Saudi credit rating outlook is now positive, S&P Global says

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Saudi medical team completes first robotic heart transplant

Good morning, friends, and welcome to a new week. The news cycle here at home continues to be busy as we (somehow already) hit the halfway point of September. We have a handful of big stories for you this morning, including S&P Global upgrading its credit rating outlook for Saudi to positive, as well as the Capital Market Authority releasing its newest three-year strategy to boost the Kingdom’s capital markets.

^^ We have details on these stories and more in this morning’s news well, below.

BUT FIRST- A big hat tip to the good people at King Faisal Specialist Hospital in Riyadh, who successfully completed the world’s first robotic heart transplant, state news agency SPA reported. The three-hour surgery was led by Dr. Firas Khalil, who used robotic techniques to minimize surgical intervention, reduce pain, and shorten recovery time compared to traditional methods.

HAPPENING TODAY-

SRMG Academy’s technology journalism course will kick off in Riyadh today. The five-day, TikTok-backed program will run until 19 September.

Fenaa Alawwal cultural center will kick off the contemporary art forum Muntada FAA today at the Diplomatic Quarters in Riyadh. The forum runs until Thursday, 19 September.

HAPPENING THIS WEEK-

Our friends at HSBC, together with UK Export Finance and Egyptian-British Chamberof Commerce, are hosting the Egypt-UK Investment and Opportunities Forum in London tomorrow. The conference will showcase investment opportunities in Egypt across different sectors — including renewable energy, water, automotive, food processing, IT, and AI — to potential investors from the UK. It will also facilitate matchmaking between institutions of both countries, bringing together government representatives, business leaders, and senior executives.

WEATHER WARNING- Storms hitting the south: Al Baha, Aseer, Jizan, Najran and Madina are in for moderate to heavy rain this week, according to the General Directorate of Civil Defense. Severe thunderstorms, heavy rains and strong winds are also in the cards, with flooding risks in low-lying areas.

WATCH THIS SPACE-

#1- The Saudi Fashion Commission is heading to London for an investment tour this Tuesday, 17 September as London Fashion Week wraps up, the Saudi Gazette reports. The event — which will be held at the Twenty-Two in Mayfair — is looking to funnel international investments into the Kingdom's fashion sector and boost its presence on the global fashion scene. It will cover key areas of the industry, namely, talent development, brand sourcing and sustainable financing.

#2- Saudi could gain access to Nvidia’s most advanced chips, the H200s, next year as the US government mulls greenlighting the move, Deputy CEO of the Saudi Data and AI Authority (SDAIA) Abdulrahman Tariq Habib told CNBC. The move is set to fast-track the country’s AI development.

The pitch: “It will also open a lot of doors for building the capability, the computational capabilities, in the kingdom. But most importantly, it’s not only the computational capability that’s important. We worked hard in the past three years in building capacity, in human capacity, we also build data capacity as well,” Habib said.

IN CONTEXT- The US government is considering lifting restrictions on advanced Nvidia chip exports to Saudi, Semafor reported on Wednesday, citing people it says are familiar with the matter. The US has curbed the sales of Nvidia’s advanced chips in Saudi Arabia, voicing concerns that the Kingdom’s close relationship with China could grant the latter easy access to the chips.

#3- Three companies get regulatory approval for Nomu IPOs: Construction firm Multi Business Group, Balsm Alofoq Medical Company, and market research and data analysis firm Digital Research Company have all received the green light from the Capital Market Authority to each offer 20% of their shares on the Nomu parallel market, according to statements (here, here, and here).The approvals are valid for six months.

#4- The Kingdom and South Africa could be on the brink of sealing a space industry MoU, with plans for joint satellite development in the cards, South African Science, Technology and Innovation Minister Bonginkosi Blade Nzimande told Asharq Al Awsat.

OIL WATCH-

Saudi crude supply to China poised for a jump next month: The Kingdom’s oil exports to the world’s top consumer China are expected to climb to 46 mn bbl in October, up from 43 mn in September, Reuters reports, citing trade sources. The boost follows Aramco’s decision to slash the official selling price of its flagship Arab Light crude to Asian buyers to its lowest level in nearly three years.

