Fitch maintains the Kingdom’s credit rating at A+ with stable outlook. PLUS: Oil exports fall to four-year low in May

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Societe General joins international dealers for local gov’t gebt + Opec+ committee to hold oil policy steady?

Good morning. We’re back into your inboxes after an extremely busy weekend for the Kingdom, which saw Fitch hold our credit rating steady at A+ citing healthy fundamentals. Trade figures for May are also out of Gastat’s bag, with oil exports continuing the dip into a four-year low.

MEANWHILE- The Syrian-Saudi investment forum pushed ahead with bns in agreements in key sectors, the real estate foreign ownership law is finally out, and more big banks reported solid 2Q earnings. Let’s dive in.

HAPPENING TODAY-

Pharma sector to start ramping up Saudization rates starting today: The Human Resources and Social Development Ministry — in partnership with the Health Ministry — will begin enforcing higher Saudization rates for pharma-related professions starting today. The decision was first announced in January and mandates 35% Saudization in community pharmacies and medical centers, 65% in hospitals, and 55% in other pharmacy-related roles.

WEATHER- Riyadh is expected to see a high of 44°C and a low of 29°C, while Jeddah’s mercury will go as high as 39°C and as low as 28°C. Makkah will see a 42°C high and a 32°C low.

⚠️Brace for storms: Potentially heavy rain are forecast to sweep across the southern region starting Sunday, with Makkah, Al Baha, Asir, Najran, and Jazan expected to be hit, the NCM said on X. Winds may stir up sand and reduce visibility in parts of Riyadh, Madinah, and coastal roads near Jazan.

HAPPENING THIS WEEK-

#1- The US Federal Open Market Committee meeting will kick off on Tuesday and wrap up on Wednesday. Market watchers will be parsing every word when the Fed’s updated economic projections are made public after the meeting.

#2- Local sports tech startups have until Thursday to register for the ASICS InnovationPitch competition, which offers a prize pool of SAR 35k for the top three winners. The competition is launched in partnership with the Saudi Sports for All Federation following a three-year partnership agreement signed with ASICS back in January.

WATCH THIS SPACE-

Societe Generale is now a dealer for gov’t debt: The Finance Ministry and the National Debt Management Center (NDMC) tapped Societe Generale to join the Primary Dealers Program for the government’s local debt instruments, according to a statement from the ministry. Dealers receive subscription requests from investors on a monthly basis and then submit them to the NDMC.

The bank joins five other international lenders, including BNP Paribas, Citigroup, Goldman Sachs, JP Morgan, and Standard Chartered. Local institutions in the program include Saudi National Bank, Saudi Awwal Bank, AlJazira Bank, Alinma Bank, AlRajhi Bank, Albilad Capital, AlJazira Capital, AlRajhi Capital, Derayah Financial Company, and Saudi Fransi Capital.

The First National Company (Fnrco) plans to go public early next year, founder and Chairman Ali Al Mahhan told Aleqtisadiah on Friday. No details were disclosed about the size or value of the potential offering, or whether Fnrco would target a Tadawul or a Nomu listing.

About Fnrco: Established in 2001, Fnrco was licensed by the Labor Ministry in 2013 to provide integrated administrative, HR, and project management solutions.

Al Mozaini Real Estate backs out from IPO arrangement agreement with Yaqeen Capital: Hamad & Ahmad Mohamed Al Mozaini Real Estate Company terminated its June agreement with Yaqeen Capital, whereby Yaqeen would have arranged its IPO on Tadawul’s parallel market Nomu, according to a disclosure to Tadawul from Yaqeen. The termination note Al Mozaini didn’t disclose the reasons behind its decision.

Alpha Capital secured approval for the public offering of its Freestyle GCC Equity Fund, the Capital Market Authority said in a statement last Thursday.

DATA POINTS-

The Kingdom’s rail network logged more than 36.5 mn in passenger traffic in 2Q 2025, the Transport General Authority said on X. Intracity trains carried 33.8 mn passengers during the quarter, led by Riyadh Metro with over 23.6 mn. Meanwhile, intercity trains transported 2.7 mn travelers, up 10% y-o-y, led by the Haramain High-Speed Railway.

MEANWHILE-Freight rail moved about 4.1 mn tons of minerals and goods, including 3.7 mn tons on the Northern Train network. The Eastern Train network transported 232k containers (+13%) and 408k tons of goods (+44%).

