Good morning. It seems we’re taking a breather from the fast pace of news over the past few weeks, which gives us a chance to look at Sama’s data on the banking sector in September, and how Tadawul’s main market performed in October.

The debt market is not slowing down though, with banks tapped for USD-denominated issuances from Avilease and GIB while Cenomi Centers and Alinma Bank are taking one step further into local sukuk. Earnings are also going strong with 3Q results out from STC, Ades Holding, Acwa Power, and more.

WEATHER- You are encouraged to look up today and enjoy the clearer skies expected all around the Kingdom.

  • Riyadh: 30°C high / 16°C low
  • Jeddah: 36°C high / 26°C low
  • Makkah: 38°C high / 27°C low
  • Dammam: 32°C high / 19°C low.

HAPPENING TOMORROW-

#1- Sahat Almajd Trading Company will ring the opening bell on the Nomu parallel market tomorrow, according to a Tadawul disclosure. The company’s shares will be allowed to trade within a 30% price fluctuation cap and a static 10% band.

REFRESHER- The firm floated a 12.5% stake — good for up to 4.4 mn shares — at SAR 7apiece in a primary offering on Tadawul’s parallel market. Proceeds, excluding SAR 2 mn in IPO-related costs, will be used to fund Sahat Almajd’s growth plans and widen its operational assets by an estimated SAR 50 mn.

#2- The Biban Forum will kick off tomorrow at the Riyadh Front Exhibition and Conference. The four-day event, organized by Monsha’at, is expected to attract visitors from 150 countries, featuring discussion panels with 200 speakers, interactive workshops, and up to 1k exhibitions of breakthrough innovations targeting startups and SMEs.

#3- The Digital Government Forum will kick off tomorrow at the JW Marriott Hotel, Riyadh, bringing together over 2k participants, including 400 government entities and 100 companies and entrepreneurs, with more than 30 workshops on the agenda. The two-day event will highlight success stories in the Kingdom’s digital transformation, showcase innovation in public services, and explore future trends and potential investments in the digital sector.

PSAs-

Travelers entering or leaving the Kingdom through land, air, or sea ports are now required to obtain prior authorization to carry controlled medications, effective 1 November, Saudi Gazette reported on Sunday. Travelers must secure clearance through the Controlled Drug System platform before arrival or departure, with applicants required to submit a permit request with personal and trip details, and upload supporting documents including a prescription, medical report, and proof of identity.

WATCH THIS SPACE-

Eight out of 10 global executives surveyed by HSBC plan to increase their investments in the Kingdom within the next five years, while 60% of them plan to do so in the coming six months, HSBC Saudi Arabia CEO Faris Al Ghannam told Argaam on the sidelines of the Future Investment Initiative. Only 14% — among over 4k execs surveryed — were concerned about the possible impacts of global economic shifts on the Kingdom, compared to over 50% for other regions, signaling strong confidence, Al Ghannam added.

HSBC Saudi Arabia sees strong medium and long term avenues for investment in the Kingdom. Over half of the 60 Tadawul-listed companies now covered by the bank are rated as “Buy,” Al Ghannam said.

Morgan Stanley is turning more bullish on crude after Opec+’s decision to pause hikes in 1Q 2026, bumping its Brent forecast for 1H 2026 to USD 60/bbl from USD 57.50, arguing that the group’s move helps stabilize the market outlook even if it does not materially alter supply expectations, Bloomberg reports, citing a note from the bank.

The quota system and reality on the ground are diverging: Morgan Stanley estimates Opec+ output only rose around 500k bbl / d between March and October, well below the 2.6 mn bbl / d quota increase announced for that period.

Supporting the view: Opec+’s latest signal is giving the market some confidence that producers remain focused on managing supply through a softer demand season, reinforcing expectations of a steady path toward balance, Vijay Valecha, CIO of Century Financial said in a note seen by EnterpriseAM.

The outlook is further buoyed by geopolitical tensions, following reports of a Ukrainian drone strike on a Russian Black Sea oil port that raised concerns over potential supply disruptions, Valecha said.

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THE BIG STORY ABROAD-

OpenAI’s endless thirst for computing power is dominating headlines this morning. The ChatGPT maker signed a USD 38 bn agreement with cloud arm Amazon Web Services to gain access to its Nvidia GPUs for the next seven years. The processing power — which will be immediately available to OpenAI — will help ChatGPT respond to user prompts and train newer models, with plans to expand capacity in the next few years.

A vote of confidence: Amazon’s share price jumped 4% to close at USD 254 yesterday — an all-time high and a sign of relief for investors who worried Amazon was falling behind the AI race. Chipmaker Nvidia also gained some 4.4%, landing just below USD 209. (Bloomberg | CNBC | Reuters | Financial Times)

ALSO- New York is set for a showdown: The state’s general election will see Democratic nominee — and front-runner with a double-digit lead in the polls — Zohran Mamdani go up against former governor Andrew Cuomo, who landed a late endorsement from Donald Trump. The president lashed out against “Communist” Mamdani and vowed to cut federal assistance to New York under the young progressive candidate. The race — one of the most politically charged in the US in a while — is already seeing unprecedent voter turnout. (New York Times | Fox | Axios | Semafor)

AND- A scandal is rocking Israel: Top military lawyer Yifat Tomer-Yerushalmi is now behind bars facing accusations of breach of trust and obstruction of justice. Tomer-Yerushalmi admitted last week to leaking a controversial surveillance video last year that showed Israeli soldiers severely abusing a Palestinian inmate at the notorious Sde Teiman camp. The prosecutor then disappeared for a few hours on Sunday night leaving behind a cryptic note and her car, sparking uproar, speculation and a nationwide search campaign that retrieved her safely. Prime Minister Netanyahu earlier called the leak “the most severe diplomatic attack Israel has faced.” (Associated Press | Financial Times | Bloomberg)

ALSO WORTH NOTING THIS MORNING-

  • China is increasing energy subsidies to the country’s biggest data centers, cutting bills by up to half to help out tech giants, unnamed sourced told the Financial Times.
  • Starbucks is set to relinquish control of China operations to Boyu Capital in a USD 4 bn buyout. (CNN)
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