Day 1 reports from Leap + EFG Hermes One on One

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: It’s day 2 at LEAP 2024, Deepfest and EFG Hermes One on One

Good morning, friends. It’s going to be another super-busy pre-Ramadan morning across our part of the world as day two of Leap 2024 and Deepfest get underway in Riyadh. Meanwhile, Saudi corporates are among the headliners at day two of the EFG Hermes One on One conference in Dubai — the world’s largest investor conference devoted to emerging and frontier economies.

THE BIG STORY HERE AT HOME: USD 11.9 bn. That’s the total value of investment pledged in Riyadh yesterday at day one of Leap 2024 and co-located AI-focused offshoot Deepfest. Global heavyweights including Amazon, DataVolt, IBM, and ServiceNow have massive appetite for the Saudi story — Amazon and local player DataVolt have massive data center and infrastructure investments in the pipeline.

^^ We have the rundown on all three events at the head of this morning’s news well and will have ongoing coverage through week’s end.

The lineup today at Leap includes industry leaders and top global execs, among them:

500 Global partner Abdulrahman Aljiffry and 500 Global GP Amal Dokhan;

Zoom CEO Eric Yuan;
eBay VP Anna Zeiter;
Cisco Systems VP Harvey Jang;
Google managing director for AI Scott Penberthy;
Nokia president for mobile networks Tommi Uitto;
Venture Lab managing director Paris de L’Etraz;
STC Group CTO Haitham Alfaraj;
Gulf Analytica CEO David Gibson-Moore;
Cisco president for EMEA Fadi Pharaon.

The International Conference on Sand and Dust Storms in the Arabian Peninsula will open its doors today in Riyadh.The conference will address regional challenges caused by sand and dust storms and discuss monitoring systems, mitigation strategies, economic and infrastructural impacts, and more. It wraps up tomorrow.

WEATHER- Expect another day of clear skies in Riyadh today with some shy rays of sunshine in Taif and lots of sun in AlUla.

Riyadh: 26°C daytime / 13°C overnight
Taif: 25°C daytime / 12°C overnight
AlUla: 28°C daytime / 13°C overnight

WATCH THIS SPACE-

#1- A “game-changing” program to bring local and foreign tourism investors on board: Tourism Minister Ahmed Al Khateeb unveiled a new tourism investment program aimed at facilitating doing business and attracting local and foreign investors, according to a post on X. The Tourism Investment Enablers Program (TIEP) includes regulatory reforms for tourism licensing depending on type and scale of operations and reduced fees. It also includes a tailored hospitality enablers program to boost the hospitality sector. The hospitality program 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.

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.

#2- Seera and PIF break up on Almosafer acquisition: Tadawul-listed travel services provider Seera Group Holding failed to reach an agreement with the Public Investment Fund (PIF) for the sovereign wealth fund’s proposed acquisition of a 30% stake in Seera’s wholly owned subsidiary Almosafer Travel and Tourism Co, it said in a disclosure to Tadawul yesterday. The two parties agreed to terminate a non-binding term sheet signed in 2022 “due to the inability to reach an agreement between the parties regarding the transaction.”

Seera’s shares fell c. 10% at market close yesterday, they’re biggest slump in nearly four years.

#3- A platform for everything mining: The Industry and Mineral Resources Ministry launched a new unified online platform, dubbed Taadeen, to provide mining related services to investors, including licensing and investment windows, according to a post on X by Digital Saudi. The ministry’s website also got a fresh makeover.

It’s part of the Kingdom’s big push into mining: Earlier this year, the ministry announced setting up a USD 182 mn mineral exploration incentive program in cooperation with the Investment Ministry. The move came as part of the Kingdom’s efforts to expand the sector and tap reserves of gold, phosphate and others. The ministry estimates that the value of untapped mineral resources is north of USD 2.5 tn, or 90% more than the last forecast in 2016, officials said at the start of this year.

