Another IPO on the runway — and get ready for an aviation-heavy week

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Get ready for an aviation-heavy week with two big global conferences in town

Good morning, wonderful people, and welcome to what we expect will be an aviation-heavy week as some 5k aviation executives from aviation majors including Boeing, Airbus, China’s Comac, and Embraer gather tomorrow and the day after for two major overlapping aviation events in the capital.

The Future Aviation Forum opens tomorrow, while the International Civil AviationOrganization’s Facilitation 2024 Global Summit kicks off on Tuesday.

The government has plans to set up six new airports as well as nine additional terminals at existing airports to help it deliver an ambitious aviation strategy to boost the Kingdom’s air connectivity, General Authority of Civil Aviation (Gaca) President Abdulaziz Al Duailej told Al Arabiya (watch, runtime: 5:00). The Gaca chief said the private sector will have a key role in implementing the aviation strategy, which will see the sector opening up to privatization. He said the strategy aims to bring the sector’s contribution to GDP to over SAR 8 bn by 2030.

The targets: Gaca aims to increase passenger numbers from 100 mn pre-pandemic to 330 mn and expand air connectivity from about 100 to more than 250 destinations by the end of the decade. It also aims to double air freight capacity and the design capacity for cargo warehouses to reach 4.5 mn tons of cargo.

In context: The Tourism Ministry recently doubled its target for 2030, aiming now to host 150 mn tourist trips after it hit its target last year ahead of schedule. The new 2030 target envisages 80 mn trips by domestic travelers and 70 mn by international travelers.

BY THE NUMBERS- The civil aviation sector has contributed USD 53 bn to the Kingdom’s GDP, state news agency SPA reported, citing a report by Gaca. Some USD 20.8 bn came from aviation related activities, while USD 32.2 bn came from tourism. The sector saw 241k jobs, while 717k jobs were offered in the tourism sector. Gaca will launch its inaugural State of Aviation Report during the Future Aviation Forum.

By the numbers: The Kingdom’s international seat capacity grew by 123% compared to pre-pandemic levels, surpassing the global recovery rate of 90% and the regional rate of 95%, according to the report. Passenger volumes grew 26% y-o-y to 112 mn passengers last year.

MEANWHILE- There’s no word on Crown Prince and Prime Minister Mohamed bin Salman’s meeting with White House national security advisor Jake Sullivan. Sullivan was due in Saudi yesterday to meet with the Crown Prince on “bilateral and regional matters, including the war in Gaza and ongoing efforts to achieve a lasting peace and security in the region,” a White House statement said. Sullivan heads today to Israel.

HAPPENING TODAY-

#1- A delegation of 30 Hong Kong officials headed by the HK Secretary of Justice Paul Lam arrived in Riyadh yesterday, according to a HK statement. This comes on the heels of Tadawul’s Hong Kong edition of its Capital Market Forum which wrapped up last week. The five-day trip will see the delegation also touch base in Abu-Dhabi and Dubai later this week.

Laying the groundwork to ramp-up investment in both directions: The delegation is expected to meet with executives from the “local legal and business sectors to have a better understanding of their need for cross-jurisdictional legal services. They will also call on relevant government officials to discuss and exchange views on various areas of legal co-operation,” the statement reads.

The guestlist includes officials from the Law Society of Hong Kong, the Hong Kong Bar Association, the Hong Kong Stock Exchanges and Clearing (HKEX), and the Department of FDI (better known as Invest HK).

REMEMBER- Hong Kong officials are looking to set up a trade and economy office in Saudi, while Hong Kong’s flagship carrier Cathay Pacific is looking to relaunch direct flights to Riyadh in 4Q 2024. Meanwhile, Neom has been active in the past weeks to drum up investment interest, with a recent trip to China to lure interest from Hong Kong, Beijing, and Shanghai.

#2- Riyadh hosts today the Saudi Energy Convention. The convention, which runs through Tuesday, will see energy and utilities industry leaders talk about decarbonization and energy. It will also host the Saudi Utilities Convention and Saudi Hydrogen Convention to address the role and challenges of rolling out hydrogen, water and utility projects that are in line with the global energy transition. Over 10k energy professionals and 200 industry speakers should be present at the event.

