Elm inches closer to Thiqah SAR 3.4 bn takeover

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: A rejigged national anthem, courtesy of Hans Zimmer?

Good morning, friends. We’re rounding out the week with another meaty issue for you to sink your teeth into as we send you off into the weekend, ranging from Elm signing a share purchase agreement for a SAR 3.4 bn takeover of Thiqah, to a rundown of everything you need to know that happened at the World Economic Forum in Davos.

IN MEMORIAM- Chairman of City Cement Company Prince Abdulaziz bin Mishal Al Saud passed away, the cement producer said in a disclosure to Tadawul. Al Saud, an independent member of the company’s board and a member of the Saudi Royal family, was known for his contributions to business and development in Saudi Arabia. The company said it will announce Al Saud’s predecessor at a later time.

WEATHER- Riyadh will see a high of 19°C and a low of 7°C today, while Makkah is in for thunderstorms and strong winds seeing a 301°C high before tapering off to 20°C. Over in windy Jeddah temperatures will go as high as 31°C high with lows of 22°C.

PSAs-

Using your phone while driving could cost you up to SAR 900: Motorists who use mobile phones while driving will be charged SAR 500-900 for violating traffic safety laws, the General Department of Traffic said in a post on X.

WATCH THIS SPACE-

#1- Is the Ukrainian president coming to Saudi? Head of the Office of the President of Ukraine Andriy Yermak confirmed preparations for a visit to Saudi by Ukrainian President Volodymyr Zelenskyy in a post on X. Yermak met with Foreign Minister Faisal bin Farhan at Davos.

#2- The Kingdom could import as much as USD 5 bn in armaments from South Korea under a medium- to long-term defense industry cooperation agreement reached between Saudi National Guards Minister Abdullah bin Bandar bin Abdulaziz Al Saud and South Korean Director of the Defense Acquisition Program Administration Seok Jong-geon, South Korean outlet ChosunBiz reports. The agreement aims to boost South Korean defense firms in modernizing Saudi Arabia’s weapons.

#3- Kingdom Holding Company would mull a potential investment in TikTok if Tesla CEO and X owner Elon Musk got involved, the company’s CEO Prince Alwaleed bin Talal told Al Arabiya on the sidelines of the World Economic Forum in Davos. “If Musk, or others, offered, we would have an interest in looking into this investment no doubt,” he said.

ICYMI- The Kingdom Holding Company made a SAR 1.5 bn equity investment in Musk’s xAI in its series C funding round in December. The company is also the second-largest shareholder in X, with Prince Alwaleed and KHC collectively holding a 4% stake in the platform.

#4- US-based AI-driven customer relationship management company Salesforce is planning to set up regional headquarters in Riyadh, according to a press release. The company will also partner with IBM to open an AI-focused Center of Excellence in the city. The announcement was made at the Saudi House in the World Economic Forum in Davos.

#5- The Riyadh Metro stretches father: Four new stations — Dharat Al Badiah, Al Jarradiyah, Al Hilla, and First Industrial City — have opened up along the Riyadh Metro’s orange line (Line 3), the network’s longest at 41 km, according to a press release from the metro’s constructor WeBuild.

#6- Hans Zimmer might be giving Saudi a new sound: General Entertainment Authority Chair Turki Al Alshiekh and German composer Hans Zimmer — known for the Lion King, Dune, Gladiator, Interstellar, and more — discussed re-arranging the Saudi national anthem, composing an Saudi-inspired original piece titled Arabia, and Zimmer’s involvement in a concert for an upcoming Riyadh Season, the Saudi Gazette reports. Al Alshiekh also introduced him to the historical film The Battle of Yarmouk, with talks about Zimmer potentially composing its score.

DATA POINTS-

Consumer spending via point-of-sale transactions in the Kingdom fell 12.1% w-o-w for the week ending 18 January at SAR 11.8 bn, according to the Saudi Central Bank’s weekly POS report (pdf). Meanwhile, the number of transactions was down 8.3% at 198.6 mn.

