Aramco taps international debt market

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Fresh Aramco bond issuance + The internal combustion engine is here to stay

Good morning, ladies and gentlemen, and happy almost-THURSDAY. It’s a mixed bag as far as the news cycle goes, with the big story of the day being Aramco’s return to international debt markets for the first time in three years.

HAPPENING TODAY-

The Global EV and Mobility Technology Forum gets underway this morning at Riyadh’s International Convention and Exhibition Center. The two-day event will bring together top government officials, bankers, and automaker executives, led by Faisal Sultan, managing director and vice president of PIF-backed EV maker Lucid. Discussions will focus on the key areas of building out a local automotive supply chain, boosting EV adoption in the Kingdom, the challenges facing E-mobility here at home, and the role of public-private sector partnerships in solving them.

WEATHER- Riyadh will see a daytime high of 45°C today and a nighttime low of 32°C. In Makkah, the mercury will peak at 44°C during the day and drops to 32°C. Meanwhile, Madinah is looking at a high 44°C and a low of 31°C.

PSAs-

#1- Businesses in the health and commercial sectors in Riyadh will now be governed by a new inspection and oversight program introduced by the Riyadh Municipality, Argaam reports. The Muthol municipal compliance program is designed to improve compliance and oversight on businesses while easing their financial burdens by shifting away from relying primarily on fines for regulatory non-compliance. The program instead focuses on providing incentives for compliance, according to Asharq Al Awsat.

#2- Industrial and mining companies in the Kingdom will have easier access to research centers and labs through a new program from the Industry and Mineral Resources Ministry and the Research, Development, and Innovation Authority, the two bodies said on X (here and here). The program includes 30 scientific research centers in universities, medical institutions, and laboratories. It targets investors and entrepreneurs in the industrial and mining sectors. Companies can register here.

WATCH THIS SPACE-

The Saudi Islamic banking market’s operating environment is expected to be “favorable” over 2H 2024 and 2025, but could be held back by persisting issues including “low standardization, still-developing Islamic-finance regulations, and fragmented disclosures,” Fitch Ratings said in a non-action commentary. Sama has been taking strides to alleviate some of these, issuing additional capital adequacy requirements and releasing a risk-management framework for sharia-compliant banking, the ratings agency said.

DATA POINT-

Saudi is now ranked 36 globally in the Arab Investment and Export Credit Guarantee Corporation (Dhaman)’s investment climate index, slipping two spots from last year’s index, Mubasher reports, citing Dhaman’s report. The Kingdom is the third-highest ranking Arab country in the index.

In terms of the regulatory environment, the Kingdom jumped 13 spots to rank 71 in the index. Meanwhile, it fell one rank to 55 in terms of production, and climbed two ranks in the political climate and safety category.

The wider view: Inter-Arab investment grew 37% in value to USD 66.3 bn in 2023 across a total of 305 projects (up 20% y-o-y), Mubasher said, citing the report. Saudi Arabia was the top investment destination in the region with 110 projects, representing over 36% of the total while Mauritania came in first place in terms of investment costs, with a value of USD 34 bn and a share of 53%.

OIL WATCH-

The Kingdom is set to regain its global oil market share as it ramps up China-bound crude deliveries next month following a steep drop in June, Reuters reported, citing trade sources. Traders expect Saudi’s crude oil supply to China to rise to at least 44 mn barrels in August, up from 36 mn barrels in July. The move would end a four-month scale back on oil exports to China, with news of the additional shipments coming days after Aramco slashed prices for crude grades it sells to Asia for a second month.

Background: The Kingdom’s overseas crude shipments hit a 10-month low in June at 168 mn barrels — about 5.6 mn barrels a day — as summertime demand for energy peaks. Shipments of Saudi crude to China hit its lowest since March 2020 with 1.12 mn barrels a day, according to data from analytics firm Kpler.