#3- Environment Minister Abdulrahman Alfadley is leading Saudi’s delegation to the World Water Forum in Bali which opened yesterday, state news agency SPA reported. The Saudi delegation will host a panel discussion on Riyadh’s preparations to host the event in 2027. This year’s edition of the largest international gathering in the water industry in Indonesia wraps up on Saturday, 25 May.

#4- It’s finance week for small businesses: Monsha’at, the small and medium enterprises regulator, will hold a series of events in Riyadh, Madinah, Jeddah, and Al-Khobar, state news agency SPA reports. The events aim to raise awareness about financing options available to small businesses and to discuss challenges faced by the sector. You can sign up here.

#5- The subscription period for the fourth round of retail saving sukuk program starts today, the National Debt Management Center (NDMC) said in a post on X. The instruments carry a fixed yield of 5.64%. The minimum subscription amount for the May issuance was set at SAR 1k, while the maximum is SAR 200k per investor for the total duration of the program. Get your orders in before Tuesday afternoon.

BACKGROUND- The Finance Ministry and the NDMC launched the shariah-compliant retail saving instrument in a bid to diversify the nation’s savings offerings. The program features monthly issuances by the NDMC that carry annual fixed yields varying in value from month to month depending on market conditions. Every issuance matures in 12 months and has no subscription fee.

WEATHER- Thunderstorms almost everywhere: The national weather service is advising folks to exercise caution, with thunderstorms expected in most regions today through Wednesday. Some of the affected areas include Makkah, Jazan, Aseer and Al Baha. Makkah will experience thunderstorms with a high of 44°C and a low of 30°C, while Jazan will see a similar forecast with a high of 37°C and a low of 32°C. Thunderstorms are also in the cards for Al Baha which will see a high of 27°C and a low of 20°C.

WATCH THIS SPACE-

#1- Mawani could ban imports from 20 carmakers based on a request by the Saudi Standards, Metrology, and Quality Organization citing the exporters failure to submit their 2024 supply plans on time, Argaam reports citing a Mawani circular. The report did not specify which carmakers could face a ban.

#2- You can now verify the authenticity of real estate advertisements through a new online service recently launched by the Real Estate General Authority (Rega), according to a Rega statement. The service aims to help market participants in identifying fraudulent advertisements, boost the sector’s credibility, and improve the customer experience. We couldn’t find the website link through which the service is accessible but here’s the link for the Fal service which provides applicants with licenses to operate the real estate brokerage industry.

#3- Cabinet has approved the new executive regulations for the Public Health Authority, according to the official gazette Umm Al Qura. The regulations are yet to be put on the government’s public survey platform, Istitla.

#4- Mekyal Financial Technologies has gotten the okay to experiment with offering and investing in debt instruments as part of a fintech license, according to a Capital Market Authority statement.

#5- Women can now specialize in maritime studies at the King Abdulaziz University in Jeddah, a research area that was once only open to their male counterparts, it said in a post on X.

PSAs-

Victims of financial scams on Mada debit cards can now report incidents online through the Interior Ministry’s e-platform, Absher, the General Directorate of Public Security said in a post on X.

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THE BIG STORY ABROAD-

It’s a fairly quiet morning in the global business news, with one story dominating the front pages.

TROUBLE IN THE ISRAELI CABINET? Benny Gantz, a central member of Israel’s three-man war cabinet, said he’ll resign his post unless Prime Minister Benjamin Netanyahu adopts a new war plan by 8 June. Netanyahu called Gantz’s ultimatum “washed-up words whose meaning is clear: the end of war and defeat for Israel, abandoning most of the hostages, leaving Hamas intact and the establishment of a Palestinian state.” (Bloomberg | Reuters | AP)

What would Gantz’s departure mean? Gantz leaving “would leave Netanyahu even more beholden to far-right allies who have taken a hard line on negotiations over a cease-fire and hostage release, and who believe Israel should occupy Gaza and rebuild Jewish settlements there,” CNBC writes.

