Priced for risk

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Houthis continue their attacks on Saudi airports and military sites

Good morning, ladies and gentlemen. The month is coming to a close, but the floodgates of earnings are still open. The quarter’s results come down to where a company sits in relation to the disruption — the same risk that pads one Saudi company’s pockets is eating away at the numbers for another.

Shipping and refining collected margins that the disruption handed them, the sharpest headline declines trace to tax lines rather than to trading, and the companies that genuinely worked for their numbers were the ones selling at home on procurement and cost discipline.

The markdown is plainest in football. Buyers are still at the table for the clubs being privatized, and they are bidding lower, which Hamad Bin Khalifa University’s Christos Anagnostopoulos frames as capital asking for a discount rather than walking away. Due diligence is now separating clubs that can show commercial growth from those carried by outside funding.

More international debt

Saudi Arabia could return to international debt markets to raise as much as USD 12 bn before the end of the year, Jefferies Chief Middle East Economist Alia Moubayed tells Asharq Business.

The borrowing would bring the Kingdom above the planned threshold for financing from international debt markets. On top of the USD 14.75 bn already raised — USD 11.5 bn in January and USD 3.25 bn in sukuk in September — the potential additional financing would bring the total to roughly SAR 100 bn. That would be close to 46% of the SAR 217 bn in total financing needs identified in the 2026 plan — nearly double the 25-30% the plan earmarked for international markets this year.

Moubayed sees demand holding up because sovereign bonds have shown limited sensitivity to geopolitical risk amid regional military escalation. She also points to a shift toward spending on projects with stronger development returns, particularly in ports, transport, and telecommunications, to support private-sector activity and non-oil growth.

Fourth Asian host

Saudi Arabia is in talks to add the Philippines to its overseas crude storage network, as it seeks to build strategic reserves and hedge against price spikes caused by the Iran war, Philippine Energy Secretary Sharon Garin tells Reuters.

The Kingdom is exploring overseas locations to store its crude following attacks on its ports and oil facilities. Aramco announced an initial agreement this week to store Saudi crude in Singapore’s underground rock caverns starting in 2027, making it the company’s third Asian host. The oil giant already stores 8.2 mn bbl in Okinawa under an agreement with Japan’s Jogmec, renewed in November last year, and 5.3 mn bbl at South Korea’s Ulsan under a five-year agreement signed in 2023. In both, the host government has priority to buy the oil during a shortage.

On the supply side: Aramco has offered European buyers spot crude for October and November loading, Bloomberg reports, citing a source familiar with the matter. The cargoes load from either Yanbu on Saudi Arabia’s Red Sea coast or Egypt’s Sidi Kerir terminal on the Mediterranean, and the offers suggest Aramco is making up for supplies lost while the East-West pipeline was shut down.

IN CONTEXT- Aramco cut European refiners’ October term cargoes after a drone attack knocked the pipeline offline, and has since restored full November allocations. Yanbu had an estimated five to seven days of export-ready crude, and Aramco now wants to double its overseas crude storage to cushion future outages.

War Watch

The Houthis are continuing their attacks on airports and military sites. The group targeted the Defense Ministry in the Saudi capital with a ballistic missile and hit Abha International Airport with a drone, the group said. It struck two military transport aircraft with two missiles, the first at Najran Airport and the second at King Khalid Air Base in Khamis Mushait. The Saudi-backed coalition said it intercepted a missile launched toward Taif.

Coalition presses on with strikes: The Houthis said yesterday that the Saudi military had carried out 101 airstrikes and missile attacks over the past 24 hours, targeting Sanaa, Al Jawf, Taiz, Amran, Hajjah, Al Dhalea, Al Mahwit, Lahij, and Saada. The airstrikes were launched from the Khamis Mushait and Taif air bases, according to the group. The Houthis say Saudi Arabia has carried out more than 3.4k airstrikes and missile attacks since the escalation began in July.

The fighting also continues on the ground near Bab Al Mandab, with the Houthis claiming that they had repelled an attempted advance from the south by Saudi-backed forces using missiles and heavy weapons, leaving a large number dead and wounded and destroying several vehicles.

The threat of a wider conflict in the region remains high. Washington has warned several Gulf states to prepare for a brief but forceful US military operation against Iran once the US midterm elections are over, The Wall Street Journal reported, citing sources in the know. The US is also shipping a Patriot missile defense system from Texas to Israel, and has pulled troops away from exposed bases in the Middle East to prepare for possible escalation.

