Acwa Power + Scope Properties ramp up investments in Egypt

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Saudi Arabia rises in Emerging Markets Logistics Index + Al Essa Trading to go public within three years

Good morning, ladies and gents, and a happy hump day. Riyadh is riding high today as it plays host to the most significant talks between the US and Russia since the war in Ukraine broke out, along with Saudi companies ramping up their energy and hospitality investments in Egypt. The Capital Markets forum also continues today, with the first day seeing a strong digital push. Let’s dive in.

HAPPENING TODAY-

#1- The FutureInvestment Initiative (FII) kicks off today in Miami, bringing together top investors, CEOs, world leaders, policymakers, entrepreneurs, and academics. The event wraps up tomorrow.

#2- The three-day Saudi Media Forum begins today at the Hilton Riyadh and is set to conclude on Friday. The event gathers leading local and international media professionals to discuss strategic partnerships, digital media, green technology in media, podcasting, the 2034 World Cup, and the impact of AI on media.

#3- Derayah Financial is distributing SAR 7.5 mn in 3Q 2024 dividends today at SAR 0.07 per share, it said in a disclosure to Tadawul.

WEATHER- A cloudy Riyadh is looking at a high of 17°C and a low of 11°C today, while rain is expected over in Jeddah with the mercury set to peak at 29°C and hit a low of 23°C. Meanwhile, Dammam will see some showers and a high of 21°C high and a 12°C low.

WATCH THIS SPACE-

#1- Textile manufacturer Al Essa Trading Company is preparing to go public within the next three years, CEO Ahmed bin Mohsen told Aleqtisadiah. “We have a great interest in publicly offering the company, and senior management and board members are currently working on it,” Mohsen added.

About Al Essa: The Riyadh-based company has manufactured textiles for over 50 years, specializing in men’s clothing. In 2024, the company reported revenues exceeding SAR 70 mn, buoyed by growing sales on the back of Saudi authorities making traditional clothing (thobe, ghutra, and agal) mandatory for high school students. The dress code was enforced in August by Jeddah University, among others. Al Essa is looking to raise its revenues a further 50% this year.

#2- Saudi Arabia rose two spots in Kuwaiti logistics giant Agility’s annual Emerging MarketsLogistics Index (pdf) this year, ranking as the fourth most-attractive emerging market globally. The Kingdom is also the second highest-ranked country in the Mena region, after the UAE. China and India maintained their position in the top two spots in the ranking, while Myanmar and Venezuela are the lowest-ranked countries.

How it’s measured: The index surveys 830 executives from the logistics industry to assess the performance of 50 emerging markets based on four criteria: domestic logistics potential, international logistics potential, business fundamentals, and digital readiness.

Strong fundamentals across the board: Saudi Arabia rose three spots to come in fourth place in the domestic potential subindex and climbed up one place to rank fifth in terms of international potential. The Kingdom ranked third globally for best business fundamentals and came in fifth place in the digital readiness category.

Leading the way in economic diversification: Saudi Arabia, after the UAE, recorded the highest level of progress in diversifying over the past decade, with around 25.9% of respondents saying the country has repositioned itself into a global hub for trade.

DATA POINTS-

#1- Industrial and mining investments in Wa’ad Al Shamal have exceeded SAR 80 bn, with an additional SAR 50 bn earmarked for future phosphate projects, state news agency SPA quotes Industry and Mineral Resources Minister Bandar Alkhorayef as saying. Meanwhile, government investments in mining infrastructure networks in Wa’ad Al Shamal and Ras Al Khair have reached SAR 100 bn.

The Phosphate 3 project in Waad Al Shamal, whose construction has just kicked off, is expected to raise phosphate production in Saudi Arabia to 9 mn tons annually. This would place the Kingdom as the world’s second-largest exporter of phosphate fertilizers, with plans to reach an output of 20 mn tons a year by 2040, with investments totaling SAR 130 bn.

#2- Home ownership in the Kingdom rose to 64% by the end of 2024, with 1k real estate developers being certified over the past three years, state news agency SPA reported citing Real Estate General Authority CEO Abdullah Al Hammad. The 2022-2024 period also saw the issuance of 360 off-plan licenses, contributing to some 200k housing units.

