Flynas IPO fully subscribed within minutes. PLUS: PIF launches AI powerhouse HUMAIN

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Opec+ hikes to bolster Aramco cashflow -Nasser

Good morning. Today’s issue is a calm one before the news storm anticipated tomorrow. This morning’s news well features with a handful of IPO updated from Flynas and Asas Makeen, a new PIF company for AI infrastructure and investments, and the usual flurry of 1Q earnings.

HAPPENING TODAY- The President of the United States will be landing in Riyadh today with a packed agenda, joined by Secretary of State Marco Rubio, Pentagon chief Pete Hegseth, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick.

Trump will meet with Crown Prince and Prime Minister Mohammed bin Salman to talk security, energy, trade, investments and regional issues. Major defense agreements are also on the cards, including potential sales of F-15 or F-35 fighter jets, Al Arabiya reported.

ALSO- The GCC-US summit is scheduled during the visit, with Riyadh extending invitations to leaders in Kuwait, Oman, and Bahrain. The summit is reportedly set to focus on topics including investment, arms transfers, and AI, in addition to regional issues like the Israeli-Palestinian conflict and the Iran-US negotiations over Tehran’s nuclear program

AND- The Saudi-US Investment Forum will see a host of government and business figures speak, including Energy Minister Prince Abduaziz bin Salman, Boeing CEO Kelly Ortberg, and FIFA President Gianni Infantino, among others.

Discussions will cover key sectors including energy, financial services, AI and tech, manufacturing, defense, healthcare, and venture capital. Executives from Blackrock, Citigroup, Alphabet and IBM are reportedly set to attend the event.

IN CONTEXT- Riyadh announced a potential USD 600 bn investment package earlier this year, which Trump hopes to raise to USD 1 tn. The Kingdom reportedly plans to leverage Trump’s visit to hit its foreign direct investment target of securing over USD 100 bn annually by 2030, about five times more than last year’s total.

We have the rundown of what’s at stake from Trump’s visit — including trade and investment agreements, rumored meetings with Syrian and Palestinian leaders, and the potential easing of AI exports — here.

WEATHER- Expect dust and limited visibility today in Riyadh, the Eastern Province, Madinah, Qassim, and Hail, with near-zero visibility possible in Tabuk, Al-Jawf, and the Northern Borders. Hail and active winds are forecast for Najran, Jazan, Asir, Al-Baha, and southern Makkah.

Riyadh is expected to see a high of 42°C and a low of 28°C today, while Jeddah’s mercury will go as high as 34°C and as low as 26°C. Makkah will see a 44°C high and 27°C low.

WATCH THIS SPACE-

#1- Opec+ production hikes could generate an extra USD 1.9 bn in annual cashflow for Aramco at USD 60 per barrel, Asharq Business quoted CEO Amin Nasser as saying in a post-earnings conference call yesterday. Aramco can quickly and efficiently boost crude oil production to 12 mn barrels per day (bpd) at minimal extra cost, with each mn bpd of spare capacity potentially generating USD 12 bn in operating cashflows at 2024 prices, Nasser added.

The rationale: Global oil demand hit a record 104.3 mn bpd In 1Q 2025, up by 1.7 mn barrels from the same period last year, with refining also reaching record levels. Meanwhile, non-Opec production has slowed, and global crude inventories dropped to their lowest in five years, with crude oil cover at around 40 days by the end of 1Q 2025, Nasser said.

Reuters also had the story.

#2- Tadawul-listed Saudi Awwal Bank (SAB) plans to issue USD-denominated additional tier-one (AT1) sukuk as part of its USD 5 bn additional Tier 1 Capital Sukuk Programme to shore up its capital base, according to a disclosure to Tadawul. The amount and terms of the offer will be determined based on market conditions.

SOUND SMART- Additional AT1 sukuk are Shariah-compliant bonds that banks issue to boost their capital. This type of sukuk doesn’t have a set maturity date — meaning they can last forever unless the bank decides to buy them back.

ADVISORS- Our friends at HSBC are joint lead managers on the transaction, alongside Merrill Lynch International, Citigroup Global Markets, J.P. Morgan Securities, Kamco Investment Company, Mizuho International, Standard Chartered Bank, Warba Bank.

