THIS MORNING: Mukaab’s next phase to move forward?

Good morning, folks. Tadawul ended a highly volatile May nearly flat, masking a sharp divergence as oil-leveraged cyclicals surged while the banking sector faced a steep sell-off.

ALSO- Some SAR 13.3 bn worth of Makkah-based development projects have been awarded and we dive into the latest trade data, giving us insight into what drove our non-oil export growth last year.

Happening today

Institutional bookbuilding for contractor Mutlaq Al Ghowairi's Tadawul IPO continues today, running through Thursday. The company is looking to raise up to SAR 3 bn, with the price range set at SAR 11-12.5 per share, implying a valuation of up to SAR 10 bn. The offering is the Gulf's first major IPO since the outbreak of the Iran war in late February.

Watch this space

CONSTRUCTION — New Murabba is preparing to send requests for proposals (RFP) to contractors for the next phase of building the Mukaab, a source familiar with the matter tells EnterpriseAM. Early works and excavation at the site have been completed, and a project award is expected next year, the source says.

Reports earlier this year claimed that the Mukaab had been put on hold, save for soil excavation and pilings, to reassess financing and feasibility. The release of new RFPs would signal that New Murabba is going forward with procurement on the project as construction moves beyond site preparation.

The Mukaab — a cube-shaped skyscraper at the center of the Riyadh development planned to rise about 400 meters — is planned as the centerpiece of New Murabba, housing hospitality, retail, entertainment, and commercial spaces. It’s touted to be “the world’s largest building by area,” spanning over 2.6 mn sqm of floor space. The New Murabba district is expected to cost a total of USD 50 bn.

ENERGY — Aramco is raising its liquefied petroleum gas (LPG) selling prices for June, Reuters reports, citing traders. The company increased the price of propane by USD 10 per ton to USD 760 and butane by USD 20 to USD 820 per ton, marking gains of roughly 1-3%. Aramco's monthly LPG prices are widely used as a benchmark for Middle East LPG exports to the Asia-Pacific market.

REMEMBER- LPG prices climbed as Aramco halted its shipments from the Juaymah export facility for May. The facility, which suffered structural damage sustained in late February, accounts for about 3.5% of global seaborne LPG exports. The disruption is tightening the market and pushing buyers — particularly in Asia and India — to seek alternatives.

ENERGY — Another hike: Opec+ members are expected to agree to another production increase for July by some 188k bbl / d when they meet next week, three unnamed sources told Reuters.

This matches last month’s move: The Opec+ producers agreed last month to increase production by 188k bbl / d in June, which marked a step down from May’s 206k bbl / d hike. Hikes may be considered as largely symbolic moves in the near term, owing to the current disruptions to shipping through the Strait of Hormuz.

There’s bad news for the bloc: Even if the Strait of Hormuz reopens quickly, supply disruptions will linger through the end of the year, industry experts warned Opec+, Bloomberg reports. The experts noted that returning to pre-war shipping volumes will take months, echoing comments from Adnoc CEO Sultan Al Jaber, who stated he does not expect a return to normal levels before the first half of 2027.

Data point

SAR 6.3 bn — that’s where residential mortgages granted to individuals by Saudi banks stood in April, inching up 51% m-o-m after three consecutive monthly declines, according to the Saudi Central Bank’s latest monthly bulletin (pdf). Mortgage issuance jumped 49.7% from March and reached its highest level since May 2025, with nearly 9.6k contracts signed. Villas accounted for the largest share of lending at SAR 4.2 bn, followed by apartments at SAR 1.8 bn, and land plots at SAR 356 mn. Meanwhile, residential mortgages extended by financing companies increased 57.7% m-o-m to SAR 265 mn.

Earning well is not the same as investing well — and for most mid-level executives and entrepreneurs, the gap between the two is wider than they’d like to admit. The financial landscape has shifted. Regional markets are opening up, AI is rewriting how portfolios get managed, and Real Estate Investment Trusts (REITs) are entering the conversation.

And the questions that used to feel straightforward — buy or rent, fund the startup or play it safe, finance the car now or wait it out — are harder to answer than ever.

In Issue 2 of EnterpriseAM Money Matters, we get into the decisions that don’t have easy answers, because at this stage, playing it safe is the riskiest move you can make.

Tap or click here to subscribe to the Egypt edition, delivered to your inbox Wednesday, June 3.

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The big story abroad

Where do the ceasefire negotiations between the US and Iran currently stand? After Tehran said it suspended negotiations with Washington due to Israel’s recent ramp up of its assault on Hezbollah in Lebanon US President Donald Trump claimed that he brokered a truce after talks with Tel Aviv and the Iran-backed group and that US-Iran negotiations are progressing at a “rapid pace.” Lebanon later announced a partial ceasefire, despite reports of ongoing strikes by Hezbollah.

Meanwhile, in the AI world: Anthropic has confidentially submitted paperwork for its IPO which could happen as early as this fall, potentially putting the startup ahead of OpenAI and its listing schedule. The Claude maker did not disclose the number or price of shares to be offered.

Another tech player is looking to raise funds for AI investment: Alphabet will sell USD 80 bn worth of stock to fund investments in computing infrastructure to meet customer demand for AI products. The company intends to source the funds via underwritten offerings, a USD 10 bn investment from Berkshire Hathaway, and selling Class A and Class C shares.

A new strategy for the golden arches? McDonald’s has launched its new growth strategy to attract diners, which will include higher-quality food, restaurant upgrades, consumer-led innovation, and improved customer service. The strategy comes at a time where consumers are demanding more value for their money and competitors upgrade their offerings, CEO Chris Kempczinski said.