Banks well-positioned to grow this year

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Retail investors can now buy pieces of sovereign sukuk

Good moring, wonderful people. We hope you had a great weekend and are looking forward to a productive week.

PSA- We have about 35 days left until the first day of Ramadan.

Things HAPPENING TODAY on which you might want to keep an eye:

#1- FinMin, NDMC launch maiden retail saving sukuk program: Citizens of legal age can buy into sovereign sukuk starting today until Tuesday, 6 February, state news agency SPA reported last week. The Finance Ministry along with the National Debt Management Center (NDMC) have launched this shariah-compliant retail saving instrument in a bid to diversify the nation’s savings offerings. The sukuk will be marketed under the name Sah, short for “sukuk hokoumiyya” in Arabic.

The program will feature monthly issuances by the NDMC that carry annual fixed yieldsvarying in value from month to month depending on market conditions. Every issuance matures in 12 months and has no subscription fee.

The details: The minimum subscription amount is SAR 1k, while the maximum is SAR 200k per investor for the total duration of the program.

Investors can subscribe through SNB, Al-Jazeera Capital, Alinma Investment, SAB Invest, and Al-Rajhi. You can find the program’s issuance calendar here.

#2-Blinken kicks off his fifth regional visit since the outbreak of war in Gaza: US State Secretary Antony Blinken will be making visits to Saudi Arabia, Egypt, Qatar, Israel, and the West Bank starting today untilThursday, 8 February, according to a US Department of State statement. Information about the order of the visits and with whom Blinken will be meeting wasn’t made public, but we think he’ll touch down in Riyadh first.

On the Agenda: Trying to lay the groundwork for a longer ceasefire in Gaza if Hamas releases Israeli hostages, reiterating Washington’s stance on freedom of navigation in the Red Sea against the backdrop of recurring Houthi attacks, and talking up chances of a longer-term solution to the conflict between Israel and Palestine.

Saudi-Israeli normalization? The State Department seems to be floating trial balloons to gauge Saudi reaction to a slower roll on Palestinian statehood — including watered-down Israeli commitments. The move comes after Israeli Prime Minister Benjamin Netanyahu pushed back hard on the idea of recognizing an independent Palestinian state.

Iraq, Jordan aren’t on itinerary: Three US soldiers were killed last week in a drone attack in Jordan. Iran proxy Islamic Resistance in Iraq claimed responsibility for the fatal attack.

#3- The General Authority for Military Industries (Gami)’s World Defense Showkicks off today in Riyadhand runs through Thursday. The exhibition, which aims to be a B2B event for the defense industry, will showcase global technological developments from the industry globally.

WEATHER- Expect cooler weather and scattered clouds in Riyadh, heavier cloud cover in Madinah and a clear day today in AlUla.

Riyadh: 18°C daytime / 10°C overnight
Madinha: 23°C daytime / 10°C overnight
AlUla: 18°C daytime / 4°C overnight

WATCH THIS SPACE-

#1- We’re not yet members of the Brics, take 2: The Kingdom is still considering an invitation to join Brics, an unnamed Saudi official told Reuters on Thursday. The remarks cam after a South Africa’s foreign minister said the Kingdom had formally joined the alliance. "Saudi Arabia has not yet responded to the invitation to join BRICS. It is still under consideration," the official said.

REMEMBER- Officials in Riyadh said as recently as two weeks ago that it wasn’t a sure thing that the Kingdom would join the alliance, noting that the 1 January date for accession was not a deadline.

#2- Soudah Peaks tender coming up in Q3? Real estate developer Soudah Development Company (SDC) is set to issue a tender for the first phase of luxury mountain tourism destination Soudah Peaks in the third quarter of this year, Meed reported last week, citing sources it says are close to the project. “The design works are still ongoing and the tender for the first phase is likely going to be floated in the third quarter of this year,” they said. The masterplan, which includes six development zones, will be developed in three phases. The first phase will see the development of five of the six development zones.

About the project: Launched by Crown Prince Mohammed bin Salman last year, the project is situated 3k meters above sea level in what is the Kingdom’s highest point. It extends from the region of Soudah to parts of Rijal Almaa with a project area of 627 square kilometers. It aims to contribute USD 7.8 bn to the Kingdom’s cumulative GDP by 2033.Soudah Development is a wholly-owned unit of the Public Investment Fund.