OIL WATCH-

Brent crude futures closed at USD 75.82 / barrel yesterday to break a three-day losing streak, Reuters reports. Futures inched up 0.8% in yesterday’s trading, with supply shocks in Russia and the US balanced out by optimism that Russia and Ukraine could end their war soon.

REMEMBER- Opec+ has been mulling another delay of a series of monthly supply increases that are set to begin in April, with some fearing that global markets are too unstable to absorb a production increase. This would mark the fourth time that the group has decided to put off rolling back production caps which first came into effect in 2022.

The Kingdom’s crude production decreased 0.2% m-o-m in December to 8.9 mn barrels per day (bbl / d), according to J oint Organisations Data Initiative (Jodi) data. Crude exports dipped 1% during the same period to 6.2 mn bbl / d.

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THE BIG STORY ABROAD-

Talks on the Russia-Ukraine war held in Riyadh are in the spotlight this morning, as senior delegates from the US and Russia agreed to start laying the groundwork for an agreement that ends the war.

Saudi Arabia hosted talks between senior US and Russian officials yesterday, spearheaded by US Secretary of State Marco Rubio and Russian Foreign Minister Sergei Lavrov. The two sides agreed to chart a way towards normalizing their diplomatic missions and ending the Ukraine war.

** We have the full story in the news well, below.

MEANWHILE IN GAZA- Israel confirmed negotiations on the second phase of the ceasefire agreement will begin this week, after securing an agreement in Cairo that will see Hamas release six living captives instead of three next Saturday. Israeli Foreign Minister Gideon Saar said Israel will reject any arrangements that do not involve disarming Hamas and all other factions, adding that rule in Gaza will not be transferred to the Palestinian Authority. (Bloomberg | Reuters)

Acwa Power has another mega wind farm brewing in Egypt

Acwa Power expands its wind energy portfolio in Egypt: Renewables giant Acwa Power is setting up a 2 GW wind farm in Egypt’s South Hurghada at a cost of SAR 8.6 bn (c. USD 2.3 bn), Energy Minister Abdulaziz bin Salman said during the first day of the Egypt Energy Show (EGYPES). The company inked a power purchase agreement with the Egyptian Electricity Transmission Company for the project, he added.

Acwa has another big wind farm in the works: Acwa Power and Egypt’s energy and infrastructure leader Hassan Allam Utilities are also setting up a USD 1.2 bn, 1.1 GW wind farm in the Gulf of Suez. The project reached a financial close earlier this year and is expected to kick off commercial operations in 2Q 2027.

ICYMI- The European Bank for Reconstruction and Development (EBRD) approved a USD 275 mn syndicated loan for the project in late 2024. The companies were reportedly set to secure close to USD 900 mn in financing by the end of 2024 for the project.

PLUS- Saudi Arabia and Egypt signed an executive plan that should see the two sides set up a program for energy efficiency, look into setting up a joint entity to implement energy efficiency projects, and exchange expertise in the field, according to statements from the Saudi Energy Ministry and the Egyptian Oil Ministry.

Scope Properties to invest USD 190 mn in two hotels on Egypt’s Mokattam Corniche

Al Swailem Holding Group’s subsidiary Scope Properties will set up two hotels on Egypt’s Mokattam Corniche with investments of USD 190 mn, Scope Properties’ Managing Director Alaa Khedr told Asharq Business. Under the plan, Scope Properties will build a USD 120 mn, 250-key hotel and another USD 60 mn, 150-key hotel. Scope also launched an EGP 5 bn commercial project in Mokattam called A40 that will house retail and administrative units, as well as clinic units, Al Mal reports.

The investments are part of a wider plan to develop the Mokattam Corniche in partnership with Egypt’s state-owned El Nasr Housing and Development under a 2022 agreement. Al Swailem will contribute half of the project’s USD 1.7 bn price tag, with the other half financed by Saudi Exim Bank, Khedr said. The project is expected to generate some EGP 125 bn in revenues over nine years, El Nasr’s CEO Mohamed Abdel Maksoud told Asharq Business.

