Almajed Oud draws in strong retail investor interest for Tadawul IPO

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Arabian Mills’ retail subscription period wraps today

Good morning, friends, and TGIT. We have another packed issue with which to end the week, leading with the latest news from Almajed for Oud’s IPO process, as well as financing updates from Acwa Power, and Aramco handing out more contracts to Milan-based Saipem.

PLUS- We have more coverage from EFG Hermes’ annual conference in London last week in this morning’s Spotlight, wherein Egyptian Financial Regulatory Authority Chairman Mohamed Farid discusses the developments and regulatory overhaul seen in the Egyptian market over the past several years.

** But first, a quick programming note: EnterpriseAM Saudi will be off next Sunday and Monday for a long weekend in observance of the National Day. Schools will also be closed on Sunday and Monday, while the Saudi Central Bank (Sama), the banks and institutions under its purview, and Tadawul will be off on Monday. We’ll be back in your inboxes at the usual time on Tuesday.

We’re five days out from the EnterpriseAM Finance Forum, which will be headlined this year by Investment Minister Hassan El Khatib, who’s joining us to outline a vision for where we’re going as a community and as an economy. The keynote interview will get underway at 9am sharp, and you won’t want to miss our exclusive networking breakfast from 8am.

Among the topics on the agenda, which you can view here:

Welcome to the hot seat — top industry CEOs set the tone by addressing the biggest (and toughest) questions of the day.
Looking from the outside in — what foreign investors and strategics think about Egypt right now.
The only asset class in town — It’s real estate or nothing. We’ll get into the ins and outs of the industry, how it’s financing itself, which areas (and price points) are next, and more.
Gazing into that crystal ball — The outlook for dealflow in 2025, from M&A and IPOs to securitization, FX and more.
A once in a generation opportunity? — A deep dive into the promise and pitfalls of the emerging energy economy.
Do we really love banking SMEs? — With NBFIs and fintech players staking their claims, banks are starting to take the SME market seriously.
The NBFI panel — The resilience of the Egyptian consumer is the business story of the decade. How are banks and NBFS players building sustainable businesses? What are the opportunities — and credit worries — in the B2B space?

** IMPORTANT NOTE — If you’ve already received your invitation on email, you *must* click through to confirm you’re attending.

HAPPENING TODAY-

The bookbuilding window for the retail tranche of Arabian Mills’ IPO on Tadawul’s main market ends today, the company said in a filing to Tadawul. Individual investors can subscribe to up to 10% of the flourmaker’s 15.4 mn shares on offer — good for a 30% stake — at SAR 66 apiece. The institutional portion of the offering closed 132x oversubscribed.

Zatca is hosting a live-streamed technical workshop on the next phase of e-invoicing integration at 2pm today, the authority said on X. The session will prepare companies for mandatory integration with Zatca’s Fatoora platform that’s set to start 1 March 2025. This is the latest phase of an e-invoicing rollout that began in late 2021. You can join the workshop here.

⚠️WEATHER WARNING- Thunderstorms are hitting parts of the Kingdom through to Sunday, with Al Baha, Asir, Jazan and areas of Makkah set to see the worst of it, while Najran and Madina will experience light to medium rain, the Saudi Civil Defense said in a post on X. Meanwhile, a sunny Riyadh will see a high of 38°C and a low of 27°C tomorrow and Jeddah’s mercury will hit a high of 37°C and a low of 31°C.

PSAs-

#1- Passports can be renewed electronically within the first six months of their issuance, the General Directorate of Passports said on X. Travel to Arab countries is allowed if your passport is more than three months away from expiry, while other countries require a minimum of six months’ validity, the directorate noted.

#2- Registration for PIF and Roshn Group’s Musahama Design Competition is open until Monday, 30 September. The competition invites emerging architects, recent graduates, and local design firms to design amenities for the Sedra Pedestrian Spine community. It features two tracks; one for Saudi final-year architecture students or recent graduates, and another for emerging Saudi architectural firms. The 14-week program includes professional webinars and workshops, with awards ranging from SAR 200k-400k, according to state news agency SPA.

#3- Registrations are open for the Madinah Industrial Exhibition: The Madinah Chamber of Commerce and Industry is calling on industrial project owners to register for the upcoming industrial exhibition in Madinah next month, via its online portal. The event will showcase local factory production to visitors, trade delegations and investors, offering prime marketing options.

WATCH THIS SPACE-

#1- Aramco eyes big LNG play: Aramco has set its sights on becoming a major player in the liquefied natural gas (LNG) market, Aramco Executive Vice President Abulkarim Al-Ghamdi said at a conference, according to Reuters. After expanding its stake in LNG company MidOcean Energy to 49%, the oil giant is pushing further into LNG ventures, including a recent 20-year offtake agreement with NextDecade.

#2- Bahri eyes LNG fleet expansion: Shipping giant Bahri is looking to build a fleet of 20-30 new LNG tankers in a bid to boost the Kingdom’s fuel supplies and meet rising global demand, Asharq Business quotes Bahri CEO Ahmed Ali Al Subaey as saying.

Details are scant: The company aims to build the fleet — which is set to carry LNG, hydrogen, and ammonia — through joint ventures with unnamed partners. No investment ticket has been disclosed, but the plan is set to be presented to the board of directors for approval next year.

