Of Brits, AI ScarJo, and the passing of time

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Over 300 British companies will start landing in Riyadh today

Good morning, friends, and welcome to another packed issue. Two themes run deep: Capital markets (we have another IPO) and technology (where the global obsession with AI looks set to get even more intense in the weeks ahead). But first:

HAPPENING TODAY-

As many as 450 execs from some 300 British companies will descend upon Riyadh today and tomorrow for Saudi Great Futures, a UK government-sponsored investment conference backed by our friends at HSBC.

Deputy Prime Minister Oliver Dowden will be leading the delegation as part of a year-long campaign that UK officials hope will result in expanded “trade, tourism, education, and cultural activity.” Dowden is no stranger to Saudi — the Tory MP spoke last fall at the Future Investment Initiative — check out his remarks here.

“We’re opening up our markets to one another, so that investment, exports, tourism and collaboration flows in both directions,” Dowden told Bloomberg.

The pitch: “The Saudis have a respect and appetite for British intelligence, ingenuity, skills and experience from architecture to education, clean tech to AI, luxury to fashion and creativity to construction,” the event website declares. Dowden’s office notes that the “five lead gigaprojects” will see investment of c. USD 3 tn through 2030.

Also getting attention this morning: Gigaprojects after yesterday’s Saudi Gigaprojects 2024, hosted by Meed. Top execs from projects including The Line, Diriyah, and New Murabba were on hand to talk up a USD 880 bn pipeline.

The big issue? Time. “I think our biggest problem with these projects is time,” said Oussama Kabbani, a top official at PIF-backed Roshn Real Estate. “Make no mistake we made commitments to His Royal Highness that we will be a showcase of the 2030 Vision. The challenge now is how much we can achieve from our promise,” Bloomberg quotes him as saying.

We saw this coming: We reported in December that officials had accepted that they may have to accept modest fiscal deficits as the price of pursuing growth. “ We intentionally decided to spend more and cause the deficit. If you spend that money right, on productive assets, then it’s money well spent,” Finance Minister Mohamed Al Jadaan said at the time. He signaled the ministry would continue to run deficits to support the “government’s strategic expansionary spending” even as it paced out some components of select gigaprojects. Some officials have taken to calling gigaprojects modular and Neom has gone on a drive to underscore to contractors and bankers that everything is on track.

A delegation headed by Transport Minister Saleh Al Jasser is in Finland to discuss localizing the smart transport industry with Finnish officials, the Transport Ministry said yesterday. Al Jasser will meet Finnish Foreign Trade and Development Minister Ville Tavio, as well as the ministers of transport and communication, and economic affairs, along with some industry leaders, according to a Finnish Foreign Ministry statement. The trip wraps up today.

WEATHER- There’s a chance of rain in Riyadh with a daytime high of 38°C and a low of 29°C. Makkah is set for a clear sky with a high of 41°C while the low is expected at 29°C, while a windy weather is in the cards for Jeddah with a high of 35°C and a low of 29°C.

HAPPENING THIS WEEK-

It’s shaping up to be an important week for Saudi-US relations. US Energy Secretary Jennifer Granholm is due in town later this week, suggesting that talks are advancing on a pact that could see US support for the Saudi nuclear power industry. A nuclear energy pact is one of three cornerstone agreements (along with one on defense and a third on AI and advanced technologies) that could be part of a grand accord that sees us normalize relations with Israel.

ALSO THIS WEEK- Nasa Administrator Bill Nelson will be in Riyadh this week as part of a tour that will also take him to Italy. “Nelson will meet with Saudi Space Agency and other senior officials to discuss future collaboration and underscore the importance of civil space cooperation for the broader United States and Saudi Arabia relationship,” a Nasa statement reads.

DATA POINTS-

#1- Car prices rose 15% over the last five years, Aleqtisadiah quotes Haji Husein Alireze (HHH) Managing Director Ali Reda as saying. HHH is the distributor of the Mazda, Man, and Aston Martin brands in the Kingdom. The surge in prices is a result of global inflation as well as higher shipping and ins. costs due to geopolitical tensions (think: the Houthis), Reda said. The market has also been impacted by the higher interest rate environment — which also impacted purchasing power and drove down demand, he said.

ALSO- Some 93k cars were imported last year, a 39% y-o-y increase, the news outlet reports, citing data from the Zakat, Tax, and Customs Authority (Zatca).

