Diriyah awards USD 1.5 bn contract to China’s CHEC for Diriyah Arena

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WHAT WE’RE TRACKING TODAY

THIS MORNING: A commodities exchange in the works?

Good morning, everyone, and congratulations on making it to Thursday. It’s a calm morning here at the Kingdom, with updates on construction works of Diriyah’s Arena, a syndicated loan for PIF-backed Olam Agri, and the Kingdom attracting the most net foreign inflows among GCC stock markets in the second quarter.

THIS MORNING’S MUST READ- We’re launching our weekly My Morning Routine column, where we look at how a successful member of the community starts their day — while throwing in a couple of random business questions just for fun. In our first interview, we spoke to Osama Al Raee, CEO and co-founder of Lendo.

BUT FIRST- It’s a bit less calm elsewhere: Donald Trump rattled markets and sent the greenback down nearly 1% for a time yesterday as he stepped up his campaign against Federal Reserve chair Jay Powell. US media reported that the US president had earlier this week brandished a letter firing Powell and asked the lawmakers he was meeting with whether he should send it.

BACKGROUND- Trump has waged a blunt campaign against Powell for months now, pressuring him to cut interest rates and suggesting he’s open to firing Powell if the chairman doesn’t come to heel.

Where things stand now: “We’re not planning on doing anything,” Trump said overnight. “I don’t rule out anything, but I think it’s highly unlikely, unless he has to leave for fraud, and it’s possible there’s fraud.”

Wait, fraud? Powell? The guy’s a straight-shooter’s straight-shooter, but that hasn’t stopped Republicans from trying to trump-up (pun intended) charges against him. Trump’s winged monkeys are angling to use an over-budget, USD 2.5 bn project to renovate the Fed’s HQ against Powell.

WHY IT MATTERS- The news raised fresh doubts about whether the Fed would, under the next Trump-appointed Fed boss, continue to set monetary policy independent of political interference. It's not a stretch to say the independence of the Fed is one of the cornerstones of the global financial system. An independent Fed can make politically unpopular decisions — to, say, control inflation — without pressure from elected officials seeking short-term gains in popularity. Over the long term, an independent Fed is better able to deliver price stability and drive economic growth — that’s fundamentally what preserves confidence in both US financial markets and the greenback: global investors know that (today, at least) monetary policy is being set for economic reasons, not political ones. Go deeper with the Wall Street Journal here.

Can Trump really fire Powell? Maybe. A law on the books since 1913 gives the president the power to fire the Fed chairman, but only for “cause” — and what constitutes “cause” is largely undefined.

We’re going to cross the Rubicon one sooner or later: Powell’s term is up in May 2026.

Go deeper: The news is all over global front pages this morning, with each of the following outlets running multiple stories and explainers: Associated Press | Reuters | Bloomberg | Financial Times | Wall Street Journal.

HAPPENING TODAY-

#1- Naf for Feed is making its Nomu debut on Sunday: Shares of Naf Company for Feed for Industry will begin trading on the Nomu on Sunday, 20 July, the Saudi Exchange said. Shares will be subject to 30% daily and 10% static price fluctuation limits.

ICYMI- The animal feed production company is floating a 20% stake, or 400k shares, in a secondary offering on the Nomu parallel market. The three selling shareholders will rake in net proceeds from the sale, after some SAR 2.5 mn are used to cover IPO-related expenses.

ADVISORS- Team One is quarterbacking the transaction as financial advisor, with Derayah Financial acting as lead manager. RSM served as legal accountant. Receiving agents include Alistithmar Capital, Alinma Investment, SNB Capital, Albilad Capital and Al Rajhi Capital among others.

#2- Today is the last day to register for the nation’s first civil aviation challenge, Avithon. The virtual hackathon offers a prize pool of SAR 450k to participants who develop digital solutions for improving aviation sustainability, safety and security, and passenger experience.

WEATHER- Riyadh is expected to see a high of 45°C and a low of 31°C, while Jeddah’s mercury will go as high as 41°C and as low as 30°C. Makkah will see a 43°C and a 33°C low.

PSAs-

TuwaiqAcademy has launched the 3k Developers initiative in partnership with Google Cloud, according to a statement. The six-month program will run from July until the end of 2025, offering 14 bootcamps and professional programs focused on cloud computing and AI, state news agency SPA reports. The initiative is expected to graduate over 700 participants, with training held both in-person at the academy’s Riyadh headquarters and online, while Google Cloud-accrediated certifications will be received upon completion.