#4- Jamjoom Company for Commerce & Industry (JCCI) is set to sign six agreements worth USD 2 bn with unnamed Chinese companies operating across multiple sectors, the company’s General Manager Hisham Al Sayyad told Aleqtisadiah earlier this week. The Chinese firms, which operate in construction, renewable energy and electricity, will be contracted for projects by Neom and Aramco among others, he said.

PSAs-

You can submit requests online to provide and distribute iftar meals at the Grand Mosque in Makkah and the Prophet Mosque in Madinah in Ramadan through the General Authority for the Affairs of the Two Holy Mosques website.

SPORTS-

The Saudi Arabian Football Federation (SAFF) unveiled its new AI-powered platformSAFF+, designed to broadcast local matches to a wider audience, it said in a press release (pdf).

Starting with 15 competitions: SAFF+ will initially live stream 15 men’s and women’s competitions across 62 stadiums, using cloud broadcasting on its website. The new platform will also provide talent technical analysis in a bid to support scouts, clubs, coaches, and national youth teams. Trial streaming is set to start immediately, the statement reads.

THE BIG STORY ABROAD-

Apple has been slapped with a USD 2 bn fine by the European Commission for breaching EU antitrust laws by preventing music streaming apps from informing iPhone users about cheaper subscription options paid for outside iPhone apps. The whopping fine for “abusing its dominant position” is designed to deter Apple and other giant companies from taking similar actions in the future. (Reuters | CNBC | Associated Press)

While over in the states, Trump’s legal battles are once again making the front pages: The Supreme Court overturned a ruling by Colorado’s top court that prohibited Donald Trump from running for president in the state on the basis of an anti-insurrection clause in the US constitution. Only Congress has the constitutional power to take a candidate of the ballot under the 14 amendment, the Supreme Court unanimously ruled. (Reuters | Bloomberg | Associated Press | CNBC | BBC | Guardian)

CIRCLE YOUR CALENDAR-

Jeddah will host the Bloomberg Power Players Summit on Thursday, 7 March. The summit, sponsored by Bloomberg in Saudi with Asharq Business, will be held against the backdrop of the Formula One Saudi Arabian Grand Prix. It will bring together industry leaders in sports, entertainment and technology to identify potential multi-USD investments.

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

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

Day 1 recap: Leap 2024 lines up >USD 11.9 bn in tech investment

The first day of LEAP 2024 saw tech heavyweights unveil investments worth a combined USD 11.9 bn in the local tech sector, ICT Ministry said in a LinkedIn post yesterday.

Here’s everything you need to know:

#1- Amazon Web Services is injecting USD 5.3 bn into a “hyper-scale” cloud region in the Kingdom. Amazon joined Google parent company Alphabet and Microsoft in making Riyadh their regional headquarters last year. (Amazon statement)

Amazon will also invest in skills training programs in the Kingdom, set up two new innovation centers, and provide startups in the Middle East and North Africa with technical mentorship and trainings on technologies including artificial intelligence and machine learning.

#2- Riyadh-based DataVoltis pledging USD 5 bn to locally develop sustainable data centers, with a planned capacity of over 300 MW. The data services provider is currently operational in Riyadh, Dubai and California.

#3- ServiceNow is earmarking USD 500 mn to localize its cloud-based services here in the Kingdom. The NYSE-listed company is also hosting training and development initiatives aimed at upskilling local players in cloud-computing.

#4-IBM is investing a total of USD 250 mn to launch the first MENA software lab in the Kingdom,it said in a press release.

#5- Dell Technologies plans to establish a manufacturing, distribution, and orderfulfillment hub in the Kingdom. This would be the first center of its kind in the Middle East, Africa, and Turkey (META) regions.

#6- Aramco’s MetaBrain ia developing what it says is the world’s first industrial GenAImodel. The model would be fed with Aramco data accumulated over the span of 90 years. Additionally, the state-owned oil giant is launching the Saudi Accelerated Innovation Lab (SAIL) in partnership with a number of government bodies.

