Retail sukuk program Sah subscription closes tomorrow

Good morning, friends. It’s shaping up to be one of those quieter Monday mornings here in the Kingdom, with just a handful of important stories to keep track of, including the latest purchasing managers’ index figures from Riyad Bank.

HAPPENING TODAY-

Subscription for the January round of the government’s retail sukuk program Sah closes at 3pm tomorrow after kicking off yesterday, the National Debt Management Center said in a post on X. The instruments carry a yield of 4.95%. The minimum subscription amount per investor is set at SAR 1k, with maximum subscriptions capped at SAR 200k.

⚠️ WEATHER- A rainy Riyadh will see a high of 19°C and a low of 6°C today, while Jeddah and Makkah are expecting highs of 27°C and 29°C and lows of 19°C and 21°C. The National Center of Meteorology forecasts moderate to heavy rainfall across much of the Kingdom through to Wednesday. The showers will be accompanied by strong winds, dust storms, with chances of hail, storm surges, and flash flooding.

PSAs-

#1- Businesses subject to withholding tax must file their December tax returns by Friday, 10 January via the Saudi Zakat, Tax and Customs Authority’s (Zatca) website, according to a statement from the authority. Missing the deadline could result in penalties of 1% of the unpaid tax for every 30 days of delay.

#2- The Saudi Arabian National Guard opened applications for military service positions across the Kingdom, it said in a post on X. Applications are open on the National Guard’s website for the ranks of Sergeant, Corporal, Private First Class, and Private, and will be accepted until Thursday, 9 January. A highschool certificate or a diploma in aircraft maintenance, refrigeration and air conditioning, or other maintenance-related fields is required.

#3- The General Authority for Statistics launched a new service offering access to MicroData, the authority said in a statement. The service is aimed at supporting decision-makers and researchers in analyzing data and addressing future challenges.

WATCH THIS SPACE-

Subscription for Itmam Consulting’s IPO on Nomu wraps up on Sunday, 12 January, after opening yesterday. Qualified investors can book up to 1 mn shares each with the minimum amount set at 100 shares. The final allocation is slated for Wednesday, 15 January.

BACKGROUND- The Riyadh-based consulting firm is offering a 14.3% stake on Tadawul’s parallel market. Proceeds from the offering will fund working capital to support expansion plans, with SAR 3 mn allocated to cover the offering expenses.

ADVISORS- Yaqeen Capital is quarterbacking the transaction as lead manager and financial advisor, while RSM acts as a legal accountant. Receiving agents include Alistithmar Capital,

Alinma Investment, SNB Capital, AlJazira Capital, and Riyadh Capital, among others.

DATA POINTS-

#1- Aramco hit 45% of its long-term production target for liquids-to-chemicals (LTC) conversion, Aleqtisadiah reports, citing a company source. The company targets 4 mn bbl / d in LTC conversions by 2030, according to CNBC Arabia.

Efforts to diversify operations underway: Aramco is implementing several projects to increase its production capacity in the petrochemical sector to meet its 2030 target. The initiative is set to diversify Aramco’s revenue streams and reduce its dependency on traditional crude oil sales.

#2- The Industry and Mineral Resources Ministry issued around 40.5k certificates of origin in December, supporting exporters across commercial and industrial sectors, states news agency SPA reports. These certificates confirm that exported products are of Saudi origin.

#3- The Eastern Province Municipality secured SAR 9 bn investment contracts in 2024, the province said in a post onX. Some of the key projects launched in the province last year include a SAR 7 mn sustainable city, the Dammam Corniche, Al Hamra Corniche in Jeddah, and the Southern Corniche in Al Khobar.

SPORTS-

#1- Ivory Coast midfielder Seko Fofana ended his brief stint in Saudi after signing a four-and-a-half-year contract with French club Rennes, according to the Associated Press. He joined Al Nassr in July 2023 before being loaned to Al-Ettifaq six months later.

#2- Al Qadsiah snagged 17-year-old Brazilian attacking midfielder Gabriel Carvalho from Internacional, Reuters reports. Carvalho will remain in the ranks of Internacional until he makes the transition in the summer. Carvalho scored one goal and provided three assists in 26 appearances for Internacional last season. The financial terms of the transfer were not disclosed.

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THE BIG STORY ABROAD-

It’s another mixed bag in the foreign press this morning, with updates on yet another round of Israel-Hamas ceasefire talks, a powerful US winter storm, and Nippon Steel’s blocked USD 15 bn bid for US Steel getting plenty of ink.

#1- Reuters and Bloomberg are both leading with US President Joe Biden’s blocking of Nippon Steel’s USD 15 bn bid for US Steel. Bloomberg took note of Nippon Steel’s shares slipping in the first day of trading following Biden’s announcement, and Reuters has an exclusive on another headwind that had been facing Nippon Steel, as the CEO of steelmaker Cleveland-Cliffs — which also made a failed bid for US Steel in 2023 — spread doubt over the transaction in the months leading up to Biden’s blocking of the bid. The newswire also looks at potential scenarios following Biden’s blocking, including the potential impact on US-Japan relations.

#2- Israeli and Hamas officials are still at odds in the latest round of ceasefire talks, which took place in Doha yesterday, after Hamas said it handed over a list of hostages it is prepared to return in exchange for the promise of a ceasefire and Israel’s withdrawal, France24 reports. Israel denied it received a list, even though Reuters says it has seen the list which was handed over by Hamas. The talks came against the backdrop of another brutal weekend in Gaza, with over 100 killed in airstrikes and bombardments.

#3- The US has been hit by a powerful winter storm, disrupting travel and prompting speculation over potential delays in government operations on the day where Congress is set to certify the results of the elections in November and formalize president-elect Donald Trump’s victory ahead of his inauguration on 20 January. US lawmakers confirmed the meeting will take place as planned. (WSJ | Axios | Reuters)

CIRCLE YOUR CALENDAR-

#1- The three-day Future Minerals Forum kicks off on 14 January at Riyadh’s King Abdulaziz International Conference Center.

#2- The three-day Real Estate Future Forum kicks off on 27 January at the Four Seasons, Riyadh.

#3- LEAP 2025 will take place between 9-12 February at the Riyadh Exhibition & Convention Center in Malham. The tech event will bring together over 1.8k global tech brands, 1k experts and some 680 startups. LEAP 2025 will feature over 300 hours of content across 17 tracks, covering AI, fintech, edtech, smart cities, and more. Co-located with LEAP is DeepFest, a major AI-focused event bringing thought leaders and innovators under one roof.

#4- The eight-day Big 5 Construct Saudi will take place from 15-18 February and 24-27 February at the Riyadh Front Exhibition & Conference Center. The Kingdom’s largest construction event will feature over 2k exhibitors from more than 60 countries, showcasing innovations across the sector. The event is expected to attract over 75k participants.

#5- The UFC returns to the Kingdom on 1 February, kicking off its 2025 collaboration with Riyadh Season, according to Forbes. The main event will see former middleweight champion Israel Adesanya face Nassourdine Imavov. Adesanya, on a two-fight losing streak, needs a win to remain in title contention, while Imavov enters with a four-fight winning streak.The co-main event will see Shara Magomedov square off with Michael "Venom" Page. The card also includes several ranked fighters, with matchups spanning multiple divisions. Full card here.

#6- The Formula One 2025 Saudi Arabian Grand Prix will kick off on 20 April, featuring 50 laps at the 6.174-km Jeddah Corniche Circuit. Tickets are available here.