Can watered-down language get KSA on side — without alienating the EU and island nations?

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WHAT WE’RE TRACKING TODAY

Saudi industry minister heads to Seoul to talk up manufacturing, mining

Good morning, wonderful people. We have a cliffhanger for you this morning in Dubai, where Energy Minister Abdulaziz bin Salman landed just hours before a new draft agreement came out of COP28.

The agreement waters down calls for a phase-out of hydrocarbons in a nod to objections from Saudi and other Arab producers — but will European and small island nations sign on? We’ll know more after 8:30am KSA when the COP28 plenary is set to convene.

THE BEST USE OF YOUR TIME THIS MORNING-

BENEDICT EVANS is back with his annual presentation on the macro and strategic trends that will shape technology and business in the new year. Evans rose to prominence at Andreessen Horowitz and now runs his own consultancy — and is a sharp presence on Threads, for those so inclined.

His AI-focused deck this year has few answers, and plenty of questions — many of them worth pondering regardless of the industry in which you do business. Among the questions and takeaways:

The tech venture space is slowing down across the board — except within AI
Finance and tech executives are pushing hardest to figure out what AI means for their businesses. Retail and professional services execs are lagging behind.
Nobody knows what’s next: Is this a platform shift? Does generative AI change the nature of software? Does it take us to artificial general intelligence?

^^ The presentation is at its best when it’s unpacking all the questions within those last three questions. It’s worth an hour of your time this morning to read the presentation (87 easy-to-read slides) and then watch Evans deliver it in this video recorded earlier this month (watch, runtime: 27:40).

MEANWHILE- It’s silly season for forecasters: Of the many odd traditions on Planet Finance, perhaps the one we most look forward to is what Reuters’ Jamie McGeever calls the “quirky, semi-serious” forecasts of unpredictable “Black Swan” events pumped out around this time of year by everyone from sell-side research houses to hedge funds.

Among the top KSA-relevant calls as we head into the new year:

With oil at USD 150, Saudi buys Champions League franchise. (Saxo)
Brent crude falls to USD 40 barrel on recession fears. (Standard Chartered)
Emerging markets stage the best rally in over 10 years. (Standard Chartered)
Saudi Arabia reverses all oil supply cuts. (Morgan Stanley’s EM team)
Egypt restructures its debt. (Morgan Stanley’s EM team)
EM inflows return in size. (Morgan Stanley’s EM team)

HAPPENING TODAY-

#1- Industry and Mineral Resources Minister Bandar Al Khorayef landed in South Korea yesterday and is scheduled to pitch investors on the Kingdom’s industrial, manufacturing, and mining sectors, the state-run news agency SPA reports.

Strong ties with Seoul: The Public Investment Fund signed in October an agreement that will see global car giant Hyundai set up a car plant here in a bid to localize the industry. Last month, the Saudi International Industrial Village Company (SSKIV) and several South Korean firms signed an SAR 21.8 bn agreement to set up a multi-facility industrial park. Bloomberg, meanwhile, reports that Saudi officials could be shopping for missiles from Korea.

#2- Nato Secretary-General Jens Stoltenberg will wrap his two-day visit to Riyadh today after participating in a forum at the Saudi Arabia National Defense University.

#3- The inaugural Global Labor Market Conference kicks off today in Riyadh. The two-day event brings together business leaders, policymakers, regulators, and researchers to chew over the prospects and challenges facing global labor markets — from AI to climate change. The conference takes place at the King Abdulaziz International Conference Center (KAICC).

#4- It’s the second and final day of the World Football Summit Asia in Jeddah. The gathering coincides with the FIFA Club World Cup 2023, also hosted in Jeddah and running 12-22 December.

Speaking of the FIFA Club Cup: Hosts Al-Ittihad put down Auckland City 3-0 in the opener. Al-Ittihad goes on to face Egypt’s Al-Ahly in the second round this coming Friday.