ALSO- Saudi was the US’ third-largest oil exporter in May 2024, shipping 11.7 mn barrels worth USD 1 bn, Mubasher reported, citing US government data. The exports are up 6.9% y-o-y from 10.9 mn barrels in the corresponding month last year. The top crude oil exporting nations to the US during May were led by Canada followed by Mexico.

MORNING MUST READ-

Is the internal combustion engine (ICE) here to stay? That’s what Aramco and other car market leaders think. The oil giant, China’s Geely, and France’s Renault — all of whom are shareholders in powertrain producer Horse Powertrain — believe that ICE engines will remain vital well beyond 2050 due to cost and other factors, predicting automakers will eventually pass the manufacturing torch to third-party suppliers, the Financial Times reports. “It will be incredibly expensive for the world to completely stamp out, or do without internal combustion engines,” Aramco Executive VP Yasser Mufti told the salmon-colored paper. Horse CEO Matias Giannini expects that by 2040, up to 60% of vehicles will still use some form of ICE, whether pure, hybrid, or plug-in hybrid.

IN CONTEXT- Oil giant Aramco signed agreements to acquire a 10% stake in Horse Powertrain, a joint venture between Renault and Geely, valuing Horse at EUR 7.4 bn. Renault and Geely each hold a 45% stake. Initially, Aramco sought a 20% stake under a preliminary agreement with Renault and Geely last year.

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THE BIG STORY ABROAD-

The Nato summit kicked off in Washington yesterday against the backdrop of Joe Biden’s teetering reelection campaign and developments in the Russia-Ukraine war — landing on most front pages with news of another support package for Ukraine, this time in the form of an air defense system. (Washington Post | Reuters | FT)

Biden’s speech at the summit stood in stark contrast with his performance at the presidential debate, with Reuters noting his “strong and confident voice” as he read off a teleprompter and looked to avoid signs of weakness.

Still, his future candidacy remains in limbo, with another key democrat — Mikie Sherrill — joining the growing call among Democratic lawmakers for him to drop out, while some others have pledged support, the Financial Times said.

ALSO HAPPENING YESTERDAY- US Federal Reserve Chair Jerome Powell kicked off his testimony before the Senate Banking Committee with a tee-up for an interest rate cut that could take place as soon as September, Reuters reports.

“Leaving monetary policy too tight for too long could unduly weaken economic activity and employment,” Powell said, adding that the US economy is no longer overheated, as inflation and the labor market both continue to cool.

OVER IN EUROPE- It’s a bad week for France on all fronts, as it faces a political stalemate and is kicked out of the Euros by a defiant Spain — led by 16-year-old wunderkind Lamine Yamal — in yesterday’s semi-final.

PLUS- Europe just launched its first rocket in almost 30 years, virtually “power[ing] Europe back into space,” European Space Agency Josef Aschbacher head said, after years of dominance from Elon Musk’s SpaceX. (FT | CNBC)

CIRCLE YOUR CALENDAR-

The eight-week Esports World Cup runs until Sunday, 25 August Riyadh’s Boulevard City. It will see the world’s best esports clubs competing for a pool of USD 60 mn — the largest purse in esports.

The 16 teams who passed the group stage of the ESports World Cup’s Riyadh Masters will face off from today through to next Sunday, 14 July. Only four will make it to the playoffs upper bracket and two will make it to the lower bracket.

Aramco is set to release its 1H 2024 results on Tuesday, 6 August, according to its website. You can tune into the earnings audio webcast here. Aramco posted a 14.4% y-o-y net income decrease in 1Q 2024 to SAR102.3 bn (USD 27.3 bn), and its revenues dipped 3.7% y-o-y to SAR 402.0 bn (USD 107.2 bn).

This year’s edition of security-focused expo Intersec Saudi Arabia will run from Tuesday, 1 October to Thursday, 3 October at the Riyadh International Convention and Exhibition Center.

Aramco takes first bond sale in three years to market

Saudi Aramco is selling fresh USD-denominated bonds, kicking off the issuance to qualified investors yesterday, according to two statements to Tadawul (here and here). The notes will be issued under Aramco’s Global Medium Term Note Program, according to the disclosures. This is the company’s first bond sale in three years.

