Salic now owns 80% of Singapore’s Olam Agri + Alat acquires 15% of TK Elevator

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WHAT WE’RE TRACKING TODAY

THIS MORNING: FinMin reportedly taps banks for EUR-denominated sukuk issuance + Witkoff to land in the region tomorro

Good morning, ladies and gents. The week continues with strong M&A activity, with Salic and Alat snapping stakes in foreign companies. Meanwhile, FAB and BMI weigh in on the Kingdom’s growth prospects in 2025, and EFG Hermes’ Head of Research Ahmed Shams El Din discusses the Kingdom’s growing capital markets. Let’s dive in.

WEATHER- A chilly Riyadh is set for a 14°C high and a 7°C low today, while Jeddah’s mercury is set to peak at 28°C and hit a low of 20°C. Meanwhile, Dammam will see a high of 16°C, and a low of 13°C.

HAPPENING TOMORROW-

The US Special Envoy to the Middle East Steve Witkoff will be visiting the region this week to discuss the second phase of a Hamas-Israel hostage agreement, he told CBS. Witkoff plans to arrive Wednesday evening and spend five days visiting Saudi Arabia, Qatar, Egypt, Israel, and the UAE.

What’s in phase two? The second phase aims to establish a permanent ceasefire and ensure Hamas cannot return to government, Witkoff said. He added that there are discussions on the physical removal of Hamas from Gaza, though details regarding their destination remain undisclosed.

WATCH THIS SPACE-

#1- The Finance Ministry tapped HSBC, JPMorgan, and Societe Generale as global coordinators for a EUR-denominated sukuk issuance that can happen as soon as today, Bloomberg reports, citing a source it says is familiar with the matter. The offerings may include a seven-year green sukuk and a 12-year conventional sukuk, the source said. Additional details on yields and offering size were not disclosed.

This would be the government’s first green bond issuance. Proceeds will go toward financing the Kingdom’s green financing framework, unveiled last March. Projects under the framework focus on renewable energy, clean transportation, pollution prevention and control, sustainable water and wastewater management and climate change adaptation.

#2- PIF-owned Saudi Real Estate Refinance Company (SRC) will be out with its second international sukuk issuance within the next three months, as part of USD 5 bn in issuances lined up for this year, Municipalities and Housing Minister Majid Al Hogail told Al Arabiya.

REMEMBER- The move comes after the strong demand seen for the company’s recent USD 2 bn issuance that was 6x oversubscribed, and will be priced similarly to government bonds, Al Hogail added.

#3- Local contractors are conducting feasibility studies for the development of dry port facilities and a veterinary quarantine at Oman’s Economic Zone at Al Dhahira (EZAD), Aleqtisadiah reports.

The details: The Public Authority for Special Economic Zones and Free Zones (OPAZ) issued a tender last week for Omani and Saudi firms interested in the implementation of civil, mechanical, electrical, plumbing, and structural work for the port. The dry port will be operated by Oman Investment Authority subsidiary Asyad Group. The tenders are part of the third phase of a SAR 1.2 bn Saudi-funded infrastructure enhancement plan for EZAD.

BACKGROUND- The Saudi Fund for Development inked an agreement back in 2023 to finance the construction of EZAD’s infrastructure for SAR 1.2 bn (c. USD 319.9 mn). Saudi Arabia and Oman previously formed a committee to plan for the development of a new integrated economic zone in Dhahirah over an area of 388 sq km. The first phase of the zone will cover 20 sq km and is expected to boost trade with Saudi Arabia.

REMEMBER-Saudi and Omani business leaders gathered in Muscat earlier this month at the Saudi-Omani Joint Business Forum to increase investments between both countries.

DATA POINTS-

#1- The localization rate of Saudi Arabia’s engineering sector hit 39% in 2024, after surpassing its localization target for the year, Aleqtisadiah quotes Municipalities and Housing Minister spokesperson Seif Al Suwailem as saying. The sector localized 25k engineering and technical jobs in 2024, exceeding its initial target of 16k jobs, with 57k engineers, 105k technicians, and 9.8k women employed by the private sector.

#2- Saudi’s logistics sector attracted SAR 200 bn in private sector investments since the launch of the National Strategy for Transport and Logistics Services in mid-2021, Transport and Logistic Services Minister Saleh Al Jasser told Al Arabiya. The number of operational logistics centers also rose to 23, pushing the Kingdom up 17 places in the World Bank’s logistics index, with the Kingdom targeting 59 centers by 2030.