MEANWHILE- Another Houthi attack in the Red Sea. A Panamanian-flagged oil tanker was hit by a Houthi anti-ship missile yesterday, US Centcom said in a statement yesterday.

From the Dept. of Flying Cars: Chinese EV manufacturer XPeng’s plans to deliver its flying car to customers in two years, the company’s co-president told CNBC. The flying car — dubbed the Land Aircraft Carrier —- will be available for people to pre-order this year.

AND IN AI NEWS- OpenAI has disbanded its long-term AI risk team less than a year after announcing it. The team was announced in July with the aim to “to steer and control AI systems much smarter than us.”

CIRCLE YOUR CALENDAR-

The Future Aviation Forum will get underway on Monday, 20 May and run until Wednesday, 22 May at the King Abdulaziz International Conference Center in Riyadh. The event, organized by the General Authority of Civil Aviation, will see the Kingdom showcasing some USD 100 bn worth of investment options in the aviation and logistics sector at large.

Riyadh will host the annual conference of the Airports Council International — also known as WAGA — from Tuesday, 21 May to Thursday, 23 May. The global gathering brings together leading senior executives from around the world to cover topics that shape the aviation industry. The event’s speakers include PIF-owned airline Riyadh Air CEO Rony Douglas, Saudi Air Connectivity Program Majid Khan, Riyadh Airports CEO Ayman Aboabah and others.

Demo day for the final round of the Sanabil 500 MENA seed accelerator will kick off on Wednesday, 29 May in Riyadh with seven finalists. Applications for the next batch are now open and will close on 6 August 2024.

Riyadh will host a Global AI Summit from 10-12 September, state news agency SPA reported yesterday. The event, which is organized by the Saudi Authority for Data and Artificial Intelligence, will focus on key AI topics and trends, delving into its local and global adoptions, ethics, and infrastructure.

Dammam will host the Saudi Maritime and Logistics Congress from Wednesday, 18 September to Thursday, 19 September. The two-day event looks to gather up to 10k attendees and 200 exhibitors, and will discuss topics including interlinked logistics, developments in supply chains, digitalisation, decarbonisation, the energy transition, and workforce development.

Talco plans to sell 30% stake on Tadawul in secondary share sale

Riyadh-based aluminum products maker Al Taiseer Group Talco Industrial (Talco) plans to take a 30% stake to Tadawul’s main market through a secondary share sale, it said in a prospectus (pdf). It is looking to sell 12 mn ordinary shares on the main market. The sale comes months after it lined up the Capital Market Authority’s approval in December.

The details: Institutional investors will be able to place orders for 100% of the offering’s shares, while the financial advisor has the right to allocate 10% of the offering to retail investors “if there is sufficient demand.” Each institutional investor can subscribe to up to 1.99 mn shares and a minimum of 50k shares, while each individual investor can subscribe to a maximum of 250k shares and a minimum of 10 shares.

About Talco: Founded in 1976, Talco makes and sells aluminum products, thermoset powder coating, and related accessories, according to the prospectus. Its products include powder coated aluminum, wood-finished aluminum, polyester powder, metallic powder, plastic bags and sheets and printing wrapping films.

The pitch: Talco is a leader in the industry, with a footprint in 26 countries across the GCC, MENA region and East Asia, Europe, US, and Australia. Several expansions throughout the years helped bring its aluminum production capacity to 60k MT as of June 2023. It currently operates two factories in Riyadh and one in Jeddah.

A snapshot of its financial performance: Talco’s net income grew 17.7% y-o-y to SAR 39.8 mn in 1H 2023 despite revenues falling 10.9% y-o-y to SAR 336.6 mn over the same period on lower aluminum prices. Still, aluminum products accounted for 87% of Talco’s total revenues in the first half of last year.

Post-IPO structure + lock-up period: Talco’s nine substantial shareholders are selling down their positions to a combined 65.09% stake from 92.99%. They will not be able to execute any transactions on their shares for a period of six months starting the first trading day.