The breakdown: The beverages and food sector saw the highest spending during the week despite falling 9.2% w-o-w to SAR 1.74 bn. It was closely matched by restaurants and cafes at SAR 1.73 bn, which was down 18%. Meanwhile, Riyadh had the highest value of PoS transactions during the week at SAR 4.2 bn, followed by Jeddah at SAR 1.7 bn.

SPORTS-

#1- Neymar is reportedly in discussions to quit SPL’s Al Hilal — but his ask price is getting in the way, AFP reports. Brazilian club Santos — where Neymar first came to fame — is looking for him to return, with Al Hilal preferring a transfer while Neymar is inclined towards a loan arrangement. The 32-year-old winger reportedly has a USD 104 mn per year salary from SPL, but has only played in the league seven times due to an injury he sustained just two months after moving to Riyadh.

#2- Al Ittihad leveled again with Al Hilal, securing all three points in a 2-1 victory at home to Al Shabab, leaving the SPL’s top two teams level on points heading into the season’s halfway point in matchday 17 next weekend.

Also from the matchday: Al Qadisiyah took third place back from Al Nassr after beating Al Orobah 2-0, while bottom of the league Al Fateh picked up an important three points at home to Damac.

#3- LIV Golf Riyadh to launch 2025 season under the lights to cater to US audiences: The 2025 LIV Golf League season will kick off with a nighttime event at Riyadh Golf Club from February 6-8 in its first tournament under a Fox Sports broadcasting rights agreement, according to The Mirro r. To accommodate US viewers, the shotgun start has been pushed to 6:15pm local time (10:15 AM ET), with rounds held under night course lighting. The adjusted schedule avoids direct competition with major tours like the PGA and DP World Tour.

***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-

The international business press is broadly focused on two big stories this morning: More decisions and tariff threats from US President Donald Trump, and a new fast-growing wildfire breaking out in Los Angeles.

From TrumpLand: A decision from the newly-minted president earlier this week to place all federal diversity, equity, and inclusion (DEI) program employees on paid administration leave will see these employees eventually laid off entirely and their programs shut down. The decision is part of Trump’s push to cut the country’s “bloated bureaucracy” and undo equality programs and policies that he says lead to unfit hiring decisions. (Politico | New York Times | Reuters)

Trump also threatened to slap fresh sanctions and tariffs on Russia if it fails to end its war in Ukraine, saying in a Truth Social post that Russian President Vladimir Putin should end the war to avoid his country’s economy “getting worse.” (Financial Times | Reuters | Wall Street Journal)

Separately, a new wildfire broke out in Los Angeles yesterday, forcing thousands of people to evacuate as the fires started quickly spreading. The Hughes fire broke out north of LA, while Southern California continues to be under “extreme fire risk due to strong, dry winds.” (Reuters | Wall Street Journal)

CIRCLE YOUR CALENDAR-

#1- The three-day Real Estate Future Forum will take place between 27-29 January at the Four Seasons, Riyadh. The event will feature 500 speakers from 120 countries, 34 panel discussions, and 17 workshops on topics like urban planning and green building technologies.

#2- The two-day Global Labor Market Conference kicks off Wednesday, 29 January at the King Abdulaziz International Conference Center in Riyadh. The event brings together business leaders, policymakers, regulators, and researchers to chew over the prospects and challenges facing global labor markets with a focus on youth employment and innovative initiatives to boost youth participation in the global economy. Register here.

#3- The UFC returns to the Kingdom on 1 February, kicking off its 2025 collaboration with Riyadh Season, according to Forbes. The main event will see former middleweight champion Israel Adesanya face Nassourdine Imavov. The co-main event will see Shara Magomedov square off with Michael “Venom” Page. The card also includes several ranked fighters, with matchups spanning multiple divisions.

#4- The RLC Global Forum will take place from 4-5 February at the Fairmont Riyadh. The retail event brings business leaders, innovators, and policymakers from the sector to discuss global partnerships, luxury retail, cross-border commerce, and grocery sector innovation. Featured speakers include leaders from Landmark Group’s Chairwoman Renuka Jagtiani, Chalhoub Group CEO Michael Chalhoub, Visa, and Harrod’s Managing Director Michael Ward.

