Larry Fink says what Saudi already knew: The future is about infrastructure and “energy pragmatism”

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WHAT WE’RE TRACKING TODAY

Modern Mills to start trading on Tadawul today, with shares opening at SAR 48.00 each

Good morning, friends. No single story captures the imagination this morning, but we do have a trio of reports on M&A and IPO activity, sentiment about banks, and the growth outlook for the non-oil economy that are worth a few minutes of your time.

Morning must-read: BlackRock is the world’s biggest asset manager. Larry Fink, who helped push climate and ESG investing into the spotlight, now says the future for capital markets centers in no small part on infrastructure and “energy pragmatism.” That view is about 99.9% congruent with economic policy here in the Arab world. We have the full rundown in this morning’s Planet Finance.

IPO WATCH- Modern Mills will ring the bell on Tadawul’s main market today. Shares will open at SAR 48.00 apiece as the milling company wraps up an IPO that saw it sell a 30% stake.

Speaking of IPOs: Al Mohafaza Education shares gained on their first Nomu trading day, rising 6.6% to SAR 19.2 a piece at yesterday’s close. The school operator floated 1.6 mn shares — good for 20% stake of the company — in an IPO that was 324% covered. It was Nomu’s fifth IPO of the year; Nomu is Tadawul’s parallel market for smaller, earlier-stage companies and is open only to qualified investors.

SIGN OF THE TIMES- Miss Universe to feature the first-ever Saudi pageant queen: 27-year-old Saudi model Rumy Alqahtani plans to compete on the Miss Universe Pageant stage in Mexico this September, the influencer told her 1 mn followers on Instagram.

It’s Saudi Green Initiative day. Cabinet set 27 March of each year as the designated day for the initiative, which has three targets for a sustainable long-term climate action through emissions reduction across key sectors, greening the nation, and bolstering biodiversity. The SGI launched in 2021.

WEATHER- Expect warmer temperatures and haze in Riyadh today, with a daytime high of 26°C falling to 15°C. Be sure to pop on those sunglasses and check if your A/C is ready for what’s to come.

It’s more of the same in Jeddah, with temperatures peaking at 32°C before dropping to 20°C.

Meanwhile, Dammam is in for a light afternoon breeze and some sunshine, with a high of 28°C and a low of 16°C.

So, when do we eat? Maghrib prayers are at 6:08 pm in the capital city, and you’ll have until 4:38 am tomorrow to hydrate and caffeinate ahead of fajr. Today is day 17 of Ramadan.

DATA POINTS-

#1-Overall merchandise exports fell 10.3% y-o-y in January 2024, driven by a 13.5% y-o-y drop in oil exports, according to the latest General Authority for Statistics data (pdf). The share of oil exports in total exports was 77.6% less in January 2024, compared to the same month in the previous year.

Non-oil exports inched up 0.8% y-o-yin the same month. Excluding re-exports, the figure dropped to 11.5%. Imports, meanwhile, fell 1.4% y-o-y.

#2- Some 2.4k mining licenses were issued by the end of January 2024, Okaz reports citing a government report. These included building material quarry licenses totalling 1.5k, followed by exploration licenses (613), mining and small mine exploitation licenses (195), surveying licenses (37), and surplus mineral ores licenses (25).

OIL WATCH-

OPEC+ is pushing for boosting investments in the oil sector by USD 14 tn in the next 20 years in a bid to ensure “secure supplies for future generations,” Secretary General Haitham Al Ghais told Emirates News Agency (WAM). The breakdown includes USD 11.1 tn investments in the upstream sector, followed by the downstream sector (USD 1.7 tn) and the midstream sector (USD 1.2 tn).

WATCH THIS SPACE-

#1- The folks at Dubai-based asset manager Aditum Capital have gotten clearance to advise on securities here, according to a CMA statement. The investment boutique was set up in 2018 to offer GCC investors a wide range of asset management solutions.

#2- UAE’s Air Arabia will run a new direct route linking Sharjah to Jizan over the summer. Flights start on Tuesday, 4 June, according to its website.

