Another big day for capital markets

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WHAT WE’RE TRACKING TODAY

THIS MORNING: More IPO news: Retail offerings for Rasan + Talco’s Tadawul debuts move ahead

Good morning, friends. Our IPO-heavy theme continues this morning, and we’ve got news of a benchmark-sized government sukuk in the market — the second such big sale this year. Let’s jump right in.

HAPPENING TODAY- The two-day bookbuilding window for the retail tranche of Rasan’s IPO kicks off with a maximum of 2.3 mn shares up for grabs. Rasan priced its IPO on Tadawul’s main market at SAR 37 per share, pegging it at the top of its initial price range, after the institutional offering drew strong demand with a 129.1x oversubscription rate. The fintech startup is taking a 30% stake to the market.

ALSO- The subscription period for the retail offering of Al Taiseer Group Talco Industrial’s (Talco) IPO on the main market wraps up today with up to 1.2 mn shares up for grabs. Talco priced its IPO at the top range at SAR 43 per share after its institutional offering drew in strong demand with a 68.5x oversubscription rate. The aluminum products maker is taking a 30% stake to the market in a secondary share sale.

^^ The global business press has taken notice of multiple high-profile IPOs being in the market at the same time, as we note this morning in Saudi in the News.

WEATHER- Riyadh’s skies are looking clear with a daytime high of 42°C and a low of 27°C. Jeddah is on the windy side with a daytime high of 38°C and a low of 27°C, with Makkah seeing a similar weather pattern with a high of 46°C and a low of 30°C. Meanwhile, the national weather service is advising folks in Asir to exercise caution due to thunderstorms and winds.

WATCH THIS SPACE-

#1- Rent control coming? The Shura Council called on the Real Estate General Authority earlier this week to create a national plan for how to tackle rising rent prices in the country, according to state news agency SPA. The council wants to see the authority setting price caps on real estate, as well as a plan that would help blunt the pace at which rents are increasing. No further information was provided on the mandate.

REMEMBER- Rent has been the big culprit behind inflation: A 9.4% y-o-y increase in villa rental prices led to a 10.4% y-o-y hike in the price of the overall rent sector in April. Riyadh’s office market was tight in 1Q 2024, buoyed by a 4.4% growth in the non-oil sector. Grade A offices saw an occupancy rate of 98% during the quarter as demand continues to pick up pace on the back of the Kingdom’s diversification plan and regional headquarters program.

#2- It’s a big week for China’s relations with the Arab world as Chinese President Xi Jinping hosts Arab leaders this week in Beijing. The leaders of the UAE, Egypt, Bahrain, and Tunisia are all expected to be in the Chinese capital by tomorrow for the China-Arab States Cooperation Forum, but there’s no word yet on who will represent Saudi at the gathering.

Sound smart: Riyadh was the starting point for China’s latest Arab-world charm offensive when Xi visited in late 2022. Beijing last year showed it could be a constructive actor on the regional scene when it helped broker rapprochement between Riyadh and Tehran.

ON A RELATED NOTE- The Public Investment Fund’s advanced technologies arm has effectively invested USD 2 bn in Chinese PC maker Lenovo, Bloomberg and the Wall Street Journal report. Alat will buy USD 2 bn worth of zero-coupon convertible bonds at an initial conversion price of HKD 10.42 per share. That would translate to a sake of a bit more than 12% of Lenovo at that price if Alat were to convert the bond into equity at that price.

In context: Alat is the PIF’s unit investing in advanced and sustainable technologies. Formed in February, it aims to invest USD 100 bn across range of segments by 2030.

#3- UK-based industrial software outfit Aveva is planning to set up shop in Dhahran, according to a press release. The regional office will provide sales, services, project management, and technical support to customers locally and regionally, the statement reads. Aveva signed an MoU with Aramco in 2021 to collaborate on tech projects in a bid to support the oil giant in developing its blue hydrogen and decarbonization facilities.

#4- The Union of Arab Banks (UAB) plans to set up a fund focused on fintech and digital transformation in the Arab banking sector, UAB Secretary General Wissam Fattouh told Aleqtisadiah. The decision to launch the fund came following calls at the Arab League summit in Manama earlier this month to enhance Arab cooperation in fintech and digital transformation through funds and regulatory frameworks, Fattouh said. UAB set up its regional headquarters in Saudi.