Another one bites the dust

The hydrogen-powered Extreme H off-road World Cup, scheduled for Qiddiya City from today until Saturday, has been postponed to 2027, the FIA said, blaming “logistical and operational challenges affecting the preparations required to deliver the event.”

Repeated Houthi missile and drone attacks targeting the Saudi capital in recent weeks prompted Riyadh to push several events into next year, including the sixth UN World Data Forum and the second Saudi Statistics Forum and the Future Investment Initiative, or move them to other countries. The Dakar Rally recently relocated from the Kingdom to Africa.

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The big story abroad

Families, companies, and governments across Europe are under growing strain as gas prices climb back above EUR 100 a megawatt-hour for the first time since 2022. The anger over living costs is spilling into unrest in several parts of the continent. Gas prices are now more than three times what they were before the Iran war. The latest jump comes from higher demand for heating, unusually small gas reserves across Europe, and concern that a wider conflict could squeeze global supplies even more. The impact is also reaching beyond gas, as rising oil, diesel, and electricity costs push up energy inflation across Europe.

China is scrambling to prop up its stock market as its AI stocks struggle. China’s CSI 300 blue-chip index has fallen about 20% from its June peak, and the slide has spread to Hong Kong. Weak consumer demand, a long property slump, and shrinking government spending are behind the drop. Beijing has sent state-backed funds to buy shares, but analysts say a lasting rebound needs stronger demand at home. Investors are watching this week’s Communist Party plenum for signs of bigger stimulus.

Oracle says it will start generating more funds than it uses in the second half of fiscal 2028, as it tries to ease concerns about the cost of its AI expansion. Much of Oracle’s growth depends on ChatGPT maker OpenAI, and building data centers for that deal has led the company to take on large amounts of debt and issue new shares. Oracle has capped any new fundraising at USD 20 bn through fiscal 2030.

Capital hasn’t left Saudi football, but valuations aren’t the same

Saudi football clubs are still drawing buyers as the Kingdom privatizes the sector — now at lower valuations as investors price in regional risk and PIF’s retreat. “Capital has not left Saudi football. It has simply started asking for a discount,” Hamad Bin Khalifa University sports management professor Christos Anagnostopoulos tells EnterpriseAM.

“Investor appetite for Saudi football clubs remains promising,” University Campus of Football Business sport finance expert professor Rob Wilson tells EnterpriseAM, pointing to government backing and football infrastructure as a “compelling long-term investment narrative” for strategic investors, family offices, and institutions.

What has shifted is pricing discipline: Geopolitics is likely to add more caution and sharpen scrutiny of valuations, due diligence, and investment structures, according to Wilson. “Investors will distinguish between clubs offering credible commercial growth and those whose financial performance remains heavily dependent on external funding,” he added.

Who’s buying? More than 40 local and international investors had formally expressed interest as of June, Anagnostopoulos says, citing a senior Sports Ministry official. Kingdom Holding Company (KHC) had already agreed in April to buy 70% of Al Hilal in a transaction he says valued the club at around SAR 1.4 bn (c. USD 373 mn). A RedBird Capital-led consortium has held talks with PIF over Al Nassr, with reported terms implying a similar valuation. PIF is also lining up sponsorships with portfolio companies to help clear Al Nassr’s SAR 800 mn debt before a sale.

IN CONTEXT- Saudi Arabia is steering its clubs toward financial sustainability as PIF steps back. In its new five-year strategy, the fund dropped sport from its priority sectors and has said openly it wants out of its clubs.

Pricing the badge

“Brand, fan base, and debt matter most,” along with how much revenue a club generates without the state, Anagnostopoulos says. “Investors are not buying today’s profits. They are buying the badge and the road to 2034.” Beyond that, Wilson says, buyers are weighing fan engagement, sponsorship, broadcasting exposure, stadium infrastructure, wage commitments, liabilities, and governance. Revenue multiples and discounted cashflow give useful benchmarks, but Saudi clubs’ commercial models are still young, so investors are likely to pay for brand and growth while discounting for uncertainty, governance risk, or heavy operating losses.

The escalation has made the risk concrete. Abha was offered to investors in June; in October, its airport was hit in a Houthi attack. “It is a line in the due-diligence report,” Anagnostopoulos says. A club sale typically takes eight to 10 months, so buyers are likely to price the risk in through lower valuations and staged payments. Saudi buyers with long horizons are likely to hold their nerve; foreign financial investors are more likely to wait.