The oil giant could raise at least USD 3 bn from the three-tranche issuance, Bloomberg reports, citing sources it says have knowledge of the matter. The senior unsecured notes include a 10-year tranche, a 30-year tranche, and a 40-year tranche, the business information service says. The exact value, pricing, and maturity will be determined based on market conditions, Aramco said in its disclosures. The minimum subscription is USD 200k, with additional investments in increments of USD 1k.

Where the money is going: Aramco will earmark the proceeds of the bonds for “general corporate purposes” and could include additional purposes in the final terms of the issuance, according to the disclosures. The proceeds could be used “to refinance existing borrowings and contribute to its investment program,” Bloomberg’s sources said.

What the pundits are saying: The timing of the issuance “suggests Aramco is taking advantage of the last window ahead of the summer illiquidity,” Amwal Capital Partners co-head of fixed income tells Reuters. Tapping the debt markets is also likely a sign that Aramco is looking at more acquisitions, EFG Hermes analyst Youssef Husseini told the newswire.

Saudi’s debt spree: Saudi Arabia has sold over USD 33 bn worth of debt this year — topping China as the biggest issuer of international debt among emerging markets — to close its SAR 81 bn budget deficit from project spending. Recent debt sales include USD 5 bn worth of FCY-denominated sukuk with three-, six-, and 10-year tranches in May, and a USD 12 bn USD-denominated sovereign bond sale back in January.

The big picture: Fitch expects the Gulf debt capital market to improve with increased issuances through 2024 and 2025 to approach USD 1 tn, with 40% in sukuk, according to its 1Q 2024 GCC Debt Capital Market Dashboard. The drivers of the expanding debt capital market are expected lower oil prices and interest rates combined with an uptick in developmental initiatives.

ADVISORS- Citi, Goldman Sachs International, HSBC, JP Morgan, Morgan Stanley, and SNB Capital are active joint bookrunners, while the passive joint bookrunners for the issuance are Abu Dhabi Commercial Bank, Anb capital, Bank of China, BofA Securities, BSF Capital, Emirates NBD Capital Limited, First Abu Dhabi Bank, GIB Capital, Mizuho, MUFG, NATIXIS, Riyad Capital, SMBC Nikko and Standard Chartered Bank.

IN OTHER DEBT NEWS-

Saudi National Bank raises USD 500 mn in Taiwanese Formosa bond sale: Tadawul-listed lender Saudi National Bank (SNB) issued five-year senior unsecured floating-rate note bonds on Taiwan’s Taipei Exchange, as part of its USD 5 bn EUR Medium Term Note Program, Arab News reports, citing a press release. The bank raised USD 500 mn from the sale. The move makes SNB the first Saudi bank to venture into Taiwan’s Formosa market.

SOUND SMART- The yield on this bond isn’t fixed. It is determined by the current overnight financing rate plus a fixed spread of 120 basis points.

Strong investor appetite: The sale was initially expected to raise some USD 300 mn, but strong investor demand raised the proceeds to a total of USD 500 mn.

Saudi investors commit USD 100 mn to Gulf Islamic Investments

Al Nahdi Medical gives Gulf Islamic Investment a boost: Saudi investors committed USD 100 mn to Dubai-based Shariah-compliant investment firm Gulf Islamic Investments (GII) as it looks to expand its operations across the Mena region and India, Bloomberg reports, citing an unnamed GII spokesperson. The funding was led by Saudi Arabia’s Al Nahdi Family Office through its flagship pharma group Al Nahdi Medical, who, along with other unnamed investors, will inject growth capital into the firm.

GII has a longstanding relationship with the Kingdom: GII expanded its Saudi presence with a SAR 1 bn (USD 300 mn) logistics firm established in May, as well as acquisitions of an undisclosed licensed investment and asset management firm earlier this year, a SAR 600 mn (USD 160 mn) stake in Abdeel Medical Company, and a majority share of Al Meswak Dental Clinics for USD 600 mn in 2022.