WATCH THIS SPACE-

#1- The Industry and Mineral Resources Ministry is working to establish a commodities exchange in Riyadh to reduce reliance on global market prices, Industry and Mineral Resources Vice Minister for Mining Affairs Khalid Al Mudaifer told Asharq on the sidelines of the Egypt Mining Forum 2025 in Cairo. The move aims to pave the way for local producers to get fair prices on the basis of domestic supply and demand, therefore creating a regulated market for buyers and sellers.

Not the first time we’re hearing of this: The Shura Council made a recommendation in May 2023 to the Capital Market Authority to conduct feasibility studies for an exchange.

#2- Family office shakeups go high-speed: Alexander Godwin has returned as chief investment strategist to Hasma Capital, the UK-based investment firm managing the Juffali family’s USD multi-bn portfolio, Bloomberg reports, citing UK registry filings.

This comes less than 18 months after Godwin left for a similar role at London-based Misland Capital, which manages wealth for the Peter Green family. His comeback follows the quiet departure of Hasma’s former CIO Jason Smith.

#3- The Saudi-French co-hosted two-state solution conference is expected to proceed without French President Emmanuel Macron, Reuters reported. France's Foreign Minister Jean-Noel Barrot confirmed that the agenda still includes post-war plans for Gaza and the recognition of a Palestinian state by France and others, but the absence of the French president lowers expectations for major announcements.

IN CONTEXT- France’s push for recognition has reportedly faced resistance from allies like the US, Britain, and Canada. Meanwhile, Israel has not ceased military operations in Gaza and its proposal to create a “humanitarian city” for displaced Palestinians faces criticism.

REMEMBER- The Saudi-French co-chaired UN conference on the two-state solution for Israel and Palestine has been rescheduled from mid-June following Israel’s military strikes on Iran.

#4- Nomu-listed WSM for Information Technology is teasing the idea of transferring to the main market, in a bid to keep up with the financing needs required for its fast-paced growth, Chairman Nowfal Al Salamah told Al Arabiya. The company is also considering tapping the debt market, Al Salamah added.

REMEMBER-To transition from Nomu to the main market, a company must have been listed on Nomu for at least two years and satisfy all main market listing conditions — except for market capitalization, where a lower threshold of an average SAR 200 mn over the past six months applies.

DATA POINTS-

#1- Consumer spending via point-of-sale (PoS) transactions in the Kingdom fell 8.2% w-o-w in the week ending 12 July, reaching around SAR 13.1 bn, according to the Saudi Central Bank’s weekly report (pdf). The number of weekly transactions also dipped 3% w-o-w to about 223.6 mn during the week.

The details: Restaurants and cafés made up the bulk of consumers’ spending during the week in terms of value, yet they declined 1.7% w-o-w to SAR 1.9 bn. Food and beverages came in second place, decreasing 13% w-o-w to just above SAR 1.8 bn. This was followed by gas stations spending, which edged down 12.6% w-o-w to nearly SAR 949 mn, clothing and footwear, which inched down 7.3% w-o-w to SAR 827.1 mn, and healthcare, which fell 7.6% to about SAR 805.1 mn.

Riyadh had the highest value of PoS transactions at about SAR 4.5 bn, followed by Jeddah at about SAR 1.9 bn.

#2- The Absher digital platform processed over 35.3 mn digital transactions in June, the Interior Ministry said in a press release. Individuals completed some 33 mn transactions, including 26.9 mn via digital wallets, while businesses conducted 2.3 mn.

#3- The General Authority for Food Security distributed SAR 457.6 mn to 1k farmers as a first installment in exchange for 258.5k tons of wheat this year, it said on X yesterday.

OIL WATCH-

Global oil demand will grow by a modest 700k bbl/d in 2025, reaching 104.4 mn bbl/d — its lowest rate since 2009 excluding the pandemic years, according to the International Energy Agency (IEA) monthly report. The forecast follows a softer-than-expected second quarter in 2025, where annual demand growth slowed to just 550k bbl/d, down from 1.1 mn in the first quarter. Demand is expected to jump by some 720k bbl/d in 2026.

Production rose by some 950k bbl/d m-o-m in June to hit 105.6 mn bbl/d, driven largely by increasing production from Saudi Arabia and other Opec+ producers. For the full year, world supply is expected to climb by 2.1 mn bbl/d, reaching 105.1 mn bbl/d. The trend is expected to persist into 2026, with another 1.3 mn bbl/d of growth projected—mostly from non-OPEC+ sources.

SPORTS-

#1- The Saudi Esports Federation unveiled the Prime League, a new pilot initiative with an SAR 800k prize pool, state news agency SPA reported yesterday. The league aims to level up amateur esports gaming in the kingdom and sharpen skills via competition.

The details: The pathway to victory unfolds in two stages, beginning with a 30-day open league where players are ranked by skill. The top players advance to a four-day major tournament to compete for prizes. Winners across 88 tournaments in 11 games also get a chance to qualify for the professional Saudi eLeague.

