Aramco kicks off blockbuster SAR 43 bn share sale today

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Key Opec+ delegates land in Riyadh as meeting for policy venue changes a second time

Good morning, wonderful people. You have Aramco, AI, the Public Investment Fund, and a ton of global news to thank for an uncharacteristically packed Sunday morning issue.

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HAPPENING TODAY-

#1- It’s Opec+ meeting day — and and some of the delegates are (unexpectedly) in Riyadh to decide whether to extend production cuts into the second half of the year, Reuters and Bloomberg report. Delegates from heavyweight players including the UAE, Kuwait, Kazakhstan, and Russia will all be in the capital for the discussion, which had been scheduled to take place first in Vienna and then online.

What to expect: Some or all of the cuts will be extended, Reuters and the New York Times, say, though the latter knows that Oil Minister Prince Abdulaziz bin Salman “relishes surprises,” so there could yet be something to write home about.

#2- The two-day Global Project Management Forum 2024 kicks off today at the Fairmont Riyadh. Today’s lineup includes discussions on women in project management, green project management, and the management of gigaprojects and AI, among others. Tomorrow: project performance, emotionally intelligent leaders, and data-driven decision making, to name a few.

WEATHER- Windy weather is in the cards for Riyadh with a daytime high of 43°C and an overnight low of 28°C, while Makkah is set for sandstorms with a daytime high of 45°C with the low at 30°C. Jeddah will also see winds and a high of 38°C.

IPO WATCH-

The retail tranche of Riyadh-based labor agency Saudi Manpower Solutions (Smasco)’s IPO was 13x covered, according to a statement (pdf). The final allocation of shares wrapped up last on Thursday with a minimum of 10 pieces per retail investor. Rump shares will be distributed on a pro rata basis based on demand size. The institutional offering was 128x oversubscribed, signaling strong investor appetite for Smasco’s IPO.

The transaction: Smasco is taking a 30% stake to main market Tadawul in a secondary share sale. It is yet to announce when trading will begin on its shares.

We’re now waiting for next steps on three other high-profile IPOs: Fakeeh Care, Miahona, and Rasan have all closed their bookbuilding processes, with Rasan having closed on Thursday the two-day subscription window.

SOUND SMART- We don’texpect any of the four to talk next steps on their transactions until bookbuilding on Aramco’s massive secondary sale wraps at the end of this week.

WATCH THIS SPACE-

#1- Alkhorayef meets industry leaders in the Netherlands: Minister of Industry and Mineral Resources Bandar Alkhorayef met with executives from Philips Healthcare to discuss localization of the the medical devices industry, state news agency SPA reports. The minister also met with executives from dairy products giant FrieslandCampina, where they discussed establishing a research and development center in the Kingdom, as well as with execs from plant-based food player Upfield.

REMEMBER: Alkhorayef met last week with Dutch Economic Affairs and Climate Policy Minister Micky Adriaansens and Foreign Trade and Development Cooperation Minister Liesje Schreinemacher.

#2- The offering period for Yaqeen Capital’s passively-managed, high-risk Yaqeen S&P ESG MENA ETF Fund has been extended to Thursday, 8 August, according to a Tadawul post on X. The open-ended fund offers 1 mn units at SAR 10 per unit, with a minimum subscription of 25k units per investor, according to a filing to Tadawul (pdf). Yaqeen Capital is the fund manager and the receiving agent.

#3- Escalators and elevators company Mayar Holding said it is gearing up for the issuance of SAR-denominated sukuk worth SAR 500 mn to fund working capital and planned expansions, it said in a disclosure to Tadawul. It tapped Afaq Financial as its financial advisor for 24-month murabaha sukuk program. The offering still needs Capital Market Authority approval.

#4- PIF-owned commercial chopper operator The Helicopter Company plans to expand its fleet to 65 helicopters by the end of 2024 from a current 49, Aleqtisadiah reported, citing the company’s commercial director, Musab Binafi.