More on Al Nahdi Medical: Saudi Arabia’s largest retail pharmacy chain — with operations in the UAE — listed on Saudi Arabia’s Tadawul in 2022 in one of the Kingdom’s biggest IPOs so far, raising USD 1.36 bn.

More on GII: The firm specializes in real estate, private equity, and venture capital, managing assets worth USD 4.5 bn. Canada-based Brookfield Asset Management acquired a controlling interest in GII's logistics division in April. GII set plans at the beginning of the year to spend around USD 1 bn throughout 2024 in the US, India and the GCC, Bloomberg reported previously.

Value of project awards by Saudi up 9.9% y-o-y in 2Q 2024 as progress in Neom picks pace

Saudi accounted for the lion’s share of total awarded contracts in the GCC during 2Q 2024, with the value of projects awarded here amounting to 60% of total awarded contracts in the Gulf during the period, according to a report (pdf) by Kamco Invest. The value of project awards in Saudi grew 9.9% y-o-y to USD 30.6 mn in 2Q 2024 despite lower oil production and forecasts of slower economic growth this year, according to the report.

The growth comes on the back of an acceleration of project awards at Neom as officials remain steadfast that progress on the buildout of the city was proceeding on schedule. It was also driven by Aramco’s recent awarding of over USD 25 bn in contracts for the development of the second phase of its Jafurah gas field and the expansion of the Kingdom’s primary natural gas pipeline. The contracts come under Aramco’s plan to see natural gas production in 2030 be 60% higher than it was in 2021.

BACKGROUND- Officials lately hammered the idea of preventing the economy from overheating on the back of its economic diversification push. Some have taken to calling gigaprojects modular and Neom has gone on a drive to underscore to contractors and bankers that everything is on track.

Oil projects still led the way: The value of oil projects awarded by Saudi during the quarter skyrocketed to USD 8.5 bn, up from USD 10 mn during the same quarter a year earlier. Saudi also awarded a separate USD 8.5 bn in energy projects during the period — up 25% y-o-y.

But some sectors saw a decline: The value of construction projects awarded by the Kingdom was down 4.5% y-o-y in 2Q to USD 5 bn.

Key highlights: Some of the quarter’s leading project awards include a USD 2 bn project awarded by the Royal Commission for Riyadh City to build 50 km of highways in the capital, according to the report. It also took note of USD 1.5 bn order to Siemens Energy for two power plants — Taiba 2 and Qassim 2. The two power plants — set to be built in the western and central regions in the Kingdom — will be two of the world’s largest and most-advanced combined-cycle power plants.

How the GCC did: The value of GCC project awards were down 19.7% y-o-y during 2Q 2024 to USD 51.7 bn on the back of an “unprecedented decline” in Qatar and a sharp decline in the UAE, according to the report. َDoha’s project awards fell 98.5% y-o-y during the period to USD 162 mn from USD 10.5 bn a year earlier, while Abu Dhabi was down 23.6% y-o-y to USD 16.3 bn.

Saudi continues to lead VC funding in MENA in 1H 2024 despite y-o-y drop

Saudi continued to outrank its peers in MENA in terms of deployed VC funding in 1H 2024, claiming the top spot with c. USD 412 mn despite a 7% y-o-y drop, according to venture data platform Magnitt’s Saudi Arabia Venture Capital report (pdf). It saw a 3% y-o-y decline in transaction volume during the first half at 63, yet maintained its ranking as the second most transacted country in the region behind the UAE, the Saudi Venture Capital-sponsored report showed.

You can thank Salla for that: The pre-IPO round of e-commerce app Salla accounted for more than a third of the funds raised during the first half of the year, with USD 130 mn in investment tickets during Leap 2024 in March. The round was the region’s only megadeal during the period.