Use of proceeds: Talco’s selling shareholders will take the transaction’s proceeds home after covering transaction related-expenses — estimated at SAR 16 mn. All the proceeds will be divided between the selling shareholders on a pro rata basis.

The IPO timeline: Bankers will take orders from institutional investors starting tomorrow until Thursday, 23 May, while the bookbuilding process for retail investors will run on Tuesday, 28 May to Wednesday, 29 May. A final allocation of shares is slated for Sunday, 2 June, with any excess subscription fees refunded on the same day. The first day of trading remains contingent on fulfilling regulatory requirements, according to the prospectus.

ADVISORS- Alinma Investment is quarterbacking the transaction as financial advisor, lead manager, bookrunner and underwriter, while Stat Law Firm is acting as legal advisor. PwC is Talco’s financial due diligence advisor. Front & Sullivan is serving as market consultant, while KPMG is acting as the company’s auditor. The receiving agents are Alinma Bank, Al Rajhi Bank, and Riyad Bank.

POULTRY PRODUCER ENTAJ INCHES CLOSER

Halal poultry producer Arasco Foods (Entaj) is seeking a listing on Tadawul’s main market after “reaching the final stages of submitting the IPO application,” Ziyad Alsheikh, CEO of parent company Arab Agricultural Services (Arasco), told Argaam. Alsheikh said Entaj has been working extensively on the IPO since last year, expecting the offering somewhere between the end of this year or early 2025 depending on regulatory approvals, he said.

About the company: Entaj says it is one of the fastest chicken producers in the Kingdom with a poultry processing capacity of 600k birds per day, according to its website. Its range of products include a variety of fresh, frozen, raw and pre-fried chicken options.

SAUDI IPO PIPELINE AT A GLANCE-

Among the transactions now in the market or expected soon:

Fakeeh Care Group has priced its IPO at the top range after strong demand from institutional investors as it looks to become the largest IPO so far this year;
Fintech startup Rasan is set to sell a 30% stake, with subscription period for institutional investors wrapping up over the weekend;
Water treatment outfit Miahona has priced its IPO at the top of the range after recording strong investor appetite;
Labor agency Saudi Manpower Company (Smasco) is selling a 30% stake; with a final share price to be announced today;
Nupco — a unit of the PIF — has reportedly tapped Rothschild & Co as financial advisor for its potential Tadawul IPO
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 operatorLulu 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.

Companies have so far raised nearly USD 700 mn through IPOs this year, with the largest current IPO being Modern Mills which listed in March.

Banking on an IPO boom: Saudi Stock Exchange CEO Mohammed Al Rumaih told Bloomberg earlier this month that he expects the IPO bonanza at home to continue with up to 50 companies seeking listings. “We have more than ten IPOs approved but waiting for book building and dealing with the asset managers to determine listing and offering dates,” Al Rumaih said.

Aramco signs three MoUs with US-based companies to advance lower carbon energy solutions

Aramco inked three MoUs with US companies to develop lower-carbon energy solutions on the sidelines of US Energy Secretary Jennifer Granholm visit to Saudi, according to a statement. The agreements come under Aramco’s efforts to achieve net zero emissions by 2050 and “build a lower-carbon new energy business.” The agreements signed include:

#1- An agreement with climate tech company Aeroseal to deploy its technology to expand Aramco’s fleet and commercialize the technology in novel applications like gas pipelines and localize Aeroseal’s supply chain at home.

#2- An agreement with direct air capture startup Spiritus to explore potential investments in direct air capture to help address challenges related to the implementation of the technology due to its high costs.

#3- An agreement with Bill Gates-funded startup Rondo Energy to explore using the startup’s heat batteries in Aramco’s facilities overseas to slash costs and lower emissions. Aramco and Rondo began engineering studies for the first industrial scale deployment of the batteries that could reduce emissions from Aramco’s plants “with subsequent scale up to 1 GWh.”

What they said: “Innovative technologies deployed at scale can help reduce the costs of reducing carbon emissions, and we are investing in developing these through our R&D, venture capital, and technology deployment programs. We see the technologies of Aeroseal, Spiritus’, and Rondo to have the potential to scale globally, and specifically in the Middle East,” Aramco’s Senior Vice President of Technology, Oversight & Coordination Ali Al Meshari said.