Featured games: The games include League of Legends, Valorant, PUBG Mobile, Call of Duty: Black Ops 6, Rocket League, Overwatch 2, Mobile Legends: Bang Bang, Marvel Rivals, Dota 2, Counter Strike 2, and EA FC25.

#2- Cristiano Ronaldo has won the Fans’ Player of the Season title for the 2024-25 Roshn Saudi League, after being voted Man of the Match 15 times, the League said on X yesterday.

ICYMI- Ronaldo signed a two-year contract extension with Al Nassr last month, keeping him at the Saudi club until 2027. He is reportedly set to earn USD 120-140 mn a year and will be prioritized for a stake in the club if that door ever opens.

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THE BIG STORY ABROAD-

Israel ramped up its bombing campaign in Syria yesterday, attacking the military headquarters in Damascus and hitting near the presidential palace in a major escalation. The attacks killed at least three people and injured more than 30.

The strikes came amid an intensification of violence in the southern city of Sweida in Syria between Druze militants, Bedouin groups, and Syrian security forces who were sent to quell the fighting.

The Syrian Interior Ministry announced a ceasefire later in the evening, while US Secretary of State Marc Rubio said in an X post that all parties have agreed on steps that will “bring this troubling and horrifying situation to an end tonight.” Syrian government forces were already moving out of Sweida last night. Several Arab countries later welcomed the news and condemned Israel's attacks on Damascus, including the UAE and Qatar.

The story is getting a lot of ink: Reuters | Bloomberg | Financial Times | Guardian | Wall Street Journal

Diriyah awards USD 1.5 bn contract to China’s CHEC for Diriyah Arena

Diriyah Company signed a SAR 5.8 bn (USD 1.5 bn) contract with China HarbourEngineering Company (CHEC), for the construction work on the Arena Block district in Diriyah, according to a press release.

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The details: The project includes the 20k-seat Diriyah Arena — set to host sports, concerts, esports, and other major events — along with three mixed-use office buildings and a 4k-vehicle parking lot.

Wide spaces: The arena will cover around 74k sqm and is designed by US-based architecture firm HKS Inc., blending modern design with Najdi heritage elements. The wider Arena Block will also feature 114k sqm of office space and a 4k-vehicle parking lot designed by London-based John McAslan + Partners.

IN CONTEXT- Diriyah awarded SAR 758.5 mn (USD 202.2 mn) contract to CHEC last December for bulk evacuation in the second phase of the Diriyah project, including preparation work for major cultural venues like the Diriyah Arena and the Royal Diriyah Opera House.

China Harbour isn’t new to Saudi: CHEC signed signed a SAR 700 mn agreement with Roshn in February to build an integrated high-end products pre-cast factory. Also, the Chinese-based developer began development work with our friends at Hassan Allam Construction Saudi at Port of Neom Container Terminal 1 last July.

Saudi exchange leads GCC net foreign buying in 2Q -Kamco

The UAE followed in a very close second place, with net foreign inflows in the Abu Dhabi exchange reached USD 1.33 bn. Kuwait logged USD 696.5 mn in inflows, while Dubai saw foreign investors scoop up USD 462 mn and Qatar came at USD 333.6 mn.

Not everyone saw love in 2Q: Foreign investors offloaded USD 29.6 mn in Omani equities — their second straight quarter of net selling in the market — and USD 27.9 mn in Bahraini stocks.

Foreign investors are pouring into GCC equity markets, marking the sixth consecutive quarter of net inflows. Net foreign buying across the region doubled q-o-1 to USD 4.2 bn in the second quarter, bringing the total for the first half of the year to USD 7 bn, a nearly 40% y-o-y jump from the USD 5 bn logged in 1H 2024, according to Kamco Invest’s tally.

UAE equities were the most attractive in 1H: Foreign investors were the biggest buyers of UAE equities in the first half, recording net purchases of USD 4.5 bn, followed by Saudi Arabia (USD 1.6 bn) and Kuwait (USD 1.4 bn). Foreigners were net sellers across Qatar, Oman, and Bahrain in 1H, collectively pulling USD 580.7 mn from those exchanges.

Momentum shifting in Saudi? Despite the healthy showing in 2Q, net foreign buying in Saudi stocks fell 37% y-o-y in the first half. Foreign purchases peaked in June, reaching SAR 3.64 bn.

Foreign appetite for GCC equities remains strong, but not evenly distributed. Market-specific reforms, IPOs, geopolitical issues, and economic health will determine whether the region can extend its six-quarter streak of foreign inflows through the rest of the year, the report reads.

