EFG Hermes-backed Spark Education acquires majority stake in Qimam El Hayat Int’l School

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: Neom’s The Line will begin vertical construction by year-end

Good morning, ladies and gents. We’re rounding out the week with a bang, as the Fed leaves interest rates unchanged, sparking a standoff with President Trump. On the home front, EFG Hermes-backed Spark Education Platform snapped up a stake in Riyadh’s Qimam El Hayat Int’l School, while Jazan unveiled SAR 4.7 bn infrastructure projects.

PLUS: Tadawul published its Quarterly report on debt markets, and a flurry of Saudi banks are out with their 2024 earnings. Let’s dive in.

IN MEMORIAM-

EnterpriseAM KSA extends its heartfelt condolences to the family of Prince Mohammed bin Fahd bin Abdulaziz, the late former governor of the Eastern Province. Prince Mohammed played a pivotal role in the region’s development, driving growth in manufacturing, tourism, and infrastructure, as well as the expansion of export hubs to some of the Gulf’s largest ports.

HAPPENING TODAY-

The Global Labor Market Conference is on its second and final day at the King Abdulaziz International Conference Center in Riyadh. The event brings together business leaders, policymakers, regulators, and researchers to mull prospects and address challenges facing the global labor markets, with a focus on youth employment and their participation in the global economy.

WEATHER- Riyadh is expected to see a high of 21°C and a low of 12°C today, while Jeddah’s mercury will go as high as 31°C and as low as 19°C. Makkah will see a 32°C high and 19°C low.

WATCH THIS SPACE-

#1- US Middle East envoy Steve Witkoff visited Saudi Arabia on Tuesday to meet Crown Prince Mohammed bin Salman and Senior Advisor to the Palestinian president Hussein Al-Sheikh to discuss peace efforts in the region, Axios reports, citing two people it says are familiar with the matter. Witkoff headed to Israel after, visiting Gaza and inspecting the Netzarim corridor, before sitting with Israel’s Prime Minister Benjamin Netanyahu “alone for more than two hours,” Reuters reported.

BACKGROUND- Witkoff’s visits to the region come as talks for a normalization of ties between the Kingdom and Israel are nearing a “breakthrough,” Israel’s ambassador to the US claimed recently. Efforts led by the Biden administration last year to secure the agreement — which was originally designed to include a defense pact and cooperation on nuclear technology and AI — fell through due to the outbreak of the war in Gaza. The Kingdom has publicly insisted on assurances for a credible path to Palestinian statehood before normalizing ties with Israel.

#2- Neom’s The Line will begin vertical construction by year-end, Saudi Gazette quotes Neom Chief Development Officer Denis Hickey as saying at Davos. Infrastructure development is already underway for the project’s 20 mn sqm first phase. Designed to accommodate 9 mn residents in a high-density, car-free environment, the city spans 170 km in length and 1.2 km in width.

The Line faced some hurdles: Neom’s flagship project — which is projected to cost anywhere between USD 100-200 bn — is now expected to be home to fewer than 300k people by the end of 2030, down from an initial forecast of 1.5 mn residents, due to a slowdown in construction, according to unconfirmed media reports last April. Only 2.4 km of the project are expected to be completed by the end of the decade.

#3- The Kingdom has launched a heritage project tracing Prophet Mohammad’s migration path, General Entertainment Authority Chair Turki Al Alshiekh said in a post on X. In the Prophet’s Steps will recreate the migration route from Makkah to Madinah, spanning 470 km with 41 restored landmarks, interactive stations, and a Migration Museum. With eight educational stops, 30 dining areas, and 50 shops, it will host up to 12k visitors daily. The six-month initiative begins in November.

#4- The government plans to extend the deadline for receiving applications from proptech firms that want to join the experimental regulatory environment by two months, Spokesperson for the Real Estate General Authority Tayseer Al-Mufarrej told Aleqtisadiyah. The Kingdom eyes raising the number of proptech companies it houses to 1.5k over the next five years, up from 270 firms currently, Al-Mufarrej revealed.

#5- Riyadh-based Alshehili’s shares climbed 6.9% on their first day of trading on Nomu yesterday, closing at SAR 85.5 apiece, up from their IPO price of SAR 80. The heavy equipment manufacturer raised some SAR 40 mn in IPO proceeds, with the final pricing giving it a market cap of SAR 200 mn at listing.

REFRESHER- Alshehili took a 20% stake (500k shares) to market, pricing its Nomu IPO at the top of the range it was guiding on. Net proceeds from the sale will go towards funding Alshehili’s expansion and marketing efforts, as well as supporting the company’s working capital, including automating cooler box production and equipment procurement.