E-commerce / retail topped Saudi’s startup scene in 1H 2024 in terms of funding, amassing USD 215 mn to account for 52% of total funding during the period. However, the funds raised by the industry were down 40% y-o-y, the report showed. Fintech came in second with a triple-digit increase y-o-y at USD 62 mn on the back of fintech Moyasar raising USD 21 mn in seed funding in March and a USD 18 mn series A funding round by robo-advisory Abyan Capital in May.

How the region fared: VC funding in the MENA region was down 34% y-o-y in 1H 2024 to USD 768 mn, making it the region’s worst 1H since the covid-19 pandemic, Bloomberg reported, citing a separate Magnitt report on emerging markets. “They have shifted away from late stage to early stage investments because of the high cost of capital,” Magnitt CEO Philip Bahoshy said.

Only Saudi was superior: Saudi — which accounted for more than half of total VC funding in MENA during 1H — came in second after Singapore in emerging market VC funding in the first half of the year, a summary of a separate report by Magnitt read. Singapore came in first with USD 1.3 bn in funding, followed by Saudi with USD 412 mn as it maintained “its strong investment landscape despite broader regional declines.”

Saudi denies threatening G7 over proposed seizures of Russia’s frozen assets

It’s a mixed bag for the Kingdom in the foreign press this morning, with politics taking somewhat of a lead after Bloomberg reported that the Kingdom signaled a threat to its counterparts in the Group of 7 over Russia’s frozen assets.

Ties with G7 are of “mutual respect”: Bloomberg’s sources allege the Finance Ministry hinted at selling debt holdings in Europe — primarily debt issued by the French treasury — if the G7 opted for a plan to seize c. USD 300 bn of Moscow’s frozen assets. However, the Finance Ministry maintained in a statement to the business information service that “no such threats were made,” while an unnamed official said that while making threats of this kind are not the government’s way of doing business, it is possible that officials spoke on the outcome that could result from the move.

In perspective: The Kingdom’s debt holdings in Europe (estimated at EUR tens of bns) are unlikely to create a significant dent if sold off. However, European officials shelved the plan on concerns that other countries objecting to the seizures could follow suit.

Meanwhile, Bloomberg is out with an interview with the masterminds behind developing a near 80-year-old royal palace in Riyadh to a luxurious hotel with an unmatched guest experience. The luxury hotel is being developed by PIF-owned luxury hospitality firm Boutique Group which aims to turn King Saud bin Abdulaziz’ Red Palace to a luxurious hotel.The 9-acre, art-deco Palace is set to open in 2025, and will feature 70 rooms that aims to give visitors a taste of the Saudi royalty treatment while preserving the palace’s rich history.

More to come: Boutique Group is also working on turning the Tuwaiq Palace in Riyadh and Al Hamra Palace in Jeddah into luxury hotels, with plans being studied for three more.

ALSO- The New York Times looks at Grammy-decorated American rapper Swiss Beatz’s venture into the world’s most lucrative camel races in Saudi which he calls his “second home.” Beatz (who was granted Saudi citizenship) speaks about his experience as the owner of his USD multi-mn team of 48 camels, the Saudi Bronx and his growing attachment to Saudi since his visit in 2006. “When you discover it, you enter into a whole other world,” he said of the sport.

Riyadh Air sets sight on flying to Oceania in coming years, says CEO

AVIATION

The Public Investment Fund’s new flagship carrier Riyadh Air plans to run direct flights connecting the Saudi capital with Australia and New Zealand once it stocks up on aircraft and its passenger flow picks up, the airline’s CEO Tony Douglas told Executive Traveller, without giving a specific timeframe. Riyadh Air, which plans to debut its commercial flights next year, eyes adding eight cities in Australia — including Sydney, Melbourne, Brisbane, Perth, and Adelaide — and three in New Zealand.