#7- Cloud monitoring service Datadog has unveiled its plans to launch the first observability academyin the Kingdom — the first in the Middle East and Africa.

#8- Toshiba and Arabian Business Machines have inked an agreement to advance barcode printing technology, Saudi Gazette reports. Under the renewed partnership, Toshiba will introduce a new range of Barcode Printers known for their precision into the local market.

MEANWHILE- The Foreign Affairs Ministry has launched a matchmaking service that pairs Saudi nationals looking for employment with international organizations seeking to hire them, SPA reports.

ALSO- PIF-owned sustainable-tech manufacturing company Alat and King Abdulaziz City for Science and Technology (KACST) have partner up to boost research, development, and innovation in the energy and and industry sectors in a bid to localize the semiconductor industry, Alat said in a statement. Alat will provide industrial facilities and will collaborate with KACST on research and training.

Global appetite for Saudi equities is high –EFG Hermes poll

Appetite for Saudi equities is high among global investors looking at where to allocate capital over the coming 12 months, according to a live poll of nearly 400 investors and corporates attending the opening session yesterday of the EFG Hermes One on One Conference in Dubai.

The live investor poll is the largest event of its kind in global emerging and frontier markets and has been running for years now. Attendees had 10 seconds to respond to each of 10 questions.

Among the key takeaways:

Some 44% of respondents think Saudi equities will deliver the best USD-denominated performance this year, while 25% think Egypt will. Dubai brought up third place with 12%. Abu Dhabi, Kuwait, and Qatar brought up the rear with single digit percentages each.

Fully 63% of respondents see small- and midcap stocks in Saudi Arabia continuing to outperform large caps. That’s on-trend: Large caps have posted a five-year return of 51% against 89% for small- and midcap equities.

Investors have as much appetite for Saudi equities as they do for the “Magnificent Seven” tech stocks. A third of all respondents said they would buy and hold Saudi equities for one year — that’s just one percentage point less than the 34% that would buy and hold a basket of Apple, Alphabet, Microsoft, Amazon, Meta, Nvidia, and Tesla shares.

Most (44%) think the US’ S&P 500 will outperform the MSCI EM index in USD terms, in a reversal of last year’s forecast.

A large portion of respondents (44%) see the US Federal Reserve cutting rates by 50 bps— over two separate 25 bps cuts — during the year. 26% think it could cut interest rates by up to 75 bps in three separate moves.

47% believe oil prices will average around USD 80 / bbl this year, which is in line with what most pundits — including Fitch Ratings and the US Energy Information Administration (IEA) — have forecast.

Most respondents (62%) said they plan to invest more in their businesses this year than they did last year, while 19% plan to maintain the same expenditure of 2023 and another 19% plan to cut back.

Respondents were evenly split on which sectors will drive growth in the MENA region this year, with 27% voting for real estate and an equal amount voting healthcare. 24% see banks performing the best during the year.

Tap or click here (pdf) to see the full poll results.

EFG HERMES’ IPO PIPELINE IN SAUDI, GCC-

EFG Hermes is cooking up aUSD 300 mn Gulf-focused education fund: EFG Hermes plans to launch a fund to invest USD 300 mn in education in Saudi Arabia, the UAE, and Bahrain. The company is eyeing a number of potential projects — including setting up, acquiring, and managing schools as well as edtech initiatives — with a view to complete these projects in 5-7 years.
EFG Hermes will advise on 8-9 IPOs in the Gulf this year: The firm is currently working on 5-6 IPOs for companies looking to list in Saudi and the UAE in the first half of this year and expects to get three other IPOs off the ground in Saudi Arabia and Oman in the second half of the year.

Cenomi Retail is going to Uzbekistan

Our friends at Cenomi Retail are expanding to Uzbekistan, bringing eight franchise brands to Tashkent City Mall, they said in a disclosure to Tadawul. This is the eleventh international market of operation for Cenomi Group’s retail arm as it looks to bank on growing consumer consumption in a shift away from the traditional shopping patterns. There’s no publicly available information about the size of the investment.