#6- Al-Khobar-based Twareat Medical Center’s (TMC) stock also rose 30% — the maximum price fluctuation limit allowed — on its trading debut on Nomu yesterday, settling at SAR 15.6 apiece, after opening at SAR 12. The medical equipment supplier sold an undisclosed amount of shares on Tadawul’s parallel market in a direct listing to meet liquidity requirements.

Background: The company previously sold a 7.45% stake (2.98 mn shares) in a private offering last year, with 55 new shareholders buying in.

PSAs-

Some 12 ready-built factories in Jeddah’s First Industrial City are now up for grabs via Modon’s new early booking service, Modon said in a post on X. Applications can be submitted here. Modon rolled out the early booking service earlier this week.

FACT CHECK-

No need to stockpile cigarettes or vapes: The Kingdom has no intention to ban smoking products, even as global restrictions tighten, Saudi Gazette reports, citing Saudi Food and Drug Authority CEO Hisham Al Jadhey.

OIL WATCH-

Opec+ plans discussions to address Trump’s oil policies: Saudi Arabia will join Opec+ in a coming meeting to discuss US President Donald Trump’s push to increase US oil production and form a joint response, Reuters reports, citing Kazakhstan’s Energy Minister. Trump has called for speeding up permits and easing environmental rules to boost US production, while also urging Opec+ to lower oil prices.

Opec+ has been facing growing pressure from Trump, who has recurrently criticized the group’s policies and called for lower oil prices, Bloomberg highlighted in an opinion piece. With the oil group planning to start increasing oil output in April, it faces the challenge of balancing supply and demand while navigating Trump’s demands and global economic factors. Trump would consider a price range of USD 60-70 per barrel to be an acceptable target, down from the current level hovering around USD 78, the article estimates.

SPORTS-

#1- Saudi Arabia is reportedly preparing to offer a five-year, EUR 1 bn contract to sign Real Madrid’s Vinicius Jr. in the summer transfer window, according to AS. In addition to the EUR 200 mn per season package, Saudi Arabia would pay an additional EUR 300 mn transfer fee to Madrid, surpassing the current transfer record held by Neymar’s EUR 222 mn move to PSG. The EUR 1 bn contract would make Vinicius one of the highest-paid athletes globally.

It’s been tried before: The PIF attempted a similar bid for Vinicius last year, which was rejected. Madrid is likely to again insist on his release clause of EUR 1 bn, while also offering a contract extension beyond 2027 and a salary increase to retain him.

#2- Al Nassr has yet to make a decision on whether to pursue Bayer Leverkusen’s Victor Boniface or Aston Villa’s Jhon Duran as they seek to sign a new striker, The Athletic reports. The club has a verbal agreement for Boniface, but the agreement is not finalized. Meanwhile, the option to add Duran has been on the table. Boniface was left out of Leverkusen training as talks continue, and Villa could reportedly part ways with Duran for around GBP 80 mn.

***You’re reading EnterpriseAM Saudi, your essential daily roundup of business, economics, and must-read news about Saudi, delivered straight to your inbox. We’re out Sunday through Thursday by 7am Riyadh time.

EnterpriseAM Saudi is available without charge thanks to the generous support of our friends at Tas’heel.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on saudi@enterpriseAM.com.

DID YOU KNOW that we also cover Egypt, the UAE, the MENA logistics and climate industries?

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM Saudi delivered every weekday.
***

THE BIG STORY ABROAD-

AI is on everyone’s minds this morning after Meta and Microsoft reported their earnings for 2024, and as the DeepSeek craze continues.

#1- Meta’s shares rebounded on CEO Mark Zuckerberg’s comments that Meta AI will become the most widely used AI in the industry this year, despite the company giving a disappointing sales forecast that had weighed on the stock earlier. The question now is again whether the company’s AI investments will pay off — especially after Chinese AI startup DeepSeek proved it is possible to create an AI model with a fraction of the cost. (Bloomberg | CNBC)

Speaking of DeepSeek, OpenAI said it has found evidence that the Chinese AI startup used its proprietary models to train its own large-language model, according to the Financial Times. Meanwhile, US President Donald Trump is looking at ways to further curb chip exports from Nvidia to China, Bloomberg reports.