#3- Tawuniya will become a cornerstone investor in SMC: Specialized Medical Company (SMC) entered into a binding agreement with the Company for Cooperative Insurance (Tawuniya) to subscribe as a cornerstone investor in SMC's IPO on main market Tadawul, according to a press release (pdf). Tawuniya will subscribe to 5.88 mn shares of the offer shares (good for 2.4% of SMC’s share capital after the offering).

ICYMI- SMC’s institutional offering sold out within hours of opening on Sunday, with demand clearing the book across the full price range citing terms it has seen. The private healthcare provider is guiding on a price range of SAR 24-25 per share for its IPO, which will see it put a 30% stake on offer in a secondary share sale.

ADVISORS- Our friends at EFG Hermes are quarterbacking the transaction as joint financial advisors, underwriters, and bookrunners, alongside SNB Capital. SNB Capital is also serving as lead manager, with White & Case providing counsel to the issuer. Receiving agents include Al Rajhi Capital, BSF Capital, Alinma Investment, and Riyad Capital, among others.

#4- EFG Hermes aims to complete the second closing of its Saudi Education Fund (SEF) at USD 170 mn this summer, co-CEO of Investment Banking Karim Moussa told Asharq Business. SEF secured USD 130 mn in November from Gulf-based institutional investors and family offices, targeting the growing demand for private education in Saudi Arabia.

Through the USD 300 mn fund, EFG seeks to build a regional K-12 education operator. The fund aims to deploy USD 300 mn over the next three years with a primary focus on the Kingdom, alongside its ventures in the UAE and Bahrain, Egypt Education Platform (EEP) CEO Ahmed Wahby said.

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THE BIG STORY ABROAD-

Hamas released Israeli-American Edan Alexander from captivity yesterday during a brief halt of hostilities that ended later in the day. The release — framed as “a gesture of goodwill” towards the Trump administration — is widely expected to revitalize ceasefire talks, with Israel planning to send a delegation to Doha on Thursday.

A ceasefire is crucial for Gaza: The complete blockade on food and medicine by Israel for more than 70 days sent hundreds of thousands starving, pushing the enclave to the brink of full-blown famine, a UN panel said yesterday.

ALSO IN THE REGION- Kurdish separatist group PKK decided to disarm and disband, after four decades of fighting for autonomy from Turkey. The end of the conflict is expected to bolster Ankara’s ambitions in the region and free up resources to rebuild Syria’s military and civilian infrastructure.

OVER IN BUSINESS- The US and China have agreed to a 90-day pause to their trade war after two days of talks in Geneva. We have the details on this in today’s Planet Finance.

CIRCLE YOUR CALENDAR-

The Hail Investment Forum will be held on 17 May in Al Roshan Expo, bringing together over 42 local and international speakers and 1k investors and government officials to explore more than 125 investment options. The event will feature six discussion panels on key sectors like tourism, logistics, real estate, and sustainability.

TheAseer Investment Forum will take place between 27-28 May in King Khalid University in Al Fara in Abha, bringing together over 700 local and international investors to explore prospects in tourism, hospitality, agriculture, culture, sports, and food. The event will feature panel discussions, workshops, and presentations.

Flynas sets IPO price range at SAR 76-80 per share

Low-cost carrier Flynas saw its IPO fully covered within minutes of opening the bookbuilding process, signaling strong investor appetite for Saudi equities — even as global markets wobble, Bloomberg reports, citing terms it says it had seen. Flynas is offloading 51.26 mn shares at SAR 76-80 apiece, according to a statement by the airline (pdf).

Market cap + proceeds: At the top of the range, the company could raise up to USD 4.1 bn, and it would give it a market cap of up to SAR 13.7 bn at listing.

Where will the money go? Net proceeds of two share blocks — 8.32 mn treasury shares (5.42% of the company) and 3.95 mn existing shares (2.58%) — will go to fund the company’s employee incentive program. The remainder of the 33.83 mn existing shares (excluding the 3.95 mn earmarked for employee incentives) will be shared among the selling shareholders based on their ownership stakes. The two blocks comprise a total of 66% of net proceeds.

MEANWHILE- Proceeds from newly issued shares — 34% of net proceeds — will go to the company to help fund its growth plans and general business needs.

Why it matters: If successful, Flynas would be the first Gulf airline to go public in nearly two decades — ahead of a much-anticipated IPO by Etihad Airways, expected to hit the Abu Dhabi Exchange later this year. Proceeds from the listing will help Flynas expand its fleet and roll out new hubs across the kingdom.