#3- Chemical manufacturing company Al Battal Factory received approval from the Capital Market Authority to IPO on parallel market Nomu, according to a statement. The company plans to offer a 20% stake (670k shares) to qualified investors. The authority’s approval is valid for six months.

#4- Egypt could be looking to attract Saudi investments in its Ras Banas peninsula on the Red Sea, after months of talks on Saudi converting its deposits with the Central Bank of Egypt into investments, Reuters reports, citing a source from the country’s Finance Ministry. The PIF has more recently been directed by Crown Prince Mohammed bin Salman to facilitate USD 5 bn in investments into Egypt as part of the “first phase” of a larger program of investment.

IN CONTEXT- The Egyptian government is in the process of drafting an investment plan to offer the Red Sea’s Ras Banas to private sector players in a transaction similar to ADQ’s USD 35 bn Ras El Hekma development agreement.

MARKET WATCH-

Arabian United Float Glass (UFG) shares dropped 30% on their first day of trading on the Nomu parallel market, closing at SAR 37.8 apiece, according to market data. UFG took a 7% stake to market in an IPO that raised SAR 64.3 mn.

DATA POINTS-

#1- The number of trucks crossing Saudi’s borders through land ports rose 11.9% y-o-y in 1Q 2024 to 962.5k trucks, Aleqtisadiah reports, citing data by the Zakat, Tax and Customs Authority. The number of outbound trucks was up 12.7% at 478.7k, while inbound trucks grew 17% at 483.9k. Al Batha (connecting to the UAE) and Al Haditha (connecting to Jordan) land ports accounted for the lion’s share of all crossings, at 353.9k trucks and 115.8k trucks.

#2- Saudi’s ports saw a 14.6% y-o-y increase in container traffic in 2023, surpassing 5 mn TEUs, with 3.4 mn TEUs in imports and 2.2 mn TEUs in exports, according to the General Authority for Statistics’ (Gastat) Maritime Transports Statistics 2023 report (pdf). Ship traffic was up 33.8% y-o-y at 19k vessels, with King Fahad Industrial Port in Yanbu leading the pack at 6.5k vessels.

Passenger numbers rose 11.5% to over 1 mn, with Jazan Port recording the heaviest traffic. The total cargo handled reached 308.6 mn tons, with 203.5 mn tons outbound and 105.1 mn tons inbound. Jeddah Islamic Port led in imports, while King Fahad Industrial Port in Yanbu topped exports.

The Industry and Mineral Resources Ministry issued 32 mining licenses in July 2024, it said in a post on X. The licenses include 16 for exploration, 10 for building materials and quarries, three for surplus mineral ore, and three for exploitation.

SPORTS-

Al Nassr sacks Luis Castro as its manager after a 14-month stint with the Cristiano Ronaldo-led team, the club said in a post on X. The Portuguese manager failed to secure a league title with Al Nassr, and leaves the club at 7th place in the Saudi Pro League having secured all 3 points in only one game in the new domestic season.

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THE BIG STORY ABROAD-

Even with everything going on in the world, the Fed’s decision to cut interest rates is topping the headlines in the international business press. US Federal Reserve chair Jerome Powell announced late yesterday that the Fed had voted to lower interest rates by half a percentage point in its first rate cut since 2020, bringing the benchmark federal funds rate to between 4.75% and 5%. In its statement on the decision, the Fed noted that the decision reflects “greater confidence that inflation is moving sustainably toward 2%.”

Gulf policymakers followed suit late yesterday, with Sama and the central banks of the UAE and Bahrain lowering their interest rates by 50 basis points, Qatar lowering rates 55 points, and Kuwait lowering rates by 25 basis points.

** We’ve got the complete rundown of the Fed’s decision to cut rates, what happens next, and how the market reacted in our Planet Finance section, below.

WHILE IN OUR CORNER OF THE WORLD- Lebanon was hit yesterday with yet anotherset of Israeli device explosions as Hezbollah continues to reel from what has been described as the most significant penetration of the armed group’s communication networks since the beginning of the war on Gaza. The latest set of explosions were of the group’s hand-held radios, which killed 20 and injured over 450 in Lebanon's single deadliest day since Hezbollah and Israeli forces began exchanging fire over the border nearly a year ago. The episode has further heightened fears of an escalation on the Lebanese-Israeli border, with Hezbollah secretary-general Hassan Nasrallah set to give an address today.

AND OVER IN TECH NEWS- Google will not have to pay a EUR 1.5 bn fine levied on the company by the European Commission after winning an appeal, though the court accepted the commission’s assessment that the tech giant had engaged in anticompetitive practices with regard to its online advertising business. The decision marks a victory for big tech in the EU’s recent antitrust crusade just as Meta comes under scrutiny by the commission for anticompetitive practices linked to its Marketplace services, with a decision on the case — and an appropriate fine — to be decided as early as next month.

CIRCLE YOUR CALENDAR-

The Riyadh International Book Fair is set to kick off on Thursday, 26 September at King Saud University. The event, which will run until Saturday, 5 October, will feature some 2k publishing houses from over 30 countries. As this year's guest of honor, Qatar will have its cultural heritage on full display. Expect book signings, children’s programs and new business zones for publishers and literary agents.

