Through Damascus

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WHAT WE’RE TRACKING TODAY

THIS MORNING: A Greek Patriot battery intercepts drones over Yanbu?

Good morning. Saudi Arabia’s strategic infrastructure push into Syria is seeing a series of transport, railway, aviation, and data agreements signal Riyadh’s intent to secure new overland and digital routes while reducing its exposure to regional maritime chokepoints. We also examine the aftermath of 2025's IPO boom on Tadawul, where six out of seven listings are trading well below their offer prices — highlighting a growing disconnect between heavy primary-market oversubscription and secondary-market reality.

Happening tomorrow

The fifth edition of the LEAP Tech Conference will kick off in Riyadh tomorrow and run through Thursday (3 September) at the Riyadh Exhibition and Convention Center. The conference will highlight data center, cloud, and chip investments alongside Agentic AI and Arabic-first tech, while addressing talent shortages as a major topic.

Intercepted drones over Yanbu

A Greek-operated Patriot battery in Saudi Arabia intercepted a swarm of drones over the Yanbu region on Thursday, launching three missiles in coordination with Saudi air defenses, Greek security sources told Reuters. It was the third combat use of the system since the US-Israeli war on Iran began. The sources didn’t specify how many drones were downed or where they came from.

Why it matters: Yanbu is an export pressure point for Saudi and has been doing more work as Aramco shifts crude around both chokepoints — and is now itself coming under attack. Aramco has been using Sohar in Oman to move barrels east to China and shifting some Yanbu loadings west to Egypt’s Sidi Kerir as Houthi threats disrupt Red Sea shipping.

Speaking of drones… A Saudi security delegation held talks with Iraqi officials in Baghdad on Thursday to talk border control, intelligence-sharing, and preventing drone attacks on Saudi targets launched from Iraqi territory, according to Iraqi state news agency Ina. The two sides agreed to strengthen coordination through a permanent joint committee, The New Arab reported citing a senior Iraqi security official.

IN CONTEXT- The talks land as Baghdad faces pressure to rein in Iran-aligned armed factions on its soil. This is the third round of talks since 29 July, when Saudi and US airstrikes hit Iran-aligned Iraqi armed groups following drone attacks on Saudi energy facilities that Riyadh said originated from Iraq. Iraqi PM Ali Al Zaidi’s planned visit to Riyadh, originally set for 30 July, remains postponed after being put off amid that escalation.

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Mawani gives importers 90 more days

Mawani is extending storage-fee grace periods at two eastern ports. The Saudi Ports Authority pushed the grace period for storage fees at King Abdulaziz Port in Dammam and Jubail Commercial Port by 90 days, to 2 November, it said on X. The extension covers containers, trailers, standard containers, and dangerous goods (IMDG), with the grace period for empty imports extended to 20 days.

REMEMBER- In May, Mawani had capped transit storage-fee exemptions at 15 days for a two-month stretch, applied to transit cargo at Jeddah Islamic Port and general cargo and RoRo at King Abdulaziz Port in Dammam, King Fahd Industrial Port in Yanbu, Yanbu Commercial Port, and the Port of Neom.

Why it matters: Longer grace periods let importers leave cargo at port without storage fees, which matters more as disrupted shipping stretches transit and makes clearance less predictable. The waiver helps keep congestion from adding to importers’ higher freight and war-risk costs, while giving Mawani more room to manage eastern ports as trade flows shift across the Kingdom.

Saudi stands by FIFA chief

The Saudi Arabian Football Federation (SAFF) has reaffirmed its support for FIFA president Gianni Infantino, even as he faces mounting criticism over the collapse of the governing body’s controversial FIFA Forward Enterprise proposal, it said on X. The federation welcomed FIFA’s acknowledgment of mistakes, its apology, and its decision to scrap the proposal, and called for direct dialogue to restore unity.

