Cenomi Centers has six new developments in the pipeline — and new-to-Saudi global luxury brands in the wings

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Will Opec start easing production cuts in the second half?

Good morning, wonderful people. We have a busy week ahead, and that’s just a prelude to what we expect will be a positively frenetic news week starting seven days from now when the World Economic Forum’s special meeting in Riyadh kicks off.

The WEF meeting runs 28-29 April and will see a who’s who of the global and regional business communities descend on the capital city to prospect for business. The three big themes: energy, “global collaboration,” and inclusive growth.

Thinking of coming for a visit? Book your hotel room now — if you can find one.

MEANWHILE- Innovation Week 2024 kicks off today at the King Abdulaziz City for Science and Technology (KACST) in Riyadh. The event is organized by the Research and Development Innovation Authority and aims to provide a platform for researchers, entrepreneurs, and investors, among other stakeholders, to exchange ideas.

WEATHER- Riyadh folks, we’re still not out of the woods with our favorite weather app recommending rain boots and umbrellas this morning. Thunderstorms are in the cards for the capital with a high of 36°C and a low of 24°C. It’s more of the same in Al-Taif.

OIL WATCH-

Will Opec start easing production cuts in the second half? The International Monetary Fund (IMF) thinks Opec might start to lift voluntary production cuts as early as July, Bloomberg reports. “We are assuming the full reversal of cuts is happening at the beginning of 2025,” the business information service reports quoting the lender’s mission chief to the Kingdom, Amine Mati, as saying.

The details: The IMF expects the government to boost crude production to 10 mn barrels per day in early 2025, up from the current three-year low of 9 mn barrels. Earlier this month, Opec+ ministers left voluntary production cuts unchanged in an online meeting, while welcoming Iraq and Kazakhstan’s pledge to get in line. The meeting came weeks after the oil cartel extended voluntary curbs that will remain in effect through June 2024.

In context: Mati’s view meshes with the IMF’s recent forecast, which sees the domestic economy growing at 6.0% next year, up from the 5.5% projected in January, and the World Bank’s forecast of 5.9% in 2025, up from a previous projection of 4.2%.

WHY THIS MATTERS- For Saudi to avoid running a budget deficit, officials need to see an average selling price of USD 96.20 a barrel — and to produce about 9.3 mn barrels a day, Bloomberg reports in a separate story, citing an IMF report. This is 21% up from the lender’s October forecast, and 10% higher than the current price of the benchmark Brent futures which closed at USD 87.3% on Friday. This is the highest price level in nearly six months.

Interested in the non-oil story of the domestic economy? Head to the top of this morning’s news well, where we have the rundown of everything Saudi-relevant from the IMF and World Bank spring meetings in Washington, DC, which wrapped up this weekend.

THE BIG STORY ABROAD-

War and politics dominate the front pages of the global business press as the media takes stock of Israel’s limited strike on Iran this Friday — the third time that the two sides exchanged fire in less than a week. Iran downplayed the strike, appearing eager to close this chapter of its long-running covert battle with Israel.

Last week may have marked a turning point: The open exchange of attacks brought a decades-long shadow war between Iran and Israel into the open, the Financial Times and Bloomberg warn, and the worry is that “limiting escalation will get harder over time.”

MEANWHILE- The United States is seeking an alliance with the UAE on artificialintelligence. Last week’s USD 1.5 bn investment in G42, the Abu Dhabi-based AI leader, could be the first of a number of big agreements as American officials look to advance talks with Google and OpenAI, too.

AND- The US House of Representative has passed a USD 95 bn aid bill for Ukraine and Israel and will send the measure on to the Democrat-dominated Senate, meaning it’s likely to become law. US Secretary of State Antony Blinken is warning China over weapons exports to Russia. And Hamas is mulling whether to move its political headquarters out of Qatar to Oman or a second Arab state.

WATCH THIS SPACE-

#1- Single-stock options (SSOs) on mining giant Maaden’s stock will begin trading today, according to a statement by Tadawul on Thursday. The contracts will be cleared by the Securities Clearing Center Company (Muqassa). Tadawul launched SSOs in November as its third derivatives product.

What’s this SSO of which you speak? The instrument allows investors to hedge their equity portfolios — and traders to speculate on whether the underlying asset.