It was busy for Granholm: The US energy official signed an energy cooperation roadmap with Energy Minister Prince Abdulaziz bin Salman last week. The roadmap outlines a timeline for cooperation in “critical projects” in electricity and renewables, green hydrogen, energy efficiency and others.

Acwa Power secures operation permit for Shuaa Energy 3 solar project in Dubai

Renewables giant Acwa Power has received the commercial operation certificate to begin operating Phase C of the 900 MW Shuaa Energy 3 solar project in Dubai — a part of Mohammed bin Rashid Al Maktoum (MBR) solar park in the UAE, it said in a disclosure to Tadawul.

Ironing out the details: Commercial operations are set to be launched at the solar project’s Phase C, which will have a capacity of 300 MW, Acwa Power said. The complete plant, which has aninvestment ticket of USD 570 mn, has achieved commercial operation with a total capacity of 900 MW, it said. Acwa Power expects the financial impact of the commercial operations at Phase C to be reflected on its financials in Q3 this year. The MBR solar park, which is the world’s largest single-site solar park using the IPP model, will have a production capacity of 5 GW by 2030 and will help slash 6.5 mn tons of carbon emissions annually upon completion.

A look at ownership: Shuaa Energy 3 is a special purpose vehicle (SPV) set up to develop the fifth phase of the MBR solar park. Dubai state utility Dewa owns a 60% stake and is the sole off-taker of power, while Acwa Power holds a 24% stake. The Gulf Investment Corporation holds the remaining 16%.

Acwa continues to be busy this year: The Tadawul-listed utility signed earlier this month a SAR 18.2 bn (c. USD 4.9 bn) power purchase agreement to develop a new 5 GW wind farm in Uzbekistan — set to become the largest in Central Asia. It signed a water purchase agreement for Senegal’s first desalination project under a public-private partnership and a power purchase agreement for Uzbekistan’s Nukus2 200 MW wind farm and battery energy storage system. Acwa Power also received the commercial operation certificate to begin operating the third and final phase of its 1.5 GW Sudair solar project. It also received a similar certificate for its Al Taweelah desalination plant in Abu Dhabi. It also achieved financial close for the solar-powered Hassyan water desalination project in Dubai.

Lots of sports (including Fury vs Usyk) and a bit of normalization

It was a mixed bag for Saudi in the foreign press over the weekend, with coverage ranging from everything sports to normalization. The two-state solution remains a main talking point, while Cristiano Ronaldo is making headlines again for being the highest paid athlete in the world.

SPORTS #1- It is too early to speak on Saudi hosting the 2036 Olympic Summer Games, with the Kingdom’s Olympic Committee only focused now on good results in the upcoming Olympic games in Paris in July and August, the committee’s Executive Director of Marketing and Communication Abdulaziz Albaqous told Reuters. The Saudi delegation is focused on securing medals in Paris especially in the equestrian jumping competition as Saudi equestrian marks its return to the games for the first time since the London Olympics in 2012, Albaqous said. "Of course, the Kingdom always aspires to host any important international event but it is too early to talk about the Olympics," he said.

SPORTS #2- Al Nassr’s Ronaldo led Forbes list of the highest paid athletes in the world after raking in an estimated USD 260 mn in total earnings, Reuters reported. Golf world number five Jon Rahm came in second at USD 218 mn after joining Saudi-backed LIV Golf last year. The list also includes Al Hilal’s Neymar who came in seventh place at USD 108 mn.

SPORTS #3- Oleksandr Usyk “turned the fight on a dime with a brutal ninth-round assault” that stunned Tyson Fury, sending Fury to the canvas and giving Usyk the crown as the sport’s “first undisputed heavyweight champion since Lennox Lewis in 1999” here in Riyadh, CBS News reports.

