Day 2 reports from Leap 2024 + EFG Hermes One on One

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WHAT WE’RE TRACKING TODAY

THIS MORNING: It’s day three of Leap 2024, Deepfest, and the EFG Hermes One on One

Good morning, friends. We are 4-5 sleeps away from Ramadan and there is no slowing down in terms of news from day two of Leap 2024 and co-hosted Deepfest in Riyadh as well as from EFG Hermes’ One on One conference in Dubai.

THE BIG STORY AT HOME: USD 888 mn. That’s the total value of investments disclosed yesterday in Riyadh during day two of Leap 2024 and Deepfest, the AI-focused offshoot. The vast majority of the investments (USD 835 mn) are pledges for new investment funds that aim to boost early-stage startups in the local market and regionally, while the rest (USD 53.4 mn) was raised by six tech-powered startups.

That brings to north of USD 13 bn the total value of investments in tech announced during the high-profile gathering.

^^ We have the rundown at the head of this morning’s news well as well as in our report of yesterday. We’ll have ongoing coverage tomorrow and Sunday (Leap and Deepfest end tomorrow), but we expect we’ve now seen the majority of the “big” announcements.

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

Aramco vice president and chief digital officer Nayef Al-Otaibi;
Aramco Digital CEO Tareq Amin;
Google X’s former chief business officer turned motivational speaker Mo Gawdat;
McKinsey Digital senior partner Johannes-Tobias Lorenz;
Microsoft Arabia president Turki Badhris;
PWC Ventures scale lead Patricia Keating;
Huawei managing director Alan Qi;
KBW Group founder Khaled Bin Alwaleed bin Talal Al Saud;
PepsiCo sustainability lead for Saudi Arabia Tala Alem.

HAPPENING TODAY-

IPO WATCH #1- Retail investors have until the close of business today to put in orders for shares in Modern Mills’ IPO. The subscription period for 2.5 mn shares (or 10% of the offering) ends today. Modern Mills has priced its IPO shares at SAR 48 each, generating an order book of SAR 150 bn from institutional investors and valuing the company at SAR 3.9 bn. The milling company is taking 24.5 mn shares to market — good for a 30% stake — in a SAR 1.2 bn secondary sale.

IPO WATCH #2- The book-building process for the Nomu IPO of scrap metal recycler Taqat Mineral kicks off today for qualified investors and wraps up on Wednesday, 13 March, Taqat’s financial advisor, Miyar Capital, said in a regulatory filing yesterday. The IPO on the parallel market was priced at SAR 18 apiece. Taqat received the nod from the Capital Market Authority in December to list 20% of its shares.

AND- Speaking of IPOs: Seera’s Almosafer plans to go public within the next two to three years, CEO Muzzammil Ahussain told Al Arabiya yesterday.

MEANWHILE- The offering of Al Rajhi Bank’s sustainable five-year USD-denominated sukuk wraps up today for both domestic and international investors, the bank said in a filing to Tadawul. This is part of the lender’s USD 4 bn Trust Certificate Issuance Programme. The minimum subscription value is set at USD 200k and in increments of USD 1k in excess.

WEATHER- Expect a cloudy day in Riyadh and Dammam with some sun in Jeddah.

Riyadh: 25°C daytime / 13°C overnight
Jeddah: 29°C daytime / 22°C overnight
Dammam: 25°C daytime / 16°C overnight

DATA POINT- The Human Resources Development Fund invested SAR 8.7 bn last year in training programs for 1.9 mn citizens, benefiting 120k establishments, and contributing to the recruitment of 374k Saudis, it said in a statement.

WATCH THIS SPACE-

#1- Aramco, Shell shortlisted for acquisition of Temasek’s Pavilion Energy LNG assets:Oil giant Aramco and Shell have been shortlisted among other companies by Singapore’s Temasek Holdings for the sale of its LNG trading firm subsidiary Pavilion Energy’s assets, Reuters reported yesterday, citing sources it says are close to the matter. Singapore’s state-owned investment firm, Temasek is currently reviewing bids for the assets, excluding its gas pipeline business, one of the sources said.

All under one big ambitious plan by Aramco: An acquisition of Pavilion Energy’s LNG assets would help Aramco spur its LNG business, one of the sources said. "Aramco is late to the LNG party, but they have the money to catch up,” the source said.