#5- LEAP 2025 will take place between 9-12 February at the Riyadh Exhibition & Convention Center in Malham. The tech event will bring together over 1.8k global tech brands, 1k experts and some 680 startups. LEAP 2025 will feature over 300 hours of content across 17 tracks, covering AI, fintech, edtech, smart cities, and more. Co-located with LEAP is DeepFest, a major AI-focused event bringing thought leaders and innovators under one roof.

#6- The eight-day Big 5 Construct Saudi will take place from 15-18 February and 24-27 February at the Riyadh Front Exhibition & Conference Center. The Kingdom’s largest construction event will feature over 2k exhibitors from more than 60 countries, showcasing innovations across the sector. The event is expected to attract over 75k participants.

Elm inches closer to Thiqah SAR 3.4 bn takeover

Elm nears full control of Thiqah: Tadawul-listed digital IT solutions firm Elm inked a SAR 3.4 bn cash-based share purchase agreement (SPA) with its parent company the Public Investment Fund (PIF) to acquire 100% of business services firm Thiqah, according to a joint press release. This is a related-party transaction given that the PIF is a majority shareholder in both Elm and Thiqah. The story was picked up by Reuters.

Transaction mechanism: The acquisition will see Elm buy all 45k shares held by the PIF in Thiqah, valued at a nominal share price of SAR 1k a piece, it said in a filing to Tadawul. The digital security firm will tap its own resources and facilities to fund the transaction fully in-cash. Upon closing, Thiqah will become a wholly-owned subsidiary of Elm and its financial results will be consolidated into Elm’s financials.

The pitch: “The combined integrated entity will be better able to create advanced national smart services to serve market requirements and clients’ needs. It will also contribute to facilitating innovative operations and capabilities to develop products in the business field with cost advantages while achieving economies of scale,” Elm’s CEO Mohammad Abdulaziz Alomair said.

This has been brewing for months: Discussions on the potential acquisition initially kicked off in 2023. Alomair later confirmed that “the talks are moving in a good direction,” in an interview with Al Arabiya back in March 2024.

About Thiqah: Established in 2012, the PIF company is an end-to-end business services and digital solutions provider, according to its webpage. The company’s portfolio includes a wide range of platforms and services, such as product conformity platform Saber, digital tool for financial transparency Etimad, marriage e-certificate service E-Zawaj, legal authentication platform Almwathiq, online auction solution E-Mazad, and cultural licensing platform Ebdea. Additionally, it offers Aamaly for publishing government transactions, Wathq for direct data verification, and SDR for pharmaceutical and veterinary product registration, among others.

A quick look at 2023 earnings: Thiqah logged SAR 180 mn in net income in 2023, up from SAR 129 mn in 2022, according to the filing. The company’s revenues came in at nearly SAR 1.6 bn over the same period, slightly down from SAR 1.7 bn the previous year.

ADVISORS- Our friends at HSBC Saudi Arabia were appointed as financial adviser to Elm on the transaction, while AS&H Clifford Chance Law Firm provided counsel.

Market Reax: Elm’s share price fell 4% to SAR 1.18k apiece at market close yesterday.

Everything you need to know from Saudi officials at Davos

YOUR DAVOS 2025 PRIMER- Saudi ministers made the rounds at the World Economic Forum in Davos, discussing in dialogue sessions and other interviews everything from investment targets, the performance of the Saudi capital market, and trade and tourism figures. Here’s everything you need to know:

BANKING AND INVESTMENT-

The Kingdom achieved a USD 200 investment return for every budgeted USD 1, doubling its initial target of a USD 100 return, the Saudi Gazette reports citing remarks by Finance Minister Mohammed Al Jadaan during a dialogue session at Davos yesterday,

Saudi is banking on the private sector: Despite the importance of government intervention at the outset, fast and efficient growth in meeting the diversification agenda is best achieved by giving the private sector space to “grow,” while the government provides guidance and regulation, Economy Minister Faisal Al Ibrahim said (watch, runtime: 5:10). Increased private sector participation unlocks access to smarter (and more) capital, efficiencies, wider community engagement, and innovative solutions, Al Ibrahim said.