What happened? Infantino, seeking a fourth term in March 2027, is facing growing opposition after proposing to sell a 20% stake in a commercial entity holding FIFA tournament rights. UEFA, the Asian Football Confederation, and CONCACAF have discussed a potential no-confidence vote, and several countries have withdrawn support for his re-election bid. He retains backing from the African and South American confederations and has been appealing directly to individual FIFA members.

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The big story abroad

The economic tightening on Iran appears to be taking hold, with sanctions and a naval blockade prompting Iranian imports and exports to fall between 25% and 35%, according to Iranian President Masoud Pezeshkian. Meanwhile, Supreme Leader Mojtaba Khamenei called for greater economic self-reliance and lower dependence on the greenback, championing what he termed a “Resistance Economy.”

Trump’s barrel bargain faces backlash: An agreement between Washington and Caracas to grant a US-led company 100-year concessions over 17 oilfields that contain more than a fifth of Venezuela’s reserves has been blasted by the country’s opposition figures and some government supporters. US President Donald Trump had said the agreement will give the US control of more than 65 bn barrels and lower domestic gas price, which has been on Washington’s agenda since removing Venezuelan President Nicolás Maduro.

From the US-China tech race, Chinese chipmaker ChangXin Memory Technologies sued the Pentagon for placing it on a blacklist that identified the company as a supporter of Beijing's military. The company — blacklisted under the Biden administration — is China’s leading DRAM chipmaker, powering smartphones, PCs, servers, and AI systems, and saw its revenues surge 874% in 1H 2026.

Disaster in Nepal: Nepal is resuming its search and rescue for nearly 3k people missing after devastating floods killed at least 669. The disaster caused widespread infrastructure damage, with repair costs estimated at up to US 5 bn.

Circle your calendar

The fourth UNESCO Global Forum on the Ethics of AI runs 14-16 September in Riyadh. Hosted by Sdaia with the International Center for AI Research and Ethics (ICAIRE), this edition (pdf) will feature ministerial sessions on AI in diplomacy and how to finance ethical governance, while parallel tracks dig into the sharper questions: AI’s demand for energy and water, its effect on youth mental health, the dual-use biosecurity risks of AI-enabled synthetic biology, and gender-responsive governance. UNESCO will also launch its RAM 2.0 readiness tool.

Saudi’s Syria push gets roads, rails and data links

Saudi is laying the transport and infrastructure links for its Syria push. Transport Minister Saleh Al-Jasser’s visit to Damascus yielded four MoUs to develop Syria’s roads, railways, aviation, and postal services, while parallel talks advanced a joint bank, a submarine-cable link, and a flynas-backed airline, the ministry said in separate X posts.

Our take: Riyadh will use Syrian reconstruction to reduce its own exposure to regional chokepoints. With the Red Sea disrupted and Hormuz throttled, a transit-aviation-telecoms link running Gulf-to-Europe through Syria and Jordan gives the Kingdom overland and digital routes that bypass contested waterways entirely. It also pulls Damascus into the Gulf economy and gives Saudi private capital an early foothold in reconstruction before the field gets crowded.

The timeline: The MoUs set a six-month window to identify connection points and an implementation plan, and run five years, automatically renewable, the Syrian transport minister told Alarabiya (watch, runtime 1:00).

Private capital gets an in: The agreements also open the door to Saudi private-sector companies looking to take part in Syria’s infrastructure rebuild, Al-Jasser told Alarabiya (watch, runtime 1:00). Saudi companies have already submitted bids to develop Syria’s postal service, Syrian Communications Minister Abdul Salam Haykal told Asharq Business.

And a bank to back the rebuild: The two countries agreed to launch a joint Saudi-Syrian bank, reached between the Saudi-Syrian Business Council and Syrian central bank governor Safwat Raslan, Mubasher reports, alongside a broader banking partnership for businesses and investors.

Next stop: the seabed. A digital infrastructure agreement expected to be signed in Riyadh next week would connect submarine cables landing on the Syrian coast to networks in Syria, Jordan, and Saudi Arabia, creating an alternative Europe-to-Asia data route running through to Oman.