Dubai Islamic Bank joins USD 1.9 bn syndicated loan for PIF-backed Olam Agri

Dubai Islamic x Olam Agri: Dubai Islamic Bank (DIB) joined a USD 1.9 bn dual-tranche syndicated facility to support general corporate purposes at PIF-backed and Singapore-based agribusiness Olam Agri, it said in a press release. The DFM-listed lender acted as a senior mandated lead arranger and investment agent for the facility’s USD 250 mn Islamic tranche. The loan carries a three-year tenor.

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Why it matters: The move marks DIB’s first financing with Olam Agri and adds to its growing portfolio of cross-border Islamic syndications. “This transaction is a clear reflection of the growing global demand for Islamic liquidity, not as an alternative, but as a core instrument for financing the real economy,” DIB’s chief of investment banking Ali Ahmed said.

About Olam: Olam Agri is 80% owned by the Saudi Agricultural and Livestock Investment Company, with Singapore’s Olam Group holding the balance. The company operates across grains, edible oils, rice, animal protein, and cotton, and handled over 45 mn metric tons in 2024.

Taking stock of the National Renewable Energy Program

Saudi Arabia’s National RenewableEnergy Program (NREP) aims to generate 50% of its electricity from renewables by decade’s end, under the kingdom’s Vision 2030 to diversify the energy mix. The program’s initial target of 9.5 GW of renewables by 2023 was later raised dramatically — by 2019, the target for 2030 expanded to 58.7 GW (40 GW of solar PV, 16 GW of wind, and 2.7 GW of concentrated solar power).

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Structure: The NREP, managed by the Energy Ministry’s Renewable Energy Project Development Office, uses a tender system to attract independent power producers. Developers bid to finance, build, and operate renewable plants, selling electricity via long-term power purchase agreements (PPAs) to the Saudi Power Procurement Company (SPPC) — the Principal Buyer. SPPC, a state-owned offtaker spun out of the Saudi Electricity Company, is responsible for conducting feasibility studies, tendering projects, and inking PPAs with winners.

How far did we go? The total installed renewable capacity in operation reached 6.5 GW by end-2024, according to figures from Gastat (pdf). This represents a huge jump from just a few years prior — for perspective, between 2012 and 2022 Saudi had only about 700 MW of renewables on the grid. In 2024 alone, five large solar projects came online, adding 3.75 GW of capacity in one year.

Total capacity and investments: Of the 6.5 GW commissioned, 6.1 GW is from solar PV across nine projects, and 400 MW is from wind (Domat Al-Jandal farm). The total investment in these projects is estimated at SAR 19.8 bn (c. USD 5.28 bn) as of end-2024. Solar projects account for the lion’s share at SAR 18.3 bn, with about SAR 1.6 bn invested in wind.

Competitive auctions have driven costs extremely low: Capital expenditures and financing have been optimized to yield one of the world’s lowest levelized cost of electricity (LCOE) for the Kingdom’s projects. By late 2024, the lowest PV bid was SAR 0.039/kWh (recorded by the 600 MW Shuaibah-1).. The wind farm’s LCOE, standing at SAR 0.08/kWh, is similarly very low by global standards.

SOUND SMART- The LCOE is the real cost for a developer to produce one kilowatt-hour of electricity over the life of a project. It covers the developer’s total cost to produce electricity — including capex, opex, and financing — over the plant’s lifetime energy output. On the other hand, the tariff is the price the developer agrees to sell the electricity at — usually to the SPPC under a long-term (20-25 years) PPA. The difference between the tariff and their LCOE is their net income margin.

Low tariffs aren’t necessarily bad news for developers — as long as they’re backed by rock bottom LCOEs. For developers, it is certainty, scale, low-risk, and secured cashflows for over 20 years. For the government, it means locking in cheap, unsubsidized electricity. For the energy system, it keeps inflationary pressure off power prices and frees up crude oil for export. (Check our deep dive into the kingdom's LFDP).

ICYMI- We have seen the largest single renewable procurement in Saudi recently: The SPPC inked development and power purchase agreements for seven solar and wind projects — five solar PV (12 GW) and two wind farms (3 GW) — valued at a combined SAR 31 bn (USD 8.3 bn), with a total capacity of 15 GW. All seven projects were won by a consortium led by Acwa Power, alongside PIF’s Badeel and Aramco Power, highlighting the role of local developers in the NREP.

Tariff figures were surprisingly low: All solar projects’ bids were at nearly SAR 0.05/kWh (c. USD 0.0126), among the cheapest solar electricity ever contracted. Wind energy bids stood at SAR 0.07-0.08/kWh.