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THE BIG STORY ABROAD-

It’s shaping up to be a calm morning in international news, with the main focus on the Trump administration’s shift away from traditional EU allies to warmer ties with Russia.

US, EU not on the same page: US President Trump’s meeting with France’s Emmanuel Macron saw the two leaders interrupt each other a few times. Macron insisted Ukraine should be compensated by Russia as the aggressor, and corrected Trump’s statements that Europe “is loaning” the money to Ukraine and will get it back. Meanwhile, Trump said Washington is close to snapping up a share of Kyiv’s natural resources, with Ukrainian President Volodymyr Zelensky visiting in a few days to sign the agreement.

ALSO- Apple announced yesterday it will be investing USD 500 bn in the US over the next four years, in a bid to mitigate the impact of tariffs on its supply chains. Trump confirmed that postponed tariffs on Canada and Mexico “will go forward” when the delay expires next week.

MEANWHILE-

The EU agreed to partially lift sanctions on Syria’s energy sector, including oil exports and energy tech imports. (Bloomberg)
JP Morgan will allocate an additional USD 50 bn for direct lending. (Reuters)

Salic now owns 80% of Singapore’s Olam Agri + Alat acquires 15% of TK Elevator

PIF-backed companies are on a roll, with Salic completing its USD 1.78 bn acquisition of a some 45% stake in Olam Agri. Meanwhile, Alat snapped up a stake in TK Elevator, establishing a JV that will provide manufacturing and training in the Kingdom.

SALIC + OLAM AGRI-

Salic secures majority in Olam Agri Holdings: PIF-backed Salic completed the purchase of an additional 44.6% stake in Singapore’s Olam Agri Holdings for USD 1.78 bn, Olam said in a filing (pdf) to the Singapore Exchange. Salic now owns around 80% of Olam Agri Holdings, with Olam Group set to retain the remaining 20% stake. The agreement also grants the PIF-backed firm the right to exercise a call option and buy up all remaining company shares within the next three years.

Valuation: The transaction values Olam Agri Holdings at USD 4 bn plus additional considerations — that is at a 23% premium to its current market capitalization and a 14% premium to its USD 3.5 bn valuation when Salic first bought a 35.4% stake in the company back in 2022, according to our maths.

ADVISORS- Olam enlisted Rothschild & Co as its lead financial advisor, along with Citigroup Global Markets and the Hongkong and Shanghai Banking Corporation as joint financial advisors for the transaction. WongPartnership provided legal counsel.

ALAT + TK ELEVATOR-

PIF’s tech arm Alat acquired a 15% stake in global vertical transportation player TKElevator(TKE), according to separate statements (here and here). The transaction — set to be finalized by 3Q 2025 subject to regulatory approvals — will see the two companies setting up a USD 160 mn JV for mobility products and solutions, backed by a local product development center. The value of the transaction and the names of selling shareholders were not disclosed.

The new JV will be headquartered in the Kingdom, and will gradually roll out local production of elevators, escalators, and moving walkways for Saudi and wider regional markets. This would mark the first-ever elevator and escalator manufacturing operation in the Kingdom by a global company, the statements said.

What we know so far: Although financial details are scant, the acquisition gives TKE an equity value of some USD 12.6 bn, rising to USD 24.1 bn when taking into account the company’s net debt, Bloomberg reported, citing sources it says are familiar with the matter.

ALSO ON OUR M&A WATCH-

DHL eCommerce snapped up an undisclosed minority stake in local parcel logistics player Ajex, according to a press release. The move comes in a bid to support DHL eCommerce’s “expansion into the rapidly growing Saudi Arabian e-commerce parcel market,” the statement said. DHL eCommerce has also locked in an option to upgrade its holdings in Ajex to a majority stake. No financial ticket or timeline for the transaction were disclosed.

About Ajex: Active since 2021, the outfit offers warehousing, cold chain logistics, and healthcare solutions, while also offering express distribution, e-commerce, and multi modal freight services. Ajax operates in Saudi Arabia, UAE, Bahrain, US, UK, Turkey, South Africa, and China, with upwards of 50 facilities, 900 vehicles, and a 1.5k person team.