#2- Our friends at EFG Hermes are building a USD 300 mn fund directed to educational investments in the Gulf with a focus on Saudi, Karim Moussa, the co-CEO of its investment bank, said in an interview with Asharq Business (watch, runtime: 6:36). “The Saudi market is big … the second-largest educational in the region with 6.5 mn students where 85% of them go to public schools and the remainder are in private schools,” he said. Only 10% of the private education market is controlled by four top educational players in the Kingdom, paving the way for further investments in the sector.

#3- Don’t get your hopes up for a lower value-added tax, Finance Minister Mohammed Al Jadaan said yesterday in an interview with popular local podcast Socrates (listen, runtime: 2:50:00). There are no plans to cut the tax from its current 15% level, the minister said, adding that the VAT came into effect partially to fund the Citizens Account, a cash handout program for vulnerable citizens to help offset the impact of economic reforms, including the phaseout of subsidies.

BUT- The government is reconsidering monthly fees for the dependents of expats, Al Jadaan added. He said the decision was made based on studies recommending the levy on grounds that expats were benefiting from oil, electricity, and water subsidies, among others. “The government is currently reviewing monthly fees the dependents of expats, especially that we’re now looking to lure in talent,” he said.

BACKGROUND- The dependent fee was initially set at SAR 100 per person in 2017 before increasing gradually to reach SAR 400 since 2020. The fees came as officials pushed to create more jobs for Saudis as part of the Kingdom’s diversification away from oil. Some in the business community contest the fees, saying the are driving up the cost of employing staff. businesses on grounds that they drive operating expenses up. Some reports have suggested the fees were a factor in a 10% contraction of the Kingdom’s foreign workforce between the start of 2018 and 3Q 2021.

#4- The Tourism Ministry is looking to attract up to USD 80 bn in private investments to push the Kingdom’s growing tourism sector further, Tourism Minister Ahmed Al Khateeb told Bloomberg in an interview yesterday. “I want the private sector to represent the majority of investment,” Al Khateeb said. It is seeking to raise USD 60 bn to USD 80 bn in private sector investments by 2030. “This is a very ambitious target,” he said. His statements came as the ministry launched a new tourism investment program aimed at facilitating doing business and attracting local and foreign investors.

BACKGROUND- 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.

#5- US design, marketing, video, and audio software giant Adobe is gearing up to launch its new regional headquarters in Riyadh, set to open by early 2025, after it received approval from the Investment Ministry, it said in a press release.

HAPPENING TOMORROW-Jeddah will host the Bloomberg Power Players Summit and the 2024 Saudi Arabian Grand Prix tomorrow.

OIL WATCH-

Market sentiment is improving in the outlook for oil and gas prices against the backdrop of a decline in US shale share drilling and an extended OPEC+ voluntary oil output cut until the end of 1H 2024, Reuters reports. Hedge funds are closing out short positions and buying oil as they eye potential price appreciation.

SPORTS

We’re getting a cutting-edge F1 track in Qiddiya: Qiddiya Investment Company (QIC) unveiled a new F1 circuit as the Kingdom aims to position itself as one of the world’s top motorsport venues, state news agency SPA reported yesterday. The configurable Speed Park Track includes 21 corners with an elevation gain of 108 meters. It was designed by ex-F1 driver Alex Wurz and German circuit designer Hermann Tilke. The track will be host to major events including the Formula 1 Grand Prix and MotoGP races.

#7- A home run? Baseball United — the Middle East and South Asia’s first professional baseball league — inked an agreement with the Saudi Baseball and Softball Federation (SBSF) to host its league and tournament here, Reuters reported yesterday, citing a source in the know. The partnership will see Baseball United setting up a subsidiary in Saudi to help develop the sports. It will also support the formation of a national team to compete in the next World Baseball Softball Confederation Tournaments. The partnership is set to be announced this week.

THE BIG STORY ABROAD-

It’s “Super Tuesday” in the United States, and Republican frontrunner Donald Trump has so far taken 10 of the 15 states holding Republican primaries overnight. Challenger Nikki Haley, the former South Carolina governor and Trump’s ambassador to the UN, took only the District of Columbia and the primary in Vermont remains too close to call. The Donald will still need to pick up delegates in primaries later this month to hit the 1,215 figure that will ensure him the nomination at the party’s convention in July.