PSA #1-The State Department has broken ground on the site of its new embassy in Riyadh’s Diplomatic Quarter, with US officials saying in a statement it marks a “significant milestone in the enduring US-Saudi bilateral partnership and underscores the commitment of both nations to strengthening ties.” State hopes the building will earn LEED certification for its green footprint

PSA #2- Your kids will be logging into Madrasati this morning if you live in Jeddah, Rabigh, or Khulais as schools move to remote learning in the anticipation of really nasty weather. The national weather center is calling for moderate to heavy rain followed by a sand storm and a chance of hail today from 9am through 7pm.

WEATHER- Cloudy skies and late-morning wind will give way to sunshine this afternoon in Riyadh, with a high of 23°C. Dammam can expect a high of 28°C and sunny skies.

** You’re reading Zero Issue #12 of EnterpriseAM KSA.

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WATCH THIS SPACE-

Over a dozen mining exploration licenses could be up for grabs soon: The Kingdom will offer 40 mining exploration licenses next month, Deputy Industry and Mineral Resources Minister Khalid Al Mudaifer told Asharq Business (watch, runtime: 4:39).

Banking on massive demand for copper: The licenses, which will be announced before the Future Minerals Forum in Riyadh next month, will focus on copper, zinc and iron exploration, Al Mudaifer said, noting, “Copper is one of the most important strategic minerals … due to its use in electric vehicles and renewable energy. Demand for copper in the next 30 years will be for twice the copper consumed or produced in the past 300 years.”

DATA POINTS-

#1- Saudi is one of the world’s top 15 economies after GDP grew 66% in the seven years since the launch of Vision 2030, Asharq Al Awsat quotes Investment Minister Khalid Al Falih as having said during a workshop in Guangzhou, where he’s on a mission to drum up Chinese investment.

#2- Ports in Saudi Arabia handled 737.5k containers in November, a 17% increase on the same period last year, according to figures released by the Saudi Port Authority (Mawani) yesterday. The number of export containers rose 16% to 212k, while the number of passengers arriving in ports rose 6% to 78k.

THE BIG STORY ABROAD

#1- The United States is (slightly) changing its tone on Israel’s war on Gaza with President Joe Biden warning that its ally is “losing support” for its war. Biden called Benjamin Netanyahu’s bombing campaign in Gaza “indiscriminate” and said the Israeli leader needs to accept a two-state solution.

You can feel the worm turning: NYT foreign affairs columnist Thomas Friedman, meanwhile, suggests that Israel can’t bank on money or boots on the ground from the Arab world to rebuild Gaza when it’s done turning the enclave into rubble. Israel must have a “legitimate, effective Palestinian partner and commits to one day negotiating a two-state solution,” he says, suggesting after a visit to Riyadh that Saudi officials are still open to normalizing ties with Israel.

Wait, Thomas Friedman? Isn’t he, uhm … spent? Scoff at his orientalism, his simplistic (often jingoistic) takes (we do), but even his critics admit the guy is having something of a renaissance of late — and is once again being read in western capitals.

#2- Pundits are taking stock of what Google’s Epic app store loss in court means for the future of its Play Store and Apple’s App store. Increasing scrutiny from regulators could “derail profits” for both stores, the Wall Street Journal warns. But don’t expect changes anytime soon — for years, perhaps, CNBC warns: Google is likely to appeal the ruling (which we covered yesterday).

What they’re are missing: The app stores may (or may not — antitrust law, like copyright law, is so often in the eye of the beholder) be anti-competitive, but their existence created a largely safe, multi-bn USD economy. App stores keep users safe from malicious (and just plain bad) third-party apps and are the first line of defense against mobile fraud and predatory practices. Tech enthusiasts and dev nerds alike will want to watch this space closely.