FAB, BMI put in their predictions for the Kingdom’s growth prospects in 2025

FAB, BMI have high hopes for the Kingdom’s growth prospects: First Abu Dhabi Bank (FAB) and Fitch Solutions’ research unit BMI penciled in predictions of Saudi Arabia’s economy growing by 4.6% and 4.4%, up from respective estimates of 1.5% and 1.3% growth in 2024, according to FAB’s 2025 Global Investment Outlook report (pdf) and BMI’s Mena Monthly Outlook (pdf). BMI’s projection would place the Kingdom as the second-best performing economy in the GCC, right after the UAE.

Driving the growth: “The non-oil economy will grow by 4.8% in 2025 as the PIF reallocates capital towards domestic projects aligning with Vision 2030 goals, providing a significant boost to investment. Meanwhile, consumers will continue to benefit from structural improvements in the labour market,” BMI said. Echoing a similar view, FAB said that the expansion of the non-oil economy is “the primary driver of real GDP growth” in the Kingdom.

Uncertainty over oil prices poses a risk: A significant dip in energy prices would cut growth by “prompting the extension of Opec+ restrictions beyond 2Q,” BMI said.

The UAE and Saudi Arabia topped FAB’s “country preference,” but the bank said it also remains optimistic about emerging opportunities in Kuwait, Qatar, and Bahrain. For FAB, the “government’s focus on value-added hydrocarbon products, clean energy initiatives and policies supporting the non-oil sector creates a positive outlook for the market.” In addition, the Kingdom's “technology-driven initiatives, spanning digitization, cloud computing, cybersecurity and space systems, continue to propel further growth.”

These predictions are more optimistic than most: The World Bank sees the Kingdom’s economy growing to 3.4% this year, while the IMF has slashed its 2025 growth predictions to 3.2% in its recent World Economic Outlook Update.

ON THE GCC FRONT-

FAB, BMI see growth doubling across the GCC this year: FAB and BMI both penciled in a prediction of growth in the GCC reaching 4.2% in 2025, up from their respective growth estimates of 1.8% and 2.1% last year.

FAB sees the growth being driven by “rising/stable oil prices and enhanced non-oil economic contributions,” with investments in tech, healthcare,financial services, and other sectors in GCC countries — particularly in the UAE and Saudi Arabia — projected to fuel future GDP growth, FAB’s report reads.

FAB’s outlook for the GCC is more optimistic than others: Emirates NBD sees headline growth in the GCC accelerating to 3.5% y-o-y this year. Meanwhile, the World Bank projected 3.4% growth for the bloc this year and 4.1% growth in 2026.

Investors cannot afford to sleep on the GCC: For the region as a whole, a “strategic focus on economic diversification, infrastructure development and technological advancement positions the region as an emerging investment hub,” FAB said, adding that equity investors can unlock significant prospects within the region. “As the GCC continues to evolve, investors will not only need to embrace its complexities, but also recognize the vast potential for growth and long-term rewards,” the report concluded.

Strong relations with Trump could bear economic fruit: “Trump holds good relations with Gulf markets' leaders, with Trump-related organizations heavily invested in Gulf markets like Saudi Arabia, the UAE and Oman. This could possibly materialise in economic and political benefits during his tenure,” according to BMI.

On sectors driving growth in local market, untapped potential in real estate, and shift in investors mix

Saudi Arabia's capital markets are undergoing a period of rapid growth and transformation. We sat down with EFG Hermes’ Head of Research Ahmed Shams El Din (LinkedIn) on the sidelines of the Capital Markets Forum (CMF) 2025 in Riyadh to discuss the future of the Kingdom’s growing markets.

Shams El Din emphasized the role of regulatory reforms, institutional growth, and increasing foreign investment in driving this development. We also discussed the growing importance of M&A as a means to consolidate the market, particularly in the real estate sector.

Edited excerpts from our conversation:

Positive outlook on the Saudi market: We are really optimistic about the Saudi market right now. The Saudi economy is performing well, thanks to diversification efforts. Growth in the non-oil sector, driven largely by population growth and tourism, is exceeding our expectations. This has had a positive impact on the equity market, with increased demand and employment fueling this progress.

Increased foreign + institutional investment: Foreign investors now account for about 15% of daily transactions on the exchange, which is a big improvement. Ten years ago, retail investors dominated the market, making up 95% of turnover. Today, institutional investors represent around 25-30% of the market, which is a huge shift. This increase in institutional participation makes the market more efficient and liquid, and it's a result of regulatory reforms and increased openness to foreign investors. Saudi Arabia’s upgrades to MSCI and FTSE emerging market indices and the restructuring of the domestic asset management industry have all contributed to this positive change.