#5- Norah — Saudi’s first film to screen at Cannes — will hit theaters at home and abroad starting Thursday, 20 June, state news agency SPA reported. It tells the story of an illiterate young orphan Norah, crossing paths with an artist called Nader, who moved to the village to be a school teacher. The encounter helps Norah unleash a passion for art and a better future

DATA POINTS-

[wwtt3= #1- Consumer spending grew 1% y-o-y in April to SAR 113.2 bn, according to a monthly report by the Saudi Central Bank (Sama). The aggregate number accounts for the total point-of-sale transactions, cash withdrawals, and e-commerce transactions via Mada cards that have occurred across the Kingdom within the month. Point of sale transactions grew 3% y-o-y to SAR 53 bn in April, while cash withdrawals dipped 4.1% y-o-y to SAR 45.4 bn. E-commerce sales jumped 18% y-o-y in to SAR 14.8 bn.

#2- The number of investment licenses issued by the Investment Ministry nearly doubled y-o-y to 3.2k licenses in 1Q 2024, Argaam reported. The construction sector accounted for the lion’s share of new licenses during at 864, followed by the manufacturing with 620.

SPORTS-

Al Hilal completed a domestic double after securing the Saudi Cup, beating Al Nassr on penalties after the match ended in a 1-1 draw.

AND- The Saudi Pro League has its eyes on Liverpool’s Luis Diaz and Joe Gomez as part of its “quest to sign exceptional players in their prime,” the Daily Mail reports.

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THE BIG STORY ABROAD-

IN INDIA- Another term for Modi? The ruling Bharatiya Janata Party (BJP), led by Prime Minister Narendra Modi, will likely lead the world’s fastest-growing economy for another five years, according to exit polls. Pundits see the BJP winning up to 401 seats in India’s 543-seat lower house — aka Lok Sabha. Election results will be announced on Tuesday. (FT | BBC | CNBC)

Dive deeper: Bloomberg senior editor Menaka Doshi has deep dive on what Modi’s exit poll victory tells us about his dominance across India.

TO THE SOUTH: There’s nothing but uncertainty in South Africa after the ruling African National Congress lost its 30-year parliamentary majority, putting the country on a “new political path for the first time since the end of the apartheid system of white minority rule 30 years ago,” the AP writes.

Why does this matter? This change in parliamentary leadership puts the presidency of Cyril Ramaphosa in question. It now needs to form a coalition with partners it has spent months badmouthing, and at least one of them wants Ramaphosa out before it will consider talks. (BBC | FT | Reuters)

Business will be watching closely: The ANC’s potential coalition partners include a right-leaning group popular with Afrikaaners that wants to end black-ownership and -employee quotas — and a left-leaning party that wants to nationalize key industries.

MEANWHILE- China has become the first nation to land on the far side of the moon: A Chinese spacecraft touched down on the far side of the moon a few hours ago, helping China gain points in the “ global rush to the moon.” The far side of the moon has remained unexplored by humans until now, seeing as it is more challenging when it comes to communications because it never faces Earth. With its robotic lunar exploration mission Chang’e-6, the nation will try to collect lunar material and bring it back to earth — another first for humankind.

AND ON THE CLIMATE FRONT- Up to 300 families are preparing to permanently leave behind their homes on a small Panamanian island due to rising sea levels. They are expected to be the first of 63 communities living on Panama’s Caribbean and Pacific coasts to evacuate their homes due to rising sea levels.

WAR WATCH-

Fresh hopes for a ceasefire agreement? Israel has proposed a three-part plan that would end with a permanent ceasefire in Gaza and the release of all hostages, US President Joe Biden said on Friday. Hamas reportedly “had a positive view” of the plan.

The details: The first phase will include a full six-week ceasefire, the withdrawal of Israeli forces from all populated areas of Gaza, the release of some Israeli hostages in exchange of hundreds of Palestinians, and the entrance of 600 trucks of humanitarian aid into Gaza every day. During the first six weeks, Hamas and Israel would negotiate “the necessary arrangements to get to phase two.” A final phase would see the start of reconstruction in Gaza.