Riyadh Air will rely on partners in the short term: For a start, Riyadh Air is considering leveraging Singapore Airlines’ network, which it recently signed an MoU with, to offer interline flights to Australia and New Zealand, Douglas said. “In the early stage of building our network, we’re more likely to put on a ‘thick route’ into Singapore,” Douglas said. “Giving people a wonderful guest experience on Riyadh Air... and the final leg [to Australia or New Zealand] on an equally incredible product and experience with Singapore Airlines.”

In context: Only Emirates and Singapore Airlines currently fly to all five major Australian cities, according to Executive Traveller.

INFRASTRUCTURE-

Emir of Madinah Prince Salman bin Sultan broke ground on 65 environmental, water, and agricultural development projects worth over SAR 11.5 bn, state news agency SPA reported. The newly launched projects include phase 4 of the Yanbu-Madinah Water Transmission System which has a transmission capacity of 550k cubic meters per day and the Yanbu Phase III gas feed line project with a production capacity of 640 mn standard cubic feet of gas per day. It also includes a project by Saudi Water Partnerships Company with the private sector for a desalination plant based on reverse osmosis technology in Yanbu. The project will have a production capacity of 450k cubic meters per day.

DEBT WATCH-

Tadawul-listed drugmaker Avalon Pharma has lined up Shariah-compliant bank facilities worth SAR 70 mn from Emirates NBD, it said in a disclosure to Tadawul. The one-year loan will help Avalon finance its operations. No further details were provided. Avalon Pharma made its market debut on Tadawul in February after a SAR 492 mn IPO.

TRANSPORT-

Saudi, Romania to cooperate on developing the logistics sector: Transport Minister Saleh bin Nasser Al Jasser signed an MoU with his Romanian counterpart Sorin-Mihai Grindeanu to cooperate on developing the countries’ logistics sector by exchanging expertise on logistics zones, facilities, infrastructure, shipping services, and policies, according to state news agency SPA.

RETAIL-

#1- Taiwanese bubble tea chain Gong Cha made its MENA debut with its first Saudi store at Cenomi’s The View Mall in Riyadh, it said in a post on Linkedin. The entry to the region comes months after it signed with local food services company Shahia Foods Group its “largest-ever franchise agreement in the Middle East.” The agreement in January sees Shahia open branches for the brand in the UAE and Bahrain next year under a goal to open at least 300 stores across the region.

One more to come: A second Gong Cha outlet will open in the “coming weeks,” the bubble tea brand said, without disclosing the location.

#2- Lulu opens its 61st store in the Kingdom: UAE-based hypermarket chain Lulu Group inaugurated a new store in Riyadh’s Laban Square, according to a LinkedIn post from the company. This marks the company’s 61st store in the Kingdom, according to Arab News. The hypermarket chain said last year that it plans to have a total of 100 stores nationwide.

ICYMI- Lulu is reportedly eyeing a dual listing on Tadawul and ADX in 2H 2024, in an offering that could be worth as much as USD 1 bn.

REAL ESTATE-

#1- More Optimo fitness centers are coming to Riyadh: Nomu-listed Armah Sports has signed a SAR 127.6 mn, 21.5-year ground lease agreement to set up two fitness centers under its Optimo brand in Al Wadi District in Riyadh, it said in a disclosure to Tadawul. The agreement will also see Armah develop commercial and office spaces for leasing. Optimo currently has three branches, according to its website.

#2- Al Othaim Markets gets its land leases renewed for shopping mall, showrooms in Dammam: Abdullah Al-Othaim Markets Company has renewed two ground lease contracts with the General Organization for Social Ins. for a shopping mall and commercial showrooms it operates in Dammam, according to disclosures to Tadawul (here and here). With each getting a 15-year term renewal, the new leases will go into effect on 9 June 2028, after the previous 25-year agreements expire.

By the numbers: The land lease agreement for the shopping mall was valued at SAR 331.5 mn, while that for the showrooms was valued at SAR 91.2 mn. Both agreements are pending Al Othaim Markets’ shareholders approval.