#5- Some 270 Syrians flew from Damascus to Saudi in the first direct flight between the two countries in over a decade for Hajj, Associated Press reported, citing a statement by the Syrian Transportation Ministry. Another flight carrying Syrian pilgrims was scheduled to depart from the Syrian capital to Jeddah yesterday night. The resumption of flights comes days after the Kingdom appointed its first envoy to Syria since the closure of its embassy in Damascus due to the country’s civil war in 2012.

DATA POINT-

The Kingdom’s arms and ammunition imports fell 59.4% y-o-y to SAR 1.4 bn in 1Q 2024, according to statistics agency Gastat data (pdf). Imports rose 5.8% q-o-q from SAR 1.3 bn in the final quarter of 2023.

South Korea topped the list of arms suppliers to Saudi in 1Q 2024 with exports from Seoul valued at SAR 808.5 mn, followed by the US at SAR 276.8 mn. Belgium, Pakistan, the UK, Italy, Czech Republic, France and Turkey were also key arms exporters to Saudi during the period.

OIL WATCH-

Is a price cut for crude oil to Asia in the cards? Aramco may slash prices for most crude grade sales to Asian customers in July for the first time in five months, Reuters reports, citing unnamed sources in refining. The sources expect Aramco to cut the official selling price (OSP) for flagship Arab Light Crude by USD 0.30-0.50 a barrel on the back of weakened margins and benchmarks for Asian refiners.

SPORTS-

Al-Hilal was officially crowned the champion of the the Saudi Pro League, ending the season undefeated after a 2-1 victory over Al-Wehda yesterday. The match made Al Hilal the first team to earn the Pro League title twice without a single loss. Al Nassr secured the runner-up position, and Al-Ahly came in third place, qualifying the big three for the Saudi Super Cup and the AFC Elite Championship League.

ALSO- Cristiano Ronaldo broke the record for most goals scored in a single season, netting 35 goals for Al Nassr.

PSA-

You need to report in when a dependent’s visa expires. Sponsors failing to notify authorities of when their dependents leave the country after their entry visa expires could be subject to a fine of up to SAR 50k and a six-month prison term, according to state news agency SPA. Expats who don’t meet the reporting requirements could also be at risk of deportation.

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THE BIG STORY ABROAD-

A big US M&A and another fresh high for Wall Street are the big business stories this morning, but they’re being largely overshadowed in the US and UK by political news.

UP FIRST- The tech-heavy Nasdaq Composite hit a fresh high at yesterday’s close, rising 0.6% to break the 17k barrier for the first time as traders returned from a three-day weekend. (CNBC)

AND- Shareholders of Hess voted yesterday to sell their company to Chevron in a USD 53 bn transaction. It’s still far from certain that sale will go through, because…

…Exxon is still looking for a way to scupper it. The story is perhaps a bit less dramatic than the 1980s oil patch soap Dallas, but if you want the inside dirt of what’s keeping the energy industry in thrall, go read: The leaders of Exxon Mobil, Chevron and Hess are duking it out over a generational oil discovery in Guyana in the Wall Street Journal. Both the WSJ and the FT are giving the shareholder vote prominent play on their front pages this morning.

IN EUROPE, an “investment shock”: Emmanuel Macron wrapped a three-day visit to Germany with the announcement that Paris and Berlin will work together to deliver an “investment shock” to the European Union to provide more incentives for manufacturers and business working on advanced technologies, writes Handelsblatt. Macron and his German counterpart, Olaf Sholz, telegraphed the move in an op-ed for the Financial Times earlier this week that argued the EU needs “more single market, innovation and investment to secure a common future.” The impetus? Countering China.

IN WAR and politics:

#1- Israeli tanks and troops have reached the center of Rafah in “a sign the military could be nearing its goal of taking full control of the southern Gazan city.” The story leads the front pages from Bloomberg through to the Financial Times. The Foreign Ministry has condemned in the “strongest terms” ongoing “genocidal massacres” by Israeli forces against Palestinian tent camps in Rafah, it said in a statement on X.

Oh, and that US pier that was going to feed Gaza? Satellite imagery shows that it’s broken apart, CNN reports.

