D360 raises capital to fuel lending growth

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WHAT WE’RE TRACKING TODAY

Masqa is moving ahead with Nomu listing

Good morning, friends. Saudi capital seems to be having a very good week: Kingdom Holding just watched its SpaceX stake jump from SAR 16.8 bn to SAR 25.6 bn in a single trading session, a paper gain of nearly SAR 9 bn on the back of Friday's Nasdaq debut. The shares are locked up for 180 days, but the direction of travel is hard to argue with.

Two other capital stories worth your attention this morning: D360 Bank is raising its capital by 38.9% to SAR 2.92 bn, and Growth Catalyst Investment Management has closed SAR 360 mn of a SAR 750 mn target, notable as one of the first private-sector fundraising closes since the Iran war began putting a chill on risk appetite.

MSGA goes ahead unfazed

A small name is pressing ahead while the big ones blink. Riyadh-based real estate developer Masqa Investment (MSGA) priced its Nomu float at SAR 6 a share yesterday, opening a 10% stake to qualified investors. The offer aims to raise SAR 66.7 mn and implies a market cap of SAR 667 mn for the company after listing.

REMEMBER- This lands days after reports of Saudi issuers shelving IPOs amid geopolitical jitters. Mutlaq Al Ghowairi Contracting parked its SAR 3 bn Tadawul listing, while Arabian Dyar is reportedly pulling its IPO, once pitched near an SAR 16 bn valuation. Both are said to be rattled by demand worries after the strikes on Kuwait and Bahrain.

What’s next? Subscription runs 17-24 June, with allocation on 28 June and trading shortly after. We’ll be closely watching the subscription ratio.

Riyadh Air touches down in Jeddah

Newly airborne Riyadh Air launched its first domestic route yesterday, linking Riyadh and Jeddah with two daily flights on Boeing 787-9 Dreamliners, with plans to expand to three by 18 June and four by 2 July, the PIF-owned airline said in a press release.

ICYMI- The domestic launch comes just five days after Riyadh Air’s first commercial international flight to London Heathrow — itself the real operational kickoff after the airline received its first two Dreamliners earlier this month.

Where the ticket prices sit: Riyadh Air is undercutting Saudia but pricing above budget carriers. Round-trip fares on the route run SAR 457-3k depending on cabin class, against Saudia’s SAR 497-3.6k for comparable cabins, and above Flynas and Flyadeal, both of which start at SAR 399.

Riyadh Air didn't pick the Riyadh-Jeddah corridor by accident — it’s the world’s fifth-busiest domestic route, with 9.8 mn seats in 2025, meaning there’s plenty of demand to get a foot in the door of a Saudia and Flynas-dominated market. We noted in our breakdown of Riyadh Air’s launch that 12 of its planned 15 debut routes are already operated out of Riyadh by rival carriers.

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Data point: AI adoption accelerates

33.1% — that's the share of Saudi establishments using AI technologies in 2025, up 20% y-o-y and the fastest-growing of the digital tools Gastat tracks, according to its 2025 ICT access and usage survey (pdf).

The headline masks heavy concentration: Adoption clears half only in information and communications (61.1%), finance and ins. (52.9%) and education (51%), while the bulk of the real economy still sits below the national average, with manufacturing at 30.7%, and wholesale and retail at 30.2%.

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The big story abroad

Mark your calendars for Friday: The US and Iran will ink an agreement to end the war and reopen the Strait of Hormuz on Friday — the agreement is “now complete,” according to US President Donald Trump.

While the details of the agreement remain unclear, Pakistani Prime Minister Shehbaz Sharif said it includes the “permanent termination of military operations on all fronts, including in Lebanon.” And contrary to Trump’s statement, the Iranian side said the agreement calls for the reopening of Hormuz within 30 days.

The UK, France, Germany, and Italy said they’re ready to lift sanctions on Iran in light of its efforts addressing its nuclear program. “Iran ‌must ⁠never acquire a nuclear weapon. We stand ready to work with ⁠the US, Iran and the IAEA to this ⁠end,” they said in a joint statement.