Seven household brands: The move will see the retailer open stores in the Tashkent mall for 7 Inditex brands — Zara, Pull & Bear, Stradivarius, Massimo Dutti, Bershka, Oysho, and Zara Home. This is in addition to opening a Cinnabon store.

Cenomi Retail is the largest franchise retailer in the Kingdom and the only listed business of its type in the region. The retailer is currently active in 1.3k stores across 100 malls in 10 countries, with brands spanning womenswear, menswear, kids and baby, department stores, shoes and accessories and cosmetics. This is in addition to operating a number of restaurants and coffee shops including Subway and Cinnabon. The retailer’s Aleph brand is an Apple premium partner.

Focusing on champion brands: Cenomi retail wrapped up the strategic sale of subsidiary Innovative Outfit Trading last month, selling the franchise rights of 16 fashion brands to Abdullah Al Othaim Fashion in a bid to optimize operations by downsizing its brand portfolio and focusing on the most successful names

S&P Global sees GCC firms resilient despite soft global growth and geopolitical risks

Ratings agency S&P Global sees GCC corporate and infrastructure firms standing strong this year despite “soft global economic growth,” surging interest rates, and geopolitical risks in the region, S&P Global Ratings said in its latest GCC Corporate And Infrastructure Outlook 2024 report. The report looks at how S&P feels about the companies it rates across the GCC.

Driving the optimism: S&P Global says many companies will benefit from a cushion provided by strong operating performances since last year. It likes the prospects this year for non-oil, oil and gas, and chemicals players alike. Companies are, on the whole, underleveraged, giving them more room to adapt to changing circumstances — a good sign when many will need headroom to invest in capex programs to grow or short-up their businesses.

Refinancing risk is low: As much as 80% of the debt maturing this year is with “highly-rated government-related entities,” it says.

The EBITDA benchmark: S&P sees operating profitability in the 5-10% range in aggregate for GCC companies through this year and net.

Look for non-oil GDP growth to clock in at a bit under 5% in the Kingdom and UAEon the back of ongoing economic diversification drives and population growth across the GCC, the ratings agency said. It sees non-oil sectors benefiting from a public spending spree and consumer spending growth.

Some pundits see it even lower: Fitch Ratings sees momentum for non-oil GDP in the GCC decelerating to grow at a 3.7% clip this year, slightly down from the 4.2% it penciled in for 2023. The Kingdom’s plan to pace out the implementation of some of its mega projects factors into the revised projection.

REMEMBER- The Kingdom sees non-oil GDP growth coming in at 4.5-5.0% this year, said Economy and Planning Minister Faisal Alibrahim at the WEF in Davos earlier this year.

We’re bound to see more new businesses inflow: S&P Global Ratings expects to see more new businesses being set up here and in the UAE. It attributes the growth in new businesses to the Kingdom’s regional headquarters program, which went into effect on 1 January. It also sees a new premium residency visa scheme launched earlier this year to drive the creation of new businesses and new jobs. The regional HQs program, a cornerstone of Crown Prince Mohammed bin Salman’s economic diversification plan, sees foreign firms moving their regional HQs here or running the risk of losing out on government contracts

A booming M&A + IPO floor: The ratings agency expects GCC telecom operators to continue expanding into new markets after resuming acquisitions last year after several years of hiatus. It highlighted telecom operator stc’s acquisition of a 9.9% stake in Spain’s Telefonica and stc subsidiary Tawal agreeing to buy mobile tower infrastructure worth EUR 1.2 bn from United Group. It expects a “sustained IPO activity” this year with some of the companies announcing listings/potential listings on the main market and parallel market Nomu including: Avalon Pharma, Moderns Mills, Al Modawat Specialized Medical Hospital, Pan Gulf Marketing others.