BUT- Can the grid handle all the renewables? The grid was historically built to handle large centralized power plants (oil & gas) feeding load centers via high-voltage transmission and extensive distribution networks. With 6.5 GW of renewables on the grid as of, renewable penetration remains relatively low in percentage terms — providing only 5-10% of total generation on an annual basis. This modest share means few grid issues — for now, but Saudi also aims to include 50% share of natgas in its energy mix, further applying an asynchronous source for grid stability.

Alongside government-led procurements, we’ve seen moves to localize the renewable value chain: The PIF is ramping up the push to localize renewable manufacturing with three JVs under its wholly owned Renewable Energy Localization company, announced back in July. The first JV, with Envision Energy, will localize the assembly of wind turbines and blades with a planned 4 GW annual output. The second JV, with Chinese JinkoSolar, will produce PV cells and modules with a capacity of 10 GW of solar annually. The third JV, with TCL Zhonghuan’s subsidiary Lumetech, will localize ingots and wafers production, with 20 GW of annual production.

AND- We are also looking into trading some capacity later: The cabinet approved the general agreement to establish the Pan-Arab Electricity Market (PAEM), which will offer Riyadh a regional outlet for surplus capacity once operational. Check out our deep dive on the PAEM.

BYD mulls increasing EV and battery production capacity in the Kingdom

Chinese automaker BYD's plans to open seven new showrooms in the Kingdom by mid-2026 has caught the attention of CNBC (watch, runtime 05:47), with KraneShares Senior Investment Strategist Anthony Sassine highlighting the Kingdom’s EV market potential, supported by stronger ties between Saudi and China.

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Big plans for ٍSaudi: BYD opened three showrooms last year and aims to sell some 5-6k units in Saudi Arabia this year, while advancing the manufacturing of EVs and battery production capacity in the Kingdom, Sassine added.

Ripe for picking: Chinese companies are expanding to the GCC region and “trying to be first in this market” on the back of stronger bilateral relations and the rising number of high-net worth individuals, Sassine explained.

BUT- There are “a lot more reforms and policies” yet to be implemented by our government to reach the 30% EV-adoption goal set by 2030. For now, the focus is on developing infrastructure for localizing EV manufacturing in the Kingdom.

Yanbu kicks off wind turbines production on 1 August

MANUFACTURING-

Yanbu to start producing wind turbines: Al Yamamah Steel Industries finished building and started trial operations at its new wind power systems factory in Yanbu Industrial City, according to a disclosure to Tadawul. Commercial production is expected to begin on 1 August, and the financial impact will reflect in the company’s 3Q 2025 earnings.

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REFRESHER- The Local Content and Government Procurement Authority signed agreements with Al Yamamah Steel Industries and the Arabian International Company for Steel Structure last October to localize the manufacturing of steel wind turbine towers.

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SPACE-

To space and back: Ten scientific microgravity experiments by Saudi and MENA students are safely back to Earth after their successful testing on board of the International Space Station (ISS), the Saudi Space Agency (SSA) said in a statement on Tuesday.

The experiments were selected at the Madak Space competition, organized by the Mohammed bin Salman Foundation (Misk) and the Ilmi Center for Science Discovery and Innovation, aiming to empower the next generation of Arab space researchers. The experiments were concluded by US Astronaut Peggy Whitson under direct supervision of Saudi astronaut Rayyanah Barnawi and the SSA.

US Inflation accelerates to 2.7% in June, analysts point to tariffs

Headline US inflation climbed to 2.7% y-o-y in June, slightly exceeding the 2.6% forecast by analysts surveyed by Bloomberg. The jump suggests that US tariffs are starting to leave their mark on the consumer price index (CPI). Meanwhile, core CPI was up 2.9% y-o-y.

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Tariffs are getting all the blame. Prices for goods exposed to tariffs — including toys and appliances — rose at the fastest rates seen in years, according to the Bureau of Labor Statistics. Tariff impact is still modest, as businesses have likely absorbed a large portion of the costs so far, Cornell University Economics Professor Eswar Prasad told the Financial Times. This will likely change if Trump moves ahead with additional tariff threats, leading to higher costs passed to customers, Prasad says.

Global impact? Trump’s tariffs may impact consumers beyond the US market, as global brands are considering spreading costs across markets, Proxima Executive VP Simon Geale told the FT. Smart sourcing and cost savings strategies may not be enough to soften the impact of tariffs on US consumers if prices rise beyond 5%, Geale added.

Most trading partners opted for negotiating their way around the problem, with only China and Canada opting for retaliatory tariffs. Meanwhile, the EU steered clear from open confrontation with Trump, welcoming a backchannel opened by US Treasury Secretary Bessent, as well as adding military support for Ukraine to ongoing negotiations.

BUT- Appeasing can be a slippery slope: The EU Trade Commissioner cautioned that a 30% US tariff could halt transatlantic trade, leaving the bloc with “nothing to lose” and likely provoking retaliation. This creates a difficult strategic choice, as avoiding retaliation in the short term may lead to ceding long-term dominance of global supply chains to the US, head of global economy at Chatham House Creon Butler said.