OIL WATCH-

Opec+ ministerial committee to hold oil policy steady? The Joint Ministerial Monitoring Committee (JMMC) of Opec+ will likely make no changes to the group’s current oil output policy during tomorrow’s meeting, Reuters reported on Thursday, citing four people it said are in the know.

Opec was quick to clarify the JMMC panel has no say in the decision-making process over production levels, but it can monitor and review them, as well as provide its recommendations, the oil group said on X on Friday.

IN CONTEXT- The oil cartel agreed earlier this month to raise production by 548k bbl / d in August, up from its previous monthly output increments of 411k bbl / d for May, June, and July. This comes as the group seeks to accelerate its plan to return around 2.2 mn bbl / d to the market in monthly increments by the end of 2026.

KEEP AN EYE OUT- Opec+ will meet on 3 August to decide on production levels for September; the return of supply could be paused or reversed depending on market conditions.

We took a deep dive on Opec+’s output increase and what it means for us.

SPORTS-

New York-based Five Iron Golf partnered with Golf Saudi to establish multiple indoor golf facilities in the Kingdom, according to a press release. The 1.5k sqm inaugural venue is scheduled to open in 2026 on the ground level of the PIF Tower in Riyadh’s King Abdullah Financial District.

About Five Iron Golf: Founded in 2017, Five Iron Golf offers digital golf simulators, professional instruction, and a full-service sports bar experience. It operates in over 36 locations across the US, the UAE, India, Singapore, and Australia.

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THE BIG STORY ABROAD-

Is a EU-US trade deal upon us? US President Donald Trump and European Commission President Ursula von der Leyen will meet later today to discuss “transatlantic trade relations, and how [they] can keep them strong,” von der Leyen wrote in a X post. Meanwhile, Trump appeared less optimistic about the outcome of the meeting, saying that the two sides have “a good 50/50 chance. That’s a lot.” The talks come shortly after Trump started pushing for a 15-20% baseline tariff on EU imports. (Reuters | CNBC | FT)

CLOSER TO HOME- Israel said that it had resumed airdropping aid into Gaza. The first Israeli air drops since 2023 included pallets of flour, sugar, and canned food and came following international pressure to alleviate the crisis in Gaza. (Reuters | FT | AP | BBC)

Fitch affirms Saudi Arabia’s A+ credit rating as strong buffers offset widening deficits

Fitch Ratings affirmed Saudi Arabia’s long-term foreign-currency issuer default rating at A+ with a stable outlook, citing its robust fiscal position and strong external balance sheets, it said in a note on Thursday.

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The rationale: “Government debt-to-GDP [ratio] and sovereign net foreign assets [are] considerably stronger than both the A and AA medians,” the agency said, citing “significant fiscal buffers” in deposits and other public sector assets.

Foreign reserves are expected to remain exceptionally large, covering an estimated 12.8 months of external payments in 2025 and providing a significant financial cushion. However, heavy external borrowing and a focus on domestic investment are expected to turn the economy into a net external debtor of 3.4% of GDP by 2027, Fitch said.

The banking sector is looking healthy, boasting by the end of 1Q 2025 a high capital adequacy ratio of 19.3% and the lowest non-performing loans ratio since 2016 at 1.2%. However, rapid credit growth is outpacing deposits, leading to increased external borrowing and a deteriorating — though still small — net foreign asset position, the note said.

Headline GDP growth is forecast to reach 4.3% in 2025 and 4.7% in 2026, driven by both oil production increases and a buoyant non-oil sector. The non-oil private sector now accounts for 56% of GDP, supported by reforms like the foreign land ownership amendments and the new investment law.

A wider deficit: Fitch forecasts that the budget deficit will widen to 4.0% of GDP in 2025 and 4.1% in 2026, primarily due to lower projected oil prices — as the average Brent crude price is expected to hit USD 70 a barrel this year — and reduced dividends from Saudi Aramco. The current account balance is also expected to shift to a deficit of 2.9% of GDP in 2025, before widening further to 4.2% in 2026.

Public debt is also rising: Due to fiscal deficits, government debt is projected to rise to 35.1% of GDP by 2027, compared to 29.7% of GDP this year. “The sovereign is adjusting capex to support the fiscal position, although execution of the large project pipeline and new infrastructure projects will constrain the pace for substantial cuts,” Fitch noted.