SPORTS-

#1-Saudi drew with Tajikistan in Dushanbe yesterday 1-1 in the AFC FIFA World Cup qualifiers, leaving the Green Falcons at the top of their group with 10 points, followed by Jordan with seven.

#2- The WWE is set to return to town in May 2024, UK-based sports daily WrestleTalk reports. The wrestling giant held two shows here in 2023, with the latest in November headlined by Roman Reigns vs LA Knight for the Undisputed WWE Universal Championship in Riyadh. Jeddah hosted the WWE World Heavyweight Championship May last year, which was won by Seth Rollins against rival AJ Styles. The show’s name, brand and exact date are yet to be announced.

MORNING MUST READ-

Spanish gov’t snaps up a 3% stake in Telefonica in bid to balance-out stc: The Spanish government has acquired a 3% stake in telecom giant Telefonica through its state holding company Sepi, according to a statement by Sepi. The transaction was valued at EUR 698 mn at Telefonica’s closing price on Monday, according to Bloomberg.

A strategic transaction: “The entry of the Sepi… will provide Telefonica with greater shareholder stability to achieve its objectives, contributing to safeguarding the strategic capabilities of a company that is strategic for [Spain’s] national interests.”

In context: The Spanish government has said it would seek a 10% stake in Telefonica in what analysts say was a bid to offset stc’s acquisition of a 9.9% holding last year. Stc is the Kingdom’s largest telecom operator.

ICYMI- Stc grabbed a 9.9% stake in Spain’s Telefonica in September 2023 to become the telecom giant’s largest shareholder.

BACKGROUND- Stc is investing more abroad. Its unit Tawal has agreed to buy mobile tower infrastructure in Bulgaria, Croatia, and Slovenia worth EUR 1.2 bn from United Group. Stc has also reportedly submitted the highest binding offer to acquire Altice Portugal as part of its push into the European market.

CIRCLE YOUR CALENDAR-

The four-day Townhall Expo is slated for Thursday, 2 May, at Holiday Inn Hotel in Riyadh, featuring over 200 projects from Saudi-Egyptian real estate developers and investors who are aiming to wrap up EGP 2 bn in real estate transactions during the expo.

The three-day Smart Future Expo will open its doors on Monday, 13 May, at the Riyadh Front Exhibition and Convention Center. The gathering will include execs, investors, startups, and exhibitors, offering insights into smart tech including AI, AR, digital twin, cybersecurity, cloud computing, blockchain, business intelligence, IoT solutions, big data, and 3D printing.

Projects tracking and analysis platform Meed is hosting the Saudi Giga Projects 2024 forum on Monday, 13 May, at Crowne Plaza Riyadh, convening contractors, suppliers and top industry execs. The summit will provide an overview of the USD 870 bn mega projects currently under development across the Kingdom including Qiddiya, Roshn, and Neom.

Meed will also be hosting its annual MENA Construction Summit 2024 on Tuesday, 14 May, at the same venue, where industry leaders will have a chance to network and discuss the challenges and potentials of construction tech, climate change resilience and sustainable development in the digital economy.

The two-day Future Projects Forum kick starts on Monday, 20 May, at the Four Seasons Hotel in Riyadh, where contractors and investors will be able to meet 40 project owners including Aramco, the PIF, Investment Ministry, Asir Municipality, Mawani, Modon, and the Transport General Authority. The forum is expected to feature projects worth SAR 1 tn where contractors and investors can access information about these projects and weigh their bidding success chances.

Cityscape Global is slated for 11-14 November 2024 in Riyadh. Last year the real estate event hosted 160k visitors, 380 speakers, 300 exhibitors and saw transactions worth a combined USD 30 bn close.

^^ Check out our full Calendar on the web for links to all of these conferences.

Saudi closes 2023 with 99 transactions to come second in M&As regionally, PwC report shows

Saudi was a top-three M&A market by volume in 2023 with 99 cross-border transactions closing, according to PwC’s TransAct Middle East report (pdf). The UAE, Saudi Arabia and Egypt continued to maintain leadership in the M&As activity in the Middle East last year, accounting for 381 transactions — good for 85.2% of the total volume in the region. Transaction volumes were down for the three countries, with Saudi recording a 13% drop.