Al Rajhi Bank hires advisors for five-year sustainable sukuk

Al Rajhi Bank set to issue sustainable sukuk: Al Rajhi Bank plans to issue USD-denominated sustainable sukuk, it said in a disclosure to Tadawul yesterday. It did not disclose details about the size and terms of the issuance, but a document seen by Reuters sees the lender selling a benchmark-sized five-year sustainable sukuk under its USD 4 bn Trust Certificate Issuance Programme

Details are still scant: The issuance will be made available for subscription to eligible investors locally and internationally through a special purpose vehicle with proceeds earmarked to support the bank’s financial and strategic objectives in line with its sustainable finance framework.

ADVISORS- Al Rajhi Bank hired our friends at HSBC, along with Al Rajhi Capital, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Citigroup Global Markets, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank as joint lead managers and bookrunners for the transaction. Its advisors list also includes Goldman Sachs, KFH Capital Investment, SMBC Capital Markets, Société Générale and Standard Chartered Bank.

Saudi looking to more than double world record for tallest skyscraper

We could be seeing the world’s tallest skyscraper in Riyadh: British architecture studio Foster + Partners is reportedly working on designs for a 2 km tall skyscraper in Riyadh in what could be the world’s tallest building to beat Dubai’s Burj Khalifa, Architects’ Journal reported in an exclusive yesterday. The multi-bn USD project will be built at a site near the capital’s King Khalid International Airport.

Beating Burj Khalifa: The project, which is reportedly backed by the Public Investment Fund (PIF), would be twice as tall as the world’s current tallest building, the Burj Khalifa, which stands 828 meters tall. Sources told the publication that global architectural and engineering giant Skidmore, Owings & Merrill (SOM) and other global design houses had been working on designs for the project. SOM designed Burj Khalifa which was completed in 2010.

And the PIF’s own tower: Riyadh’s current tallest building is the 385 meter PIF Tower located in the King Abdullah Financial District. It was designed by local architecture and engineering firm Omrania and US-based architecture and engineering house HOK.

Setting a record for Fosters itself: The planned tower would beat Foster + Partners’ current tallest design, the 423m-tall JPMogran Chase World Headquarters in New York.

And that’s not all for the design house: Foster + Partners is also working on a number of other projects, including expansions at the capital’s airport. It was tapped last year to design a new terminal for Abha International Airport as a stone village.

PIF-owned Dan signs agreement with Hilton to operate three resorts in Al Ahsa

Hilton tapped to operate Dan’s first three resorts in Al Ahsa: The Public Investment Fund (PIF) subsidiary Dan Company will have global hotel operator Hilton run three resorts in Al Ahsa, according to a statement by Dan yesterday. Al Ahsa is home to UNESCO-listed World Heritage Site Al Ahsa Oasis, the largest oasis in the world. The statement did not disclose financial details or a timeline for the projects.

Ironing out the details: Hilton will manage Al Ahsa Agritourism Resort under its LXR Hotels and Resorts brand and the Al Ahsa Eco Resort and Al Ahsa Adventure Resort under the Curio Collection by Hilton. The 1.8 mn sqm development project in the region will be by road from cities including Riyadh, Dammam, Khobar, Jubail as well as Bahrain and Qatar. All are 1.5 to 3 hours away.

Who’s Dan? The PIF unit launched in December to promote agritourism and ecotourism across the Kingdom. It is expected to contribute SAR 6 bn (c. USD 1.6 bn) to non-oil GDP by 2030

What they said: Hilton is looking to quadruple its portfolio here, President and CEO Chris Nassetta said.

REMEMBER- Nassetta said last week that Hilton aims to have a portfolio of 100 properties in the Kingdom. Nassetta said the hotel group plans to open more than 60 new properties in the coming years. Two-thirds of Hilton’s pipeline of projects here is currently in the works.

IN OTHER TOURISM NEWS- Get ready for an adrenaline-filled tourist experience: The Eastern Province signed an investment agreement with PIF company The Rig to develop infrastructure for The Rig, which is the world’s first inspired off-shore oil rig-style tourist destination, state news agency SPA reported. The agreement includes developing and operating a marina, helicopter landing sites and others for the project.

