Fakeeh Care IPO fully covered, set to be Saudi’s largest listing so far this year

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Jake Sullivan says there’s no unilateral Saudi-US deal, but Tom Friedman says it’s still in the cards

Good morning, friends — we have a big issue for you this morning to kick off the week, so let’s jump right in:

THE BIG STORY HERE AT HOME- White House national security advisory Jake Sullivan says there’s no defense pact with Saudi unless there’s normalization with Israel. Sullivan made the comment at Financial Times event over the weekend, saying “The integrated vision is a bilateral understanding between the US and Saudi Arabia combined with normalization between Israel and Saudi Arabia, combined with meaningful steps on behalf of the Palestinian people. All of that has to come together … you can’t disentangle one piece from the others.”

BUT, BUT, BUT… Reuters has joined Bloomberg in reporting that an agreement is in the works, citing multiple sources. And the New York Times’ Tom Friedman claims sources in Riyadh and DC tell him that “ the US and the Saudis are considering finalizing the deal and taking it to Congress with the stated proviso that Saudi Arabia will normalize relations with Israel the minute Israel has a government ready to meet the Saudi-US terms.”

A way of putting pressure on Netanyahu? Are the two news agencies picking up on a strategy that would see Riyadh and Washington tell the Israelis, in effect, “We’re in agreement on everything from a defense pact to normalization — but you need to recognize an independent Palestinian state. Are you in or out?”

Squint the right way, and Sullivan told the FT as much, saying “it will ultimately be up to the Israeli leadership and frankly ultimately the Israeli people can decide whether that’s a path they want to take or not.”

BACKGROUND- Agreements on at least three issues are in the works, reports suggest. Beyond the defense pact, we could see:

A new agreement on artificial intelligence that would see lost of investment in (and cooperation on) AI and quantum computing while we agree to “limit” the use of some Chinese technology in Saudi;
US help building a domestic nuclear power industry, a key “always-on” component of our drive to ensure energy security (and cement our position as an exporter of green and low-emission electrons).
Riyadh agree to continue to price oil in USD for the long term and not switch China’s RMB.

^^ We have more on the story in this morning’s Saudi in the News, below.

ALSO HAPPENING-

#1- Foreign Minister Prince Faisal bin Farhan is leading Saudi’s delegation to this year’s Islamic Summit Conference in Gambia’s Banjul, state news agency SPA reported yesterday. In a speech, Bin Farhan reiterated the Kingdom’s call for an immediate and permanent ceasefire in Gaza and an end to the suffering of the Palestinian people.

Iran, Pakistan meetings: Bin Fahan held one-on-ones yesterday with Iranian FM Hossein Amirabdollahian and Pakistan Foreign Minister Ishaq Dar. The event wraps up today.

#2- Residents looking to enter Makkah need to show proof of residency, state news agency SPA reported yesterday. Only people with residence permits issued by Makkah or permits to do Umrah or Hajj will be allowed into the city ahead of Hajj season. The measure came into effect on Saturday.

#3- Prince Badr bin Abdul Mohsen bin Abdul Aziz Al Saud passed away yesterday, according to state news agency SPA. The late prince was a renowned poet whose work has been sung by leading artists including Mohammed Abdu, the late Talal Maddah, Kadim Al Sahir, Assala and others.

HAPPENING TODAY-

The Environmental Investment Forum will open in Dammam in just a couple of hours at Asharqia Chamber’s HQ. The event offers a number of environmental investment and funding options to investors.

WEATHER- There’s a chance of rainfall in Riyadh today with a high of 35°C and a low of 22°C. Makkah will somehow see a moderate weather with a high of 39°C and a low of 26°C, while Al Taif will be mostly cloudy with a high of 29°C and a low of 18°C

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WATCH THIS SPACE-

#1- US investment giant BlackRock has locked in Capital Market Authority approval to have its Saudi unit manage investments, operate funds, and provide securities advisory in the Kingdom, according to a statement by the CMA.