EDUCATION-

The Human Resources and Social Development Ministry wrapped up the first phase of its vocational verification program for expat workers, it said in a statement. The program aims to ensure that incoming expat workers hold authentic academic academic qualifications and have the required skills for the local job market. The first phase covered 128 countries.

China is building its war chest for a sovereign bond market intervention

China is gearing up to intervene in its sovereign bond market for the first time in decades as yields on its debt are at record lows, the Financial Times reports. Following weeks of expressing its concern about record-low yields, the People’s Bank of China is now moving to build up firepower to sell CPY hundreds of bns of sovereign bonds as it looks to cool off demand for the paper. The country’s central bank will “continue to borrow and sell the bonds on an open-ended and unsecured basis,” according to the salmon-colored paper.

Demand for the sovereign bonds has been red-hot: Investors have been pouring into China’s sovereign bonds as the country’s economy stumbles due to an ongoing real estate market crisis and volatility in its equities. That’s pushed yields on 10-year bonds below 2.4% for the majority of the year, while the country’s central bank has said that the “ideal range” for yields on these notes is between 2.5-3%.

It’s going to take more than a limited intervention: Although the signaling from the People’s Bank of China has helped to some degree, pundits say the issue is more structural and is unlikely to be resolved entirely through a bond market intervention “unless the intervention is massive.” One Natixis senior economist tells the FT that the People’s Bank of China will likely need to buy up “at least 5% of outstanding government bonds … to make a significant difference.” Altogether, that would be around CPY 1.5 tn worth of bonds.

MARKETS THIS MORNING-

Asian markets are having another mixed morning, with Hong Kong’s Hang Seng index and Japan’s Nikkei both up, as China reports better-than-expected inflation data and Japan’s corporate goods price index rises in line with expectations. South Korea’s Kospi and the ASX 200 are both in the red.

Wall Street futures were little changed in overnight trading after the S&P 500 posted another record close, as traders celebrated Powell’s signals for a potential rate cut soon.

TASI	11,779	+0.5% (YTD: -1.6%)
MSCI Tadawul 30	1,472	+0.6% (YTD: -5.1%)
NomuC	25,561	-1.7% (YTD: +4.2%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	6.5% repo	5.5% reverse repo
EGX30	28,466	+0.2% (YTD: +14.4%)
ADX	9,136	+0.03% (YTD: -4.6%)
DFM	4,078	-0.1% (YTD: +0.46%)
S&P 500	5,577	+0.1% (YTD: +16.9%)
FTSE 100	8,140	-0.7% (YTD: +5.3%)
Euro Stoxx 50	4.904	-1.3% (YTD: +8.5%)
Brent crude	USD 84.85	+0.2%
Natural gas (Nymex)	USD 2.35	+0.1%
Gold	USD 2,367.90	+0.2%
BTC	USD 57,860.60	+2.9% (YTD: +37.0%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.5% yesterday on turnover of SAR 5.2 bn. The index is down -1.6% YTD.

In the green: Al Kathiri (+7.5%), Sasco (+6.1%) and Miahona (+5.4%).

In the red: Al Baha (-7.7%), SSP (-2.7%) and Extra (-2.6%).

THE CLOSING BELL: NOMU-

The NomuC fell 1.7% yesterday on turnover of SAR 34.9 mn. The index is up 4.2% YTD.

In the green: Neft Alsharq (+10.3%), Leaf (+9.1%) and Apico (+5.3%).

In the red: Gas (-7.7%), Ladun (-7.2%) and Sure (-5.6%)

CORPORATE ACTIONS-

Shareholders of Tadawul-listed Ayyan Investment approved the board’s recommendation to increase its capital by 24.8% to SAR 1 bn by way of a rights issue, according to a disclosure to Tadawul. The capital increase comes under a plan to procure medical devices and equipment for a hospital affiliated with its subsidiary Al Salam Medical Services and pay obligations owed by the subsidiary among others, it added.

