Good morning, ladies and gents. We’re kicking off the week with a debt-heavy morning, as Bank Al Bilad enters the fray with its own plans for an international debt issuance after similar programs from listed heavyweights last week. Stc also moved forward with its sukuk issuance, pricing the USD 2 bn offering, while Riyad Bank and Al Rajhi Bank both closed issuances at the end of last week.

The lead story of the morning, however, is Sabic slimming down amid an industry slowdown, with the chemicals manufacturer divesting businesses in Europe and the Americas in a move valued at USD 950 mn.

^^ We have both of these stories in detail in this morning’s news well, below.

Watch this space

YEMEN — Southern Yemeni leaders convening in Riyadh announced the dissolution of the Southern Transitional Council (STC), with an upcoming conference in the Kingdom scheduled to pursue a solution to the southern cause, Yemen’s state news agency Saba reported on Friday. The leaders said they have been excluded from decisions regarding the military operation in Hadhramaut and Al Mahra, which “harmed southern unity and caused damage to the relationship with the coalition led by the Kingdom of Saudi Arabia.”

Saudi Defense Minister Prince Khalid bin Salman hailed the “brave” move, adding that the Kingdom is bringing together southern leaders under an internationally-backed, peaceful framework, he said on X. Yemen’s government and Shura Council also voiced support for the move.

IN CONTEXT- STC leader Aidarous Al Zubaidi had been expected to join his council in Riyadh before fleeing the country on Wednesday to Abu Dhabi through a UAE-managed covert operation through Somaliland and Mogadishu, Spokesperson of the Saudi-led coalition Turki Al Malki said on X. Al Zubaidi’s absence from Riyadh prompted the Presidential Leadership Council to expel him from Yemen’s internationally recognized government and refer him to the public prosecutor on charges of high treason and armed rebellion.

While Al Zubaidi made no public appearance since his flight, some STC figures — including its spokesperson Anwar Al Tamimi — rejected the dissolution, arguing that such a decision “can only be taken by the entire council, including its leader.” They called for mass protests in Aden, challenging the Saudi-backed Yemeni government, which now controls the city and imposed a curfew for security reasons.

A rapid reversal: The recent turn of events unfolded after the STC — formerly backed by the UAE — seized the country’s largest provinces last month, only to be pushed back by the Saudi-backed government, losing control of its interim capital Aden.

OIL — Saudi crude oil sales to East Asia are expected to remain above normal levels after Aramco cut prices for the third consecutive time last week, signaling oversupply concerns, Bloomberg reports, citing unnamed traders. Asian buyers outside China — including Japan and South Korea — will receive at least an additional 9 mn bbl for February loading, lifting shipments to at least 15% above the recent average of 2.1 mn bbl / d, the business news service reported, citing data from maritime analytics platform Kpler.

ALSO- India is set to receive an additional 2 mn bbl — about 10% above its average monthly volume — while China’s February purchases are projected at around 48 mn bbl, slightly trailing January levels. The price cuts have made Saudi crude competitive with regional spot grades as Middle East oil markets remain weak, price differentials collapse, and Dubai futures trade at a premium to immediate supply.

ICYMI- Aramco reduced the Arab Light premium to USD 0.30 above the Oman / Dubai benchmark and trimmed prices for heavier grades. The cuts landed as Opec+ stuck to its plan to pause supply increases in 1Q. Benchmarks fell roughly 20% last year, with Brent logging its worst annual drop since 2020, as concerns over a global glut overwhelmed cartel discipline.

Data point

64 GW — that’s the total renewable energy capacity tendered by the Kingdom as of the end of 2025, with 12.3 GW connected to the national power grid, the Energy Ministry said on X on Thursday. Last year alone saw the Kingdom tender 20.6 GW. Battery energy storage systems are also scaling up, with 30 GWh tendered as of the end of last year, of which 8 GWh are already connected to the grid, the ministry said in a separate post.

***You’re reading EnterpriseAM Saudi, your essential daily roundup of business, economics, and must-read news about Saudi, delivered straight to your inbox. We’re out Sunday through Thursday by 7am Riyadh time.

EnterpriseAM Saudi is available without charge thanks to the generous support of our friends at Tas’heel and Hassan Allam Properties.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on saudi@enterpriseAM.com.

DID YOU KNOW that we also cover Egypt, the UAE, the MENA logistics industry, and the MENA <> India corridor?

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM Saudi delivered every weekday.
***

The big story abroad

No single story has captured the attention of the global business press, but there are a handful worth noting.

US President Donald Trump is already moving to ringfence Venezuela’s oil wealth, following last week’s abduction of the country’s president, Nicolas Maduro. Trump signed an executive order to block creditors and courts from seizing Venezuelan oil revenue held in US Treasury accounts, declaring the funds sovereign property held for diplomatic use.

The news comes as US oil majors showed signs they’re not big on Venezuela, with Exxon CEO Darren Woods reportedly having told Trump that Venezuela “ is uninvestable.”

CLOSER TO HOME- Anti-government protests in Iran are growing, with clashes between civilians and security forces having left at least 65 dead and over 2.3k arrested. Demonstrations that began over a currency collapse have evolved into a nationwide demand to topple the clerical system.

What to watch for this week: Tuesday’s US inflation data could show a “false” heating up after November’s “muddy” figures. Economists expect the December Consumer Price Index to tick up to 2.7% y-o-y, primarily as a technical correction to November data that was distorted by the Federal government’s shutdown.

ALSO WORTH READING- Nvidia has become the poster child of a shifting AI boom, but the Financial Times asks if its USD 4.5 tn valuation rests on what some criticize as a “Ponzi scheme” of circular transactions.