The price cut spurred demand from Chinese refiners, including major players like Sinopec and PetroChina, keeping Saudi crude in close competition with Russia as China’s top suppliers.

SPORTS-

#1- Las Vegas’ The Sphere hosted the inaugural Riyadh Season Noche UFC fight yesterday, according to state news agency SPA. The event showcased a lineup of top UFC competitors from diverse nationalities and weight classes competing for titles in categories such as bantamweight, flyweight, and women’s strawweight. The event is sponsored by Riyadh Season.

Local footballer Fahad Al Muwalled was hospitalized in Dubai after falling from a second-floor balcony at his home on Thursday morning, Al Shabab FC said in a post on X. The 30-year-old winger suffered multiple fractures and is in the ICU. No further details on his injuries were disclosed.

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CIRCLE YOUR CALENDAR-

Smart Cities Saudi Expo 2024 runs from 24-26 September at the Riyadh International Convention & Exhibition Center.

The two-day Kingdom Business and Luxury Travel Congress will kick off on Wednesday, 25 September, at the Crowne Plaza Riyadh RDC Hotel and Convention.

The three-day Global Logistics Forum will kick off on Saturday, 12 October at Riyadh’s King Abdullah Financial District.

The Industrial Hackathon 2024 is scheduled for 10-11 October, the Saudi Industrial Development Fund spokesperson said on X. The hackathon will pit top Saudi talents against each other to showcase their design, production and sustainability solutions for the local manufacturing sector. Contestants will compete for a pool worth a combined SAR 1.4 mn.

The Pakistan Investment Summit and Smart Expo will kick off 2 November at the Jeddah Hilton Hotel.

S&P affirms Saudi’s credit rating at A/A1, revises outlook to positive

S&P Global affirmed the Kingdom’s long- and short-term foreign and local currency sovereign credit ratings at A/A-1 and revised its outlook to positive from stable, according to a statement.

The rationale: The revised outlook comes on the back of expectations of continued non-oil growth under the government’s wide-reaching USD 1.3 tn economic transformation scheme. This comes as large infrastructure projects are recalibrated to manage public finances and the hydrocarbon sector sustains its resilience to shocks.

What could drive a ratings upgrade: “We could raise the ratings over the next two years if reforms lead to steady growth in GDP per capita supported by continued momentum in non-oil growth,” S&P wrote.

Non-oil growth is on a positive trajectory: Saudi’s non-oil GDP growth is expected “to remain solid, fueled by the Vision 2030 boom in consumer spending, tourism, and construction,” S&P said in a separate report ahead of the rating action. The agency expects oil activities to have a smaller share of GDP, dropping to 24-26% (down from c.30%) of the Kingdom’s GDP as Vision 2030 projects drive domestic demand. S&P also sees non-oil growth being supported by growing investments in tourism, logistics, and manufacturing, alongside the recalibration of giga-project timelines to avoid overheating the economy.

Oil reserves are still key to keeping the economy on an even keel: The Kingdom’s vast hydrocarbon reserves and low-cost production have so far acted as a buffer against the effects of global energy transitions. As the world’s largest swing oil exporter, the country is likely to retain its influence over global oil markets even “in a future scenario where fossil fuel demand will largely be met by a smaller number of the most efficient producers,” according to S&P.

And to support spending on diversification plans: The hydrocarbon sector has been a key source of funding for diversification plans, with the government earmarking performance-linked dividends from Aramco towards powering infrastructure investments. The oil major’s decision early this year to shelve plans to increase its maximum sustainable capacity target should lower its capex and possibly lead to greater dividend payouts.

Despite an expected uptick in leveraging to finance megaprojects, Saudi’s net asset position is expected to “remain comfortably strong” into 2027, S&P Global said. Saudi’s net asset position is seen as holding above 40% of GDP for the next few years — down from an estimated 60% in 2023 — even with more borrowing by the government and PIF. Nevertheless, Saudi Arabia has rescheduled some of its project timelines to avoid overburdening its finances.

