Good morning, everyone. We welcome the weekend with open arms and an issue light on major market news, with the exception of Dar Al Majed’s IPO attracting a massive SAR 135 bn in order, as investors rush to tap into the Kingdom’s real estate market.

HAPPENING TODAY-

Marketing Home subscription ends today: Institutional investors have until today to book a minimum of 50k shares and a maximum of roughly 800k shares in Marketing Home Group, which has set the indicative price range for its Tadawul IPO at SAR 80-85 per share. The company is offering 4.8 mn shares, representing 30% of its share capital, in a secondary sale.

REFRESHER- The IPO would raise SAR 408 mn, valuing the company at an implied SAR 1.36 bn at listing. Retail investors can subscribe on 19-20 August, with final allocations due on 24 August.

WEATHER- Riyadh is expected to see a high of 44°C and a low of 33°C today, while Jeddah is in for a humid day with temperatures as high as 38°C and as low as 31°C. Makkah will see a 41°C high and 34°C low.

PSAs-

The Education Ministry approved a return to the two-semester system for public schools starting in the 2025-2026 academic year, while keeping the overall academic calendar for the next four years unchanged, it said in a statement on Tuesday. The move follows a review of the three-semester model, which had raised the school year to 180 days, matching averages in many advanced countries.

Shifting the equation: A wide study involving teachers, students, and parents found that education quality depends more on key elements like teacher support, updated curricula, and better environments than the number of semesters. Private and international schools, as well as universities and technical colleges, can continue to use different systems.

WATCH THIS SPACE-

Abdul Lateef Jameel-backed Rivian and PIF-backed Lucid are facing headwinds rattling the US EV sector under Trump’s administration, delivering a sobering second-quarter earnings update this week, Reuters reported.

For Rivian, its cost per vehicle spiked roughly 8% to about USD 118.4k, driven by disruptions from China’s rare-earth metal export curb and dwindling regulatory-credit income in the face of US policy reversals. The company has raised its full-year adjusted core loss forecast to between USD 2-2.5 bn, while anticipating only a break-even gross margin rather than the modest net income it had previously banked on.

Lucid isn’t doing much better. Though it sidestepped rare-earth supply shocks by dipping into its inventory stock, tariffs significantly ate into its margins. Lucid cut its annual production forecast to 18-20k vehicles as demand softens and cost pressures mount, and posting a revenue of USD 259.4 mn, missing Wall Street’s target of USD 280 mn.

Looking ahead, both brands are banking on demand increasing after the 7.5k federal EV tax credit expires in October. Analysts expect a 3Q spike as buyers rush to beat the cutoff, but both companies warn of a soft landing in 4Q once incentives vanish.

ICYMI- Lucid will go online in two unnamed GCC countries next year, part of an expansionstrategy in the region, complementing its presence in the region besides the Kingdom and the UAE.

The Kingdom rolled out a VAT refund program for tourists and GCC nationals, allowing eligible visitors to claim back 15% tax on purchases over SAR 500 from more than 1.4k approved shops, Saudi Gazette reports. To qualify, the items must be for personal use, unused, and taken out of the country within 90 days. The refund doesn’t apply to services like hotels or meals, or items such as vehicles and tobacco.

We knew this was coming: The Kingdom updated VAT regulations in April, including provisions allowing tourists to claim VAT refunds on personal purchases when leaving the Kingdom.

SPORTS-

#1- Al Hilal has been fined SAR 500k and banned from the 2026-2027 Saudi Super Cup after pulling out of this year’s tournament, the Saudi Arabian Football Federation (SAFF) said in a statement. Al Hilal were set to face Al Qadsiah in the semis but will now be replaced by Al Ahli.

REFRESHER-Al Hilal withdrew from the 2025-2026 Saudi Super Cup last month due to scheduling conflicts following its participation in the Fifa Club World Cup, where playing in the Super Cup would violate mandatory 28-day player leave regulations.

#2- LIV Golf will tee off its 2026 season from 5 to 7 February at the Riyadh Golf Club, marking its second consecutive season launch in the capital, according to a statement. Early bird sales are now open for three-day grounds passes and Club 54 hospitality tickets.

Who to expect: Defending champions Adrian Meronk (Cleeks GC) and team Legion XIII, led by Jon Rahm, will headline alongside stars including Bryson DeChambeau, Brooks Koepka, Cameron Smith, and Dustin Johnson.

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THE BIG STORY ABROAD-

Front pages are dominated this morning with major trade shake-ups from the White House, a critical turning point in the Gaza war, and a mixed bag of corporate earnings.

Trump escalates tariff blitz on India and chips: US President Donald Trump raised tariffs onIndia to 50% to take effect starting 27 August, a punishment for its purchases of Russian oil which the White House says is fueling the war in Ukraine. Trump also said he is planning a potential 100% tariff on semiconductor chips from countries that do not have manufacturing operations in the US, a move seen as targeting China.

Tailored for Apple: The iPhone maker will be exempted from the potentially crippling chip tariff after CEO Tim Cook announced the company would increase its investment in US suppliers and jobs.

MEANWHILE- The earnings season pushes on:

ALSO- Israel on the brink of full Gaza occupation: Israeli Prime Minister Benjamin Netanyahu is reportedly pushing his security cabinet to approve a “full conquest” of the Gaza Strip. The push for a full takeover comes as Gazans are increasingly starving to death, and faces significant opposition from Israel’s own military chief Eyal Zamir, who warned that such an operation would put an unbearable weight on the Israeli army and endanger the remaining captives.

Also worth reading this morning:

  • Italian Prime Minister Giorgia Meloni’s government revived of a EUR 13.5 bn project to build the world’s longest suspension bridge linking Sicily to the mainland, framing it as part of the country's defense and NATO spending plans.
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