That caps a big week for the world’s largest asset manager, which lined up a USD 5 bn commitment from the Public Investment Fund (PIF). The agreement will see BlackRock setting up a new entity — BlackRock Riyadh Investment Management — which will be run by BlackRock and PIF. The multi-asset platform will invest in multiple asset classes and will look to secure additional funding from local and foreign investors.

#2- Trade officials launch dumping probe: The General Authority for Foreign Trade has launched an investigation into allegations Chinese and Taiwanese companies are dumping stainless steel pipes on the Saudi market, a statement says. The investigation covers welded circular pipes.

Officials are increasingly active when it comes to dumping: Saudi imposed last month anti-dumping duties on seven imported products from ten European and Asian countries. Those include Iranian clinker, select car batteries from South Korea and superabsorbent polymer from five countries among others.

#3- Fines handed down in market-manipulation case. The Capital Market Authority says that the General Secretariat of Committees for Resolution of Securities Disputes has ordered 13 investors and other market participants to pay fines totaling nearly SAR 43 mn for illegally trying to influence the share prices of a number of high-profile listed companies between May 2020 and May 2021.

The CMA said it is receiving both individual and class action complaints from anyone who thinks they may have suffered losses as a result of the manipulation. They can file complaints here.

#4- Off-plan sales probe: The Real Estate General Authority has referred a developer to “relevant authorities” for violating rules on the sale and lease of off-plan projects, it said in a post on X. The developer began marketing for the project without permits in hand, it said, without providing further details or naming the company.

#5- One person died of food poisoning linked to local burger joint Hamburgini, state news agency SPA reported. The Health Ministry provided a breakdown of the 75 food poisoning linked cases reported in late April, saying that 43 people have been discharged from hospitals. 20 patients are currently at the ICU, while 11 are receiving medical care, according to the ministry.

#6- King Salman has issued a decree abolishing the title “His Excellency” for any senior officials convicted of corruption or treason, according to Okaz. Anyone convicted will also lose benefits and any honors or awards they had previously received.

THE BIG STORY ABROAD-

A ceasefire in Gaza and what’s next for investment juggernaut Berkshire Hathaway dominate the global business press on this busy Sunday morning.

#1- Hamas officials are in Cairo for ceasefire talks — and it’s going well, regional and international media report. “Hamas negotiators are prepared to accept the terms of an Egypt-brokered deal,” Bloomberg writes, while CNN cites Israeli and American officials as saying it could take a few more days to hammer out the finer points of a pact. Israeli official aren’t in the Egyptian capital, saying they’re waiting for Hamas’ formal answer.

In the works: A multi-week ceasefire (there’s no clarity on how long, exactly) and the release of Palestinian prisoners in exchange for Hamas letting go Israelis it has held hostage.

Time is of the essence: “Parts of Gaza are in ‘full-blown famine” the New York Times quotes the leader of the UN’s World Food Program as saying. The Times’ influential columnist Nicholas Kristof gave his column over yesterday to a photo taken by a US surgeon of a Palestinian mother speaking to her dead son. The boy died of “ complications from malnutrition,” Kristof writes. And the situation will only get worse as the summer heat picks up.

#2- Everyone from the Financial Times to Germany’s Handelsblatt are covering Warren Buffett’s big annual meeting, which the Oracle of Omaha calls Woodstock for Capitalists. Warren still likes Apple despite trimming his position and says he has faith in the guys he’s chosen to run his firm when he steps down. “Not only do I hope you come next year, but I hope I come next year,” the 94-year-old said.

Want to go deeper? CNBC has wall-to-wall coverage, while Reuters and Bloomberg are also on the story.

CIRCLE YOUR CALENDAR-

The Saudi Smash 2024 is underway. It’s the Kingdom’s first-ever professional table tennis event and say 53 matches played yesterday. Another 41 matches will take place today, including the first all-Saudi men’s doubles matchup, organizers say. The event is organized by World Table Tennis and the Saudi Table Tennis Federation and runs through 11 May. Games include men’s and women’s singles and doubles as well as mixed doubles.