Saudi E-commerce startup Salla raises USD 130 mn pre-IPO round

Homegrown tech startup Salla secures big funds pre-IPO: Local e-commerce platform Salla raised USD 130 mn in a pre-IPO investment round led by Bahrain-based alternative asset manager Investcorp and others, a statement by Investcorp read yesterday. The round saw participation from PIF company Sanabil Investment and Riyadh-based venture capital firm STV, which is an existing shareholder in the startup, according to the statement.

What we know: Investcorp made the investment in Salla through its USD 500 mn Saudi Pre-IPO Growth Fund, which provides funds for pre-IPO companies here. The transaction sees Investcorp Principal Robin Manssour joining Salla’s Board of Directors, according to the statement. Investcorp declined to disclose information about the startup’s valuation of a timeline for the potential listing, according to Bloomberg.

About Salla: Founded in 2016, Salla provides a SaaS (Software as a Service) solution that allows users to set up their e-commerce stores in Arabic to sell and deliver products to customers. It has enabled USD 7 bn in sales through its services with over 80k active merchants on the platform since 2020.

Not the fund’s first: The dedicated Saudi fund by Investcorp led a pre-IPO funding round for Saudi-based digital freight network TruKKer in 2022. It also acquired a majority stake in leading ICT services provider NourNet in the same year.

More earnings: SIPCHEM, SAL Saudi Logistics Services

SIPCHEM-

Sahara International Petrochemical’s net income fell 67% y-o-y to SAR 1.2 bn in 2023 due to a decline in sales and selling prices, it said in a disclosure to Tadawul. Revenues decreased 26% y-o-y to SAR 7.6 bn over the same period. On a quarterly basis, Sipchem’s bottom line fell 67% y-o-y to SAR 159 mn in 4Q 2023, while its top line was up 4.3% y-o-y to SAR 2 bn over the same period, according to data seen by Argaam.

SAL LOGISTICS-

SAL Saudi Logistics Services’ net income rose 41% y-o-y to SAR 510 mn in 2023, while revenues increased 19% y-o-y to SAR 1.5 bn over the same period, it said in an earnings release. The logistics company attributed the bottom line increase to a 11.7% rise in cargo handling volume. On a quarterly basis, SAL’s bottom line grew 60% y-o-y to SAR 180.6 mn in 4Q 2023, while its top line was up 16.5% y-o-y to SAR 411 mn over the same period, according to data seen by Argaam.

Dividend payouts for 4Q: The board has proposed a dividend payout of SAR 121 mn at SAR 1.51 per share for 4Q 2023, it said in a disclosure to Tadawu l. Investors can cash out within 15 days from Thursday, 7 March. (SAL posted a correction on Tadawul for the dividend payout date) This brings the total amount of dividends for 2023 to SAR 352 mn at SAR 4.4 per share.

AMAK-

Al Masane Al Kobra Mining’s (AMAK) net income fell 56.8% y-o-y to SAR 54.6 mn in 2023, while revenues were down 16.3% y-o-y to SAR 487.9 mn over the same period, it said in a disclosure to Tadawul yesterday. On a quarterly basis, SAL’s bottom-line fell 72.4% y-o-y to SAR 5.9 mn in 4Q 2023, while its top line was down 26% y-o-y to SAR 114.8 mn over the same period, according to data seen by Argaam.

Hassan Allam launches its regional HQ in Riyadh

Hassan Allam opens up Saudi HQ: Our friends at Hassan Allam Holding, the regional construction, engineering, and infrastructure giant, yesterday inaugurated their regional headquarters in Riyadh after securing an investment license from the Investment Ministry, the group said in a statement (pdf). The new headquarters comes as part of the group’s plan to expand across the Middle East and Africa.

Based in the kingdom, but international in outlook: The new HQ will “play a critical role in steering [the company’s] international activities across the Middle East and Africa, equally, on the construction as well as the investment and development aspects of [the] business,” co-CEO Amr Allam said. In addition to contracting and engineering projects across the GCC, Egypt, and Africa, Hassan Allam is an investor and developer of water, energy, transport and logistics, and social infrastructure projects.