The sectors driving growth: The population boom has been a major factor in the rally of consumer stocks and the broader financial sector. Healthcare and ins. are also showing positive trends, thanks to ongoing regulatory reforms. Recently, the real estate and hospitality sectors have started to see growth, driven by significant activity in these areas.

Regulatory reforms in real estate: There have been some important regulatory changes in the real estate sector. Developers can now plan sales more easily, and foreigners can buy stocks in companies operating in Makkah and Madinah, which has created a positive sentiment around these stocks. More regulatory improvements are expected, such as changes to mortgage laws and better relations between buyers and developers, particularly in off-plan sales. This is a new concept for Saudi Arabia, as the market used to be dominated by land sales and cash-based transactions. The introduction of master-planned communities is giving buyers more financing options beyond traditional mortgages.

The next big thing for the real estate sector: One key development in the real sector would be to allow foreigners, particularly non-residents, to buy property directly, similar to the case in cities like Dubai. Currently, non-Saudis can buy property in selective cases, but must sell it back to a Saudi if they leave the country. Allowing foreigners to buy directly could create a more active secondary market, which is essential for boosting liquidity. This move would mirror what happened in Abu Dhabi, where relaxed regulations have led to a significant rise in unit sales, and it's something we expect to happen in the Kingdom as well. The real estate sector is set for even more growth, with many IPOs expected in the sector.

Supply and demand imbalance: While the demand is there, the supply side is still fragmented. There are a few established developers like Tadawul-listed Retal, but the focus on master-planned community development has only emerged recently. Larger conglomerates, such as Al Akaria, are involved in various sectors but haven’t focused much on community development.

The need for M&A and consolidation: The real challenge for developers is access to prime land, much of which is held by government entities or wealthy families. Smaller developers often lack the financial resources or access to land to capitalize on demand. To overcome this, consolidation will be necessary, reducing the number of small players and creating a few major companies with the financial muscle to drive large-scale developments. As the market becomes more sophisticated, having strong balance sheets will be crucial for developers. Partnerships with other developers, the government, and institutions like Roshn and the National Housing Company will also become increasingly important.

The booming construction and hospitality sectors: The Saudi construction and hospitality sectors are also poised for strong growth, with the region’s construction project backlog close to USD 500 bn, more than 50% of it in the Kingdom. Despite potential delays, there are substantial prospects for contractors, especially as the country’s fast-paced development continues. The competitive landscape is encouraging, and we expect more contractors to list their companies, which will deepen the market and boost investor sentiment.

Shift toward bottom-up funding: Traditionally, Saudi Arabia’s economy has been supported by top-down funding, with oil revenues and the Public Investment Fund (PIF) investing in key sectors. However, as oil prices fluctuate, there’s a shift toward bottom-up funding. This means developing a more active secondary market for private debt and encouraging individual investors and family offices to fund startups and other economic ventures. This could be a key chance for the fintech sector, which we’re very excited about. We expect to see more investments, from peer-to-peer lending to investment funds and ETFs.

Al Ahsa Forum 2025 unveils SAR 50 bn in investment prospects

The Al Ahsa Forum 2025 wrapped up last week, showcasing 59 investment prospects worth some SAR 50 bn and facilitating 29 cooperation agreements across tourism, real estate, transportation, logistics, manufacturing, and agriculture, according to a statement.

The forum concluded with a set of recommendations, including a collaboration with Saudi Aramco to develop a localization program and to qualify companies linked to Al Jafurah, according to a post on X. Also on the cards are collaborations to develop a logistics zone in the province, an industrial incubator, tourism marketing, business models for oasis agriculture, and the expansion of industrial cities.

What’s next for Al Ahsa? The Energy ministry plans to tender an integrated gas and LNG storage facility in Al Ahsa, with projected annual sales of 2 mn barrels by 2030, Assistant Minister of Energy for Petroleum and Gas Affairs Mohammed Al-Ibrahim said.

REMEMBER- The Al Jafurah gas field development project, Al Ahsa’s mega energy endeavor, is also set to see total investments exceeding USD 100 bn over the next 15 years, aiming to contribute USD 23 bn annually to Saudi Arabia’s GDP.

Al Ahsa by the numbers: Foreign investment licenses in the region have reached 183, with total investments surpassing SAR 2.5 bn. Al Ahsa also accounted for 12% of the Kingdom’s agricultural GDP in 2024, valued at USD 29.9 bn, and became the first Saudi region to achieve full water sustainability.