Netanyahu is dead-set on destroying Hamas first: Israeli Prime Minister Benjamin Netanyahu said that the Israeli side will not agree to a permanent ceasefire before the destruction of Hamas’ military and governing capabilities.

A joint call from the three mediators: Egypt, the US, and Qatar are “ jointly calling on both Hamas and Israel to finalize the agreement.” The news got on ink from: Reuters | FT | Associated Press.

Foreign Minister Prince Faisal bin Farhan discussed the proposal with US Secretary of State Antony Blinken, according to two separate statements (here and here).

AND- A meeting with the Chinese: Bin Farhan met with his Chinese counterpart Wang Yi in Beijing. Regional developments and bilateral ties were on the agenda, according to a post on X.

Aramco to launch blockbuster SAR 43 bn share sale today

Aramco will pull the trigger today on a blockbuster follow-on offering that could see it raise up to SAR 43.5 bn, according to our calculations. The oil giant is taking an additional 0.64% stake to market, or 1.5 bn ordinary shares, guiding on a price range of SAR 26.70-29.00 a piece, it said in a statement on Thursday.

The timeline: Institutional book-building gets underway in just a couple of hours and will run until Thursday, 6 June, according to a separate statement (pdf).

Pundits are tipping the secondary share sale as the sixth largest globally since Aramco’s USD 30 bn Tadawul IPO in 2019, and the fourth largest follow-on offering within the same period, Bloomberg reports.

Aramco is courting international and regional institutions for the offering. The institutional tranche of the sale will account for at least 90% of the shares on offer, while no more than 10% will be allocated to retail investors, according to the prospectus (pdf) for the transaction. The offering will be Regulation S compliant, making it easier for global institutional investors to take part.

Who’s selling? Aramco’s largest shareholder, the Saudi government, is selling down its position to an 81.55% stake from 82.19%. The treasury will take home most of the offering’s proceeds to support its diversification strategy and reduce the local economy’s reliance on oil revenues. Its shares will remain in lock-up for a period of six months from the first day of trading.

IN CONTEXT- The transaction comes as the government looks to unlock non-oil sources of income to plug its budget deficit and push bns of USD worth of gigaprojects out of the pipeline. Think massive investments in sports, AI, tourism, and infrastructure.

Remember- PIF upped its stake in Aramco ahead of the expected sale: Sovereign wealth fund PIF doubled its stake in Aramco to 16% in March, which the oil company says did not affect its total number of issued shares nor its operations, strategy or dividend distribution policy. The sale “may certainly bolster the PIF balance sheet” Helima Croft, global head of commodity strategy at RBCs investment bank, tells S&P Global.

Key dates to watch:

Institutional investors will be able to place their orders starting today until Thursday 6 June, for a minimum of 100k shares each. No maximum limit applies;
Retail investors will get a three-day subscription period starting tomorrow until Wednesday, 5 June, for a minimum of 10 shares each with no upper limit;
The final allocation of shares and final price of the offering will be announced on the same day, Friday, 7 June;
Newly sold shares will start trading on Sunday, 9 June, following the completion of negotiated trades and the deposit of shares into retail investors’ portfolios;
Excess subscription amounts will be returned on Tuesday, 11 June.

Buyers can expect part of a USD 124 bn dividend, which Bloomberg Intelligence expects will amount to a dividend yield of 6.6%. Aramco is set to boost its dividend this year by as much as 30% over 2023 thanks to a performance-based dividend, despite a 14.4%y-o-y dip in net income in 1Q 2024 to SAR 102.3 bn on lower crude oil sales.

What the pundits are saying: “The stock hasn’t performed well recently but it’s a fantastic buy-and-hold position,” Ryan Lemand, chief executive officer of Neovision Wealth Management told Bloomberg. “It is a dividend play for institutional investors,” he said, adding that “risks are mainly related to valuations because the company trades at higher multiples than its peers.