The disruption is already visible: The league postponed three fixtures this month, including Al Ahli against Al Nassr, and clubs were spending far less on transfers even before the escalation, Anagnostopoulos says.

Wilson sees it as short-term volatility against a long-term strategy. Investors will weigh ins. costs, travel, event security, and operational continuity, and international buyers could demand higher risk-adjusted returns or extra contractual protections. Privatization, he argues, is a structural part of the diversification push that temporary instability need not undermine; the real danger is prolonged instability that erodes commercial revenues, investor confidence, or the ability to host international events.

International appeal will come at a higher price. Sponsors weigh reputational risk and event continuity alongside reach, Wilson says, while players weigh security and family alongside pay. “Players will still come, but security now has a price, and that price is paid in wages,” Anagnostopoulos tells us. Sponsors, he adds, are likely to wait for calm before signing.

The end of the chequebook era?

Private ownership brings harder budget discipline. Clearer accountability and a stronger focus on return, Wilson says, could push spending toward youth academies, sports science, digital engagement, merchandising, and stadium commercial activity. Outcomes will vary by owner — some chasing quick success to build the brand, others favoring gradual growth and tighter cost control. “The key will be achieving an appropriate balance between sporting competitiveness and financial sustainability,” he says.

The wage bill is already falling. Estimates put the league’s fixed wage bill down around 13% this season, Anagnostopoulos says. “Owners who answer to a balance sheet buy players for value, not for headlines, which means younger players they can develop and sell. The open question is whether the league keeps its competitive balance once a few well-funded owners pull away from the rest.”

But the capital should spill into the wider economy. Privatization could draw private and institutional money into infrastructure, broadcasting, sponsorship, technology, hospitality, and tourism, Wilson says, and create demand for sports finance, legal advisory, asset management, and marketing. Long-term success will be judged on financial sustainability, governance, commercial revenues, and home-grown talent.

Governance is the test: Private money will stay only if the rules are credible. That means real tests of who is fit to own and run a club, published audited accounts, and spending controls that are actually enforced, Anagnostopoulos says. “Get the governance right and the investment will follow.”

A mixed bag for the bottom line

Tax swing drives Stc’s 3Q bottom-line decline

Saudi Telecom Company (stc) saw net income fall 12.4% y-o-y to SAR 3.6 bn in 3Q 2026, according to a Tadawul filing, though the drop was largely due to a Zakat-and-tax swing from a SAR 157 mn benefit last year to a SAR 156 mn charge in the quarter. Revenue rose 3.7% y-o-y to SAR 19.99 bn, driven by an 18.5% jump in subsidiaries’ revenue.

The 9M read: Over nine months, net income fell 5.7% y-o-y to SAR 10.9 bn. Revenue rose 3.7% to SAR 60.1 bn. Here too, the reported dip is the Zakat base effect: last year carried a SAR 683 mn positive contribution against a SAR 357 mn charge this year.

The group is leaning on subsidiaries and infrastructure, not its core. stc KSA revenue grew just 1% over nine months, as commercial (up 2%) and carrier-and-wholesale (up 5.1%) offset a 2.4% decline in the business unit, while subsidiaries’ revenue jumped 9%, led by solutions, STC Bank, and sirar, with subsidiary gross income up 39.4%. The subscriber base kept expanding: mobile up 4.8% y-o-y to 30.6 mn, fixed up 4% to 6.2 mn, and fiber-connected households up 7% to 3.95 mn, supported by a 31.5% rise in 5G towers to 12,380.

Two balance-sheet items to watch: Capex rose 27.4% to SAR 7.75 bn as stc builds out 5G and fiber, and net debt jumped to SAR 15.42 bn from SAR 3.13 bn, lifting net-debt-to-EBITDA to 0.61x from 0.13x, still conservative, but a fast climb nonetheless. stc also raised its Telefonica stake to 9.97% from 4.97% during the period.

Dividends: Stc will distribute SAR 2.74 bn in 3Q 2026 interim dividends, equivalent to SAR 0.55 per share, in line with its dividend policy, it said in a separate filing. Payments are scheduled for 19 November 19.

Higher VLCC freight rates lift Bahri’s bottom line almost 10x

Higher VLCC freight rates and more chartered-in tankers drove Bahri’s 3Q earnings up nearly tenfold. Net income at Saudi Arabia’s National Shipping Company (Bahri) rose 891% y-o-y to SAR 5.1 bn in 3Q, while revenue jumped 504% to SAR 14.8 bn, according to its earnings release (pdf).