Our capital market is going strong: Saudi Arabia averages 40-50 IPOs annually on Tadawul and has over 100 companies listed on Nomu, the fastest-growing market in the region, Minister of Investment Khalid Al-Falih told Bloomberg in Davos (watch, runtime: 24:22). Saudi’s VC sector also leads in the Middle East, accounting for almost 50% of regional VC. The Aramco listing boosted the capital market to the top 10 globally, with foreign ownership reaching USD 100 bn, 25 times higher than five years ago.

BUT- The debt capital market could use a boost: While investments in the base economy are strong, Al-Falih notes, Saudi Arabia’s debt capital market, at less than 4% of GDP, lags behind the G20 average of 40%. There’s potential to grow it significantly, boosting GDP and private sector involvement via bond issuances on Tadawul.

Our friend EFG Hermes Head of Research Ahmed Shams El Din also told us last year that the “dark horse in Saudi Arabia is debt capital markets,” which are still lagging behind most emerging markets. Whereas the average emerging market has DCM issuances at around 25% of GDP, Saudi’s stands at 3% of GDP, Shams El Din noted. A lacking debt capital market will make “the hype” on equity capital markets “not sustainable,” he told us.

Feedback from Franklin Templeton: Franklin Templeton President and CEO Jenny Johnson praised Saudi’s streamlined regulations and a favorable investment environment, emphasizing that “capital goes where capital is treated well.” She noted concerns over hiring a team and Board before final RHQ approval, but commended Saudi regulators for being open, responsive, and eager to engage with investors. Franklin Templeton has since launched its regional headquarters in Riyadh and introduced the Saudi Franklin Bond Fund.

TRADE-

The Kingdom hit SAR 540 bn in services trade in 2023, up 7% y-o-y, Commerce Minister Majid bin Abdullah Al Qasabi said, according to state news agency SPA. Saudi Arabia has been doubling down on improving its services sector, allocating SAR 93.7 bn on developing digital infrastructure while earmarking another SAR 75 bn for future investments, the official said.

TOURISM-

Saudi tourism needs to spread out: Tourism Minister Ahmed Al Khateeb stressed the need for balanced regional tourism growth to prevent over-crowding by tourists at specific cities, Aleqtisadiah.

By the numbers: The tourism sector accounted for 5% of GDP at the end of last year, and is targeting 10% by 2030, backed by USD 500 bn in sustainable tourism projects such as AlUla and the Red Sea, Al Khateeb said. Long-term plans see the Kingdom spending next to USD 1 tn to develop the sector over the next decade.

Saudi tourist numbers hit records last year: The Kingdom welcomed 30 mn foreign tourists in 2024 — up from the previous year’s 27.5 mn — driven by heavy investments in hotels, luxury developments and entertainment, Al Khateeb said, according to Bloomberg. Although still on the rise, the growth in Saudi’s tourist numbers did slow down last year when compared to the 60% jump noted in 2023. The Kingdom hopes to reach 70 mn tourists a year by 2030 as it wagers on middle-class travellers from China and India to boost the tally, Bloomberg added.

AI-

Saudi Aramco inked an agreement with AI innovation startup and Alphabet spin-off SandboxAQ to apply AI towards generating “marketable products” out of cheap fuels and CO2 emissions, Bloomberg reports. The partnership will create new revenue streams for the state-owned oil giant while also curbing emissions, SandboxAQ CEO Jack Hidary said at Davos. Hidary did not supply further details on the investment ticket or other key terms of the agreement.

REMEMBER- Aramco ♥️ AI: Aramco-backed VC fund Wa’ed Ventures earmarked USD 100 mn for investments in AI startups last October, while also appointing an advisory board of ex-Meta and Amazon employees to weigh in on early-stage investments in the sector.

SNB, Al Arabia, and Sisco top equity picks for 2025 -CI Capital

CI Capital likes the Kingdom’s equity markets: Favor Saudi Arabia in the 2025 equity strategy, Egypt-based financial services firm CI Capital said in its latest MENA positioning report, seen by EnterpriseAM Saudi. The group cited the Kingdom’s robust off-budget financial capacity, ongoing policy reforms, and strategic investment drive.