Demands for a two-state solution are emerging as the “single biggest barrier” to normalization between Saudi and Israel, former CIA director David Petraeus told CNBC. “A solid path, a solid commitment to a two-state solution from Israel” is the biggest obstacles for the talks, he said. Officials have repeatedly reiterated that the only way to peace is a credible and irreversible path to establish an independent Palestinian state along the 1967 borders with East Jerusalem as its capital. Meanwhile, the New York Times is examining a resistance by Israel to join in the efforts.

Zain KSA plans to boost 5G network coverage under fresh SAR 1.6 bn investment plan. Plus: Startups, real estate and manufacturing

TELECOMS-

Zain KSA plans to expand its 5G network coverage to 122 cities across the Kingdom, up from 66 cities under a fresh SAR 1.6 bn investment plan, it said in a statement. “The plan will see more than 66% of the Kingdom’s populated area covered with 5G services and solutions, increasing the number of Zain KSA’s 5G network sites around the Kingdom to more than 7k.”

Where’s the money coming from? Zain KSA, last week, secured two financing facilities from Al Rajhi Bank with a combined SAR 1.6 bn to upgrade the telecom giant’s network infrastructure, and boost its working capital.

What they said: “We are pleased to announce this huge investment to expand our network as an extension of our approach to harnessing the best technical capabilities and resources to serve the community after launching the largest 5G network in the Middle East, Europe and Africa, and third largest globally,” Zain KSA CEO Sultan bin Abdulaziz Al-Deghaither said.

STARTUP WATCH-

Logistics startup MDD has closed an undisclosed Series A round from an unnamed individual investor, Entarabi reports citing a company statement. The investor received a 5% equity for their investment which puts the company’s total valuation at SAR 100 mn. The supply chain management and procurement company claims to “shorten all the long stages you go through to complete your facility's purchases in one digital process,” according to the website. The platform handles clients’ order initiation, financing, sourcing, and payment, the news outlet reports.

REAL ESTATE-

Al-Alameya Real Estate Development, a Saudi-Egyptian joint venture, plans to build 670 villas in Jeddah at an estimated cost of SAR 650 mn, Projects Director Essam Al-Mihi said to AlEqtisadiah on the sidelines of the Saudi Real Estate Development and Ownership Exhibition in Jeddah. The company also launched villa sales in the Al-Sadan project in Al Khomrah’s 195 sqm district earlier this month, with sales expected to be completed by 2027, he said.

ALSO- Al-Alameya is investing in three real estate projects valued at SAR 1 bn, including a SAR 180 mn project in Madinah and a SAR 200 mn project in Al-Khobar, with no details disclosed on the third project, he said.

MANUFACTURING-

ADX-listed Agthia Group is looking to launch a new AED 84 mn protein factory this quarter in Jeddah under its brand Nabil Food Industries, the company’s Snacking Business and Government Relations President, Mubarak Al Mansouri, told Mubasher. Total production capacity is expected to come at 3k tonnes, with the possibility of increasing to 8k tonnes after the second production line comes online. Agthia acquired a majority stake in Nabil Food Industries back in 2021.

DEVELOPMENT-

KSA + Maldives: The Saudi Fund for Development (SDF) has granted USD 150 mn in soft loans to the Maldives’ Finance Ministry to support travel and healthcare projects, according to a statement on social media platform X. This is in addition to a USD 80 mn for infrastructure and coast protection projects, the fund said in a separate post on X.

TECH-

Nomu-listed Edarat communication and IT inked a one-year contract with IT provider EjadaSystems valued at SAR 3.5 mn to set up cloud computing services for an unnamed state-owned company, it said in a disclosure to Tadawul.

DEBT WATCH-

Tadawul-listed Alkhorayef Water and Power Technologies has upped the value of a credit facility it had obtained earlier from Saudi Awwal Bank to SAR 749 mn, up from SAR 519 mn, according to a disclosure on Tadawul. The company didn’t disclose information about where the funds are going.

Chinese investment in north Africa, eastern Europe, central Asia more than double that of US and Germany combined

Chinese FDI accounted for almost 39% of the total greenfield investments in 2023 of the 36 countries in which the European Bank for Reconstruction and Development (EBRD) operates, jumping up from 5.1% in 2022, the EBRD said in its latest Regional Economic Prospects report (pdf).