#2- Microsoft’s shares tumbled 5% in afterhours trading after the tech giant reported slower growth than expected for its cloud business, despite the company beating revenue estimates. (Wall Street Journal | Barron’s)

In other earnings news, Tesla’s shares also rebounded on an optimistic forecast for growth in 2025, despite missing estimates for the fourth quarter of 2024. (Bloomberg | CNN)

OVER IN THE US, the White House revoked its freeze of federal aid due to legal challenges, though the administration still plans to cut spending to programs opposed by Trump. (Reuters)

AND IN SYRIA- The Syrian rebel group that ousted Bashar al Assad named its leader Ahmed Al Sharaa as the country’s new president for a transitional period, after the group dissolved the parliament, the military, and constitution. (Bloomberg | New York Times | AP)

ALSO- Former US Senator Bob Menendez was sentenced to 11 years in prison after being found guilty in a corruption case that saw him act as a foreign agent for Egypt. (FT)

CIRCLE YOUR CALENDAR-

Small and medium enterprises regulator Monsha’at will host the sixth stop of its Franchise Tour between 3-4 February at the University of Tabuk, according to a statement. This is one of the stops of the larger tour which kicked off in Khobar back in August and is set to have 14 stops in total, featuring companies that want to drum up interest in their franchises.

EFG Hermes-backed Spark Education Platform acquires majority stake in Riyadh’s Qimam El Hayat Int’l School

SEP now holds a majority stake in Qimam El Hayat: EFG Hermes-backed K-12 operator Spark Education Platform (SEP) inked definitive agreements to acquire a majority stake in Riyadh’s Qimam El Hayat International School, it said in a press release (pdf). The size of the stake and the value of the transaction were not disclosed.

The rationale: “This move, coupled with our recently announced acquisition of 4 additional schools in Riyadh, positions SEP as a major player in the Saudi education sector,” SEP CEO Ahmed Wahby said. The transaction will increase SEP’s portfolio to 8 schools “with over 10k enrolled students spreading across KSA, UAE, and Bahrain,” he added.

REFRESHER- SEP is backed by the USD 300 mn Saudi Education Fund (SEF), launched launched in November 2024 by EFG Hermes to address the rising demand for private education, driven by a rapidly expanding student population expected to more than double under Saudi Arabia’s Vision 2030. SEF plans to deploy its capital over the next three years, with a primary focus on the Kingdom, alongside its ventures in the UAE and Bahrain. The fund has previously acquired seven schools under the Britus Education brand, four of which are in the Kingdom.

What’s next? The move includes relocating the school to a new fit-for-purpose campus, and boosting the K-12 institution’s student-capacity by 50% to 4.5k. Two new buildings are to be launched, adding a capacity of 1.5k additional students.

Jazan unveils SAR 4.7 bn water, agriculture, and environmental projects

Jazan gets a flurry of new projects: Jazan inaugurated and broke ground on a total of 73 environmental, water, and agricultural projects worth more than a combined SAR 4.7 bn, state news agency SPA reports. The projects include 27 completed projects costing over SAR 2 bn and another 46 new projects valued at a combined SAR 2.7 bn.

The Saudi Water Authority launched two water projects worth SAR 1.3 bn, including the upgrade of Al-Shaqiq 1 Station and enhanced security at the Al-Shaqiq desalination plant, along with water transmission systems. Additionally, the National Water Company rolled out 20 projects valued at SAR 607 mn, featuring 10 water infrastructure initiatives costing SAR 238 mn, such as raw water intake at Jazan Valley Dam and network expansions.

A sewage revamp: Jazan launched sewage projects worth SAR 369 mn, the expansion of Jazan City’s 44k cubic meter/day treatment plant, new networks in Abu Arish and Farasan, and pumping station upgrades.

Environmental and agricultural projects: The National Center for Vegetation Cover completed SAR 48 mn in projects, including mangrove cultivation and afforestation. The Environment, Water, and Agriculture Ministry delivered projects valued at SAR 3 mn, including an insect breeding lab, a pesticide lab, and a chemical agriculture lab.

Projects in the works: Among the 46 new projects, key investments include SAR 1.2 bn for three Saudi Water Authority projects, SAR 1.5 bn for 19 National Water Company projects, and additional funding for irrigation, rural development, vegetation cover, and agriculture.

Saudi Arabia’s 2024 contract awards reach record high of USD 146.8 bn

Saudi contract awards in 2024 beat previous record: Saudi Arabia’s contract awards in 2024 reached USD 146.8 bn, overtaking 2023’s record of USD 118.7 bn, according to Kamco Invest’s GCC Projects Market Update (pdf). The Kingdom accounted for over 53.8% of total GCC project awards throughout 2024, the report says.