A Saudi first: Ali Alkhadrawi and women’s world number 29 Hana Goda from Egypt took their mixed doubles round of 32 match 3-0, marking the first time a Saudi player has entered a mixed double match in the Kingdom.

Fakeeh Care is looking to raise up to SAR 2.9 bn from its Tadawul IPO

Private healthcare provider Fakeeh Care Group is looking to raise up to SAR 2.9 bn from its IPO on Tadawul’s main market in what is on track to be the largest share sale in the Kingdom so far this year.

Investor appetite is strong: Fund and portfolio managers fully covered the IPO in just the first hour that bankers started taking orders on Thursday, Bloomberg says. Bankers say they will price the transaction in the SAR 53.00-57.50 per-share range.

The UAE’s ADIA is emerging as a key buyer in Fakeeh Care IPO: UAE’s largest sovereign wealth fund Abu Dhabi Investment Authority (Adia) is is set to purchase 1.04 mn shares as a cornerstone investment in Fakeeh Care’s IPO, according to a supplementary prospectus (pdf). Alongside Olayan Saudi Investment — the other cornerstone investor — the two funds will buy 1.99 mn shares.

What’s next: Bookbuilding for institutional investors will continue until Wednesday, 8 May, while orders from retail investors will run from Tuesday, 21 May to Wednesday, 22 May. Bankers will price the sale on Tuesday, 14 May.

About the IPO: Fakeeh Care, formally Dr. Soliman Abdul Kader Fakeeh Hospital, is taking a 21.5% stake to market through an offering of both new and existing shares: It plans to offer 30 mn new shares and 19.8 mn existing shares held by the Fakeeh family. Upon completion of the offering, current shareholders (members of the Fakeeh family) will collectively own a 77% stake in the company. Check out the key documents in the IPO here on the transaction microsite.

The IPO by the private healthcare provider comes as listings in Saudi pick up pace. Bankers wrapped up on Thursday the institutional tranche of water treatment company Miahona’s IPO. Nearly USD 697 mn were raised through IPOs in the Kingdom so far, with the largest current IPO being Modern Mills which listed in March.

Saudi healthcare companies are on a roll: Al Hammadi (2015) and Saudi German Healthcare (2016) led the way with high-profile IPOs, with Dr Sulaiman Al Habib, pharma group Al Nahdi Medical, and drugmakers Jamjoom Pharma and Avalon Pharma all having followed suit. Aster DM Healthcare, meanwhile, is said to be looking to spin off its GCC unit with a dual listing on Tadawul and the Dubai Financial Market.

Advisors: Our friends at HSBC are acting as sole financial adviser. HSBC is joint bookrunner together with our friends at EFG Hermes as well as ANB Capital. Moelis is advising the selling shareholders, while AlRajhi Bank, Saudi National Bank, Arab National Bank, SAB, Alinma Bank and Bank Aljazira are serving as receiving banks.

Subscription period for Leaf Global’s IPO on Nomu to begin 26 May

Bookbuilding for Leaf Global Environmental Services’ IPO on parallel market Nomu will begin on Sunday, 26 May, Argaam reported, citing the company’s prospectus. The Jeddah-based environment consultant is preparing to float a 30% stake or 1.5 mn ordinary shares on Nomu at SAR 5 apiece.

The subscription period for the share sale, which is only open to qualified investors, runs through Thursday, 30 May. Investors can place orders for a minimum of ten shares and a maximum of 250k shares each. Final allotment of shares is slated for Thursday, 6 June.

A look at ownership post-IPO: The share sale will see Ghaith Saleh Mohammed Bin Laden — one of the company’s two shareholders — sell down to a 4.5% hold from 34% before the transaction. Abdullah Saleh Mohammed Bin Laden will sell just 0.5%, retaining a 65.5% stake post-offering.

About the company: Established in 2007, Leaf offers multiple environmental consultancy services, including environmental impact assessment, ground and environmental surveys, marine environment services and monitoring and others. Its clients include Aramco, Acwa Power, Neom, Maaden, Samsung, Saudi BinLadin Group, and others.