Sound smart- Biden is also racking up primary victories this morning. If each takes his party’s nomination this summer, it will be the first time since 1956 that two candidates have faced each other in an election rematch. (New York Times | Wall Street Journal | Reuters)

China eyes 5% growth in 2024: The Chinese government is targeting an GDP growth of around 5% in 2024 despite persistent property crisis and rising debts, where even the Chinese Premier Li Qiang acknowledged that it is going to be challenging to achieve. (Reuters
Bloomberg | The Associated Press)

Remember: The world’s second-largest economy saw its GDP expand 5.2% last year — matching its official c. 5% target for the year — though the IMF forecast China’s growth to slow down to 4.6% in 2024 and to further reach 3.5% by 2028.

Tech investment pledges now top USD 13 bn after day two of Leap 2024

Global giants and national players have announced investments in technology from data centers to startups worth more than USD 13 bn in the first two days of Leap 2024 and co-located AI-focused event Deepfest. Day one saw Amazon and DataVolt lead the way as investors promised nearly USD 12 bn worth of investment. Yesterday saw companies unveil some USD 835 mn to launch seven new investment funds while six startups said they have raised a combined USD 53 mn in funding.

Here’s everything you need to know about day two:

#1- Bahrain’s Investcorp and SVC are setting up a USD 500 mn fund to back local firms in their various growth stages, SVC is contributing USD 35 mn.

#2- Bahrain’s Oasis Capital is establishing a new USD 100 mn fund to support early-stage business owners in the Middle East. “Fund II” is Oasis’s second investment fund in the Kingdom.

#3- Takamol Ventures is launching a USD 50 mn investment arm to take positions in early-stage tech startups in the Middle East and Africa.

#4- US-based Plug and Play is setting up a USD 50 mn fund to invest in the region’s tech-driven startups. The US-headquartered VC’s fund will similarly cater to players across the entire MENA region.

#5- Local accelerator X by Unifonic is launching a USD 15 mn fund with appetite for software-as-a-service startups in MENA.

#6- Merak Capital is set to operate a USD 80 mn gaming and esports accelerator and investment fund with contributions from Ignite, Saudi Esports, Social Development Bank and the National Development Fund. Meanwhile, Impact 46 will be managing yet another USD 40 mn esports fund with participation from all the same players — excluding Merak.

STARTUP FUNDING-

#1- Fintech Moyasar raised USD 21 mn in seed funding from online food delivery platform Jahez Group to further expand its operations in MENA and grow its product offering.

#2- Homegrown BNPL BuildNow secured USD 9.4 mn in seed funding to support the supply chains of SMEs in the construction, manufacturing and trading industries. The round was co-led by Raed Ventures and Khwarizmi Ventures with participation from international VCs and local angel investor Abdullah Elyas. (Buildnow statement).

#3- Local procurement company BRKZ lined up USD 8 mnin series A funding to boost its tech services in the construction sector. The round saw contributions from Wa’ed Ventures, Beco Capital, and London-based VC 9900.

#4- B2B marketplace Lawazem bagged some USD 8 mn from Merak Capital in a pre-series A round. Proceeds are earmarked to finance the local and regional expansion of its operations.

#5- US-based cross-border team onboarding service RemotePass closed a USD 5.5 mnseries A funding round, according to a statement. The round saw participation from Endeavor, Khwarizmi Ventures, Oraseya Capital, Flyer One Ventures, Access Bridge Ventures, A15, and Swiss Founders Fund.

#6- Riyadh-based football live coverage application fanZ raised USD 1.5 mn in pre-seed fundingto enhance its sports and fintech application, according to a statement. The round was co-led by 500 Global and 2A Ventures.

MEANWHILE- The Kingdom and the UK signed a MoU to collaborate on tech R&D and boost research ties, according to a statement by the UK Science, Innovation and Technology Ministry. They will work together to provide “deep science and tech breakthroughs” for food security, and clean energy, according to the statement.

Non-oil business activity rallies in February

Non-oil business activity regained momentum in February 2024, recoveringfrom January’s slump, according to the Riyad Bank Saudi Arabia PMI (pdf) out yesterday. Headline PMI hit 57.2 last month on stronger demand, up from 55.4 in the previous month which marked its lowest reading in two years.