US coffers are swelling in the meanwhile: Customs revenues soared to a record USD 64 bn in 2Q 2025, funneling an additional USD 47 bn into the US treasury compared to the same period last year.

MARKETS THIS MORNING-

Asian markets are mostly in the red this morning, led by Japan’s Nikkei inching down 0.3% after trade figures showed Japanese exports fell for the second month straight. Wall Street futures are also indicating a lower opening ahead.

TASI	11,039	-0.5% (YTD: -8.3%)
MSCI Tadawul 30	1,415	-0.4% (YTD: -6.2%)
NomuC	27,345	+0.2% (YTD: -13.1%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	33,474	-1.4% (YTD: +12.6%)
ADX	10,176	+0.3% (YTD: +8.0%)
DFM	5,974	+1.0% (YTD: +15.8%)
S&P 500	6,264	+0.3% (YTD: +6.5%)
FTSE 100	8,927	-0.1% (YTD: +9.2%)
Euro Stoxx 50	5,298	-1.1% (YTD: ؤ%)
Brent crude	USD 68.68	0.0%
Natural gas (Nymex)	USD 3.56	+1.1%
Gold	USD 3,355	+0.6%
BTC	USD 119,974	+2.1% (YTD: +28.3%)
Sukuk/bond market index	912.27	-0.2% (YTD: +1.1%)
S&P MENA Bond & Sukuk	145.49	-0.1% (YTD: +4.0%)
VIX (Volatility Index)	17.16	-1.3% (YTD: -1.1%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.5% yesterday on turnover of SAR 4.0 bn. The index is down 8.3% YTD.

In the green: SHL (+4.8%), Cenomi Centers (+4.2%) and Mutakamela (+3.7%).

In the red: Emaar EC (-3.6%), Ardco (-3.3%) and Alistithmar Reit (-3.3%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.2% yesterday on turnover of SAR 21.0 mn. The index is down 13.1% YTD.

In the green: Riyadh Steel (+10.5%), Alhasoob (+9.4%) and Leen Alkhair (+8.7%).

In the red: Mulkia (-8.4%), Tam Development (-5.4%) and NBM (-5.0%).

CORPORATE ACTIONS-

Mulkia Investment will boost its capital by 20% to SAR 78 mn via a bonus share issuance, it said in a disclosure to Tadawul. The SAR 13 mn capital increase will be funded with retained earnings, issuing to shareholders one bonus share for every five shares held at a date yet to be determined. The raised capital is earmarked for shoring up the company’s financial position, supporting growth plans, and boosting shareholder returns.

Osama Al Raee, CEO and co-founder of Lendo

Osama Al Raee, CEO and co-founder, Lendo: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. We spoke to CEO and co-founder of Lendo, Osama Al Raee — fresh off a USD 690 mn facility with JP Morgan back in February. Edited excerpts from our conversation:

My name is Osama Al Raee. I come from a consulting background — and a few other places — with north of seven years of experience in management consulting. After graduating Duke University, I worked at Strategy& (back when it was Booz & Company) and then at McKinsey, where my main focus was on strategy projects across telecom, tech, and media. I also had a stint at Misk Foundation as executive manager of entrepreneurship and innovation. My focus there was on building the startup ecosystem in the country — driving innovation from both a public policy angle and through programs, training, education, and talent development.

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Consulting taught me a lot, but left a few scars. Long hours, heavy travel, high pressure — it was great for learning, but tough on everything else. I missed weddings, funerals, and family time. It left me with this feeling that if I’m not doing something, I’m wasting time. That’s when I started working on startups on the side. I needed something to fill the time after 5pm.

I helped build up the sandbox, and now I’m playing in it. When I first joined Misk in 2017, I told my manager at the time that I hope to do such a good job that, one day, the role itself wouldn’t need to exist. The goal was to help ignite the startup ecosystem so that it would continue growing on its own. By 2019, I felt we were approaching that moment, and that is when I realized that it might be time to jump to the other side and become a founder myself. In a way, it was a test of the very system I’d helped build.

This is where Lendo was born. Lendo is a Sharia-compliant debt crowdfunding platform focused on SME financing. We connect SMEs that need liquidity — often because they’re waiting on large receivables — with individual and institutional investors who can fund those invoices. We started with a crowdfunding model, where any Saudi citizen or resident could invest, and over time expanded to include family offices, global banks, and sometimes our own balance sheet.