#2- Acwa Power, Irena partner on global renewable energy transition: Renewable energy giant Acwa Power inked an agreement with International Renewable Energy Agency (Irena) to “drive the worldwide transition to renewable energy sources,” according to a Acwa Power said in a statement on Thursday. The two will look into how to “mobilize finance and investment in renewable energy projects and support infrastructure, facilitating the development, storage, distribution, transmission, and consumption of renewables.” They will also exchange data on necessary infrastructure investment for renewable energy, green hydrogen, solar and others.

#3- The government’s National Competitiveness Center (NCC) and the World Bank are set to establish a knowledge center in Saudi to “disseminate the culture of economic reforms globally,” state news agency SPA reported on Friday. No further details were provided on the center, but Commerce Minister and NCC Chairman Majid Al Qasabi said it will “pave the way for further regional and international cooperation in competitive fields”.

What the NCC? Founded in 2019, the NCC is an independent government center that aims to enhance and develop Saudi’s competitive environment. It also outlines legislative and procedural reforms aimed at boosting the economy’s competitiveness globally.

PSAs-

Need some guidance on your small business? You can now visit Monshaat’s new HQ at King Khaled Road in Riyadh, it said in a post on X. The Commerce Ministry-affiliated authority regulates, supports and develops the Kingdom’s SMEs sector.

SPORTS-

#1- Saudi could turn the World Snooker Championship into a “super event,” The Guardian reported, citing statements by seven-time champion Ronnie O'Sullivan. “I think Saudi Arabia could get hold of this tournament, grab it by the scruff of the neck and turn it into a Wimbledon or a French Open or US Open, and really make it a super event,” O’Sullivan said of the Kingdom’s growing investments in snooker. His statements come amid debate on the future of the sport's most prestigious event when hosting rights by Sheffield’s Crucible — the venue which has hosted the event for 47 years — expire in 2027.

BACKGROUND- O'Sullivan, who won the inaugural Riyadh Season World Masters of Snooker last month, was named last week Saudi ambassador for the sport for the next three years. The World Masters of Snooker is set to come back to Riyadh next year with USD 1 mn purse on offer as Riyadh Season becomes an official partner of the World Snooker Championship.

#2- Overconfidence wasn’t why Al Ain snapped Al Hilal’s winning streak inthe first leg of the Asian Champions League semi-final, Reuters reported, citing statements by Al Hilal coach Jorge Jesus. “There is no such thing called over confidence,” he said. “In football, you can't control what happens in the match. We are not used to conceding four goals and we should sit and analyze why this happened and correct it.” The two teams will share the field again for the second leg on Tuesday.

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CIRCLE YOUR CALENDAR-

Riyadh will host the 2024 IsDB Group annual meeting from Saturday, 27 April until Wednesday, 30 April.

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

Automechanika Riyadh will open on Tuesday, 30 April till Thursday, 2 May at the Riyadh International Convention and Exhibition Center.The annual trade fair will showcase the automotive industry’s latest advances and innovations.

The King Salman bin Abdulaziz Royal Reserve Festival will kick off today at the Cultural Center in Al-Qurayyat governorate, state news agency SPA reports. The art and culture event runs until Thursday, 18 April.

Cenomi Centers has six new developments in the pipeline, will feature new-to-Saudi global luxury brands -CEO

Global luxury brands from LVMH and Kering will be among those rolling out at Cenomi Centers’ new flagship developments, CEO Alison Rehill-Erguven told EnterpriseAM Saudi in a wide-ranging conversation.

On the agenda for our talk: A deep dive into the planks of Cenomi’s five-year strategy, unveiled at the beginning of 2023, with a particular emphasis on portfolio growth. Prior to joining the nation’s largest lifestyle centers operator in August 2022, Rehill-Erguven (LinkedIn) held leadership roles at top real estate companies in Turkey, Europe, China, and the US, including Esas Gayrimenkul, Pradera, Brookfield Properties, and General Growth Properties.