Output increased at the fastest pace in five months: Output came in at 61.5 in February, up from 58.1 in the previous month fueled by heightened demand, a vibrant tourism sector and a resilient construction sector, the report reads.

Exports orders drove an uptick in new orders to 62.2 in February, up from 60.5 in the previous month, signaling resilient “demand for domestic products from international markets and high competitiveness in local industries,” according to Riyad Bank Chief Economist Naif Al-Ghaith.

Purchasing activity remained strong as local firms ensured a steady inflow of inputs to secure lower prices from suppliers given the outlook on demand. This resulted in the sharpest increase in inventory levels since August 2022. Firms also witnessed an improvement in delivery times

Employment levels grew at one of their fastest rates in eight years, suggesting a higher demand for labor in a growing non-oil economy.

Easing inflationary pressures: Purchasing prices increased at their slowest rate in five months in february, and staff wages at their slowest in six months. Higher market competitiveness put a lid on selling prices in the same months.

AROUND THE REGION

The UAE’s PMI (pdf) expanded to 57.1 in February, up from 56.6 in the previous month. This marks its fastest growth pace in five years on the back of rising demand.
Egypt’s PMI (pdf) fell to 47.1 in February down from 48.1 in January, logging an 11-month low as inflation pressures and Suez Canal disruptions dampened demand and caused supply-side challenges.

IMF Executive Director Mahmoud Mohieldin on the regional and global outlook for 2024

IMF Executive Director Mahmoud Mohieldin took to the stage at the EFG Hermes One on One conference in Dubai to offer his outlook on the global and regional economies for the next couple of years. The conference, which welcomed this year some 670 investors and 250 global institutions, runs thought tomorrow. Executives from some 215 companies in 29 countries are in Dubai to meet face-to-face with global investors.

“The center of economic gravity is shifting towards the East,” Mohieldin, who is also the UN Special Envoy on Financing the 2030 Agenda for Sustainable Development, told attendees, pointing to countries including China, India, Vietnam and the Philippines. It’s up to emerging markets and countries in the Middle East — which are strategically located to benefit from that shift — to make the most of that transition, he added. Regional cooperation is important in the increasingly fragmented global economy that we currently live in, he said, adding that “better trade relations and FDI in the region” will allow these markets to grow without constraints.

Navigating a restricted and fragmented trade environment is the uphill battle emerging markets will have to reckon with over the next couple of years, Mohieldin said. “It’s a sad fact that last year, 3k trade restrictions is 3x more than what we had in 2019,” he said. “All emerging markets are dependent on a globalized economy with trade flows, FDI and knowledge sharing — that is not the case anymore,” he added.

Expanding the non-oil sector is paramount for GCC countries: “There have been good attempts at diversification, and the name of the game is how to diversify better,” Mohieldin said. “Some have the ability to do that and have diversified into services and high tech and investments at home and abroad, [and] some have great ambitious infrastructure plans, like Saudi Arabia, and are benefiting from a well educated caliber of the young population,” he explained, referencing the UAE.

And EMs need to keep debt in check, but “we’re not going to see a global debt crisis like the 1970s, ‘80s and ‘90s. The kind of debt today and the limited exposure of financial institutions won't make it a global crisis,” he said. “[But] we’ll see a development crisis; we’ll see scattered fires in different places,” Mohieldin added. “Many countries today in Africa and South Asia are paying on their debt service more than what they pay on education and health,” he noted, adding that the high cost of borrowing — along with muted FDI flows and inadequate domestic savings — are hampering investments and growth in emerging markets.

…which involves setting up a common resolution mechanism: “If you’re in debt trouble and you’re in an economy without significant spillovers to the rest of the world, you’re on your own with very little support from the global financial system,” Mohieldin said, adding that many countries in Africa and South Asia are paying more on debt service than on essential services like education and healthcare. “The world right now doesn’t have a good resolution mechanism; it’s too slow and doesn’t work,” he said.

Things could take a turn when interest rates go down: Anticipated rate cuts from the US Federal Reserve will be “good news” for capital flows and potential penetration in emerging markets’ capital markets, Mohieldin said.

But more needs to be done: “We need to learn from past mistakes [and] avoid excessive borrowing,” he said, adding that we need more equity-based financing. We also need to develop an encouraging business environment, and ensure good coordination between fiscal and monetary policy, while also capturing the potential of the green transition and big data and AI, he added.