US, Russia talk in Riyadh to end Ukraine war

The Kingdom hosted talks between senior US and Russian officials yesterday, as part of its “efforts to promote global peace and security,” according to a post on X from the Foreign Ministry. Crown Prince Mohammed bin Salman met with Lavrov yesterday in Riyadh to discuss enhancing ties between Saudi and Russia, state news agency SPA reports. The Crown Prince also met with Rubio on Monday, ahead of yesterday’s talks.

The two sides agreed to resolve bilateral issues and chart a way towards normalizing their diplomatic missions, while also committing to setting up “high-level teams” to work on a path to ending the Ukraine war “in a way that is enduring, sustainable, and acceptable to all sides,” according to a statement from the US Department of State. They also agreed to explore future cooperation on geopolitical, economic, and investment opportunities emerging from a successful resolution to the war, the statement added.

Who was there? The US delegation was led by US Secretary of State Marco Rubio, who was joined by Trump’s National Security Advisor Mike Waltz and White House Middle East Envoy Steve Witkoff. Meanwhile, the Russian side was headed by FM Sergei Lavrov and Putin’s foreign policy advisor Yuri Ushakov, as well as Russia’s sovereign wealth fund CEO Kirill Dmitriev.

What about Europe? The EU, notably absent from the talks, is set to join the table “at some point” to iron out details related to sanctions imposed on Russia due to the war, Rubio said.

Ukraine is not on board: “Nobody decides anything behind our back,” Ukrainian President Volodymyr Zelensky said in a press conference after the US-Russia meeting was concluded. Zelensky, who was due in Saudi today for a separate trip, postponed his visit to the Kingdom in a move to avoid “any coincidences.” Zelenskiy had expressed his displeasure at not being invited to yesterday’s talks and stated that Ukraine will not recognize any settlements reached without its involvement.

Highlights from the Capital Markets Forum’s first day

The three-day Capital Markets Forum — organized by Saudi Tadawul Group — kicked off yesterday at Riyadh’s KAFD Conference Center. The event, held under the theme “Powering Connections”, aims to showcase the Kingdom’s growing capital market while featuring panel discussions on topics including digital transformation, ESG investments, regional economic integration, and market diversification.

TADAWUL IS GOING DIGITAL-

#1- Tadawul rolls out IPO management platform to boost equity market efficiency: The Saudi Exchange Company launched a new Capital Management System (CMS) designed to streamline IPOs, it said in a statement. The platform will now be fully implemented on the main market after a successful pilot phase on Nomu, enabling direct subscriptions for a wide range of securities.

The new features: Investors can subscribe to IPOs directly from their existing portfolios without opening new accounts. Issuers would also benefit from shorter listing timelines and access to a broader investor base, which the company hopes would help drive stronger demand for new offerings while reducing administrative overhead for financial institutions.

#2- The Securities Depository Center (Edaa) also rolled out a new platform, Edaa Connect, to digitally register all investment funds — starting with public funds — in a bid to broaden investor access and boost participation in the domestic capital market, according to a press release (pdf). The new platform is set to serve as a central hub for subscription and redemption of mutual fund investments to both individual and institutional investors.

Also in the pipeline: Edaa plans to introduce omnibus accounts for the stock market, the group’s CEO Hanan Al Shehri told Al Arabiya Business on the sidelines of the ongoing Capital Markets Forum in Riyadh. The new accounts would allow asset managers to hold multiple client portfolios under a single account, Al Shehri added.

INSIGHTS FROM THE FORUM-

#1- Tadawul ranked ninth globally in 2024 for primary market activity and seventh for returns from listings, Capital Market Authority (CMA) board of directors member Abdulaziz bin Hassan said during the ongoing Capital Markets Forum in Riyadh, according to Al Arabiya. The year also saw a 37% y-o-y increase in turnover on the Saudi market and a 24% y-o-y rise in the profitability of listed companies — excluding Aramco.

The outlook for 2025: Some 55 listing requests have already been submitted this year, bin Hassan added, with 15 already approved as the bourse is expected to have a “record year” for listings, Tadawul CEO Mohammed Al Rumaih tells Reuters. Companies in the aviation sector are expected to go public soon, bin Hassan said, without providing further information. Another 100 listing applications are currently in the pipeline to be submitted to the CMA.