The rationale: Strong local demand fueled by the government’s localization push provides a buffer against external inflationary pressures. Hosting upcoming major global events and sports — including World Expo 2030 and FIFA World Cup 2034 — will also play to the same effect, while putting the investment bank’s estimate for non-oil GDP growth at 4.2% this year.

Saudi stocks made up six of the 20 top picks across the region, including Saudi National Bank (SNB), Al Mawarid Manpower Company, Arabian Contracting Services (Al Arabia), Maharah Human Resources, Tanmiah Food Company, and Sustained Infrastructure Holding (Sisco), all with an “overweight” rating.

CI CAPITAL’S TOP 3 PICKS

SNB boasts strong fundamentals underpinned by a liquid balance sheet, lower leverage, strong asset quality, and capitalization. This is in addition to a balanced exposure to corporate and retail segments, and high current and deposit accounts’ contributions.

Al Arabia is expected to maintain its current position as the holder of the biggest market share in advertising, with that expected to reach 85% this year. Rising activity in the local real estate, culture, and sports sectors presents a strong business opportunity to the company. Long term contracts and the potential for landing contracts with more airports also support the narrative.

Infrastructure and logistics investment firm Sisco Holding’s (Sisco) stock price is expected to trade at a lower price relative to its growth potential this year, offering a buying opportunity to investors. Strong performance of its subsidiaries, including warehousing arm Logipoint and RSGT, and a recent cross-border expansion into Bangladesh, is among the factors.

ALSO FROM THE REPORT-

Our deficit is projected to widen in 2025 due to extended production cuts weighing on oil prices;
Corporate lending to rise 10.7% on the back of lower interest rates;
Unemployment rate to reach target at 5% this year.

PIF sells USD 4 bn in bonds + FinMin closes SAR 3.7 bn in January Sukuk issuance

The PIF sold USD 4 bn in a bond issuance yesterday, with yields priced at 95 basis points over US treasuries for the 5-year tranche and 110 basis points for the 9.5-year tranche, Bloomberg reports, citing sources it said are in the know. The issuance received USD 16 bn in orders, excluding joint lead manager interest, the sources said.

This is PIF’s second major move on debt markets this year: The fund completed a USD 7 bn murabaha credit facility earlier this month, backed by a syndicate of 20 unnamed international and regional financial institutions as part of its “medium-term capital raising strategy.”

ADVISORS- BNP Paribas SA, Citigroup, Goldman Sachs, HSBC Holdings, JPMorgan Chase, and Standard Chartered managed the issuance, sources said.

ALSO ON OUR DEBT WATCH-

The Finance Ministry closed its January sukuk issuance, raising SAR 3.7 bn from fixed-income investors, significantly down from SAR 11.6 bn raised in December, according to a statement (pdf) by the National Debt Management Center. This is part of the government’s SAR-denominated Sukuk program.

January’s issuances shifted towards fewer tranches and slightly extended maturities compared to December. Yields remained steady for shorter tenors but saw a slight uptick for longer-term debt. The issuance was structured in four tranches:

A 4-year tranche valued at SAR 1.26 bn with a 5.12% yield;
A 7-year tranche valued at SAR 1.41 bn with a 5.19% yield;
An 11-year tranche valued at SAR 1.04 bn with a 5.26% yield;
A 14-year tranche valued at SAR 27.5 mn with a 5.05% yield.

IN CONTEXT- The shift comes against the backdrop of the approved FY 2025 borrowing plan and the Kingdom’s intention to diversify its borrowing portfolio during the new fiscal year. It looks to expand its creditor base by tapping fresh local and foreign lenders, in a bid to raise SAR 139 bn to foot a SAR 101 bn budget deficit and SAR 38 bn in maturing loan repayments.