The MEPRA KSA Leadership Majlis is set to take place on 1 October in the Madareem Crown Hotel, Riyadh. The event will bring together PR professionals to discuss creative communications, youth engagement, and integrating cultural heritage into modern strategies. It includes panel discussions, the MEPRA Fellowship Awards, and registration is open until next Tuesday, September 24.

Noor Riyadh is coming back this November: The Guinness record holder for the largest light art festival is returning to various locations in Riyadh starting Thursday, 28 November, through to Monday, 14 December. 13 more Guinness world records were awarded at the festival since its inception in 2021.

Almajed Oud wraps up Tadawul IPO with retail offering 8.2x oversubscribed

Perfume maker Almajed Oud’s retail offering was 8.2x oversubscribed, drawing in SAR 1.16 bn in demand for 20% of the shares on offer at SAR 94 apiece, according to a filing to Tadawul from the offering’s financial advisor and lead manager BSF.

REMEMBER- Institutional investors booked 80% of the IPO earlier this month in an offering that was 15.6x oversubscribed. Strong investor appetite priced Al Majed Oud’s shares at the top of the range, giving it a market cap of SAR 24 bn upon listing.

What’s next? The final allocation of shares is due today, with excess subscription fees set to be refunded by next Tuesday, 24 September. The first day of trading is pending regulatory approval.

Background: Almajed for Oud is taking a 30% stake, or 7.5 mn shares, to Tadawul’s main market in a secondary share sale, according to the offering’s prospectus. The transaction is expected to raise up to SAR 705 mn in proceeds, with selling shareholders pocketing net proceeds after some SAR 25 mn are used to cover IPO-related expenses. They will not be able to sell down their positions for a period of six months from the first day of trading.

ADVISORS- BSF Capital is financial advisor and lead manager, while Baker Mckenzie is providing counsel to the issuer. Stat is counsel to the financial advisor, underwriter manager, institutional subscription manager and lead underwriter. PwC is running financial due diligence, while Euromonitor International is the market study advisor and BDO Dr. Mohamed Al Amri & Co is the independent financial auditor.

Saudi closes SAR 2.6 bn in September sukuk issuance

The Finance Ministry has closed its September sukuk issuance, raising SAR 2.6 bn from fixed-income investors, down from SAR 6 bn last month, Argaam reports, citing National Debt Management Center (NDMC) data. This is part of the government’s SAR-denominated sukuk program.

The issuance was structured in six tranches:

A 3-year tranche valued at SAR 255 mn;
A 5-year tranche valued at SAR 375 mn;
A 7-year tranche valued at SAR 638 mn;
A 10-year tranche valued at SAR 1 bn;
A 12-year tranche valued at SAR 202 mn;
A 15-year tranche valued at SAR 112 mn;

A snapshot of gov’t debt obligations in 2024: The total remaining debt maturities in 2024 stand at c. SAR 21 bn, down from SAR 40 bn on the back of NDMC’s “successful execution of liability management transaction in 2023,” according to the center’s annual borrowing plan report for 2024 (pdf). The government’s total debt portfolio is expected to reach SAR 1.1 tn by year-end.

The macro picture: The budget’s deficit for this year is projected to reach SAR 79 bn, putting our financing needs at around SAR 86 bn. Up to 35% of those needs will be financed through domestic SAR-denominated instruments, while up to 40% is expected to be raised in international markets, and up to 50% through the government alternative funding (GAF) channel. GAF aims at financing the government’s capex and infrastructure projects.

IN OTHER DEBT NEWS-

Sure Global Tech renewed a SAR 36.8 mn Shariah-compliant credit facility with Saudi National Bank, it said in a disclosure to Tadawul. The agreement secures funding for another seven months, and is backed by a SAR 40.5 mn promissory note. The renewed facility will fund ongoing and upcoming projects, bank guarantees, and letters of credit.

Acwa Power, Hassan Allam plan to secure close to USD 900 mn for their mega Egypt wind farm by year end

ACWA and HAU update investment ticket for mega wind farm: Renewables giant Acwa Power and Egypt’s Hassan Allam Utilities (HAU) are set to secure close to USD 900 mn in financing by the end of the year for their 1.1 GW wind farm in Gulf of Suez, a source with knowledge of the matter told EnterpriseAM Egypt.

It’s an update from earlier this year: The consortium signed a 25-year land usufruct agreement with the New and Renewable Energy Authority for the wind farm back in January, saying at the time the project had an investment value of up to USD 1.5 bn. Commercial operations are set to begin by the end of 2026, according to a statement released at the time.

Acwa and HAU have completed all studies for the project, Asharq Business reports, citing an unnamed Egyptian government source. The final contracts are expected to be signed before the end of the year ahead of kicking off project implementation. Asharq’s sources said that the project will be implemented over two 550 MW phases and is expected to be fully operational by the end of 2027. Construction is scheduled to begin before the end of this year, with an estimated completion time of 30 months.

Remember: Acwa Power and Hassan Allam signed a 25-year power purchase agreement with the Egyptian Electricity Transmission Company to develop the wind farm under a build-own-operate framework back in June 2022. ACWA said at the time that the onshore wind farm will be one of the largest in the world and the largest in the Middle East.