#2- Closing arguments wrapped late yesterday in Donald Trump’s criminal hush-money trial, with the prosecutor taking six hours to bring the case home and the defense three. The jury should get the case today to start deliberations and could deliver a verdict anytime afterward.

FOOD FOR THOUGHT this morning: There are no signs that traffic will soon return to the Suez Canal as Dubai and Jeddah open new routes to Saudi Arabia and major players continue to steam around the Horn of Africa rather than transit through Egypt. The FT goes deep into how pirate attacks, instability in the Middle East, and climate change are putting “mounting strains on global shipping.”

CIRCLE YOUR CALENDAR-

The two-day Global Project Management Forum will open in Riyadh on Sunday, 2 June, bringing together project managers and stakeholders for talks on the project management ecosystem and emerging technologies.

The #Growth Summit is set to kick off on Wednesday, 5 June, bringing together marketing, product and growth experts at the InterContinental in Riyadh. You can request your invite here.

The Global EV and Mobility Tech Forum will open its doors on Wednesday, 10 July to Thursday, 11 July at the Riyadh International Convention and Exhibition Center. The event will bring together policymakers, NGOs, and startups.

Gov’t starts sale of benchmark-sized Islamic bonds as it looks to plug funding gap

The Kingdom kicked off the sale of benchmark-sized USD-denominated sukuk with three-, six- and 10-year tranches, Reuters reported yesterday, citing fixed-income news service IFR. The government set initial guidance of 85 basis points over US treasuries for the three-year issuance, while sukuk maturing in six years are priced at 100 bps above US treasuries and those coming due in 10 years are at 110 bps. Bloomberg also has the story; both present the sale as part of a bid to “plug” a USD 21 bn funding gap this year.

ADVISORS- Citi, Goldman Sachs and BNP Paribas are bookrunners and global coordinators for the sale, while HSBC, Aljazira Capital, JPMorgan, and Standard Chartered were appointed passive joint lead managers and bookrunners on the offering.

Not the first time this year: The government sold USD 12 bn worth of USD-denominated sovereign bonds in January, marking Saudi’s largest issuance since 2017 when it sold USD 21.5 bn worth of bonds, according to data compiled by Bloomberg. The offering was 2.5x oversubscribed, with banks taking orders worth USD 30 bn.

Debt markets have plenty of appetite: Geopolitical tensions will not affect investor appetite for bonds, the managing director of fixed income advisory at Union Bancaire Privee told Bloomberg, adding that the Kingdom’s credit profile will remain stable on the back of oil price hikes despite rising debt levels and small fiscal deficits.

A bond bonanza at home: The Public Investment Fund (PIF) is reportedly considering more global bond sales and IPOs as it looks to ramp up the pace of investment as the Kingdom’s treasury prepares to run deficits through 2026 and pace out the implementation of some aspects of select Vision 2030 projects. The fund plans to ramp up annual deployment capacity to USD 70 bn a year starting 2026, up from a current annual spending clip of USD 40-50 bn. PIF has raised USD 7 bn since the start of the year from two debt sales.

Global bonds are the way to go: Officials at multiple levels of government and the PIF have repeatedly said in recent months that they don’t want to crowd private business out of the domestic debt market — and international appetite for the Saudi story is high.

Aramco could draw up to USD 1 bn in passive foreign flows as it goes ahead with share sale

Aramco’s expected USD 10 bn secondary share sale could draw at least USD 1 bn in passive inflows from investors tracking the MSCI and FTSE Emerging Market indexes, our friends at EFG Hermes KSA said, according to Bloomberg’s Farah Elbahrawy (watch, runtime: 3:16). The potential offering would raise the oil giant’s freefloat by 0.5 percentage points to a total of 5.5%, including the tradeable portion of the Public Investment Fund’s (PIF) 16% stake in Aramco.

REMEMBER- We could be weeks away from the sale: Aramco is expected to pull the trigger on a secondary sale share as soon as next month, Reuters reported last week. The company has not yet confirmed the offering, which some originally said could be worth as much as USD 20 bn. The newswire expects Aramco to put on a full roadshow to market the offering rather than doing an accelerated book build.