#2- The number of listed companies in Saudi reached 310 by the end of 2023, rising 50% since the pandemic, Capital Market Authority Chairman Mohammed Bin Abdullah Elkuwaiz said in a statement. Speaking at a public session hosted by the Milken Institute last week, Elkuwaiz said the local capital market was now among the top 10 leading markets globally and had the 16th highest IPO proceeds.

In his words: “Being open to the world and easing foreign investment in a way that shall achieve the Kingdom’s objectives are among the enablers of creating a capital market that is liquid enough to contribute to financing new sectors of economic activity and sustainably increase the capacity of our markets via more international investors, increasing freefloat, and more liquidity,” Elkuwaiz said.

WATCH THIS SPACE-

#1- PIF-owned Saudi Entertainment Ventures (Seven) has been added to Qiddiya Investment Company’s portfolio, which is also owned by the sovereign wealth fund, state news agency SPA reported yesterday. Seven’s addition to QIC aims to “achieve integration between the two company’s activities in the [entertainment] sector.” No further details were provided.

Background: Qiddiya, a USD multi-bn development, aims to become the world’s largest entertainment hub. The district will be home to the first Dragon Ball themed park as well as a multi-use stadium where Qiddiya plans to host major sports, cultural and entertainment events, including games at the 2034 Fifa World Cup. The destination will also be home to the world’s first gaming and esports district. QIC’s board recently approved the launch of a new water theme park that is slated to be the first of its kind in Saudi and the largest in the region.

Seven has some plans up its sleeve: It’s investing over SAR 50 bn to build 21 entertainment destinations in 14 cities across the country, including Riyadh, Makkah, Taif, Dammam, Madinah, Yanbu and others. It unveiled its first entertainment destination in Abha’s Aseer province in November last year.

#2- Shareholders of Kingdom Holding Company (KHC), will vote on the group’s acquisition of an additional stake in Citigroup on Monday, 3 June, the Tadawul-listed company said in a disclosure to Tadawul yesterday. The transaction will see Kingdom raise its stake in Citigroup to 2.2% through the acquisition of an additional stake worth SAR 1.7 bn (USD 450 mn) from its chairman, Prince Alwaleed bin Talal.

REMEMBER- Alwaleed and Citigroup go way back: Alwaleed’s ties with Citigroup date back to the early 1990s, when he poured in USD 590 mn to become the investment bank’s largest shareholder at the time.

KHC’s ownership: Prince Alwaleed currently owns a 78.1% stake in the company, with 5% of its stock trading on Tadawul. The PIF acquired a 17% stake in KHC from Prince Alwaleed in 2022 in a USD 1.5 bn transaction.

#3- Pakistan plans to have a number of “major agreements” ready for signing ahead of a Saudi delegation visit to Islamabad, Pakistan’s Commerce Minister Jam Kamal Khan said at a press conference (watch, runtime: 1:04) yesterday. “A higher delegation from Saudi Arabia will definitely come to Pakistan, so before that, we should make a final form of these things, so that in the final form of B2B (business-to-business), some major agreements are signed,” he said. Khan did not disclose details on when the Saudi delegation will visit Pakistan or the specific agreements that could be signed during their visit.

In context- Pakistani officials said earlier this week that arrangements were being “worked out” for Crown Prince and Prime Minister Mohammed bin Salman’s visit to Pakistan. Plans for the visit were first made public by Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar last week after the conclusion of a visit by a delegation of senior Saudi officials to Pakistan during which they attended a two-day investment conference. There had been rumblings that the visit could take place as early as this month, but officials have yet to confirm a date.

A much anticipated visit for crisis-hit Pakistan: The visit could help bring Pakistan closer to a USD 5 bn investment package by Saudi that was discussed during a meeting between the Crown Prince and Pakistan’s prime minister last month. Saudi has been among key supporters of Pakistan, extending the term of a USD 3 bn in deposit at the State Bank of Pakistan for an additional year to mature in December 2024. This is in addition to USD 2 bn in financial assistance from the Kingdom last year to shore up the country’s finances.

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PSA-

REGULATION WATCH- The government will gradually roll out a decision to make it mandatory for employers to pay the monthly salaries of their domestic workers through the Musaned platform, according to a statement from the Human Resources and Social Development Ministry.

The new system will be applied to all new contracts starting Monday, 1 July 2024, while it will be rolled out gradually to existing contracts between 1 January and 1 October, 2025. It’s expected that by 1 January, 2026, everyone will be part of the new system. Musaned has been available to be used on a voluntary basis since 1 April, 2022.