Total transaction volume in MENA dropped last year to 447 from 635 in 2022. Corporate M&A activity accounted for 56% of transactions, while private equity investors made up the rest.

By industry: Consumer-related mergers or acquisitions led with 106 transactions, followed by financial services (96) and industrial, manufacturing, and automotive (91). TMT and healthcare rounded out the top five.

Regional outlook for 2024: “We anticipate that 2024 will be a year of growth and activity will be driven by economic diversification goals, decarbonisation, and a focus on localisation and value creation, as organizations transform their business models and look to expand capabilities,” PwC transactions markets leader Romil Radia said.

(Check out this morning’s EnterpriseAM UAE for additional coverage of the report.)

The Public Investment Fund led two of the region’s five largest M&As last year. It acquired minority stakes in local construction firms Nesma & Partners, Almabani General Contractors, El Seif Engineering Contracting and Al Bawani Holding in a USD 1.4 bn transaction. Its acquisition of 80% stake in telecom operator Zain for USD 806.8 mn through a consortium it led was second-largest. Investment bank SNB Capital also placed near the top of the league table when it took 20% stake in homegrown BNPL unicorn Tamara for USD 340 mn.

PwC said the Kingdom’s economic diversification drive, expansion of non-oil activity, and growth in industrial manufacturing and clean technologies industries drove interest in investment here. Legislation was also a key driver in luring in fresh capital after the new Companies Law came into effect. It regulates all forms of businesses under comprehensive national law. Interest was also driven by reforms, including the introduction of the Civil Transactions Law, which is the first local written legal code meant to replace a system in which judges had full discretion in ruling on business disputes on a case-by-case basis according to their own interpretation of shariah.

SAUDI TOPS MENA IPOS IN 2023-

Saudi reigned supreme in terms of Middle East IPOs in 2023, reporting the largest number of IPOs in the region with 36 offerings, according to the report. Despite its position as IPO leader, the figure is down from 41 IPOs a year earlier. Oil driller Ades Holding IPO was the Kingdom’s largest at USD 1.2 bn, followed by SAL Saudi Logistics, which raised USD 700 mn.

What they said: “IPO activity [in Saudi] has also remained strong and we are confident that the region will continue to see a strong pipeline coming through in 2024. We expect the positive momentum to continue as the government privatizes state assets and encourages private sector companies to list in a bid to attract investment, push reforms and move away from dependent on fossil fuels,” PwC Middle East’s Transaction Services Leader Imad Matar noted.

Remember: Saudi’s leadership of the IPO league table is largely thanks to the surge in listings on Nomu — that’s Tadawul’s parallel market for smaller, riskier, earlier-stage companies. Nomu is only open to qualified investors and has easier listing and disclosure requirements. Think of it as Tadawul’s answer to London’s AIM.

More to come: The report took note of Aramco’s potential secondary share sale which could see the oil giant raise up to USD 20 bn. The state-owned oil company is currently in talks with bulge bracket investment banks to quarterback the sale.

REMEMBER- The domestic IPO market is still going strong in 1Q 2024 with regional broadcaster MBC debuting on Tadawul in January in a USD 222 IPO. Avalon Pharma has gone public on the main market and shares of Moderns Mills will start trading today as it wraps its IPO. Al Modawat Specialized Medical Hospital and Pan Gulf Marketing have both made their debuts on Nomu.

Canadian Medical Center eyes transition to main market to help fuel expansion

Nomu-listed Canadian Medical Center (CMC) is gearing up for a transition to the main market Tadawul, Chairman Khaled Al Ammar told Argaam in an interview. He said his company is making the move as it pushes ahead with an ambitious expansion plan that will see it move into new segments of the industry including telemedicine, physiotherapy, outpatient clinics, and others. It is also looking to boost presence in the local emergency medical services market and open new branches in Jubail and Tabuk.