Cenomi has six new developments in the pipeline and is set to launch two new flagships — Jawharat Riyadh, and Jawharat Jeddah — in 2H 2025, adding around 300k sqm of GLA to its portfolio, Rehill-Erguven told Enterprise, adding that the two properties are at a 30-35% completion rate right now. Jawharat Alkhobar will open in 2027, and Cenomi has three new lifestyle destination centers similar to U Walk Jeddah in the works; U Walk Jeddah had its grand opening last February.

“These assets will have improved design features and circulation with a best-in-class retail offering,” she said, adding that “The flagships specifically will have luxury precincts, immersive and digital experiences, a refined delivery on food and beverage, international-level multi-age entertainment experiences.”

The benchmarks: Think Mall of Emirates, Westfield London, and Dubai Mall, Rehill-Erguven says.

By the numbers: Cenomi plans to deploy some of its SAR +5 bn in planned capex to these six new projects, with more than 50% of that figure earmarked for the flagships, she tells us.

Bringing prominent global retails to the Saudi market: The Riyadh and Jeddah flagships “will feature first-to-KSA retailers,” Rehill-Erguven says. “We're having live conversations with a number of retailers that are interested in setting up their first store in KSA … the likes of the Paris-based family-run LVMH Group, the Kering Group, and the Swiss Richemont Group.” This in addition to a long list of ongoing partnerships with the UAE-based fashion and retail giant Apparel Group, luxury retailer and distributor Chalhoub Group, Landmark Group, and the Kuwait-based family-owned Alshaya Group.

“It’s about togetherness, inclusion and family,” Rehill-Erguven said, explaining that Cenomi is putting F&B and entertainment at the core of its growth strategy. Cenomi is on a drive to better cater to the shifting needs of local consumers, drawing from their spending patterns.

Consumer spending is shifting towards F&B, entertainment, and services. “We looked at Mada spending, Visa spending, and we tried to understand where they are spending their money after covid-19, and it became very clear that it's being spent in the areas of food and beverage, entertainment and services,” she explained.

F&B, services, lifestyle, and entertainment currently account for 38% of Cenomi’s tenant mix, while retail accounts for 62%, said Rehill-Erguven, explaining that a few years ago it was 70% retail.“Our research data suggests that this is what the Saudi consumer is looking for,” she added. The company is optimizing its mix of retail versus F&B and entertainment offerings to address that demand.

SOUND SMART- “This evolution of tenant-mix is clearly resonating with the Saudi consumer,” she said, saying Cenomi Centers had a record footfall in 2023, with 124 mn people visiting its malls — far exceeding pre-covid levels. Cenomi currently boasts a “market share of 18% and its portfolio reaches 80% of the Saudi population.”

Less business with related parties: “As Cenomi Retail has been beginning to look at restructuring themselves, their profile with us Cenomi Centers has begun to shrink. So, if they were 25% of the GLA at that time and maybe 20% of revenues, it's now comfortably close to 20% of the GLA or less, and around 15% of the revenues. Now, there is a balance with us, but there are ongoing discussions. I am sure we will find a resolution,” said Rehill-Erguven.

Strong fundamentals resulting in better financing conditions. The company’s SAR 5.25 bn financing facilities signed in February 2024 were funded by a syndicate of banks, carrying lower interest rates than historical figures, with less collateral to securitize, and a more effective amortization as it was spread across two tranches, she added. The proceeds from that will bolster the balance sheet, liquidity, and will be used, as needed, to finance the capex plan.

The facility was sustainability-linked, with three KPIs tied to the loan including the lowering of the company’s carbon footprint, connecting some assets that aren't connected to the grid, as well as diversity and the inclusion of more women in leadership positions. “So if we can achieve and hit on these three, it lowers the rate even further.”

A laser-sharp focus on people: Cenomi’s strong conviction that people are one of the main drivers of growth has inspired its leadership to hire new C-suite industry leaders with at least two decades of experience in the realm of shopping centers to better align the company with best practices, Rehill-Erguven highlighted.

Internal restructuring for operational efficiency: The company has revamped its organizational structure where currently its leasing division is now divided into a local-accounts department and a global-accounts department that are driven by regional leaders, said Rehill-Erguven. This is bolstering Cenomi’s efficiency, adding more clarity and transparency. They have also formalized how they naturally run national assets where now there’s one COO for each of the regions they operate in the Kingdom, with each COO running each region like its own vertical company. This is resulting in better communication, collaboration, transparency, and consistency across the board, she added.