Regional geopolitical risks remain high: Recent hostilities have not significantly impacted economic activity, but the potential for disruption to key infrastructure, such as the Strait of Hormuz, remains a vulnerability, said Fitch.

What could move the needle? A downgrade could be triggered by significant fiscal deterioration, driven by a rising debt, contingent liabilities, or a major geopolitical shock. An upgrade would require successful economic and fiscal reforms that reduce oil dependency or a sustained oil price boom that strengthens the Kingdom’s balance sheets, Fitch said.

Oil exports down 21.8% in May + non-oil exports down 1.8%

Oil exports continue to dip: The Kingdom’s oil exports dropped 21.8% y-o-y to SAR 59.3 bn in May, its lowest level since May 2021, stretching April’s downward trend, according to preliminary data from the General Authority for Statistics (pdf). Oil’s share of total exports also dropped by 6.5 percentage points y-o-y to 65.6%.

REMEMBER- In May, Opec+ moved forward with accelerated oil output hikes as part of a plan to gradually return 2.2 mn bbl / d to the market over 18 months. The resulting lower oil prices have increased the risk of wider budget deficits and higher public debt for the Kingdom. Trump’s push-and-pull with trade partners that kicked off in April also didn’t do any favors for clarity in global markets.

While the situation was considered manageable in the short-term, Finance Minister Mohammed Al Jadaan said in May that due to low oil prices and global uncertainty, the Kingdom will “take stock” of spending on its large-scale Vision 2030 projects.

NON-OIL BREAKDOWN-

Non-oil merchandise exports fell 1.8% y-o-y to some SAR 18.8 bn in May 2025. Total non-oil exports — including re-exports — rose 6% y-o-y, supported by a 20.5% increase in re-exports value, despite a 14% decrease in merchandise exports during the same period. Meanwhile, imports grew 7.8% to about SAR 80.9 bn, and the surplus of the merchandise trade balance was down 68.4%.

Non-oil exports remained higher than imports, despite the ratio falling to 38.5% in May, compared to 39.1% in the same month a year ago.

Machinery and electrical equipment, making up 23.7% of non-oil exports, nearly doubled, logging a 99.8% y-o-y increase to SAR 7.4 bn. Chemical products also inched up 0.4% y-o-y to SAR 7.1 bn.

Machinery and electrical equipment were also the most sought after by importers, increasing 23% y-o-y to nearly SAR 24 bn, and accounting for 29.7% of total imports. Transportation equipment and parts followed with an 11.4% share, despite recording a 9.2% y-o-y decrease to around SAR 9.2 bn.

China still tops the trade list: The Kingdom’s merchandise exports to China made up 14% of our total exports in May 2025, followed by the UAE (11.2%) and India (8.9%). Meanwhile, Chinese goods accounted for 28.9% of total imports over the same period, followed by the US (7.5%) and the UAE (6.3%).

Syrian-Saudi Investment Forum yields 47 agreements worth SAR 24 bn

The Saudi-Syrian Investment Forum wrapped up with 47 agreements signed, worth some SAR 24 bn, state news agency SPA reported on Friday. Damascus hosted a large delegation of Saudi investors and representatives from both public and private sectors, led by Investment Minister Khalid Al Falih.

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The agreements are expected to create 50k jobs and are focused on sectors including real estate, infrastructure, financial, energy, telecommunications, technology, tourism, manufacturing, and trade, Al Arabiya quoted Syrian Media Minister Hamza Al Mustafa as saying in a press conference held on Wednesday.

We have a new business council: A Saudi-Syrian Business Council was launched during the forum. chaired by Acwa Power’s founder Mohammad Abunayyan to ramp up cooperation in trade and investments, Al Falih said on X.

.. and we’re exploring dual listing: The forum also saw Tadawul Group and Damascus Securities Exchange sign an MoU to explore dual listing, enhance cooperation in financial technologies, and the launch of investment and financing funds to stimulate investment in Syria, Al Arabiya reported on Thursday.

THE BREAKDOWN-

The real estate sector took the largest bite of the investments with agreements worth over SAR 7.2 bn signed, which were directed toward infrastructure reconstruction projects across Syria, including establishing a residential and commercial project in war-torn Homs from Bayt Al Ebaa, and a SAR 375 mn Burj Al Jawhara hotel in Damascus by Ethraa Holding, the Investment Ministry said on X. Alawaly Real Estate and contractor Al Abdulqader were also involved in the agreements.