“China is dwarfing FDI from Germany and the US,” the EBRD’s chief economist Beata Javorick told the Financial Times. The world’s factory put forward more than twice as much investment last year than the US and Germany combined, who each accounted for less than 8% of total investment in the nations the bank works in.

The sudden splurge in investment may be more about circumventing US trade barriers than anything else: “China has tried to diversify production locations in terms of potential trade barriers,” Javorick told the salmon-colored paper. The Biden administration continued ramped-up trade tariffs on Chinese goods inherited from the previous administration and this week imposed additional tariffs on a further USD 18 bn worth of Chinese imports.

While China is looking to invest abroad to avoid tariffs, Russia is looking to China to avoid sanctions: China and Russia affirmed a “new era” of relations between the states during Russian premier Putin’s two-day visit to the nation over the weekend that will see Russia becoming ever-more reliant on the Asian nation. Putin seems to have secured a commitment to a closer economic relationship as Russian businesses increasingly look to China as imports of key production inputs from Europe and much of the rest of the world are cut off by sanctions from Russia’s invasion of Ukraine.

MEANWHILE ON WALL STREET- The Dow Jones Industrial Average closed above 40k for the first time in its 139-year history on Friday, amid optimism that the Fed will cut rates soon. (Reuters)

TASI	12,198	+0.8% (YTD: +1.9%)
MSCI Tadawul 30	1,530	+1.2% (YTD: -1.3%)
NomuC	26,484	-0.7% (YTD: +8.0%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	26,143	+3.3% (YTD: +5.0%)
ADX	9,042	+0.00% (YTD: -5.6%)
DFM	4,068	-0.4% (YTD: +0.2%)
S&P 500	5,303	+0.1% (YTD: +11.2%)
FTSE 100	8,420	-0.2% (YTD: +8.9%)
Euro Stoxx 50	5,064	-0.2% (YTD: +12.0%)
Brent crude	USD 83.98	+0.9%
Natural gas (Nymex)	USD 2.63	+5.3%
Gold	USD 2,417.40	+1.3%
BTC	USD 66,906	+0.1% (YTD: +59.2%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.8% on Thursday on turnover of SAR 7.1 bn. The index is up 1.9% YTD.

In the green: Acig (+6.5%), Acwa Power (+6.2%) and MBC Group (+4.7%).

In the red: Bindawood (-10%), Al Babtain (-7.7%) and Al Baha (-7.1%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.7% on Thursday on turnover of SAR 36.6 mn. The index is up 8.0% YTD.

In the green: Ngdc (+8.8%), Tam Development (+4.5%) and Mobi Industry (+4.1%).

In the red: Qomel (-9%), Ghida AlSultan (-7.4%) and Academy of Learning (-6.7%)

Arab League Summit calls for deployment of UN peacekeepers to occupied Palestine

Arab League Summit calls for deployment of UN peacekeepers to occupied Palestine :Arab Leaders concluded discussions in Arab League Summit in Bahrain on Thursday with a declaration calling for the deployment of UN peacekeepers in the occupied territories and the “[convening of] an international conference under the auspices of the United Nations, to resolve the Palestinian issue on the basis of the two-state solution,” state news agency SPA reported. Aside from calling for an immediate ceasefire and an end to the forced displacement of the Gaza population, the declaration also addressed the situation in Libya, Sudan, Syria, and Yemen.

Crown Prince and Prime Minister Mohammed bin Salman met with Jordan’s King Abdullah II and Syrian President Bashar Al Assad on the sidelines of the summit in two separate meetings, SPA reported (here and here). He also held talks with Kuwait’s newly appointed Prime Minister Sheikh Ahmad Abdullah Al Sabah and UN Secretary General Antonio Guterres.

CALENDAR

MAY

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.

29 May (Wednesday): Sanabil 500 MENA seed accelerator demo day, Four Seasons Hotel, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

1 June (Saturday): OPEC+ meeting.

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.

11 December (Wednesday): FIFA Congress, which will decide the hosting countries for the FIFA World Cup 2030 and 2034

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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