#3- SNB Capital has gotten regulatory clearance to take two new funds to market. The funds include a moderate multi-asset fund and a separate multi-asset growth fund. The Capital Market Authority released no additional detail about the two funds.

OIL WATCH-

OPEC+ leaves fate of production cuts to spring: OPEC+ will revisit voluntary oil production cuts in March after it agreed to keep output policy unchanged in its latest meeting last week, Reuters reported, citing two OPEC+ sources.

“Healthy” meeting: “The meeting was a very healthy, quick meeting and what we noticed is that there is good cohesion among members. There was reiteration of commitments,” one of the sources said.

Remember- A Reuters poll of more than three dozen analysts sees oil prices staying flat this year as production cuts and tensions in the Red Sea are balanced off by expanding production in the US, Canada, Brazil and Guyana, as we noted on Thursday.

ALSO- Shipments from the Kingdom’s Muajjiz terminal more than doubled last month to 18 mn barrels from 8 mn barrels in December, data compiled by Bloomberg showed, as Aramco worked around Red Sea tensions

THE BIG STORIES ABROAD-

#1- British and American forces struck 36 Houthi facilities in Yemen yesterday, one day after the US launched air strikes against 85 targets in Iraq and Syria that it claimed have ties to Iran’s Revolutionary Guards Corps, killing 40, Reuters reported. “Our response began [on Friday]. It will continue at times and places of our choosing,” US President Joe Biden said in a statement. The attacks come in response to an Iran-backed attack that killed three US servicemen in Jordan last week.

#2- Egypt still hasn’t agreed to an expanded IMF facility, but a statement by the lender suggested talks are nearing completion. EnterpriseAM Egypt reports this morning that an agreement is likely several days away and could unlock USD 6-10 bn in financing. Also in Egypt: The country’s central bank raised interest rates 200 bps in a surprise move late on Thursday.

#3- Inching closer to the world’s first AI Act: EU officials have signed off on the “final compromise text” for the AI Act — the world’s first. The landmark legislation that was voted on last month aiming to safeguard the use of AI. The act now awaits the greenlight from EU lawmakers.

CIRCLE YOUR CALENDAR-

The PIF Private Sector Forum takes place in Riyadh this coming Tuesday, 6 February to Wednesday, 7 February, the PIF said on Linkedin. The event will bring together the fund, portfolio companies, private sector and others to help advance economic growth.

The Hail Toyota International Rally which will kick off on 8 February and wrap up on 10 February. You have until Saturday, 27 January to register.

Filipino exporters are coming to town: A business-matching tour will kick off on Saturday, 10 February, where a group of Filipino exporters of food, beverage and personal care products will tour Riyadh, Jeddah, and Dammam to market their businesses, Arab News reports.

The Saudi Capital Market Forum will open on Monday, 19 February and wrap up on Tuesday. Held under the theme "Powering Growth," the event will bring together members of the global financial landscape for discussions on the capital markets and investment strategies.

Riyadh will host the International Conference on Sand and Dust Storms in the ArabianPeninsulafrom Monday, 4 March to Wednesday, 6 March. The conference will address regional challenges caused by sand and dust storms and discuss monitoring systems, mitigation strategies, economic and infrastructural impacts, and more.

Tickets are on sale for the 2024 Saudi Arabian Grand Prix, scheduled for Jeddah from 7-9 March.

Riyadh will host a World Economic Forum special meeting on 28-29 April.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Saudi banks well-positioned for expansion this year, says S&P

The Saudi banking system is well-positioned for continued growth this year on the back of robust credit demand in non-oil sectors and economic diversification, according to S&P Global Ratings’s GCC Banking Sector Outlook 2024 report (pdf). On the whole, GCC banks are projected to maintain solid capitalization, profitability, provisioning, and liquidity, the report said, predicting "broad stability in key metrics across GCC banks and banking systems in 2024."

GCC banks on the whole will see slightly slower credit growth: Credit growth will moderate slightly on the back of an unfavorable base effect and a more cautious approach to lending, the report noted. This comes amid a persistent high interest rate environment and uncertain external macroeconomic conditions, S&P Global said.

Saudi and the UAE are expected to have the strongest return on assets (RoA) during the year, with high levels of capitalization making them favorable when compared to regional or global peer groups, the report said.