ALSO- Fed rate cuts to give a boost to regional stock markets: EFG Hermes Co-CEO Mohamed Ebeid expects the US Federal Reserve to cut interest rates by 100 bps in 2025, which he thinks would bode well for regional stock markets. Lower interest rates will drive investments in mortgage, banking, and consumer sectors, he told Al Arabiya.

Momentum to continue through this year: Saudi Arabia — which led EFG Hermes’ IPO activity in 2024 with six offerings worth USD 20 bn — is expected to dominate listings again in 2025, with a focus on consumer, education, and healthcare sectors, Ebeid said.

#2- The Kingdom is looking to convert some of its bank debt into tradable securities, in a move aimed at boosting liquidity and trading activity in the domestic capital markets, Argaam reports citing a speech by Investment Minister Khalid Al Falih. The initiative falls under broader efforts to diversify local financing channels and drive investor participation in the Saudi debt market, which currently represents just 4% of GDP — well below the G20 average of 40%, Al Falih added.

What this could mean for the markets: The plan to convert bank debt into tradable securities could inject new life into the local capital markets, by expanding the range of investment products thereby attracting more institutional and retail investors, and driving up engagement.

GCC to see 3.5% GDP growth in 2025 -Emirates NBD

Headline growth in the GCC is expected to accelerate to 3.5% y-o-y this year, up from an estimated 1.6% in 2024, on the back of the continued strength from the non-oil sector, particularly in Saudi Arabia and the UAE, Emirates NBD said in its Global Investment Outlook report (pdf).

Saudi Arabia and the UAE are leading the growth: The GCC’s non-oil economy is seen growing by 4.3% this year, up from an estimated 4.0% in 2024, primarily driven by non-oil sector growth in the UAE and Saudi Arabia — where growth is projected to hit 5.0% and 4.5%, respectively. “Both countries are benefitting from growing populations, strong levels of project developments from both the public and private sectors, expanding tourism industries, and the growth of nascent tech industries,” the report reads.

REMEMBER- Emirates NBD’s forecast is only slightly more optimistic than that of the World Bank, which penciled in a prediction of 3.4% growth for the bloc this year, and 4.1% growth in 2026. The World Bank sees the Kingdom’s economy growing to 3.4%, while the IMF recently slashed its growth predictions to 3.2% in its recent World Economic Outlook Update.

Interest rates are also expected to fall, which would help increase household consumption, expand business investment, and support expansionary budgets, the report said.

Opec+ cuts could keep budgets restrained: The recent decision to extend Opec+ production cuts is expected to keep budgets in the GCC restrained, with the bank predicting the cuts to come in tandem with a 9% drop in brent futures to USD 73 per barrel, down from an estimated USD 79.9 per barrel in 2024. However, the bank sees GCC governments continuing to spend despite slowed oil revenues, causing a fiscal deficit across the bloc in 2025.

REMEMBER- Opec+ decided in December to push back the start date of production increases by three months to April 2025, with the overall production increases slated to be gradually implemented until the end of 2026.

The deficit situation: Emirates NBD sees Saudi Arabia recording a deficit in 2025, with the bank penciling in a prediction of the Kingdom’s budget deficit widening to 5.6% of GDP. Bahrain, Kuwait, and Oman are also seen recording deficits this year. Meanwhile, the UAE and Qatar are expected to record budget surpluses this year — albeit smaller than 2024.

Inflation to remain mostly unchanged: Emirates NBD expects inflationary pressures to remain constant in 2025, predicting an average 2.1% inflation rate for the second consecutive year across the bloc. The drivers of inflation across the GCC are different, with Saudi Arabia and Dubai seeing considerable increases in their housing prices — averaging almost 7% and 9% respectively between January and November. Meanwhile, the effects of disruptions to supply chains through the Red Sea and Suez Canal were more apparent in smaller economies, including those of Bahrain and Kuwait.

FinMin closes SAR 3.07 bn February sukuk issuance

The Finance Ministry closed its February sukuk issuance, raising SAR 3.07 bn from fixed-income investors, down from SAR 3.7 bn raised in January, according to a National Debt Management Center statement (pdf). This is part of the government’s SAR-denominated sukuk program.