THE BIG STORY ABROAD-

It’s a really, really tech-heavy morning in the business press: Reviews are out for the iPad Air and iPad Pro models that Apple announced last week, ChatGPT maker OpenAI released a voice-assistant-like product that will chat with you in the (unauthorized, dystopian) voice of Scarlett Johansson in Her.

Meet Her: OpenAI is actually calling it Chat-GPT4o (the letter ‘o’ at the end, not a zero) and it lit our X and Threads on fire for sounding exactly like Johansson in a movie in which a character falls in love with an AI voice assistant. You can chat with GPT4o using your voice — and it can turn on your device’s camera to have a look around if it’s relevant to your ‘conversation.’ And unlike the current incarnation of Siri, it appears pretty seamless.

You can try it now for yourself: Head here to learn more or listen to a demo. If you already have a subscription to ChatGPT and have it running in a browser, do a hard refresh and then hit the dropdown menu on the top left to choose ChatGPT-4o.

The story is everywhere: The Verge | Financial Times | Wall Street Journal | Reuters | CNBC

You can already feel the ennui in this CNBC headline: AI may not replace you, but someone who uses it can — here’s the No. 1 skill you need to stay relevant.

UP NEXT- the Google I/O developer conference starts this morning. The Mountain View company is expected to announce (you guessed it) a new AI-powered voice assistant and a bunch of other Android goodies.

Consider it the prelude to a few very tech-heavy weeks: Microsoft’s Build conference runs next week (21-23 May) and could see Redmond announce an AI-powered search app based on ChatGPT. All eyes then turn to Cupertino for Apple’s WWDC, at which the tech giant will unveil new versions of its various operating systems with plenty of AI baked in. Pundits will be watching to see how much of the AI goop Apple layers onto its OSes is homegrown and how much is licensed from ChatGPT or Google — it’s in talks with both.

ALSO IN AI- A UAE research institute has rolled out a new, open-source GenAI model named Falcon 2, it said in a statement yesterday. The institute says the model outperforms both Llama 3 from Meta as well as Google’s Gemma, which underpins the Gemini products. “We were able to achieve way higher performance than a lot of the bigger guys, and at a fraction of their compute and a fraction of their team size,” a top UAE tech official told Bloomberg.

REVIEWS- So, should you buy a new iPad? Will the device be transformed in a few weeks’ time by the unveiling of a new iPadOS that makes it as Mac-like as the new keyboard case now on sale for the Pro model? In search of answers, we bring you:

Apple iPad Pro (2024) review: the best kind of overkill. (The Verge)
The new Apple iPad Air is great — but it’s not the one to get. (The Verge)
iPad Pro vs. MacBook: The great Apple laptop trade-off. (WSJ)

CLOSER TO HOME- Israeli troops have been let loose in both the north and south of Gaza and Israel has proposed that the Palestinian Authority should run the Rafah border crossing, which Israeli troops took over last week.

JOIN US IN CAIRO?

Egypt’s top executives and business owners will gather in Cairo on Wednesday, 5 June for the Enterprise Optimism Forum.

On the menu: Blunt talk about a future that sees Saudi Arabia, Egypt, and the the UAE at the heart of a more vital Middle East economy.

The goal: To provide an early, actionable roadmap for those who are “long Egypt.”

** Interested in attending? Tap or click here to let us know. ** Seating is limited and available on an invitation-only basis.

Saudi’s Nupco is shopping for bankers ahead of its IPO on the Tadawul

The National Unified Procurement Company (Nupco) — a unit of the PIF — has reportedly tapped Rothschild & Co as financial advisor for its potential Tadawul IPO, Bloomberg reports, citing sources it says are familiar with the matter. The medical procurement company has reportedly opened the door for banks to “pitch for roles” in its upcoming debut, the business information service says.

What we know so far: The offering could raise less than USD 1 bn in proceeds, the sources added without providing further details on the scale or timeline of the transaction.

Background: Word that Nupco might be headed for an IPO first surfaced back in October 2023 as part of the PIF’s strategy to unlock fresh sources of capital to finance the government’s economic diversification projects. Pieces of PIF’s portfolio companies may soon be up for grabs as part of the fund’s plan. This could include anything from Saudi Telecom (Stc) to Maaden and Tadawul Group, with Saudi Global Ports also said to be a candidate to list before the year is done.