ALSO- flynas is close to launching flynas Syria with Syrian Airlines, having begun licensing and recruitment, with a launch expected before year-end, Syria’s civil aviation head Omar Al-Hosari told Asharq Business.

REMEMBER- The two countries have signaled they want a rail link through Jordan and Syria within three to four years, carrying goods, oil, gas, and passengers on to Turkey and Europe. These agreements join a growing pipeline of Saudi investment in Syria across energy, aviation, telecoms, and real estate, including the SAR 7.5 bn Aleppo airport redevelopment, STC’s national fiber network, and the flynas JV.

Two fund managers weigh in on underperforming 2025 IPOs

The numbers are telling: six of the seven companies that went public on Tadawul in 2025 ended their first year of trading below their offer price, with the group down an average of around 27%, according to our data. We asked two fund managers for their read on what’s driving it.

Priced for a future that never arrived: Some IPOs were simply priced for an outcome that never materialized, Osama Alowedi, founder and CEO of EQCM and former chief investment officer at SAB Invest, tells EnterpriseAM. "The important distinction is between a good company and a good investment," he says, a business can be genuinely strong and still make for a bad investment if too much of its future growth was already priced in.

Or maybe it's the market, not the pricing: Mohammed Swaid, CEO of Razeen Capital, points to the broader environment instead. TASI fell around 13% over 2025 and trading value dropped more than 30%, meaning many offerings were priced in a stronger market than the one they ended up trading in. “I would not interpret trading below the IPO price by itself as evidence that the listing process has failed," as markets are supposed to reprice companies, Swaid tells EnterpriseAM. The MSCI Emerging Markets Index gained roughly 33% over the same period.

Both separately flagged that oversubscribed order books don’t predict aftermarket performance. “Primary-market subscription demand and long-term secondary-market demand are not the same thing,” Swaid says, a pattern that played out repeatedly in 2025 with heavily oversubscribed IPOs still ending up well below their offer price months later.

A feedback loop already reshaping the pipeline: When recently listed companies trade well below offer price, institutional investors grow “more cautious about committing capital to the next transaction,” Alowedi tells us. Meanwhile, issuers become less willing to accept what the public market will actually pay, a gap that pushes some deals off the calendar rather than repricing them.

The fix isn’t green IPOs, but better price discovery: “Book building therefore needs to be genuine price discovery rather than simply a mechanism for validating the highest achievable valuation,” Alowedi says.

A bigger question hanging over all of this: The debate is playing out as reports circulate that the CMA has been contacting local and international investment banks about how 2025 IPOs were priced and allocated, per Asharq Business, citing unnamed sources. It also comes as Mazen Al Sudairi takes over as CMA chairman, with speculation building that the exchange could raise its foreign ownership cap, Morgan Stanley estimates a move to 75% could draw in roughly USD 4.3 bn in fresh inflows, rising to USD 7.4 bn if restrictions were lifted entirely.

Alowedi sees that shift as structurally positive, not just for headline inflows. “The more important effects are deeper liquidity, broader price discovery, a larger institutional investor base and potentially a lower cost of equity for Saudi companies,” he says, with the added scrutiny that comes from more sophisticated foreign capital ultimately raising governance standards across the market.

Sabah Barakat takes over New Murabba as Mukaab plans advance

PIF veteran Sabah Barakat (LinkedIn) has been appointed acting CEO of New Murabba, replacing Michael Dyke (LinkedIn), who had been steering the USD 50 bn gigaproject since December 2023, according to its website.

Right as the project changes gear: Barakat, who was also acting CEO of Roshn and sits on several PIF portfolio company boards, takes over as New Murabba ramps up efforts to bring in private capital, including a July RFP for two land-sale opportunities and a joint-venture development in one of its mixed-use communities. The move comes as the developer revives procurement plans for The Mukaab, its 400-by-400-meter centerpiece, with contractor proposals expected in 2027, as we previously reported.

Roblox wants to plant its flag in Riyadh

Roblox is setting up its MENA headquarters in Riyadh, Trade Arabia reports. The US gaming platform will use the base to support local creators, with backing from the Investment Ministry, the Riyadh Creative Zone, and the General Authority for Media Regulation. Roblox already works with Savvy Games Group in the Kingdom, including a national educational game competition run with the Education Ministry.