BACKGROUND- CMC recently appointed Al Rajhi Capital as financial advisor to quarterback the move, which is still subject to approval from the exchange.

2023 KPIs: CMC’s net income was flat last year, inching up 0.4% to SAR 15.7 mn, while revenues were up 23.5% to SAR 100.3 mn as it expanded geographically. The company’s BoD approved yesterday a dividend payout of SAR 6.9 mn at SAR 0.09 a share for the second half of 2023. A distribution date has been set for Tuesday, 21 May.

About CMC: The healthcare provider offers multiple medical specialties and other services including setting up clinics, providing medical staff and others. Its client base includes Ades Holding and Arabian Drilling, among others, Al Ammar said.

Local banks top conversation on GCC banking online, new KPMG GCC Banking sentiment index shows

Saudi banks dominated the online conversation about the GCC banking sector, with local consumers the most active and vocal, accounting for 83.3% of total conversation on social media, according to the KPMG GCC Banking sentiment index (pdf). Saudi bank clients dominated the conversation thanks in part to our large population and widespread internet access.

For the W: Solid operations accounted for 30% positive mentions of Saudi banks, followed by Kuwait at 19.1%, Oman (18.1%), UAE (16.5%), Qatar (9.7%), and Bahrain (7.5%). Local lenders ranked fourth in terms of reputational sentiment at 16.3% with positive reputational drivers including financial news, loan products, CSI activities and others. They also received the most positive feedback for their online applications.

For the L: Banks here and the UAE saw the highest volume of customer service-related complaints among their GCC peers. Complaints mainly concentrated on service downtime, transfer delays, and long waiting times. Negative sentiment came in second after the UAE, where 24.2% of online conversation focused on client frustration with issues including the speed of online apps and quality of services received.

Robust non-oil growth this year, with inflation peaking at 2% in 2H 2024 — Capital Economics

The non-oil economy should grow a solid 5% this year, Mubasher reports citing a note by Capital Economics. This will be fuelled by increased investments by the Public Investment Fund, which plans to ramp up annual deployment capacity to USD 70 bn a year starting 2026. Meanwhile, GDP is forecasted to expand at a 2.8% clip in 2024.

Inflation is set to rise slightly in the second half of the year to reach a peak of a little over 2% on an annual basis, Capital Economics said, adding that price pressures would still remain relatively low. Inflation inched up to 1.8% y-o-y in February 2024, marking a second consecutive monthly rise after January’s reading interrupted a seven-month downward trend

A key risk: Capital Economics warned of a major risk to the economy in case of a sudden plunge in oil prices under USD 70 a barrel. This would push the government to turn towards fiscal austerity instead of withdrawing from foreign reserves to alleviate pressure on the local currency’s peg to the greenback.

Cenomi Centers reports solid 2023 results, a record high footfall rate

Our friends at Cenomi Centers recorded a 49% y-o-y surge in net income to SAR 1.5 bn in 2023, it said in an earnings release (pdf). Revenues were up 2% y-o-y to SAR 2.3 bn in the same period.

On a quarterly basis, the bottom line rose 24% y-o-y to SAR 482 mn in 4Q 2023, while the top line inched down 1.3% y-o-y to SAR 544 mn, according to data seen by Argaam.

Growth drivers: The retail giant attributed the strong report to a mix of 3.8% y-o-y growth in net rental revenue to SAR 2.1 bn; 8.8% y-o-y growth in media sales to SAR 89 mn; and income from the sale of non-core franchise brands, as well as s from property investments.

Cenomi reported record-high footfall across its portfolio with 124 mn visitors last year — a 19% y-o-y increase. Occupancy rates came in at 93% in 2023. Some 63 new brands were onboarded to Cenomi’s malls portfolio, bringing the total to 160 by the end of last year. The new brands include Samsonite, Dyson, the inaugural Starbucks Reserve in Jeddah Park, and LuLu Hypermarket. Also on the occupancy front: U Walk Jeddah has a pre-let rate of 80%.

