Good morning, wonderful people. It’s a mixed start to the week, with a small handful of big stories to get the ball rolling, including the latest industrial production index data and Alat closing its USD 2 bn investment in Lenovo.

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

HAPPENING TODAY-

Real Madrid and FC Barcelona will face off today for the Spanish Super Cup final in Jeddah’s King Abdullah Sports City at 10pm. Real Madrid will be looking to respond to the 4-0 home loss in the first Clasico of the season. (Reuters)

HAPPENING TOMORROW-

#1- Shares of bakery Shmoh Almadi will begin trading on Tadawul’s parallel market Nomu tomorrow, according to a Tadawul statement. The company’s shares will be allowed to fluctuate within a ±30% band on the first three days of trading, after which price fluctuations will be capped at ±10% as circuit breakers take effect.

REFRESHER- The company is taking a 14.9% stake to market in an offering that raised some SAR 30.8 mn in proceeds after it priced the offering at SAR 22 per share. The offering closed 195.5% oversubscribed on the back of strong interest from qualified investors.

#2- The Hajj Conference and Exhibition kicks off tomorrow at the Jeddah Superdome, bringing together stakeholders in the Hajj industry to probe new programs and initiatives for streamlining the Hajj experience for pilgrims. The conference, which wraps on Thursday, 16 January, will feature over 280k exhibitors.

🌧️ WEATHER- Light to moderate rains and dense fog will hit parts of Jazan, Aseer, Makkah, Aljouf, and the Eastern Province until later today, according to NCM’s warning (pdf). In Riyadh and Dammam, expect highs of 18°C and 23°C, and lows of 11°C and 14°C. Meanwhile, sunny Madinah will hit 23°C, and also drop to 11°C.

PSAs-

#1- Businesses have until this Wednesday, 15 January to submit excise tax returns for November and December, the Zakat, Tax and Customs Authority (Zatca) said in a statement. Missing the deadline could result in penalties of 5% of the unpaid tax for every 30 days of delay. Excise tax is imposed on products associated with health risks, including soft and energy drinks, and tobacco products.

#2- Importers, exporters, and service logistics providers operating under the Saudi Authorized Economic Operator(AEO) Program will now have access to new benefits, including administrative, procedural, and financial perks, after Zatca approved updates to the AEO program on Friday, according to the state’s official gazette Umm Al Qura. Applications can be submitted through Zatca's website.

About the AEO program: The program was developed and managed by Zatca in partnership with 14 other government bodies to help facilitate trade and enhance the Kingdom’s logistics sector. It follows global trade security standards set by the World Customs Organization and has onboarded over 550 establishments.

#3- Truckers in Taif must avoid Al Sayl Al Kabeer road on Thursdays and Saturdays from 2-8pm due to maintenance works, the Public Security said on X. The ban will remain in place until Friday, 28 February.

#4- The Saudi Food and Drug Authority is calling on people to dispose of any Country Butchery Boy Beef Pepperoni products they may have, after lab tests confirmed contamination with Listeria monocytogenes, a harmful bacterium, in 250-gm packs with an expiration date of 1 March. 2025, it said in a statement. The authority has already taken steps to withdraw the UAE-imported product — which has been deemed unsafe for consumption — from the market.

WATCH THIS SPACE-

#1- IPO WATCH- Saudi Tabreed reportedly hired Citigroup and SNB Capital to manage a potential IPO on the Saudi Tadawul, Bloomberg reports, citing unnamed sources with knowledge of the matter. While the size, value, and timeline of the offering remain under discussion, the potential IPO could happen this year, Bloomberg’s sources said.

REMEMBER- The Public Investment Fund acquired a 30% stake in Saudi Tabreed — the Saudi arm of DFM-listed National Central Cooling Company Tabreed in 2023. The stake PIF acquired was estimated to be worth some USD 250 mn.