ADVISORS- The Bulge Bracket owns this one. SNB Capital is lead manager. HSBC, BofA, Citi, Goldman Sachs, JP Morgan, Morgan Stanley, Meryll Lynch, and SNB Capital will act as joint global coordinators, bookrunners and financial advisors. Al Rajhi Capital, Riyad Capital and Saudi Fransi Capital will act as domestic bookrunners. Meanwhile, M. Klein and Company and Moelis will act as independent financial advisors. Meryll Lynch will act as the stabilizing manager. White & Case will act as Aramco’s legal advisor. Pwc will act as auditor. Receiving agents include, Alinma Bank, Alrajhi Banking and Investment Corporation, Arab National Bank, Banque Saudi Fransi, Riyad Bank, Saudi Awwal Bank, Saudi National Bank.

PIF joins the push to have Wall Street firms declare Riyadh their regional HQ

The Public Investment Fund is joining a wider government policy drive to prompt Wall Street firms to set up shop in Riyadh, Bloomberg reports, citing people it says are familiar with the matter. The PIF has added language to documents it sends to potential service providers explicitly asking them whether they’ve taken out a regional headquarters license in Saudi. The PIF has yet to formally require the license as a condition of doing business with the megafund.

What they said: “Once there is sufficient adoption of RHQ licenses in a sector, then it increases the pressure on other players in the sector to follow,” Waleed Rasromani, national managing partner for Saudi Arabia at law firm Linklaters, told the business news service. “Many firms in the financial industry are looking carefully at the RHQ rules at the moment.”

Clarity coming? Many bankers are unsure how their Middle East operations (read: presence in the UAE) would have to change as a result of taking out a regional HQ license here. Bloomberg claims the Investment Ministry is working with the Capital Market Authority and the central bank to sort that out.

Aramco unit invests in Chinese rival to OpenAI

An Aramco venture capital fund has invested in a Chinese rival to OpenAI: Prosperity7 , a unit of Aramco’s venture capital arm, Aramco Ventures, has taken a minority position in a USD 400 mn round raised by Chinese AI start-up Zhipu AI, the Financial Times and Bloomberg report.

What gives? “The Saudis don’t want Silicon Valley dominating this industry,” one source close to the fund told the Financial Times.

In context: There are dueling impulses at work here. Saudi in general (and Aramco in particular) has been carefully pursuing closer ties with China, which has been on a drive to get more involved in regional affairs. China is Aramco’s most important markets, whether you’re talking crude sales, refining capacity, or petrochemicals.

But the US has made it clear that it doesn’t want Mideast firms deepening the involvement with China’s tech sector. We believe the Washington and Riyadh are negotiating not two, but three pacts — security and defense, aid for the nuclear power industry, and a third agreement on cooperation in AI and advanced technologies. The latter would include a pledge to bias toward US tech.

Case in point: The UAE’s G42, after balancing between the US and China, ultimately cast its lot with US tech.

Sound smart: Zhipu AI is one of four big Chinese AI outfits (the others are Moonshot AI, MiniMax and 01.ai) that has so far been very reliant on state funding and Chinese cloud infrastructure given US curbs on the industry.

State budget closes FY 2023 in deficit

The government recorded a budget deficit of SAR 81 bn — 2% of GDP — in FY 2023, compared to a SAR 16 bn surplus in its approved budget for the year, according to the latest figures from its Year-End Budget Performance report (pdf). The deficit came on the back of increased spending on economic diversification projects; the latest figures are nearly identical to earlier data released in February.

REMEMBER- The Kingdom reported its sixth consecutive quarter with a budget deficit, posting a deficit of SAR 12.4 bn in the first quarter of 2024 — four times higher than its shortfall in 1Q 2023. Officials are accepting modest fiscal deficits as the price of pursuing growth.

No surprise there: Policymakers have accepted small deficits as the price of continuing to invest in growth: “We intentionally decided to spend more and cause the deficit. If you spend that money right, on productive assets, then it’s money well spent,” Finance Minister Mohamed Al Jadaan said in December during the FY 2024 budget forecast. He signaled it will continue to run deficits to support the “government’s strategic expansionary spending” even as it paced out some components of select gigaprojects. Some officials have taken to calling gigaprojects modular and Neom has gone on a drive to underscore to contractors and bankers that everything is on track.

