Happy hump day, friends. The midweek point brings with it a meaty issue that builds on the theme of the month — looking back at the year that was, and looking ahead at the year that is just getting underway.

The big story of the day is about Saudi Arabia’s emergence as a leader among emerging venture markets, ranking second among EVMs in terms of funding raised in 2025. The top title went to Singapore last year, but Saudi’s jump in venture funding came despite a downturn in funding among EVMs.

PLUS- We have our views on what the year ahead holds for the Saudi economy, as well as news of the first entry of a Chinese operator into the LTOM program.

More details on the Riyadh Metro’s Line 2 expansion-

Commuters can expect the 8.4 km extension of Riyadh Metro’s Line 2 (Red Line) to come online in approximately six years, cutting travel time between King Fahd Sports City Station and central Diriyah to under 40 minutes, state news agency SPA reported yesterday.

The expansion will add five new stations to the metro. The three Diriyah stations — East, Central, and South Diriyah — will give access to Al Turaif and Al Bujairi districts as well as the Opera House, while the two King Saud University (KSU) stations will serve the Medical City, health colleges, and the main campus. The extension will stretch from the current Line 2 terminus at KSU and feature an interchange with the upcoming Line 7 at Diriyah Central.

Check your maps for reroutes: Traffic diversion plans have already been put in place for the KSU and Diriyah areas to manage the workflow on the 7.1 km of underground tunnels and 1.3 km of elevated tracks.

Watch this space

BANKING — CI Capital bullish on UAE banks, remains selective on Saudi: Saudi Arabia’s banks are grappling with shrinking liquidity, scaled-back projects, and fiscal deficits, while also seeing most of their stocks drop toward historic valuation lows, according to a CI Capital report picked up by Zawya. Meanwhile, UAE banks face an “upbeat” mid-term outlook, driven by solid fundamentals and a favorable macro environment. Despite these headwinds, CI Capital remains long-term positive on the Kingdom, with Saudi lenders occupying six of the top seven spots on CI Capital’s GCC scorecard.

The scorecard: Abu Dhabi Commercial Bank takes the regional top spot for its growth profile, while Emirates NBD replaces First Abu Dhabi Bank due to margin tailwinds from its Turkish operations. Saudi National Bank remains the firm’s “top fundamental pick” in MENA, joined by Al Rajhi Bank, which stands to benefit from the removal of foreign ownership limits on the Tadawul exchange. Saudi Awwal Bank and Kuwait’s NBK also made the top-tier cut.

FX — The USD is on track for another year of weakness in 2026, as political pressure on the US Federal Reserve and internal policy splits cloud the greenback’s outlook, according to a recent Emirates NBD research note. For the Kingdom, whose currency is pegged to the USD, this shift is more than just a theoretical FX move; it is a tailwind for non-oil diversification that offsets the sting of more expensive European imports.

A weaker USD in 2026 presents a strategic trade-off for Saudi Arabia and its Gulf neighbors. While it inevitably fuels imported inflation by driving up the cost of goods from Europe and Asia, it acts as a powerful competitive tailwind for the non-oil sector. By proxy, the currency peg makes regional services cheaper and more competitive for global buyers.

Unlocking liquidity: Regional central banks are expected to mirror a projected 75 bps of Fed rate cuts in 2026. This easing is anticipated to stimulate domestic demand by freeing up corporate capital for CAPEX and investment that was previously sidelined by high borrowing costs. The region’s solid credit standing is likely to buffer against potential US Treasury volatility, keeping borrowing costs stable and fueling non-oil economic expansion.

OIL — Aramco is rolling out 98-octane gasoline at SAR 2.88 a liter, SaudiGazette reports. The rollout will initially target what could be called the Kingdom’s wealth corridor — Riyadh, Jeddah, and the Dammam metropolitan area — where high-performance vehicles roam the streets. Expansion elsewhere is explicitly demand-led, with Aramco saying it will watch consumption patterns before scaling.