Aramco awards Saipem another USD 2 bn EPC contract for Marjan oil field

Aramco awarded Milan-based contractor Saipem an offshore contract valued at c. USD 2 bn to develop the Marjan oil field, Saipem said in a statement yesterday. The contract was awarded after Saipem completed bidding and met all requirements. The story was picked up by Reuters.

The contract scope: Saipem will handle the engineering, procurement, construction, and installation of several key components, including wellhead platforms, jackets, a tie-in platform, rigid flowlines, submarine composite cables, and fiber optic cables. The project will leverage Saipem’s local offshore fleet. Fabrication will also take place at the Saipem Taqa Al Rushaid Fabricators (STAR) yard in Dammam, in a bid to boost the local component of the contract and develop Saudi industry.

The contract was signed under an existing long-term agreement between both firms. Earlier this month, Aramco awarded two contracts worth a combined USD 1 bn to Saipem for EPC works at Marjan oil and gas field, Zuluf oil field, and Safaniya oil fields.

Marjan is set to boost Aramco’s oil production capacity: The oil giant reported in its 1Q results that the Marjan crude oil increment is expected to add crude oil production capacities of 300k bbl / d and are on track and forecasted to be onstream by next year.

Long-standing partners: Saipem said earlier this year that it is forecasting a 20% fall in average annual orders from Aramco until 2027 on the back of the oil giant’s decision to shelve plans of investment in new production capacity. However, it said Aramco’s suspension would not significantly impact its 2024 targets.

A rundown of the newly-approved commercial registration and trade name laws

Companies will now be required to have a singular commercial register covering all of their activities in Saudi, as per the the Commercial Registration Law and Trade Name Law approved by the Cabinet, the Commerce Ministry said in two separate posts on X (here and here). The updated laws look to simplify procedures and make it easier to do business.

The new Trade Names Law (pdf) introduces a ban on duplicated trade names for businesses, even if they operate in different sectors or on different commercial activities. The law also allows for non-Arabic and alphanumeric characters in trade names, independent transfer of ownership of trade names separately from establishments, and the reservation of trade names for renewable periods prior to their registration.

No more regional sub-records for commercial entities: The new commercial registry requirements ditch sub-records — now, companies can operate under a single registry countrywide. Companies have a five-year grade period to do away with their sub-records. To do this, they can either establish a new company to retain the commercial sub-record, transfer the sub-record to another person or entity, or cancel the sub-record altogether and transfer its assets and activities to the establishment’s main record.

Registry renewal timelines have been updated: Businesses must now confirm their details electronically each year — beginning with the date of registration — rather than handle expiration dates for their registry. Registrations are suspended if a business fails to renew their details within the allotted 90-day window, but the suspension is lifted if details are renewed at any point during the year. A registration is removed from the registry if a business fails to confirm its details one year after suspension.

No more penalties: The system also replaces penalties with a system of “warnings and notices for businesses to comply” in order to give enterprises a chance to fix issues. Companies are now required to open linked bank accounts to improve transparency, while the authority has also introduced a centralized database to manage business registrations more efficiently.

Darent secures undisclosed amount in a seed round led by Al Tawuniya Ins.

Homegrown proptech startup Darent secured an undisclosed amount in a seed funding round led by Al Tawuniya Ins. with participation from Morgan Stanley Inclusive Ventures Lab — marking one of their first investments in the MENA region — and BIM Ventures, according to a press release.

Use of proceeds: Darent earmarked the funds to advance its tech capabilities and marketing drive, including investing in AI to improve the platform’s ability to analyze markets and personalize recommendations for clients.

About Darent: Founded in 2021 by Hanin Alsubaie (LinkedIn), the MIT Accelerator graduate focuses on vacation home rentals, and managed to raise USD 1 mn a year on from its inception in a pre-seed round led by Watheeq Proptech Venture. SInce taking off two years ago, the platform has successfully increased property occupancy rates which now exceed 90% during peak seasons.

IN OTHER STARTUP NEWS-

Saudi businesswoman Amal bin Abdulaziz Al-Ajlan invested USD 250k in Egyptian edtech startup Farid in a pre-seed funding round, according to a press release. Founded in 2024, Farid focuses on character development education and mental health awareness for children aged 3 to 18.

The funds will fuel Farid’s expansion into the Kingdom and the UAE, while also helping it develop new content, hire new talents, and secure partnerships with schools and universities.

Saudi Mawarid invests in US-based Sceye: Homegrown private investment firm Mawarid Holding has invested an undisclosed amount in US aerospace company Sceye in a series C funding round, according to a press release. Sceye, which specializes in high-altitude platform systems, was valued at USD 535 mn.

Egypt’s FRA head talks about how the regulator brought new instruments + depth to its market

FRA’s Farid on introducing SPACs, carbon credits, and more to the Egyptian market: Since assuming his position as Financial Regulatory Authority chairman in August 2022, Mohamed Farid has overseen the introduction of a handful of new financial instruments, as well as regulatory overhauls designed to create a deeper, more digitally-enabled market in Egypt. Speaking at EFG Hermes’ annual conference in London last week, Farid touched on the different regulatory changes the authority has introduced over the past several years and the changes seen across the country’s IPO market, ins. sector, and the digitization push.

