Good morning. Acwa Power is leading this morning’s news well with a bang, securing SAR 22 bn in financing for 15 GW of solar and wind projects. Meanwhile, Erad secured the GCC’s first asset-backed facility from US investment bank Jefferies as more and more Wall Street banks jump on private credit openings, and a KPMG survey is showing Saudi CEOs are confident about business growth for their companies — but cautious about the economy.

BUT FIRST- What’s happening at Tadawul? TASI logged its fourth weekly loss in a row last week, the longest streak of losses since May 2024, closing at 10.64k points. The energy sector — led by Aramco — is down 4.4%, while banking is down 2.7% due to a 3.6% drop in Alrajhi Bank.

Pundits are saying turnover is waning as buyers anticipate even further losses amid weak 3Q earnings growth, lower oil prices and global uncertainty, with some investors preferring US markets.

• The most likely scenario now is a drop to 10.25k points and then further to 10k, Asharq Business’ lead financial analyst Mohammed Zidan said.

Bad time for a new comer? Cherry Trading’s shares is set to begin trading on the main market tomorrow, allowed to fluctuate within a 30% range for the first three days. We’ll be watching closely to see if Cherry can turn the tide of TASI’s muted debuts this year, after the strong demand for its institutional offering saw it nearly 85.6x oversubscribed.

HAPPENING TODAY-

The FII Priority Asia Summit kicks off today in Tokyo, organized in partnership with Sumitomo Mitsui Banking. The two-day summit brings together heads of state, policymakers, CEOs, innovators, and investors to discuss robotics, AI, frontier innovation, trade, manufacturing, global supply chains, finance, healthcare, energy transition, smart cities, and Asia’s geopolitical and economic role.

📢 PSA-

Worried about the Airbus fiasco delaying your flight? It seems like you should have the all-clear. Some 6k A320s were grounded yesterday in an emergency recall for a software update to fix a newly-discovered vulnerability in the system, but Saudia, flynas and flyadeal completed their required software resets on affected aircraft a few hour slater, with affected passengers contacted for rebooking and support, and normal operations resumed.

📰 WATCH THIS SPACE-

#1- PIF wants to invest in Leonardo’s aerostructures division? The Public Investment Fund (PIF) is reportedly in advanced talks to invest in Leonardo ’s loss-making aerostructures division, with both sides close to finalizing an agreement that would create a global aerostructures unit, Bloomberg reports, citing people it says are familiar with the matter.

• An expected meeting between Crown Prince Mohammed bin Salman and Italian Prime Minister Giorgia Meloni at the GCC summit in Bahrain on Wednesday, 3 December could help secure final approvals. The Italian government owns 30% of the aerospace and defense group.

Why it matters: The potential investment would give Saudi Arabia a larger foothold in the global aviation manufacturing sector while providing Leonardo — which produces major structural parts for the Boeing 787 Dreamliner — with financial support for a division hit by a slowdown in production. The unit, which employs about 4k people across four Italian plants, generated USD 746 mn in revenue last year.

The investment could open more paths for collaboration, potentially leading to a new civil aviation manufacturing plant in Saudi Arabia, the business information service reports. The Kingdom has also expressed interest in participating in the Global Combat Air Program, a next-generation fighter jet project on which Leonardo is collaborating with partners from the UK and Japan.

We’ve been getting chummy with Italy: A raft of agreements worth USD 10 bn were signed during Italian Prime Minister Giorgia Meloni’s trip to the Kingdom in January, including 26 MoUs across sectors such as construction, renewable energy, cultural exchange, and digital technologies. The visit also included an MoU with Leonardo to “discuss, develop and evaluate” investments and partnerships in the aerospace and defense sectors.

#2- The Sports Ministry invited companies to prequalify for the design-and-build contract for the King Salman International Stadium in Riyadh, with submissions due by 16 February, Meed reported on Thursday. The 92k-seat stadium — designed by US-based Populous and slated for completion in 2029 — will span 660k sqm and include a 150-seat royal suite, 120 hospitality suites, and extensive sports facilities, including training fields, fan zones, an Olympic pool, and a closed sports hall. The stadium will host the 2034 Fifa World Cup final and serve as the national team’s main base.

The project forms part of a bigger plan to build 11 new stadiums and 73 new training facilities ahead of the tournament. Awarded contracts include the expansion of the 70k-seat King Fahd Sports City to Saudi Binladin Group, the USD 1.8 bn Jeddah Central Development Stadium to a Chinese-Saudi consortium, the USD 1 bn Aramco Stadium in Al Khobar to Besix-Al Bawani JV, and the USD 1 bn Prince Mohammed Bin Salman Stadium in Qiddiya to FCC-Nesma & Partners JV.

#3- One more IPO gets the green light: The Capital Market Authority approved Al Andalus Educational Co.’s plan to list 24.9 mn shares (30% of its capital) in an upcoming IPO, with the prospectus set to land ahead of the subscription window. The approval is valid for 6 months.

ALSO- Healthcare firm Qomel Co. looks to move up to Tadawul: Nomu-listed Qomel’s board approved its transition to the Tadawul main market, appointing Estidamah Capital as its financial advisor for the move, it said in a disclosure to Tadawul. The transfer remains subject to market approval and fulfillment of all regulatory requirements. The Capital Market Authority had greenlit a capital increase request for Qomel in March.