Some risk remains: A sharper-than-expected fall in oil prices could challenge the positive outlook. Falling oil revenues could interfere with the implementation of diversification plans by placing a strain on public finances, supply chains, as well as the availability of skills, infrastructure, and housing. Slower GDP growth and an increase in geopolitical instability could also lead to a downward revision to outlook and ratings.

But there’s promising momentum ahead: S&P sees continued reforms boosting GDP per capita, with non-oil sectors expanding rapidly. Efforts to enhance domestic capital markets and workforce Saudization are also growth factors, alongside an expectation that FDI and portfolio investments will “gradually increase from a low base,” thanks to the new investment law which levels the playing field for foreign investors.

OTHER KEY INDICATORS-

Real GDP: S&P projects GDP growth to settle at 1.4% this year on OPEC-mandated oil production cuts, before picking up to 5.3% in 2025, 4% in 2026 and 3.6% in 2027.

Fiscal deficit: The credit rating agency sees the government running deficits of 2% to 3% of GDP until 2027 on the back of large public investments.

Inflation: The Kingdom’s consumer price index is projected to average around 1.8%, stabilizing over the next few years at around 1.6%, thanks to food and fuel subsidies as well as the USD peg, with the caveat that further Red Sea-linked supply chain disruptions could turnaround those estimates.

Sovereign debt: Government debt is expected to rise gradually to 28% of GDP by 2027, up from about 22% in 2023, but will be cushioned by SAMA and the PIF’s reserves.

Oil prices: Brent crude prices will stabilize around USD 85 / bbl in 2024, dropping slightly to USD 80 per barrel from 2025 to 2027.

Oil production: Saudi’s oil production is forecasted to average 9 mn bbl / d this year, down from 9.6 mn bbl / d in 2023.

Saudi Capital Market Authority outlines three-year strategy

The strategy looks to push sukuk and debt issuances and widen the investor base

CMA looks to boost Saudi capital markets with new three-year strategy: The Capital Market Authority (CMA) issued on Thursday a new strategy for 2024-2026 outlining a basket of measures to boost Saudi capital markets’ size and investor base while also improving governance. The strategy includes pushes to increase sukuk and debt issuances, lure in international investors, and boost secondary market activity while improving governance and protecting investor rights, according to the strategy report (pdf).

GO DEEPER- EnterpriseAM Saudi had exclusive coverage of CMA Board Commissioner Abdulaziz Abdulmohsen Bin Hassan and Saudi Exchange CEO Mohammed Al Rumaih’s comments on the growth of Saudi capital markets over the past several years. Speaking at the EFG Hermes Annual Conference in London last week, Bin Hassan noted that the priorities moving forward as regulators work on “continuously improving and developing the market” is increasing efficiency, adopting the best international practices, and improving infrastructure.

Snapshot of 2023: Saudi capital markets were capitalized at SAR 964 bn at the end of 2023, the report says. Most of this value (SAR 759 bn) was in holdings of sukuk and debt instruments, followed by ETFs (SAR 189 bn) and shareholdings (SAR 16 bn).

Boosting sukuk + debt market is a priority: The Saudi debt market remains underserved, the CMA says in its strategy, representing just 18% of GDP versus a G20 average of 114%. In order to bridge the performance gap between Saudi debt markets and G20 peers, the CMA plans to establish regulatory frameworks for ESG debt instruments, streamline issuances and subscriptions, improve governance and regulations, and pursue policies that enable real estate and investment funds to issue additional debt.

Despite growing 78% from 2019 to 2023, the Kingdom’s assets under management (AUM) ratio continues to lag behind G20 peers, the CMA notes. The authority plans to tweak regulatory frameworks to allow greater flexibility in fund structures while also enabling new transactions involving public and traded close-ended mutual funds.