IPO PIPELINE AT A GLANCE-

Among the transactions now in the market or expected soon:

Fintech startup Rasan is set to sell a 30% stake, with subscription now open to institutional investors;
Labor agency Saudi Manpower Company (Smasco) is selling a 30% stake;
Water treatment outfit Miahona has priced its IPO at the top of the range after recording strong investor appetite;
Dr Soliman Abdul Kader Fakeeh Hospital looks set to become the largest IPO so far this year;

Budget airline Flynas is reportedly looking to go public this year;

PIF-backed lender Riyad Bank is considering the listing of its investment banking arm Riyad Capital;
Hotels and resorts operator Boudl has filed to go public;

Fourth Milling Company will list before the end of June;
Singapore’s Olam Group is mulling the IPO of its Olam Agri subsidiary on Tadawul;
Hypermarket operator Lulu is said to be eyeing a dual listing on Tadawul and ADX;
Aster DM Healthcare looks set to spin-off its GCC assets and seek a dual listing on Tadawul and in the UAE.

IN OTHER IPO NEWS-

Yaqeen Capital has extended the subscription period for its IPO on parallel market Nomu until Thursday, 23 May, from the initial deadline this past Sunday, 12 May, according to a supplementary prospectus (pdf). The final shares allocation is slated for Tuesday, 28 May and refunds are scheduled for Monday, 3 June.

Only 1% of local businesses are at an advanced stage for overall cybersecurity readiness, says Cisco

Saudi businesses have some distance to go when it comes to cybersecurity readiness: Only 1% of firms have reached the “mature stage” of overall cybersecurity readiness in 2024, according to Cisco’s Cybersecurity Readiness Index report (pdf), which assesses the readiness of organizations globally to confront cybersecurity risks. This compares with a declining global average of 3% from 15% last year in terms of the most advanced state for overall readiness as Cisco sheds light on the declining state of overall cybersecurity readiness globally in comparison with 2023.

Dive deep: 27% of local firms are at the “progressive” stage for overall cybersecurity readiness while 69% are at the “formative stage” and 3% are beginners, according to the report.

The report assesses cybersecurity readiness across five pillars, which include identity intelligence, machine trustworthiness, network resilience, cloud reinforcement, and AI fortification.

Most of the local firms surveyed by Cisco “are in the early stages” of identity intelligence readiness with 58% in the formative stage and 27% in the beginner stage. Only 2% of companies fall under the mature category, with Cisco describing the figures as “worrying given the clear threat presented by identity management.”

The majority of local companies are also at the most basic levels of readiness in terms of network resilience, with 56% at the formative stage and 10% at the beginners stage. Only 3% are at the mature stage, with 31% at the progressive stage. Cloud reinforcement (think improved cloud security) show Saudi businesses lagging begin, with the majority at the most basic levels of readiness. Only 3% of firms are at the mature stage.

Saudi businesses are doing better in one pillar than everyone else: Some 68% of local businesses surveyed are working ot understand what AI means to them in comparison to the global average of 46%, according to Cisco. Another 27% are in the formative stage, while 1% are at the beginners phase, and 4% of businesses are at the mature stage.

The PIF, meanwhile, is ahead of the game: The PIF’s Saudi Information Technology (Site) signed an agreement last month with South Korean IT solutions provider AhnLab to establish a cybersecurity joint venture. They’re looking to market cybersecurity solutions to government agencies and the private sector in Saudi and across the region and into North Africa. A wholly owned unit of Site is set to acquire a stake in the Seoul-based firm through a KRW 74.4 bn (c. USD 55.3 mn) capital injection on 27 June. Cyberani, a subsidiary of Aramco, recently partnered with French defense electronics provider Thales to bolster local digital infrastructure for cybersecurity.

An overview of Saudi domains in 2023

More than 17k new domains were registered in Saudi in 2023, rising 40%y-o-y, the Communications, Space and Technology Commission (CST) said in its Saudi Domain Report 2024 (pdf). The rate of growth in new domain registrations tripled last year compared to 2022, the report showed. The private sector accounted for 89% of registered new domain names, followed by the public sector with 9%, and individuals at 2%, the report showed.

The monthly transaction rate on the CST’s registry system rose by 75% y-o-y last year, according to the report, with the monthly rate for inquiries on domain registration growing 87% y-o-y. The domains are supported by 150 distributed servers globally, including eight local servers across Riyadh, Jeddah and Dammam.

