Good morning, everyone. Dhu al-Hijjah’s crescent appered in the sky, and the first day of the blessed Dhu month has begun. Arafat Day will come on Thursday, 5 June, followed by Eid al-Adha, the Supreme Court announced last night. We surely cannot wait for next week’s extra-long weekend.

We have a brisk issue for you this morning, led by Aramco tapping the bond markets for USD 5 bn in USD-denominated notes, and the muted debut of United Carbon Industries on the main market (perhaps it WAS a little overvalued, after all). Let’s dive in.

WEATHER- The forecast is windy today in Al-Jouf, Tabuk, Madinah, Makkah, Riyadh, Qassim, and Hail. Riyadh is expected to see a high of 44°C and a low of 29°C today, while Jeddah’s mercury will go as high as 35°C and as low as 26°C. Makkah will see a 42°C high and 30°C low.

WATCH THIS SPACE-

#1- Chinese Premier Li Qiang called on GCC and Southeast Asian to unite their efforts and harness their complementary strengths, during the ASEAN-GCC-China summit held in Malaysia yesterday. “We should firmly expand regional opening up and develop a big market,” Qiang said.

The GCC concurs: There is a lot of potential for trilateral cooperation between the GCC, ASEAN, and China, state news agency SPA quotes GCC Secretary-General Jasem Al Budaiwi as saying. He highlighted enhancing food and energy security, accelerating digital transformation via joint innovation centers, climate action through investment in clean energy and green finance, and protecting freedom of navigation, particularly in the Red Sea and Gulf of Aden as areas of common interest.

ALSO- Foreign Minister Faisal bin Farhan outlined goals to accelerate the transition to clean energy, leverage China’s Belt and Road Initiative for ASEAN-GCC connectivity, and develop the digital economy by empowering startups and expanding public-private partnerships, SPA reported separately.

By the numbers: The combined GDP of the three blocs exceeds USD 24 tn (over 22% of global GDP), with projected annual growth of 4-6% until 2030, Al Budaiwi said. He added that the joint trade volume between the GCC and ASEAN and China could exceed USD 500 bn by 2030, up from USD 347 bn in 2023.

Solid foundations: The blocs already have existing strategic cooperation frameworks in place such as the GCC-ASEAN plan (2024-2028) established at the October 2023 Riyadh Summit, and the GCC-China Joint Action Plan (2023-2027) from the December 2022 Riyadh Summit.

#2- The Aseer Investment Forum is set to unveil over SAR 4 bn in new investments across more than 40 opportunities in the region, Asharq Al Awsat reports, citing the keynote speech by Prince Turki bin Talal bin Abdulaziz yesterday. The announcement marks the opening of the forum’s second edition and reflects growing momentum under the Aseer Strategy.

Currently, 79 projects are underway in the region. Of those, 49 are under development and pulling in SAR 25.6 bn in investments, while another 30 confirmed projects are valued at SAR 3.8 bn, according to Abdulaziz. Since the strategy’s rollout, total investments have topped SAR 5 bn from names like the Public Investment Fund, the Tourism Development Fund, and the Social Development Bank.

#3- Dome International stretches Nomu IPO subscription window: Qualified investors now have until Sunday, 1 June to subscribe to the Nomu IPO of Dome International for Investment, after the Riyadh-based school operator extended the subscription window which was initially set to wrap up on Monday, 26 May, according to a filing to Tadawul citing a supplementary prospectus (pdf). Investors can book between 10 to 292.5k shares each, with the final allocation of shares also pushed back to Tuesday, 3 June from 1 June.

About the offering: Dome is looking to raise SAR 35.7 mn by floating some 850k new shares on Tadawul’s parallel market at SAR 42 apiece, representing 14.53% of its post-IPO capital.

ADVISORS- Watheeq Capital is quarterbacking the transaction as financial advisor, with Derayah serving as lead manager and RSM as accountant. Receiving agents include SNB Capital, Riyad Capital, BSF Capital, and Al Jazira Capital, among others.

DATA POINTS-

#1- Consumer spending via point-of-sale (PoS) transactions in the Kingdom was down 5.5% w-o-w in the week ending Saturday, 24 May, reaching SAR 11.7 bn, according to the Saudi Central Bank’s report (pdf). The number of weekly transactions also fell 5.3% w-o-w to just under SAR 206 mn.