Where do the risks lie? The report named four areas that could present risks:

A "worsening geopolitical environment," where "proxy conflicts" with some level of GCC involvement could have an impact;
Oil price volatility;
Exposure to the real estate sector;
Some GCC banks’ expansion into what the report referred to as "high-risk jurisdictions" such as Egypt and Turkey, with exposure to both countries estimated at USD 160 bn. Saudi banks have less exposure here than do other regional lenders, S&P noted.

Real estate exposure in particular is a risk for UAE banks, the report said, as the ratings agency expects the real estate sector in Dubai see price corrections after prices soared last year. High vacancies in the commercial real estate sector could also lead to a slowdown in growth, it added.

Land routes though Kingdom, UAE tested as Houthi attacks on Red Sea ships continue

Land routes through the Kingdom and the UAE are emerging as a potential lifeline for trade amid the crisis in the Red Sea, Bloomberg reported over the weekend. The commercial trade routes in the "heart of the Middle East" are designed to avert the Bab El Mandeb strait in the southern Red Sea, a choke point the Houthis have been exploiting.

What we know: Israeli software startup Trucknet Enterprise is among those testing the routes, sending goods from ports in the UAE and Bahrain through the Kingdom and Jordan towards Israel and Europe, its CEO Hanan Fridman told business information service. The route, which hasn’t been tapped before on a commercial level due to strained ties between Israel and Arab countries, saw Trucknet sending cargo from India, Thailand, South Korea and China in recent weeks. Asian-bound goods were also moving in the opposite direction, helping bring costs down.

WATCH THIS SPACE- German shipping giant Hapag-Lloyd is considering linking Jebel Ali port in Dubai and two eastern ports here with Jeddah on the west coast. Another option by the German group seeks linking Jebel Ali with Jordan, which borders Israel.

REMEMBER- The Houthis have held Red Sea trade hostage for months, causing "the biggest diversion of international trade in decades," according to Bloomberg. The Houthis are looking to put pressure on Israel, but their actions have started to have an impact on some Gulf markets.

The catch: An overland truck route will work for some types of cargo, but Hapag-Lloyd spokesman Nils Haupt admitted that it’s a short term-solution for shippers looking to ship small cargo — “not thousands of containers.” While it may “carry a not-insignificant quantity of traffic, [the land bridge] will remain a niche solution for shipments specifically to Israel," Chris Rogers, head of the supply-chain research group at S&P Global, said.

The risks: "Gulf Cooperation Council states may be hesitant to promote the route as the Houthis have not yet threatened UAE or Saudi maritime assets," according to S&P Global analysts. "A road route via Saudi Arabia and Jordan also would increase risks of cross-border attacks on cargo by Iran-aligned Iraq-based or Syria-based militants," they added.

These routes could serve as a trial run for the planned US-backed India-Middle East-Europe Economic Corridor in which the Kingdom is taking part. The crisis in Gaza has stalled talks on the corridor, which was announced during the G20 summit in India last year.

New regulations for the Privatization Law cover direct awards and set minimum valuation

The new executive regulations of the privatization law went into effect on Friday following their publication in the National Gazette. The changes apply to companies earmarked for privatization in which the state holds a stake of 50% or more. You can find the full set of regulations here.

The two big changes: New valuation requirements and rules on direct awards.

Valuation requirements: Projects earmarked for privatization must have a minimum valuation of SAR 50 mn, while projects offered under a public-private partnership model must have a minimum valuation of SAR 200 mn, according to the regulations. The government entity taking the projects to market has the option to package similar projects together to meet the minimum valuation requirements.

Direct contracting: Projects can be awarded to the private sector through direct contracting only in the following cases:

In emergency situations involving a confirmed and unexpected threat to public safety and security, or / and public health, with potential risks to life, property, or the disruption of public services where general or limited competition procedures would be inadequate;
If the procurer can’t reach an agreement with any of the bidders, or if there is no bidders for the project, or if the bidders fall short of required qualifications;
In cases where only one qualified company has the necessary technology or technical requirements;
If the project requires the use of intellectual property rights, such as patents, owned by a single company.

Ejaro targets regional expansion after closing a pre-Series A funding round from Cooperative Ins.

Car rental platform Ejaro has secured USD 3.3 mn (SAR 12.3 mn) in funding what it is calling a pre-Series A round, Wamda reports. The round was led by local ins. company Cooperative Ins. (Tawuniya) with participation from unnamed angel investors — bringing Ejaro’s total raised capital to USD 4.5 mn.

Where the funds are going: The peer-to-peer car rental outfit will use the capital injection to enhance its product offering and expand regionally. It didn’t offer any information about where, when, or how it plans to expand.