On a quarterly basis: In 4Q 2024, Saudi saw a 16.3% q-o-q increase in contracts, totaling USD 40.4 bn while GCC project awards hit USD 74.8 bn, the highest quarterly total in six years.

Power and gas driving growth: The power sector saw the most significant growth in project awards, which more than doubled to USD 55.0 bn in 2024, while the gas sector’s project awards nearly doubled to USD 19.1 bn. In the renewables space, Saudi Arabia secured 25 projects generating 23 GW of electricity. However, the construction sector experienced a 10.6% decline, falling to USD 28.4 bn in total awards.

Saudi Arabia accounted for seven of the 10 largest GCC projects, including the USD 4.7 bn Neom Trojena Valley Cluster Dam project. Other significant contracts last year included the USD 3.7 bn High Voltage Direct Current (HVDC) transmission line project and the USD 3.2 bn first package of Saudi Aramco’s USD 7.7 bn Fadhili Gas Plant expansion, which will increase its processing capacity from 2.5 bn to 4 bn cubic feet per day, alongside the National Housing Company’s USD 3 bn housing project.

The regional angle: The total value of contracts awarded in the GCC reached USD 273.2 bn in 2024, marking a 9.6% increase from USD 249.4 bn in 2023. Growth was primarily driven by projects in Saudi and the UAE, with the power and oil sectors leading the way, recording USD 67 bn and USD 29.7 bn in awards, respectively.

Good tidings ahead: The outlook for contract awards across the GCC in 2025 is promising, the report says, with over USD 120 bn in projects already in the bid evaluation stage.The Saudi construction and power sectors, particularly those involving Neom’s gigaprojects, are expected to drive continued growth.

Saudi debt market grows in value despite drop in trading activity in 4Q 2024

The total value of Saudi-listed sukuk and bond issuances rose 15% y-o-y to SAR 633.5 bn in 4Q 2024, despite the volume declining 7% y-o-y in the quarter to 65 issuances, according to Tadawul’s Quarterly Debt Market Report (pdf). The total traded value on Tadawul’s sukuk and bonds index dropped 29.6% y-o-y to SAR 3.3 bn in 4Q 2024, while the number of transactions fell 19.6% to 10.3k.

Government debt dominates: Listed government sukuk and bonds accounted for 97.4% of total issuances in 4Q 2024, amounting to nearly SAR 617 bn. Corporate sukuk and bonds made up the remaining 2.6% (SAR 16.5 bn).

Ownership breakdown: Saudi investors held SAR 624.9 bn in debt instruments, representing 98.6% of total ownership. Foreign investors owned 1.1% (SAR 6.6 bn), while GCC investors held 0.3% (SAR 2 bn).

The listed sukuk and bonds-to-GDP ratio stood at 15.6% during the quarter, up from 13.8% in 4Q 2023. The ratio fell on a quarterly basis, however, declining 17.6% from 3Q 2024.

SNB, Al Rajhi, Alinma, BSF, SAIB, Bupa Arabia report 2024 earnings

Earnings season begins in earnest: We have a handful of earnings this morning, with the Kingdom’s banks leading the pack as the Saudi National Bank, Al Rajhi Bank, Alinma Bank, and Banque Saudi Fransi — along with Bupa Arabia — all report their financials.

SAUDI NATIONAL BANK-

Saudi National Bank (SNB)’s net income grew 5.9% y-o-y to SAR 21.2 bn in 2024, on the back of a 4.2% increase in total operating income to SAR 36 bn, it said in a disclosure to Tadawul. SNB’s total income from financing rose 16.3% y-o-y in the same period to SAR 44.8 bn, while total income from investments increased 14.9% y-o-y to SAR 13 bn.

ALSO- SNB’s BoD will be distributing SAR 6 bn in dividends for 2H 2024 on 24 February, at SAR 1 per share, according to a separate disclosure.

AL RAJHI BANK-

Tadawul-listed Al Rajhi Bank saw its net income rise 18.7% y-o-y to SAR 19.7 bn in 2024, driven by a 16.4% increase in total operating income, it said in a disclosure to Tadawul. Al Rajhi’s total income from financing grew 18.7% y-o-y to SAR 39.8 bn, while total income from investments grew 39% y-o-y to SAR 7.2 bn.

ALSO- Al Rajhi’s BoD is distributing SAR 5.8 bn in dividends for 2H 2024 at SAR 1.5 per piece, the bank said in a separate disclosure. The distribution date was not disclosed. The bank previously distributed its 1H 2024 dividends valued at SAR 5 bn, bringing the total dividends for FY 2024 to SAR 10.8 bn (SAR 2.7 per share).