The idea for Lendo came from real pain on both sides of the equation. Mohammed Jaber, my co-founder and our COO, had worked at a company building apps for governments and big corporates. The business was financially sound, but they sometimes couldn’t make payroll because of delayed payments. They had mns in receivables, but were always chasing liquidity — and it got so bad that the shareholders eventually shut down the company.

I saw the same issue from the buyer's side when I was at Misk. As we scaled from 10 people to more than 380, the invoice payment process went from five days to some four months as the required approvals and regulatory bottlenecks multiplied. We both saw the same problem from different angles — and decided to solve it.

The JP Morgan facility wasn’t part of the original plan, but it changed everything. We were looking for new capital sources and talked to several UK funds — and from there, started conversations with banks. JP Morgan understood fintech. What they didn’t understand, at first, was Saudi Arabia — the regulation, the market. So it took time. The original plan was USD 150 mn. Eventually, they offered USD 690 mn. It wasn’t part of the original vision, but it accelerated everything.

The SME financing gap in Saudi was — and still is — massive. In 2018, SME lending made up just 4% of total financing in the Kingdom, or about SAR 100 bn. Vision 2030 set a target of 20% — translating to SAR 600-700 bn. Mohamed and I saw a clear opportunity there. We weren't just building a fintech platform — we were trying to help solve a national-scale liquidity challenge for small and medium-sized enterprises.

At Lendo, I focus on the demand side, risk and governance. Lendo is a marketplace, so we have the typical supply and demand structure — represented in those that are willing to lend and in SMEs in need of financing. My role sits on the governance, risk and compliance side, with my day split across those areas — replying to emails, external meetings as well as board and regulatory management. That's where I spend a lot of my time.

I typically arrive at the office around 10-10:30 am — mainly to sidestep Riyadh's infamous morning traffic. My workday extends until about 8-8:30 pm, with the initial hours dedicated to clearing emails and outlining key tasks for the day. From noon onward, my schedule is filled with meetings — both internal discussions with teams and external engagements with clients. As the evening approaches and the office quiets down, I seize the opportunity to address any pending tasks before heading home.

I schedule my fun — or it doesn’t happen. After long days, I usually decompress with some TV or video games. Tuesdays are for one of my favorite weekly rituals: a regular shisha session with a group of fellow founders, which also couples as founder therapy. No business talk, just honest conversations and smoke.

One non-negotiable: dinner with the family. No matter what my wife or I have planned in the evening, we always make sure to have dinner together first. On Fridays, all the siblings gather at my parents’ house after Juma’a prayers and have lunch together, then hang out for a few hours. In the evening, it’s board games with my college friends. We’ve been doing it every Friday for the past 15 years. Zero startup talk — full mental reset.

One thing I’ve learned over time is when to aim for perfection, and when "good enough" is just fine. I used to be hyper-detailed — it came with the strategy consulting mindset. But in a startup, you can’t treat everything like a McKinsey deck. My co-founder is more pragmatic, and I’ve picked that up from him over the years.

When I do find downtime, I read. I’ve always enjoyed understanding how economies work — both at the macro and micro levels — and I follow policy developments closely, especially in Saudi. I used to read more science fiction, but these days I spend more time thinking about how AI will shape different sectors in five or ten years. Sometimes I’ll pick a random industry and imagine what it looks like in a fully AI-powered world. It’s a good mental exercise — and honestly, more fun than it sounds.

If I had to give one piece of advice to a first-time founder, it would be to hire the right people — and do it early. Everyone says it, but you don’t fully understand the impact until you see what exceptional talent can do for your business. The right people bring exponential returns.

CALENDAR

JULY

8 July-24 August (Monday-Sunday): Esports World Cup, Riyadh.

17 July (Thursday): Deadline to register for the Kingdom’s first civil aviation hackathon

Avithon.

20 July (Sunday): Real Estate Brokerage Forum, Riyadh International Convention and Exhibition Center, Riyadh.

29-30 July (Tuesday-Wednesday): US Federal Reserve Open Market Committee meeting.

31 July (Thursday): Deadline for companies with SAR 2.5 mn or more in 2022/2023 revenues to integrate e-invoicing solutions with Fatoora.

AUGUST

7 July-24 August (Monday-Sunday): Esports World Cup, Riyadh.

5-17 August (Tuesday-Sunday): 2025 Fiba Asia Cup, Jeddah.

3Q 2025

The National Water Company is expected to award a construction contract for the Hail Region Water Networks project.

SEPTEMBER

3-4 September (Wednesday-Thursday): Sustainable Maritime Industry Conference (SMIC), Ritz-Cartlon, Jeddah.

15-17 September (Monday-Wednesday): Money 20/20 Middle East, Riyadh.

17-18 September (Wednesday-Thursday): US Federal Reserve Open Market Committee meeting and Summary of Economic Projections.