Air traffic up 15% in 2024 + Saudia has lowest complaint rate in January

Air traffic across Saudi airports increased 15% y-o-y to 128 mn passengers in 2024, according to Gaca’s air traffic report (pdf). The Kingdom’s airports also saw 11% y-o-y growth in flight numbers to 905k during the same period, with a 16% y-o-y rise in air connectivity to 170 global destinations.

The breakdown: KSA’s four main airports accounted for 82% of total air traffic, with the following passenger distributions:

Jeddah’s King Abdulaziz International Airport handled 49.1 mn passengers — the highest among all airports — accounting for 38% of all total passengers in Saudi air traffic. This amounts to 98% of the airport’s total capacity of roughly 50 mn passengers.
Riyadh’s King Khalid International Airport handled the second most passengers at nearly 38 mn, at roughly 29% of total passengers. This makes up 96.4% of the airport’s capacity of 39 mn passengers.
Dammam’s King Fahd International Airport came in third place, handling almost 13 mn passengers, or around 10% of total passengers. The airport utilized 101% of its capacity, exceeding the total capacity of 12.6 mn passengers.
Medina’s Prince Mohammad bin Abdulaziz International Airport handled 11 mn passengers, or around 9% of total passengers. The airport utilized 122% of its 9 mn passenger capacity.

As for air cargo: Saudi airports recorded a 34% y-o-y boost in air cargo, reaching 1.2 mn tons in 2024, with 1.17 mn tons handled by the Kingdom’s largest-three airports. King Khalid International Airport handled 573k tons, while King Abdulaziz International Airport handled 461k tons, and King Fahd International Airport handled 140k tons.

COMPLAINTS IN JANUARY-

Air carrier complaints rose 5.4% y-o-y in January 2025 to around 1.5k, up from 1.4k in the same period last year, according to our own calculations based on a report from Gaca. Meanwhile, airport complaints increased 19% y-o-y during the same month to 129.

Saudia Airlines achieved the lowest complaint rate in January, with 26 complaints registered per 100k passengers, compared to last year’s 29. Flynas came in second with 32 complaints registered per 100k passengers, up from last year’s 21 complaints. Flyadeal landed in third place, reporting 37 complaints per 100k passengers, down from 51 last year.

Three-way tie for airports: Among international airports handling upwards of 6 mn passengers annually, a three-way tie saw King Khaled International Airport, Prince Mohammed International Airport, and King Abdulaziz International Airport all report one complaint per 100k passengers each. King Abdulaziz had the highest actual number of actual complaints, at 41.

For international airports handling less than 6 mn passengers annually, Taif International Airport and Prince Sultan International Airport both reported one complaint per 100k passengers, the lowest for the month. Najran International Airport logged six complaints per 100k passengers, the highest among the group.

ALSO- Aviation joins the digital push: Gaca has launched Ajwa, a digital platform to streamline services, enhance efficiency, and foster a comprehensive digital environment in the aviation sector, it said in a post on X.

ADES, Nadec, Lumi, and Yansab report full-year earnings

ADES HOLDING-

Egypt-born Ades Holding’s net income was up 80.5% y-o-y to SAR 816.2 mn in 2024 on the back of solid EBITDA gains and lower financing costs relative to revenue, it said in an earnings release (pdf). Revenues also rose 43.1% to SAR 6.2 bn over the same period, driven by expansion in offshore activities in Saudi Arabia and new rig deployments in India and Indonesia.

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Looking ahead: The company is optimistic about industry trends, anticipating higher incomes from active tendering in key regions such as Southeast Asia, the Middle East, and West Africa. Despite “ongoing global economic uncertainties” the firm’s strategic focus is doubling down on “long-term fundamentals, operational agility, and financial discipline” in a bid to capitalize on new prospects, the release said.

ALSO- Ades Holding’s BoD is distributing SAR 242.2 mn in interim dividends for 2H 2024 at SAR 0.22 apiece, it said in a disclosure to Tadawul. Distribution is scheduled for Monday, 24 March 2025.

Ades’ Saudi operations account for 60% of its revenue in 2024, while global markets accounted for 23%, CEO Mohamed Farouk told Al Arabiya. The company is currently participating in 60 global tenders as it looks to increase its market share in the offshore drilling sector, Farouk added.