#3- Apple aims to make your iPhone even safer with “stolen device protection,” a feature set to roll out in iOS 17.3 that would “require authentication through Face ID or Touch ID to perform certain actions.” The changes come after fantastic reporting by Wall Street Journal tech columnist Joanna Stern about how easy it was for thieves to take over your digital life if they managed to snag your device and passcode. Not a WSJ subscriber? Head over to the Verge for the rundown.

CIRCLE YOUR CALENDAR-

The FIFA Club World Cupruns through Friday, 22 December in Jeddah. You can buy tickets here.

The Fintech Tour wraps up today. The fintech-focused gathering includes more than 15 events, presentations, and meetups involving key local and international speakers in eight cities across the country.

The International Arabian Horse Show kicks off today and continues through Saturday, 16 December at the King Abdulaziz Center for Purebred Arabian Horses’ headquarters in Riyadh.

Metallica is coming to Riyadh on Thursday as part of the eclectic music festival Soundstorm. Soundstorm runs 14-16 December with a lineup that also includes Pharrell Williams, Chris Brown and Her, DJs Tiesto and David Guetta, Black Eyed Peas, and others.

The Jeddah Book Fair will run until Saturday, with over 1k publishing houses set to attend.

Cycling fans have just two days left until the Arab Road Cycling Championship comes to Riyadh, with the event running 15-23 December.

Riyadh will host theTurkish Super Cup finalbetween Galatasaray and Fenerbahçe on Friday, 29 December at Alawwal Park Stadium as part of the Riyadh Season.

Tickets are on sale for the 2024 Saudi Arabian Grand Prix with less than 100 days to go until the racetrack roars to life in Jeddah from 7-9 March. Grandstand, premium hospitality, and general admission tickets are now available.

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

It’s overtime for COP28 as negotiators try to hash out an agreement

HAPPENING RIGHT NOW- COP28 has run into overtime: Countries remain at loggerheads over the wording of a draft agreement that circulated on Monday, kicking the conference into marathon negotiations on a final text that continued overnight.

A new draft agreement started making the rounds a bit after 5am KSA: Instead of a phase-out of oil and gas, it calls for “transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner ... so as to achieve net zero by 2050 in keeping with the science" with a “need for deep, rapid and sustained reductions in greenhouse gas emissions in line with 1.5C pathways.”

The language is wishy-washy: The agreement now “calls on” companies to make progress on goals including tripling renewable energy capacity, phasing down the “unabated” use of coal power, and “accelerating efforts globally towards net zero emission energy systems” (among others).

Sound smart: In UN-speak, “calls on” is the “‘weakest’ of all the various terms used for such exhortations,” writes Carbon Brief’s Leo Hickman. “In UNFCCC legal jargon, this is known to mean an ‘invitation’ or a ‘request.’”

(Want to go long on the detail? Enterprise Climate has your back — check your inbox at 10am KSA if you’re a subscriber or head over to its website at the same time.)

So where do we stand now? The fundamental question is whether the watered-down language is enough to get KSA on side — without alienating European Union countries and island nations.

In the first corner: Saudi Arabia leads a group of (mostly Arab) oil and gas producers that fiercely oppose the use of “phase out” or “phase down” in any final agreement. Saudi has signaled for more than a week now that it simply won’t sign an agreement that even hints at the end of hydrocarbons, which account for as much as 45% of its GDP.

In the other: The European Union and small island nations, who have variously called the Arab world’s stance “disgusting,” “deeply disappointing,” and “out-of-step.” Climate change is particularly existential for the island countries, who face the prospect of their nations sinking into seas and oceans.

Why it matters: A single “no” vote from the nearly 200 countries participating means there’s no agreement.

The kingmaker? Saudi Energy Minister Abdulaziz bin Salman arrived at the COP28 presidency last night in what observers think is a sign that talks are getting down to brass tacks.

Optimism? US climate envoy John Kerry before the release of the latest draft that he thinks talks are “moving in the right direction,” COP28 CEO Adnan Amin told Bloomberg that negotiators are on the “cusp of an agreement,” and Canada’s climate minister says the pact taking shape should “keep 1.5°C within reach.”