Airbnb for cars: Jeddah-based Ejaro set up shop in 2019 as a licensed peer-to-peer car sharing platform, according to its website. It aims to connect car owners with people looking to rent a caron a short-term basis through its mobile applications (App Store, Google Play) and website. The startupclaims to have facilitated over 25k trips since its inception, generating SAR 2.5 mn for some 100 car owners.

Tapping the ins. market:Ejaro bundles in comprehensive ins. coverage (pdf) schemes, safeguarding car owners against loss or damage from accidents, fires, theft, natural disasters or malicious acts by a third party. The company has partnerships with local insurers including Najm, Absher and Kingdom Brokerage.

BACKGROUND: Ejaro had previously raised some USD 300k in a pre-seed round back in 2020, which was followed by a 850k seed round led by BIM ventures in 2021.

SPPC names pre-qualified bidders for 7.2 GW independent power plants

The Saudi Power Procurement Company (SPPC) has announced a list of 21 pre-qualified developers for its four 1.8 GW independent power plants, it said in a statement (pdf) last week.

The list of pre-qualified bidders include a consortium comprising Abu Dhabi National Energy Company (Taqa) and Japan's largest power generator, Jera, and another comprising local firm Ajlan & Bros and China Power International Holding.

Also on the list: Acwa Power, Marafiq, Saudi Electricity Company, and Jomaih Water and Energy.

Among the Gulf names to qualify: Kuwait's Gulf Investment Corporation and Qatar’s Nebras Power.

Global bidders: EDF, Engie, Siemens, and Mitsubishi, among others.

What’s on the table: The bidders are vying for four projects: Rumah-1, Rumah-2, Nairyah-1 and Nairiyah-2 with a capacity of 1.8 GW each. All will be fired by natural gas and must be equipped with carbon capture and sequestration technology.

Saudi aims to generate 50% of its electricity needs from natural gas by 2030, with the other half coming from renewables.

Followup: How the gov’t is now calculating FDI

We have more color on how the the Kingdom is tracking foreign direct investment data.

The news: The General Authority for Statistics (Gastat) last week said that net FDI inflows dropped 10% q-o-q in 3Q 2023 to SAR 11 bn. Total FDI inflows fell 14.4% q-o-q in Q3, while total outflows of FDI were down 22.5% q-o-q to SAR 5 bn.

Why it matters: It was the first time Gastat released FDI numbers since it moved to a new methodology for FDI calculation back in October. The approach, approved by the IMF, takes into account the standards of the Washington-based lender’s balance of payments manual.

The change: The new FDI calculation system uses data gathered directly from the financial statements of companies and investors to calculate FDI, Deputy Investment Minister for Economic Affairs Saad Al Shahrani told Reuters in an interview last week. The old system was based largely on estimates by SAMA, which Al Shahrani said only accounted for FDI inflows and led to a 25% overvaluation of cumulative FDI stock.

How the new methodology works: “By the end of each year we will align actual numbers from financial statements and the estimates by Gastat based on surveys and try to compile the final numbers,” Al Shahrani said. “We looked at more than 100k financial statements for the last 10 years.... then we were shocked about the details that we gained,” he said.

Jabeur backs WTA finals in KSA. Plus: Golf, cycling, foortball, and more

If it’s Sunday, we must have an avalanche of sports news, and this morning is no exception. Among the stories making headlines over the weekend:

#1- PGA Tour raises big funds, leaving agreement with PIF hanging: The PGA Tour sealed a USD 3 bn investment for a new for-profit company from a group of US sports bn’aires operating as Strategic Sports Group (SSG), it said in a statement last week. The transaction forming the PGA Tour Enterprises "allows for a co-investment from the PIF in the future, subject to all necessary regulatory approvals," the statement read.

Still working both ways: The PGA Tour "confirmed progress" in ongoing talks with the PIF on a potential investment in the future, the statement said, without providing further details. It said that the SSG "has consented to an investment by PIF" subject to regulatory review and approvals.

The catch: There’s speculation in the US and UK press that with the USD 3 bn windfall, PGA could walk away from its proposed merger with PIF-backed Liv Golf and the European Tour — and be in a better position to fight-off competition in the medium-term.

REMEMBER- The PIF and PGA Tour agreed to extend talks into 2024 after failing to agree on terms before a 31 December deadline.