NADEC-

Agri-food giant National Agricultural Development Company (Nadec)’s net income grew 156.5% y-o-y at SAR 774.6 mn in FY2024, it said in an earnings release (pdf). The growth came on the back of SAR 103.2 mn in gains from selling its shares in Arabian Mills IPO and SAR 253.3 mn in fair value gain on its remaining shares, the release said.

Meanwhile, revenues inched up 0.7% to SAR 3.2 bn over the same period, driven by sales from the new protein segment, which were partially offset by declines in the dairy, beverages and agriculture segments.

YANSAB-

Yanbu National Petrochemical Co. (YANSAB) is back in the black with a net income of SAR 420.3 mn in 2024, rebounding from a SAR 485.1 mn loss in 2023, according to an earnings release (pdf). The rebound was fueled by higher production and sales, as well as higher average prices that offset a rise in the prices of production inputs. Meanwhile, revenues were up 36% over the same period at SAR 6.16 bn.

Why the uptick? The company’s performance in 2023 was affected by scheduled preventive maintenance from 10 January to 2 March, and temporary shutdowns announced on August 21 and 4 September.

LUMI RENTAL-

Lumi Rental’s net income grew 12.3% y-o-y to SAR 180.3 mn in FY 2024, despite higher financing costs from rising interest rates and borrowings, it said in an earnings release (pdf). Meanwhile, revenues were up 40.2% at SAR 1.55 bn over the same period due to gains across all business segments.

The bottom line nearly doubled in 4Q: Net income rose 93% y-o-y in 4Q 2024 to SAR 49 mn, the release said. Meanwhile, revenues were up 28% y-o-y at SAR 402 mn driven by solid performance across all segments.

Al Babtain closes SAR 622 mn transmission towers contract

INFRASTRUCTURE-

#1- Al-Babtain Power and Telecom inked a SAR 622 mn contract to supply steel overhead transmission towers to Saudi Services for Electro Mechanical Works for the third portion of the 500 kV LCC HVDC overhead transmission line for the COA-SOA Interconnection Link, according to a disclosure to Tadawul. The 24-month contract includes design, testing, manufacturing, and supply.

Al-Babtain has been busy: Earlier this month, Al Babtain Power and Telecom signed a SAR 390 mn contract with Larsen & Toubro to supply steel towers for the 500kV COA-SOA interconnection line. The company also secured a SAR 777.2 mn contract with Hyundai Engineering and Construction (Hyundai E&C) in November to supply 500kV HVDC overhead transmission lines.

#2- PIF-owned National Water Company (NWC) launched 4 projects worth a combined SAR 323 mn in the Taif governorate, it said in a statement. The water and environmental projects included an 18 km sewage transmission line worth upwards of SAR 202.3 mn, a SAR 65.7 mn reservoir with a 100k cubic meter capacity, and two sewage feeder lines networks — a 34.8 km network worth over SAR 36.5 mn and a 16.5 km network that costs over SAR 19.1 mn.

ICYMI- NWC rolled out 20 projects in Jazan last month valued at SAR 607 mn, featuring 10 water infrastructure initiatives costing SAR 238 mn, such as raw water intake at Jazan Valley Dam and network expansions. In December, the company launched water and sanitation projects worth SAR 11.6 bn across the Kingdom’s Aseer, Qassim, and Al Baha provinces.

INVESTMENT WATCH-

MIS divests from OpenAI stake with USD 3.4 mn gain: Tadawul-listed Al Moammar Information Systems (MIS) fully exited its investment in ChatGPT-owner OpenAI, selling its entire stake for USD 8.4 mn, it said in a disclosure to the exchange. The identity of the buyer was not disclosed. The transaction — executed at a USD 3.4 mn gain on the tech firm’s initial USD 5 mn investment — will be reflected in MIS’s 1Q results.

The rationale: The divestment is in line with the company’s broader strategy to reallocate capital into new investments, like its newly-set-up SAR 40 mn AI fund.

FOOD-

Balady Poultry awards EUR 7 mn contract for poultry waste treatment to Harslev: Balady Poultry Trading Co. has contracted Danish poultry waste treatment firm Harslev to supply and install solid waste treatment lines for its new slaughterhouse and meat factory under a EUR 7 mn contract, it said in a disclosure to Tadawul. The 60-week contract covers waste treatment for 500k birds per day.

REMEMBER- The slaughterhouse and meat factory are part of a SAR 1.1 bn expansion plan laid out by Balady Poultry earlier this month to boost its poultry production over five years. The plan also includes 600 broiler chicken coops and two hatcheries with an annual capacity of 100 mn sauces each.