Amazon.sa and Google.com.sa were among the most visited domains at home, according to the report. Government websites such as the Interior Ministry’s Absher, the Kingdom’s official digital identity application Nafath, education platform Madrasti among others. AlRajhi Bank’s website, e-commerce platform Salla and buy and sell platform Haraj were also among the most visited domains.

How the CST transformed domain registrations: The report looked at the CST’s work to remodel domain registration in Saudi to the registry-registrar model, which follows international practices in the industry. Domain registrations are now made through licensed registrars by the CST instead of direct registration through the governmental communications authority’s platform in a bid to boost the private sector’s role in the sector, according to the report. Registrants were given a transition period that allowed them to transfer the management of their domains to licensed registrars, without disrupting any of their services, it added.

SOUND SMART- What’s a registry-registrar model? In this model, accredited registrars manage the main database of domain names registered in the top-level domains (TLD) and other add-on services including hosting, email, and others. They then provide them to registrants who can manage everything related to domains through a one-step platform. Some of registrars accredited by the CST include dnet, Hawsabah, Sahara Net, NourNet solutions by stc, and T2.sa.

Ma’aden’s net income more than doubles in 1Q 2024 due to higher sales

MA’ADEN-

Mining giant Ma’aden’s net income more than doubled y-o-y to SAR 981.7 mn in 1Q 2024 mainly on the back of higher sales and lower costs of raw materials, it said in its earnings release (pdf). Revenues were down 8.7% y-o-y during the quarter to SAR 7.4 bn due to lower commodity prices except for gold and alumina.

It was a busy quarter for Ma’aden: Some of Ma’aden’s key highlights during the quarter were the start of full operations at the Kingdom’s largest gold mine, Mansourah Massarah, with an annual production capacity of 250k ounces of gold. The company also focused on drilling for new gold finds in Uruq south of its gold mine. It also unveiled with California-based solar startup GlassPoint building the world’s largest industrial solar thermal project in Ras Al Kheir to decarbonize the company’s aluminum supply chain. The first phase of the project could supply nine tons of steam per hour.

And since then: Manara Minerals — a JV between Ma’aden and the PIF — completed earlier this month the acquisition of a 10% stake in Brazilian miner Vale Base Metals. Manara is 51% owned by Ma’aden, and 49% owned by PIF. The transaction is worth an estimated USD 2.6 bn, based on a USD 26 bn enterprise value the Brazilian mining giant had previously disclosed. Ma’aden also completed a SAR 5.6 bn transaction earlier in May which saw it up its stake in Ma’aden Wa’ad Al Shamal Phosphate — its JV with the Mosaic Company and Sabic — to 85% after it purchased Mosaic’s entire 25% stake.

ADES HOLDING-

Ades Holding’s net income rose 124.6% to SAR 200.8 mn in 1Q 2024, and its revenues rose 60.5% y-o-y to SAR 1.5 bn, according to its earnings release (pdf). “New awards were broadly secured at higher daily rates compared to Ades’ current offshore average daily rates, translating into a favorable impact on overall profitability,” CEO Mohamed Farouk said. The Egypt-born company had a total backlog of SAR 26.8 bn as of 31 March 2024.

Business is concentrated in the Saudi segment: The oil and gas giant attributed growth in its top line to booking more business in the Kingdom, fueled by the deployment of 19 rigs as part of a large tender.

New business abroad: Growth was also supported by a 3x increase in operational rigs in Kuwait to a total of 10, along with a new rig going live in India, and another in Algeria. The quarter also marked the company’s entry into its ninth market of operation — Thailand — with an 18-month contract.

Rig suspensions are well cushioned: “We were largely successful in mitigating the impact of the temporary suspensions in Saudi Arabia,” Farouk added, saying that suspended contracts will be extended to compensate for the suspension period.

Partially offsetting the suspensions: The Tadawul-listed company’s total number of operating rigs rose 47% y-o-y to 75 in 1Q 2024, on the back of new deployments in Egypt, Qatar, and Thailand, reducing the number of total suspended rigs to only two, down from five.

ABDULLAH AL OTHAIM MARKETS-

Grocery chain owner Abdullah Al Othaim’s net income declined 3% y-o-y to SAR 116.4 mn in 1Q 2024 on the back of higher costs from new store openings and the drop on performance of subsidiaries among other factors, it said in a disclosure to Tadawul yesterday. Meanwhile, revenues grew 9% y-o-y over the same period to SAR 3 bn due to higher sales from existing and new stories. The board approved disbursing SAR 135 mn in dividends for the period at SAR 0.15 per share, according to a separate disclosure. Payment is due on Wednesday, 12 June.