February’s issuance was structured in four tranches:

A four-year tranche valued at SAR 585.4 mn with a 5.0% yield;
A seven-year tranche valued at SAR 1.7 bn with a 5.11% yield;
An 11-year tranche valued at SAR 403.9 mn with a 5.21% yield;
A 14-year tranche valued at SAR 375.6 mn with a yield of 5.29%.

IN CONTEXT- The Kingdom’s borrowing plan for FY 2025 outlined a requirement for some SAR 139 bn in new public debt. The targeted amount is intended to bridge an anticipated SAR 101 bn budget deficit penciled in for the new fiscal year, in addition to covering some SAR 38 bn required to meet principals’ repayments for loans maturing during the period.

Cabinet approves Land Transport Law

The Council of Ministers approved the new Land Transport Law during its meeting yesterday, state news agency SPA reports. The law aims to regulate transport activities, facilities, and infrastructure across the Kingdom, according to a post on X from the Transport General Authority (TGA). Although neither Cabinet nor TGA provided details on the specifics of the law’s articles, TGA noted that the 34-article law will cover licensing for all land transport — including vehicles and drivers — and related penalties.

Also approved at yesterday’s weekly meeting yesterday:

An MoU on energy cooperation with Finland;
A sports cooperation MoU with the Maldives;
A security cooperation agreement with Guinea;
A general cooperation agreement with Moldova;
A political consultations MoU with Rwanda;
A tourism cooperation MoU with Georgia;
An air transport services agreement with Belarus.

Sabic Agri-Nutrients, First Mills, Zain post 2024 earnings

It was another busy day for earnings in Saudi Arabia, with Sabic Agri-Nutrients, First Mills, and Zain among those releasing their 2024 financials.

SABIC AGRI-NUTRIENTS-

SabicAgri-Nutrients saw its net income fall 9.1% y-o-y in 2024 to SAR 3.33 bn, according to an earnings release (pdf). The falling net income was “primarily due to lower average sale prices and higher cost of goods,” including feedstocks, CEO Fahad Al Battar said. Despite the drop, the figure surpassed analyst expectations of SAR 3.24 bn, according to Asharq Business. Revenues for the year edged up 0.3% y-o-y to SAR 11.06 bn, supported by a 3% rise in sales volumes to 7.2 mn tons, partially offset by a 3% decline in average selling prices.

In 4Q 2024, the company’s net income fell 2% y-o-y to SAR 954 mn, while revenue grew 2% to a little over SAR 3 bn.

Looking ahead: A seasonal slowdown in 4Q 2024 in fertilizer demand “left fourth quarter urea trade largely dependent on tender-based sales,” the company said, but demand is expected to pick up in 2025. The outlook is driven by high import tenders and supply constraints amid winter gas shortages and limited Asian exports.

REMEMBER- Sabic was among the companies that S&P Global expected to be relatively insulated from Aramco’s fuel and feedstock price hikes, with marginal increases in production costs anticipated from 1Q 2025. The company is well-positioned to absorb these hikes with minimal strain, leveraging operational efficiency and some cost pass-through, S&P said.

In the pipeline: The company is conducting feasibility and technical studies to finalize its investment decision for a low-carbon ammonia plant in Jubail Industrial City. The facility will produce 1.2 mn tons of low-carbon ammonia and 1.1 mn tons of urea and specialized agri-nutrients annually. It has already lined up approval from the Energy Ministry in July 2024.

ZAIN-

Zain KSA’s net income fell 53% y-o-y to SAR 596 mn in 2024, it said in a disclosure to Tadawul. The telecom company’s net income fell y-o-y due to rising operating expenses and ECL costs, as well as an unfavorable base effect on the back of a SAR 1.1 bn one-off gain in 2023 from tower sale and leaseback agreements. Zain’s EBITDA was up 11.6% in 2024 to SAR 3.3 bn. 2024 revenues hit SAR 10.4 bn, rising 4.9% y-o-y and marking an all-time high.

On a 4Q basis: Zain KSA rebounded into the black in 4Q 2024, posting net income growth of 607% y-o-y at SAR 274 mn, according to Argaam. Revenues followed the positive trend with 6% y-o-y growth at SAR 2.7 bn.

ALSO- The telco’s board greenlit the distribution of SAR 449.4 mn in dividends to shareholders for 2024 at SAR 0.5 apiece, it said in a separate disclosure to Tadawul. The distribution date and eligibility criteria will be decided at the company’s next shareholders meeting.