A snapshot of total outstanding debt: The Kingdom’s total direct debt stood at SAR 1.216 tn (USD 324.2 bn) as of the end of December 2024, consisting of SAR 738.3 bn (USD 196.6 bn) in domestic debt and SAR 477.7 bn (USD 127.4 bn) in external debt, according to NDMC’s website.

Basma Adeem Medical prices Nomu IPO at top of range

Basma Adeem Medical priced its Nomu IPO at the top of the indicativerage at SAR 4.4 per share, after the subscription period for qualified investors closed out with a 1,981.27% coverage, the financial advisor on the transaction Yaqeen Capital said in a disclosure to Tadawul. The dental care services company had lined up CMA approval for a 20% stake offering — good for 4 mn shares — last October.

Market cap and proceeds: The final pricing sees the firm locking in some SAR 17.6 mn in proceeds, giving it a market cap of around SAR 88 mn at listing, according to EnterpriseAM calculations.

Use of proceeds + lockup: Net proceeds from the sale will go towards establishing a dental lab and new clinics as part of Basma Medical’s expansion plans, after setting aside SAR 2.4 mn to cover IPO-related expenses. The company’s four major shareholders will see their ownership diluted to a combined 70.29% stake down from 87.87%.

What’s next? Yaqeen Capital, the financial advisor, will confirm Basma Adeem’s listing date on Nomu after finalizing remaining procedures.

ADVISORS- Yaqeen Capital is quarterbacking the transaction as lead manager and financial advisor, while RSM is auditor. Receiving agents include Alistithmar Capital, Alinma Investment, SNB Capital, AlJazira Capital, Riyad Capital, and others.

Sabic CEO tops ICIS list + GEA sets Guinness World Record

#1- Saudi Basic Industries Corporation (Sabic) CEO Abdulrahman Al-Fageeh was ranked first on the ICIS Top 40 Most Influential Figures list for 2025, the company announced in a post on X. The ranking recognizes executives shaping the chemical industry.

Al-Fageeh, with over 35 years of experience, led Saudi delegations to global forums and holds key roles in industry organizations, including Chairman of the Gulf Petrochemicals and Chemicals Association and the Chairman of Saudi Petrochemical Manufacturers Committee.

#2- Saudi Arabia’s General Entertainment Authority (GEA) set a Guinness World Record for creating the world’s largest honorary shield, standing 15.13 meters tall, Saudi Gazette reports. The shield was unveiled outside the Joy Awards at ANB Arena on Saturday, where GEA received the official certificate.

A Saudi-Palestinian Business Council in the works

BUSINESS-

A Saudi-Palestinian Business Council in the works: The Federation of Saudi Chambers agreed with the Palestinian embassy in Saudi Arabia to form a Saudi-Palestinian Business Council in a bid to boost trade flow between the two countries and enable Palestinian businesses to promote their products in the Kingdom, state news agency SPA reports.

ENERGY-

PowerChina gets Saudi solar farms contract: Chinese state-owned PowerChina has secured the engineering, procurement, and construction (EPC) contract for the 1.25 GW Al Masaa and 500 MW Al Henakiyah 2 solar projects – previously reported to have 1.1GW and 400 MW of capacity respectively, according to a statement published Wednesday. The contract includes the design, procurement, construction, commissioning, and operation and maintenance of the photovoltaic power plants and supporting facilities.

About the projects: The solar plants – awarded to French state-owned electricity giant EDF Renewables in December – are expected to generate 4.4 bn KWh of clean electricity annually to power approximately 550k local households and reduce CO2 emissions by 2.88 mn metric tons.

HOSPITALITY-

#1- Makkah set to be home to the world’s largest Courtyard by Marriott: Marriott International partnered with BinDawood subsidiaries Al Qimmah Hospitality and Amwaj Real Estate to build its largest Courtyard by Marriott hotel in Makkah, according to a press release. The hotel will feature a little under 2.2k rooms and is slated to open in 2026.

#2- Baan Holding Group was awarded a SAR 436 mn project by a subsidiary of Almutlaq Real Estate Investment Company to provide catering and accommodation services at its Modern Village residential complex in Neom, according to a disclosure to Tadawul. The six-year partnership with the Sustainable Services Company is set to run until the end of 2030.