Reeling in foreign investments: Foreign investments in Saudi’s capital markets have grown 88% from 2019 to 2023, reaching SAR 488 bn, with the majority of those investments representing shareholdings. The CMA is eyeing lowering barriers to entry for international investors in coordination with the Tadawul while rolling out regulations for cross listing funds and issuing offshore investment licenses.

Fintech: The CMA plans to finalize the model for robo-advisors and expand their deployment within a sustainable environment. This includes creating and rolling out models for distributing investment funds and real estate investment funds on a broader scale. Additionally, the model for collective financing through debt instruments will be developed and expanded. It plans to enable open finance applications by establishing a comprehensive regulatory and technical framework for secure data sharing.

Supporting capital market growth: The authority outlined several initiatives to broaden market scope, including the listing of SPACs on the Nomu parallel market, the trading of Saudi depositary receipts, and refining regulatory frameworks for other types of share offerings and listings. These undertakings come in a bid to increase the number of listed companies, boost market cap, and increase options available to investors.

Safeguarding investors: The strategy also looks to boost transparency and compliance with market regulations, as well as means for individual and class action compensations while cutting the time needed to resolve disputes, noting that 579 investors received SAR 245 mn in compensatory payments in 2023. Also on the agenda are updates to governance codes and requirements for registered auditors.

Risk factors that can disrupt the plan: Changes in tax and zakat systems might affect market attractiveness, while competitive options abroad could deter international investors. There are also potential challenges relating to recruiting skilled professionals, meeting sustainability standards, alongside generalized risks of geopolitical and macroeconomic shocks, capital flight, and cyberattacks.

Saudi attracts more global investments in fintech, with prospects for further growth -KPMG

Investments in Saudi’s fintech sector bucked a global and regional downtrend to grow 231% y-o-y in 2023, reaching USD 791 mn, according to KPMG’s Overview of the Fintech Opportunity in Saudi Arabia Report (pdf).

The global picture, by contrast: Global fintech funding dropped 42% y-o-y last year to USD 35 bn, while funding in EMEA declined 62% y-o-y to USD 8 bn, driven by geopolitical uncertainties and rising interest rates.

The breakdown: Series C funding led the Saudi fintech startup scene in 2023 at USD 398 mn, followed by series D rounds at USD 250 mn, and seed funding rounds at USD 61.1 mn. The highest-funded startup was BNPL platform Tamara, securing USD 340 mn, followed by Lendo (USD 328 mn), and Tabby (USD 308 mn). Key investors included Core Vision, Vision Ventures, Sanabil Investments, Shorooq Partners, and Sanabil 500 MENA.

2030 strategy goals: The Kingdom aims to have 525 fintech companies, 18k fintech jobs, SAR 13.3 bn in direct GDP contribution, and SAR 12.2 bn in cumulative venture capital investments by 2030, according to a 2022 cabinet-approved fintech strategy. The number of fintech players in Saudi hit 226 in 1H 2024, compared to 60 back in 2020.

Saudi is moving closer to a cashless society, with noncash transactions rising to 70% in 2023, compared to 62% in 2021, driven by digital wallets like stc pay and a growing e-commerce sector which is forecasted to top USD 13.2 bn by 2025. Alternative financing methods such as peer-to-peer lending, crowdfunding, and BNPL platforms are also on the rise.

Prospects for further fintech growth: Financial product aggregation, particularly in ins., is gaining traction, consolidating various financial services into single platforms. The Kingdom is also investing in emerging technologies, including blockchain, cloud computing, Web3, and spatial computing, cross-border digital currencies, and other digital means that can be integrated with fintechs. Meanwhile, initiatives are also in place to help SMEs secure B2B financing through the fintech sector.

Key growth drivers: The sector’s expansion is fueled by increasing consumer and business adoption, strong investments and investor interest, a boost in the number of fintech startups, and government policies with supportive regulations.

Saudi fintech adoption rates beat global benchmarks: Despite having fewer players, Saudi recorded a high fintech adoption rate in 2021-2022 at 72%, surpassing the UK (71%), Singapore (67%) and the US (46%).