In the financial sector, SAR 4.8 bn worth of agreements were sealed for exploring potential investments in Syria and conducting joint research in fintech, the ministry said on X separately. Bin Dawood Holding inked an agreement with the Syrian Tourism Ministry to establish a USD 1 bn investment Fund, with the potential to expand depending on investment prospects, CEO Ahmad bin Dawood told Asharq Business (watch, runtime: 3:36) on the sidelines of the forum. Saudi Exim Bank also signed an MoU with Syria’s Baraka Bank.

Infrastructure followed, with over SAR 4.3 bn in agreements, including over 2.5k residential units, and a building and plumbing materials production facility. The bulk of the infrastructure investment went to the cement industry, including a USD 250 mn portland cement facility with 2 mn tons of annual capacity and another cement facility with a daily production capacity of 6k tons. The agreements also covered Northern Region Cement’s white cement plant, with a production capacity of 150k tons annually.

Meanwhile, the telecommunications and information technology sector received more than SAR 3.6 bn. Companies including STC, Elm Company, Cipher, and Classera are set to develop Syria's digital infrastructure, cybersecurity, AI, and data centers, including data centers for cloud and AI services and an IP Node in Damascus and Aleppo.

ALSO- Go Telecom inked a SAR 1.96 bn framework agreement with Syria’s Communications and Information Technology Ministry to establish two data centers, a cloud computing and backup environment, a technology platform to support Syria’s digital transformation, the a cybersecurity center, and training qualified teams.

Aviation got a slice of the cake too, with over SAR 1.1 bn in aviation and navigation agreements, including an agreement between Matarat Holding and Syria’s General Authority for Civil Aviation for an assessment study of civil aviation in the Damascus Airport.

Saudi firms also inked SAR 669 mn in investment agreements, which will see the building of a steel facility with an annual production capacity of 300k tons, an electrical panel facility, and a baby-formula manufacturing facility.

And tourism? Syria will receive over SAR 616 mn from Saudi firms in the tourism sector, set for the development of a 250k sqm multi-purpose resort on Damascus’ Zarzar Lake, along with another agreement for hotel and resort management with Le Park Concord.

The trade and investment sector saw agreements valued at over SAR 396 mn from Ghrbal International and Syria’s Ebla Ventures, covering the acquisition and development of land plots, forming a partnership to back Syrian startups, and supporting F&B retail.

More and more: The energy sector got some SAR 549 mn in investments from Khashoggi Holding, Absal Energy Solutions, Pemco and Utec, for joint production of electric generators and other electric manufacturing plants in Syria. On the healthcare front, Khashoggi Holding will invest a SAR 141 mn to build a pharma lab in Aleppo, targeting local and regional markets.

New foreign property ownership law expands ownership rights for non-Saudis

Non-Saudi individuals and institutions can now own properties and hold real estate rights in the Kingdom, with specific restrictions based on location, property type, and usage, according to the new foreign property ownership law published in the official gazette (pdf) on Friday.

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The fresh law expands ownership rights for non-Saudis in the Kingdom, replacing the previous law of 2000. The cabinet approved the new legislation earlier this month with an intent to revitalize the real estate market by attracting new sources of FDI to boost supply.

Non-Saudi residents now have the right to own a single property for residence anywhere in the Kingdom, with only Muslims granted the right to own properties in Makkah and Madinah. This overrides a prior prohibition on GCC citizens owning properties in the holy cities, effectively standardizing the rules for all non-Saudis.

Other non-Saudis will be allowed to purchase and hold properties only in designated zones, to be determined by the Cabinet, along with the type of rights to be granted, ownership percentage, and usufruct duration.

Non-listed companies owned by non-Saudis are now permitted to own properties or hold property rights in the designated zones, for their operational use or as residence for their employees — only after they fulfill all necessary registrations in the Kingdom. Meanwhile, ownership rules for Tadawul-listed companies follow the exchange law and regulations.

As for diplomatic missions and international organizations, they are also allowed to purchase property for their premises or as a residence for their representatives, following the Foreign Ministry’s approval.

Fees and penalties: Violations of real estate transactions involving non-Saudis will be punished by a formal warning or a 5% fine of up to SAR 10 mn. In severe cases, such as providing falsified information, the property would be subject to a forced sale, with the initial purchase price only remitted to the owner after deductions and fees.