ALINMA BANK-

Tadawul-listed Alinma Bank saw its net income rise 20.5% y-o-y to SAR 5.8 bn in 2024, driven by higher operating and investment income, it said in a disclosure to Tadawul. Alinma’s total income from financing grew 22.1% y-o-y to SAR 14.1 bn, while total income from investments grew 22.3% y-o-y to SAR 2 bn.

ALSO- Alinma’s BoD greenlit a SAR 746.1 mn in dividend distribution at SAR 0.3 per share for 4Q 2024, the bank said in a separate disclosure. The distribution date was not disclosed.

BANQUE SAUDI FRANSI-

Banque Saudi Fransi’s (BSF) net income increased 7.6% y-o-y to SAR 4.5 bn last year, on driven by a 3.6% increase in total operating income and a 6% drop in total operating expenses, according to a disclosure to Tadawul. Total income from financing was up 21.4% y-o-y to SAR 14 bn, while total income from investments increased 41.2% to SAR 2.4 bn.

In 4Q 2024: SNB’s net income was up 35% y-o-y to SAR 1.1 bn, from SAR 827 mn in the same period last year.

SAUDI INVESTMENT BANK-

Tadawul-listed Saudi Investment Bank (SAIB) reported a net income of SAR 1.96 bn in 2024, up 11.1% from 2023, on the back of a 5.3% rise in total operating income and a 19.2% reduction in provisions for credit and other losses, according to a statement. SAIB’s total income from financing was up 22.4% y-o-y to SAR 6.8 bn, while total income from investments increased 11.2% to SAR 2.1 bn.

In 4Q 2024, SAIB’s net income rose 14% y-o-y to SAR 510 mn, up from SAR 447.2 mn in the same period last year, according to separate earnings reports Argaam says it has seen. Meanwhile, operating income was up 11.2% y-o-y to SAR 1.08 bn in the same period.

BUPA ARABIA-

Tadawul-listed Bupa Arabia Cooperative Ins. (Bupa Arabia) reported a 24% y-o-y rise in its net income to SAR 1.2 bn last year, according to a disclosure to Tadawul. Meanwhile, ins. revenues grew 13.9% y-o-y to SAR 18.1 bn.

Driving the growth: Bupa Arabia attributed the rise in net income in 2024 to higher net ins. services, on the back of business growth and an increase in ins. lives. The insurer also saw a 31% y-o-y rise in net investment results, which helped offset a 10.1% increase in other operating expenses due to higher expenditure to support business growth, according to the disclosure.

Riyadh Season sets Guinness World Record + Modon lands two Brilliance Awards

Saudi Arabia’s Riyadh Season set a Guinness World Record for hosting the largest edition of the Drone Racing World Cup in terms of participating countries, with over 50 nations represented, Al Watan reports. Korean pilot Minchan Kim took first place and a SAR 375k prize, followed by French pilot Killian Rousseau in second with SAR 285k, and American Joaquin Ybanez in third, earning SAR 185k.

Modon lands two Brilliance Awards: The Saudi Authority for Industrial Cities and Technology Zones (Modon) received UK-based event organizer and training firm BoC ’s Brilliance Award for Best Company to Work. It also received the Silver Award in the Employee Engagement in HR category for its Pulse Engagement Initiative.

ALSO- Modon’s Documents and Archives Center obtained the ISO 19475:2021 certification for archiving and document management, it said in a post on X. The certification is awarded to companies that meet international standards for document management. It outlines guidelines for metadata, classification, access control, and handling documents efficiently.

Telecommunications provider Salam Company received the Fastest Growing Telecom Brand Award at the Annual Business Tabloid Awards, according to a press release.

Australian-based supply chain company CHEP was certified as a Top Employer in Saudi Arabia, marking its fifth year overall and third year in a row to receive the certification, according to a press release (pdf). The company also maintained Top Employer status across four regions and 26 countries, covering 97% of its global workforce, with particular recognition for its strong employee experience and sustainability initiatives.

Saudi Chemical taps Abdullah Alznaedi as new acting CEO

Saudi Chemical Company Holding appointed Abdullah Alznaedi (LinkedIn) as its new acting CEO, following the resignation of its former CEO Thamer Almuhid, according to a disclosure to Tadawul. Alznaedi, with over 31 years of industrial experience, held leadership roles at the Saudi Basic Industries Corporation (Sabic), including CEO of Sabic Africa, and served as CEO of the Explosives Sector at Saudi Chemical Company.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Fakeeh Health acquires Dubai-based MediCentres

M&A-

Tadawul-listed Fakeeh Care Group’s subsidiary Fakeeh Health acquired 100% of Dubai-based MediCentres from Everest Health Investments for an undisclosed sum, according to a press release. Medicenters — a primary care clinic network — is now Fakeeh Medicentres.