From EGX to FRA: Transitioning from the bourse to the FRA allowed Farid to bring an inside perspective on the regulatory priorities for the agency, including facilitating the process for companies to IPO on the bourse, he said. “We discovered that in Egypt, for companies to get fully ready to be able to trade their shares on the market through a complete IPO, they need lots of time,” Farid said. To facilitate that process and encourage the introduction of new paper on the EGX, the FRA introduced in September 2022 amendments to listing rules that allow companies to temporarily list on the EGX while seeking regulatory approvals from the FRA. The amendments also granted companies a longer window to meet listing requirements.

The FRA also recently introduced changes to the listing rules for special purpose acquisition vehicles (SPACs), Farid noted. The regulator had first greenlit a proposal to allow SPACs in Egypt back in 2021. In introducing SPACs to Egypt, the FRA looked at the model introduced in the US and modified it to fit the local market. “We took a slightly different approach whereby the traditional model of SPACs that’s in the US is allowed, but there’s also a complementary model that also exists in Saudi and the UAE that introduces an SME platform,” Farid said. This setup allows VC funds themselves to get listed.

The rationale: “If we allow companies to be listed with a minimum capital requirement of EGP 1 mn, and we’re allowing investors to take this risk, it doesn’t make any sense for us to not allow VC funds to be listed as well,” Farid said. The new model is “named SPACs for marketing purposes but it’s more about listing private equity and venture capital funds” and eventually create a path for limited partners (LPs) in startups to have a clear exit scenario, he said.

The Egyptian SPAC model takes heed of multinational institutions’ guidance that encourage the increased transparency that comes from listing a VC fund, Farid said, pointing to research from the European Bank of Reconstruction and Development, among others. “These institutions found that the performance of listed private equity and VC firms is by far superior to unlisted or ‘opaque’ peers,” Farid said.

This model is also designed to “enable different asset management firms with the aim of investing in startups and companies with newly developed ideas,” while still providing investors with a clear exit mechanism, Farid said.

Besides SPACs, the introduction of a voluntary carbon market with carbon credit trading was another major development in the Egyptian market. Egypt officially launched Africa’s first carbon market last month, which Farid stressed made Egypt “one of the very few [countries] that decided to put in place a full-fledged regulatory framework” for the market and to trade carbon credits. Egypt already had several different green and sustainability-linked debt instruments, including green bonds, brown bonds, and transition bonds, but “another sweetener that adds returns to those types of investments is to issue carbon credits,” Farid said.

Carbon credits: Commodities or financial instruments? The idea of launching a regional platform for carbon credit trading originated at COP27, which Egypt hosted in Sharm El Sheikh, Farid said. “But the difficulty was that we needed to decide how to treat carbon credits in a regulatory sense,” he said. The US’ model considers carbon credits as a commodity, whereas in the EU, they are considered to be financial instruments. “For the credits to be treated as a commodity, you need to not see significant deviations in the prices — but in reality, there were huge price differences.”

Not all carbon credits are born equal: “A carbon credit issued by a project that only put a filter on a factory chimney to reduce CO2 had one price, while another carbon credit that was issued for slashing CO2 in addition to addressing other SDG components — such as women’s empowerment, poverty alleviation, etc. — had a much higher price. Accordingly, given that you have this significant price deviation, we had to treat it as a financial instrument, not a commodity, and we had to create the regulations accordingly,” Farid explained.

“As it currently stands, we have 16 projects that are registered with the FRA with carbon credits eligible for trading,” Farid said. These projects — which are studied and verified and have the proper ISO certifications related to carbon credits — are primarily in the agriculture space, Farid noted. Out of the 16 projects currently listed, 15 of them are agricultural projects “where farms have invested in swapping out their diesel-powered machinery to run on solar panels” and introducing other sustainable practices, he said.

It’s not just Egyptian projects: The 16th project currently registered with the regulator is from India, Farid said, noting that the real idea behind launching Egypt’s carbon market “is to create a regional platform where Egypt, Morocco, Tunisia, Kenya, and other countries can register these projects and start seeing an aggregated trading platform for these players in the market.”

Culture Ministry lands AI Ethics Medal + Who’s who in Forbes Middle East’s Top 100 Healthcare Leaders

The Culture Ministry bagged the 2024 AI Ethics Medal at the Global AI Summit last week, organized by the Saudi Authority for Data and Artificial Intelligence, state news agency SPA reports. The accolade recognizes the ministry’s leadership in adopting ethical AI practices since 2022, and is part of a broader effort to ensure the responsible use of technology.

Saudi claimed 23 spots in Forbes Middle East’s ranking of the region’sTop 100Healthcare Leaders for 2024. Those named among the top 10 ranks:

Sulaiman Al Habib, Founder & Chairman of Dr. Sulaiman Al Habib Medical Services Group (HMG);
Nasser Al Huqbani, CEO of The Health Holding Company;
Mazen Fakeeh, President of Fakeeh Care Group (FCG);
Ayman Tamer, Group Chairman of Tamer Group;
Makarem Sobhi Batterjee, President & Vice Chairman of Saudi German Health (SGH).