THE BREAKDOWN-

Non-oil revenues rose 15.5% to SAR 458 bn in FY2023 compared to the approved budget on the back of structural reforms for diversification and improved tax management and collection. Total revenues were up 7.3% y-o-y to SAR 1.2 trn due to a rise in oil and non-oil revenues. Oil revenues came in at SAR 755 bn. Revenues from goods and services tax came in at SAR 262 bn, while revenues from capital gains tax more than doubled to SAR 39 bn. Taxes on foreign trade and custom duties hit SAR 22 bn.

Total expenditures for FY 2023 rose 16.1% to reach SAR 1.3 tn compared to the approved budget due to structural reforms and diversification projects. Public spending on nearly all sectors saw an increase in comparison with the approved budget, with health and development sectors seeing the highest increase at 35.2% to SAR 256 bn. This was driven by additional allocations for social protection programs aimed at alleviating cost pressures. Military spending was the only sector seeing a decline in comparison with the approved budget with a 1.8% drop to SAR 254 bn.

What to expect in 2024: The budget deficit is expected to come in at SAR 79 bn by the end of FY2024, leaving the government short of SAR 86 bn in total financing needs, according to the latest figures (pdf) by the National Debt Management Center.

Alujain finalizes SAR 1.9 bn sale of 35% stake in NATPET

Alujain wraps up a 35% stake in subsidiary Naptet: Tadawul-listed Alujain has sold a 35% stake in its subsidiary National Petrochemical Industrial Company (NAPTET) to Bassel International Holdings for SAR 1.9 bn (USD 500 mn), it said in a disclosure to Tadawul. Alujain’s post-transaction ownership of Naptet settles at 65%. Bassel is a subsidiary of NYSE-listed Lyondellbasell Industries.

Use of proceeds: Alujain will pay down all of its SAR 1.2 bn in debt and will use the rest to pursue “investments that are being studied with the aim of diversifying the company’s sources of income and enhancing the company’s financial stability.”

The details: As part of the agreement, Naptet transferred ownership of its wholly owned subsidiary, Infrastructure Reinforcement Industrial Company (Iric), and 50% of its share in Natpet Schulman to Alujain, the disclosure reads. This transfer ensures that both companies remain under the direct control of Alujain following Naptet’s acquisition.

A snapshot of Naptet’s earnings: Naptet’s net income dropped 49.7% y-o-y to SAR 261 mn in 2022, according to the disclosure. Meanwhile, revenues decreased 6% y-o-y to SAR 1.9 bn.

Market reax: Alujain Corp’s share price rose 1% to SAR 41.10 at market close on Thursday.

Agritech startup Iyris closed USD 16 mn in a series A round

Saudi-based agritech startup Iyris (formerly RedSea) raised USD 16 mn in a Series A round led by San Francisco’s Ecosystem Integrity Fund (EIF) with participation from existing and new investors including Global Ventures, Dubai Future District Fund, Kanoo Ventures, Globivest, and Bonaventure Capital, according to a press release. Iyris has international operations in the UAE, Egypt, Morocco, Spain, Portugal, Mexico and North America.

What we don’t know: Information about the equity size the shareholders will have to give up in return for the investment, and the structure of the investment wasn’t disclosed. It’s also unclear how much each institution invested in the round.

Use of proceeds: The freshly raised funds will go towards increasing the company’s sales coverage and international sales pipeline for its SecondSky greenhouse covers and shade nets. This is in addition to developing the agritech firm’s heat blocking products and its hybridized plant genetics.

The pitch: “Iyris’ suite of products is tailored for growers in harsh and volatile conditions, who have historically been underserved by AgriClimate Tech innovation. These growers, who often operate on thin margins, have few options to better manage their farms to reduce the risk of crop loss, increase yields, and reduce water and energy consumption,” said Sasha Brown, a partner at EIF.