What’s next: Bookbuilding for institutional investors wraps on 18 May. The retail tranche will follow shortly after.

ADVISORS- Goldman Sachs Saudi Arabia, BSF Capital, and Morgan Stanley Saudi Arabia are joint financial advisors and underwriters. BSF Capital is also serving as lead manager. Bookrunners include Emirates NBD Capital KSA, Goldman Sachs Saudi Arabia, Al Rajhi Capital, BSF Capital, Citigroup Saudi Arabia, ANB capital, and Morgan Stanley Saudi Arabia. Receiving agents include BSF Capital, Al Rajhi Capital, SNB Capital, and Riyad Capital, among others.

OTHER IPOS IN THE PIPELINE-

Specialized Medical Company (SMC)’s institutional offering sold out within hours of opening ;
United Carton Industries’ IPO two-day retail subscription window closes today;
Companies that have yet to move to the step beyond receiving CMA approval include: Ejada Systems, Marketing Home Group, Sport Clubs Company, and Dar Al Majed ;
Companies that tapped banks for potential IPOs include: The PIF’s Saudi Global Ports, Tabreed District Cooling, Medical procurement firm Nupco, Riyad Capital, and BNPL platform Tabby ;

PIF launches AI powerhouse HUMAIN + Wyld VC to launch a USD 50 mn fund for AI startups

The anticipated boost in the tech sector — on the back of The Donald’s visit today — is already starting to take shape, with the launch of a new PIF company dedicated to AI infrastructure and investments, and a planned USD 50 mn fund from Wyld VC to support startups in the region and abroad.

#1- The Public Investment Fund launched HUMAIN, a “global AI powerhouse”, according to a statement. The newly-launched company will operate and invest across the entire AI value chain, in a bid to boost local and global AI capabilities.

What we know: HUMAIN’s offerings include “next-generation data centers, AI infrastructure and cloud capabilities,” in addition to multimodal Arabic large language models, the statement read. The company will also streamline data center initiatives and procure hardware. No further operational or investment details were disclosed.

REMEMBER- The Kingdom has been ramping up its data center capacity: The Kingdom is planning a USD 100 bn AI project to rival the UAE as a technological hub, although details are scant. Leap 25 recently saw a flurry of investments in data centers, including USD 1.4 bn investment from Alfanar for four data centers, as well as a USD 5 bn agreement between DataVolt and Neom to set up a fully sustainable AI data center with an initial capacity of 300 MW capacity, eventually ramped up to 1.5 GW.

#2- Saudi-based Wyld VC plans to launch a USD 50 mn fund to invest in AI startups across the Middle East and the San Francisco Bay Area, according to a press release (pdf). The venture capital firm will focus on early-stage companies, aiming to connect startups in countries such as Saudi Arabia with US talent and resources, Bloomberg reports, citing founder Tala Hasan Al Jabri. The fund is backed by several investors from New York and Silicon Valley.

The fund's first investments are expected to close shortly after US President Trump’s visit to theMiddle East, which is anticipated to boost momentum in the sector. The visit is expected to include discussions on AI infrastructure, with the current administration reportedly preparing to ease the previous administration’s restrictions on exports of advanced AI chips.

Wyld VC is backed by the family office of Lawrence Golub, the b'naire CEO of Golub Capital. The firm is headquartered in Saudi Arabia, with plans to expand into the UAE and Silicon Valley.

Asas Makeen prices Nomu IPO at SAR 80 apiece

Asas Makeen for Development and Real Estate Investment priced its Nomu IPO — which will see it float 10% of its capital — at SAR 80 apiece, according to a disclosure to Tadawul. This could see the company raise SAR 80 mn in proceeds, and give it a market cap of SAR 800 mn at listing, according to our calculations.

It's a secondary share sale: All shares offered will be sold by the company’s current shareholders, meaning Asas Makeen will not receive any proceeds from the offering. Some SAR 4 mn will be deducted from the proceeds to cover transaction-related expenses.

Happening next week: The IPO subscription period will run between 19-25 May, with the minimum subscription set at 10 shares per qualified investor and the maximum at c. 500k shares. The final allocation will be announced by 28 May, while the final offer price is yet to be disclosed.