Playing the long game with Saudi’s Pro League

It’s a relatively quiet morning for Saudi in the foreign press, with no single story leading the conversation. AFP has commentary on Saudi’s “USD bn football league,” saying that investments in the Saudi Pro League will take some time to bear fruit and reach its goal of “becoming one of the world's top five domestic competitions.”

MEANWHILE- Saudi also got a mention as a benchmark for a newly proposed US mega-city, with the Express likening the USD 400 bn project — to be built in the middle of the desert — to Neom’s The Line.

Sipchem inks refinancing agreement with BSF, AlRajhi. Plus: trade, pharmaceuticals and infrastructure

DEBT-

Sipchem affiliate renews syndicated bank facility with BSF, AlRajhi: Sahara and Ma’aden Petrochemicals Co (Samapco) — an affiliate of chemicals producer Sahara International Petrochemical Company (Sipchem) — signed a refinancing agreement for an existing syndicated bank facility amounting to SAR 1.5 bn with Banque Saudi Fransi (BSF) and AlRajhi Bank, Sipchem said in a disclosure to Tadawul yesterday. This brings the total financing amount provided by the two banks after a disbursed SAR 724.6 mn to SAR 2.3 bn.

The agreements also include a revolving Islamic murabaha facility totaling SAR 200 mn with each bank, according to the disclosure. Sipchem said the new banking facilities would help lower finance costs due to their “more favorable commercial terms and competitive pricing.”

TRADE-

Boosting non-oil exports: Saudi Export-Import Bank (Saudi Exim Bank) signed an ins. agreement and a murabaha agreement with the Saudi National Bank to fund the export of non-oil products, state news agency SPA reported. The agreements are designed to promote growth of Saudi’s non-oil exports by improving documentary credits and providing ins. and financing solutions.

REMEMBER- Saudi Exim signed last month a number of reins. treaties with global reins. firms led by the world's second biggest reins. company Swiss Re. The agreements aim to expand ins. coverage to help drive growth of local exporters in overseas markets.

PHARMA-

Jamjoom Pharma expects production to rise in the coming quarters as its new sterile factory in Jeddah starts commercial operations and its facility in Egypt sees increased output, Argaam quotes CEO Tarek Hosni as saying. The Tadawul-listed pharma producer increased its presence in key markets in the GCC and the region during the first quarter of the year, including Saudi, Egypt and Iraq, Hosni said.

Background: Jamjoom Pharma’s net income grew 22% y-o-y to SAR 103 mn in 1Q 2024 onthe back of sales growth despite the impact of the EGP devaluation. Its revenues were up 28.1% over the same period to SAR 385.5 mn in the same period on the back of higher sales volume across its key markets and the launch of new brands. Revenues from its KSA business rose 24.9% y-o-y.

INFRASTRUCTURE-

National Water Company kicks off SAR 500 mn water projects in Madinah: The National Water Company (NWC) began implementing nine drinking water and sewage network projects in Madinah at an estimated cost of SAR 500 mn, state news agency SPA reported yesterday. The announcement comes days after the NWC started work on 12 water projects worth SAR 1.5 bn in the Eastern Province. The NWC is wholly owned by the PIF.

AVIATION-

Indian budget carrier Akasa Air has added Saudi as its second international destination on its network, it said in a post on X. The airline said it will launch two direct routes from Mumbai and Ahmedabad to Jeddah starting July. Akasa Air will fly to Jeddah from Mumbai starting Monday, 15 July while flights from Ahmedabad will start on Sunday, 20 July. The airline added Doha as its first international destination earlier this year.

FINTECH-

Riyadh Capital has set up a new fund to support the local fintech sector, it said on LinkedIn. The 1957 Ventures fund will be backed by Riyad Bank, with the purpose of spurring new fintech business models, directly supporting the sector and promoting competition, the statement read without providing further information.