What’s next? The law will come into effect after six months, within which the executive regulations will be out detailing the implementation mechanisms and specifying the designated zones. Foreign property ownership will only be valid after registration with the national real estate registry.

The law joins a battery of reforms pushed recently to stimulate the real estate market. The changes allowed foreign investment in Makkah- and Madinah-based real estate companies, lifted development restrictions on 81 sq km of land in northern Riyadh, and approved the White Land Tax, in addition to planning the release of 10k-40k affordable residential plots per year.

Sab raises SAR 2 bn via local AT1 sukuk issuance

Saudi Awwal Bank (Sab) raised SAR 2 bn via an additional tier one (AT1) perpetual sukuk offering through a private placement, according to a disclosure to Tadawul. The SAR-denominated offering, which kicked off earlier this month, was open to both institutional and qualified investors in the Kingdom.

About the securities: The sukuk carry a 6.3% annual return and are structured as perpetual instruments, meaning they have no fixed maturity. The Islamic bonds are callable, allowing Sab to redeem them early under certain conditions outlined in the base offering circular and applicable final terms. Proceeds will support the bank’s capital position in line and support its long-term strategic goals.

ADVISORS- Our friends at HSBC Saudi Arabia were the sole lead managers.

ALSO FROM SAUDI AWWAL BANK-

NDF lines up SAR 5.5 bn credit facility: The National Development Fund (NDF) signed a credit facility agreement worth SAR 5.5 bn with Sab and Riyad Bank to help finance development projects across the Kingdom, it said in a post on X.

Where will the money go? The facility is set to support the work of the fund’s 12 affiliated development banks and funds, accelerate job-creating projects, promote private sector participation, and support economic diversification, according to the fund.

ICYMI- The fund also inked a credit facility agreement worth SAR 5 bn earlier this month with Al Rajhi Bank and Arab National Bank.

Bank AlJazira, Alinma Bank and more post 2Q earnings

BANK ALJAZIRA-

Bank AlJazira’s net income grew 20.3% y-o-y to SAR 382.1 mn in 2Q 2025, driven by a 22% rise in total operating income, though partially offset by a 22% increase in total operating expenses, it said in a disclosure to Tadawul.

MEANWHILE- Bank AlJazira’s total income from financing grew 16.4% y-o-y to SAR 1.6 bn during the quarter, while its total income from investments fell 16.3% y-o-y to SAR 435.2 mn.

On a 1H basis, the bank’s net income was up 20.2% y-o-y at SAR 743.1 mn. Total income from financing grew 16.9% y-o-y to SAR 3.2 bn during the same period, while its total income from investments dropped 7.8% y-o-y to SAR 932.1 mn.

ALINMA BANK-

Alinma Bank reported an 11.1% y-o-y rise in net income to SAR 1.6 bn in 2Q 2025, driven by a 7.3% increase in total operating income, despite a nearly 10% rise in operating expenses, according to a disclosure to Tadawul.

The lender’s total income from financing rose 5% y-o-y to SAR 3.7 bn during the quarter, while its total income from investment increased 24.6% y-o-y to SAR 589.4 mn.

In 1H 2025, Alinma’s net income climbed 12.8% y-o-y to SAR 3.1 bn. The bank’s total income from financing increased 5.7% y-o-y to SAR 7.2 bn over the same period, while its total income from investment rose nearly 24% to SAR 1.2 bn.

Dividends on the way: Alinma Bank’s board approved distributing SAR 746.2 mn in dividends for 1H 2025 at SAR 0.30 per share, it said in a separate disclosure. The distribution date is set for 21 August.

JAMJOOM PHARMA-

Jamjoom Pharma Factory saw its net income increase 23.4% y-o-y to SAR 132 mn in 2Q 2025, according to its earnings release (pdf). Growth was driven by improved cost margins, strong performance across its sectors — particularly ophthalmology and dermatology — and markets, and new brand launches. Revenue grew 14.6% y-o-y to SAR 396.2 mn over the same period.

On a 1H basis, the company’s bottom line jumped 37.7% y-o-y to SAR 289.1 mn, while its revenue increased 16.8% to SAR 853.7 mn.

ALSO- Jamjoom’s board greenlit a SAR 140 mn dividend payout for 1H 2025 at SAR 2 per share, it said in a disclosure to Tadawul. The distribution date is slated for Sunday, 10 August.