What’s next? The lifestyle destinations operator and developer has six projects in the pipeline that it expects will raise its total gross leased area (GLA) by 44% to around 2 mn sqm by 2027. “Cenomi Centers’ has a robust pipeline with six flagship and lifestyle centers underway including flagships Jawharat Riyadh and Jawharat Jeddah set to open next year and Jawharat Al Khobar in 2027, delivering unique and differentiated premium shopping experiences,” said CEO Alison Rehill-Erguven.

Boosting shareholder returns: The company will distribute a dividend of SAR 356 mn at SAR 0.75 per share for 2023 to eligible shareholders on Tuesday, 16 April, it said in a disclosure to Tadawul. Meanwhile, Cenomi has approved a dividend policy which will see it pay SAR 0.38 per share on a quarterly basis for one year starting 2Q 2024, it said in a separate disclosure.

LUMI + KINGDOM HOLDING ALSO REPORT RESULTS

#1- Car rental firm Lumi reported an 11.8% y-o-y rise in net income to SAR 160.6 mn, it said in a disclosure to Tadawul yesterday. Its revenues were up 41.3% y-o-y to SAR 1.1 bn in the same period. It attributed the growth in net income to higher sales which were driven by an increase in lease, rental and used car sales revenue.

REMEMBER- Lumi went public in September 2023 after raising USD 290 mn in one of the region’s biggest IPOs last year. The six-month lockup for pre-IPO shareholders expired earlier this week.

#2- Kingdom Holding’s net income fell 85.4% y-o-y to SAR 1 bn, while revenues were up 8.5% y-o-y to SAR 2.7 bn, it said in a disclosure to Tadawul. It said the swing in net income owed in part to a tough comparable, as the FY 2022 figure included one-off gains from the sale of part of its stake in Four Season Holdings.

The bottom line in 2023 also came under pressure from a rise in operating costs at its hotels, financial charges and general, administrative and marketing expenses. Separately, the investment firm has recommended a dividend payout of SAR 1 bn at SAR 0.28 per share for FY 2023, it said in disclosure to Tadawul.

#3- Seera Group turned to profitability in FY 2023 to report a net income of SAR 265 mn versus a net loss of SAR 46 mn a year earlier, the leading travel agency group said in a disclosure to Tadawul yesterday. Its revenues jumped 55.7% y-o-y to SAR 3.3 bn. Its net booking value was up 35% y-o-y to SAR 12.5 bn to record its highest net booking value in its 40+ history.

#4- Saudi Re’s net income grew 63.6% y-o-y to SAR 124.4 mn in 2023, while revenues were down 10% y-o-y to SAR 627.2 mn, it said in a disclosure to Tadawul .

Energy transition minerals in spotlight as Riwaq inks JV with UK’s Power Metals to explore Arabian Shield

UK’s Power Metals Resources + Saudi’s Riwaq to cooperate on minerals exploration in Saudi: Saudi’s Riwaq Al Mawarid for Mining (Riwaq) — a subsidiary of Australian battery chemicals and technology company EV Metals Group (EVM) — has signed a binding earn-in joint venture agreement with UK exploration company Power Metals Resources to expand EVM’s exploration activities in the Arabian Shield, according to a press release.

What are they looking for? Lithium, nickel, and copper / molybdenum — all are critical for battery manufacturing and the energy transition.

The details: Riwaq holds legal ownership of 15 tenements covering 1487 sq km, with exploration licenses already granted for 11 and another four pending. Power Metals will invest USD 350k within 12 months to earn a 20% stake in the tenements and could go up to 30% with a follow-on investment. They plan to form a JV later to continue exploration.

REMEMBER- Saudi recently completed an analysis on 88k geochemical samples from the Arabian Shield: The Saudi Geological Survey (SGS) completed geochemical analysis on 88k samples from the Arabian Shield after a scanning 540k sq km in the region in a bid to identify investment locations for mining companies worldwide in February. SGS analyzed 76 elements per geochemical sample and final results will be fed into the country’s National Geological Database.

About Power Metals Resources: Power Metals Resources is a London-based metals exploration and development company, focused on financing and managing global resource projects to uncover significant metal discoveries. The company currently has active projects in Australia, Botswana, Canada, Tanzania and the US, according to its website.