Market reaction: “The stock and the market in general took a little bit of a dip” after the news of the potential offering emerged “because that will require a lot of liquidity from investors into this new offering to support it,” Elbahrawy said.

BACKGROUND- Aramco raised its dividends by 30% in March to a near USD 100 bn for 2023 despite sagging oil prices and lower production. This came days after the PIF doubled up its stake in Aramco to 16%, a transfer of stock worth about USD 164.

PIF’s Jada backs TVM’s USD 250 mn Saudi healthcare fund

PIF-owned Jada makes investment in Saudi-focused healthcare fund: TVM Capital Healthcare — a private equity firm operating out of Dubai and Singapore — closed its dedicated healthcare fund in Saudi, raising USD 250 mn from investors led by the Public Investment Fund’s Jada Fund of Funds and other investors, according to a statement (pdf). Named the Afiyah Fund, the new investment vehicle received backing from several unnamed Saudi, GCC and European investors.

What they said: “The closing of TVM Healthcare Afiyah Fund marks an important milestone in mobilizing private capital into Saudi Arabia’s healthcare sector,” Jada Managing Director and CEO Bandr Alhomaly said.

The fund has appetite for both local healthcare providers and global firms looking to set shop here, TVM Capital Healthcare Chairman and CEO Helmut Schuehsler said. It will also look to invest in specialist treatment centers and clinics, with four transactions already in the pipeline, Schuehsler said.

Investment targets already lined up: The Afiyah Fund has identified some of its first investments, including Baraya E xtended Care, a Riyadh-based long-term rehabilitation clinics chain; DEBx Medical, a Dutch med-tech and chronic-wound drugmaker looking to enter the Saudi market; and NeuroCare Group, a German company specialized in mental health services eyeing an expansion into the region. Some of its other projects include companies who operate in “longevity and genomics, oncology, pharma manufacturing, and diagnostics,” the statement read.

About TVM: The private equity firm is focused on emerging markets’ healthcare sectors and players. TVM is headquartered in Dubai and Singapore, with offices in Riyadh — where it has been operating since 2015 — and Ho Chi Minh City as well as supporting offices in Munich and Boston, according to the statement. TVM’s mission in Saudi includes enhancing “the local and regional healthcare ecosystem at a much larger scale, helping to improve access to high-quality patient care, medical products, and treatment regimens across the Kingdom.”

Logipoint + Gulf Islamic Investments to set up SAR 1 bn logistics JV

Logipoint + Gulf Islamic Investments (GII) launch a SAR 1 bn logistics JV: Saudi Industrial Services Company (SISCO) subsidiary Logipoint and Dubai-based private equity company GII inked a SAR 1 bn (USD 300 mn) agreement to establish a joint venture logistics company that would provide “grade A warehousing solutions” in the Kingdom, according to a joint press release. No information was provided about the ownership structure of the potential JV.

The pitch: The JV aims to provide “warehousing and handling facilities as the backbone of a multi-asset logistical network serving companies across the Kingdom.” The new platform will start by serving Riyadh, and Jeddah before expanding to other cities, the statement reads.

What they said: “Our logistics joint-venture with Logipoint is the latest element of GII’s growth strategy within the Kingdom, which already includes a CMA banking license for GII Saudi Arabia and the acquisition of Emad Bakeries in Jeddah within the last two months,” said GII co-CEO Pankaj Gupta. Earlier this month, Canada-based Brookfield Asset Management acquired a majority stake in GII’s logistics arm, according to the statement.

About the companies: Jeddah-based industrial and logistics real estate developer Logipoint is in the business of investing, managing, and operating bonded and non-bonded logistics parks and zones. Meanwhile, Dubai-based GII is a shariah-compliant private equity firm that specializes in real estate, private equity, and venture capital, with over USD 4.5 bn in assets under management.

Yaqeen Capital’s Nomu offering closes with 105.07% coverage

Yaqeen Capital’s IPO on parallel market Nomu was 105.07% covered, with the offering to qualified investors closing yesterday, its financial advisor Alinma Investment said in a disclosure to Tadawul. The Riyadh-based advisor, brokerage house, and asset manager is selling a 20% stake on Nomu. Yaqeen offered shares at SAR 40 apiece, valuing the company at SAR 600 mn, by our math.