STARTUP WATCH-

Bahrain-based cake-ordering app Lola raised USD 1.3 mn in a pre-seed investment round in partnership with Vision Ventures, Plus VC, and unnamed strategic angel investors, according to a press release. The funds will support the startup's expansion into Jeddah, the Eastern Province, and other GCC markets, following successful launches in Riyadh and the UAE. Proceeds from the round will also go towards improving the startup’s platform, recruitment, and improving logistics.

It’s Qatar’s turn to stake its claim in global finance

Qatar wants a slice of the cake: It’s Qatar’s turn to stake its claim in global finance, as its sovereign wealth fund pours capital into firms, drawing financiers to set up shop in Doha in exchange for backing, the Financial Times writes.

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The Qatar Investment Authority (QIA) has already committed nearly half of its USD 1 bn fund-of-funds to attract VCs, aiming to turn the country into a regional VC hub. “There is a different level of engagement when [the partners] are prepared to invest into the country and help diversify your own economy,” said Mohsin Pirzada, head of funds at the QIA.

The Gulf state is following in the footsteps of its regional rivals, Saudi Arabia and Abu Dhabi, which have used their sovereign wealth funds to bring global finance players into their markets. Saudi Arabia’s Public Investment Fund and BlackRock launched BlackRock Riyadh Investment Management last year after the PIF committed USD 5 bn to BlackRock and Abu Dhabi has become a magnet for hedge funds and asset managers like Brevan Howard and PGIM.

Now, Qatar’s making its own push — backing six VC firms so far, including Builders VC and B Capital. Two have already opened offices in Doha, while the others are finalizing their move.

Qatar isn’t just looking at venture capital — it also wants private equity-backed companies to set up shop. “If these underlying companies want to expand into the Middle East, then we would roll out the red carpet and say, consider Doha as a choice,” Pirzada said.

Qatar’s latest play for venture capital aligns with other Gulf nation’s ambitions to diversify their economies, with Pirzada calling the intra-regional competition to attract fund managers “healthy.”

MARKETS THIS MORNING-

Asian markets are broadly in the red in early trading this morning — Japan’s Nikkei is down 1%, the Shanghai Composite is looking at losses of 0.5%, the Hang Seng is down 1.9%, and the Kospi is down 0.2%.

TASI	12,319	-0.6% (YTD: +2.4%)
MSCI Tadawul 30	1,545	-0.4% (YTD: +2.4%)
NomuC	31,398	-0.2% (YTD: -0.3%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	30,925	-0.3% (YTD: +4.0%)
ADX	9,595	-0.2% (YTD: +1.9%)
DFM	5,335	-0.5% (YTD: +3.4%)
S&P 500	5,983	-0.5% (YTD: +1.7%)
FTSE 100	8,659	0.0% (YTD: +6.0%)
Euro Stoxx 50	5,454	-0.4% (YTD: +11.4%)
Brent crude	USD 74.88	+0.6%
Natural gas (Nymex)	USD 3.99	-5.7%
Gold	USD 2,969	+0.5%
BTC	USD 93,246	-2.7% (YTD: +0.1%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.6% yesterday on turnover of SAR 7 bn. The index is up 2.4% YTD.

In the green: Lumi (+4.4%), ANB (+3.0%) and Ades (+2.8%).

In the red: Chubb (-7.6%), Nadec (-5.6%) and APC (-5.4%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.2% yesterday on turnover of SAR 43.3 mn. The index is down 0.3% YTD.

In the green: Tharwah (+6.0%), Leaf (+5.9%) and Rawasi (+5.7%).

In the red: Fadeco (-8.5%), Sama Water (-6.5%) and iOud (-6.5%).

CORPORATE ACTIONS-

Gulf Union Alahlia Cooperative Ins. received the green light from the CMA to increase its capital to SAR 687.2 mn, up from SAR 458.9 mn, by issuing 22.8 mn shares to merge Gulf General Cooperative Ins. assets and liabilities into Gulf Union Alahlia Cooperative Ins. via a securities exchange offer, the CMA said in a statement. The move is still pending approval from Gulf Union Alahlia’s shareholders.

CALENDAR

EVENTS WITH NO SET DATE

1Q: BinDawood Holding expected to close 100% acquisition of Zahrat Al Rawdah Pharma.