About MediCentres: MediCentres operates clinics in Motor City, Jumeirah Park, Al Furjan and Dubai Silicon Oasis, and Dubai Mall. The network of clinics offers comprehensive medical and dental services including pediatrics, physiotherapy, dermatology, among other fields, according to its webpage.

ICYMI- Fakeeh Care took a 21.5% stake to market in June 2024 through an offering of both new and existing shares. The IPO was priced top of the range, giving the family business a market cap of 13.3 bn at listing. The Abu Dhabi Investment Authority, the UAE’s largest sovereign wealth fund, was a cornerstone investor in the IPO, committing to subscribing to 1.04 mn shares.

BANKING-

STC Bank is now a full digital bank: STC Bank, a subsidiary of the Saudi Telecom Company, officially rolled out its digital banking services after receiving the green light from the Saudi Central Bank (Sama), according to a disclosure to Tadawul. STC Bank, previously operating as STC Pay, will now function as a full digital bank, after it had been running under a beta phase since April 2024.

DEBT WATCH-

BinDawood Holding lined up a three-year, SAR 300 mn Shariah-compliant Murabaha loan with Emirates NBD KSA to fund a portion of its acquisition of Zahrat Al Rawdah Pharma, it said in a disclosure to Tadawul.

REMEMBER- BinDawood Holding, which operates supermarket chains BinDawood and Danube, signed a sale and purchase agreement for the full acquisition of Zahrat Al Rawdah Pharma for SAR 444.1 mn from Kawakeb Al Saydailyat back in November. The acquisition will allow BinDawood to include pharma products at its retail outlets, expanding its footprint in the health and wellness sector.

STARTUP WATCH-

Saudi-based PropTech startup Nabeeh received an undisclosed investment from IbtikarFund, which will be used to expand its user base and enhance its platform, Wamda reports. Founded in Palestine in 2021 by Saber Samara and Fawaz Samara, Nabeeh provides technology-driven solutions for maintenance and cleaning services, targeting property owners, real estate operators, and multi-branch businesses.

DISPUTE WATCH-

Riyadh’s Commercial Court ruled in favor of Al Fakhera Men’s Tailoring CEO Sulaiman bin Hamad Al Yahya, citing lack of authority to handle the case seeking 58% of his ownership in the company, the company said in a disclosure to Tadawul. Al-Yahya owns 71.25% of Al Fakhera Men following its IPO on the Nomu-Parallel Market.

REMEMBER-Al Yahya is facing three other lawsuits that could lead to a SAR 365k financial impact on the company. While the ruling is subject to appeal, Al-Fakhera assured that there is no significant risk to the Chairman’s position.

TOURISM-

Baheej launches SAR 500 mn tourist project in Yanbu: Baheej — a JV between Asfar, PIF’s Saudi Tourism Investment Company, and the Tamimi-AWN Alliance, broke ground on its SAR 500 mn tourist project in Yanbu, SPA reports. The project includes a tourist resort, luxury hotel, diving academy, and marina.

LOGISTICS-

Matternet’s M2 delivery drones coming to the Kingdom: US-based delivery drone developer Matternet received regulatory approval from the General Authority for Civil Aviation to operate its flagship M2 drone in Saudi Arabia, according to a press release.

BUSINESS-

The Royal Commission for Jubail and Yanbu signed several agreements with public and private sector entities at Yanbu Industrial City, according to state news agency SPA. The agreements include:

An MoU with the Saudi Cricket Federation to manage and operate the cricket center in Yanbu Industrial City;
An MoU with PIF-backed industrial conglomerate Alat to provide training programs at the Royal Commission’s colleges and institutions;
An MoU with PIF-backed EV manufacturer Lucid Motors to train local talent in the EV industry, with a train-to-hire program for graduates;
An MoU with Al Yamamah Steel Industries to localize technical and engineering jobs and offer training programs;
An MoU with King Faisal Specialist Hospital & Research Center to collaborate in healthcare;
An MoU with the Saudi Commission for Health Specialties to support professional and talent development in the healthcare sector;
An MoU with Taibah University to implement training and development programs.

DEFENSE-

Al Rasheed obtains military equipment supply license: Mining firm Mohammed Hadi Al Rasheed and Partners Co. received a license from the General Authority for Military Industries to supply military equipment, according to a disclosure to Tad awul.