#2- The PIF could be making its first venture into global cycling: PIF unit SRJ Sports Investments is in exclusive talks for a potential investment of USD 270 mn in a new cycling league venture led by several leading European cycling teams, Reuters reported last week.

The background: PIF has reportedly edged out private equity firm CVC in the running to invest and a transaction could wrap up in as little as two months’ time.

The venture is being led by a handful of European cycling teams, including Holland’s Visma-Lease a Bike and British bn’aire Jim Ratcliffe’s Ineos Grenadiers.

Speaking of Ineos Grenadiers: We can’t be the only ones who are drooling over Ratcliffe’s Ineos Grenadier 4x4, can we?

#3- Tunsian tennis star Ons Jabeur is “personally looking forward” to contesting the 2024 WTA tennis finals in Saudi Arabia, pushing back on criticism of the Kingdom’s bid by one-time tennis greats Chris Evert and Martina Navratilova. AFP reported her remarks late yesterday.

“Princess Reema's answer was unbelievable,” Jabeur said in Dubai. “I think classy, elegant, and every player was impressed with the way she addressed Martina's and Chris' letter,” the newswire quoted her as saying.

Jabeur is no stranger to Saudi, having played an exhibition march in Riyadh against Aryna Sabalenka last month. Sabalenka has also said she looks forward to competing in the WTA finals in Saudi.

AND-

The much anticipated heavyweight championship fight between Tyson Fury and Oleksandr Usyk in Riyadh has been rescheduled to 18 May, Queensbury Promotions announced said yesterday on X.
Dania Akeel and Maha Alhamali will compete in theHail Toyota International Rally,with the two Saudi female drivers hoping to secure wins in the FIA World Rally Championship event taking place 8-10 February.
Ronaldo-less Al Nassr thrashed Inter Miami 6-0 over the weekend as an injured Cristiano Ronaldo cheered on his teammates from the stand.
Simon Yates won the AlUla Tour for Team Jayco AlUla while Team Soudal Quick Step’s William Lecerf came in second.

Riyad Bank’s new CEO assumes duties + Federation of Saudi Chambers named new SecGen

Riyad Bank’s Nadir Sami Al Koraya began his tenure as CEO last week after the resignation of former CEO Tareq Al Sadhan (Linkedin) in late January. Al Koraya (Linkedin) joined the bank in June 2013 as group Treasurer, according to his Linkedin profile. He became the bank’s chief treasury and investment officer in 2017.

The Federation of Saudi Chambers has appointed Ahmed Nafea (LinkedIn) as its new Secretary General, state news agency SPA reported last week. Nafea boasts over 14 years of experience in business development and strategic planning. He has been assistant deputy minister of economy and planning since May 2022 and worked with Ma’aden before joining the ministry. He also sits on the board of the Agricultural Development Fund.

PIF launches Alat to manufacture advanced tech. PLUS: Debt, aviation, fintech

MANUFACTURING + TECH-

Alat, a new company owned by the Public Investment Fund, aims to make “Saudi Arabia a global hub for sustainable technology manufacturing that focuses on advanced technologies and electronics,” PIF said in a statement. Alat will focus on seven sectors, it said, including “advanced industries and semiconductors, as well as smart appliances, smart health, smart devices and smart buildings, in addition to next generation infrastructure.”

The move aims to create 39k new jobs in Saudi. The company is chaired by Crown Prince and Prime Minister Mohammed bin Salman. There’s no publicly available information about the capital size of the new venture.

Alat will look to partner with global and local private-sector players and is looking at as many as 30 product categories including “robotic systems, communication systems, advanced computers and digital entertainment products, as well as advanced heavy machinery used in construction, building and mining.”

DEBT-

Tadawul Group has obtained SAR 500 mn in shariah-compliant credit funding from Al Rajhi Bank to finance its mergers and acquisitions, it said in a disclosure to Tadawul last week.The facilities include short-term and medium-term loans with a repayment period of one and five years, respectively. The move plays right into the group’s strategy to pursue sustainable growth and diversify revenues, it said. No further information was provided.

FINTECH-

Digital payments player Network International Arabia can now provide payment services in the Kingdom through points of sale (POS) under a fresh license from the Saudi Central Bank (Sama), the two said in separate statements (here and here). Sama also licensed Barraq to provide e-wallet services, bringing the total licensed companies offering payment services on the local market to 27.