Looking ahead, the company is focused on deepening its presence in existing markets, rather than expanding into new ones, CEO Tarek Hosny told Al Arabiya. He added that Jamjoom is open to acquiring pharma portfolios from other companies but is not currently looking to buy entire firms.

SADAFCO-

Saudia Dairyand Foodstuff (Sadafco) saw its net income decrease 7.9% y-o-y to SAR 117.7 mn in 2Q 2025 due to a lower gross margin and higher selling, distribution, general, and administrative expenses, it said in a disclosure to Tadawul on Thursday.

Revenue, on the other hand, rose 8.7% y-o-y to SAR 785.4 mn during the quarter, driven by a substantial 82.6% rise in Mlekoma sales, as well as maintaining the company’s market share in milk, tomato paste, and ice cream categories.

On a 1H basis, Sadafco’s bottom line was down 4% y-o-y at SAR 243.8 mn, while its top line widened 8.6% y-o-y to SAR 1.6 bn.

ELECTRICAL INDUSTRIES CO.-

ElectricalIndustries Company saw its net income jump 35.9% y-o-y to SAR 136.7 mn in 2Q 2025, spurred by sales increase and product diversification, which offset the impact of high selling and distribution expenses, it said in a Tadawul disclosure on Thursday.

Revenue grew 7.4% y-o-y to SAR 531.4 mn over the same period, backed by growing demand across all sectors, especially across high-voltage projects.

On a 1H basis, the company’s bottom line jumped 47.9% y-o-y to SAR 260.1 mn, while its top line inched up 0.1% y-o-y to SAR 1 bn.

EAST PIPES-

The East Pipes Integrated Company for Industry posted a 26.7% y-o-y rise in net income to SAR 90.3 mn in 1Q FY 2025-2026 (April through June) as sales volume went up and production costs per ton went down, it said in a disclosure to Tadawul. Revenue rose 5.7% y-o-y to SAR 385.2 mn during the same period.

East Pipes taps Mohamed Saleh Draweesh as acting CEO

The East Pipes Integrated Company appointed Mohamed Saleh Darweesh (LinkedIn) as its acting CEO until a permanent CEO takes the helm, according to a disclosure to Tadawul. Draweesh — who will assume his new role alongside his current position as CFO — brings over 25 years of experience in finance, having held several roles across both the public and private sectors in the region. He has been serving as CFO and Board Secretary at East Pipes since 2021.

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Al Kholood becomes first Saudi club under full foreign ownership + Al Zulfi, Al Ansar privatized

SPORTS-

Harburg scores first foreign takeover of a Saudi club: US-based sports-focused investor Harburg Group — led by foreign investor Ben Harburg — fully acquired Al Kholood Club for an undisclosed amount, marking the first complete takeover of a Saudi football team by a non-Saudi owner, the club said in a statement last Thursday.

ALSO- The ownership of Al Zulfi Club will transfer to Nojoom AlSalam company, while Al Ansar will go to the Awdah AlBiladi And His Sons company, the Sports Ministry said on X.

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We knew this was coming: The sale of Al Kholood was first announced last August as part of the second phase of the Kingdom’s football privatization program, launched in December 2023 to attract more local and foreign investors. Five other clubs were up for grabs in this round — Al Zulfi, Al Nahda, Al Okhdood, Al Ansar, and Al Orouba.

DEFENSE-

Sami partners with Turkish defense firms to locally manufacture military vehicles + land systems: PIF-owned Saudi Arabian Military Industries (Sami) signed three agreements with Turkish defense firms Nurol Makina, FNSS, and ASELSAN to start producing military vehicles and land systems locally, it said on LinkedIn on Thursday.

More details: The agreements cover the transfer of technology and expertise to manufacture 4x4 and 8x8 armored vehicles, as well as weapon turret systems. Production will take place at Sami’s new land systems facility, set to launch in late 2025.

DISPUTE WATCH-

The Capital Market Authority (CMA) compensated investors in the Watani Iron Steel case, distributing SAR 41.4 mn from a fund composed of illicit gains recovered from five individuals convicted in an April 2024 ruling, it said in a statement on Thursday. Some payouts exceeded SAR 1 mn. Investors not compensated through this fund can still file individual lawsuits.