REMEMBER- Zain KSA lined up a SAR 1.93 bn shariah-compliant loan with AlRajhi Bank last week to refinance its outstanding murabaha facility with the Finance Ministry. The five-year facility is backed by a promissory note and will be repaid in a single payment upon maturity in February 2030.

FIRST MILLS-

First Mills Company reported a 13.9% y-o-y increase in 2024 net income to SAR 250.9 mn, buoyed by higher feed and flour sales, expanding margins for small-packed products, improvements in cost-efficiency, and optimization of liquidity management, it said in a statement. Meanwhile, revenues for the year grew 8.8% y-o-y to SAR 1.1 bn, pushed by stronger feed and flour sales, higher gross income (up 10.4% y-o-y), and better product mixes and pricing strategies.

On a quarterly basis, First Mills’ net income grew 16% y-o-y in 4Q 2024 to SAR 57.5 mn, pushed up by across-the-board stronger sales and lower operating costs, while revenues saw 9% growth to SAR 269 mn, thanks to higher bran, feed, and flour sales.

REMEMBER- First Mills was the first milling company to go public in May 2023 with a USD 266 mn IPO as part of the government’s efforts to privatize the sector.

Hassana Investment’s Saad Alfadly reportedly set to exit CEO role

Hassana Investment CEO Saad Alfadly will reportedly step down from his position on 1 July, ending a 12-year tenure in the role, Bloomberg reports, citing an internal memo it says it has seen. A successor search is underway, though Alfadly is set to remain on the firm’s board.

About Alfadly: Alfadly led Hassana’s 2021 merger with the Public Pension Agency, positioning it among the top ten global pension fund managers. He oversaw global expansions, including a USD 1.5 bn investment in TPG’s climate funds and agreements with EIG and Brookfield. With over 25 years of experience, he previously held senior roles at NCB Capital, Morgan Stanley Saudi Arabia, and the Saudi Central Bank.

BinDawood closes Zahrat Al Rawdah Pharmacies acquisition

M&A WATCH-

BinDawood Holding completed the acquisition of Zahrat Al Rawdah Pharmacies for SAR 441.1 mn through a share sale and purchase agreement, according to a disclosure to Tadawul. The Tadawul-listed company secured a non-objection decision from the General Authority for Competition last month.

More details: The acquisition will allow BinDawood to include pharma products at its retail outlets, expanding its footprint in the health and wellness sector. Meanwhile, Zahrat Al Rawdah will retain its brand identity post-acquisition.

STARTUP WATCH-

Palm Ventures closed its first USD 30 mn investment fund, EntArabi reports. The fund will target MENA- and US-based early-stage startups in AI, fintech, and business solutions sectors, providing financial backing and strategic support.

ICYMI- Palm Ventures participated last October in a pre-seed funding round worth USD 7 mn for Riyadh-based fintech Mala Inc.

About Palm Ventures: The company started as a business unit for a consultancy firm in 2014, evolving into a standalone company in 2021. So far, the company has backed more than 40 MENA- and US-based startups while helping government agencies implement innovative solutions.

INFRASTRUCTURE-

PIF-owned National Water Company (NWC) doubled the capacity of Riyadh’s south wastewater treatment plant with the inauguration of the plant’s third phase, taking the plant’s capacity to 400k cubic meters of wastewater per day, it said in a statement. The expansion is part of the company’s SAR 387 mn (c. USD 103 mn) plan to boost its infrastructure, coverage, and efficiency.

Part of a bigger plan: The NWC pledged to invest EUR 200 bn by 2030 in projects that support its goal of providing safe and efficient water and sanitation. In addition, the company said last month it kicked off 376 new projects worth over SAR 28 bn aiming to increase coverage of water and sewage services across the Kingdom. The company launched water and sanitation projects worth SAR 11.6 bn (USD 3.2 bn) across the Kingdom’s Aseer, Qassim, and Al Baha provinces last year. It also awarded Alkhorayef Water and Power Technologies a SAR 220 mn project to add 125k cubic meters per day in capacity to its treatment plant in Dammam and carry out rehabilitation works for another existing plant in September.