Saudi creators and productions took home a stack of awards at the fourth Gulf Theater Festival in Riyadh, according to state news agency SPA. The Taif Theater Group claimed the title of Distinguished National Group, while Saudi play Bahr secured accolades for Best Theater Direction and Best Theater Music. In the acting categories, Fajr Al Yami was recognized as Best Actress in a Supporting Role, and Shihab Al Shihab claimed the award for Best Actor in a Leading Role.

Two new Ikea locations coming to Jazan + Abha

RETAIL-

Ikea is coming to Jazan and Abha: Ikea Alsulaiman — Alsulaiman Group’s (ASG) franchise for Ikea stores in Saudi — will add two new locations in Jazan and Abha, it said in a post on LinkedIn. ASG plans to open 21 new Ikea branches by 2029, bringing the total number of outlets here to 30 from nine today, company officials said earlier this year.

ICYMI- The retail, logistics and real estate player is also pushing for more Circle K stores, recently snapping up a majority stake in fuel services company Mazaya Fuel, which has upwards of 130 fuel stations across the Kingdom.

REAL ESTATE-

Ajdan Real Estate Development and Aljazira Capital signed a SAR 2 bn agreement to launch the Aljazira Ajdan Real Estate Fund, as well as build mixed-use towers in Riyadh, according to a press release. The towers will be located on a 21k sqm site in the Al Rahmaniyah district and will feature luxury residential units, workspaces, cafes, restaurants, and entertainment spaces.

M&A WATCH-

Buruj Cooperative Ins. appointed Baker & McKenzie as its legal advisor for its potential merger with Medgulf, it said in a disclosure to Tadawul. Buruj and Mediterranean and Gulf Ins. and Reins. (Medgulf) had signed a non-binding MoU in July to evaluate a potential merger through a share swap, where Medgulf’s capital would be upped to allow for the issuance of new shares to the shareholders of Buruj. Buruj also tapped Alinma Investment as its financial advisor in August.

TRANSPORT-

Egyptian mobility solutions provider Swvl secured USD 2.6 mn in contracts in Saudi for 3Q 2024, according to a press release. The expansion makes Saudi the company’s fastest-growing market. The new contracts will see Swvl roll out its services across Riyadh, Dammam, Madina, and Jubail, with a focus on the education sector while also serving other industries such as food and beverage, healthcare, construction, and facility management.

ENTERTAINMENT-

The first DreamPlay family entertainment center in the Middle East is set to open in The Avenues, Riyadh in 4Q 2026, as part of a partnership between DreamWorks Animation, Universal Live Entertainment, and Kuwait’s Alshaya Group, according to a press release. The new center will feature interactive play and creativity inspired by DreamWorks characters.

INFRASTRUCTURE-

Alkhorayef Water and Power Technologies landed a SAR 220 mn project with the National Water Company (NWC) to add 125k cubic meters per day in capacity to NWC’s Tertiary Treatment Plant in Dammam, and carry out rehabilitation works for another existing plant, it said in a disclosure to Tadawul. No details on the timeline of the project were provided.

DISPUTE WATCH-

Derayah Financial is taking Smart Tower’s master tenant to court: Derayah Financial — the fund manager of Derayah Reit — has initiated legal action against the master tenant of Smart Tower to recover SAR 40 mn in overdue rent, it said in a disclosure to Tadawul. The outcome of the case will determine its impact on the fund, it added.

MINING-

Aramco is partnering with Lihytech, a KAUST-backed startup, to develop direct lithium extraction technology using brine from the oil giant’s oilfields, according to a press release. The move is set to support the Kingdom’s growing demand for lithium which is an essential component for producing EV batteries. The project is currently in its pilot phase.

TOURISM-

The Public Investment Fund has launched a new company, Qsas, to create interactive exhibitions inspired by Saudi heritage and Islamic history for pilgrims and tourists visiting the Kingdom, according to a statement, Qsas plans to start with local exhibitions and then expand globally.

Fed kicks off easing cycle with a bang

The US Federal Reserve cut interest rates by half a percentage point, marking the start of its first easing cycle since the pandemic, according to a statement out yesterday. The Open Market Committee’s meeting voted 11 to 1 to reduce the federal funds rate to a range of 4.75% to 5%. Additional rate adjustments will be considered by policymakers based on “incoming data, the evolving outlook, and the balance of risks,” according to their statement.

Powell says nothing is set in stone: The Fed will respond flexibly to evolving economic conditions, chair Jay Powell said at a presser after the meeting, the Financial Times reports. Powell indicated that rates are not set on a “fixed path” and that the Fed may adjust its approach if inflation remains persistent. He also emphasized the central bank’s readiness to act if unexpected weaknesses in the labor market emerge.

What to expect: The Fed’s updated projections include a further 50 bps rate cut by year end, another 100 bps in 2025, and a final 50 bps in 2026, bringing the benchmark rate to 2.75%-3%, according to its median forecast (pdf). The Fed has two meetings left this year, in November and December, implying two 25 bps rate cuts in each of the meetings.