The details: Food and beverages made up the biggest chunk of spending in terms of value over the week, but experienced an 8.4% fall w-o-w to SAR 1.7 bn. Restaurants and cafés came in second place, but also fell by 6.7% w-o-w to over SAR 1.6 bn. This was followed by gas stations spending, which dropped 6.2% w-o-w to just over SAR 872 mn, and healthcare, which fell 6.1% w-o-w to SAR 742.2 mn.

Riyadh had the highest value of PoS transactions at SAR 4.3 bn, followed by Jeddah at SAR 1.7 bn.

#2- The Haramain High-Speed Railway is set to operate over 4.7k scheduled trips during this Hajj season, providing more than 2 mn seats, up by 400k compared to last year’s season, state news agency SPA reported on Monday. Daily trips are set to gradually increase throughout the season, reaching 140 trips at peak times, with a train arriving at Makkah station approximately every 25 minutes to support smoother crowd movement and reduce pressure on roads.

#3- Over 1.1 mn pilgrims have landed in the Kingdom as of Monday, the General Directorate of Passports said in a post on X yesterday. A little over 1 mn pilgrims entered via airports, 53.8k via land ports, and 4.3k via sea ports.

OIL WATCH-

Opec+ advanced its key meeting for deciding July oil production levels by one day to 31 May, Bloomberg reports. The date change was simply a reflection of scheduling issues, not a policy shift, an unnamed delegate told the business news service. The oil cartel is also due to hold a set of virtual meetings on today review group-wide output quotas.

Nothing set in stone yet: Russian Deputy Prime Minister Alexander Novak said the group has yet to formally discuss a production hike, Reuters reported, citing Russian news outlet RIA.

Expectations are all pointing to an increase: The group could approve a further 411k bbl / d increase in July for the third consecutive time, after deciding to increase May and June outputs.

SPORTS-

#1- Al Ittihad clinched the Saudi Pro League (Roshn Saudi League) title after a narrow (1-0) win against Damac Club Monday night, it said in a post on X. The champions also broke the record with an 83-point finish in the league.

Who didn’t make the cut: Al Wehda (16th, 33 points), Al Orobah (17th, 30 points), and Al Raed (18th, 21 points) were relegated to the First Division League. Al Akhdoud narrowly avoided relegation, with 34 points in 15th place, SPA reports. Neom and Al Najma were promoted to the Pro League next season, with the third team yet to be decided on Thursday when Al Hazm meets Al Adalah.

#2- SURJ Sports Investment and Kings League are launching Kings League MENA later this year with Saudi Arabia as the inaugural host, according to a press release. The seven-a-side football league is the seventh in the League’s global portfolio and will combine regional football talent, digital content, and live events. Details on teams, celebrity owners, and the competition’s format will be announced as the league builds up toward its kickoff.

About the league: The Kings League was founded in 2022 by former Spanish footballer Gerard Piqué and features modified rules, including tie-breaker penalty shootouts, unlimited substitutions, and “secret weapons” for more dynamic and entertaining games. The league’s global portfolio includes Spain, the Americas, Brazil, France, Italy, and Germany.

#3- The Esports World Cup is adding Honor of Kings to its roster, featuring a USD 3 mn prize pool for 18 global teams under a three-year EWC partnership, according to a statement. The Honor of Kings tournament will kick off on 15 July with 16 teams distributed across four groups.

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THE BIG STORY ABROAD-

The Trump administration is pressing ahead with its crackdown on international students, halting new visa interviews and preparing to expand social media vetting. The push — which has targeted Harvard and other Ivy League schools with more and more restrictions — is framed as an effort to combat anti-Semitism, following last year’s widespread pro-Palestinian protests in US universities.

ALSO- Trump and friends are doing business as usual: Trump Media, largely owned by Trump and the parent company of Truth Social, announced it will raise USD 2.5 bn to invest in Bitcoin, by selling 58 mn shares as well as convertible bonds. Meanwhile, Elon Musk’s brain-mapping startup Neuralink reportedly raised USD 600 mn in a funding round that put its valuation at USD 9 bn.

CLOSER TO HOME- Germany is considering restricting military exports to Israel, citing concerns about targeting civilians. “The massive military strikes by the Israeli army in the Gaza Strip no longer make any sense to me,” Chancellor Friedrich Merz said yesterday.

The shift in tone from allies of Israel coincides with a chaotic first day for the US andIsrael-backed Gaza Humanitarian Foundation, which saw thousands of Palestinians overrunning aid sites in Rafah, shots fired in the air and private security officials fleeing the scene. The little-known foundation’s operations were widely expected to be disastrous, mired in the last few days by a shady contracting process with Tel Aviv and multiple resignations of senior staff.