MINING-

Three sites in Madinah and the Eastern province were designated for mining complexes, the Industry and Mineral Resources Ministry said in a post on X. The allocated sites include a 108.3 sq km area southeast of Madinah, and two sites spanning 4.8 sq km and 4.3 sq km in Khafji.

REMEMBER- Saudi Arabia has big mining plans: The ministry launched a SAR 685 mn incentive package last year as part of efforts to expand the sector and tap reserves of gold and phosphate, among others. The goal is to attract local and foreign mining investors amid the Kingdom’s push to become a global hub for metals critical for energy transition and become an EV manufacturing hub. The nation’s untapped mineral resources are worth c. USD 2.5 tn, or 90% more than the last forecast in 2016.

AVIATION-

Saudia’s air cargo arm Saudia Cargo inked a MoU with the Tourism Authority to boost logistics efficiency in the Kingdom by organizing regular workshops with relevant stakeholders, according to a statement on LinkedIn. The workshops will also focus on digital communication and knowledge exchange in the air cargo sector.

The S&P 500 hits fresh high

Tuesday was a good day for global markets, with both the S&P 500 and the Euro Stoxx 600 closing at all-time highs following a turbulent few weeks triggered by US President Donald Trump introducing new tariffs. The benchmark S&P 500 closed up 0.2% at a record 6,130 and the Euro Stoxx 600 closed at 558.

The rationale: “I think people are still trying to digest everything going on with not only tariffs and how that could impact things but also general valuations … We feel like the market is pretty expensive,” Villere & Co’s Sandy Villere told Reuters.

Investors are keeping an eye out for: The Federal Reserve’s next move. The odds of a rate cut took another hit after inflation came in hotter than expected in January, with the consumer price index rising 3% y-o-y, the highest increase since June.

“You've got not only the tariff situation, which I think is going to be more sabre-rattling and negotiating than anything long-term; the other thing is inflation that could be a little more stubborn than people think and I don't think the Fed can cut interest rates as fast as originally expected,” Villere added.

What about European markets? It wasn’t just the pan-European index that hit a fresh record yesterday, German’s benchmark index also hit a new record high after rising 0.2% — banking and defence stocks drove the rally, Reuters writes, adding that investors are hopeful peace talks between Russia and Ukraine will likely increase military spending.

MARKETS THIS MORNING-

It’s another morning with Asian markets mixed in early trading — Japan’s Nikkei is down 0.4%, the Hang Seng is down 0.4%, meanwhile the Kospi is looking at gains of 1.8% and the Shanghai Composite is up 0.5%.

TASI	12,334	+0.6% (YTD: +2.5%)
MSCI Tadawul 30	1,536	+0.9% (YTD: +1.7%)
NomuC	31,380	-0.8% (YTD: -0.3%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	30,588	+0.5% (YTD: +2.9%)
ADX	9,619	+0.7% (YTD: +2.1%)
DFM	5,375	-0.2% (YTD: +4.2%)
S&P 500	6,130	+0.2% (YTD: +4.2%)
FTSE 100	8,767	0.0% (YTD: +7.3%)
Euro Stoxx 50	5,534	+0.3% (YTD: +13.0%)
Brent crude	USD 75.82	+0.8%
Natural gas (Nymex)	USD 4.01	+7.6%
Gold	USD 2,955	+1.9%
BTC	USD 94,942	-1.6% (YTD: +1.5%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.6% yesterday on turnover of SAR 5.8 bn. The index is up 2.5% YTD.

In the green: Shaker (+5.8%), Nice One (+5.2%) and Zain KSA (+5.1%).

In the red: Anaam Holding (-5.1%), Almajed Oud (-3.6%) and Naseej (-3.6%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.8% yesterday on turnover of SAR 39 mn. The index is down 0.3% YTD.

In the green: NGDC (+9.3%), Sama Water (+7.3%) and Alrazi (+6.6%).

In the red: TMC (-8.7%), FAD (-8.7%) and Mobi Industry (-5.6%).

CORPORATE ACTIONS-

Al Wasatah Al Maliah (Wasatah Capital) will distribute SAR 5.3 mn in dividends for 2H 2024 at SAR 0.4 per share, it said in a disclosure to Tadawul. Eligible unitholders registered by the end of Wednesday, February 26, 2025 will receive their payments within 15 working days.