ADVISORS- Yaqeen Capital is acting as lead manager and financial advisor on the transaction, while RSM is the auditor. Receiving agents include Alistithmar Capital, Alinma Capital, SNB Capital, Aljazira Capital, Riyad Capital, ANB Capital, Derayah, Alrajhi Capital, BSF Capital, SAB Invest, AlKhabeer Capital, Sahm, and GIB Capital.

OTHER NOMU IPOs TO WATCH FOR IN 2025:

Hawiya Auctions priced its Nomu IPO of a 12% stake at SAR 13 per share. The real estate marketing company stands to rake in SAR 31.2 mn in proceeds;
Al Khaldi Logistics, Multi-sector operator Anmat, IT company Axelerated Solutions, restaurant operator Al Kuzama Trading, and school operator Dome International were the latest to issue prospectuses for the move;
Meanwhile, Qudra for Communications and IT, the National Signage Industrial Company, Naf for Feed Industry, medical equipment supplier Wajd, and property developer Hammad Mohammed Bin Saedan Real Estate were given the CMA’s all-clear to list on the parallel market.

Investment funds’ AUM rose 25.2% y-o-y to SAR 699.1 bn in 4Q 2024

Total assets under management (AUM) by public and private investment funds in Saudi increased by 25.2% y-o-y to SAR 699.1 bn in 4Q 2024, according to the Capital Market Authority’s quarterly statistical bulletin (pdf). The total number of funds operating in the Kingdom reached over 1.5k this quarter, with private funds amounting to some 1.2k of the total.

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Public fund assets rose 42.3% y-o-y to SAR 174.5 bn in 4Q 2024, reflecting a 9% increase q-o-q. Money market instruments were the largest asset category held by public funds, reaching SAR 48.9 bn, up 59.8% y-o-y, followed by equities at SAR 44.8 bn (up 58.7% y-o-y), real estate investment trusts (REITs) at SAR 29.3 bn (up 5.7%), and debt instruments at SAR 23.6 bn (up 2.4%).

Local assets held by public funds rose 42.9% y-o-y to SAR 144.6 bn in Q4 2024, while foreign assets grew by 39.6% to SAR 29.9 bn. The number of Saudi public funds rose to 325, marking an 11.7% increase from 291 in Q4 2023. Meanwhile, the total number of public fund subscribers expanded by 45.5% y-o-y, reaching 1.6 mn.

Saudi Arabia’s asset management industry surpassed SAR 1 tn in total AUM in 2024. Private funds, mainly focused on real estate and equities, hold about half of the industry’s AUM, followed by discretionary portfolio management and public funds. Meanwhile, the Public Investment Fund (PIF) is looking to hit SAR 4 tn in AUM by 2025.

On the private side: Private fund assets rose 20.4% y-o-y to SAR 524.6 bn in 4Q 2024, reflecting a 4.9% q-o-q increase. Real estate funds were the largest segment, with assets totalling SAR 233 bn, followed by equities at SAR 196.1 bn. The number of private funds operating in the Kingdom reached over 1.2k — up 23.1% from 994 in 4Q 2023. Meanwhile, the number of subscribers in private funds surged 64.9% y-o-y to 152.4k.

Kilow raises USD 2.5 mn in seed round

Homegrown digital health startup Kilow secured USD 2.5 mn in a seed funding round led by Sanabil Investments’ subsidiary Sanabil Venture Studio in partnership with Stryber, according to a press release.

Use of proceeds: The funding will support the expansion of Kilow’s AI-powered weight management platform with plans to roll out new features and enhance user experience via AI-driven insights and smart health analytics.

About Kilow: Founded in 2024, Kilow offers an AI-enabled weight management solution that combines GLP-1 medication, personalized lifestyle programs, and on-demand support. The platform integrates medical consultations, real-time progress tracking, and wearable device connectivity..

Petro Rabigh, Al Hammadi Holding, Retal, and more post 1Q earnings

PETRO RABIGH-

Rabigh Refining and Petrochemical Company narrowed its net losses to SAR 691 mn in 1Q 2025, compared to SAR 1.3 bn in the same period last year, driven by higher sales volumes, improved margins, and lower financing costs, it said in a disclosure to Tadawul. Revenue rose 44% y-o-y to SAR 11.5 bn, on the back of higher sales volumes and stable operations in refined and petrochemical segments.