What’s next: Tadawul will set a listing date on Nomu following the completion of necessary procedures, according to the disclosure.

Use of proceeds: The selling shareholder, Falcom Holding Company, will take home all of the net proceeds from the transaction after covering SAR 5 mn in listing expenses.

A look at post-listing ownership: The asset manager has two large, related shareholders — Falcom Holding and its 100% owned subsidiary, Falcom Yaqeen Investment Company. Falcom Holding will hold a 40% stake in Yaqeen Capital after the listing, down from 60%. Falcom owns other non-bank financial services companies. Substantial shareholders will not be able to execute any transactions on their shares for 12 months starting from the first day of trading.

SOUND SMART- Yaqeen is listing on Nomu — the parallel market on which it is a top advisor to other companies filing to go public.

ADVISORS- Alinma Investment is quarterbacking the transaction as the sole lead manager and financial advisor. Receiving agents include SNB Capital, Riyadh Capital, Saudi Fransi Capital, AlJazira Capital, Albilad Capital, Yaqeen Capital, ANB Capital, Alistithmar Capital, Derayah, and Al Rajhi Capital.

King Salman leads weekly cabinet meeting after recovery

King Salman led the cabinet’s weekly meeting yesterday after recovering from a bout of inflammation in the lungs, state news agency SPA reports. Yesterday’s meeting — which the King chaired virtually — marks his first appearance since he was admitted to Jeddah’s Al Salam Royal Palace for treatment earlier this month.

Getting down to business: Cabinet ratified an agreement with the Islamic Military Counter Terrorism Coalition that will see the military alliance — in which the Kingdom is a member — move its headquarters to the Kingdom. It also mandated the Economy and Planning Minister to discuss and sign MoUs on economic cooperation with several of his counterparts in other countries — whose names were not disclosed.

Cabinet also approved in principle setting up the Green Riyadh Foundation, the statement says, without disclosing further details on its scope of work. It also approved turning decades-old educational institute Model Capital Institute to a nonprofit organization. The institute was established in 1940 when the late King Abdul Aziz decided to allocate a part of his palace for his children’s education before turning it into a school for the royals and others from across the Kingdom. It currently offers education from kindergarten to high school.

Also approved at yesterday’s cabinet meeting:

An MoU between the Industry and Mineral Resources Ministry and counterparts in Russia on geology and mineral resources;
Mandating Education minister to discuss and sign an MoU with counterparts in the US on higher education and scientific research;
Mandating the Saudi Food and Drug Authority to discuss and sign an MoU with British counterparts on veterinary pharma.

Al Akaria CEO resigns

Al Akaria CEO and Managing Director Ibrahim Alalwan (LinkedIn) is stepping down effective Wednesday, 31 July 2024, according to a disclosure to Tadawul. Alalwan has been in this position for over five years. The PIF-backed company will name Alalwan’s successor in due time, it said.

King Salman’s recovery is getting attention in the foreign press. Plus: Our healthy IPO pipeline

King Salman taking the lead in yesterday’s weekly cabinet following his recovery from lung inflammation is dominating coverage of Saudi in the foreign press. The news is getting ink from Reuters | Bloomberg | AFP and others. We have more on the weekly Cabinet meeting in the news well, above.

Meanwhile, growing investor appetite for Saudi IPOs is getting ink from Bloomberg, which notes that the Tadawul IPOs of Fakeeh Care, Saudi Manpower Solutions, Rasan, and Miahona have generated a combined SAR 659 bn (USD 176 bn) in orders. The demand for fresh paper has outpaced orders on Aramco’s record IPO in 2019, but is also taking a toll on the stock market as investors look to hold onto liquidity to invest in the fresh offerings.

What the pundits are saying: “There is a notable surge in demand and a rush to the market,” Marwan Haddad, lead portfolio manager for Mena equities at Azimut said. “The high demand can be attributed to several factors: an influx of hedge fund managers, substantial appetite from retail investors facilitated by up to 10 times leverage from banks, and the ease of subscribing through digital channels,” Haddad said.

Separately, The Washington Post is out with an opinion piece on the potential Saudi-US defense pact, suggesting that Israel’s continued objection to moving towards the establishment of an independent Palestinian state could undermine the agreements between Riyadh and Washington.