Markets reacted as expected: After Trump’s call for the ships of the world to start their engines and “let the oil flow,” Brent fell almost 4% to USD 83.86. One LNG tanker is on its way to the strait after being stuck in the Gulf for months now, we’ll be closely watching to see if it makes the trip safely.

Asian markets and US futures celebrated the news: Asia-Pacific equities jumped in early trading, with Japan’s Nikkei and South Korea’s Kospi hitting fresh highs on the back of the news and a semiconductor-led rally. Over in the US, stocks are set to open up, with futures in the green.

D360 greenlights 38.9% capital increase

Digital bank D360 is raising its capital by 38.9% to SAR 2.92 bn after its extraordinary general assembly greenlit the move, according to a Tadawul disclosure. Derayah Financial, a strategic investor in the bank, will put in SAR 100 mn, diluting its position to a 16.35% stake upon completion from 20.4%.

The issuance is part of a Series A funding round that kicked off last year, sources familiar with the matter tell EnterpriseAM. D360 will use the SAR 1.5 bn in proceeds to expand its lending book, target the Kingdom’s SME finance market, and scale its API banking infrastructure.

REMEMBER- D360’s been delivering on its growth ambitions: It inked an MoU with MoneyGram for cross-border payment and remittances services last year, and struck a partnership with TerraPay for real-time fund transfers.

How it’ll work: The raise will be executed through an SAR 1.5 bn share issuance, with new shares priced at SAR 20.5 each, giving the bank an SAR 4.5 bn (USD 1.2 bn) pre-money and SAR 6 bn (USD 1.6 bn) post-money valuation. “The USD 1.2 bn valuation is anchored in competitive bids from leading regional and international institutions,” the sources tell us.

Why it matters: Over half of Saudi firms find access to finance to be the biggest obstacle to doing business. This perceived bottleneck is driven by an institutional divide: while large, established corporate borrowers are heavily banked, SMEs are being left behind — 60% of small firms struggle to access financing, while only 14% hold an active bank loan, according to a World Bank survey.

What’s next? Expect the bank to tap local and global investors to diversify its shareholder base as it aims to serve 4 mn users ahead of a potential public listing in three years. D360 has attracted 3 mn customers and SAR 3 bn in deposits as of April this year, according to the sources.

Back in the game

Saudi fundraising is regaining momentum as investors double down on the long-term growth story. Growth Catalyst Investment Management’s Growth Catalyst Fund secured SAR 360 mn (USD 96 mn) to invest in firms across the Kingdom, within a target size of SAR 750 mn, according to a press release. The firm became one of the first private-sector investors to close a fundraising round since the start of the Iran war.

Who pitched in? The round attracted backing from government entities, investment institutions, endowments, family offices, and individuals, including Saudi Venture Capital (SVC).

Where will the money go? The fund eyes deployments in companies across business services, consumer goods, healthcare, and technology. “We look forward to deploying capital into promising [prospects] that support the growth of Saudi mid-sized companies,” Founder and CEO Turki Al Dayel told Semafor.

The Iran war may have strengthened Saudi’s case: The conflict “reinforced what experienced investors already recognize: that Saudi Arabia has become an anchor of stability and economic momentum in the region,” Al Dayel said.

What’s next? Growth Catalyst aims to more than double the fund’s size over the next six months before its final close, Al Dayel added.

ALSO- SVC poured funds into Khwarizmi Ventures’ Khwarizmi Venture Capital Fund 2, according to a LinkedIn announcement. The fund will target seed-to-Series A startups across the GCC, with at least 50% of capital allocated to Saudi Arabia. It will focus on high-growth tech and tech-enabled companies, especially in fintech, e-commerce, and AI applications across industries.

REMEMBER- SVC plans to grow its investment portfolio to USD 3 bn by 2030. The focus of such investments is now shifting toward health tech, education, and deeptech.