ADVISORS- Al Khair Capital is quarterbacking the transaction as financial advisor and lead manager, while receiving banks include SNB Capital, Al Rajhi Capital, Saudi Fransi Capital, Riyad Capital, Albilad Capital, AlJazira Capital, Alinma Investment and Derayah Financial.

Local lenders may need to tap external funding sources amid diversification plan, S&P Global says

Local lenders may need to tap external sources to finance future borrowing needs on the back of a shift in funding profiles, according to a report by S&P Global. It said that growing needs of the Kingdom’s diversification plan, along with loan-to-deposit ratio north of 100%, could push banks to turn to international debt markets or mortgage backed sukuk issuances —or liquidate part of their portfolios — to narrow the gap.

By the numbers: The Kingdom’s loan-to-deposit ratio broke past 100% in 2022, up from 86% at the end of 2019, with corporate borrowing expected to drive this trend over the coming years, according to S&P Global. It also highlighted what it described as a “maturity mismatch” between lending and deposits in banks’ balance sheets, where mortgages accounted for 23.5% of total bank assets at the end of 2023, up from 12.8% in 2019 on the back of government efforts to boost home ownership. On the plus side: the “relative stability of Saudi deposits.

On the table: Liquidating a portion of their investment portfolio could leave banks booking previously unrealized losses. S&P seems to think it’s more likely that lenders will issue mortgage-backed sukuk (MBS) to get assets off their balance sheets and shore up liquidity. Banks could do this independently, but the Saudi Real Estate Refinance Company (SRC) could also be a player: At the end of last year, it “bought about SAR 26.7 billion, or about 5% of banks' total mortgage-lending” and could sell them off as government-backed MBS. Banks could also do private MBS sales.

S&P says most banks like their mortgage portfolios: Default rates are low, it’s relatively simple to repossess properties from defaulters, and bankers like the profitability of mortgages, it says.

That makes it likely that Saudi lenders will continue to tap international debt markets for the next three to five years, flipping to “a net external-debt position within a few years,” with net foreign liabilities expanding from about USD 19.2 bn at the end of 2023 to meet the funding requirements of strong lending growth and amid lower deposit expansion.”

Robo-advisor Abyan Capital closes series A round with participation from three VCs

Robo-advisory Abyan Capital raised SAR 68 mn (USD 18 mn) in a Series A round led by early stage tech-focused VC firm Saudi Technology Ventures (STV), according to a joint press release. Aramco-backed VC fund Wa'ed Ventures and Riyadh-based VC firm RZM investment also joined the round. The company didn’t offer information on its capital structure following the offering. Two founders we reached out to for comment didn’t reply to messages by dispatch time this morning.

What’s Abyan? Founded in 2022 by Abdullah Al-Jeraiwi (LinkedIn), Omar Al-Mania (LinkedIn), and Saleh Al-Aqeel (LinkedIn), Abyan says it provies “automated, easy-to-use, and shariah-compliant investment and savings solutions,” allowing retail investors to “efficiently manage their investments, optimize their asset allocations, and achieve their financial goals with ease.” The company offers educational resources for amateur investors here.

Want to go deeper? Download the app (App Store | Google Play).

Use of proceeds: Abyan plans to use the fresh funds to improve its platform, expand its product offering, and broaden its market presence to reach more customers, and grant them greater access to global and local financial markets.

Investment solutions: The company offers three multi-asset investment portfolios including a low-risk portfolio with a distribution of 70% sukuk, 20% real estate, and 10% stocks, a moderate-risk wallet — 45% stocks, 30% sukuk, and 30% real estate — and a high-risk portfolio (70% stocks and 30% sukuk and real estate), according to its website. The minimum deposit for investment through the Abyan platform is SAR 100k which can be deposited through Apple Pay, Mada cards, and / or bank transfer.

What they said: “Abyan has exceeded deposits of over SAR 1.4 bn and invested more than 100k portfolios. And we will be launching new, diversified products soon with the goal of making Abyan a digital retail investment house,” CEO Abdullah Al-Jeraiwi said.