The timeline: The COP28 presidency has called for a plenary session in Dubai at 8:30am KSA.

How western business press sees it: COP28 heads for extra time as majority clashes with Saudi Arabia. (Financial Times)

WHAT CLIMATE CHANGE COULD MEAN HERE

Gulf Cooperation Countries could collectively lose about 8% of their GDP by 2050 on the back of extreme heat and water stress by 2050 if no further adaptation measures are taken, according to a report by S&P Global. Gulf economies are the third most-at-risk in the world given that our “economic geography” makes us highly exposed to climate change.

The silver lining: We have the resources to mitigate against it. Most GCC countries have the fiscal firepower resources to ramp-up investment in adaptation — though there is plenty of upside risk to the total cost of the adaptation bill.

A five-year battle to keep oil prices high?

There’s plenty to think about this morning on the outlook for oil prices in the short, medium and long term — whatever comes out of COP28 notwithstanding.

SHORT- Oil fell more than 3% yesterday to its lowest level in three months on concerns about oversupply as pundits think US economic data predicts softer demand over the coming months. Rising inflation in the US “speaks to a softening demand picture,” Reuters quotes on pundit as saying.

MEDIUM- OPEC+ oil cuts may last long enough to offset a surplus in 2024,some analysts believe. Pushed along by Saudi Arabia, the group pledged a 2.2 mn barrel per day cut extending into 1Q 2024, which analysts and traders are now saying is not long enough to prevent an oil supply surplus next year. Saudi Arabia and Russia have suggested that further cuts will be made if necessary.

Hedge funds are bearish on the outlook for crude, Reuters reports, as traders speculate that Saudi and its OPEC+ allies will not further slash output anytime soon.

LONG- Saudi and OPEC+ may now be in the early days of a five-year battle to keep prices high as a glut of new production from the United States (in particular) as well as Guyana and Brazil, according to Rapidan Energy Group, which has a reasonably good track record with its past calls.

The crux of its argument:Global demand for oil “won’t peak for at least another decade,” but supplies outside OPEC are “growing much faster than previously estimated.”

MBC prices its IPO at the top of the range, valuing the broadcaster at SAR 8.1 bn

Regional broadcaster MBC priced its IPO at the top of the range on which its bankers had guided, saying it will sell shares at SAR 25 a piece. That’s good for an SAR 831 mn IPO and values the company as a whole at SAR 8.1 bn, MBC said in a statement (pdf) yesterday. The subscription period for institutional investors wrapped up on 6 December.

Strong demand: The offering to institutional investors, which was fully covered in the first hour of the book-building period, ended up being 66x oversubscribed, with the bankers receiving SAR 54.5 bn in orders for the SAR 831 mn IPO.

What’s next?Retail investors will be able to place orders from tomorrow until 18 December. The retail offering is capped at 10% the shares on offer.

The transaction in brief: Some 33.25 mn ordinary shares are up for grabs, good for a 10% stake. MBC is owned by the state’s Istedamah (with a 60% stake), while founder and chairman Waleed Al Ibrahim holds the balance. Istedamah will be selling shares equivalent to a 6% stake in the company and will remain the majority shareholder post-execution with 54% of all shares. Al Ibrahim is selling the equivalent of 4%.

Trading in early 2024? The company is expected to ring the bell for its first trading day in Tadawul in early 2024, according to a document seen by Bloomberg.

What they said: MBC CEO Sam Barnett said strong appetite for the offering underscores investor confidence in MBC’s “strong brand, expansive reach, diverse and high-quality content portfolio, as well as the significant potential for growth which is underpinned by Shahid,” its streaming platform.

This is just the beginning: Current shareholders are set to offer another 5% of the company in the next three years — and make at least 30% of its shares available to the public within 10 years, according to the prospectus (pdf).

Check out our previous coverage here for a rundown on use of proceeds and KPIs for MBC.