Is the Fed playing catch-up? The Fed’s 50 bps reduction contrasts with the Fed’s assessment that the US economy is in a good place, Egyptian-American economist Mohamed El Erian said in an X post. “Today's 50 bps move is a catch-up for not having reduced rates in July.”

Market reax: The stock market responded positively, with the S&P 500, Dow, and Nasdaq Composite all posting gains before easing to close slightly down, the Wall Street Journal reports. Treasury yields also dipped after initially rising to 3.706%, settling at 3.685%.

MARKETS THIS MORNING-

Asia-Pacific markets are also reacting positively to the start of the era of monetary easing, with Japan’s Nikkei leading gains. Hong Kong’s monetary authority followed the Fed’s lead with a 50 bps rate cut, with Hang Seng futures pointing to a flat open after markets return to trade on Thursday following a day off yesterday. Wall Street futures are also up as traders continue to weigh the Fed’s moves yesterday.

TASI	11,921	+0.3% (YTD: -0.4%)
MSCI Tadawul 30	1,487	+0.4% (YTD: -4.1%)
NomuC	25,596	-0.1% (YTD: +4.4%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	6.5% repo	5.5% reverse repo
EGX30	30,343	+0.6% (YTD: +21.9%)
ADX	9,423	-0.1% (YTD: -1.6%)
DFM	4,390	-0.1% (YTD: +8.1%)
S&P 500	5,618	-0.3% (YTD: +17.8%)
FTSE 100	8,254	-0.7% (YTD: +6.7%)
Euro Stoxx 50	4,835	-0.5% (YTD: +6.9%)
Brent crude	USD 73.65	-0.1%
Natural gas (Nymex)	USD 2.30	+0.5%
Gold	USD 2,598.60	+0.2%
BTC	USD 60,378.90	+0.1% (YTD: +42.7%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.3% yesterday on turnover of SAR 5.7 bn. The index is down 0.4% YTD.

In the green: Red Sea (+10.0%), Al Istithmar Reit (+8.0%) and Batic (+5.2%).

In the red: GIG (-2.6%), Tanmiah (-2.6%) and Walaa (-2.6%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.1% yesterday on turnover of SAR 64.6 mn. The index is up 4.4% YTD.

In the green: Bena (+8.3%), Al Razi (+7.2%) and Saudi Top (+7.2%).

In the red: UFG (-30.0%), Edarat (-7.4%) and Dar Al Markabah (-5.3%)

CORPORATE ACTIONS-

#1- Savola Group raised SAR 943.5 mn from its rump share offering, which was 8.1x oversubscribed, it said in a disclosure to Tadawul. The 35.1 mn rump shares were offered at an average price of SAR 26.9 a piece. Savola’s SAR 6 bn rights issue wrapped up earlier this week and was 94.2% subscribed, with shares traded between SAR 26.6 and SAR 28.2.

#2- Bena Steel’s general assembly greenlit a 20% capital increase to SAR 60 mn by issuing 1 mn bonus shares at a rate of 1 new share for every 5 existing shares, as it looks to support growth and bolster its financial position, it said in a summary of results (pdf) from an EGA meeting. The company has set aside SAR 10 mn from retained earnings to finance the capital increase.

Business as usual: Due to the capital hike, the fluctuation limits for the company’s shares were set at SAR 36.95 yesterday, with outstanding orders canceled. The Securities Depository Center (Edaa) will deposit the additional shares into investors' portfolios by 22 September, according to a Capital Market Authority statement by CMA.

AND- Bena Steel is also distributing SAR 4.5 mn in dividends at SAR 0.9 per share for 2023, with the distribution dates to be announced at a later time.

#3- The Saudi Printing and Packaging Company reported accumulated losses worth SAR 218.2 mn — equivalent to 36.4% of its capital — as of August, it said in a disclosure to Tadawul. The losses stem from a drop in sales in both the printing and packaging segments, a SAR 30.5 mn impairment of assets, and rising financing costs. The company plans to expand its product range, consolidate packaging operations, restructure its printing sectors, and reduce bank loans to cut financing costs in order to stem the losses. Listed companies that face accumulated losses exceeding 20% of capital must disclose plans to turnaround their finance, as per market regulations.

CALENDAR

SEPTEMBER

15-19 September (Sunday-Thursday): SRMG Academy Technology Journalism Workshop, Riyadh.

15-19 September (Sunday-Thursday): Muntada FAA, Riyadh.

16-19 September (Monday-Thursday): Foodex Saudi, Riyadh.

17-19 September (Tuesday-Thursday): EV Auto Show, Riyadh.

17-19 September (Tuesday-Thursday): Hotel & Hospitality Expo, Front Exhibition & Conference Center, Riyadh.

18-19 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam.

18-19 September (Wednesday-Thursday): IDC Saudi Arabia CIO Summit 2024, Riyadh.

23 September (Monday): National Day (national holiday).

24-25 September (Tuesday-Wednesday): CX & Loyalty Summit & Awards, Riyadh.

24-25 September (Tuesday-Wednesday): Future Banks Summit & Awards, InterContinental Hotel, Riyadh.

24-26 September (Tuesday-Thursday) Saudi Infrastructure Expo, Riyadh International Convention and Exhibition Center, Riyadh.