Cabinet approves rules for handling requests by public entities looking to form JVs

Cabinet has approved rules for handling requests by public entities to form joint ventures or form any income-making entity, state news agency SPA reported yesterday. No further details were provided on the decision. It said the government will bear visa costs for seasonal workers brought in for the livestock sacrifice program Adahi during Hajj.

Gaza also gets a mention: The Cabinet welcomed a UN Security Council resolution calling for an immediate ceasefire in Gaza during Ramadan. This comes one day after the Foreign Ministry welcomed the resolution, the first since similar resolutions were vetoed by the US since Israel’s war on Gaza in October.

Also approved at yesterday’s Cabinet meeting:

Mandating the Investment Minister to discuss and sign a MoU with the World Bank’s private investment arm International Finance Corporation (IFC);
Mandating the Investment Minister to discuss and sign a MoU with Tunisia to promote FDIs;
Mandating the Culture Minister to discuss and sign a MoU on cultural cooperation with Tajikistan;
A MoU between the Environment, Water and Mineral Resources Ministry and Turkey in agricultural fields;
A MoU between the Industry and Mineral Resources Ministry and Mauritanian counterparts in mining;
A MoU between the Saudi Space Agency (SSA) and the Egyptian Space Agency (EgSA) in space activities for peaceful purposes;

Tamimi Energy partners up with Dubai-based Positive Zero to expand solar capacity. Plus: technology, aviation, and debt news

ENERGY-

Tamimi Energy + Positive Zero partner on expanding solar capacity at home: Subsidiaries of local Tamimi Energy and Dubai-based decarbonization firm Positive Zero have signed a partnership agreement to develop solar projects across the Kingdom, according to a statement. The companies will work together to finance, develop and source talent and tech for commercial and industrial solar power solutions across the Kingdom.

REMEMBER- Positive Zero just received a lot of funds to put towards decarbonization projects: US-based investment giant BlackRock invested USD 400 mn in Positive Zero through a diversified infrastructure fund. The investment allows Positive Zero to grow its sustainable energy adoption and offer fully financed sustainable energy solutions across the GCC which it has already begun doing in the UAE and Oman.

TECHNOLOGY-

Investment Ministry teams up with UK’s Envada on digital transformation: The Investment Ministry has inked an MoU with NYSE-listed software development company Envada to support the digital acceleration of government entities and leading private sector businesses by offering advisory services, according to a statement. Envada has a market cap of over USD 2 bn and a solid record in the logistics, retail, and payment solutions industries.

DEBT WATCH-

Tam Development secures Sharia-compliant loan from Banque Saudi Fransi: Digital solutions consultancy firm Tam Development signed a one-year Sharia-compliant banking facility agreement worth SAR 25 mn with Banque Saudi Fransi (BSF) to cater to multiple financing needs and facilitate the issuance of bank letters of guarantee, it said in a disclosure to Tadawul.

AVIATION-

Riyadh Air is now part of the United Nations Global Compact (UNGC) initiative — a corporate sustainability initiative focused on promoting sustainable development goals, according to a statement. In a formal letter to UN Secretary General Antonio Guterres, the PIF-owned airline pledged to adhere to the UN Global Compact’s ten principles on sustainable practices in environment, labor, and anti-corruption. The airline also plans to release its inaugural sustainability report prior to its inaugural flight scheduled for mid-2025.

BlackRock’s Larry Fink says what the Arab world already knew: It’s all about infrastructure and “energy pragmatism.”

Finance will be “key to addressing two of the mid-21st century’s biggest economic challenges,” BlackRock boss Larry Fink writes in his annual letter to shareholders, zeroing in on infrastructure in general (and energy infrastructure in particular) and how to pay for retirement when a growing percentage of the world’s population is aging.

Why it matters #1: Fink co-founded and leads a business that he’s grown from an eight-person shop into the world’s largest asset manager. His writing is cogent and he has consistently put a ton of effort into making his annual letter to shareholders into exercises in strategic thinking. He’s not just his generation’s Warren Buffett, in that sense — his notes are now scrutinized at least as carefully as the Oracle of Omaha’s were back at the height of his influence.