Bahri Oil drove most of the increase: The tanker unit’s revenue rose 913% y-o-y to SAR 13.3 bn, and the company credited higher realized freight rates for very large crude carriers (VLCCs), driven by regional disruptions and heightened maritime security risks, alongside a significant increase in charter-in activity. Integrated logistics revenue roughly doubled to SAR 497 mn, chemicals and products rose 5% to SAR 793 mn, and dry bulk climbed 38% to SAR 149 mn.

3Q accounted for about half of Bahri’s 9M net income, by our math: Net income for 9M rose 587% y-o-y to SAR 9.98 bn, and revenue climbed 268% to SAR 26.1 bn. Bahri Oil accounted for SAR 18 bn of the revenue increase, followed by integrated logistics at SAR 429 mn, chemicals at SAR 270 mn, and dry bulk at SAR 139 mn, according to Tadawul disclosure.

Conflict-related incidents affected four of Bahri’s vessels during 9M, and two crew members were killed. Two of the vessels have returned to service after repairs and two remain under repair. Bahri operated 109 vessels at end-September, 107 owned and two on long-term lease, against 117 a year earlier, after selling a VLCC and a chemical tanker for net proceeds of SAR 270 mn.

Bahri has ordered three VLCCs from Saudi shipbuilder International Maritime Industries (IMI) for SAR 1.69 bn, due in 2029-2030.It added three second-hand medium gas carriers for LPG and ammonia. The first was delivered in September, and the other two are due in 4Q 2026 and 1Q 2027. It ordered two RoCon (roll-on/roll-off and container) vessels for SAR 776 mn in 3Q for delivery in 2030. After the quarter closed, it signed a SAR 1.69 bn agreement with Saudi shipbuilder International Maritime Industries (IMI) for three VLCCs.

Petro Rabigh returns to black

Petro Rabigh swung to net income of SAR 2.6 bn in 3Q 2026, from a SAR 1.24 bn loss a year earlier, according to a Tadawul filing. The turnaround came off the back of stronger refined-product margins, global supply-demand imbalances, improved plant utilization and lower finance costs. Revenue jumped 82.9% y-o-y to SAR 16.8 bn over the same period on higher average selling prices and improved plant utilization.

Nine-month earnings also rebounded: Net income reached SAR 6.7 bn, reversing a SAR 3.3 bn loss a year earlier, while revenue more than doubled, rising 113.6% y-o-y to SAR 52 bn.

Zain’s operating costs weigh on earnings

Zain KSA’s net income fell 9.8% y-o-y to SAR 138 mn in 3Q 2026, despite a 3% increase in revenue to SAR 2.8 bn, the company said in a Tadawul disclosure. Higher operating expenses from seasonal marketing and costs from subsidiaries acquired at the end of 2025 weighed on earnings despite gains in consumer 5G and wholesale services.

For the first nine months, net income rose 45% y-o-y to SAR 541 mn, while revenue was nearly flat, up 0.6% to SAR 8.1 bn as a richer revenue mix offset lower handset sales. The company attributed the earnings growth to improved revenue mix, lower finance costs and SAR 127 mn in Universal Service Fund income. Excluding one-off gains, net income would have risen 11% y-o-y, Zain said.

Nahdi’s net income up in 3Q

Nahdi Medical posted a 6.5% y-o-y increase in net income to SAR 171.8 mn in 3Q, as revenue grew 9.4% y-o-y to SAR 2.7 bn, according to its earnings release (pdf). Growth was driven by retail, with contributions from healthcare (23.9%) and regional expansion (31.4%) also buoying results.

On a 9M basis, net income slipped 4.9% to SAR 622.7 mn, as narrower gross margins and higher operating expenses weighed on earnings. Revenue, meanwhile, increased 7% y-o-y to SAR 8.16 bn, thanks to gains in healthcare (32.1%), retail (5.7%) and regional expansion (29.1%).

Americana’s 3Q earnings surge on stronger sales

Americana Restaurants’ 3Q net income sped past revenue, jumping 63% y-o-y to USD 70 mn while revenue grew 14.4% y-o-y to USD 712.3 mn on 8.6% like-for-like sales growth and new restaurants, the company said in its earnings release (pdf).