Potential disruptors to the investment landscape with applications for fintech: Nascent technologies such as spatial computing, cross-chain technology and blockchain interoperability, and decentralized identity are beginning to take shape. Trends in hyper-automation through AI, digital twins, advanced blockchain applications, biometric authentication, and Web 3.0 are emerging, while online banking, payment gateways, electronic trading platforms, mobile payments, and cloud computing have already matured.

Future outlook: Saudi’s cybersecurity market, valued at USD 3.7 bn in 2023, is expected to grow annually by 13%, with cybersecurity presenting a key focal point for fintech investors. Worldwide RegTech spending is also set to see increases, along with other fintech-relevant measures such as lending to SMEs, trade financing, and climate financing.

Fakeeh Care Group CEO resigns

CEO of Fakeeh Care Group, Fatih Mehmet Gul (Linkedin), will step down on 30 September, concluding a decade with the company, according to a disclosure to Tadawul. President and Chairman of the Board Mazen Fakeeh (Linkedin) will serve as interim CEO until a successor is appointed.

Al Moammar Information Systems secures SAR 252 mn loan from Riyad Bank

DEBT WATCH-

IT solutions provider Al Moammar Information Systems secured a SAR 252 mn, three-year Shariah-compliant loan from Riyad Bank, according to a filing to Tadawul. The funding will be used to pay for outstanding invoices and finance large-scale projects, and the issuance of letters of credit.

IT solutions firm Sure Global Tech renewed a SAR 15 mn, three-year Shariah-compliant loan with Riyad Bank, it said in a disclosure to Tadawul. The funding will be allocated to the ongoing and upcoming projects, and the issuance of letters of credit.

Saudi Industrial Development Company subsidiary gears up for SAR 10 mn sukuk sale: Mattress manufacturer Sleep High, a subsidiary of Tadawul-listed Saudi Industrial Development Company, plans to sell SAR 10 mn in Murabaha sukuk to finance its working capital needs, a filing to the exchange showed. Sukuk Capital was appointed to manage the issuance. The date of the issuance was not disclosed.

DIGITIZATION-

Aramco’s tech arm Aramco Digital and AI company Groq are building the world’s largest inferencing data center in the world in the Kingdom, Groq said in a statement. The center, set to be operational by the end of 2024, will use Groq’s AI technology to handle large-scale data processing efficiently, with plans to expand its capacity to support a large number of developers and handle extensive data workloads.

Oracle partners with SDAIA to boost AI skills in the Kingdom: US software company Oracle signed an MoU with the Saudi AI and Data Authority (SDAIA) to offer AI training programs, SDAIA said in a LinkedIn post. This came on the sidelines of the Global AI Summit.

ALSO- US Tech giant IBM penned an MoU with the Kingdom’s AI watchdog to bring the Arabic Large Language Model (LLM) ALLaM and IBM’s AI platform watsonx to the government cloud Deem, according to a statement from IBM. This comes after ALLaM was integrated into watsonx in May.

Secure data + service exchange between gov’t entities: SDAIA launched the Saudi Private Integration Network Exchange (Spine) to connect over 3k government entities in a bid to facilitate and secure data and services exchange, according to a post on X. Spine also aims to facilitate local and international connectivity with SDAIA’s National Information Center.

The Kingdom eyes educating 1 mn Saudis on AI under a new program: SDAIA, the Education Ministry, and the Human Resources and Social Development Ministry launched the One Mn Saudis in AI Initiative (SAMAI), a program aiming to improve 1 mn Saudis’ understanding of AI, its applications, and its ethical implications, SDAIA said in a Linkedin post. The initiative includes AI skills training for both business and day-to-day applications. The educational platform is available here.

OTHER AGREEMENTS FROM SDAIA-

#1- SDAIA and Huawei signed an MoU to establish a program dedicated to training and developing IT and AI talents in Saudi Arabia, with the goal of improving the Kingdom’s national AI capabilities, according to a LinkedIn post.

#2- SDAIA and Microsoft signed an MoU to partner on data and AI initiatives, including developing an Arabic Language Model and creating a center to focus on generative AI, according to its LinkedIn post.