Background: In April 2024, the Appeal Committee for Resolution of Securities Disputes convicted five investors of violating the Capital Market Law and its regulations, fining them SAR 3.5 mn and ordering four of them, along with a related company, to pay SAR 41.4 mn in illegal gains. The violations occurred before and after the company's direct listing on the Nomu-Parallel Market.

M&A WATCH-

Thimar development bows out of planned acquisition fund: Thimar Development Holding terminated its January agreement with Makkah-based livestock operator Jiyad Al Ezz to create a SAR 100 mn private equity fund for acquiring a 70% stake in Jiyad Al Ezz, it said in a disclosure to Tadawul on Thursday. No reason was provided for Thimar’s decision to terminate the contract.

Continuation funds boom as private equity faces a frozen exit market

Buyout firms are leaning more heavily than ever on continuation funds as traditional exits via IPOs or sales to outside buyers dry up, the Financial Times reports. Continuation funds accounted for USD 41 bn of exits in 1H 2025 — equal to 19% of all private equity sales, and 60% more than the same period last year, the FT reports, citing a recent report from investment bank Jefferies.

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That’s a record share as sponsors struggle to return capital to investors amid a prolonged slowdown in public listings and M&A agreements. The secondary market — where buyout firms and institutional investors can trade stakes — has also seen a boom in activity, with over USD 100 bn of holdings changing hands.

How it works: The continuation mechanism essentially allows the firm to sell portfolio companies to itself by transferring their assets to one of its internal funds. Investors can either cashout or roll over into the new vehicle. In theory, that gives buyers and sellers more time to realize value. In practice, it’s also a way to recycle capital and keep fee streams alive.

PE groups are holding upwards of USD 3 tn in unsold assets and are approaching a fourth year of subpar distributions to investors. “The exit environments are challenging and the IPO market is dormant,” Jefferies global co-head of secondaries Todd Miller told the Financial Times.

Despite the boom, continuation funds are not the preferred route for PE investors, with just one-sixth preferring continuation funds over traditional exits and nearly two-thirds saying they’d rather see sponsors sell via IPOs or M&A, according to a Bain & Co survey.

Still, it’s here to stay: Jefferies’ global co-head of secondary advisory Scott Beck expects “most sponsors will plan to do one or two” continuation funds out of every new fund, calling them a “bona fide exit route.”

TASI	10,946	-0.4% (YTD: -9.1%)
MSCI Tadawul 30	1,408	-0.3% (YTD: -6.7%)
NomuC	26,898	+0.5% (YTD: -14.5%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	34,125	+1.0% (YTD: +14.7%)
ADX	10,340	+0.4% (YTD: +9.8%)
DFM	6,150	+0.6% (YTD: +19.2%)
S&P 500	6,389	+0.4% (YTD: +8.6%)
FTSE 100	9,120	-0.2% (YTD: +11.6%)
Euro Stoxx 50	5,352	-0.1% (YTD: +9.3%)
Brent crude	USD 68.44	-1.1%
Natural gas (Nymex)	USD 3.11	+0.5%
Gold	USD 3,393	-1.1%
BTC	USD 117,970	+0.3% (YTD: +16.1%)
Sukuk/bond market index	913.77	0.0% (YTD: +1.3%)
S&P MENA Bond & Sukuk	146.17	0.0% (YTD: +4.5%)
VIX (Volatility Index)	14.93	-3.0% (YTD: -14.0%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.4% on Thursday on turnover of SAR 4.9 bn. The index is down 9.1% YTD.

In the green: Azm (+10.0%), Northern Cement (+6.3%) and Obeikan Glass (+6.2%).

In the red: Sport Clubs (-7.3%), Gulf Union Alahlia (-4.6%) and Care (-3.5%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.5% on Thursday on turnover of SAR 22.3 mn. The index is down 14.5% YTD.

In the green: Apico (+17.7%), Amwaj International (+9.9%) and TMC (+9.9%).

In the red: Alrasheed (-3.3%), Mulkia (-3.1%) and Nofoth (-2.7%).

CORPORATE ACTIONS-

First Milling’s board approved distributing SAR 81.7 mn in dividends for 1H 2025 at SAR 1.48 per share, according to a disclosure to Tadawul. The distribution date is set for 20 August.

CALENDAR

JULY

8 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.

31 July (Thursday): Deadline for companies with SAR 40 mn in revenues from goods and services during June and 2Q 2025 to integrate e-invoicing solutions with Fatoora.