Over 9M, the story is similar, but bigger: Net income rose 60.4% y-o-y to USD 217.2 mn, outpacing 12.9% revenue growth to a record USD 2.1 bn for the period. Beyond 7% like-for-like growth and new restaurants, procurement efficiencies and cost management turned higher sales into faster earnings growth, more than offsetting input-cost inflation the company tied to geopolitical conditions.

Expanding footprint: Americana added 112 net new restaurants over the 12 months to 30 September, bringing its total to almost 2.8k across 12 markets. Looking ahead, it expects to add another 120-130 net new stores by year-end, while its exclusive development agreement to bring Taco Bell to the UAE opens another avenue for growth.

Acwa Power is adding Dubai to its water book

Acwa has signed a 30-year water purchase agreement with Dubai Electricity and Water Authority (Dewa) for the Hassyan seawater desalination plant in Dubai, according to a Tadawul filing. The contract is valued at USD 478 mn (SAR 1.794 bn) and covers the plant’s development, financing, construction and operation. Located in the Hassyan Complex, the reverse-osmosis facility will produce around 272k cubic meters of desalinated water per day. Acwa will hold a 40% stake in the project, with financial impact expected from 2030 once the plant is completed.

REMEMBER- The renewable energy giant reached financial close on the first phase of the project back in 2024.

Almarai is getting into red meat

The Gulf’s largest dairy and food company has launched Haboor, its first beef brand, with an investment of about SAR 500 mn. The business will focus on locally made beef products, and Almarai expects it to start showing in results from 4Q 2026.

It’s the next protein on the platform: Almarai has already diversified into poultry and is working on entering the seafood market through a new local manufacturing facility. The company previously said it would invest around SAR 4 bn to expand its business.

Fed holds rates ahead of midterms and plans a new meeting schedule

The US Federal Reserve left its benchmark rate unchanged at 3.75-4% after September’s hike and keeping clear of potential political backlash a week before the US midterms. The pause matched the roughly 90% probability markets had assigned it, according to Reuters, and keeps the focus on the quarter-point increase investors have all but priced in for December. Only two members of the Fed’s Open Market Committee voted to raise rates by 25 bps, according to the Fed’s post-meeting press release.

AND- The Fed is planning to change the schedule of its FOMC meetings to allow for more big-picture planning, Fed Chair Kevin Warsh said in a press conference. “We believe eight meetings per year is the right number for the FOMC,” Warsh said. “But in 2027, one meeting will focus exclusively on broad monetary policy strategy, with neither a vote on the federal funds rate nor a policy statement anticipated. The rest will be regular FOMC policy-setting meetings. And I expect that in 2028, we’ll have two meetings dedicated to discussions of strategy, and six for setting policy.”

For now, the strategy for the Fed continues to be price stability, even as inflation continues to run hot. “Economic activity is expanding at a strong pace. While uncertainty remains — owing, in part, to geopolitical developments — domestic spending has been resilient. Productivity growth is strong, and capital investment robust. Job gains have kept pace with the workforce, and the unemployment rate has changed little,” Warsh said.

The case for a pause was laid out in advance: A run of officials spent the weeks before the meeting cooling expectations for an immediate move: Vice Chair Philip Jefferson and New York Fed President John Williams said the central bank had time to assess the economy, and Governor Christopher Waller said the Fed need not tighten at consecutive meetings, Bloomberg reports. Warsh kept his own leaning to himself, telling the IMF meetings in Bangkok he would not prejudge the decision, part of what he calls a “new chapter” in which the Fed stops signaling its next move.

They were leaning against an inflation backdrop that keeps getting harder to ignore. US consumer prices rose in September at their fastest pace in five months, core came in above forecast, and producer prices climbed at their quickest rate in more than four years. The Fed’s preferred PCE gauge is stuck at 3% or above, with the September reading due today.

What worries officials most is where the pressure is coming from. They increasingly trace the pressure to demand they can control — healthy consumer spending and a surge in AI investment — on top of the energy shock from the US strikes on Iran and the lingering drag from tariffs. Brent is also back near USD 114 a barrel, up about 20% since the start of September, and diesel sits close to record highs.

With the pressure broadening, investors have largely stopped asking whether the Fed will hike again and are instead asking how many more times. TS Lombard’s Dario Perkins argues the Fed “will need to keep hiking until its target is in sight,” and could be forced into a run of moves “if the AI bubble doesn’t burst.” Monetary Policy Analytics now sees three more quarter-point hikes in the coming meetings, matching market expectations for quarterly increases through June 2027; the Fed’s own September projections penciled in just one more this year.