However, accumulated losses rose to 35.7% of capital (SAR 5.96 bn) in March, up from 33.8% in February, due to unfavorable market conditions, lower margins, higher finance costs, unplanned shutdowns, rising feedstock costs, and shipping disruptions in the Red Sea.

To address this, founding shareholders Saudi Aramco and Sumitomo Chemical are implementing a recovery plan that includes Aramco acquiring 22.5% of shares from Sumitomo, waiving SAR 5.6 bn in shareholder loans, and injecting approximately SAR 5.3 bn into the company. A transformation program to reduce costs and boost revenue is also underway.

AL HAMMADI HOLDING-

Our friends at Al Hammadi Holding saw their net income rise 15.4% y-o-y to SAR 73.9 mn in 1Q 2025, according to their latest earnings release (pdf). The growth was supported by cost controls, higher finance income, and contributions from Sudair Pharmaceuticals following the start of insulin production.

MEANWHILE- Revenue was up 9% y-o-y to SAR 301.9 mn, on the back of a 6% increase in medical services revenues led by Al Nuzha hospital’s 11% y-o-y growth, and a 23% jump in revenues from pharmaceuticals, boosted by in-house pharmacy sales and expanded private sector offerings at Pharma Serve.

Al Hammadi in numbers: Inpatient admissions rose 13.3% y-o-y to 11.3k in the first quarter, driven by higher volumes at Al Nuzha and Al Suweidi. Outpatient visits grew 0.5% to 250.7k, while average revenue per visit increased 6%. This growth came despite the full month of Ramadan falling within the quarter.

Looking ahead: Al Hammadi plans to more than double its capacity over the next five years with 600 new inpatient rooms and 360 outpatient clinics across three new facilities in Riyadh, including its fifth hospital in Al Mansiyah, acquired in November 2024. The expansion is in response to projected population growth and includes the development of centers focused on advanced medical specialties.

ALSO- The company’s board approved a SAR 56 mn dividend payout for 1Q 2025 at SAR 0.35 per share, with the distribution date set for 29 May, according to a separate disclosure.

RETAL URBAN DEVELOPMENT-

Our friends at RetalUrban Development reported a 12.6% y-o-y increase in net income before deducting non-controlling interest to SAR 73.8 mn in 1Q 2025, supported by a 4% rise in income from development contracts and a 55% drop in marketing expenses, it said in its latest earnings release (pdf). Net income after deducting non-controlling interest reached SAR 68.1 mn, a 9.4% increase.

MEANWHILE- Revenue rose 13.3% y-o-y to SAR 567.1 mn, driven by a 21% increase in development contract revenues on the back of higher project completion rates.

Retal in numbers: As of March, Retal’s project portfolio surpassed SAR 17 bn, with 9.8k units under development, including those delivered through seven dedicated funds. The company is working on 17 active projects and has five in the pipeline. This includes three ongoing projects with 962 units in the western region, 11 projects in the central region (644 upcoming units and 4.6k ongoing), and eight projects in the eastern region (1k ongoing and 2.6k upcoming).

Highlights of 1Q: Retal signed two contracts in January and March worth a combined SAR 867 mn with its 80%-owned subsidiary Building Construction Company (BCC) to build 656 residential units in Riyadh. Additionally, its 50%-owned JV, Remal Al Khobar, signed a SAR 450 mn contract for construction work on the Retal Rise project. Also, fund manager Blominvest has begun liquidating Retal’s Business Park Fund, targeting a sale value of SAR 470 mn.

SIPCHEM-

Sahara International Petrochemical Company (Sipchem) posted a 7.6% y-o-y increase in net income to SAR 195.3 mn in 1Q 2025, bolstered by higher revenue and an associate’s debt restructuring, according to a disclosure to Tadawul. Revenue rose 2.3% y-o-y to SAR 1.97 bn, driven by higher selling prices and increased sales volume.

MAHARAH HUMAN RESOURCES COMPANY-

Maharah Human Resources Company reported a 52.9% y-o-y drop in net income to SAR 23.7 mn in 1Q 2025, impacted by reduced earnings from associates and subsidiaries, according to a disclosure to Tadawul. However, revenue increased by 37.1% y-o-y to SAR 710.8 mn in the same period, aided by growth in corporate and individual segments.