Alinma Investment will distribute SAR 5 mn in dividends to all unitholders of its Alinma Saudi Government Sukuk ETF Fund - Short Maturity for 1H 2024, it said in a disclosure to Tadawul. Shares will be distributed within 10 business days after the distribution entitlement date, it added.

Sedco Capital will distribute SAR 23.4 mn in dividends to all unitholders of its Sedco Capital Reit Fund for 2Q 2024, it said in a disclosure to Tadawul. The distribution date was set for Thursday, 22 August.

CALENDAR

JULY

4 July-25 August: (Thursday-Sunday): Esports World Cup, Boulevard Riyadh City, Riyadh.

7-11 July (Sunday-Thursday): Monsha'at’s wholesale and retail week, Riyadh, Jeddah, Madinah and Khobar SME support centers.

12 July (Friday): PFL MENA 2, The Green Halls, Riyadh.

10-11 July: (Wednesday-Thursday): Global EV & Mobility Tech Forum, Riyadh International Convention & Exhibition Center, Riyadh.

July 24 (Wednesday): Stc shareholders to vote on PIF acquisition of Tawal.

21-30 July (Sunday-Tuesday): International Chemistry Olympiad, King Saud University, Riyadh.

AUGUST

4 August (Sunday): Last day to apply to the Digital Government Authority (DGA) awards.

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

18 August (Sunday): New academic year begins.

27-29 August (Tuesday-Thursday): Saudi Fashiontex Expo, Riyadh.

SEPTEMBER

2-4 September (Monday-Wednesday): Saudi Warehousing & Logistics Expo, Riyadh.

2-4 September (Monday-Wednesday): Saudi Wood Expo, Riyadh.

3-5 September (Tuesday-Thursday): 24 Fintech, Front Exhibition & Conference Center, Riyadh.

9-11 September (Monday-Wednesday): International Manufacturing Congress, Riyadh.

10 September (Tuesday): Saudi Arabia Investors Forum, Riyadh.

10-11 September (Tuesday-Wednesday): SkyMove MENA, Riyadh.

10-12 September (Tuesday-Thursday): Saudi Sports Show, Riyadh.

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

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

16-19 September (Monday-Thursday): Foodex Saudi, Riyadh.

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

17-19 September (Tuesday-Thursday): Hotel & Hospitality Expo, Front Exhibition & Conference Center, Riyadh.

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

18-19 September (Wednesday-Thursday): IDC Saudi Arabia CIO Summit 2024, Riyadh.

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

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

29 September (Sunday) - 1 October (Tuesday): Jeddah Construct Expo, Jeddah.

OCTOBER

1-3 October (Tuesday-Thursday): Intersec Saudi Arabia 2024, Riyadh.

5-7 October (Saturday-Monday): Middle East Education & Training Exhibition 2024, Jeddah.

15-16 October (Tuesday-Wednesday): Solar & Storage Live KSA, Riyadh.

16-17 October (Monday-Tuesday): Global Airport & Aviation Forum, Jeddah.

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

21-22 October (Monday-Tuesday): Aussie Expo, King Abdullah Financial District Conference Center, Riyadh.

29-31 October (Tuesday-Thursday): Future Investment Initiative Conference, Riyadh.

31 October (Thursday): No-visa travel for Saudis to Montenegro on charter flights expires.

NOVEMBER

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

4-7 November (Monday-Thursday): Saudi Build, Riyadh.

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

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh.

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

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

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam.

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

26-28 November (Tuesday-Thursday): Future Power Expo, Riyadh.

DECEMBER

1 December (Sunday): Opec+ to meet.

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh.

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

23-26 December (Monday-Thursday): Aqarat Expo, Riyadh.

Signposted to happen sometime in 2024:

The AFC Champions League Elite

2025

JANUARY 2025

28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Riyadh.

FEBRUARY 2025

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

14-15 February (Friday-Saturday): Formula E, Diriyah.

JUNE 2025

26 June (Thursday): 2024-2025 academic year ends.

2026

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.

2027

The World Water Forum takes place in Riyadh.

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