And we must be mindful of the impacts of laws in the US and the EU on our part of the world, he added, referencing the US’ Inflation Reduction Act — which involves providing subsidies in the form of tax credits to renewable energy projects — and the EU’s carbon border adjustment mechanism (CBAM), which taxes imports of certain raw materials in a bid to reduce greenhouse gas emissions.

GCC economies will want to keep a eye on how well their peg to the USD suits them as they transition away from oil-based economies — and countries such as Egypt will do well to not make FX policy the center of their economic policies. Instead, Mohieldin said, Egypt needs to move to an inflation-targeting policy regime that uses multiple tools to bring inflation to manageable levels.

We’re not on track to achieve any of the sustainable development goals (SDGs) — of the 17 goals, we’re only on track to achieve 15%, and we’re deviating either slightly or significantly on 50% of the goals, Mohieldin said.

UAE-based Gulf Islamic Investment acquires Saudi asset management firm

UAE’s Gulf Islamic Investments grabs Saudi asset manager: UAE’s Gulf Islamic Investments (GII) has acquired an a licensed investment and asset management firm in Saudi as it looks to expand its presence here, it said in a post on Linkedin yesterday. No further details were provided on the target company or the stake that the GII has acquired.

The rationale: The acquisition paves the way for the GII to expand its services here to include corporate finance advisory, investment fund management and private equity, according to the statement.

Not the GII’s first venture here: Its existing investments here include a SAR 600 mn “significant” stake in leading local healthcare provider Abdeel Medical Company (Abeer) earlier this year. It also grabbed a majority stake in the Kingdom’s biggest dental and dermatology clinics Al Meswak Dental Clinics in 2022 from privately-owned investment bank Jadwa Investment in a transaction valued at USD 600 mn.

More to come: GII is in the process of finalizing acquisitions in the local food processing sector, it said in a statement picked up by Zawya yesterday. No further details were disclosed.

About GII: Itis a licensed Shariah compliant global investment firm with over USD 4.5 bn of assets under management. It pours capital in real estate, venture capital and private equity among others.

Cabinet approves new program to develop legal departments at government agencies

The Cabinet has approved setting up a new program to support and develop legal departments at government agencies, state news agency SPA reported yesterday. It also approved the Culture Ministry’s organizational structure. It did not provide further details on the two decisions.

AND- Cabinet reiterated its call to the international community to take a firm stance compelling Israel to respect international law and immediately open safe humanitarian corridors to allow for the delivery of aid without restrictions.

Also approved at yesterday’s cabinet meeting:

Separate MoUs with Ethiopia, Senegal and Chad for cooperation in the energy sector;
A draft reference model between the Transport General Authority (TGA) and counterparts in other countries in maritime transport;
An agreement with the United Kingdom on air transport;
Mandating the Transport and Logistics Services Minister to discuss and sign a MoU with Finland on air transport;
Mandating the Economy and Planning Minister to discuss and sign a draft cooperation agreement with Estonia;
Mandating the Environment, Water and Agriculture Minister to discuss and sign an MoU with the Center for Environment and Development for the Arab Region and Europe (CEDARE) to contribute in the center’s endowment investment fund (Waqf);
Authorizing King Abdulaziz Foundation for Research and Archives’ chairman to sign MoU with the British Library in London;
Mandating the Culture Minister to discuss and sign a MoU with Malaysia for cooperation in the cultural field.

More earnings: Ades Holding, Tasnee, Saptco, Clean Life

ADES HOLDING-

Tadawul-listed oil and gas drilling company Ades Holding’s net income rose 13.7% y-o-y to SAR 452.1 mn in 2023, it said in an earnings release (pdf) yesterday. Its revenues were up 75.6% y-o-y to SAR 4.3 bn over the same period. On a quarterly basis, the Egypt-born company’s bottomline fell 24% y-o-y to SAR 169 mn in 4Q 2023, while its topline was up 59.5% y-o-y to SAR 1.3 bn over the same period, according to data seen by Argaam.

Deep dive: Ades attributed its topline growth to a completed acquisition in Saudi in 4Q 2022 that added four operations rigs to its portfolio and the launch of 14 rigs from the 19 contracts signed with Aramco among other drivers. The growth in bottomline came on the back of SAR 140.7 mn in non-recurring expenses and non-cash income recognized during FY 2022.