INFRASTRUCTURE-

UK-based architecture firm Able Partners is designing a 75-meter pedestrian footbridge on Riyadh’s Highway 65, dubbed Dune Bridge, according to a press release. The bridge’s name is inspired by the region’s dunes, and it aims to connect the city’s eastern and western sides.

MINING-

ElementUSA + Ma’aden partners to reduce mining waste: Florida-based ElementUSA and Ma’aden signed an MoU to deploy ElementUSA’s technology to extract valuable critical minerals and rare earth metals from various waste streams including red mud and phosphogypsum, according to a press release.

Inside Trump’s USD 500 bn AI project Stargate

Inside Trump’s USD 500 bn AI project: US President Donald Trump announced on Tuesday that the US is embarking on Stargate, a joint venture to build large-scale data centers nationwide, with OpenAI, SoftBank, and Oracle committing USD 500 bn to the project labeled by Trump as “largest AI infrastructure project in history,” CNN reports.

Who’s doing what? SoftBank will oversee financial aspects, with its own Masayoshi Son chairing the venture, while OpenAI will handle day-to-day operations.

The project’s already underway: Stargate’s first 10 data centers are already under construction in Texas comprising 500k sq ft each, Reuters reported, citing statements by Oracle Chairman Larry Ellison at a press conference. Data centers built by Stargate will be used to power advanced AI applications, like artificial general intelligence and electronic health record analysis.

Meet the investors: A portion of the initial USD 100 bn slated to be deployed immediately will be funded by third-party debt rather than equity, according to Axios. SoftBank will raise the debt, with Softbank and Sam Altman’s OpenAI being the largest equity investors in the initial USD 100 bn. UAE tech-focused investor MGX and Oracle have also contributed funding. The potential remaining investments estimated at USD 400 bn is expected to include current and new investors, as well as lenders.

A race against China: Trump emphasized the urgency of building AI infrastructure and keeping it “in this country” to maintain US dominance over competitors such as China, according to CBS. The newly-inaugurated president pledged state support to the industry through emergency declarations and streamlined energy production.

A pro-AI regulatory climate: The new president also repealed Biden-era AI regulations that mandated AI developers to share safety test results for systems posing risks to national security, the economy, or public health, Reuters reported separately. Biden’s order also had required agencies to set testing standards and address cybersecurity and other risks. Meanwhile, Trump retained an eleventh-hour executive order by the former administration to offer federal backing for initiatives providing power to AI investments.

Elon Musk is not on board, it seems: The tech mogul and close Trump confidant was openly critical of the project hours after its launch, replying “they don’t actually have the money” to Stargate’s OpenAI statement on X which said that the project will “begin deploying USD 100 bn immediately.” Softbank, Musk claimed in a separate post, has secured only USD 10 bn so far.

Market reax: Oracle shares surged 7% following the announcement, while SoftBank shares jumped 12%. AI-related companies including Nvidia, Arm Holdings, and Dell also saw gains.

MARKETS THIS MORNING-

Asian markets are mostly in the green this morning, with Shanghai Composite up 1.4%, Hang Seng (Hong Kong) and Japan’s Nikkei both up 0.5%. Meanwhile, Wall Street futures are marginally lower as the S&P 500 nears record highs.

TASI	12,362	-0.1% (YTD: +2.7%)
MSCI Tadawul 30	1,545	-0.3% (YTD: +2.4%)
NomuC	31,001	-1.0% (YTD: -1.5%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	29,979	+0.5% (YTD: +0.8%)
ADX	9,534	+0.2% (YTD: +1.2%)
DFM	5,231	+0.2% (YTD: +1.4%)
S&P 500	6,086	+0.6% (YTD: +3.5%)
FTSE 100	8,545	0.0% (YTD: +4.6%)
Euro Stoxx 50	5,206	+0.8% (YTD: +6.3%)
Brent crude	USD 79.00	-0.4%
Natural gas (Nymex)	USD 4.00	+1.0%
Gold	USD 2770.90	+0.4%
BTC	USD 104,008.80	-2.6% (YTD: +11.2%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.1% yesterday on turnover of SAR 7.6 bn. The index is up 2.7% YTD.