Remember: The group’s real estate arm Hassan Allam Properties earlier this week inked an MoU with local real estate player Sumou Holding to set up a JV to open up cross-border investments for the companies in Saudi Arabia and Egypt and to share expertise.

INVESTMENT WATCH-

UAE’s Burjeel Holdings expands its footprint in the local market: The ADX-listed healthcare provider has unveiled eight new physiotherapy centers in Riyadh, Yanbu, Jeddah, Dammam and Al Khobar, it said in a press release yesterday. The move brings Burjeel’s total number of PhysioTherabia centers in the local market to 12. The company launched four PhysioTherabia centers in Riyadh last year under a partnership agreement with the Riyadh-based fitness brand Leejam Sports.Burjeel has also unveiled a new collaboration with local insurer Tawuniyah.

M&A WATCH-

#1- Local ins. provider Saudi Re is offloading its entire 49.9% stake Probitas Holdings (Bermuda) under a freshly-inked purchase agreement with London-based Aviva Ins. in a bid to boost liquidity and accelerate growth in local and international markets, it said in a press release yesterday. The transaction is expected to wrap up by mid-2024 upon obtaining regulatory approvals.The transaction could amount to GBP 120 mn — that’s 5x Saudi Re’s initial GBP 20 mn investment into Bermuda. The final price is still subject to adjustments.

MANUFACTURING-

First Mills has started commercial operation at the new Durum Mill located in its Jeddah plant, according to a disclosure to Tadawul yesterday. The expansion adds four wheat products to the company’s product portfolio with an expected 300 tons increase in daily wheat production capacity.

FINANCIAL SERVICES-

Al Khabeer Capital Company will debut its Alkhabeer Diversified Income Traded Fund 2030 on Tadawul as a close-ended traded fund, according to a Capital Market Authority disclosure.

SAUDIZATION-

60% of the flight attendants and 70% of fixed-wing pilots working in the Kingdom will have to be Saudi nationals as part of phase two of localizing some licensed aviation jobs, according to a statement. The initiative will also be applied to private sector companies which have 5 or more aviation employees.

DEBT WATCH-

Fundamental Installation for Electric Work increases credit facilities limit by SAR 65 mn TO SAR 196 mn from Saudi Awwal Bank, said parent company Red Sea International in a disclosure to Tadawul. The funds are earmarked for the import of goods and payroll financing in relation to its wellness hub project Triple Bay.

snapshot of trading value, ownership in Tadawul for February 2024

Local investors were net sellers on Tadawul’s main market in February with net sold positions worth SAR 1.6 bn, according to the Tadawul monthly ownership and trading activity report (pdf). GCC investors were also net sellers with net sold positions worth SAR 405 mn, while foreign investors were net buyers with net acquired positions worth SAR 2 bn.

Ownership structure: The total holding of local investors in listed companies on the main market Tadawul rose 4.7% m-o-m to SAR 10.7 tn in February. GCC investors’ holdings increased 4.7% m-o-m to SAR 71.5 bn in February, while that of foreign investors grew 7.7% m-o-m to SAR 426 bn in the same month.

PARALLEL MARKET NOMU-

Nomu trading values in February 2024: Local investors were net buyers on Nomu in February with net acquired positions worth SAR 6.8 mn, according to the latest data from Tadawul (pdf). GCC investors were also net buyers with net acquired positions worth SAR 784 mn, while foreign investors were net sellers with net sold positions worth SAR 7.6 mn.

Ownership structure: The total holding of local investors in listed companies on Nomu rose 4.7% m-o-m to SAR 50 bn in February. GCC investors’ holdings increased 7% m-o-m to SAR 260 mn in February, while that of foreign investors grew 15% m-o-m to SAR 734 mn in the same month.