Al Moammar Information Systems emerges as investor in Elon Musk’s AI startup. Plus: logistics, debt, and construction

ARTIFICIAL INTELLIGENCE-

Al Moammar Information Systems (MIS) is one of two Saudi investors to have backed Elon Musk’s AI startup xAI, with the Riyadh-based tech giant investing some USD 1 mn in xAI, according to a regulatory filing to Tadawul. The investment was made through the company’s self-financed SAR 40 mn AI fund, which it set up for the purpose of investing in global AI players.

BACKGROUND- xAI recently closed a USD 6 bn series B funding round which saw participation from Prince Alwaleed bin Talal and his investment company Kingdom Holding, among other investors. The funds will be channeled towards helping xAI launch its first products, optimize infrastructure and fast-track its research and development efforts.

ALSO- MIS has received SAR 75 mn worth of new orders to boost the capacity of six data centers for Saudi Fransi Capital, it said in a separate filing to the exchange. The tech company had previously obtained 6.6 mn units at a value of SAR 66 mn for the centers. The financial services provider is acting as the manager of the Shariah-compliant private investment fund, which will invest in the ownership of the centers.

INVESTMENT WATCH-

PIF’s Halal Products taps into halal cosmetics: The Halal Products Development Company (HDPC) — a wholly owned subsidiary of the PIF — signed a binding agreement for an undisclosed investment in Singapore-based halal cosmetics maker Believe, state news agency SPA reported. The agreement includes setting up a cosmetics factory in Saudi to produce Believe’s beauty products, while moving Believe’s headquarters from Singapore to Saudi to turn the Kingdom into a global export hub for its products. It will offer contract manufacturing services for local makeup brands in an initial phase with global brands set to follow later.

LOGISTICS-

#1- Saudia Dairy and Foodstuff inked a long-term lease contract with the Saudi Authority for Industrial Cities and Technology Zones, it said in a press release. The agreement will see the Tadawul-listed food manufacturer set up a new warehouse in Jazan on a rented area of 15k sqm. Information about the size of the transaction wasn’t disclosed.

#2- Equipment manufacturer Kanoo Machinery’s units in KSA and UAE sealed a partnership agreement with leading Irish forklift maker Combilift to introduce sustainable forklifting solutions in the region, according to a statement. Those will focus on material handling equipment to help “meet diverse industry needs while supporting environmental goals.” The financial terms of the partnership agreement were not disclosed. Kanoo Machinery is a member of leading family-owned conglomerate Yusuf bin Ahmed Kanoo.

#3- PIF-owned Saudi Arabia Railways will transport Procter and Gamble distributor Abudawood Group’s goods across the Kingdom by train after the two signed an agreement that will expedite the movement of goods, the railway operator said in a post on X.

DEBT WATCH-

Saudi Real Estate Refinance Company (SRC) — a unit of the PIF — inked a SAR 500 mn financing agreement with the Arab National Bank, according to a press release. This agreement aims to boost SRC’s services in the mortgage financing sector. No information was disclosed about the premium on the facility and the timeline of the financing.

CONSTRUCTION-

The Saudi Water Partnership Company has reached financial closure for its SAR 1.5 bn Juranah Independent Strategic Water Reservoir in Makkah, according to a statement.

The details: The project will be executed under a build, own, operate, and transfer (BOOT) model with a 30-year concession and is set to begin operations in 1Q 2027. ISWR has a storage capacity of 2 mn cubic meters and an operational tank capacity of 500k cubic meters to support the potable water distribution system.

AVIATION-

Italian national flag carrier ITA Airways has been cleared to operate regular flights between Saudi and Italy starting Sunday, 2 June, the General Authority for Civil Aviation (Gaca) said in a post on X. ITA Airways will operate five weekly flights between Rome and Riyadh, Gaca said.

TELECOMMUNICATIONS-

Etihad Atheeb Telecom has landed two IT service projects worth a combined SAR 45.5 mn with Technical and Vocational Training Corporation, it said in a filing to Tadawul. The two 12-month agreements will see the telecom company provide internet services across the government entity’s 77 locations. No further information was provided.

FINTECH-

Fintech outfit PayTabs and Jordan-based accounting solutions firm NuMetric will optimize online invoice collection and automation for NuMetric’s users in the Kingdom and Jordan, according to a joint statement. Information about the size of the transaction wasn’t disclosed.