#2- IPO WATCH- Almunif Pipes is on track to submit all necessary documents for its Tadawul IPO to the Capital Market Authority in 2Q 2025, the company’s CEO Faisal Almunif told Argaam. The company manufactures plastic pipes and fittings for infrastructure projects in the water, sewage, energy, electricity, and telecommunications sectors. No further details have been discussed on the size and timeline of the offering.

#3- Dar Global eyes US, Greece expansion: Dar Global, the international arm of Saudi Dar Al Arkan, plans to expand operations in the US and Greece, according to a statement from the Dubai-based developer. The developer plans to invest in major US cities, seeking partnerships with developers on luxury residential properties. The focus will be on both US residents and international buyers, although specific project details remain undisclosed.

REMEMBER-The decision follows recent joint projects with the Trump Organization, including Trump Towers in Jeddah and Dubai, as well as a hotel project in Oman. Eric Trump, Trump Organization’s executive vice president, also told Reuters last month that additional projects are in the pipeline for the region, including a tower in Riyadh and further developments in Abu Dhabi.

#4- Gov’t allocates SAR 10 bn for industrial sector investments: The Industry and Mineral Resources and Investment Ministries earmarked SAR 10 bn to kickstart the Standard Incentives Program, according to a post on X. The program is set up to cover 35% of initial investment rounds for eligible development projects in the industrial sector, capped at SAR 50 mn per project,

Where the money is going: The initially targeted sectors include chemical conversion, automotive industries, and machinery, with additional sectors of interest set to be announced throughout the year.

IN CONTEXT- The industrial sector accounts for 30% of the Kingdom’s foreign direct investments, Argaam quotes Investment Minister Khalid Al Falih as saying. The sector raked in a total of SAR 142 bn in investments in 9M 2024, drawing some 571 multinational companies to set up shop in Riyadh last year, he added.

#5- The Khamis Mshair 1 site is now a designated mining complex following a decision by the Industry and Mineral Resources Minister Bandar AlKhorayef for the site in Asir to be used exclusively for mining activities and protected from unauthorized use, according to the state’s official gazette Umm Al Qura.

IN CONTEXT- The ministry greenlit a SAR 685 mn incentive package last year to boost mineral exploration in the Kingdom. The program, rolled out in collaboration with the Investment Ministry, aims to reduce early-stage risk for exploration companies. It came as part of efforts to expand the sector and tap reserves of gold, phosphate, and other minerals.

FAST FIGURE- The nation’s untapped mineral resources were estimated by the Kingdom at as much as USD 2.5 tn in January, 2024, compared to a previous forecast of USD 1.3 tn.

DATA POINTS-

#1- Saudi airports received 128 mn passengers in 2024, up 15% y-o-y, state newsagencySPA quotes Transport Minister Nasser Al Jasser as saying. Meanwhile, the number of flights grew 11% during the year to 902k flights, connecting the Kingdom to 172 destinations around the world.

#2- Mortgage finance contracts backed by the Real Estate Development Fund grew 20% y-o-y in 2024 to SAR 62.9 bn, catering to 89k beneficiaries, state news agency SPA reports. The fund also deposited a total of SAR 11.9 bn in the accounts of Sakani beneficiaries throughout the year.

REFRESHER- Total mortgage loans provided by commercial banks in the Kingdom increased 13.3% in 3Q 2024 to SAR 846.5 bn (USD 225 bn). Meanwhile, retail mortgage loans increased 11% to SAR 657 bn, accounting for 77.6% of the total, while corporate mortgage lending rose 21.9% to SAR 189.6 bn.

OIL WATCH-

The Kingdom is set to dial back its crude oil shipments to China in February, cutting allocations to an estimated 43.5 mn barrels, down from January’s three-month high of 46 mn barrels, Reuters reports. Key Chinese refiners including state-owned CNOOC and PetroChina, and privately-held Hengli, are set to take fewer barrels, even as Sinopec and Sinochem reportedly move to increase their deliveries.