About Network Int’l: Network International is a tech-enabled payments service provider currently operational in over 40 countries including the UAE, Jordan, Egypt, South Africa, Nigeria, according to its official webpage. The company listed on the London Stock Exchange’s (LSE) main market in 2019.

AVIATION-

SGS, Saudia’s Flyadeal renews ground handling services contract: The Saudi Ground Services Co. (SGS) will continue to provide ground handling services to Saudia-owned budget carrier Flyadeal under a three-year contract renewal worth SAR 800 mn, it said in a disclosure to Tadawul last week. The contract covers the services for domestic and international flights at airports across the Kingdom, it said, expecting "sustainable company revenues during the contract period.”

MARITIME-

Mawani set to add new anchorage areas at King Fahd Industrial Port: The Saudi Ports Authority (Mawani) is establishing new docking areas and improving several logistics services in King Fahd Industrial Port in Yanbu, it said in a statement last week. This will include five new docking areas as well as providing essential supplies like fuel and provisions, as well as offering maintenance services for ships.

An initiative to restore sailing ships in Umluj: Developer Red Sea Global (RSG) has restored 11 ships as part of an initiative to restore sailing ships with its partner Tamkeen Association in Umluj, it said in a statement last week. The ships were restored using sustainable techniques contributed by the Energy Ministry’s Oil Sustainability Program and paint maker Jotun, which supplied environmentally friendly paint for the restoration process. RSG is a wholly-owned unit of the PIF.

SAUDIZATION-

The Transport And Logistics Ministry is Saudizing 23k jobs across 28 professions within the sector, said Assistant Minister of Transport and Logistics Ahmed Al Hassan, the Saudi Gazette Reports. These include 10k jobs in the heavy transport, 3k jobs in the passenger transport, and 10k in aviation

Mission accomplished: The Transport General Authority (TGA) has achieved Saudization in 10 professions in the transportation sector, TGA spokesman, Saleh Al Zuwayed, told Al Eqtisadiyah. These include co-pilots, air-traffic controllers, air dispatchers, and road safety engineers and shipping brokers, he added.

Support packages: Al Zuwayed noted that the Human Resources Development Fund (HRDF) offers financial assistance of up to SAR 2.4k for Saudi drivers working in transportation and up to SAR 3k for those working in the delivery services. TGA has inked 30 agreements with the private sector to support Saudi bus and heavy transport vehicle drivers, he added.

MEANWNILE- Full-Saudization for Saudia pilots? Saudia Group, which owns national flag carrier Saudia, is planning a full Saudization of its pilots, spokesman Abdullah Al Shahrani told Al Eqtisadiyah last week. He did not provide a timeframe for the move, but noted that all of the carriers co-pilots are now Saudi nationals.

REMEMBER- Saudia Group said last year that it was committed to Saudization as it unveiled its new brand identity as part of a what it said was a comprehensive transformation strategy.

REAL ESTATE-

Infath is auctioning some 500 properties across the Kingdom: Independent governmental center the Entrustment and Liquidation Center (Infath) has begun public auctions to sell and liquidate 486 residential and commercial properties across 12 regions, state news agency SPA reported last week. Bidding began on Thursday 1 February and will run until Monday 19 February.

HEALTHCARE-

The Scientific & Medical Equipment House was awarded a SAR 34.8 mn contract by the Health Ministry to supply medical devices and equipment across hospitals and healthcare centers in Riyadh, it said in a disclosure to Tadawul last week.

INFORMATION TECHNOLOGY-

Perfect Presentation for Commercial Services (2P) signed a three-year SAR 56.5 mn contractto provide operation and maintenance services to the electronic systems used by the Unified Security Operations Center (911) and the Hajj Security Forces HQ’s buildings in Makkah, it said in a disclosure to Tadawul yesterday.

Turkey’s Erdogan taps new central bank governor

Turkey has a new central bank governor: Turkish President Recep Tayyip Erdogan has appointed Fatih Karahan (bio) as the new head of the country’s central bank after its former governor Hafize Gaye Erkan stepped down, claiming to be facing a smear campaign from local media, Bloomberg wrote.

About Karahan: He has experience working as an economist at the New York Fed and Amazon. He taught at Columbia University and New York University and received his PHD in economics from the University of Pennsylvania. He has been serving as the central bank’s deputy governor since July 2023.

Too much change for an already fragile economy: Erkan held the position for a mere eight months but resigned following allegations that her father was involved in the bank’s affairs. The TRY fell against the greenback following the news, dipping 0.5% to 30.5 per USD — the currency is down 23% against the USD since Erkan assumed her position in June.