More residential capacity incoming with a helping hand from China

A Chinese helping hand: Saudi players inked SAR 1.9 bn worth of agreements and MoUs with their Chinese counterparts for residential projects across Riyadh and Dammam on the sidelines of Municipal Minister Majid Al Hogail’s visit to China, where he launched the Saudi-Chinese Contracting Forum.

The details: The agreements aim to boost implementation efficiency, accelerate completion, and improve the quality of residential projects. The agreements cover construction, the localization of building technologies, knowledge and expertise transfer, the development of human capacity, and engineering design, financing solutions, project studies and pricing.

The projects:

#1- CCAC was awarded a SAR 875 mn development within Al Ruba project in Riyadh — which will house over 2k units. The wider Al Ruba project, as we previously reported, will deliver over 9k residential units in a mix of villas, townhouses, and apartments and will have an investment ticket of SAR 7.8 bn.

#2- China State Construction Engineering Corporation was awarded Dammam’s Al Rasha — a SAR 1.06 bn project housing 2.4k units.

That’s not all: The Saudi National Housing Company inked an MoU with Chinese civil engineering company Sinoma aimed at attracting global players into the Kingdom's mega-scale residential pipeline. The Saudi side also inked MoUs with leading Chinese companies, including PowerChina, CRCC, and China Construction Bank.

This comes at a time when the Kingdom’s residential market is struggling to shake off an affordability squeeze compounded by the war. Residential sales in Saudi Arabia were down 53% y-o-y in the first quarter of the year and while the slowdown was already underway before missiles started flying in late February, the war hardened a “wait-and-see” stance among buyers.

Rocket money

Kingdom Holding’s SpaceX stake has jumped to SAR 25.6 bn (USD 6.8 bn) after shares debuted on the Nasdaq on Friday, up from an initial carrying value of SAR 16.76 bn (USD 4.47 bn), according to a Tadawul disclosure. The company holds over 42.4 mn shares in Elon Musk’s firm; they will stay locked up for up to 180 days.

ICYMI- SpaceX raised USD 75 bn in the largest IPO in history — surpassing Saudi Aramco — and ended its first trading day up 19% at USD 160.95, pushing its valuation past USD 2 tn. PIF and other GCC sovereigns also bought into the IPO.

The KHC trade: KHC’s stock closed at SAR 13.50 — down 6.38% on the day but up 68.75% YTD. The intraday drop continues a gradual pullback from a 3 June peak of SAR 15.94; the market had been running ahead of the SpaceX listing for weeks.

Bin Talal adds to his fortune: Prince Alwaleed bin Talal’s net worth has climbed to just over USD 27 bn — a decade high — according to Bloomberg’s B’nair Index. His direct stake in SpaceX amounts to around USD 6.1 bn, excluding the indirect slice held by KHC, Forbes reports.

Why it matters: For regional investors who couldn’t get direct SpaceX allocation, KHC just became the closest thing to it — a listed vehicle with a USD 6.8 bn anchor position in the world’s most valuable company.

Takween welcomes new acting CEO

Marwan Jreige (Linkedin) is taking over as acting CEO of Takween Advanced Industries from 1 July, following the resignation of Majed Nofal (LinkedIn), effective 30 June, according to a Tadawul disclosure. Jreige is returning to the role after previously serving as Tawkeen’s CEO and CFO, and most recently as GM of Saudi Plastic Packaging Systems.

Fakeeh’s acquisition of Al Fagih hospital moves forward

Fakeeh Care cleared the antitrust hurdle on its full acquisition of Al Fagih, receiving a non-objection from the General Authority for Competition for the allcash SAR 1.6 bn transaction, according to a Tadawul disclosure. The acquisition adds a 350-bed hospital in central-east Riyadh to Fakeeh Care’s portfolio, pushing total capacity to 535 beds across a two-site cluster — the kind of footprint that’s hard to build organically in Riyadh’s increasingly crowded private-hospital market.