In the green: Naseej (+10.0%), Jahez (+6.1%) and Saudi German Health (+4.8%).

In the red: Elm (-4.0%), Budget Saudi (-2.7%) and Go Telecom (-2.7%).

THE CLOSING BELL: NOMU-

The NomuC fell 1.0% yesterday on turnover of SAR 36.2 mn. The index is down 1.5% YTD.

In the green: Armah (+7.3%), Quara (+5.3%) and Fadeco (+3.0%).

In the red: WSM (-6.3%), SPC (-6.3%) and First Avenue (-6.0%)

Aramco is MENA’s most valuable brand

Five local companies — Saudi Aramco, Stc, Al Rajhi Bank, SNB, and Sabic — were named among the world’s 500 most valuable brands in London-based valuation consultancy firm Brand Finance’s latest report (pdf). Collectively, Saudi brands contributed USD 75.5 bn to MENA’s total USD 127.4 bn brand value, according to Arab News.

Aramco retained its position as Saudi’s most valuable brand, with its value rising 0.3% y-o-y to USD 41.7 bn. The oil giant dropped two spots to 38th in the Brand Finance Global 500 but remains the Middle East and North Africa’s top brand and the world’s second most valuable in oil and gas after Shell.

Saudi banks make their mark: Al-Rajhi Bank climbed 45 spots to 309, ranking second among MENA banks, and SNB secured 461, placing third in the region behind Qatar’s QNB.

Stc also became the ninth most valuable telecom brand globally, rising 13 places to rank 136th. with its value increasing 16% to USD 16.1 bn.

CALENDAR

JANUARY

21-23 January (Tuesday-Thursday): The International Exhibition for Material Handling, Equipment, Warehouse Supplies, Forklifts & Heavy Equipment, Riyadh International Exhibition Center.

21-23 January (Tuesday-Thursday): Saudi International Exhibition for E-Marketing and E-Commerce, Riyadh International Convention and Exhibition Center.

24-25 January (Friday-Saturday): UIM E1 World Championship Jeddah, Jeddah.

25 January (Saturday): The opening of the 2025 Islamic Arts Biennale, Western Hajj Terminal of King Abdulaziz International Airport, Jeddah

27-29 January (Monday-Wednesday): Real Estate Future Forum, Four Seasons Hotel, Riyadh.

27-29 January (Monday-Wednesday): Saudi Franchise Expo, Riyadh International Convention and Exhibition Center.

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

28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Riyadh.

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.

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.

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

Elm inches closer to Thiqah SAR 3.4 bn takeover

An independent publication supported by

Today at a glance

THIS MORNING: A rejigged national anthem, courtesy of Hans Zimmer?

Related

This publication is proudly sponsored by

Elm inches closer to Thiqah SAR 3.4 bn takeover

Related

Everything you need to know from Saudi officials at Davos

Related

SNB, Al Arabia, and Sisco top equity picks for 2025 -CI Capital

Related

Related

PIF sells USD 4 bn in bonds + FinMin closes SAR 3.7 bn in January Sukuk issuance

Related

Basma Adeem Medical prices Nomu IPO at top of range

Related

Sabic CEO tops ICIS list + GEA sets Guinness World Record

Related

A Saudi-Palestinian Business Council in the works

Related

Inside Trump’s USD 500 bn AI project Stargate

Related

Aramco is MENA’s most valuable brand

Related

CALENDAR

Related

About

Privacy & Support

My EnterpriseAM

Sign in

Check your email! We've sent you a magic link to sign in.

Sections

About

Privacy & Support

Get EnterpriseAM daily

Elm inches closer to Thiqah SAR 3.4 bn takeover

An independent publication supported by

Today at a glance

Get Enterprise daily

Related

This publication is proudly sponsored by

Related

Related

Related

Related

Related

Related

Related

Related

Related

Related

CALENDAR

Related

An independent publication supported by

About

Privacy & Support

My EnterpriseAM

Sign in

Check your email! We've sent you a magic link to sign in.