Tightening the faucet: The move comes as Aramco raises the official selling price for its flagship Arab Light crude to Asian buyers, which is now being sold at a premium of USD 1.50 a barrel to the regional benchmark — up USD 0.60. OPEC+’ decision early last month to extend production cuts through to 1Q 2025 also implies tighter supplies going forward.

HAPPENING THIS WEEK-

The first Saudi-Thai Coordination Council meeting is scheduled to take place this Thursday at Thailand's Foreign Affairs Ministry headquarters in Bangkok, the Bangkok Post reports. The council — which was formed after the two nations restored diplomatic relations in 2022 — will focus on strengthening ties across politics, security, trade, and culture.

SPORTS-

#1- Mazzari eyes Saudi coaching role amid football boom: Former Inter Milan and Napoli Coach Walter Mazzari is interested in leading a Saudi Pro League team, citing the Kingdom’s rise as a global football hub, he told Al Arabiya. "Saudi Arabia has just become one of the centers of world football," Mazzari said, adding that he is open to the chance under the right conditions.

Building blocks: After almost a year out of the game, the veteran coach, known for his 23-year career across top European clubs, praised the Kingdom’s investment in infrastructure, human resources, and the growing passion of fans. "There’s a lot of enthusiasm from fans and managers. It will be the next future of world football," he said, signaling his admiration for the league’s rapid evolution.

#2- FROM THE RUMOR MILL- Barcelona looks set for summer exodus: With FC Barcelona defender Ronald Araujo already on his way to Juventus thismonth, the club might also be losing Frenkie De Jong and Raphinha to the Saudi Pro League this summer, Spanish outlet Fichajes reports. Raphinha cast doubt on the club’s ability to attract the best players at a press conference ahead of today’s Clasico, citing Barcelona’s failure to register Dani Olmo and Pau Victor during last summer’s transfer window.

#3- The PIF and TKO — owner of UFC and WWE — are reportedly teaming up to launch a new boxing league, the New York Times reports, citing people it says are familiar with the matter. Sela, a unit of the sovereign wealth fund, is set to bankroll the league, which will feature up-and-coming boxers tied exclusively to the competition, and is expected to debut high-stakes bouts in the Kingdom, the US, and Europe, with hosting fees potentially topping USD 40 mn per event, the people said. An official announcement could be weeks away, they added.

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THE BIG STORY ABROAD-

The devastating wildfires in Los Angeles are continuing to dominate the global press this morning, with the prospect of increased wind speeds looking set to make an already out of control situation even harder to contain. Firefighters have been battling six separate wildfires across the country, which have so far taken 16 lives and laid waste to thousands of homes. (Wall Street Journal | Financial Times | Reuters | Associated Press | New York Times | Guardian)

Some are already picking up on the colossal and potentially impossible challenge this will present to the ins. industry, with Bloomberg addressing the costs and the implications of the “what’s almost certain to become the costliest wildfire in US history.” Early estimates on Thursday by JPMorgan were already forecasting insured damages reaching USD 20 bn and beyond, leading some, including climatologist Daniel Swain, to ask “Could a single event cause insurers to become insolvent? That’s the great fear.”

Our part of the world is also ranking high on the world’s digital front pages this morning, with news that Shin Bet domestic security chief Ronen Bar and other senior Israeli officials will head to Doha for ceasefire talks. Donald Trump’s Middle East envoy Steve Witkoff has also been in the region to purportedly work towards an agreement, with the incoming president warning that there will be “all hell to pay” if all the Israeli hostages are not released by the time he is inaugurated on 20 January. (Associated Press | Financial Times | Bloomberg)

TikTok’s ongoing battle with US legislators is once again topping the business press, as the Supreme Court hears arguments over a law requiring its Chinese parent ByteDance to divest the platform by 19 January or face a nationwide ban due to concerns of Chinese influence. TikTok's legal team has argued the law violates the First Amendment and warned that it could set a precedent for targeting other companies. (Reuters | Financial Times)

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.