REMEMBER- Fakeeh Care had signed a binding share purchase agreement to fully acquire Al Fagih, absorbing stakes from Dallah Healthcare (31.21%), founder Mohammed Rashid Al Fagih (18.2%), and minority shareholders (50.6%).

Part of a wider Saudi healthcare reshuffle: Dallah has been on its own M&A run for years with Kingdom Hospital, Makkah Medical Center, Al Salam, and most recently Al Ahsa — while National Medical Care has stitched together Jeddah’s Chronic Care Specialized Medical Hospital and Makkah’s Jiwar Medical Center. Sulaiman Al Habib and Mouwasat are scaling mostly organically with new builds in Riyadh, Dammam, and beyond.

What Halo cost in June

Adobe shares collapsed 9% to USD 198 on Friday, June 12 — down 37% YTD and 47% over the pasttwelve months — despite posting a record USD 6.62 bn in quarterly revenue. Multiple analyst downgrades followed the announcement that CFO Dan Durn would depart today, citing the leadership shuffle and a strategic shift toward ‘freemium’ offerings that Wall Street read as defensive.

What’s happening at Adobe isn’t an outlier. The market is repricing every asset where AI replacement is a credible thesis — and doing so even when revenue is at record levels, AI products are growing fast, and management is executing moves the analyst community spent two years asking for.

A month ago, we argued that the global equity market was splitting along AI-disruption lines, with the smart money rotating into heavy-asset, low-obsolescence (Halo) companies and away from the software, payments, and consumer platforms most vulnerable to AI replacement. Friday’s session was Halo arriving in real time. For GCC sovereign capital, the implications are immediate and quantifiable. The PIF 1Q 13F filing — which showed the fund had cut its US-listed book to four positions — looks increasingly like the smartest single capital allocation decision in the GCC complex this year.

Visa, Mastercard, and Amazon, the three names PIF exited ahead of Berkshire’s 1Q sale, were all priced as durable compounders six months ago. They are now priced as AI-disruption candidates. Mubadala, Adia, ADQ, and QIA still carry meaningful exposure across the software and payments cohort that Friday repriced. Every position in that cohort just took a real hit.

The Halo thesis argued that the rotation favored heavy assets — utilities, freight, energy, industrials — that AI cannot quickly replace. The May 19 NextEra-Dominion merger validated the heavy-asset side of the trade at the corporate-action level, while Friday’s Adobe selloff validates the disruptable side at the equity-market level. Both sides of the Halo split are now operating in real time, and the gap is widening every week.

TASI	11,104	+0.6% (YTD: +5.9%)
MSCI Tadawul 30	1,481	+0.7% (YTD: +6.8%)
NomuC	23,041	+0.3% (YTD: -1.1%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	4.25% repo	3.75% reverse repo
EGX30	51,995	+2.3% (YTD: +24.3%)
ADX	9,805	+2.7% (YTD: -1.9%)
DFM	5,954	+3.8% (YTD: -1.5%)
S&P 500	7,431	+0.5% (YTD: +8.6%)
FTSE 100	10,472	+1.6% (YTD: +5.4%)
Euro Stoxx 50	6,188	+2.2% (YTD: +6.8%)
Brent crude	USD 87.3	-3.4%
Natural gas (Nymex)	USD 3.12	+1.1%
Gold	USD 4,239	+3.0%
BTC	USD 65,202	+1.2% (YTD: -25.6%)
Sukuk/bond market index	914.38	+0.2% (YTD: -0.5%)
S&P MENA bond & sukuk	152.01	+0.3% (YTD: +0.1%)
VIX (Volatility Index)	17.68	-9.1% (YTD: +18.3%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.6% yesterday on turnover of SAR 4.2 bn. The index is up 5.9% YTD.

In the green: Sidc (+8.4%), Chubb (+8.2%), and Gulf General (+7.7%).