MENA VC funds sit on USD 1.5 bn as deployment lags

MENA-focused venture funds are sitting on an estimated USD 1.45 bn in dry powder — capital committed but not yet deployed — according to a Magnitt report seen by EnterpriseAM. That’s 88% of the USD 1.64 bn raised across 17 funds since 2024, or put another way, nearly nine of every ten USD committed to the funds raised since 2024 is still on the sidelines.

The pile reflects how early these funds are. Venture funds typically deploy over five to seven years, and 10 of the 17 identified funds have committed less than 10% of their target, leaving more than 90% available. Of the USD 1.64 bn committed, only USD 197 mn had been deployed by 1H 2026.

What has gone out has concentrated in the established markets. Saudi Arabia drew the largest share across all three launch years, ahead of the UAE and Egypt. Of the USD 60 mn that 2026-launched funds deployed in 1H, USD 33 mn went to Saudi startups and USD 7 mn to the UAE, with USD 20 mn spread across other MENA markets.

The largest funds skew toward the UAE. BECO Capital’s Booster Growth Fund I leads at USD 250 mn in target size over the 2024-1H 2026 period, followed by Shorooq Partners’ Late Stage Growth Fund at USD 200 mn and Oman’s Jasoor Fund at USD 180 mn. Four of the 17 funds carry an explicit AI mandate.

The pool has grown fast. Six active funds in 2024 held a combined USD 572 mn, only USD 42 mn of it deployed. By 2025, the cumulative count reached 14 funds targeting USD 1.28 bn, 89% still undeployed. Three more funds in 1H 2026 added USD 370 mn, all of it dry powder, taking the combined target above USD 1.6 bn.

Don’t read the 2026 funds as war-proof, though. Magnitt cautions that the three funds added this year, despite the US-Iran war and the Houthi threats, likely reflect fundraising processes started before the conflict. On its assumed six-to-nine-month transmission lag, Magnitt sees the war’s real effect on new fund formation surfacing in 2H 2026 and early 2027.

Why it matters: A USD 1.45 bn pool sounds like a cushion, but dry powder only counts once it’s deployed. Whether it meets the region’s funding needs depends on pace, mandates, risk appetite, and how well the capital matches founders’ stage and geography, and on whether the war chokes off the next wave of fundraising before this one is spent.

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TASI	11,238	-0.2% (YTD: +7.1%)
MSCI Tadawul 30	1,514	-0.3% (YTD: +9.2%)
NomuC	21,798	-0.1% (YTD: -6.4%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	4.25% repo	3.75% reverse repo
EGX30	55,107	-0.3% (YTD: +31.7%)
ADX	10,045	+0.1% (YTD: +0.5%)
DFM	5,883	+0.3% (YTD: –3.0%)
S&P 500	7,712	-0.3% (YTD: +12.7%)
FTSE 100	10,824	+0.3% (YTD: +9.0%)
Euro Stoxx 50	6,486	+1.0% (YTD: +11.9%)
Brent crude	USD 88.10	-0.5%
Natural gas (Nymex)	USD 2.89	-0.9%
Gold	USD 4,530	-2.9%
BTC	USD 78,136	+1.0% (YTD: -10.8%)
Sukuk/bond market index	907.07	-0.1% (YTD: -1.3%)
S&P MENA Bond & Sukuk	151.34	-0.1% (YTD: -0.4%)
VIX (Fear gauge)	14.43	-0.6% (YTD: –3.5%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.2% on Thursday on turnover of SAR 5.1 bn. The index is up 7.1% YTD.

In the green: Naseej International Trading (+10.0%), Saudi Enaya Cooperative Ins. (+5.6%), and Nice One Beauty Digital Marketing (+5.4%).

In the red: Al Kathiri Holding (-3.9%), Allied Cooperative Ins. Group (-3.8%), and Methanol Chemicals (-2.8%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.1% on Thursday on turnover of SAR 17 mn. The index is down 6.4% YTD.