“We're lucky to be in Saudi right now,” said Rehill-Erguven, explaining that the company’s research shows that there is still massive room for growth in the kingdom, making it unlikely to make plans for regional expansion at the moment.

WHAT’S NEXT- Expect Cenomi to reveal what assets will be part of the remaining SAR 800 mn of its SAR 2 bn non-core asset sale plan in 3Q 2024, with completion slated for 12-18 months from now, Rehill-Erguven told us.

Saudi economy set for more growth on non-oil sector boom, says IMF chief

Saudi’s economy remains robust on the back of the government’s diversification plans, IMF Managing Director Kristalina Georgieva told CNBC Arabia (watch, runtime: 0:48), days after the Washington-based lender trimmed Saudi’s growth outlook forecast. The source of GDP growth in the past years was mainly driven by growth in the non-oil sector, Georgieva said. She called on the government to find a balance between the utilization of reserves and tapping the debt markets.

The non-oil economy will continue to drive growth: “The engine of growth for Saudi and the GCC this year and next year will be the non-oil sector,” IMF Middle East and Central Asia Director Jihad Azour told Al Arabiya TV (watch, runtime: 1:44).

BACKGROUND- For the first time, non-oil activity accounted for 50% of the Kingdom’s real GDP in 2023, fueled by a sharp increase in investments, consumption and export volumes, government data showed last month. The non-oil economy came in at SAR 1.7 tn last year.

Voluntary oil cuts to blame for slight outlook downgrade by the IMF: Azour said the IMF recent (modest) cut to Saudi’s 2024 growth forecast came on the back of extended voluntary oil curbs by Opec+. His remarks came days after the IMF slightly trimmed its Saudi’s growth forecast to 2.6% this year, down from the 2.7% it had penciled-in back in January. The IMF raised its Saudi GDP growth forecast for 2025 to 6.0%, up from the 5.5% projected earlier this year.

STILL- Ongoing structural reforms coupled with a wave of investments will have a positive impact on growth, Azour said. “A rise in oil output level and exports will boost GDP growth and improve the balance of payments,” he said.

ALSO FROM SPRING MEETINGS-

#1- The IMF's steering committee, chaired by Finance Minister Mohammed Al Jadaan, fell short of agreeing on a joint communique on the economic risks posed by ongoing global conflicts, Reuters reported. The committee discussed the impact of the war in Ukraine, Gaza and shipping disruptions in the Red Sea on the global economy, according to a statement by Al Jadaan. “While recognizing the IMFC is not the forum to resolve geopolitical and security issues and these issues will be discussed in other fora, IMFC members acknowledged that these situations have significant impacts on the global economy. Today’s era must not be of war and conflict” he said.

What went down: Nordic countries unanimously voted against the adoption of a joint communique because it failed to explicitly mention Russia, Finnish Finance Minister Riikka Purra told reporters. “It was not possible for us to approve a joint communique which did not explicitly and directly mention Russia, which wages a war in Ukraine that has all kinds of economic consequences across the world,” she said.

#2- The IMF is concerned about debt burdens by low-income countries, Reuters reported, citing statements by Georgieva. She said some of the vulnerable countries were now seeing debt service payments of 12% in comparison to 5% a decade earlier. “What is heartbreaking is that in some countries debt payments are up to 20% of revenues,” she said. She said that a push by the IMF and the World Bank this week for timelines for debt restructuring would help streamline the process.

Saudi tourism sees strong 1Q despite rising tensions in the region, says minister

Saudi’s tourism sector has seen a strong 1Q 2024 despite rising geopolitical tensions, Tourism Minister Ahmed Al Khateeb told Bloomberg TV in an interview ({watch: runtime: 12:31 }). “We have seen a double digit growth in the first quarter of the year compared with the first quarter last year,” he said on the booming sector despite heightened escalations in the region. “The escalations in the region are not good for everyone, therefore Saudi…is stepping in this situation and trying to contain the situation with its neighbors,” he said.