FEBRUARY

23-27 February (Sunday-Thursday): Riyadh International Disputes Week, Hilton Riyadh Hotel Granada.

24 February (Monday): Public Sector Excellence Forum, Movenpick Hotel & Residence Riyadh.

24-25 February (Monday-Tuesday): The Riyadh International Humanitarian Forum, Riyadh.

24-25 February (Monday-Tuesday): Aerospace Connect Forum, Jeddah.

24-27 February (Monday-Thursday): Week two of Big 5 Construct Saudi, Riyadh Front Exhibition & Conference Center.

MARCH

1-30 March: Ramadan (TBC).

18-19 March (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.

31 March- 3 April (Monday-Thursday): Eid Al Fitr (TBC).

31 March (Monday): Deadline for applying to theReal Estate General Authority’s Regulatory Sandbox Program.

31 March (Monday): Deadline for applying to the World Intellectual Property Organization (WIPO) Global Awards 2025

APRIL

7-9 April (Monday-Wednesday): Sports Investment Forum (SIF), Riyadh.

3-20 April (Thursday-Sunday): AFC Asian U17 Cup.

13-14 April (Sunday-Monday): Human Capability Initiative (HCI) Conference, King Abdulaziz International Conference Center, Riyadh.

13-16 April (Sunday-Wednesday): EdgeX HCI, The Ritz Carlton, Riyadh.

14-16 April (Monday-Wednesday): Future Hospitality Summit, Mandarin Oriental Al Faisaliah, Riyadh.

18-20 April (Friday-Sunday): Saudi Arabian Grand Prix, Jeddah,

21-24 April (Monday-Thursday): Saudi Food Exhibition and Conference, Riyadh.

22-23 April (Tuesday-Wednesday): AAM Middle East, Riyadh.

23-25 April (Wednesday-Friday): Construction and Real Estate Development Exhibition, Jazan.

25 April- 4 May (Friday-Sunday): AFC Champions League Elite Finals

MAY

May: The World Intellectual Property Organization (WIPO) Global Awards 2025 announces its results.

6-7 May (Tuesday-Wednesday): Federal Open Market Committee meeting.

12-15 May (Monday-Thursday): Saudi Smart Manufacturing, Riyadh International Convention & Exhibition Center.

13-14 May (Tuesday-Wednesday): Global EV & Mobility Technology Forum, The Arena, Riyadh.

19-20 May (Monday-Tuesday): Tech-ecO-System Summit (ToSS), Riyadh.

23 May (Friday): Guns N’ Roses Show, Riyadh.

31 May-5 June (Saturday-Thursday): Hajj.

JUNE

6-9 June ( Friday-Monday): Eid Al Adha.

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

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

30 June (Monday): Deadline for Cancellation of Fines and Exemption of Financial Penalties Initiative by the Zakat, Tax and Customs Authority (Zatca).

JULY

July: The World Intellectual Property Organization (WIPO) Global Awards 2025 awards ceremony, Geneva.

31 July (Thursday): Deadline for companies with SAR 2.5 mn or more in 2022/2023 revenues to integrate e-invoicing solutions with Fatoora.

29-30 July (Tuesday-Wednesday): Federal Open Market Committee meeting.

AUGUST

5-17 August (Tuesday-Sunday): Fiba Asian Cup.

SEPTEMBER

15-17 September (Sunday-Tuesday): Money 20/20 Middle East, Riyadh.

17-18 September (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.

23 September (Tuesday): Saudi National Day.

OCTOBER

28-29 October (Tuesday-Wednesday): Federal Open Market Committee meeting.

NOVEMBER

3-9 November (Monday- Sunday): WTA Tour Finals.

24-26 November (Monday-Wednesday) The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh Front Convention & Exhibition Centre, Riyadh.

27-30 November (Thursday-Sunday): The World Rally Championship (WRC), Jeddah.

DECEMBER

1-4 December (Monday-Thursday): International Conference on Nuclear Emergencies, Riyadh.

4-13 December (Thursday-Saturday): Red Sea International Film Festval, Jeddah.

December: The Fortune Global Forum 2025, Riyadh.

9-10 December (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.

2026

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

8-12 February (Sunday-Thursday): World Defense Show, Riyadh.

26-29 October (Monday-Thursday): World Energy Congress, Riyadh.

2027

The World Water Forum takes place in Riyadh.

The Ocean Race finishes in Amaala on the Red Sea.

Riyadh-Kudmi transmission line to be completed.

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