ADVISORS- HSBC are quarterbacking the transaction as lead manager, while JP Morgan and SNB Capital are on board along with HSBC as joint financial advisors as well as joint bookrunners and underwriters, according to the prospectus. GIB Capital is serving as financial advisor to substantial shareholders. Arab National Bank, Banque Saudi Fransi, Riyad Bank, and Saudi National Bank have been named as receiving banks, while AS&H and Clifford Chance are legal counsel. EY is acting as auditor, while PwC is financial due diligence advisor and market consultant. Brunswick is running media.

PURE HEALTH PRICES ADX IPO

In regional IPO news: Abu Dhabi’s PureHealth prices shares in c. USD 1 bn ADX listing:The ADQ-owned company has priced its IPO at AED 3.26, putting it on course to raise AED 3.62 bn (USD 986 mn) from its share sale on the ADX, it said yesterday. The company wrapped up book building on Monday attracting orders worth AED 265 bn (USD 72 bn), with the institutional offering closing 54x oversubscribed and the retail component 483x the shares on offer.

FYI- PureHealth is the UAE’s second-largest IPO this year after Adnoc Gas’ USD 50 bn sale in March.

ADVISORS-First Abu Dhabi Bank is lead manager and lead receiving bank. International Securities is lead placement agent. WIO Bank and Al Maryah Community Bank are also receiving banks. Hadef & Partners are IPO legal counsel, Ibrahim & Partners is legal advisor to the lead manager and Ernst & Young is doing audit duties.

Saudi Aramco enters Pakistan with the acquisition of a 40% stake in fuel retailer Go

Saudi Aramco made its first move into Pakistan’s retail fuel market by signing a binding agreement to acquire a 40% stake in the oil marketing company Gas & Oil Pakistan (Go), according to an Aramco statement yesterday. Information about the investment size of the potential transaction and the timeframe wasn’t made public.

Expanding its footprint in the Asian retail market: The transaction would strengthen Aramco’s foothold in the Asian energy retail market, especially after closing a downstream supply-chain transaction in July where the subsidiary Aramco Overseas Company acquired a 10% stake in China’s Rongsheng Petrochemical.

Aramco products to jam the shelves of Go outlets: If the transaction goes through, Aramco will sell refined product and Valvoline-branded automotive lubricants in Go’s outlets. Aramco acquired the lubricant unit of the American producer Valvoline back in February, in a transaction worth USD 2.7 bn.

Market reax: Aramco’s share price fell 0.3% to SAR 32.9 a piece at yesterday’s close.

What they said:“Our second planned retail acquisition this year aligns with Aramco’s downstream expansion strategy, with a clear path ahead for growing an integrated refining, marketing, lubricants, trading and chemicals portfolio worldwide. Go has a significant storage capacity, high-quality assets, and growth potential, which will help launch the Aramco brand in Pakistan,” said Mohammed Al Qahtani, Aramco’s downstream president.

Another retail acquisition in the pipeline: The oil giant signed a definitive agreement in September to fully take over Chile-based fuel and lubricants retailer Esmax — the company’s first retail investment in South America. Information about the investment size of the potential transaction and the timeframe wasn’t made public.

What’s Go? The oil marketing company operates a network of 1.1k filling stations outlets across Pakistan with a storage capacity of 200k metric tonnes, selling gasoline, diesel and automotive lubricants, according to the company’s website. It also runs EV charging stations, vending machines, forecourt advertising, currency exchange services, pharmacies, ATMs, and restaurants at its facilities.

Wafi Energy beat Aramco to Shell Pakistan? While Aramco was reportedly mulling a potential bid for Shell’s assets in Pakistan, the European oil major agreed last month to sell a 77% majority stake in Shell Pakistan to Saudi-based Wafi Energy.