Crossing fingers for a short-lived conflict: “The tension in the region is very serious, we hope it is for the short term,” Al Khateeb said. “We are monitoring the situation closely, to make sure that 2Q and the short term will not be impacted. However, in the medium and long term, we are very optimistic,” he said.

Robust growth in 2023: “Last year was a very strong year for the Kingdom. We were the highest growing country among all G20 countries with 56% y-o-y growth [in tourist arrivals],” he said. Half of arrivals were religious trips, while the remainder came here to engage in business, sports, leisure and hospitality, the minister said.

REMEMBER- The ministry recently doubled its target for 2030, hoping now to be host to 150 mn tourist trips after it hit its target last year ahead of schedule. The new 2030 target sees 80 mn by domestic travelers and 70 mn by international travelers.

Tourism is seeing the government spending big: The government is injecting some USD 800 bn into the sector under plans to build new future destinations, including Neom, The Red Sea, Diriyah and Qiddiyah among others, he said. The private sector, supported by the Tourism Development Fund, is pouring investments to build new hotels, he added.

Incentives for foreign investors in the sector: “We are trying to make Saudi Arabia the easiest and most cost-efficient [in which] to do business,” Al Khateeb said. He said the government is providing incentives such as access to land, debt, funding, and easing regulations to lure in investors who are “seeking a good return, with a low-risk commitment from the government”.

REMEMBER- The ministry unveiled a new tourism investment program last month to facilitate doing business and attracting local and foreign investors. The Tourism Investment Enablers Program (TIEP) includes regulatory reforms for tourism licensing depending on type and scale of operations and reduced fees. It aims to lure in investments of up to SAR 42 bn (c. USD 11 bn) with inflows of SAR 16 bn to GDP by 2030.

An alcohol ban is not driving tourists away: “Alcohol is important but we decided not to offer it, and so far people are coming, they are exploring Saudi and coming for business, coming for leisure, coming for religious reasons,” he said when asked about whether serving alcohol would be a game changer for the Kingdom’s tourism. “They have not complained, they are enjoying other offerings like the food, retail, hospitality, the culture, and I hope this will continue,” he said. “Out of the 1.4-1.5 bn travelers [visiting the Gulf], I’m very sure we will find, at least in the mid-term, 70 mn people who will travel without asking for alcohol,” he said.

BACKGROUND- Saudi opened in January its first alcohol shop in over 70 years exclusively for non-Muslim diplomats, signaling relaxed restrictions to make the Kingdom a more tourist-friendly destination. The government said the move came under efforts to counter the illegal trade of alcohol. Pundits expect officials to allow a slow rollout to select hotels.

Adnic completes acquisition of majority stake in Allianz SF

Abu Dhabi National Ins. Company (Adnic) completed its acquisition of a 51% stake in Riyadh-based Allianz Saudi Fransi Cooperative Ins. (Allianz SF), making it a majority shareholder in the Tadawul-listed insurer, according to an ADX disclosure (pdf).

The transaction was worth SAR 499 mn and valued Allianz SF at SAR 16.31 per share.

Background: Adnic and Allianz Group — Allianz SF’s parent company — had reached a binding agreement for the transaction back in September 2023. The acquisition is part of Adnic’s strategic plan to “extend its presence into the Saudi Arabian market … and boost its consumer retail portfolio,” it said in the disclosure.

Some things will stay the same: The announcement saw Allianz SF assuring shareholders that it will remain Tadawul-listed, according to a disclosure to Tadawul. Its dividend policy will also remain unchanged, it said.

About Allianz SF: Allianz SF was established in 2007 as a joint venture between Munich-based multinational financial services company Allianz Group and Banque Saudi Fransi, according to the company’s website. The ins. provider saw its bottom line increase 4x y-o-y to SAR 37 mn in 2023, while revenues grew to SAR 862.6 mn.

Qomel sets offering price at SAR 80 a piece for its IPO

Qualified investors eyeing the IPO of healthcare outfit Qomel will be able to place their orders today, its financial advisor Watheeq Capital said in a disclosure to Tadawul on Thursday. The private healthcare provider is set to offer 500k shares on Tadawul’s parallel market Nomu, representing a 14.3% stake.

In detail: Bankers will start taking orders at a set price of SAR 80 apiece, according to Watheeq Capital. The subscription period runs until Thursday, 25 April. A final allocation is set for Thursday, 2 May.