Memelord Roaring Kitty is back — and GameStop shorts are feeling the pinch

It’s a mixed morning on Planet Finance, where the big story of the day has analysts and investors alike wondering what’s next with AI as Google, OpenAI, Microsoft, and Apple all jockey for position. (See this morning’s Big Story Abroad, above.) Meanwhile:

It’s not Groundhog Day, and you’ve not stumbled into a real-world Hot Tub Time Machine: GameStop really is back in the headlines. Short-selling hedge funds lost USD 1 bn yesterday after Roaring Kitty re-entered the chat: The meme lord posted on X yesterday for the first time since 2021, triggering a frenzy that saw GameStop shares soar 74% and put the squeeze on the shorts. Kitty’s memes have flown fast and furious in the hours since.

Does it have legs? Bloomberg’s amazing Money Stuff columnist Matt Levine is back on the trail and even the WSJ is taking note.

BACKGROUND, for those of you who may have forgotten (or were otherwise blissfully unaware of what a “meme stock” is), courtesy CNBC: The 2021 “meme stock frenzy involved individual investors taking aim at short sellers and hedge funds who were pessimistic about the outlook for GameStop and other companies, forcing them to cover their short positions and drive up the price of the target stocks.”

ALSO worth knowing about: Melinda French Gates is hitting the eject button. She’s resigning as the co-chair of the Gates Foundation and will take with her some USD 12.5 bn to continue doing philanthropy. (Financial Times)

MARKETS THIS MORNING-

Asian markets are mixed with no real catalyst appearing to drive early trading and both European and US stock futures are little changed as we prepare to hit “send” on this morning’s issue.

TASI	12,260	+0.4% (YTD: +2.4%)
MSCI Tadawul 30	1,536	+0.4% (YTD: -1%)
NomuC	26,859	-1.2% (YTD: +9.5%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	25,381	+0.9% (YTD: +2%)
ADX	9,093	0.0% (YTD: -5.1%)
DFM	4,173	0.0% (YTD: +2.8%)
S&P 500	5,2215,221	0.0% (YTD: +9.5%)
FTSE 100	8,415	-0.2% (YTD: +8.8%)
Euro Stoxx 50	5,079	-0.1% (YTD: +12.3%)
Brent crude	USD 83.44	+0.8%
Natural gas (Nymex)	USD 2.37	+5.0%
Gold	USD 2,343	-1.4%
BTC	USD 63,046	+2.9% (YTD: +49.3%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.4% yesterday on turnover of SAR 7 bn. The index is up 2.4% YTD.

In the green: Acig (+9.9%), Al Jouf (+7.8%) and Acwa Power (+5.7%).

In the red: Medgulf (-10%), Gulf General (-10%) and Walaa (-10%)

THE CLOSING BELL: NOMU-

The NomuC fell 1.2% yesterday on turnover of SAR 28.3 mn. The index is up 9.5% YTD.

In the green: Qomel (+16.8%), Pro Medex (+9.2%) and Food Gate (+7.9%).

In the red:Osool and Bakheet (-9%), Future Care (-8.1%) and AZM (-6.9%).

CORPORATE ACTIONS-

#1- Our friends at First Mills have completed a share buyback of 300k shares worth SAR 25.4 mn earmarked for its employee shares program, according to a disclosure to Tadawul. The move comes as the milling company looks “to attract and retain key talents and to motivate them to further strengthen their performance to achieve its strategic objectives.”

#2- The Capital Market Authority has cleared Dammam-based Bena Steel to increase its capital by 20% to SAR 60 mn through a bonus issuance, it said in a statement yesterday. The capital increase will see the transfer of 1 mn shares from the company’s retained earnings to the company’s capital. This will bring the steel maker’s total shares up to 6 mn.

#3- The board of Jarir Marketing (Jarir Bookstore) approved disbursing SAR 228 mn in dividends at SAR 0.19 apiece for 1Q 2024, the leading bookstore chain said in a disclosure to Tadawul yesterday. Eligible shareholders can cash out on Wednesday, 29 May.

Foreign Minister Prince Faisal bin Farhan lands in Bahrain ahead of Arab Summit

Foreign Minister Prince Faisal bin Farhan arrived in Bahrain to take part at a preparatory foreign ministers meeting today ahead of the Arab Summit in Manama on Thursday, state news agency SPA. Bin Farhan is set to meet a number of his regional counterparts on the sidelines of the meeting. The crisis in Gaza is expected to take center stage during the meetings in Bahrain.

Finance Minister Mohamed Al Jadaan landed in Bahrain first, where he led Saudi’s delegation in preparatory meetings, according to a Finance Ministry statement. He highlighted the previous Arab Summit hosted by Jeddah last year saw leaders agreeing on completing requirements for the Greater Arab Free Trade Area (Gafta) and the adoption of an Arab tourism strategy.