31 July (Thursday): Deadline for companies to register for the ASICS Innovation Pitch competition.

AUGUST

5 August (Tuesday): Saudi Aramco to publish 2Q 2025 earnings.

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

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

3Q 2025

The National Water Company is expected to award a construction contract for the Hail Region Water Networks project.

SEPTEMBER

3-4 September (Wednesday-Thursday): Sustainable Maritime Industry Conference (SMIC), Ritz-Cartlon, Jeddah.

9-11 September (Tuesday-Thursday): International Beauty Expo 2025, Jeddah Superdome.

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 October (Wednesday): Electronic salary transfer via the Musaned platform to include employers with two or more domestic workers.

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

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

15 October (Wednesday): Russian-Arab Summit.

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

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

24 October-1 November (Friday-Saturday): AlUla Wellness Festival.

26-27 October (Sunday-Monday): The Global Proptech Summit 2025, Mandarin Oriental Al Faisaliah, Riyadh.

27-30 October (Monday-Thursday): Global Health Exhibition, Riyadh Exhibition and Convention Center, Riyadh.

28-30 October (Tuesday-Thursday): Future Investment Initiative (FII9), King Abdulaziz International Conference Center (KAICC) and the Ritz-Carlton, Riyadh.

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

NOVEMBER

2 November (Sunday): Naming ASICS Innovation Pitch competition’s six finalists.

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

8-9 November (Saturday-Sunday): Del Monte Superleague Supercup, Jeddah.

11-13 November (Tuesday-Thursday): TouriseSummit, Riyadh.

17-20 November (Monday-Thursday): Cityscape Global, Riyadh Exhibition and Convention Centre, Riyadh.

22 November (Saturday): The Ring IV, ANB arena, 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.

24-26 November (Monday-Wednesday): Metropolis Madinah Conference for civilizational capitals, King Salman International Convention Centre (KSICC), Al Madinah.

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

28-30 November (Friday-Sunday): UIM F1H2O World Championship, Jeddah.

30 November (Sunday): Zatca 21st E-invoicing 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.

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

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

31 December (Wednesday): Cancellation of Fines and Exemption of Financial Penalties Initiative by the Zakat, Tax and Customs Authority (Zatca) deadline.

December: Made in Saudi exhibition, Riyadh International Convention and Exhibition Center, Riyadh

2026

JANUARY

1 January (Thursday): Electronic salary transfer via the Musaned platform becomes mandatory for all domestic workers in the Kingdom.

13-15 January (Tuesday-Thursday): Future Minerals Forum, King Abdul Aziz International Conference Center, Riyadh.

20 January (Tuesday): SuperReturn Saudi Arabia, Hotel Fairmont, Riyadh.

18-21 January (Sunday-Wednesday): Saudi Hospital Design and Build Expo, Riyadh.

26-27 (Monday-Tuesday): GPRC Summit, Riyadh.

26-28 (Monday-Wednesday): Saudi Franchise Expo (SFE), Riyadh Exhibition and Convention Centre, Riyadh.

26-28 (Monday-Wednesday): Real Estate Future Forum, Four Seasons Hotel, Riyadh.

27-28 (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh.

28 (Wednesday): Data Center Nation Riyadh, Riyadh.

28-30 (Wednesday-Friday): Jeddah International Travel and Tourism Exhibition (JTTX), Jeddah.

FEBRUARY

2-4 (Monday-Wednesday): Saudi Media Forum, Riyadh.

2-4 (Monday-Wednesday): Women Leaders Summit and Awards KSA, Riyadh.

3-4 (Tuesday-Wednesday): RLC Global Forum Annual Meeting, Riyadh.

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

11 (Wednesday) Digital Transformation Summit Saudi Arabia (DTS), Riyadh.

11-14 (Wednesday-Saturday): JeddaDerm, Jeddah.

13-14 February (Friday-Saturday): Jeddah E-Prix 2026, Jeddah.

MARCH

31 March (Tuesday): Zatca’s 23rd E-invoicing integration wave deadline.

APRIL

27-29 April (Monday-Wednesday): Aluminum Arabia, The Arena, Riyadh.

OCTOBER

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

Signposted to happen sometime in 2026:

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

Signposted to happen sometime in 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.

Signposted to happen sometime in 2Q 2027:

The Hail Region Water Networks Project is expected to be completed.

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