The companywill use proceeds from the offering to invest in growth, including a SAR 100 mn pharma manufacturing facility being built by fully owned subsidiary Qomel Factory Co. in Sudair Industrial City.

Lock-up period: All four substantial shareholders will have to abide by a 12-month lock-up period starting from the first day of trading.

About Qomel: Established in 2007, Qomel is a Riyadh-based healthcare company specialized in pharma and medical devices. It has branches in Jeddah and Dammam and distribution agreements with global pharma players, including UK’s Clinigen, Waymade, France’s Ohre Pharma, Italy’s Adienne and others.

ADVISORS- Derayah Financial is quarterbacking the transaction as lead manager, while Watheeq Capital is acting as financial advisor.

IN OTHER CAPITAL MARKETS NEWS- The board of Nomu-listed Edarat Communication and IT has approved its transition to the main market, it said in disclosure to Tadawul on Thursday. No further details were provided, but the cloud service provider said the transition is subject to an approval from Tadawul.

Total AUM by local investment funds fell in 2023, while the number of funds grew

Total assets under management (AUM) by 291 Local investment funds dipped 2.8% y-o-y to SAR 122.6 bn in 2023, according to the latest SAMA data (pdf). Domestic assets accounted for 82.5% of that figure. The number of operating funds rose to 291 in 2023, up from 255 in the previous year.

Domestic shares accounted for 23% of the total AUM, followed by real estate investments (20%), and domestic money market instruments (19%).

The number of open-ended funds in the Kingdom rose 16% y-o-y to 267 in 2023, with SAR 93.3 bn in AUM. Meanwhile, the number of close-ended funds fell 4% y-o-y to 24 over the same period, with SAR 29.3 bn in AUM.

Open-ended vs. close ended funds: Investors can buy or sell shares of open-ended funds directly from the fund manager at the fund’s net asset value, making them the more liquid type of funds. Meanwhile, in close-ended funds, investors trade shares of the fund on the secondary market at either a premium or a discount to the fund’s net asset value.

PIF-backed Manara Minerals eyes stake in Zambia copper mines, USD 1 bn investment in Pakistan

PIF-backed Manara Minerals Investment is eying a stake in Zambia's FirstQuantum Minerals copper mines Sentinel and Kansanshi, Bloomberg reported on Thursday, citing sources it said are familiar with the matter.

Global interest: The UK’s Rio Tinto and Japan’s trading houses Mitsui and Sumitomo are also considering acquiring a stake in the mines. Chinese state-owned Jiangxi Copper, First Quantum’s second-biggest shareholder, also held talks with the company earlier this year to offload a stake in the mines, Reuters reported at the time. The interest in the mines is driven by the anticipated surge in demand for copper, which is essential for EVs and renewable energy infrastructure, Bloomberg adds.

About the mines: First Quantum owns 100% of the Sentinel mine and 80% of the Kansanshi mine, and Zambia’s government owns the rest of the latter, according to Reuters. The mines could be valued at USD 6 bn.

A USD 1 BN INVESTMENT IN PAKISTAN?

Manara is also said to be close to a USD 1 bn investment in Barrick Gold’s Reko Diq copper and gold mining project in Pakistan, Bloomberg reported on Thursday. A preliminary agreement could be made public in a matter of weeks. The news comes after recent discussions between Crown Prince and Prime Minister Mohammed bin Salman and Pakistani Prime Minister Shehbaz Sharif and a visit to Pakistan by Foreign Minister Prince Faisal bin Farhan.

But it may be a while yet… Saudi was reportedly looking to snap up stakes in the mines last November. Barrick said back in July it was open to selling shares to a Saudi company and started talks earlier this month. Emirati consulting firm RB&A is advising Pakistan on the sale and will value the state’s stake by the end of December, suggesting a transaction may be unlikely before then.

About the project: The copper-gold mine is 50% owned by Canadian mining firm Barrick Gold, which in August said it could invest as much as USD 10 bn to tap into the project’s full potential. Pakistan’s government and the state of Balochistan own the remainder of the mine’s shares. The Reko Diq project, located in the Balochistan region, is expected to start production in 2028, Bloomberg reported.