ENTERTAINMENT — PIF-owned Saudi Entertainment Ventures (Seven) is paring back its investment plans, scaling down its entertainment destinations to 14 from the previously planned 21, according to its website. The destinations — which were scheduled for delivery by 2028 across 13 cities — include 19 entertainment zones across the country, including in Riyadh, Makkah, Taif, Dammam, Madinah, Yanbu, and others. No further details were provided and company officials did not respond to EnterpriseAM’s request for comment by dispatch.

The company will inaugurate five destinations out of the 14 this year, Saudi Gazette reported, citing Chairman Abdullah Al Dawood as saying in a televised interview.

BACKGROUND- In November 2022, Seven committed a SAR 50 bn investment to build 21 entertainment destinations in 14 cities and inked several partnerships with global entertainment brands.

Data point

41% — that’s the GCC’s share of global USD-denominated sukuk outstanding, keeping the region at the center of Islamic debt markets, according to a Fitch Ratings report seen by EnterpriseAM. Saudi Arabia accounts for roughly 30% of the total, while the UAE accounts for 7%, with issuance largely funding sovereign budgets, infrastructure projects, and bank balance-sheet growth.

The broader trend: Sukuk are taking a growing share of emerging-market debt. Their slice of USD-denominated EM bond issuance (excluding China) rose to around 16% in 2025, up from 12% in 2024, as sovereigns, banks, and corporates turn to sukuk for refinancing, longer tenors, ESG-linked agreements, and project finance.

Zooming out: Global sukuk issuance topped USD 300 bn in 2025, up about 25% y-o-y, pushing outstanding sukuk past USD 1 tn for the first time. Most new issuance remained investment-grade, underscoring sukuk’s shift from a niche instrument to a core funding channel.

Sports

Spanish defender Pablo Mari joined Al Hilal from Italian side Fiorentina on a six-month contract, with an option to extend for an additional year, the club said in a statement on Sunday. The contract brings the 32-year-old to the club as its first signing of the winter transfer window, Al Arabiya reports.

Barcelona lifted the Spanish Super Cup in Jeddah on Sunday night, with Brazilian winger Raphinha scoring twice to secure a 3-2 victory over Real Madrid, Asharq Al Awsat reports. This is Barcelona’s second consecutive Super Cup triumph, extending their record to 16 titles, three more than Real Madrid, who remain second with 13 titles.

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The big story abroad

The escalation of US President Donald Trump’s fight against US Federal Reserve Chair Jerome Powell via a criminal probe has drawn pushback from Republican senators as well as former Central Bank governors, as the move threatens to backfire and lead to wider support of the Fed chair. Senator Thom Tillis, a Republican on the Banking Committee, which vets Fed nominees, vowed to oppose any Trump nominees to the Fed until the matter is resolved, while several other senators have spoken out against threats to the Fed’s independence.

Some analysts have also said the move will likely push Powell to stay on the Board of Governors, where his term ends in 2028, in defiance and in order to protect the Fed’s independence.

Meanwhile, former Fed Chairs Janet Yellen, Ben Bernanke and Alan Greenspan wrote a statement denouncing the move, saying:” This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly.”

Even US Treasury Secretary ‍Scott Bessent told Trump on Sunday that the investigation “made a mess” and could be bad for financial markets, Axios reported on Monday, citing two sources.

Markets have so far shrugged off the drama, with Wall Street notching record highs, while yields on US 10-year notes and gold prices surged before steadying slightly, and the USD fell.

^^The must-read on the topic: Trump administration probe of Fed’s Powell sparks pushback

If that wasn’t enough drama for Trump, he has also threatened credit card issuers that charge high interest rates, calling for a 10% cap, and threatened a 25% tariff on countries that “do business” with Iran. White House Press Secretary Karoline Leavitt has also said the US is “unafraid to use military force” with Iran, echoing statements made against Greenland earlier last week.

Meanwhile, other business headlines getting attention:

• Paramount Skydance has now sued Warner Bros for more information on Netflix’s takeover bid after Warner Bros’ board rejected its Gulf-backed bid last week. (Reuters)
• Apple will use Google’s Gemini for its revamped Siri in a major vote of confidence for Google in the ongoing AI race. The agreement prompted a 1% rise in Google owner Alphabet, pushing its market cap past the USD 4 tn mark. (Bloomberg)