DR. SOLIMAN ABDEL KADER FAKEEH HOSPITAL-

Dr. Soliman Abdel Kader Fakeeh Hospital reported a 11% y-o-y increase in net income to SAR 67.4 mn in 1Q 2025, supported by lower interest expenses and higher interest income, according to an earnings release (pdf). Meanwhile, revenue rose 3% y-o-y to SAR 701 mn on the back of higher patient volumes and average revenue per patient.

SAUDI RESEARCH AND MEDIA GROUP-

Saudi Research and Media Group (SRMG) saw its net income fall 64.4% y-o-y to SAR 30.9 mn in 1Q 2025, while revenue declined 18.3% y-o-y to SAR 665.7 mn, due to weak performances by core segments, according to a disclosure to Tadawul.

CATRION CATERING HOLDING-

Catrion Catering Holding Company posted a 4.9% y-o-y increase in net income to SAR 74.8 mn in 1Q 2025, lifted by higher sales of in-flight catering operations and improved performances by the business lounge and non-airlines segments, according to a disclosure to Tadawul. Meanwhile, revenue rose 6.6% y-o-y to SAR 589.4 mn on the back of growth across core service lines.

SINAD HOLDING COMPANY-

Sinad Holding Company reported a 80.7% y-o-y decrease in net income losses to SAR 2.7 mn in 1Q 2025, attributed to lower administrative expenses and higher total income from investment, according to a disclosure to Tadawul. Meanwhile, revenue declined 7.5% y-o-y to SAR 412.1 mn, primarily due to the impact of currency depreciation on its Egyptian subsidiary.

SPIMACO-

Saudi Pharmaceutical Industries and Medical Appliances Corp. (Spimaco) saw its net income rise by 90% y-o-y to SAR 75 mn in 1Q 2025, according to an earnings release (pdf). Revenue also rose by 2% y-o-y to SAR 485 mn, supported by growth in domestic sales, particularly to the public sector.

Evercore, Scale AI plan Saudi expansion

EXPANSION-

#1- Evercore to open Saudi office: New York-based advisory firm Evercore is expanding into Saudi Arabia with a new office and has tapped Mohammed Aldekmary to lead its operations, Bloomberg reports, citing unnamed sources familiar with the matter. Aldekmary, a former adviser at the Investment Ministry, will be based in Dubai until the firm’s Riyadh license is obtained. No timeline was disclosed.

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IN CONTEXT- Advisory firms like Evercore, Rothschild & Co., and Moelis & Co. are expanding in the Gulf, advising on key agreements like Saudi Aramco’s IPO. Saudi Arabia is encouraging foreign firms to establish offices in Riyadh as part of its efforts to diversify its economy and attract investment, with international banks advising on IPOs and transactions linked to its USD 925 bn sovereign wealth fund.

#2- Amazon-backed AI development startup Scale AI eyes expanding its regional presence by opening an office in Riyadh by year-end, global managing director Trevor Thompson told Bloomberg reports. The San Francisco-based startup will also open another office in UAE as part of a broader expansion in the “fastest growing region for AI adoption” outside the US and China, Thompson told Bloomberg without giving a timeline.

About Scale AI: It was founded in 2016 and provides tech giants including OpenAI and Microsoft with high quality data, which is used to train AI chatbots and other AI products. The startup’s ex director, Michael Kratsois, is now one of Trump’s top aides on technology.

HOSPITALITY-

UK’s InterContinental Hotel Group (IHG) and Ashaad Company revealed three new hotel signings in Jeddah and Al Khobar, according to a press release during the Future Hospitality Summit. The three hotels — Hotel Indigo Jeddah Gate, InterContinental Al Khobar Al Hamra, and voco Al Khobar Al Andalus — will open between 2028 and 2030 and will add over 1.7k rooms to IHG’s growing portfolio in the Kingdom — joining 47 hotels in the pipeline set to open in the next 3-5 years.

IN CONTEXT- Last October, IHG announced its plans to open 19 new hotels this year, with next year expected to “be the biggest in terms of new hotel openings. It also plans to expand its Saudi team by adding 6k new employees as part of its regional expansion strategy.

INVESTMENT WATCH-

Amwal Capital Partners launches a USD 150 mn Shariah-compliant private credit fund, aimed for GCC SMEs with a focus on asset-backed solutions for tech-enabled platforms, it said in a statement (pdf). It also targets 12-15 direct lending opportunities, particularly in Saudi Arabia and the UAE over its 5 year term.