Fed holds rates steady, keeping tabs on Trump and inflation

The US Federal Reserve unanimously kept interest rates steady in the 4.25%-4.50% range, it said in a statement yesterday, as they assess the impact of Trump’s economic policies on inflation and growth. The decision ends the Fed’s cutting spree, which brought rates down a full percentage point last year, including a 50 bps cut in September, followed by 25 bps reductions in November and December.

A predictable outcome: The decision was one of the “most predictable no change” moves in recent years, Bloomberg reports, citing DoubleLine Capital’s Jeffrey Gundlach. A Reuters poll of economists echoed the same sentiment earlier this month as better-than-expected data for inflation and the jobs market signalled the economy does not need further stimulus.

Bracing for the Trump effect: While holding off on a rate cut for now, the Fed remains flexible as it evaluates the impact of the anticipated tariffs on Canadian and Mexican imports, the Associated Press reported. Policymakers are wary, recalling that past tariffs slowed growth more than they raised prices. Analysts also warn that widespread tariffs and mass deportations could fuel inflation, which stubbornly remains above the Fed’s 2% target.

Trump is not happy: US President Donald Trump took to social media to lash against the Fed’s presumed failure in stopping “the problem they created with Inflation”. The newly-inaugurated president vowed to take matters into his own hands. “I will do it by unleashing American Energy production, slashing Regulation, rebalancing International Trade, and reigniting American Manufacturing,” he wrote in a post on Truth Social. Trump has been pushing for lower rates for a while now, claiming he should have a say in Fed policy. “I’ll demand that interest rates drop immediately, and likewise, they should be dropping all over the world,” he said earlier at Davos.

Less cuts this year? Analysts suggest we are in for a slower pace of reductions as the rates hover near the neutral zone, where monetary policy neither stimulates nor restricts growth. Meanwhile, Powell signalled repeatedly in the press conference that the Fed intends to wait for the Trump administration’s policies to be articulated and implemented, before assessing their implications and deciding on the next step. “Chair Powell very clearly indicated that the first phase of rate calibration is behind us. They’re in no hurry to move into the next phase,” Kathy Bostjancic, chief economist at Nationwide, told Bloomberg.

MARKETS THIS MORNING-

Asian markets are broadly in the green in early trading this morning, although a handful of them — including Taiwan, Hong Kong, South Korea, and China — are closed for the Lunar New Year. Japan’s Nikkei is up around 0.2% so far.

Over on Wall Street, futures indicate the S&P 500, Dow Jones, and Nasdaq will all open in the green despite all three indexes closing down at the end of yesterday’s trading.

TASI	12,439	+0.2% (YTD: +3.4%)
MSCI Tadawul 30	1,548	+0.3% (YTD: +2.6%)
NomuC	31,049	+0.1% (YTD: -1.4%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	29,892	+0.8% (YTD: +0.5%)
ADX	9,569	+0.2% (YTD: +1.6%)
DFM	5,129	-0.9% (YTD: -0.6%)
S&P 500	6,039	-0.5% (YTD: +2.7%)
FTSE 100	8,558	+0.3% (YTD: +4.7%)
Euro Stoxx 50	5,231	+0.7% (YTD: +6.8%)
Brent crude	USD 76.58	-1.2%
Natural gas (Nymex)	USD 3.54	+1.8%
Gold	USD 2,798.30	+0.2%
BTC	USD 103,780.80	+3.4% (YTD: +10.7%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.2% yesterday on turnover of SAR 8.9 bn. The index is up 3.4% YTD.

In the green: ALRAJHI (+4.7%), MBC GROUP (+4.4%) and BJAZ (+4.0%).

In the red: BUPA ARABIA (-7.1%), SHARQIYAH DEV (-5.2%) and BAAN (-4.5%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.1% yesterday on turnover of SAR 35.3 mn. The index is down 1.4% YTD.

In the green: TMC (+30%), ALRASHEED (+19.3%) and MEYAR (+8.3%).

In the red: ALRASHID INDUSTRIAL (-5.2%), NBM (-5.0%) and FADECO (-4.8%)

CALENDAR

JANUARY

29-30 January (Wednesday-Thursday): Global Labor Market Conference, Riyadh.

31 January (Friday): Deadline for businesses to update their registered customs items.

1Q: BinDawood Holding expected to close 100% acquisition of Zahrat Al Rawdah Pharma.

1Q: Roshn expected to raise SAR 2.6 bn from international bank.