Telecom operator STC mulls acquisition of Altice Portugal as part of overseas investments’ scale-up

STC said to eye stake in telecom group Altice Portugal: Saudi Telecom Co. (STC) — the kingdom’s largest telecom operator — is reportedly among a handful of suitors that are considering an acquisition of Altice Portugal, the largest telecom service provider in Portugal, Bloomberg reports, citing people it says have knowledge of the situation.

Background: Interest from STC, which is 64% owned by the Public Investment Fund, and others come as media empire owner and Israeli b’naire Patrick Drahi looks to sell shares as he looks to pay down debt.

What we know: A number of telecom operators and private equity firms are said to be eyeing Altice, which operates under the MEO brand, and could submit initial bids before Christmas. The sale could come in at EUR 7-9.5 bn, the sources said.

What’s on Drahi’s mind: Drahi told investors in September that he was leaning towards a sale to private equity investors rather than industrial or strategic partners.

All part of a big plan by STC: The kingdom’s leading carrier has been pushing into Europe of late. It grabbed a 9.9% stake in Spain’s Telefonica in September to become the telecom giant’s top shareholder. The move came a few months after its subsidiary Tawal, a leading integrated ICT infrastructure company in the MENA region, agreed to buy mobile tower infrastructure worth EUR 1.2 bn from United Group.

Deme-Archirodon consortium snags dredging contract for Neom Port

Deme + Archirodon consortium awarded dredging contract for Neom Port: A consortium that includes Dutch EPC contractor Archirodon and Belgian dredging and marine infrastructure firm Deme Group has been awarded a dredging contract for the second phase of transformation work at the port of Neom, in Oxagon, according to a press release. The project gets underway this month, the statement made no mention of the expected completion deadline or the value of the work.

The details: The consortium will dredge a basin enabling the world’s largest ships to call at the port of Neom, the release states. All the materials recovered as part of the dredging will go to support developments at Oxagon, the release adds.

About the companies: Belgium-based Deme specializes in dredging, land reclamation, marine infrastructure, offshore energy and environmental remediation, according to its website. Netherlands-based Archirodon is an EPC contractor that specializes in marine infrastructure. The company has wide operations in the region, according to its website.

Background: Formerly Duba Port, the Port of Neom was renamed in May and is currently undergoing SAR 7.5 bn in expansion and redesign works. Operations at the port's first container terminal are slated to kick off in 2025.

Crickets

It’s an exceptionally quiet morning for the Kingdom in the foreign press. A clash between the majority of countries at COP28 with the kingdom on the fossil fuels phaseout dilemma was the spotlight for The Financial Times. An anticipated match between Inter Milan and Al Nassr seeing old rivals Messi and Ronaldo face off continued to get attention by Reuters.

A smattering of stuff…

STARTUP WATCH-

Personal-care-industry platform Naeem has closed a pre-seed round led by Lunment and a group of angel investors. The company, founded in 2002 by Abdullah Al Mansour (CEO) and Saleh Al Butti (technical director, did not say how much money it has raised.

What does Naeem do? The company offers a full digital platform for salons, barber shops, spas, and other personal services providers to manage bookings, their finances, and operations.

RELOCATION-

N3XT Sports is coming to Riyadh:Barcelona-based sports consulting firm N3xt Sports will open an office in Riyadh next year under its expansion plans into the MENA region, it said in a statement. The expansion will be led by the company’s Chief Operating Officer, Hisham Shehabi, who will be based in Riyadh, it said.

And CBRE is expanding: The real estate consultancy, which has been in Saudi for 15 years, opened its second office in the Kingdom yesterday at Riyadh’s Al-Faisaliah Tower.

REMEMBER- Companies face a 1 January 2024 deadline to move their regional HQ’s to Saudi or run the risk of losing out on government contracts. At least 200 foreign companies have so far established HQs here, according to Investment Minister Khaled Al-Falih.