INFRASTRUCTURE-

Local IT firm Web Arabia signed an MoU with Japanese tech company Uhuru to promote smart city solutions across developments in Saudi, according to a statement. Under the MoU, the tech companies will develop solutions to make religious tourism safer and more convenient and solutions for infrastructure projects, including stadiums and airports. Web Arabia is a subsidiary of local general contractor Metscco Heavy Steel Industries.

HEALTHCARE-

France-based architecture firm Unamine’s healthcare subsidiary UNHI is close to setting up shop in Riyadh, which will help the firm “cope with the growing demand,” Unanime partner Pierre Sfeir told Arab News. Unamine has already delivered a healthcare project for Neom, and is currently working on a cardiology project for the Prince Sultan Cardiac Excellence Center in the capital.

HOSPITALITY-

Jabal Omar obtains license to operate final tower of five-star Makkah hotel: Jabal Omar Development — one of the Kingdom’s largest listed property developers — has obtained an operating license from the Tourism Ministry for the fourth and final tower of its Jabal Omar Jumeirah hotel, it said in a disclosure to Tadawul. The fourth tower is home to 282 rooms and suites, meeting rooms, and a business center service, among others. This brings the total number of keys across the five-star hotel’s four towers to 1.1k rooms and suites.

Abudawood Group Al Moammar Information Systems (MIS) ALSO ON OUR RADAR Combilift Etihad Atheeb Telecom Jabal Omar Kanoo Machinery Nupco PayTabs Roads General Authority Sami Advanced Electronics Company Saudi Arabia Railways (SAR) Saudi Real Estate Refinance Company (SRC) Saudi Water Partnership Company (SWPC) Saudia Dairy and Foodstuff (Sadafco) Sure Global Tech Uhuru Unamine Wakecap Web Arabia xAI

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PLANET FINANCE

Voluntary carbon markets are no panacea. Plus: Wall Street moves to T+1 settlement cycle for stocks.

Voluntary carbon markets aren’t going to solve the climate crisis by themselves, US Treasury Secretary Janet Yellen argued yesterday. Voluntary carbon markets “have the potential to support significant decarbonization,” but that’s only if we make sure that the carbon credits on offer in the market “meet high-quality atmospheric integrity standards.”

ICYMI: The Biden administration along with the departments of treasury, energy, and agriculture released their Voluntary Carbon Markets Joint Policy Statement and Principles (pdf) yesterday.

Not all carbon credits do what they say on the tin: Yellen called for greater “supply integrity,” pushing for carbon credits offered up on the market to “represent real emissions reduction and removals” and for there to be regulations in place to “avoid negative environmental and social impact.” In this relatively unregulated market, “we’ve seen too many examples where credits fail to meet this criteria,” Yellen added.

Yellen also called out corporate buyers: “Corporate buyers should prioritize reducing their own emissions, particularly through transition planning, adopting net-zero targets, and transparently reporting on progress,” Yellen argued in her pitch for “demand integrity,” rejecting the notion that companies can just rely on offsetting their emissions through carbon credits to fill their responsibilities to the climate.

The market also needs to be more transparent: In her third pillar for sorting out the voluntary carbon market in the US, Yellen called for market integrity, adding that the voluntary carbon market is “a fragmented market, with high search costs and low transparency.”

ALSO- Traders in the United States, Canada, and Mexico are under a bit of extra time pressure this morning after they moved back to T+1 stock trading, having enjoyed for the past century a more leisurely settlement schedule. Look for a bit of short-term stress this week as folks adapt to the shift, which is meant to reduce risk in the financial system, Bloomberg writes.

Sound smart: T+1 trading means settlement comes one business day after the trade — the buyer gets the stocks the next day, and the seller the money at the same time. The previous standard in the US for most equity transactions was T+2; Wall Street was last on a T+1 settlement schedule back in the 1920s.

In our part of the world: Most Egyptian stocks are on a T+2 schedule, but some brokerages can trade select equities T+0, with settlement happening the same day trades are executed. Saudi’s Tadawul is T+2, as is the Dubai Financial Market.

