Good morning, friends. It’s another busy news day. We lead with word that insurance technology startup Rasan has filed to go public, making it one of the nation’s first big fintech players to head to public markets. We also have coverage of the latest purchasing managers’ index (steady as she goes) and a not-unexpected budget deficit in 1Q 2024.

^^ We have all of this and more in this morning’s news well, below. But first:

HAPPENING TODAY-

#1- Qualified investors have until the end of today to place orders for the Nomu IPO ofRiyadh-based construction and mining firm Mohammed Hadi Al-Rasheed. The company is selling a 12% stake on the parallel market, guiding on a price range of SAR 22-28 per share. Each investor can buy a minimum of 10 shares and a maximum of 600k shares. The final share allocation is scheduled for next Sunday, 12 May.

REMEMBER- We have a solid IPO pipeline for Nomu: The parallel market’s pipeline this year includes schools operator Horizon Educational, Riyadh-based advisor Yaqeen Capital (itself a top advisor on Nomu IPOs), medical supplies outfit Qomel, Leaf Global Environmental Services, petroleum derivatives manufacturer Petrol Naas and Arabian United Float Glass.

#2- The inaugural Boao Forum for Asia opens today in Riyadh. The event, hosted by petrochemicals giant Sabic and the Boao Forum for Asia, will see discussion of clean energy, climate change, and sustainable development.

#3- The Saudi Smart Manufacturing trade fair opens this afternoon at the RiyadhInternational Convention & Exhibition Center as part of the Riyadh International Industry Week. It brings together government officials, industry professionals, international and local manufacturers, and buyers to share knowledge and showcase new smart manufacturing technologies and goods. The event is held concurrently at the same location with Saudi Plastics & Petrochem, Saudi Print & Pack and Saudi Smart Logistics. It runs until Thursday, 9 May.

#4- Al-Hilal will take on Al-Ahli at 9pm at Jeddah’s King Abdullah Sports City Stadium. Al-Hilal is currently at the top of the Saudi Pro League’s scoreboard with a nine-point lead on Al-Nassr (74 points), while Al-Ahli is third with 55 points.

#5- The Saudi Smash 2024 is on its third day: The Kingdom’s first-ever professional table tennis event will see 36 matches taking place today — look out for Ali Alkhadrawi and Egypt’s Hana Goda take on Chuqin Wang and Yingsha Sun in doubles action at 8:50pm. The event is organized by World Table Tennis and the Saudi Table Tennis Federation and runs through 11 May. Games include men’s and women’s singles and doubles as well as mixed doubles.

WEATHER- There's (still) a chance of rainfall today in Riyadh with a high of 35°C and a low of 24°C. Makkah is more on the hot side with a high of 41°C and a low of 24°C., while Al Taif will be cool and windy with a high of 29°C and a low of 16°C

WATCH THIS SPACE-

#1- Chinese state-owned conglomerate Citic is set to establish an industrial city and logistics zone for building materials in the Kingdom, state news agency SPA reported yesterday. The news came as state-owned National Housing Company and signed an a cooperation agreement with Citic on the sidelines of Housing Minister Majid Al Hogail’s visit to Beijing last week. The industrial city — the location of which remains unclear — will be home to 12 factories.

The rationale: Driving localization for the local building materials sector by helping local firmsexpand and directly supply real estate projects, according to officials. The agreement will also help raise the quality of finished units in construction projects.

SOUND SMART- With multiple USD-bn gigaprojects in the works and a drive to add housing in Riyadh and beyond, officials are increasingly interested in ensuring that building materials are available — and that the Kingdom has the construction players able to execute.

#2- Dublin-based hotel operator Kerten Hospitality is adding more than 23 projects inSaudi to its portfolio, CEO Marloes Knippenberg told Argaam. These include the House Residence in Neom’s Oxagon, the Wellness Hotel in Abha, and the Urban Eco Resort in Riyadh, among others.

Kerten already operates a handful of properties in Saudi, including Cloud7 Residence AlUla, Dar Tantora the House Hotel in AlUla, and a coworking space in Jeddah, according to Knippenberg.

#3- The European Chamber of Commerce in the Kingdom of Saudi Arabia is set to launch this Wednesday, 8 May, the chamber said on LinkedIn. The chamber will be the first EU chamber of commerce in the Gulf. The launch event is scheduled to take place on Wednesday at the Cultural Palace in Riyadh.

#4- Al Bahah Municipality has added 33 investment projects in its Al Aqiq region on the Furas platform, including restoring and operating commercial buildings, a sports center, playgrounds, a commercial complex, and a hotel, state news agency SPA reports.

DATA POINTS-

#1- Saudi exports to China fell 14% y-o-y in USD 14.4 bn in 1Q 2024, Mubasher reports, citing Chinese government data. The Kingdom accounted for 35% of the total exports from GCC countries to Beijing in the first quarter. Meanwhile, Saudi’s imports from China rose 10.4% y-o-y during the quarter to USD 11.7 bn, the data showed.