FROM THE RUMOR MILL- Chatter on new liquor stores is getting stronger: The Kingdom is reportedly preparing to open two new alcohol stores in Jeddah and Dhahran, the Financial Times reports, citing people it says are briefed on the plans. The information aligns with a recent Reuters report that said one outlet would serve diplomats in Jeddah, while the other would cater to non-Muslim staff at Aramco in Dhahran.

Not reading into it: Saudi Arabia maintains a decades-long alcohol ban and has repeatedly downplayed speculation of wider legalization. Authorities also confirmed earlier this year that existing restrictions will remain in place for the 2034 Fifa World Cup.

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🛢️ OIL WATCH-

Opec+ is expected to keep oil output levels unchanged at today’s meeting, maintaining its planned pause on further hikes through 1Q 2026 after a year of gradually raising production, Reuters reports, citing two unnamed delegates and a source it says is in the know.

The eight producers increasing output this year have lifted targets by about 2.9 mn bbl / d between April and December, but the group is not expected to revise its 2026 production plan, which includes a 2 mn bbl / d cut in place until end-2026.

The group is also expected to approve a new capacity assessment framework that will form the basis for 2027 production baselines. The capacity discussion follows years of internal debate over figures that determine each member’s share of cuts, an issue that previously prompted Angola to leave the group.

ALSO-Saudi Arabia expected to cut January crude prices for Asia to five-year low: The Kingdom is expected to reduce its January official selling prices (OSPs) for Asian buyers for the second consecutive month to bring it to the lowest level since 2021, Reuters reported, citing anonymous sources.

Slashing prices: Refiners surveyed expect the Arab Light OSP to fall by USD 0.30-0.40 a barrel to a premium of USD 0.60-0.70 a barrel over Oman/Dubai. Other Saudi grades — Arab Extra Light, Arab Medium, and Arab Heavy — could also see decreases of USD 0.30-0.50 a barrel for January.

IN CONTEXT- Lower Saudi prices could boost term demand from China, whose independent refiners recently received new 2026 import quotas. Declining premiums reflect rising Opec+ output, slower demand growth, and unexpected extra supply from Kuwait following an outage at its Al Zour refinery.

⚽ SPORTS-

A hot take on foreign talent in football: Former sports minister Prince Abdullah bin Mosaad warned that attracting too many foreign football players is pushing aside Saudi talent and strengthening the Saudi Pro League at the expense of our national team ahead of the 2034 Fifa World Cup, which will be hosted in the Kingdom. Bin Mosaad made the remarks in an interview with Al Arabiya (watch, runtime: 49:33), which was also picked up by Reuters.

Bin Mosaad urged reforms to ensure the competitiveness of local players, noting that Saudi players have become “extras” as foreign players per team increase to eight on matchdays.

Foreign talent overpaid? "Ronaldo is the only foreign player worth what he earns, because of the global exposure he brings to the league and the country,” Bin Mosaad said, adding that many other players are “paid far more than they deserve.” Al Nassr contract reportedly nets the player around USD 200 mn annually in tax-free pay and bonuses.

Not the only voice concerned with sports overspending: Top golfer Rory McIlroy said a merger between PGA Tour and Liv Golf would benefit the sport in general, but is unlikely due to what he labeled as “irrational” spending by Liv Golf. “It's been four or five years and there hasn't been a return yet, but they're going to have to keep spending that money to even just maintain what they have right now,” McIlroy said.

• The Saudi-backed league’s losses reached USD 1.4 bn over its first four years of existence, The Athletic reported last month.

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🌎 THE BIG STORY ABROAD-

The latest escalation against Venezuela is dominating front pages this morning. US President Donald Trump said yesterday that commercial airlines should consider the Venezuelan airspace “to be closed in its entirety.” It’s unclear what Trump meant by the warning, which closely follows US military mobilization and threats to escalate its lethal operations against alleged drug traffickers on Venezuelan boats into a land-based assault.

• Maduro’s government rejected the threats, saying “Venezuela will not accept orders, threats, or interference from any foreign power.” (Washington Post | Reuters | Financial Times | CNN | CNBC)

ALSO- The shooting of two National Guard soldiers in Washington, DC intensified immigration backlash, with Trump announcing a permanent pause on immigration from unnamed “third-world nations,” and the US halting asylum decisions for all nationalities, as well as processing of visas for Afghan nationals. The suspected shooter isan Afghan national that came into the US in 2021 fleeing Taliban rule. (AlJazeera | BBC)

AND- Unsafe scaffolding and foam materials used during maintenance work at the residential building in Hong Kong that caught fire might be the culprit behind the rapid spreading of the fire, police have alleged. Several employees and consultants at the construction firm that built the building have been arrested after the fire took over 120 lives. (Guardian | Reuters | NYT)

ALSO WORTH READING THIS MORNING-

• A controversial new 1.1km oil pipeline agreement that will link Canada’s Alberta oil sands to the Pacific coast is facing backlash from environmentalist groups and Canadian cabinet members. (Financial Times | Guardian | NYT) .