In the green: Alfakhera for Mens Tailoring (+15.0%), Digital Research (+10.1%), and National Building and Marketing (+8.7%).

In the red: Saudi Lime Industries (-11.4%), Rawasi Albina Investment (-10.3%), and Albattal Factory for Chemical Industries (-9.5%).

CORPORATE ACTIONS-

Saudi Investment bank got the CMA greenlight for a 20% capital raise to SAR 15 bn via a bonus share issuance, with shareholders receiving one share for every five shares held. The SAR 2.5 bn increase will be funded by transferring SAR 1.5 bn from statutory reserves and SAR 1 bn from retained earnings.

CALENDAR

AUGUST

30 August-1 September (Sunday-Tuesday): Saudi Paper and Packaging Expo, Riyadh International Convention & Exhibition Center.

31 August-3 September (Monday-Thursday): Leap Tech Conference, Riyadh Exhibition & Convention Center - Malham.

SEPTEMBER

8-10 September (Tuesday-Thursday): The WTM Spotlight Riyadh, Riyadh Front Exhibition & Conference Center (RFECC), Riyadh.

14-17 September (Monday-Thursday) The fourth Unesco Global Forum on the Ethics of AI (GFEAI), The Ritz-Carlton, Riyadh.

15-17 September (Tuesday-Thursday) The Global AI Summit, King Abdulaziz International Convention Center, Riyadh.

23 September (Wednesday): Saudi National Day.

28 September-1 October (Monday-Thursday): The International Conference on Theory and Practice of Electronic Governance (ICEGOV), Prince Sultan University, Riyadh.

OCTOBER

25-26 October (Sunday-Monday): The Global Proptech Summit, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

26-28 October (Monday-Wednesday): ACHEMA Middle East, Riyadh International Convention & Exhibition Center.

26-29 October (Monday-Thursday): The Future Investment Initiative, King Abdulaziz International Conference Center, Riyadh.

28-29 October (Wednesday-Thursday): Procurement and Supply Chain Futures Forum, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

28-29 October (Wednesday-Thursday): Real Estate Supply Chain Forum, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

30 October-1 November (Friday-Sunday): The New Global Sport Conference, Sofitel Hotel & Convention Centre, Riyadh.

NOVEMBER

11-12 November (Wednesday-Thursday): Aluminum Arabia, The Arena, Riyadh.

16-19 November (Monday-Thursday): Cityscape Global, Riyadh Exhibition and Convention Centre (Malham), Riyadh.

29 November-1 December (Sunday-Tuesday): The UN Trade and Development Global Supply Chain Forum, Riyadh.

29 November-1 December (Sunday-Tuesday): The Global Logistics Forum, King Abdulaziz International Convention Centre, Riyadh.

Signposted to happen sometime in 2026:

2H: Sabic’s USD 6.4 bn Fujian project in China to start production;
November: The Esports Nations Cup, Riyadh;
The World Economic Forum’s Global Collaboration and Growth Meeting, Jeddah;

2027

FEBRUARY

1-3 February (Monday-Wednesday): Energy Regulators Regional Association annual conference, Riyadh.

MARCH

21-25 March (Sunday-Thursday):The World Water Forum, Riyadh.

22–24 March (Monday-Wednesday): Capital Markets Forum, Four Seasons Hotel, Riyadh

APRIL

26-29 April (Monday-Thursday): World Energy Congress, Riyadh.

JUNE

1-3 June (Tuesday-Thursday): The Saudi Entertainment and Amusement Expo, Riyadh Front Exhibition and Conference Center.

Signposted to happen sometime in 2027:

The Ocean Race finishes in Amaala on the Red Sea;
Riyadh-Kudmi transmission line to be completed;
Aero Middle East and Sand & Fun takes place in Thumamah Airport, Riyadh.

Signposted to happen sometime in 2Q 2027:

The Hail Region Water Networks Project is expected to be completed.

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