#2- The Kingdom wants to have 45.8k occupational safety and health specialists by next year, Okaz quotes Human Resources and Social Development Minister Ahmad bin Sulaiman Al Rajhi as saying at an industry event in Riyadh. Over 11.2k jobs in the field were created over the past three years, Al Rajhi said.

PSA-

#1- Local and foreign Hajj pilgrims alike will need to acquire their Nusuk ID card to be able to access, and navigate Hajj sites in Makkah: The Hajj and Umrah Ministry has launched the Nusuk pilgrim card for Hajj workers to be able to verify the identity of pilgrims in the upcoming Hajj season, according to statements here and here. Pilgrims can get the print copy of the card from their Hajj service provider, while the digital copy can be obtained from the Nusuk and / or the Tawakalna app (App Store | Google Play).

#2- Are you subject to withholding tax? You have until Sunday, 12 May to submit and pay withholding taxes for April, according to a Zatca statement. Late payers will face a fine equivalent to 1% of unpaid fees for every 30 days of delay.

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DID YOU KNOW that we also cover Egypt and the UAE?

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THE BIG STORY ABROAD-

Negotiators from Egypt, the United States, and Qatar are working overtime to prevent indirect talks between Hamas and Israel from collapsing.

Hamas left Cairo last night for Doha. The group said talks in Egypt had been “in-depth and serious,” but that no agreement had been reached. Politico reports that Israeli Defense Minister Yoav Gallant claims Hamas wasn’t serious about a ceasefire agreement and warned of “a powerful operation in the very near future in Rafah and other places across all of Gaza.”

It’s not clear whether talks are continuing in Doha. CIA chief Bill Burns was also in Caro over the weekend — and also left yesterday for the Qatari capital.

The bottom line: “Hamas blamed the lack of progress on Mr. Netanyahu, who vowed again in recent days that the Israeli army will invade Rafah … with or without an agreement. … Palestinians living in miserable conditions in Gaza [will] not experience an imminent reprieve,” the New York Times reports.

Israel slammed the gates closed at the Kerem Shalom crossing, a key entry point along with Rafah for humanitarian aid, after Hamas forces killed three Israeli soldiers. A retaliatory strike by Israel killed at least 19 Palestinians yesterday.

MEANWHILE- The Biden administration has slapped a hold on at least one shipment of ammunition to Israel, Axios reports in an exclusive. US officials have declined to explain the halt, which came after Joe Biden started taking serious domestic fire for his unblinking support of Israel’s war in Gaza.

WATCH THIS SPACE- Is Russia planning sabotage operations across Europe? That’s the warning in the Financial Times, which says that European intelligence agencies believe Russian operatives are “preparing covert bombings, arson and attacks on infrastructure” across the continent.

HAPPENING THIS WEEK-

It’s a quiet morning in the global business pages, but don’t expect that to hold for the whole week:

Chinese leader Xi Jinping is trying to warm-up ties with Europe. He’s in Paris this morning to meet French President Emmanuel Macron and will then see European Commission chief Ursula von der Leyen before heading later this week to Serbia and Hungary.

For our fellow journalism nerds: It’s Pulitzer Prize day — the announcement will drop at 10pm Saudi time here.

Aramco will release 1Q 2024 numbers tomorrow.

For our fellow iSheep: Apple is expected to unveil new iPads tomorrow at 5pm Saudi time (7am Pacific). Pundits are hoping for a revamp of the line that restores some coherence to the offering (and for the Pro to get a FaceTime camera on the long edge), but the only meaningful way to improve on the lineup would be to unshackle iPadOS. You can stream the announcement from Apple’s website or its Youtube channel.

Apple’s announcement kicks off a series of big tech events, including next week’s Google I/O and race toward Apple’s developers conference in June.

The Bank of England’s monetary policy committee will meet on Thursday to review interest rates. Don’t expect a cut.

OIL WATCH-

Aramco has raised by USD 0.90 per barrel the price of its flagship Arab Light Crude for June delivery to Asia, marking the third consecutive month that it has moved to keep a floor under prices.

CIRCLE YOUR CALENDAR-

The Saudi Giga Projects Summit will open next Monday, 13 May at the Hilton Riyadh Hotel and Residences. The Meed event will showcase Saudi’s USD 870 bn giga projects drive. It brings together contractors, suppliers and relevant stakeholders from the region and elsewhere for discussions on potential investments.

The MENA Construction Summit will kick off next Tuesday, 14 May at the Hilton Riyadh Hotel & Residences. Also organized by Meed, the one-day event will bring together developers, contractors, key executives and others to discuss the latest innovations in the construction industry.

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