23 September (Tuesday): Saudi National Day.

OCTOBER

1 October (Wednesday): Electronic salary transfer via the Musaned platform to include employers with two or more domestic workers.

1-3 October (Wednesday-Friday): Saudi Green Building Forum, Riyadh.

7-8 October (Tuesday-Wednesday): Global EV & Mobility Technology (GEMTECH) Forum, Riyadh.

15 October (Wednesday): Russian-Arab Summit.

17 October (Friday): Saudization for private healthcare roles enters its second phase.

22-23 October (Wednesday-Thursday): Private Capital Forum, Riyadh.

27-30 October (Monday-Thursday): Global Health Exhibition, Riyadh Exhibition and Convention Center, Riyadh.

28-30 October (Tuesday-Thursday): Future Investment Initiative (FII9), King Abdulaziz International Conference Center (KAICC) and the Ritz-Carlton, Riyadh.

28-29 October (Tuesday-Wednesday): US Federal Reserve Open Market Committee meeting.

NOVEMBER

3-9 November (Monday- Sunday): WTA Tour Finals, Riyadh.

11-13 November (Tuesday-Thursday): TouriseSummit, Riyadh.

17-20 November (Monday-Thursday): Cityscape Global, Riyadh Exhibition and Convention Centre, Riyadh.

22 November (Saturday): The Ring IV, ANB arena, Riyadh.

23-26 November (Sunday-Wednesday): Saudi Food Exhibition and Conference, Riyadh.

24-26 November (Monday-Wednesday): The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh.

24-26 November (Monday-Wednesday): Metropolis Madinah Conference for civilizational capitals, King Salman International Convention Centre (KSICC), Al Madinah.

27-30 November (Thursday-Sunday): World Rally Championship Saudi Arabia 2025, Jeddah.

28-30 November (Friday-Sunday): UIM F1H2O World Championship, Jeddah.

30 November (Sunday): Zatca 21st E-invoicing integration wave deadline.

DECEMBER

1-4 December (Monday-Thursday): International Conference on Nuclear and Radiological Emergencies, Riyadh.

1-4 December (Monday-Thursday): 61st ISOCARP World Planning Congress, Riyadh.

9-10 December (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.

25-27 December (Saturday-Monday): The Fortune Global Forum 2025, Riyadh.

31 December (Wednesday): Zatca 22nd E-invoicing integration wave deadline.

31 December (Wednesday): Cancellation of Fines and Exemption of Financial Penalties Initiative by the Zakat, Tax and Customs Authority (Zatca) deadline.

December: Made in Saudi exhibition, Riyadh International Convention and Exhibition Center, Riyadh

2026

JANUARY

1 January (Thursday): Electronic salary transfer via the Musaned platform becomes mandatory for all domestic workers in the Kingdom.

13-15 January (Tuesday-Thursday): Future Minerals Forum, King Abdul Aziz International Conference Center, Riyadh.

20 January (Tuesday): SuperReturn Saudi Arabia, Hotel Fairmont, Riyadh.

18-21 January (Sunday-Wednesday): Saudi Hospital Design and Build Expo, Riyadh.

26-27 (Monday-Tuesday): GPRC Summit, Riyadh.

26-28 (Monday-Wednesday): Saudi Franchise Expo (SFE), Riyadh Exhibition and Convention Centre, Riyadh.

26-28 (Monday-Wednesday): Real Estate Future Forum, Four Seasons Hotel, Riyadh.

27-28 (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh.

28 (Wednesday): Data Center Nation Riyadh, Riyadh.

28-30 (Wednesday-Friday): Jeddah International Travel and Tourism Exhibition (JTTX), Jeddah.

FEBRUARY

2-4 (Monday-Wednesday): Saudi Media Forum, Riyadh.

2-4 (Monday-Wednesday): Women Leaders Summit and Awards KSA, Riyadh.

3-4 (Tuesday-Wednesday): RLC Global Forum Annual Meeting, Riyadh.

8-12 February (Sunday-Thursday): World Defense Show, Riyadh.

11 (Wednesday) Digital Transformation Summit Saudi Arabia (DTS), Riyadh.

11-14 (Wednesday-Saturday): JeddaDerm, Jeddah.

13-14 February (Friday-Saturday): Jeddah E-Prix 2026, Jeddah.

MARCH

31 March (Tuesday): Zatca’s 23rd E-invoicing integration wave deadline.

APRIL

27-29 April (Monday-Wednesday): Aluminum Arabia, The Arena, Riyadh.

OCTOBER

26-29 October (Monday-Thursday): World Energy Congress, Riyadh.

Signposted to happen sometime in 2026:

UN Trade and Development Global Supply Chain Forum to 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.

Signposted to happen sometime in 2Q 2027:

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

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