In the red: Kingdom Holding (-6.4%), Luberef (-5.4%), and Alramz Real Estate (-3.7%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.3% yesterday on turnover of SAR 14.8 mn. The index is down 1.1% YTD.

In the green: Mayar Holding (+9.2%), Tadweeer (+7.4%), and Axelerated Solutions (+5.7%).

In the red: Naas Petrol (-9.8%), National Building and Marketing (-8.9%), and WSM for Information Technology (-6.8%).

CORPORATE ACTIONS-

Saudi Cement Company’s board approved the distribution of SAR 153 mn in dividends for 1H 2026 at SAR 1 per share, according to a Tadawul disclosure. Distribution is scheduled for Thursday, 25 June.

CALENDAR

JUNE

21-24 June (Sunday-Wednesday): Saudi Food Exhibition and Conference, Riyadh Front Expo.

21-24 June (Sunday-Wednesday): Saudi Print & Pack, Riyadh International Convention & Exhibition Center.

21-24 June (Sunday-Wednesday): Riyadh International Industry Week, Riyadh International Convention & Exhibition Center.

21-24 June (Sunday-Wednesday): Saudi Plastics & Petrochem, Riyadh International Convention & Exhibition Center.

21-24 June (Sunday-Wednesday): Saudi Smart Logistics, Riyadh International Convention & Exhibition Center.

22-24 June (Monday-Wednesday): The Future Hospitality Summit, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

AUGUST

30 August-1 September (Sunday-Tuesday): The Saudi Entertainment and Amusement Expo, Riyadh Front Exhibition and Conference Center.

31 August-3 September (Monday-Thursday): Leap Tech Conference, Riyadh Exhibition & Convention Center - Malham.

SEPTEMBER

8-10 September (Tuesday-Thursday): The WTM Spotlight Riyadh, Riyadh Front Exhibition & Conference Center (RFECC), Riyadh

15-17 September (Tuesday-Thursday) The Global AI Summit, King Abdulaziz International Convention Center, Riyadh.

23 September (Wednesday): Saudi National Day.

28 September-1 October (Monday-Thursday): The International Conference on Theory and Practice of Electronic Governance (ICEGOV), Prince Sultan University, Riyadh.

OCTOBER

12-15 October (Monday-Thursday): World Energy Congress, Riyadh.

26-28 October (Monday-Wednesday): ACHEMA Middle East, Riyadh International Convention & Exhibition Center.

28-29 October (Wednesday-Thursday): Procurement and Supply Chain Futures Forum, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

28-29 October (Wednesday-Thursday): Real Estate Supply Chain Forum, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

NOVEMBER

11-12 November (Wednesday-Thursday): Aluminum Arabia, The Arena, Riyadh.

16-19 November (Monday-Thursday): Cityscape Global, Riyadh Exhibition and Convention Centre (Malham), Riyadh.

25-29 November (Wednesday-Sunday): Aero Middle East and Sand & Fun, Thumamah Airport, Riyadh.

Signposted to happen sometime in 2026:

2H: Sabic’s USD 6.4 bn Fujian project in China to start production;
September: Saudi Paper and Packaging Expo, Riyadh International Convention & Exhibition Center;
November: The UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia;
November: The Esports Nations Cup, Riyadh;
The World Economic Forum’s Global Collaboration and Growth Meeting, Jeddah;
SkyMove Air Cargo MENA, Riyadh;
The Intervision international music competition will take place in Saudi Arabia.

Signposted to happen sometime in 2027:

The World Water Forum takes place in Riyadh;
The Ocean Race finishes in Amaala on the Red Sea;
Riyadh-Kudmi transmission line to be completed;
Capital Markets Forum takes place in March in Riyadh.

Signposted to happen sometime in 2Q 2027:

The Hail Region Water Networks Project is expected to be completed.

2027

FEBRUARY

1-3 February (Monday-Wednesday): Energy Regulators Regional Association annual conference, Riyadh.

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