SAUDIZATION-

Ins. sales jobs will go only to Saudi citizens effective 15 April 2024, the Ins. Authority ruled yesterday. And there’s no back door: The authority also ordered that execs who are not in sales function will not be allowed to take commissions related to sales activity

AVIATION-

Riyadh Air is going live with Swiss Aviation Software’s AMOS: The kingdom’s newest carrier, Riyadh Air, said it is deploying aviation maintenance and engineering software from Switzerland’s Swiss Aviation Software (Swiss-AS).

Not the first: Budget airliner flynas went live with Swiss-AS’ AMOS product over the summer after a 14-month implementation period.

LEGISLATION-

An easier way to obtain commercial licenses is in the works: The Municipal, Rural and Housing Ministry is currently finalizing procedures related to commercial licenses, Al Madina reported yesterday. It said municipalities should issue licenses within 10 working days from the date of submission of applications through an online portal. Civil Defense and other relevant authorities should approve added activities to the commercial license when necessary, the amendments showed.

Huge investor demand for MBC, PureHealth IPOs

It’s a wonderful time of the year: The IPOs of Saudi broadcaster MBC and Emirati healthcare firm PureHealth have attracted a combined USD 86.5 bn in bids as investor demand for Gulf companies continues apace, Bloomberg writes, talking up the “IPO frenzy” in our corner of the world.

The takeaway: “That’s in stark contrast to the anemic listings picture in most other parts of the world. The Middle East has been a bright spot where IPOs have continued to find willing buyers who have mostly been rewarded with solid returns once the stocks have started trading.”

^^ We have more on both transactions in this morning’s IPO Watch, above.

Crypto bros eye Abu Dhabi amid US crackdown: Cryptocurrency firms, following in the footsteps of other investors, are setting up shop in Abu Dhabi as the industry seeks more relaxed regulations and deep-pocketed investors.

TASI	11,395.00	+0.1% (YTD: +8.8%)
MSCI Tadawul 30	1,464.31	+0.1% (YTD: +0.1%)
USD : SAR (SAMA)	3.75	3.75
Interest rates	6% repo	5.5% reverse repo
EGX30	24,071.66	-0.5% (YTD: +64.9%)
ADX	9,449.1	+0.4% (YTD: -7.5%)
DFM	3,937.28	+0.1% (YTD: +18%)
S&P 500	4,643.70	+0.5% (YTD: +21%)
FTSE 100	7,542.77	-0.03% (YTD: +1.2%)
Euro Stoxx 50	4,536.61	-0.08% (YTD: +19.6%)
Brent crude	USD 73.38	-3.5%
Natural gas (Nymex)	USD 2.31	-4.9%
Gold	USD 1,993.20	+0.03%
BTC	USD 41,252.56	+0.37% (YTD: +149.5%)

THE CLOSING BELL-

The TASI rose 0.1% yesterday on turnover of SAR 6.25 bn. The index is down 8.8% YTD.

In the green: Jazadco (+6.4%), Amiantit (+6.1%) and EIC (+4.7%).

In the red: Arabian Drilling (-3.4%), YSCC (-3.3%) and Seera

(-2.5%).

It’s a mixed picture in Asia this morning as investors await the outcome of the Federal Reserve meeting later today. Shares in Japan and Australia are in the green while Chinese markets are nursing losses. US stocks will rise at the opening bell while European markets are mixed, according to equity futures.

CORPORATE ACTIONS-

Sabic will pay out a dividend of SAR 1.6 per share to 3 mn eligible shareholders for the second half of the year, with distribution set for 4 March 2024.

National Gas and Industrialization Co.will pay a dividend of SAR 1 per share to its shareholders for the second half of FY 2023 with distribution set for 28 January 2024.

Sipchemwill pay out a dividend of SAR 0.75 per share to shareholders for the second half of 2023, with distribution set on 25 December 2023.

First Milling Co. paid a SAR 6.3 mn fine to settle a lawsuit filed by the General Food Security Authority (GFSA), which alleged First Mills had violated terms of an agreement to supply subsidized and unsubsidized flour.