#3- SDAIA + National Guard signed an MoU to collaborate on data and AI initiatives including facilitating electronic connectivity, partnering through the government cloud, developing AI models for the private sector, offering specialized training for the National Guard, supporting AI projects, and providing specialized consulting in the field, according to SDAIA’s LinkedIn post.

AVIATION-

Saudi Arabia’s second flag carrier Riyadh Air kicked off test flights on Thursday, with its maiden flight launching from King Khalid International Airport in Riyadh to King Abdulaziz International Airport in Jeddah, it said in a statement posted on X. The move is part of a process to secure the Air Operator Certificate from the General Authority of Civil Aviation. Riyadh Air plans to start commercial operations next year.

Qatar Airways plans to resume flights between Doha and Abha from 2 January, 2025, with two weekly flights on Thursdays and Saturdays, according to a press release. In addition, the Qatari flag carrier will increase the number of weekly flights between Doha and Neom from two to four.

TOURISM-

Saudi Arabia probes maritime ties with Suez Canal: Deputy Transport and Logistic Services Minister Rumaih bin Muhammad Al Rummain and Chairman of Egypt’s Suez Canal Authority Osama Rabie discussed maritime cooperation, boosting maritime tourism, facilitating yacht and cruise ship entry, and enhancing passenger and goods transport, state news agency SPA reported.

CONSTRUCTION-

A new shopping mall is coming to Madinah: The Madinah Regional Municipality gave the green light to the construction of a commercial mall in the Jasham District, according to state news agency SPA. No further details were disclosed regarding the project’s value or contractors.

MANUFACTURING-

A spree of projects coming to Madinah: The Saudi Authority for Industrial Cities and Technology Zones (Modon) signed an agreement to build a SAR 300 mn baby formula factory in Madinah Industrial City and a separate agreement to revamp 30 factories for SMEs working in the light industry sector with SAR 100 mn, according to state news agency SPA.

AND- More agreements: Modon signed an MoU with Taibah University and the National Academy for Industry to provide training programs for workers at industrial establishments and SMEs and inked another one with the Saudi Red Crescent Authority in Medina to bolster emergency services in the city.

INS.-

Wataniya Ins. Company received a renewed license from the Ins. Authority, valid for three years from 3 January, 2025 to 1 December, 2027, according to a filing to Tadawul.

SPACE.-

Saudi and Brazil’s space agencies signed a strategic cooperation agreement to strengthen space economy partnerships, according to Arab News. This came during Saudi Space Agency Vice Chairman and CEO Mohammed Al Tamimi’s two-day visit to the G20 Space Economy Leaders Meeting in Brazil’s Foz do Iguacu.

Another record year for ETFs?

Global exchange traded funds (ETF) are on course to notch a new record high this year, after inflows rose to USD 129.7 bn in August, despite a summer slowdown and volatility in the market, the Financial Times reports, citing data from BlackRock. While this figure sits below July's record USD 198 bn, it edges YTD inflows to USD 969 bn, well ahead of the USD 848 bn logged by the same point in 2021, the peak year for ETF investments.

Investors favored defensive sectors and fixed income: While technology remained the most popular equity sector, “we have continued to see buying in defensive sectors, in financials and utilities,” head of investment strategy for BlackRock’s iShares arm in the Emea region Karim Chedid said. In fixed income, government bond ETFs — one of the safest among the asset class — attracted USD 18.7 bn, investment-grade corporate bonds took in USD 7.9 bn, and high-yield bonds saw just USD 0.8 bn. ETF demand for gold, another traditional safe haven, has rebounded after a period of outflows, even with gold prices at record highs.

The overall trend for ETF investments this year is an upwards trajectory, possibly encouraged by expectations of rate cuts, Chedid added.