The Liv Golf-PGA merger is in the rough — and we have lots of foodball news this morning

We have plenty of news from the world of sports this morning:

#1- Another sign that the PGA Tour unlikely to go through with its Liv Golf merger: The PGA board member most in favor of the transaction is quitting. Investment banker Jimmy Dunne “is resigning from his post, saying he has been shut out from stalled talks. “No meaningful progress has been made toward a transaction with the PIF,” he said in a letter to the board seen by the Wall Street Journal.

RACING-

#2- Saudi driver Yazeed Al Rajhi and German co-driver Timo Gottschalk took the TabukToyota Rally in a second consecutive victory on Saturday, state news agency SPA reported, with a 16:37 margin of victory. “It was good for us,” Al Rajhi said, according to Arab News. “It was not easy, very tricky actually. We have good stages in Saudi now. Before it was flat, flat and now it is more technical with good navigation and you need to focus all the time. Now we look ahead to Baja Greece.”

Other notable performances include Saudi female driver Dania Akeel and co-driver Stephane Duple who finished second overall.

BOXING

#3- The buildup for the Ring of Fire boxing showdown between heavyweight champion Tyson Fury and Oleksandr Usyk has begun with the arrival of Anthony Joshua, former two-time former world heavyweight champion, in Saudi to spectate the Riyadh Season event, organizers said in a post on X. The fight is set to take place on Saturday, 18 May in the Kingdom Arena. You can book your tickets here.

FOOTBALL

#4- PIF boss Yasir Al Rumayyan was spotted on Tyneside earlier this week amid talks of transfers by Newcastle, majority owned by the PIF, Newcastle World writes. There’s also talk of a stadium expansion that could draw in Al Rumayyan, who was spotted with other fund executives in the stands during the team’s 1-1 draw with Brighton. Newcastle’s European quest will be decided later this month if it secures sixth spot and Manchester City wins the FA Cup final.

#5- Speaking of football: A number of the Saudi Pro League clubs are looking to sign Manchester United’s Brazilian duo Casemiro and Bruno Fernanes in the upcoming summer transfer window, The Telegraph reported yesterday. Casemiro is reportedly on Cristiano Ronaldo’s Al Nassr’s radar. There is also interest from local clubs for Liverpool goalkeeper Alisson and Manchester City’s goalkeeper Ederson.

We’ve been expecting more player transfers: More players are inbound, joining the likes of Karim Benzema, Cristiano Ronaldo and Neymar, officials said in March. It remains unclear if the transfers would be of the same caliber as their predecessors, but Liverpool star Mo Salah is among those names that could be coming to Saudi.

CALENDAR

MAY

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

13-15 May (Monday-Wednesday): Poultry Expo Riyadh.

14-15 May (Tuesday-Wednesday): Saudi Great Futures, Riyadh.

15-16 May (Wednesday-Thursday): Arab Forum of Anti-Corruption, Riyadh.

16-18 May (Thursday-Saturday): Red Sea Fashion Week, The St. Regis Red Sea Resort.

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

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

20-22 May (Monday-Wednesday): Future Aviation Forum, Riyadh.

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

21-23 May (Tuesday-Thursday): WAGA 2024, Riyadh.

25 May (Saturday): Bidding deadline for Duba’s seawater reverse osmosis desalination plant in Tabuk.

27-28 May (Monday-Tuesday): Smart Data & AI Summit Saudi, JW Marriott Hotel, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

2-3 June (Sunday-Monday): Global Project Management Forum, Riyadh.

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

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

5 June (Wednesday): World Environment Day.

5 June (Wednesday): The Optimism Forum, Cairo, Egypt.

5 June (Wednesday): Digital Transformation Summit, Riyadh.

14-22 June (Friday-Saturday): Banks and capital markets closed for Eid Al Adha holiday.

AUGUST

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

SEPTEMBER

10-12 September (Tuesday-Thursday): Global AI Summit, Riyadh.

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

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

18-19 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam.

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

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

OCTOBER

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh.

NOVEMBER

2-9 November (Saturday- Saturday): WTA Finals, Riyadh.

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

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

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Dammam.

25-27 November (Monday-Wednesday): World Investment Conference, Riyadh.

26-28 November (Tuesday-Thursday): Saudi Electricity Expo, 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 2024

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

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