Mobile gaming, AlUla, and … and ancient lava tube all get ink in the global press this morning

It’s another mixed bag for Saudi in the foreign press today with mobile games, AlUla, oil prices and an ancient lava tube making the rounds. First up, Savvy Games Group — a wholly-owned subsidiary of the Public Investment Fund (PIF) — is eyeing more investments in mobile game development after its online board game Monopoly Go (App Store, Play Store) gained major traction, grossing some USD 2 bn in sales, Bloomberg reported.

Bloomberg is back with another traveler’s exposé on AlUla, which went as far as to call the Kingdom’s top desert destination a “a high-risk USD 1 tn [wager] on tourism,” saying that the current rate of progress at AlUla raises doubts about its ambitious projections.

Meanwhile, Fox News says the Kingdom and the Kremlin are deliberately hiking oil prices to boost presidential candidate Donald Trump’s political fortunes ahead of the US elections, the right-leaning outlet said, citing an MSNBC panel that entertained the theory.

On the other end of the spectrum, NYT is out with a piece on a lava tube that's been in Saudi Arabia for over 7k years. Umm Jirsan is the first to be excavated in the Kingdom, and was likely used as a place of refuge for early humans.

A new shipping service at Jubail Commercial Port. Plus: Agriculture, earnings, real estate

SHIPPING+MARITIME-

Mawani adds new shipping service to Jubail: Saudi Ports Authority (Mawani) has added a new weekly service, operated by Hong Kong-based Orient Overseas Container Line (OOCL), to Jubail Commercial Port, connecting it to the UAE’s Abu Dhabi and Jebel Ali ports, and Kuwait’s Shuwaikh port, according to a Thursday statement. The new service offers a capacity of up to 3.5k TEUs and represents the eighth addition to Mawani’s ports so far this year, the statement also said.

EARNINGS-

Jarir Marketing (Jarir Bookstore) net income fell 11.5% y-o-y to SAR 219.3 mn in Q1 2024on the back of lower margins on smartphones, the leading bookstore chain said in a disclosure to Tadawul. Revenues were down 2.5% y-o-y to SAR 2.6 bn due to lower sales from its computer and office supplies segments.

AGRICULTURE-

Tadco to establish hydroponic greenhouses for Neom food company: Saudi Arabia’s Tabuk Agricultural Development Company (Tadco) has inked an MoU to plan, develop construct, and operate hydroponic greenhouses for Topian, Neom’s food company, according to a statement on Thursday. The greenhouses will be located on 100 hectares of land on Tadco’s site in Saudi Arabia’s Tabuk region, and it will be used for the production of fruits and vegetables.

About Topian: Neom launched Topian in collaboration with the Ministry of Environment, Water, and Agriculture in December 2023. Topian focuses on climate-resistant agriculture, regenerative aquaculture, and sustainable food supply

INS-

Saudi EXIM signed a reins. agreement with the Swiss Export Credit Agency (Serv) to boost ins. coverage for Saudi non-oil exports, it said in a post on X on Thursday. The agreement comes days after Saudi EXIM inked a number of reins. agreements with global reins. firms led by the world's second biggest reins. company Swiss Re. The reins. treaties come under efforts by Saudi EXIM to open new markets to Saudi exporters, its CEO Saad Al Khalab told Aleqtisadiah.

REAL ESTATE-

Thimar Development ventures into real estate: Agriculture firm Thimar Development has set up a new arm for real estate investments, it said in a disclosure to Tadawul. Thimar Development will own 100% of Thimar Towers Development and Real Estate Co, which will be based in Riyadh.

Netflix reports solid 1Q 2024 earnings, but shares fall on concerns about growth

It looked like Netflix had a lot to celebrate: Netflix added 9.3 mn subscribers in 1Q 2024 and its net income was up 78% y-o-y, surpassing analyst expectations to reach USD 2.3 bn on the back of its controversial crackdown on password sharing and the introduction of ad-supported plans, the platform reported in its letter to shareholders (pdf) following its quarterly earnings release.

But shareholders have concerns about growth after Netflix said it wills top reporting subscriber numbers as of 2025 unless there’s a significant milestone. That type of move is common as businesses mature — witness Apple’s decision a few years back to stop breaking down the number of devices it sells in each of its product categories.