CALENDAR

EVENTS WITH NO SET DATE

1Q: BinDawood Holding expected to close 100% acquisition of Zahrat Al Rawdah Pharma.

FEBRUARY

17-19 February (Monday-Wednesday): IAAPA Middle East Trade Summit, Riyadh.

17-20 February (Monday-Thursday): Restatex, Riyadh International Convention and Exhibition Center.

18-20 February (Tuesday-Thursday): The Capital Markets Forum, KAFD conference centre, and the Four Seasons, Riyadh.

19 February (Wednesday): Derayah REIT dividend distribution.

19-21 February (Wednesday-Friday): Saudi Media Forum, Riyadh.

19-21 February (Wednesday-Friday): FII Priority Miami, Miami, USA.

21-22 February (Friday-Saturday): The Saudi Cup, Riyadh.

22 February (Saturday): Founding Day.

22 February (Saturday): Dazn Boxing event: Beterbiev vs Bivol II, Riyadh.

23-27 February (Sunday-Thursday): Riyadh International Disputes Week, Hilton Riyadh Hotel Granada.

24 February (Monday):Public Sector Excellence Forum, Movenpick Hotel & Residence Riyadh.

24-25 February (Monday-Tuesday): The Riyadh International Humanitarian Forum, Riyadh.

24-27 February (Monday-Thursday): Week two of Big 5 Construct Saudi, Riyadh Front Exhibition & Conference Center.

MARCH

1-30 March: Ramadan (TBC).

18-19 March (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.

31 March- 3 April (Monday-Thursday): Eid Al Fitr.

31 March (Monday): Deadline for applying to theReal Estate General Authority’s Regulatory Sandbox Program.

31 March (Monday): Deadline for applying to the World Intellectual Property Organization (WIPO) Global Awards 2025

APRIL

7-9 April (Monday-Wednesday): Sports Investment Forum (SIF), Riyadh.

3-20 April (Thursday-Sunday): AFC Asian U17 Cup.

13-14 April (Sunday-Monday): Human Capability Initiative (HCI) Conference, King Abdulaziz International Conference Center, Riyadh.

13-16 April (Sunday-Wednesday): EdgeX HCI, The Ritz Carlton, Riyadh.

14-16 April (Monday-Wednesday): Future Hospitality Summit, Mandarin Oriental Al Faisaliah, Riyadh.

18-20 April (Friday-Sunday): Saudi Arabian Grand Prix, Jeddah,

21-24 April (Monday-Thursday): Saudi Food Exhibition and Conference, Riyadh.

22-23 April (Tuesday-Wednesday): AAM Middle East, Riyadh.

23-25 April (Wednesday-Friday): Construction and Real Estate Development Exhibition, Jazan.

25 April- 4 May (Friday-Sunday): AFC Champions League Elite Finals

MAY

May: The World Intellectual Property Organization (WIPO) Global Awards 2025 announces its results.

6-7 May (Tuesday-Wednesday): Federal Open Market Committee meeting.

12-15 May (Monday-Thursday): Saudi Smart Manufacturing, Riyadh International Convention & Exhibition Center.

13-14 May (Tuesday-Wednesday): Global EV & Mobility Technology Forum, The Arena, Riyadh.

19-20 May (Monday-Tuesday): Tech-ecO-System Summit (ToSS), Riyadh.

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

31 May-5 June (Saturday-Thursday): Hajj.

JUNE

6-9 June ( Friday-Monday): Eid Al Adha.

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

26 June (Thursday): 2024-2025 academic year ends.

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

JULY

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

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

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

AUGUST

5-17 August (Tuesday-Sunday): Fiba Asian Cup.

SEPTEMBER

15-17 September (Sunday-Tuesday): Money 20/20 Middle East, Riyadh.

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

23 September (Tuesday): Saudi National Day.

OCTOBER

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

NOVEMBER

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

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

27-30 November (Thursday-Sunday): The World Rally Championship (WRC), Jeddah.

DECEMBER

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

4-13 December (Thursday-Saturday): Red Sea International Film Festval, Jeddah.

December: The Fortune Global Forum 2025, Riyadh.

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

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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