By the numbers: Iyris claims that its products can save energy and water consumption by up to 90% in its target markets with “the transparent heat-blocking greenhouse roof – alone – has delivered reductions in energy usage by over 40% and water consumption by 30% at customer installations.”

ADVISORS- Kirchner Group and King & Spalding advised Iyris on the transaction.

AANAAB GETS INVESTMENT FROM RETHINK-

ALSO- Saudi-based edtech Aanaab secured an undisclosed investment from US-based edtech venture capital Rethink Education to help provide training solutions to school teachers and professionals, according to a statement. This investment makes Aanaab the first Saudi-based edtech company to receive funding from an international edtech VC fund and one of the few in the MENA region, according to the statement.

About the platform: Anaab is a digital training platform that advances the professional development of K–12 teachers through courses, licensing, and qualifications, predominantly in Arabic. It currently has over 200k teachers and 250 schools across 10 countries in the Mena region.

United Mining Industries reappoints Raed Al Mudiaheem as chairman

The board of Nomu-listed United Mining Industries has reappointed Raed Al Mudaiheem (LinkedIn) as chairman of the board for a three-year term that began on Thursday, according to a disclosure to Tadawul. Al Mudaiheem has served as the company’s chairman since February 2018. He is also the chairman of Jeddah Airports Company (Jedco Ksa) and deputy chairman of Jeddah Chamber.

Aramco’s secondary sale is getting all the attention

It was a mixed bag for Saudi in the foreign press, with Aramco’s share offering, the government’s efforts to expand the number of foreign financial firms setting regional headquarters in the capital, and some football leading the conversation. Aramco’s planned share offering today is getting coverage from Reuters | Bloomberg | Financial Times | AFP | Associated Press | The Wall Street Journal and others. Meanwhile, Aramco’s CEO Amin Nasser is getting some love from Reuters.

Acwa Power eye green hydrogen production in Tunisia. Plus: advertising, debt and manufacturing

RENEWABLES-

Acwa Power sets eyes on Tunisian green hydrogen project: Renewables giant Acwa Power signed an MoU with the Tunisian government to implement a green hydrogen project in the North African country, Tunis Afrique Presse (TAP) reports. The project, which aims to produce 200k tons of green hydrogen in the first phase, will include a 2 GW electrolysis unit and a solar and wind power plant with a total capacity of about 4.1 GW with total investments of USD 6.2 bn. Feasibility studies on the project could take two to four years, with a planned launch in 2027-2028 and a production date of 2030, according to Tunisian officials. Further stages will bring concentrated renewable energy capacity up to 12 GW with green hydrogen production tripled to over 600k tons a year.

Off to Europe: The hydrogen will be exported to Europe via the SoutH2 Corridor pipeline which connects North Africa to Italy, Austria, and Germany, according to Arab News.

M&A WATCH-

Aramco completed the acquisition of a 40% stake in oil retail company Gas & Oil Pakistan (GO), it said in a statement. The acquisition gives Aramco access to over 1.2k GO retail fuel stations across Pakistan. It signed a binding agreement last year to acquire a 40% stake in the oil marketing company. The value of the transaction was not made public.

The oil giant has been making moves in the fuel retail market for some time: Aramco recently completed its acquisition of a 100% equity stake in Chile’s fuel distributor Esmax Distribución to mark its entry into fuel retailing in South America. It is mulling an entry into the Malyian fuel market through a potential acquisition of Shell’s units in the Southeast Asian countries. It is also looking to tap Africa as it seeks countries with fast growing economies. Aramco also set up its subsidiary Saudi Aramco Retail in 2018 as part of a strategy to bolster its downstream value globally.

TAX

Saudi and Qatar have inked an agreement to avoid double taxation, with the pact being signed by Finance Minister Mohamed Al Jadaan and his Qatari counterpart, Ali Al Kuwari, according to a statement by the finance ministry.