For Warsh, the near-term challenge is presentational. His task, MPA’s Derek Tang said, is to frame an October skip without sounding dovish, “against a wide backdrop of an FOMC still set on proving its mettle.”

Several officials see conditions as too loose to bring inflation down, which on its own would argue for tighter policy. Goldman Sachs’s conditions index is close to where it began the year despite September’s hike; a Deutsche Bank survey found 42% of investors calling conditions “moderately accommodative” against just 15% restrictive; and Piper Sandler reckons an effective 3.9% funds rate is still cushioning the economy from 5% bond yields as banks ease lending standards, Reuters reports.

Policymakers are not reading it the same way. “Most of what I’m hearing in my district is that they’re going full steam ahead,” Cleveland Fed President Beth Hammack told Bloomberg. Former New York Fed chief William Dudley said Warsh “seems to think financial conditions are important,” but that the view is “not really ingrained” at the institution; Evercore ISI called Warsh’s focus on conditions without a defined framework “a vulnerability.”

MARKETS THIS MORNING-

Asian markets were mixed earlier today. South Korea’s Kospi was fluctuating between -0.1% and 0.4%, while Japan’s Nikkei was up roughly 1%. US equities saw broad overnight gains.

TASI	10,023	+0.4% (YTD: -4.5%)
MSCI Tadawul 30	1,355	+0.1% (YTD: -2.3%)
NomuC	21,273	-1.2% (YTD: -8.7%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	4.25% repo	3.75% reverse repo
EGX30	49,281	-1.6% (YTD: +17.8%)
ADX	9,590	-1.6% (YTD: -4.0%)
DFM	5,845	-0.3% (YTD: -3.3%)
S&P 500	7,744	+0.3% (YTD: +13.1%)
FTSE 100	10,695	+0.1% (YTD: +7.7%)
Euro Stoxx 50	6,168	+0.1% (YTD: +6.4%)
Brent crude	USD 114.40	+0.5%
Natural gas (Nymex)	USD 3.03	+0.9%
Gold	USD 4,052	-0.6%
BTC	USD 81,415	+0.6% (YTD: -7.1%)
Sukuk/bond market index	890.37	-0.2% (YTD: -3.1%)
S&P MENA Bond & Sukuk	148.19	0.0% (YTD: -2.4%)
VIX (Fear gauge)	16.91	-3.5% (YTD: +13.1%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.4% yesterday on turnover of SAR 5.2 bn. The index is down 4.5% YTD.

In the green: BinDawood Holding (+10%), Arabia Ins. Cooperative (+10%), and Miahona (+9.9%).

In the red: Qassim Cement (-5.5%), Saudi Vitrified Clay Pipes (-4.8%), and Watani Iron Steel (-4.1%).

THE CLOSING BELL: NOMU-

The NomuC fell 1.2% yesterday on turnover of SAR 24.1 mn. The index is down 8.7% YTD.

In the green: Naf Company for Feed for Industry (+9.6%), Dar Almarkabah for Renting Cars (+9.5%), and Rimath Hospitality (+8.1%).

In the red: Alfakhera for Men’s Tailoring (-18%), Lana Medical (-16.9%), and Hawyia Auctions (-9.1%).

Saleh Al Ghamdi on rebuilding fractional real estate around an app, a registry link, and a SAR 1k entry

Fractional real estate used to be manual, limited to a handful of co-buyers, and dependent on agreements with strangers up front. Saleh Al Ghamdi co-founded Ghanem to fix that: Mobile apps linked directly to the real estate registry, with governance handled by formal votes and entry from SAR 1k. In about a year and a half, the proptech went from no product to two apps, thousands of users, and revenues in the mns, and raised USD 8.6 mn across its pre-seed round and extension.

Saleh Al Ghamdi, CEO and co-founder of Ghanem: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Saleh Al Ghamdi (LinkedIn), CEO and co-founder of Ghanem. Edited excerpts from our conversation:

Enterprise: Walk us through your journey, from content creation to investment.

Saleh Al Ghamdi (SG): My first jobs were in content, sales, and events, and then I started a marketing agency in 2015, which I exited two years later. Running it gave me a clear view of how the market operates, and I could see that technology-enabled sectors were going to boom, so I decided to focus on building and investing in businesses that use technology to scale. I’m a marketing person by education, but I later earned licenses and education in investment, leadership, and real estate.