Why it matters #2: Fink’s past letters made climate change and “stakeholder capitalism” (as it is now trendy to call ESG investing) mainstream topics on Planet Finance.

What’s in it for folks who live, do business, or invest in our part of the world? The infrastructure piece, right now. And the retirement issue, too — if we’re smart. (More on the retirement bit in another Planet Finance column to come.)

On infrastructure: Fink argues that “as countries decarbonize and digitize their economies, they’re supercharging demand for all sorts of infrastructure, from telecom networks to new ways to generate power. In fact, in my nearly 50 years in finance, I’ve never seen more demand for energy infrastructure.”

Citing trips to nearly 20 countries worldwide, he writes that countries “have twin aims: They want to transition to lower-carbon sources of power while also achieving energy security.”

His solution will sound awfully familiar if you live in Egypt, Saudi Arabia, or the UAE: “The future of infrastructure is public-private partnership,” he writes, and the adoption of an “energy pragmatism” approach — embrace renewables, yes, but don’t abandon the fossil fuels we need to cool our homes and grow our economies until the moment is right.

BlackRock is a big investor in both renewable energy and hydrocarbon companies, and Fink knows that pragmatism will expose him to arrows from both sides. His argument that energy pragmatism is the real “path to decarbonization” will ring true to Saudi ears — and to folks in Germany and Texas, which he cites as examples of the policy in action.

Putting his money where his mouth is: BlackRock said in January that it was going after the USD 1 tn infrastructure market by acquiring Global Infrastructure Partners to create a “world-leading infrastructure private markets investment platform.”

Read for yourself: Fink’s letter is online here.

Read what others are saying: Financial Times | Wall Street Journal | New York Times | Business Insider

THE MARKET THIS MORNING-

Asian markets are mostly in the red this morning, with just the Nikkei bucking the trend. US stock futures are edging higher after the S&P 500 recorded its third straight day of losses, suggesting there’s a chance it will break into the green today. Futures for major European benchmarks trended mostly lower overnight.

TASI	12,586	-0.7% (YTD: +5.2%)
MSCI Tadawul 30	1,590	-0.2% (YTD: +2.5%)
NomuC	26,658	-2% (YTD: +8.7%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6.5% repo	5.5% reverse repo
EGX30	29,058	-1% (YTD: +17%)
ADX	9,319	-0.01% (YTD: -2.7%)
DFM	4,246	-0.8% (YTD: +4.6%)
S&P 500	5,216	+0.04% (YTD: +9.7%)
FTSE 100	7,931	+0.17% (YTD: +2.6%)
Euro Stoxx 50	5,064	+0.4% (YTD: +12%)
Brent crude	USD 86.1	-0.75%
Natural gas (Nymex)	USD 1.6	-2.5%
Gold	USD 2,178	+0.3%
BTC	USD 70,176	+3% (YTD: +160%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.7% yesterday on turnover of SAR 9.9 bn. The index is up 5.2% YTD.

In the green: Saudi Cable (+9.9%), Mouwasat (+8%) and Al Baha (+7%).

In the red: Alkhaleej Training (-9.9%), Riyad REIT (-7.9%) and Saudi Ground Services (-7.3%).

THE CLOSING BELL: NOMU-

The NomuC fell 2% yesterday on turnover of SAR 656.6 mn. The index is up 9% YTD.

In the green: Tam Development (+9%), Al Babtain Food (+7.5%) and Fadeco (+6.9%).

In the red: Jahez (-10.3%), Ghida AlSultan (-9.9%) and Lana (-9.6%)

CORPORATE ACTIONS-

#1- Alinma Bank will hike its capital to SAR 25 bn, up from SAR 20 bn through issuing one bonus share for every four shares, a statement by the CMA read. This will be financed through retained earnings.

#2- Arab National Bank’s BoD has recommended a share buyback of up to 5 mn shares for allocation to its employee stock ownership program (ESOP), it said in a disclosure to Tadawul. The share buyback will be self-funded.