ALSO WORTH KNOWING-

Oman’s sovereign wealth fund Oman Investment Authority will initiate IPOs in key sectors, including energy, services, and logistics, between 2024 and 2028, as part of its wider divestment strategy, which has already generated over OMR 1 bn. (Statement)
The Bank of England has scaled back its capital rule changes for UK banks and pushed back the new regime to 2026, easing requirements on small business lending, mortgages, trade finance, and infrastructure loans, with key thresholds rising less than 1% instead of the previously estimated 3%, following industry lobbying and similar moves by US and EU regulators. (FT)

TASI	11,843	+0.7% (YTD: -1.0%)
MSCI Tadawul 30	1,471	+0.6% (YTD: -5.1%)
NomuC	25,935	+0.7% (YTD: +5.7%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	6.5% repo	5.5% reverse repo
EGX30	30,498	0.0% (YTD: +22.5%)
ADX	9,350	+0.5% (YTD: -2.4%)
DFM	4,380	+0.4% (YTD: +7.9%)
S&P 500	5,626	+0.5% (YTD: +18.0%)
FTSE 100	8,273	+0.4% (YTD: +7.0%)
Euro Stoxx 50	4,844	+0.6% (YTD: +7.1%)
Brent crude	USD 71.61	-0.5%
Natural gas (Nymex)	USD 2.31	-2.2%
Gold	USD 2,610.70	+1.2%
BTC	USD 60,122.06	-0.7% (YTD: +43.3%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.7% yesterday on turnover of SAR 6.5 bn. The index is down 1% YTD.

In the green: Rasan (+6.9%), Nayifat (+5.7%) and Zamil (+4.3%).

In the red: Al Baha (-5.3%), Sfico (-3.7%) and Jamjoom Pharma (-3.6%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.7% yesterday on turnover of SAR 50.8 mn. The index is up 5.7% YTD.

In the green: ASG (+8.5%), Al Hasoob (+8.2%) and Al Qemam (+7.1%).

In the red: Fadeco (-3.6%), Edarat (-3.5%) and Osool and Bakheet (-3.1%)

CORPORATE ACTIONS-

#1- Paper Home has received CMA approval for a 33% capital increase to SAR 20 mn via the issuance of 500k bonus shares at a rate of 1 share per every 3 shares, according to a CMA statement. The increase will be financed by transferring SAR 5 mn from retained earnings, with Paper Home saying last week that the capital increase looks to support the firm’s expansion and growth.

#2- Derayah Financial is distributing SAR 6.6 mn in dividends at SAR 0.061 per unit to unitholders of Derayah REIT for 2Q 2024, it said in a filing to Tadawul. Distributions will be made within 30 working days of the Wednesday, 6 November entitlement date.

#3- Zamil Industrial Investment will pay SAR 61 mn in Zakat differences for the period spanning 2015 to 2018, following an updated assessment, it said in a filing to Tadawul. After receiving a final calculation letter from the Zakat, Tax, and Customs Authority, the amount was revised from an initially contested SAR 185 mn. The company confirmed it has sufficient provisions to cover the payment, and no material impact is expected on its financial statements.

#4- Albilad Capital has completed the re-balancing of the share basket for Albilad MSCI US Equity ETF to reflect the index constituents as of Tuesday, 10 September, according to a disclosure to Tadawul.

Saudi Awal Bank has rebalanced its MSCI Tadawul 30 Saudi ETF holdings to match the current composition of the index it tracks, it said in a disclosure to Tadawul.

Gov’t puts down USD 75 mn for hospital project in Saint Lucia

Saudi Fund for Development boosts healthcare in Saint Lucia with USD multi-mn hospital project: The Kingdom has inked contracts to fund the reconstruction of St. Jude Hospital in Saint Lucia, with a USD 75 mn loan from the Saudi Fund for Development, state news agency SPA reports. The project aims to modernize the hospital, adding 100 beds and key medical facilities to serve up to 50k people per year.