Temporary respite as US-China trade war eases with 90-day truce

The US and China have agreed to a 90-day pause to their trade war after two days of talks in Geneva, with the US slashing tariffs it imposed earlier this year on Chinese goods from 145% to 30% — encompassing the 10% baseline US tariff and an additional 20% linked to fentanyl trafficking — while China lowered its tariffs on US imports from 125% to 10%, according to a joint statement out yesterday.

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The agreement marks the first meaningful de-escalation since the latest round of tit-for-tat tariffs began in April, when Washington ramped up levies on Chinese goods as part of its “reciprocal tariffs” campaign, prompting an equally aggressive response from Beijing. US Treasury Secretary Scott Bessent said the recent levels had amounted to a de facto blockade of trade between the world’s two largest economies — one that neither side wanted to see hardened into a permanent rupture.

China’s public messaging struck a similarly cautious tone. A white paper published yesterday by state media underscored Beijing’s commitment to mutual respect in trade relations, while vowing to expand its toolkit to counter foreign sanctions and “long-arm jurisdiction.” At the same time, Chinese officials sought to frame the agreement as a win, with ING’s chief China economist Lynn Song noting the lack of direct concessions required of Beijing.

Bessent emphasized that Washington’s approach isn’t about wholesale disengagement. “The US is going to do a strategic decoupling in terms of the items that we discovered during Covid were of national security interests — whether it’s semiconductors, medicine, steel,” Treasury Secretary Scott Bessent told Bloomberg, underscoring the administration’s intent to maintain pressure on critical supply chains while easing tensions more broadly.

The agreement is more of a ceasefire than a lasting settlement: More Talks are expected to continue in the coming weeks, with both parties leaving the door open to extending the three-month truce if progress is made. Bessent hinted that if China were to engage more directly on curbing the fentanyl trade, further relief could be possible. Still, he described it as “implausible” that US tariffs on China would fall below the 10% mark.

Trump said upcoming talks will focus on “opening up” China to American business, noting that many of the tariffs he imposed will remain in place for now. He added that he expects to speak with President Xi Jinping later this week, but cautioned that putting a comprehensive deal on paper would take time.

HOW MARKETS TOOK ALL OF THIS-

American markets rallied on the news, with the S&P 500 jumped 3.3% by the end of trading yesterday, while the Nasdaq finished the day up 4.4% following the news. The USD gained 1.4%.

The rally came at the expense of traditional safe havens, with gold tumbling more 3.5% to USD 3,228 an ounce, pulling back from last month’s record highs, along with some safe-haven currencies.

The VIX index — Wall Street’s so-called “fear gauge” — dropped below the cutoff 20 mark yesterday for the first time since 28 March, suggesting a potential shift toward calmer market sentiment. The VIX rose to a 5-year high of 45.3 on 4 April fueled by Donald Trump’s tariff announcements. The last spike before that was in March 2020 when it reached 85.5 in reaction to Covid.

MARKETS THIS MORNING-

Asian markets are mostly in the green this morning. Japan’s Nikkei is up 1.7%, the Shanghai Composite is looking at gains of 0.2%, and Korea’s Kospi is up 0.4%. Meanwhile, the Hang Seng is down 1.3% in early trading.

TASI	11,489	+1.3% (YTD: -4.6%)
MSCI Tadawul 30	1,468	+1.2% (YTD: -2.7%)
NomuC	27,343	-0.3% (YTD: -13.1%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	31,577	+0.5% (YTD: +6.2%)
ADX	9,639	+0.1% (YTD: 2.3%)
DFM	5,333	+0.4% (YTD: +3.4%)
S&P 500	5,844	+3.3% (YTD: -0.6%)
FTSE 100	8,605	+0.6% (YTD: +5.3%)
Euro Stoxx 50	5,392	+1.6% (YTD: +10.1%)
Brent crude	USD 64.98	+1.7%
Natural gas (Nymex)	USD 3.65	-3.9%
Gold	USD 3,228	-3.5%
BTC	USD 102,595	-1.2% (YTD: +9.5%)
Sukuk/bond market index	913.40	-0.1% (YTD: +1.3%)
S&P MENA Bond & Sukuk	143.4	-0.1% (YTD: +2.5%)
VIX (Fear gauge)	18.95	-13.5% (YTD: 13.7%)

THE CLOSING BELL: TADAWUL-

The TASI rose 1.3% yesterday on turnover of SAR 6.1 bn. The index is down 4.6% YTD.