ALSO ON PLANET FINANCE-Plans laid for delayed Reddit IPO: Social media platform Reddit has chosen the New York Stock Exchange for its market debut penciled in for March. The company is aiming for an initial valuation of USD 5 bn when it goes public, down from a USD 10 bn valuation in 2021, an unnamed source told the Financial Times.

TASI	11,914.29	+1% (YTD: -0.4%)
MSCI Tadawul 30	1,548.13	+1.2% (YTD: -0.2%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	28,434.37	+0.5% (YTD: +14.2%)
ADX	9,456.25	-0.1% (YTD: -1.3%)
DFM	4,228.74	+0.2% (YTD: +4.2%)
S&P 500	4,958.61	+1.1% (YTD: +4%)
FTSE 100	7,615.54	-0.1% (YTD: -1.5%)
Euro Stoxx 50	4,654.55	+0.3% (YTD: +2.9%)
Brent crude	77.33	-1.7%
Natural gas (Nymex)	2.08	+1.4%
Gold	2,053.70	-0.8%
BTC	43,042.41	-0.2% (YTD: +81.4%)

THE CLOSING BELL-

The TASI rose 1% yesterday on turnover of SAR 8.2 bn. The index is down 0.4% YTD.

In the green: Saudi German Health (+8.4%), AlBaha (+7.7%) and Anam Holding (+6.5%).

In the red: Buruj (-5.3%), Wataniya (-4%) and AlSagr Ins. (-3.5%).

CORPORATE ACTIONS-

Albilad Saudi Sovereign Sukuk ETF will distribute SAR 0.046 as dividends for unit holders for January, it said in a disclosure to Tadawul. Unitholders registered by 5 February will receive payment within 10 business days.

CALENDAR

FEBRUARY

4-6 February (Sunday-Tuesday): SIMEC International Expo, Riyadh.

4-6 February (Sunday-Tuesday): theWorld Defense Show, Riyadh.

5-7 February (Monday-Wednesday): Saudi HORECA 2024, Jeddah.

8 February (Thursday): end of Tuwaiq International Sculpture Symposium, Riyadh.

8-10 February (Thursday-Sunday): Hail Toyota International Rally.

10-14 February (Saturday-Wednesday): Filipino exporters will be in town for a business-matching tour.

9 February- 23 March (Friday-Saturday): Desert X ALUla.

10 February (Saturday): Last day to apply for permits to lease properties to pilgrims during Hajj season.

11- 12 February (Sunday-Monday): The Space Debris Conference, Securing the Future Growth of the Global Space Economy, Riyadh.

12-14 February (Monday-Wednesday): The International Petroleum Technology Conference (IPTC), Riyadh.

19 February (Monday): The Future of Business 2024 Forum, Eastern Chamber’s HQ, Dammam.

19-20 February (Monday-Tuesday): Saudi Capital Market Forum, King Abdullah Financial District, Riyadh.

22 February (Thursday): Founding Day (national holiday)

26-29 February (Monday-Thursday): Big 5 Construct Saudi, Riyadh.

26-29 February (Monday-Thursday): FM EXPO SAUD

26-29 February (Monday-Thursday): Stone and Service Saudi Arabia, Riyadh.

MARCH

4-6 March (Monday-Wednesday): International Conference on Sand and Dust Storms in the Arabian Peninsula, Riyadh.

4-7 March (Monday-Thursday): LEAP 2024, Riyadh.

10 March (Sunday): First day of Ramadan (TBC)

11 March (Monday): Flag Day (national holiday)

APRIL

9 April (Tuesday): First day of Eid El Fitr (national holiday) (TBC)

14-21 April (Sunday-Monday): IMF and World Bank spring meetings, Washington, DC

28-29 April (Sunday-Monday): World Economic Forum’s Special Meeting, Riyadh.

29 April-1 May: Future Hospitality Summit at Al Faisaliah Hotel, Riyadh.

MAY

19-21 May (Sunday-Tuesday): Saudi Energy Convention, Riyadh.

21-23 May (Tuesday-Thursday): The Saudi Food Show, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

17 June (Monday): First day of Eid Al Adha (national holiday) (TBC)

5 June (Wednesday): World Environment Day.

AUGUST

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

SEPTEMBER

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

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

DECEMBER

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

Signposted to happen sometime in 2024:

The AFC Champions League Elite

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