Despite the impressive quarterly results, Netflix’s share price took a beating: Netflix’s shares fell 9.1% to USD 555.04 a share on the Nasdaq on Friday, following the news a day earlier.

ALSO WORTH NOTING-

ADIB to acquire 15% stake of Indonesian bank? Abu Dhabi Islamic Bank (ADIB) is in talks to purchase a 15% stake in Bank Syariah Indonesia — Indonesia's biggest Islamic bank — for USD 1.1 bn. (Reuters)
BTC’s “halving” risks putting pressure on miners: BTC’s once-every-four-years “ halving ” measure has come into effect, cutting in half the rewards for miners who often rely on expensive hardware and a lot of energy to verify and validate transactions. (Bloomberg)

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FTSE 100	7,896	+0.2% (YTD: +2.1%)
Euro Stoxx 50	4,918	-0.4% (YTD: +8.8%)
Brent crude	USD 87.29	+0.2%
Natural gas (Nymex)	USD 1.75	-0.3%
Gold	USD 2,414	+0.7%
BTC	USD 64,669	+1.5% (YTD: +132.5%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.3% on Thursday on turnover of SAR 8.2 bn. The index is up 4.5% YTD.

In the green: Amiantit (+7.8%), Allianz SF (+6.8%) and United Cooperative Assurance (+5.7%).

In the red: AlKhaleej Trng (-5.3%), National Medical Care (-4.2%) and Saudi Ceramics (-3.9%).

THE CLOSING BELL: NOMU-

The NomuC rose 1.2% yesterday on turnover of SAR 55.9 mn. The index is up 8.9% YTD.

In the green: Academy of Learning (+19.1%), Taqat (+11.3%) and Clean Life (+6.4%).

In the red: Saudi Top (-5.6%), MOBI Industry (-4.9%) and Almodawat (-4.8%)

CORPORATE ACTIONS-

Alkhabeer Capital will distribute SAR 13.3 mn in dividend to all unitholders of its Alkhabeer Growth and Income Traded Fund at a par value of SAR 0.2 for the second half of 2023, it said in a disclosure to Tadawul. Shares will be distributed within 10 business days after the distribution entitlement date, it added.

Shareholders of Nomu-listed cloud service provider Edarat have approved a 100% capital hike to SAR 25.2 mn through a bonus issuance, it said in a disclosure to Tadawul. The capital increase comes under plans to support future business plans and achieve robust growth.

Saudi expresses regret UNSC failure to grant full membership to Palestine

The Foreign Ministry has expressed regret over the UN Security Council's failure to adopt a draft resolution granting full membership to Palestine, it said in a statement on X on Friday. It said that impeding the acceptance of a full membership for Palestine in the UNSC “contributes to the [ongoing] intransigence of the Israeli occupation and their continued violations of international law without deterrence”. The statement came after the US vetoed a draft resolution allowing Palestine to be a full-fledged member of the UN under grounds that a Palestinian statehood will only come through direct peace talks between Palestine and Israel.

CALENDAR

APRIL

21-27 April (Sunday-Saturday): Innovation Week 2024 at KACST, Riyadh.

27-30 April (Saturday-Wednesday): IsDB Group Annual Meetings, Riyadh.

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

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

30 April-2 May: Automechanika Riyadh 2024 at Riyadh International Convention and Exhibition Center.

MAY

2-5 May (Thursday-Sunday): Townhall Expo, Riyadh.

6-9 May (Monday-Thursday): Saudi Smart Manufacturing, Riyadh.

6-9 May (Monday-Thursday): Saudi Smart Logistics, Riyadh.

13-15 May (Monday-Wednesday): Smart Future Expo, Riyadh.

13 May (Monday): Saudi Giga Projects, Riyadh.

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

20-21 May (Monday-Tuesday): Future Projects Forum, Four Seasons Hotel, Riyadh.

20-22 May (Monday-Wednesday): Future Aviation Forum 2024, 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

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

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

5 June (Wednesday): World Environment Day.

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

AUGUST

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

SEPTEMBER

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

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

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

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

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.

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

2025

FEBRUARY

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

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