#3- Budget Saudi’s BoD has recommended a dividend payout of SAR 71.2 mn to its shareholders at SAR 1 per share for 2023, it said in a disclosure to Tadawul. The distribution date is yet to be announced.

#4- Shareholders of Yamama Cement have approved a dividend payout of SAR 202.5 mn at SAR 1 a share for 2023, it said in a disclosure to Tadawul. Dividends will be distributed on Sunday, 21 April.

Crown Prince discusses Saudi-US cooperation with US Armed Services Committee Chairman

Crown Prince Mohammed bin Salman discussed avenues for cooperation between Saudiand the US during a meeting with US House Armed Services Committee Chairman Mike Rogers, state news agency SPA reported yesterday.

MEANWHILE- Shura Council Speaker Abdullah Al Sheikh has been invited to visit Russia for talks with counterparts in Moscow, state news agency SPA reported yesterday. The invitation was extended by Russian State Duma Speaker Vyacheslav Volodin through Russia’s Ambassador in Saudi, Sergey Kozlov.

REMEMBER- Russia is eying joint parliamentary cooperation with Saudi: Volodin made his first visit to the Kingdom last month, where he discussed prospects of joint parliamentary cooperation with Crown Prince Mohammed bin Salman. He also put forward a proposal that Saudi Arabia and Russia sign an inter-parliamentary agreement during a meeting with the Shura Council’s Al Sheikh.

OTHER DIPLO NEWS-

Foreign Minister Prince Faisal bin Farhan discussed developments in Gaza during a phone call with French counterpart Stephane Sejourne. (SPA )

CALENDAR

APRIL

8-11 April (Monday-Thursday): Saudi Super Cup, Abu Dhabi.

10 April (Wednesday): Eid al-Fitr

14-21 April (Sunday-Monday): IMF and World Bank spring meetings, Washington, DC

16 April (Tuesday): FEI World Cup Equestrian, Riyadh.

28-29 April (Sunday-Monday): World Economic Forum Special Meeting, Riyadh.

29 April-1 May: Future Hospitality Summit at Al Faisaliah Hotel, Riyadh.

MAY

2-5 May (Thursday-Sunday): Townhall Expo, Riyadh.

6-9 May (Monday-Thursday): Saudi Smart Manufacturing, Riyadh.

6-9 May (Monday-Thursday): Saudi Smart Logistics, Riyadh.

13-15 May (Monday-Wednesday): Smart Future Expo, Riyadh.

13 May (Monday): Saudi Giga Projects, Riyadh.

19-21 May (Sunday-Tuesday): Saudi Energy Convention, Riyadh.

20-21 May (Monday-Tuesday): Future Projects Forum, Four Seasons Hotel, Riyadh.

21-23 May (Tuesday-Thursday): The Saudi Food Show, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

4-7 June (Tuesday-Friday): Saudi Sports Show, Riyadh.

4-7 June (Tuesday-Friday): Aqarat Expo, Riyadh.

5 June (Wednesday): World Environment Day.

Signposted to happen sometime in June:

Eid Al-Adha (national holiday)

AUGUST

12-15 August (Monday-Thursday): The Saudi Food Expo, Riyadh

SEPTEMBER

11-12 September (Wednesday-Thursday): The Saudi Event Show, Riyadh.

17-19 September (Tuesday-Thursday): EV Auto Show, Riyadh.

24-26 September (Tuesday-Thursday) Saudi Infrastructure Expo, Riyadh International Convention and Exhibition Center, Riyadh.

23 September (Monday): National Day (national holiday)

NOVEMBER

26-28 November (Tuesday-Thursday): Saudi Electricity Expo, Riyadh.

11-14 November (Monday-Thursday): Cityscape Global, Riyadh.

DECEMBER

2-13 December (Monday-Friday): Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification, Riyadh.

Signposted to happen sometime in 2024:

The AFC Champions League Elite

2025

FEBRUARY

10-13 February (Monday-Thursday): Leap 2025, the Kingdom’s premier tech investment conference

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