ADVERTISING-

Faden Media Company — a wholly owned unit of Arabian Contracting Services — has landed four outdoor advertising contracts in Riyadh worth a combined SAR 944 mn with Riyadh municipality development arm Remat Al Riyadh Development, the parent company said in four separate disclosures to Tadawul (here | here | here | here). The agreements cover digital billboards as well as signage on taxis and public buses.

AND- The board of Arabian Contracting Services has recommended a 10% capital increase to SAR 550 mn through transferring SAR 50 mn from retained earnings to the company’s capital. It said in a disclosure to Tadawul. The capital increase by Arabian Contracting comes under its plan to support expansions.

DEBT WATCH-

#1- Alkhorayef Water and Power Technologies has increased its Sharia-compliant credit facilities from the Saudi Investment Bank to SAR 380.5 mn from SAR 180.5 mn, it said in a disclosure to Tadawul. Information on the duration of these facilities or how they will be utilized has not been provided.

#2- Nomu-listed Obeikan Glass has lined up a SAR 50 mn in Sharia-compliant credit facility from Saudi Awwal Bank to finance its working capital, it said in a disclosure to Tadawul.

MANUFACTURING-

#1- Tadawul-listed Middle East Specialized Cables Company (Mesc) said its UAE subsidiary Mesc Ras Al Khaimah UAE was awarded a contract “to supply a range of its products” with a value of up to SAR 225 mn (USD 60 mn) with a UAE JV comprising the National Petroleum Construction Co. (NPCC) and Italy’s Saipem SpA, it said in a disclosure to Tadawul. The exact value of the contract is subject to change due to price fluctuation in needed materials with the determined supply period beginning in Q4 2024 and ending in Q4 2025. Final contract terms will still be determined and signed by both parties.

#2- Plastics manufacturer Arabian Plastic Industrial (Apico) kicked off operations at its new plant in Al Kharj Industrial City, it said in a disclosure to Tadawul. The financial details and production capacity were not disclosed. The inauguration comes months after Apico signed a 20-year lease agreement with the Saudi Authority for Industrial Cities and Technology Zones (Modon) to set up a new manufacturing facility in light of growing demand from consumers in the central and eastern regions, Argaam reported.

#3- Nomu-listed Group Five Pipe will manufacture and supply spiral-welded steel pipes to Aramco under a SAR 186 mn contract, it said in a disclosure to Tadawul.

#4- Tadawul-listed East Pipes Integrated Company will manufacture and supply steel pipes to Al Rashid Trading and Contracting under multiple contracts worth over SAR 57 mn, it said in a disclosure to Tadawul.

EDUCATION-

Naseej Tech has secured a SAR 11.3 mn contract from the National eLearning Center to operate and maintain its learning management system, ensuring its efficiency and adapting to the latest technological practices in e-learning, it said in a disclosure to Tadawul.

Capital inflows to emerging economies forecasted to rise 32% in 2024

Emerging economies are expected to attract USD 903 bn in capital inflows this year, marking a 32% y-o-y increase thanks to a recovery of foreign direct investment and increased cash inflows into equity portfolios, according to a report by the Institute of International Finance (IIF) cited by Reuters. “A global ‘soft landing’ scenario makes for a positive picture for capital flows to EMs,” the report writes.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Saudi Arabia, Egypt, and the UAE are expected to account for 80% of all capital inflows to the Middle East — in no small part thanks to the UAE’s USD 35 bn investment in Ras El Hekma, which the Egyptian government thinks could pull in a further USD 150 bn in investment. For the Middle East and Africa as a whole, the IIF thinks we will see some USD 149 bn in net nonresident capital flows in 2025, up from USD 115 bn last year, while also seeing net outflows of resident capital settling.

The fine print: These inflow projections hinge on accelerated economic growth in emerging markets as well as “significant” rate cuts in developed economies, the report writes. The report’s projections are based on the assumption that the Federal Reserve will cut interest rates by 0.25 percentage points later this year and bring down rates to 3.7% by the end of 2025, along with the EU and UK beginning rate cuts in June or July.