KSA wants to bring in the Chinese for green transition

The China-Saudi Investment Conference kicked off in Beijing yesterday,with Investment Minister Khaled Al Falih stressing on the necessity of bolstering green transition partnerships with Chinese companies, South China Morning Post reported yesterday. Al Falih said the kingdom’s efforts to draw level on clean energy transition provides China with a greater potential to boost investment and involvement in the region’s renewables development.

What he said: “We invite Chinese companies to participate in the green transition supply chain … in addition to investments, whether it is [foreign direct investment] or in our capital, in the Kingdom of Saudi Arabia, there is significant project workload that requires participation from China’s project execution, project management companies,” he said.

Some USD 25 bn in agreements as the icing on cake: More than 60 MoUs and agreements valued at USD 25 bn were signed during the conference, Arab News reported yesterday.

Where? Energy, mining, logistics, technology and others. Among them:

An agreement worth up to USD 7.5 bn between Ajlan & Bros Holding Group and China’s Oriental Energy on manufacturing.
A USD 2 bn agreement between the Investment Ministry and China’s state-owned CRRC Group to develop projects focused on renewable energy and sustainable mobility.
Saudi Esports Federation and Chinese esports tournament operator VSPO inked an MoU worth USD 8.5 bn to promote cooperation and participation in eSports.

A partnership that is innovation-focused: China’s Commerce Vice Minister Li Fei told the conference that Beijing’s collaboration with Riyadh should continue to focus on innovation, “embrace the new wave of technological revolution and industrial transformation, strengthen partnerships in cutting-edge fields, such as artificial intelligence, life sciences, quantum information, and high-end manufacturing”.

AND- Tadawul + Shenzhen:Tadawul has signed an MoU with the Shenzhen stock exchange (SZSE) — one of China’s three independent exchanges — that could pave the way for dual listings along with cooperation in areas of fintech, ESG, investor relations and research, Argaam reports. A similar MoU was signed between Tadawul and the Shanghai stock exchange in September, while the first exchange-traded fund tracking Saudi equities made its debut in Hong Kong last month.

FINALLY- Deepening ties with Canada: Saudi Fund for Development CEO Sultan Al-Marshad met yesterday with Canada’s minister of international development, Ahmed Hussen.

CALENDAR

DECEMBER

9 December (Saturday): Ministerial roundtable of Futures Mineral Forum, Riyadh.

10-11 December (Sunday-Monday): Forum and Exhibition of Futures Mineral Forum, Riyadh.

12 December (Tuesday): Announcement of the final MBC share price.

13-16 December (Wednesday-Saturday): The 6th International Arabian Horse Show, Riyadh.

16 December (Saturday): end of Noor Riyadh show, segment “The Bright Side of the Desert Moon, Riyadh.

18-20 December (Monday-Wednesday): Smart Grid Conference, Riyadh.

19-20 December (Tuesday- Wednesday): Saudi Airport Exhibition, Riyadh.

19-21 December (Tuesday-Thursday): International Digital Signage Expo 2023, Riyadh.

29 December (Friday): Turkish Super Cup, Awal Park Stadium, Riyadh.

2024

JANUARY

9-11 January (Tuesday-Thursday): Future Minerals Forum, Riyadh.

14-17 January (Sunday-Wednesday): The International Exhibition for construction and building materials (Saudi Projects), Jeddah.

28-31 January (Sunday-Wednesday): Saudi Franchise Expo 2024, Jeddah.

FEBRUARY

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

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

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

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

MARCH

2 March (Friday): end of Noor Riyadh show, segment “Refracted Identities, Shared Futures”, Riyadh.

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.

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

Signposted to happen sometime in March:

Ramadan

APRIL

Signposted to happen sometime in April:

Eid Al-Fitr (national holiday)

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

5 June (Wednesday): World Environment Day.

Signposted to happen sometime in June:

Eid Al-Adha (national holiday)

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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