In the green: SAUDI CERAMICS (+10.0%), BATIC (+7.8%) and NASEEJ (+7.4%).

In the red: SHL (-3.9%), MAHARAH (-3.7%) and ALMUNAJEM (-1.5%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.3% yesterday on turnover of SAR 69.2 mn. The index is down 13.1% YTD.

In the green: MUNAWLA (+9.9%), FUTURE VISION (+8.2%) and ALBATTAL FACTORY (+8.0%).

In the red: AME (-14.2%), EDARAT (-5.0%) and NBM (-4.4%).

CALENDAR

MAY

Second week of May: World Intellectual Property Organization (WIPO) Global Awards 2025 announces finalists.

11-13 May (Sunday-Tuesday): Future Hospitality Summit, Mandarin Oriental Al Faisaliah, Riyadh.

12-14 May (Monday-Wednesday): 2025 Saudi Giga projects Summit, Riyadh.

12-14 May (Monday-Wednesday): Saudi Food Show 2025, Riyadh Front Exhibition and Conference Centre, Riyadh.

12-15 May (Monday-Thursday): Riyadh International Industry Week, Riyadh International Convention & Exhibition Center.

15-21 May (Thursday-Wednesday): Axelerated Solutions’ Nomu IPO subscription period

17 May (Saturday): Hail investment Forum 2025, Al Roshan Expo, Hail.

18 May (Sunday): Conclusion of the bookbuilding period for institutional investors in Flynas’ Tadawul IPO

18-22 May (Sunday-Thursday): Al Kuzama’s Nomu IPO subscription period

19-25 May (Monday-Sunday): Asas Makeen’s Nomu IPO subscription period

19-26 May (Monday-Monday): Dome International’s Nomu IPO subscription period

22-27 May (Thursday-Tuesday): Anmat’s Nomu IPO subscription period

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

26-29 May (Monday-Thursday): Hawyia Auctions Nomu IPO offering period.

27-28 May (Tuesday-Wednesday): Aseer Investment Forum, King Khalid University in Al Faraa, Abha.

27 May-1 Jun (Tuesday-Sunday): Al Khaldi’s Nomu IPO subscription period

29 May (Thursday): 2024-2025 academic year ends.

30 May (Friday) King’s Cup final (Al-Ittihad vs Al-Qadisiyah), Al-Inma Stadium, King Abdullah Sports City, Jeddah.

JUNE

4-9 June (Wednesday-Monday): Hajj.

6-10 June (Friday-Tuesday): Eid Al Adha.

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

24-25 June (Tuesday-Wednesday): Tech-ecO-System Summit (ToSS), Riyadh.

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

JULY

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

7 July-24 August (Monday-Sunday): Esports World Cup, Riyadh.

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

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

AUGUST

7 July-24 August (Monday-Sunday): Esports World Cup, Riyadh.

5-17 August (Tuesday-Sunday): 2025 Fiba Asia Cup, Jeddah.

SEPTEMBER

15-17 September (Monday-Wednesday): Money 20/20 Middle East, Riyadh.

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

23 September (Tuesday): Saudi National Day.

OCTOBER

1-3 October (Wednesday-Friday): Saudi Green Building Forum, Riyadh.

7-8 October (Tuesday-Wednesday): Global EV & Mobility Technology (GEMTECH) Forum, Riyadh.

17 October (Friday): Saudization for private healthcare roles enters its second phase.

22-23 October (Wednesday-Thursday): Private Capital Forum, Riyadh.

25-27 December (Saturday-Monday): The Fortune Global Forum 2025, Riyadh.

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

NOVEMBER

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

23-26 November (Sunday-Wednesday): Saudi Food Exhibition and Conference, Riyadh.

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

27-30 November (Thursday-Sunday): World Rally Championship Saudi Arabia 2025, Jeddah.

30 November (Sunday): Zatca 21st E-invocing integration wave deadline.

DECEMBER

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

1-4 December (Monday-Thursday): 61st ISOCARP World Planning Congress, Riyadh.

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

31 December (Wednesday): Zatca 22st E-invoicing integration wave deadline.

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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