MARKETS THIS MORNING-

Asian shares are in the red this morning even after the IMF upgraded its China growthforecast to 5%, with the Shanghai Composite being the only major benchmark in the green this morning. US and European equities futures are down slightly after yesterday’s fresh Nasdaq record.

TASI	11,660	-1.5% (YTD: -2.6%)
MSCI Tadawul 30	1,449	-1.4% (YTD: -6.5%)
NomuC	26,234	-0.8% (YTD: +7.0%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	27,195	-0.3% (YTD: +9.2%)
ADX	8,742	-1.0% (YTD: -8.7%)
DFM	3,987	-1.0% (YTD: -1.8%)
S&P 500	5,306	0.00% (YTD: +11.2%)
FTSE 100	8,254	-0.8% (YTD: +6.7%)
Euro Stoxx 50	5,030	-0.6% (YTD: +11.3%)
Brent crude	USD 84.60	+1.8%
Natural gas (Nymex)	USD 2.59	+2.8%
Gold	USD 2,379.30	+1.0%
BTC	USD 68,333	-1.8% (YTD: +62.6%)

THE CLOSING BELL: TADAWUL-

The TASI fell 1.5% yesterday on turnover of SAR 5.3 bn. The index is down 2.6% YTD.

In the green: Sisco Holding (+6.2%), Medgulf (+4.0%) and Ayyan (+3.6%).

In the red: Acwa Power (-4.7%), Avalon Pharma (-4.6%) and Alarabia (-4.5%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.8% yesterday on turnover of SAR 25.3 mn. The index is up 7.0% YTD.

In the green: Almodawat (+10.1%), Aictec (+7.5%) and Pro Medex (+5.6%).

In the red: Future Care (-8.6%), Osool and Bakheet (-7.9%) and Food Gate (-6.5%)

CORPORATE ACTIONS-

The board of the Saudi Industrial Development Company (Sidc) has recommended a capital reduction followed by a capital increase through shares offering to offset accumulated losses, it said in a disclosure to Tadawul. The first stage will see a 66.3% capital reduction to SAR 135 mn shares. It will then seek to raise its capital by SAR 165 mn following the capital reduction to enable the implementation of its operational plans, support working capital, and strengthen its financial position. Sidc appointed Alinma Investment as financial advisor for both tracks.

The board of Bupa Arabia has recommended dividends of SAR 600 mn at SAR 4 per share for FY 2023, it said in a disclosure to Tadawul.

CALENDAR

MAY

29 May (Wednesday): Sanabil 500 MENA seed accelerator demo day, Four Seasons Hotel, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

2 June (Sunday): OPEC+ meeting.

2-3 June (Sunday-Monday): Global Project Management Forum, Riyadh.

3-4 June (Monday-Tuesday): Electronic Applications Exhibition, Al Dammam.

4-7 June (Tuesday-Friday): Saudi Sports Show, Riyadh.

4-7 June (Tuesday-Friday): Aqarat Expo, Riyadh.

5 June (Wednesday): GROWTH Summit Riyadh, InterContinental Riyadh, Riyadh.

5 June (Wednesday): World Environment Day.

5 June (Wednesday): Digital Transformation Summit, Riyadh.

6 June (Thursday): Saudi Manufacturing Show, Riyadh.

10 June (Monday): #teamLabBorderless, Jeddah.

10 June (Monday): Deadline to register for school bus services for the upcoming academic year.

14-22 June (Friday-Saturday): Banks and capital markets closed for Eid Al Adha holiday.

JULY

4 July-25 August: (Thursday-Sunday): Esports World Cup, Boulevard Riyadh City, Riyadh.

10-11 July: (Wednesday-Thursday): Global EV & Mobility Tech Forum, Riyadh International Convention & Exhibition Center, Riyadh.

AUGUST

12-15 August (Monday-Thursday): The Saudi Food Expo, Riyadh

SEPTEMBER

10-12 September (Tuesday-Thursday): Global AI Summit, Riyadh.

11-12 September (Wednesday-Thursday): The Saudi Event Show, Riyadh.

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

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

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

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

OCTOBER

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

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

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

NOVEMBER

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

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

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

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

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

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

DECEMBER

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

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

Signposted to happen sometime in 2024:

The AFC Champions League Elite

2025

FEBRUARY 2024

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

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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