My co-founder and I have angel-invested in more than 20 technology-enabled businesses. It’s like an MBA without the degree. You see founders’ challenges up close and learn a lot from them. I’m passionate about fractional real estate, but building a successful business matters more to me than building one I’m passionate about.

E: What drew you to Saudi fractional real estate, and how did you build Ghanem?

SG: The idea for Ghanem came from noticing that owning real estate with other people already existed in Saudi Arabia, but it wasn’t scalable or smooth. You had to do it manually, with a limited number of people, and with a lot of paperwork. You had to find your co-buyers and agree on everything with them in advance.

The problem wasn’t the idea itself, but the user journey, which was broken. That led to Ghanem: Moving it to a mobile app, connecting it directly to the real estate registry, and putting the regulatory side and governance into a formal vote. Saudis love investing in real estate, and when we let them do it from SAR 1k, they jumped at it. We run two apps, both owned by Ghanem. One focuses on re-renting, and the other, Ghanem, is for fractional ownership.

E: What were the biggest challenges that faced you during that development?

SG: The first one we faced was credibility, as people needed to know that Ghanem is a real business with a real moat, and that the company can deliver when it comes to deed issuance, and this was handled. The second is still in progress, and it’s regulatory. We need trading and exits, and to let non-Saudis invest, and to face the usual sandbox limitations. That’s the norm when you join a sandbox, and I think we’ll resolve these within the next few weeks.

E: You’ve raised about USD 8.6 mn across your pre-seed round and extension. Where’s that money being directed?

SG: Multi-pronged growth is the headline for the next stage: The first target is to expand the product, which means trading and early exit, and opening investment to non-Saudis, businesses, funds, and family offices, each requiring new products and features. Second, we need to scale the organization so we can serve more investors and source more high-quality supply. We have a runway of two to three years, but the funding still matters for credibility. We also need the right people, supply, proper due diligence, and AI to automate our processes.

E: You’ve also talked about reaching SAR 1 bn in assets under management within five years. How do you plan to get there?

SG: Compared to the size of the market, SAR 1 bn is small, so it’s doable. It takes a snowball effect: the right investors bring the right supply, the right supply brings more investors, and the right talent builds the right product. All of that adds up to SAR 1 bn in AUM.

It’s also about quality, not just the number. Reaching SAR 1 bn in high-quality assets is far harder than reaching SAR 500 mn, or even SAR 2 bn, in lower-quality ones. That first SAR 1 bn is what will drive our next phase. There are a lot of low-quality assets we don’t want to work with, which is why we’re doubling down on sourcing.

E: What are the biggest obstacles facing fractional real estate and PropTech in Saudi Arabia then?

SG: The sector is already booming and moving in the right direction. A few small changes from us and the regulator would make a big difference: Allowing trading, including global trading, and letting non-Saudi and non-Muqeem investors invest through an automated journey. We can reach SAR 1 bn with today’s setup, but if we allow non-Saudis, corporates, and global trading, we’ll go well beyond it. Allowing off-plan would also help. Investors love buying off-plan, and it isn’t part of our offering today.

E: What do your days look like?

SG: I wake up at 6 or 7am and spend time with my family. I go to the gym about three days a week, then head to the office at 8:30 or 9. The first three hours are focused work, and the rest of the day is for the team, working through problems. We don’t want idle days where nothing moves, so I spend time daily with the product, marketing, sales, operations, and customer care teams to make sure everyone is communicating and scheduling things. We usually finish by 6 or 7pm, and then I go home to my family. One challenge in our sector is that real estate people work at night, so I stay connected to the office in the evening. I sleep at 11pm.

E: What are you listening to or reading right now?

SG: I like the Stanford podcast, View From the Top, which interviews global leaders at the business school. Every week they host interesting leaders to talk about their businesses and journeys.

CALENDAR

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;

DECEMBER

14-16 December (Monday-Wednesday): The Innovation Driven Water Sustainability Conference (IDWS 2026), Jeddah

2027

JANUARY

12-14 January (Tuesday-Thursday): The Future Minerals Forum (FMF), Riyadh.

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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Capital hasn’t left Saudi football, but valuations aren’t the same

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Acwa Power is adding Dubai to its water book

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Fed holds rates ahead of midterms and plans a new meeting schedule

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