Tadawul’s main market, according to a bourse filing. The move follows a board decision first announced in October 2023 to pursue an upgrade, which now hinges on CMA and exchange approvals.

It’s been a busy week for Nomu-to-main-market movers: Earlier this week, multi-sector services and construction firm Waja formally filed to shift to the main market, while food group Nofoth submitted its own transition request. This reflects a broader push by small-cap names to graduate to the deeper-liquidity, higher-visibility main board as they seek stronger institutional coverage and index inclusion.

#5- The Saudi Events Investment Fund plans to operate as many as eight entertainment facilities over 3-5 years through a partnership with Legends Global, including conference centers, indoor halls, and equestrian fields, CEO Wahdan Al-Qadi told Asharq Business.

PLUS- The fund is planning projects worth around SAR 8 bn over the next three years, with strong private-sector participation, primarily in Riyadh and Jeddah.

DATA POINTS-

#1- The value of deposits in the Saudi banking sector rose by SAR 205.4 bn in the first 10 months of 2025, reaching SAR 2.9 tn by the end of October, according to the Saudi Central Bank’s (Sama) monthly bulletin (pdf). Time and savings deposits contributed most of the growth, increasing by SAR 210.9 bn, while other quasi-cash deposits rose by SAR 19.8 bn. Demand deposits fell by SAR 25.3 bn during the same period.

On a y-o-y basis, total deposits grew 7% from SAR 2.7 tn in October 2024. Time and savings deposits jumped 19.5% to SAR 1.2 tn, mostly held by companies and individuals (SAR 660.1 bn), with government entities holding SAR 500.6 bn. Other quasi-cash deposits reached SAR 321.8 bn, while foreign-currency deposits stood at SAR 278.4 bn. Demand deposits fell 0.7% to SAR 1.4 tn, mainly due to a 14.8% drop in government-held balances.

On a monthly basis, total deposits declined 1.3% (SAR 37.2 bn) from September’s record high of SAR 2.9 tn. Demand deposits dropped 4.2% to SAR 1.4 tn, while time and savings deposits increased SAR 7.9 bn to SAR 1.2 tn, and other quasi-cash deposits rose SAR 17.4 bn to SAR 321.8 bn.

#2- Consumer spending via point-of-sale (PoS) transactions in the Kingdom declined 4.3% w-o-w in the week ending 6 December, reaching SAR 14.4 bn, according to the Saudi Central Bank’s latest weekly report (pdf). The number of transactions also dipped 1.7% w-o-w to SAR 236.2 mn.

The details: Food and beverages accounted for the largest share of spending during the week, rose only 1.7% w-o-w to SAR 2.3 bn. Restaurants and cafes came in second with a 12.6% w-o-w dip to just under SAR 1.7 bn, followed by apparel, clothing, which saw a drop of 16.3% w-o-w to SAR 1.3 bn. Hotels saw the greatest weekly drop with a 24.5% slip, while education spending soared by 251.3% w-o-w to SAR 218.7 mn.

Riyadh recorded the highest value of PoS transactions at SAR 4.9 bn, followed by Jeddah at SAR 1.9 bn.

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***

THE BIG STORY ABROAD-

One story is on every front page this morning: The US Federal Reserve lowered interest rates by 25 bps to 3.50-3.75%, marking its third cut this year. The decision was the result of a rare 9-3 split vote that exposed divisions over how to steer the economy through tariffs, a labor squeeze, and limited data from the government shutdown. Chair Jerome Powell said the Fed faces “significant downside risks” in the jobs market and inflationary pressures from Trump’s trade policies, urging caution as new data comes in. (Guardian | BBC | CNBC | CNN | Reuters | Bloomberg)

** DIVE DEEPER- We have more on the Fed’s decision in this morning’s Planet Finance, below.

AND- US forces seized a sanctioned oil tanker off Venezuela’s coast, escalating Trump’s pressure campaign against Venezuelan President Nicolás Maduro. The vessel was accused of transporting illicit oil from Venezuela and Iran. (Guardian | BBC | Bloomberg | CNN | Reuters)

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