SUKUK / BONDS MARKET-

Local investors were net sellers in the local sukuk market with net sold positions worth SAR 274 mn in February, while GCC investors were net sellers with net sold positions worth SAR 6k, and foreign investors were net buyers with net acquired positions worth SAR 274 mn.

The total holding of local investors in the local sukuk market inched up 1.4% m-o-m to SAR 7.6 bn in February, while that of GCC investors inched up 0.4% to SAR 1.2 bn, and that of foreign investors increased 7% to SAR 4.6 bn in the same month.

MARKETS THIS MORNING-

In Asia, it’s red as far as the eye can see, with Chinese, Korean, and Japanese benchmarks edging lower this morning as China’s big annual political get-together kicked off this morning. Traders are looking for clarity on the Communist Party’s economic policy for the year. Officials are now guiding for GDP growth of “around 5%” for this year, a bit below the 5.2% it advanced in 2023.

Futures point to a soft open for stocks in Europe, on Wall Street, and on Bay Street later today.

TASI	12,434.59	-1% (YTD: +3.9%)
MSCI Tadawul 30	1,592.03	-1.1% (YTD: +2.7%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	30,542.33	+5.1% (YTD: +22.7%)
ADX	9,285.59	+0.1% (YTD: -3.1%)
DFM	4,326.62	-0.7% (YTD: +6.6%)
S&P 500	5,130.95	-0.1% (YTD: +7.6%)
FTSE 100	7,640.33	-0.6% (YTD: -1.2%)
Euro Stoxx 50	4,912.92	+0.4% (YTD: +8.7%)
Brent crude	USD 82.81	-0.9%
Natural gas (Nymex)	USD 1.94	+5.5%
Gold	USD 2,124.70	+1.4%
BTC	USD 67,170.61	+7.1% (YTD: +199.5%)

THE CLOSING BELL-

The TASI fell 1% yesterday on turnover of SAR 10.5 bn. The index is up 3.9% YTD.

In the green: Al Baha(+7.1%), SSP (+5.7%) and Acwa Power (+5.4%).

In the red: Seera (-9.9%), Al Khaleej Training (-9.9%) and Ayyan (-7.6%).

CORPORATE ACTIONS-

Nomu-listed Atlas Elevators’ general assembly has agreed to a buyback of up to 300k treasury shares, the company said in disclosure to Tadawul yesterday. It attributed the move to a current share stock price lower than the fair value. The buyback, which will be self-financed, would be implemented within a maximum period of 12 months.

Saudi-Egypt Joint Committee agree to boost trade exchange

The Saudi-Egypt Joint Committee meeting concluded yesterday in Riyadh with a consensus to boost trade between the two countries, state news agency SPA reported yesterday. The committee was led by Commerce Minister Majid Al Qasabi and Egyptian counterpart Ahmed Samir. Trade volume between Saudi and Egypt currently stands at USD 20 bn, according to Al Qasabi.

An easier way of doing business for investors in Egypt? The Egyptian side pledged to provide necessary facilitations to Saudi investors looking to invest in the country, according to Al Eqtisadiah. They also said they were committed to resolving hurdles facing Saudi investments in Egypt.

The Saudi-Brazilian Business Forum went down to business yesterday, with over 150investors taking part in the forum organized by the Federation of Saudi Chambers, state news agency SPA reported yesterday. It saw discussions on potential investments and partnerships in aviation, energy, logistics, mining, food security, pharma and others.

CALENDAR

MARCH

7 March (Thursday): Bloomberg Power Players Summit, Jeddah.

7-9 March (Thursday-Saturday): 2024 Saudi Arabian Grand Prix, Jeddah.

10 or 11 March: First day of Ramadan (tbc based on sighting of the crescent moon).

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

APRIL

10 April (Wednesday): Eid al-Fitr (tbc based on the start date of Ramadan)

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

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

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

MAY

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

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)

AUGUST

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

SEPTEMBER

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

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

DECEMBER

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

Signposted to happen sometime in 2024:

The AFC Champions League Elite

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