Good morning, everyone. Thursday is finally here, and it brought a whole lot of news, from Jahez snapping up a majority stake in Qatar’s Snoonu, to SAB Invest officially launching its first MENA-focused private credit fund, to Alinma closing a USD 500 mn sukuk sale.

ALSO- Crown Prince Mohammed bin Salman chaired a busier-than-usual cabinet session held Tuesday in Jeddah. Among the items on the agenda:

  • A new law enabling non-Saudis to own real estate property in the Kingdom got the greenlight from the cabinet, allowing foreigners to purchase and own property for residential or commercial purposes in designated areas without a residency permit. We explore what that will mean for our real estate market in today’s issue.
  • The Kingdom ratified the general agreement for the Pan-Arab Electricity Market. We have a deep-dive on PAEM in the news well, below.
  • The cabinet also greenlit an updated version of the National Strategy for Transport and Logistics Services. The updated strategy is expected to be focused on supporting infrastructure expansion and trade facilitation, although details remain scant.

HAPPENING TODAY-

The latest Industrial Production Index (IPI) for May will be our today by the General Authority for Statistics (Gastat), providing an update on the performance of key sectors such as manufacturing, mining, and utilities. The index rose 3.1% y-o-y in April, fueled by growth in mining and quarrying, manufacturing, and waste management activities. The increase was largely driven by a 7.4% y-o-y rise in manufacturing activity.

WEATHER- Riyadh is expected to see a high of 42°C and a low of 27°C, while Jeddah’s mercury will go as high as 39°C and as low as 29°C. Makkah will see a 43°C high and a 29°C low.

WATCH THIS SPACE-

Sabic is mulling IPO among other options for gas unit: Saudi Basic Industries Corporation (Sabic) and the National Gas and Industrialization Company (Gasco) are evaluating strategic options for the National Industrial Gases Company (Gas), including the possibility of an initial public offering (IPO) on the Saudi Exchange’s main market, according to statements from Sabic and Gasco.

The move is part of Sabic’s broader strategy to optimize its portfolio and focus on core businesses, with the aim of strengthening its financial position and enhancing shareholder value. Sabic owns a majority stake in Gas, while Gasco is an investee stakeholder.

DATA POINTS-

#1- Foreign investments in the Kingdom’s economy surpassed SAR 3 tn for the first time at the end of 1Q 2025, according to Saudi Central Bank (Sama)’s latest monthly report. This marks an increase from SAR 2.6 tn during the same period last year.

The breakdown: Foreign direct investment (FDI) recorded SAR 995.5 bn, while portfolio investments, which include equity and fund investment shares and debt securities reached SAR 1.2 tn. Other investments, including loans, currency and deposits, came at SAR 808.3 bn.

#2- Consumer spending via point-of-sale (PoS) transactions in the Kingdom was up 5% w-o-w in the week ending 5 July, reaching around SAR 14.3 bn, according to the Saudi Central Bank’s weekly report (pdf). The number of weekly transactions increased 4.8% w-o-w to about 230.5 mn during the week.

The details: Food and beverages made up the bulk of consumers’ spending during the week in terms of value, rising 6.9% w-o-w to SAR 2.1 bn. Restaurants and cafés came in second place, increasing 3.5% w-o-w to nearly SAR 2 bn. This was followed by gas stations spending, which edged up 1.1% w-o-w to SAR 974 mn, clothing and footwear, which increased 7.4% w-o-w to SAR 892.6 mn, and healthcare, which rose 3.7% to about SAR 871.4 mn.

Riyadh had the highest value of PoS transactions at about SAR 4.9 bn, followed by Jeddah at about SAR 2.1 bn.

#3- The number of containers handled at Saudi sea ports rose 18.7% y-o-y in June to 696.8k TEUs, alongside transshipments increasing 35.9% y-o-y to 165k TEUs, the Saudi Ports Authority (Mawani) said in a statement. Exports widened 17.8% y-o-y during the same month to 268.6k TEUs, while imports grew 10.7% y-o-y to 263.3k TEUs.

ALSO- Maritime traffic increased 7.6% y-o-y last month to 1.1 ships, with passengers rising 42.3% y-o-y to 78.7k, while the number of vehicles decreased 25.4% y-o-y to 75.4k.

OIL WATCH-

Oil markets are absorbing additional Opec+ barrels without a notable buildup in inventories, signaling sustained demand, Reuters reports, citing comments made by the UAE’s Energy Minister Suhail Al Mazrouei.

REMEMBER- It was reported that the latest output boost from Opec+ of 548k barrels per day for August could tip global oil markets into a surplus later this year. However, some analysts believe the real supply impact will be more muted.

The minister wasn’t phased by concerns over a supply glut following recent production hikes, saying he wasn’t wary about a supply overhang, the business news outlet noted. “[Even] with the increases for several months we haven’t seen a major buildup in inventories, which means the market needed those barrels,” Al Mazrouei said.

Al Mazrouei also stressed the importance of maintaining price levels that support long-term investment, warning that focusing only on short-term price movements undermines stability and noting that countries with significant reserves are still not investing enough to secure future supply.

Another hike incoming? Another hike of 550k barrels per day for September is looking likely for when the group meets on 3 August, sources told Reuters, however the group previously said that production targets will depend on market conditions.

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THE BIG STORY ABROAD-

Another day, another tariff headline is dominating front pages. The US has now said it will hit Brazil with a 50% tariff — a large hike compared to the 10% reciprocal tariff announced earlier in April — as US President Donald Trump protested what he calls a “witch hunt” against former Brazilian President Jair Bolsonaro in his letter to the country. He criticized the current trial and charges against Bolsonaro and demanded that he be allowed to run in the next election. Not stopping there, he also ordered an unfair trade practices probe into Brazil’s policies that could lead to further tariffs later. (Bloomberg | Reuters | Wall Street Journal | Guardian | Financial Times)

Meanwhile, Trump says a Gaza ceasefire agreement is “very close,” as Israeli Prime Minister Benjamin Netanyahu continues talks with Trump in Washington and US, Qatari, and Israeli officials reportedly meet to discuss the agreement. (Bloomberg | Axios)

ALSO- Chipmaker Nvidia has just became the first company ever to hit a market cap of USD 4 tn, beating its rivals Apple and Microsoft to the milestone during trading yesterday. (Bloomberg | FT | WSJ | CNBC)

ALSO- X CEO Linda Yaccarino has stepped down from her position at the Elon Musk-owned platform after two years. The resignation comes just a day after X’s chatbot, Grok, went off on a tangent, praising Adolf Hitler and spewing anti-semitic comments. (Reuters | WSJ | FT)

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