Joint statement for Madrid Summit calls for support for Palestinian statement and immediate peace measures: Representatives attending a high-level meeting in Madrid over the weekend issued a statement condemning violence and unilateral measures, calling for a ceasefire in Gaza, humanitarian aid, and adherence to international law, state news agency SPA reports. The statement emphasized the need for a peace conference and support for Palestinian statehood, with a focus on resuming negotiations and addressing the humanitarian crisis. Foreign Minister Prince Faisal bin Farhan bin Abdullah attended the summit, along with representatives from the Arab League, Organization of Islamic Cooperation, and several European nations.

CALENDAR

SEPTEMBER

15-19 September (Sunday-Thursday): SRMG Academy Technology Journalism Workshop, Riyadh.

15-19 September (Sunday-Thursday): Muntada FAA, Riyadh.

16 September (Monday): The Federation of Saudi Chambers’ meeting on iron and steel, Riyadh.

16-17 September (Monday-Tuesday): MEP International Conference 2024, Hilton, Jeddah.

16-17 September (Monday-Tuesday):Building Envelope Design and Insulation Conference (Bedic) 2024, Hilton, Jeddah.

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.

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

24-25 September (Tuesday-Wednesday): CX & Loyalty Summit & Awards, Riyadh.

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

24-26 September (Tuesday-Thursday): Smart Cities Saudi Expo 2024, Riyadh Front Exhibition & Conference Center.

25-26 September (Wednesday-Thursday): Kingdom Business and Luxury Travel Congress, Crowne Plaza Riyadh RDC Hotel and Convention.

26 September-5 October (Thursday-Saturday): AlUla Skies Festival, AlUla.

27 September (Friday): CAF Super Cup Final 2024, Riyadh.

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

29 September (Sunday): Start of Digital Chip Design Technologies training program.

OCTOBER

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

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

12 October (Saturday): Riyadh Season.

12 October (Saturday): Shakur Stevenson x Joe Cordina, Riyadh.

12-14 October (Saturday-Monday): Global Logistics Forum, Riyadh.

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

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

19 October (Saturday): Battle of the Giants, Mayadeen Hall, Riyadh.

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.

21-23 October (Monday-Wednesday): Global Health Exhibition 2024, Riyadh.

23-24 October (Wednesday-Thursday): UNIDO’s Multilateral Industrial Policy Forum (MIPF), Riyadh.

26 October (Saturday): Donor Conference to Support Refugees in Sahel and Lake Chad Regions, TBD.

27-28 (Sunday-Monday): The Global PropTech Summit, Movenpick Hotels & Resorts, Riyadh.

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

30 October-3 November (Wednesday-Sunday): Hia Hub 4.0, 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.

11-12 November (Monday-Tuesday): Expenditure Efficiency Forum, The Hilton, Riyadh.

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

16 November (Saturday): Latino Night at Riyadh Season, Riyadh.

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

19-20 November (Tuesday-Wednesday): The Women's Economic Forum 2024, Dammam.

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

23 November (Saturday): Red Sea 600, Jeddah Yacht Club and Marina.

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

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

29 November-2 December 2024 (Sunday-Wednesday): World Sailing Youth Match Racing World Championship, Jeddah Yacht Club and Marina.

DECEMBER

1 December (Sunday): Opec+ to meet.

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

3-5 December (Tuesday-Thursday): The International Business Exchange – IBEX EVENTS, Riyadh.

11 December (Wednesday): Billboard Arabia Music Awards (BBAMAs), King Abdullah Financial District, Riyadh.

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

5-8 December (Thursday-Sunday): World Sailing Women’s Match Racing World Championship, Jeddah Yacht Club and Marina.

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

15-19 December (Sunday-Thursday): Internet Governance Forum, King Abdulaziz International Conference Center, Riyadh.

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

Signposted to happen sometime in 2024:

The AFC Champions League Elite

2025

JANUARY 2025

14-16 January (Tuesday-Thursday): Future Minerals Forum, King Abdulaziz International Conference Center, Riyadh.

27-29 January (Monday-Wednesday): Real Estate Future Forum, Four Seasons Hotel, Riyadh.

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

FEBRUARY 2025

6-8 February (Thursday-Saturday): Liv Golf season opener, Riyadh Golf Club, Riyadh.

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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