Its operations in Algeria saw the biggest growth last year, with its revenues from the North African country rising 175.9% y-o-y to SAR 70.5 mn. This comes on the back of contributions from two new rigs from a recent contract award and higher utilization rates, it said. Revenues from Egypt’s operations grew 56.6% y-o-y to SAR 534.9 mn in 2023.

TASNEE-

National Industrialization Co. (Tasnee)’s net income fell 73.8% y-o-y to SAR 174.6 mn in 2023, while revenues decreased 8.1% y-o-y to SAR 3.6 bn over the same period, it said in a disclosure to Tadawul. The industrial company attributed the drop in its net income to lower sales and income share from investments in joint ventures. It said its revenues came in lower during the year due to average selling prices despite higher sales volumes of most of its products.

A look at Q4: On a quarterly basis, Tasnee turned to losses in Q4 2023 to SAR 17 mn from a net income of SAR 43.1 mn in the corresponding quarter a year earlier. Its revenues were up 1.9% y-o-y during the period to SAR 957.1 mn, according to data seen by Argaam.

SAPTCO-

Public bus operator Saptco trimmed net losses by 74.9% y-o-y to SAR 24.2 mn in 2023, while its revenues were up 19% y-o-y during the year to SAR 1.6 bn, it said in a disclosure to Tadaqwul yesterday. It attributed the decrease in losses during the period to higher revenues and an increase in financing income among others from an increase in operations in Ramadan and Hajj. On a quarterly basis, it lowered its losses by 23% y-o-y in Q4 2023 to SAR 71.9 mn, while its revenues were up 4.3% y-o-y to SAR 372.2 mn over the same period, according to data seen by Argaam.

ALSO- Saptco’s BoD approved setting up a training subsidiary that will be wholly owned by the company, according to a separate disclosure to Tadawul yesterday.

CLEAN LIFE-

Cleaning services provider Clean Life’s net income rose by 11.3% y-o-y to SAR 9.2 mn in 2023, while revenues rose 48.5% y-o-y to SAR 49.3 mn over the same period, it said in a disclosure to Tadawul. The rise in revenues came due to increases in sales capacity on the back of rising efficiency through automation and follow-up procedures. Its board of directors have proposed a dividend payout of SAR 30 mn at SAR 2 per share for 2H 2023, it said in a separate disclosure to Tadawul.

PIF wants to boost its investment in Bahrain. Plus: M&A, manufacturing and real estate

INVESTMENT WATCH-

The Public Investment Fund (PIF) has signed an MoU with Mumtalakat — Bahrain’s sovereign wealth fund — in a bid to boost the investments of the PIF and the Saudi private sector in Manama, according to a joint statement yesterday. No further information was provided. PIF launched a Saudi-Bahraini Investment Company last year with a capital of USD 5 bn.

M&A WATCH-

#1- Seera Group Holding offloaded 1.25 mn of its shares in Uber amounting in a SAR 380 mn transaction as part of the company’s drive to maximize returns for its shareholders, it said in a disclosure to Tadawul yesterday. The company has made a gain of SAR 164.6 mn from the transaction.The group’s ownership in Uber was a result of Uber’s acquisition of Careem in 2019 — Careem was part of Seera’s portfolio then.

Seera is a big player in the travel and tourism industry, holding car rental player Lumi, leading travel player Almosafer, and hotels in Jeddah, Riyadh, and Makkah.

#2- Ayyan Investment has hired Alinma Bank as a financial advisor for the sale ofAl-Ahsa Medical Services Companyto Dallah Healthcare Company, it said in a disclosure to Tadawul.

#3- Saudi Cable Company is planning to exit its Turkey investments to trim losses, it said in a disclosure to Tadawul. The decision is subject to regulatory approvals.

MANUFACTURING-

#1- Saudi Paper Manufacturing (SPM) has inked a SAR 300 mn non-binding agreement with Italian paper firm TOSCOTEC to procure a production line with a capacity of 60k tons annually to help boost its paper exports, Argaam reported yesterday. The funds will be channeled from SPM’s revenues and bank loans, it added. The new line will help bring the paper manufacturer’s total capacity to 250k tons annually.