FEBRUARY

1 February (Saturday): UFC Fight Night: Adesanya vs Imavov, The Venue, Riyadh.

2 February (Sunday): Flyadeal launches direct flights to Karachi, Pakistan, departing from Riyadh and Jeddah twice a week.

2 February: Derayah Financial announces Price Range and begins institutional book building for its Tadawul IPO

3-5 February (Monday-Wednesday): Saudi International Marine Exhibition (SIMEC), Riyadh.

4-5 February (Tuesday-Wednesday): The RLC Global Forum, Riyadh.

4-5 February (Tuesday-Wednesday): Capital Markets & ESG Finance, Hilton Riyadh Hotel & Residences.

6 February (Thursday): Property registration deadline for owners in several districts of seven Qassim cities.

6-8 February (Thursday-Saturday): LIV Golf season opener, Riyadh Golf Club, Riyadh.

8 February (Saturday): Sotheby’s first auction in the Kingdom, Diriyah.

9-12 February (Sunday-Wednesday): LEAP Tech Conference, Malham, Riyadh.

9-12 February (Sunday-Wednesday): DeepFest by Leap, Riyadh.

10-12 February (Monday-Wednesday): Saudi Travel Market, Riyadh International Exhibition Center.

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

14-15 February (Friday-Saturday): Formula E, Diriyah.

15-18 February (Saturday-Tuesday): Week one of Big 5 Construct Saudi, Riyadh Front Exhibition & Conference Center.

16-17 February (Sunday-Monday): AlUla Conference for Emerging Market Economies, AlUla.

18 February (Tuesday): The Capital Markets Forum, KAFD Conference Centre, Riyadh.

19-20 February (Wednesday-Thursday): The Capital Markets Forum, The Four Seasons, Riyadh.

19 February (Wednesday): Derayah REIT dividend distribution.

19-21 February (Wednesday-Friday): Saudi Media Forum, Riyadh.

21-22 February (Friday-Saturday): The Saudi Cup, Riyadh.

22 February (Saturday): Founding Day.

22 February (Saturday): Dazn Boxing event: Beterbiev vs Bivol II, Riyadh.

23-27 February (Sunday-Thursday): Riyadh International Disputes Week, Hilton Riyadh Hotel Granada.

24-25 February (Monday-Tuesday): The Riyadh International Humanitarian Forum, Riyadh.

24-27 February (Monday-Thursday): Week two of Big 5 Construct Saudi, Riyadh Front Exhibition & Conference Center.

MARCH

1-30 March: Ramadan (TBC).

18-19 March (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.

31 March- 3 April (Monday-Thursday): Eid Al Fitr.

APRIL

7-9 April (Monday-Wednesday): Sports Investment Forum (SIF), Riyadh.

3-20 April (Thursday-Sunday): AFC Asian U17 Cup.

14-16 April (Monday-Wednesday): Future Hospitality Summit, Mandarin Oriental Al Faisaliah, Riyadh.

18-20 April (Friday-Sunday): Saudi Arabian Grand Prix, Jeddah,

21-24 April (Monday-Thursday): Saudi Food Exhibition and Conference, Riyadh.

22-23 April (Tuesday-Wednesday): AAM Middle East, Riyadh.

25 April- 4 May (Friday-Sunday): AFC Champions League Elite Finals

MAY

6-7 May (Tuesday-Wednesday): Federal Open Market Committee meeting.

12-15 May (Monday-Thursday): Saudi Smart Manufacturing, Riyadh International Convention & Exhibition Center.

13-14 May (Tuesday-Wednesday): Global EV & Mobility Technology Forum, The Arena, Riyadh.

23 May (Friday): Guns N’ Roses Show, Riyadh.

31 May-5 June (Saturday-Thursday): Hajj.

JUNE

6-9 June ( Friday-Monday): Eid Al Adha.

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

26 June (Thursday): 2024-2025 academic year ends.

JULY

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

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

AUGUST

5-17 August (Tuesday-Sunday): Fiba Asian Cup.

SEPTEMBER

15-17 September (Sunday-Tuesday): Money 20/20 Middle East, Riyadh.

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

23 September (Tuesday): Saudi National Day.

OCTOBER

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

NOVEMBER

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

24-26 November (Monday-Wednesday) The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh Front Convention & Exhibition Centre, Riyadh.

27-30 November (Thursday-Sunday): The World Rally Championship (WRC), Jeddah.

DECEMBER

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

December: The Fortune Global Forum 2025, Riyadh.

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

2026

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.

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

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

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.

Sections

About

Privacy & Support

Get EnterpriseAM daily