MARKETS THIS MORNING-

TASI	11,503	-1.7% (YTD: -3.9%)
MSCI Tadawul 30	1,436	-1.7% (YTD: -7.4%)
NomuC	26,610	+1.2% (YTD: +8.5%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	26,923	-0.6% (YTD: +8.2%)
ADX	8,863	+1.3% (YTD: -7.5%)
DFM	3,978	+0.2% (YTD: -2.0%)
S&P 500	5,278	+0.8% (YTD: +10.6%)
FTSE 100	8,275	+0.5% (YTD: +7.0%)
Euro Stoxx 50	4,984	0.00% (YTD: +10.2%)
Brent crude	USD 81.11	-0.9%
Natural gas (Nymex)	USD 2.59	+0.6%
Gold	USD 2,346	-0.9%
BTC	USD 67,737	+0.3% (YTD: +61.2%)

THE CLOSING BELL: TADAWUL-

The TASI fell 1.7% on Thursday on turnover of SAR 13.1 bn. The index is down 3.9% YTD.

In the green: Medgulf (+7.7%), Amak (+5.4%) and Awpt (+4.6%).

In the red: Acwa Power (-10%), Cenomi Retail (-7.9%) and Tawuniya (-6.4%).

THE CLOSING BELL: NOMU-

The NomuC rose 1.2% on Thursday on turnover of SAR 36.4 mn. The index is up 8.5% YTD.

In the green: Alrasheed (+12.6%), Osool & Bakheet (+12.4%) and Al Babtain Food (+6.9%).

In the red: Miral (-8.9%), Riyadh Steel (-7.8%) and Alrashid Industrial (-7.0%)

CORPORATE ACTIONS-

#1- The board of Tadawul-listed Banque Saudi Fransi has recommended more than doubling the bank’s capital increase to SAR 25 bn by way of capitalizing some SAR 12.9 bn in retained earnings and statutory reserve, it said in a disclosure to Tadawul. The move aims to “strengthen the bank’s financial position which contributes to achieving its strategic objectives.”

#2- Shareholders of Tadawul-listed Al Etihad Cooperation Ins. approved the board’s recommendation to increase the company’s capital by 11.1% to SAR 500 mn, it said in a disclosure to Tadawul. The capital increase will be made by transferring SAR 50 mn from retained earnings to the company’s capital.

ALSO- Shareholders approved a dividend of SAR 27 mn for FY 2023 at SAR 0.6 a piece to eligible shareholders, according to the disclosure.

#3- The board of Tadawul-listed fertilizers maker Sabic Agri-nutrients approved a dividend of SAR 1.4 bn at SAR 3 apiece for 1H 2024, it said in a disclosure to Tadawul. The distribution date was set for Monday, 22 July.

#4- Shareholders of Tadawul-listed Solutions by Stc approved the board’s recommendation to distribute dividends of SAR 714 mn at SAR 6 per share for FY 2023, it said in a disclosure to Tadawul . The dividends will be distributed on Wednesday, 26 June.

#5- Shareholders of Tadawul-listed Makkah Construction and Development approved the board’s recommendation for a dividend of SAR 247 mn at SAR 1.5 apiece for FY 2023, it said in a disclosure to Tadawul (pdf). The distribution date is yet to be announced.

#6- Shareholders of Tadawul-listed Gulf Insurance Group approved the board’s recommendation for a dividend of SAR 78.8 mn at SAR 1.5 per share for FY 2023, it said in a disclosure to Tadawul (pdf). The distribution date is yet to be announced.

#7- Tadawul-listed homegrown supermarket group BinDawood Holding completed the purchase of shares allocated to its employee’s stock long-term incentive program, it said in a disclosure to Tadawul. The supermarket group bought 2 mn shares worth SAR 15 mn at SAR 7.50 per share. The move aims to attract and retain key talents to help in contributing to the group’s growth.

CALENDAR

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.

20 June (Thursday): Norah premiers in theaters.

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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