#2- Saudia Technic signed a MoU with French defense electronics maker Thales to set up a regional hub in Saudi for the repair of avionics, it said in a post on X yesterday. It did not provide further details on the center. Saudia Technic is the aviation maintenance, repair, and overhaul (or “MRO, in industry-speak) subsidiary of national flag carrier Saudia Group.

ALSO- Saudia Technic inked a maintenance agreement with the PIF-owned The Helicopter Company (THC) to conduct aircraft maintenance checks (or as industry-speaks: “D checks”) of THC’s helicopter fleet, it said in a post on X.

REAL ESTATE-

The National Housing Company (NHC) and Egypt’s leading real estate developer Talaat Moustafa Group launched Riyadh’s new smart residential city Banan, state news agency SPA reported yesterday. The project will be home to over 27k residential units across a project area of 10mn sqm. 40% of the project area will be allocated for vast green spaces, with the development also including healthcare, education and sports facilities among others. The project’s investment cost is estimated at SAR 40 bn (c. USD 10.7 bn), TMG said last year.

Al-Ahsa Medical Services Company Alinma Bank ALSO ON OUR RADAR Ayyan Investment Company Bahrain Dallah Healthcare Company IPO Mbl Modern Building Leaders Mumtalakat Nomu Private Investment Company (PIF) Saudi Paper Manufacturing Saudi-Bahraini Investment Company Saudia Technic Taqat Mineral trading Thales Thc The Helicopter Company The Royal Commission of Riyadh Toscotec

9

PLANET FINANCE

BTC hits fresh all-time high before tumbling nearly 10%

BTC ends month-long rally with record-high price: The world’s largest cryptocurrency surged to a record high yesterday, driven by strong demand for new spot exchange-traded funds and the expectation that global interest rates will fall later this year, Reuters reports. BTC hit USD 69.2k — its highest level since its last peak of USD 69k in November 2021.

But nothing lasts forever, especially on the notoriously volatile BTC market: After surpassing its previous record yesterday at around midday CLT, the price of BTC tumbled by 9% as of midnight last night. Throughout the whole 24-hour period, the cryptocurrency fell 6.2%.

It’s been a good few months for BTC: The cryptocurrency has already jumped 47.8% since the beginning of the year and is up a whopping 181% since the same time last year.

MEANWHILE- Asian markets are in the red this morning, with CNBC noting that markets are “tracking Wall Street’s slide” in early trading as “Apple suppliers drop on declining iPhone sales in China.” Futures were mixed overnight, suggesting a soft open for Wall Street and Europe later today.

TASI	12,470	+0.3% (YTD: +4.2%)
MSCI Tadawul 30	1,586	-0.4 (YTD: +2.2%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6.5% repo	5.5% reverse repo
EGX30	30,669	+0.4% (YTD: +23.2%)
ADX	9,236	-0.5% (YTD: -3.6%)
DFM	4,246	-1.9% (YTD: +4.6%)
S&P 500	5,073	-1.1% (YTD: +6.1%)
FTSE 100	7,646	+0.1% (YTD: –1.1%)
Euro Stoxx 50	4,893	-0.4% (YTD: +8.2%)
Brent crude	USD 82.1	-0.88%
Natural gas (Nymex)	USD 1.96	+2.3%
Gold	USD 2,129	+0.7%
BTC	USD 63,372.71	-6.1% (YTD: +185.5%)

THE CLOSING BELL-

The TASI rose 0.3% yesterday on turnover of SAR 10.5 bn. The index is up 4.2% YTD.

In the green: Alyamamah Steel (+10%), Amiantit (+9.9%) and Sadr (+9.8%).

In the red: Albaha (-6.7%), Avalon Pharma (-5.4%) and Chubb (-3.1%).

Gaza remains a focal point on Saudi’s diplomatic agenda

Foreign Minister Prince Faisal bin Farhan discussed the latest developments in Gaza with his Iranian counterpart Hossein Amir Abdollahian on the sidelines of the extraordinary session of the Organization of Islamic Cooperation’s Council of Foreign Ministers, said the ministry on X. Meanwhile, Saudi Ambassador to the UN Abdulaziz AlWasil said the Kingdom will double down on UNRWA funding, despite unfounded allegations against the relief organization, according to a post on X.

CALENDAR

MARCH

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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