24-26 September (Tuesday-Thursday): Smart Cities Saudi Expo 2024, Riyadh Front Exhibition & Conference Center.

25-26 September (Wednesday-Thursday): Kingdom Business and Luxury Travel Congress, Crowne Plaza Riyadh RDC Hotel and Convention.

26 September-5 October (Thursday-Saturday): AlUla Skies Festival, AlUla.

27 September (Friday): CAF Super Cup Final 2024, Riyadh.

27 September (Friday): Saudi Women’s Premier League starts.

29 September-1 October (Sunday-Tuesday): Jeddah Construct Expo, Jeddah.

29 September (Sunday): Start of Digital Chip Design Technologies training program.

OCTOBER

1 October (Tuesday): MEPRA KSA Leadership Majlis, Madareem Crown Hotel, Riyadh

1-3 October (Tuesday-Thursday): Intersec Saudi Arabia 2024, Riyadh.

5-7 October (Saturday-Monday): Middle East Education & Training Exhibition 2024, Jeddah.

12 October (Saturday): Riyadh Season.

12 October (Saturday): Shakur Stevenson x Joe Cordina, Riyadh.

12-14 October (Saturday-Monday): Global Logistics Forum, Riyadh.

15-16 October (Tuesday-Wednesday): Solar & Storage Live KSA, Riyadh.

16-17 October (Monday-Tuesday): Global Airport & Aviation Forum, Jeddah.

19 October (Saturday): Battle of the Giants, Mayadeen Hall, Riyadh.

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh.

21-22 October (Monday-Tuesday): Aussie Expo, King Abdullah Financial District Conference Center, Riyadh.

21-23 October (Monday-Wednesday): Global Health Exhibition 2024, Riyadh.

23-24 October (Wednesday-Thursday): UNIDO’s Multilateral Industrial Policy Forum (MIPF), Riyadh.

26 October (Saturday): Donor Conference to Support Refugees in Sahel and Lake Chad Regions, TBD.

27-28 (Sunday-Monday): The Global PropTech Summit, Movenpick Hotels & Resorts, Riyadh.

29-31 October (Tuesday-Thursday): Future Investment Initiative Conference, Riyadh.

30 October-3 November (Wednesday-Sunday): Hia Hub 4.0, Riyadh.

31 October (Thursday): No-visa travel for Saudis to Montenegro on charter flights expires.

NOVEMBER

2-9 November (Saturday- Saturday): WTA Finals, Riyadh.

3-23 November (Sunday-Sunday): NEOM Beach Games, Neom.

4-7 November (Monday-Thursday): Saudi Build, Riyadh.

26-28 November (Tuesday-Thursday): Saudi Electricity Expo, Riyadh.

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh.

11-12 November (Monday-Tuesday): Expenditure Efficiency Forum, The Hilton, Riyadh.

11-14 November (Monday-Thursday): Cityscape Global, Riyadh.

16 November (Saturday): Latino Night at Riyadh Season, Riyadh.

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Dammam.

19-20 November (Tuesday-Wednesday): The Women's Economic Forum 2024, Dammam.

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam.

23 November (Saturday): Red Sea 600, Jeddah Yacht Club and Marina.

25-27 November (Monday-Wednesday): World Investment Conference, Riyadh.

26-28 November (Tuesday-Thursday): Future Power Expo, Riyadh.

28 November-14 December (Thursday-Saturday): Noor Riyadh, Riyadh.

29 November-2 December 2024 (Sunday-Wednesday): World Sailing Youth Match Racing World Championship, Jeddah Yacht Club and Marina.

DECEMBER

1 December (Sunday): Opec+ to meet.

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh.

3-5 December (Tuesday-Thursday): The International Business Exchange – IBEX EVENTS, Riyadh.

11 December (Wednesday): Billboard Arabia Music Awards (BBAMAs), King Abdullah Financial District, Riyadh.

2-13 December (Monday-Friday): Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification, Riyadh.

5-8 December (Thursday-Sunday): World Sailing Women’s Match Racing World Championship, Jeddah Yacht Club and Marina.

11 December (Wednesday): FIFA Congress, which will decide the hosting countries for the FIFA World Cup 2030 and 2034

15-19 December (Sunday-Thursday): Internet Governance Forum, King Abdulaziz International Conference Center, Riyadh.

23-26 December (Monday-Thursday): Aqarat Expo, Riyadh.

Signposted to happen sometime in 2024:

The AFC Champions League Elite

2025

JANUARY 2025

14-16 January (Tuesday-Thursday): Future Minerals Forum, King Abdulaziz International Conference Center, Riyadh.

27-29 January (Monday-Wednesday): Real Estate Future Forum, Four Seasons Hotel, Riyadh.

28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Riyadh.

29-30 January (Wednesday-Thursday): Global Labor Market Conference, Riyadh.

FEBRUARY 2025

6-8 February (Thursday-Saturday): Liv Golf season opener, Riyadh Golf Club, Riyadh.

10-13 February (Monday-Thursday): Leap 2025, the Kingdom’s premier tech investment conference.

14-15 February (Friday-Saturday): Formula E, Diriyah.

JUNE 2025

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

2026

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

2027

The World Water Forum takes place in Riyadh.

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