IN CONTEXT- Local robo-advisors manage assets of more than SAR 1 bn, Capital Market Authority official Yazeed Al Demaigi said in December 2023.

What are robo-advisors? They are financial advisory and asset management firms that look to keep costs low by using algorithms to automate some of their operations, including coming up with portfolio splits and making decisions about asset allocation.

Acwa Power signs SAR 18.2 bn power purchase agreement for 5 GW wind farm in Uzbekistan

Acwa Power inches closer to another Uzbek wind farm: Renewables giant Acwa Power signed a SAR 18.2 bn (c. USD 4.9 bn) power purchase agreement with the National Electric Grid of Uzbekistan (Negu) to develop a new 5 GW wind farm — set to become the largest in Central Asia, it said in a disclosure to Tadawul. The 25-year contract for the Aral 5GW wind independent power producer project is under a build, own, operate, and transfer model.

What we don’t know: Information about the construction timeline and financing was not made public.

Beating its own record: The Aral project — which is the 15th project by Acwa Power in Uzbekistan — beats a planned 1.5 GW wind energy farm by Acwa Power that it said last year would be the largest in Central Asia. It is the second agreement Acwa Power signs with Negu for a wind plant in nearly a month after it signed a SAR 985 mn power purchase agreement to develop a 200 MW wind farm known as Nukus 2 as well as a battery energy storage system. This brings Acwa Power’s total investments to Uzbekistan at USD 13.9 bn, with the Central Asian country becoming its second largest after Saudi.

BACKGROUND- Acwa has been busy in Uzbekistan: Last year, Acwa signed three power purchase agreements totaling USD 2.5 bn with Negu and the country’s Investment, Industry, and Trade Ministry for 1.4 GW worth of solar projects and three battery story facilities with capacity of 1.5 GWh. It is also set to develop a green hydrogen plant and a green ammonia pilot project in Uzbekistan, the first of their kind in the Central Asian country.

IN CONTEXT- Officials in Saudi and Uzbekistan signed agreements worth USD 12 bn in November that will see the Kingdom invest in everything from energy, agriculture, chemistry and IT to pharma and infrastructure. The announcement was made as officials broke ground on a pilot green hydrogen production project implemented by Acwa Power in the Tashkent region.

DEBT WATCH-

Acwa signed two debt financing agreements worth SAR 5.7 bn (c. USD 1.5 bn) each for two of its 1.8 GW combined cycle power plants at home— Taiba 1 and Qassim 1, according to two separate disclosures to Tadawul (here and here).

Who’s on board? The senior debt was funded by a mix of local and international lenders, including Riyad Bank, SNB, Alinma Bank, Saudi Investment Bank, SAB, Standard Chartered and Bank of China. Acwa Power holds a 40% stake in each project. A consortium led by the Saudi Electricity Company signed power purchase agreements worth SAR 14.6 bn for the two power stations.

No real estate tax payable if you (effectively) sell yourself a property you already own –Zatca

Property owners aren’t on the hook for real estate transaction tax (Rett) if they’re just moving ownership from one pocket to another, the Zakat and Tax Authority (Zatca) said in a statement.

The 5% Rett comes into effect any time an owner sells a property to someone else. Zatca is offering comfort to property holders that they won’t be taxed in some cases where they make their real estate assets an “in-kind” contribution to another investment.

Property owners won’t be required to pay the Rett if:

They’re contributing a property they own to a real estate investment fund instead of using cash to subscribe to the fund. Owners can contribute a property to a fund at any time and different kinds of real estate funds (subject to a handful of terms and conditions);
They’re transferring ownership of a property to a company in which they already hold shares.

99% of everyone in Saudi has access to internet, gov’t data shows — and more than half of us are online >7 hours a day

More than half of internet users in the Kingdom spent more than seven hours a day online in 2023, according to the latest Saudi Internet report (pdf) by the Communications, Space, and Technology Commission.

Our top 10 sites (in order of popularity):

Google
Youtube
X
Facebook
Tiktok
Instagram
Wikipedia
WhatsApp
Amazon
Madrasati

More than 60% of traffic in Saudi went through Chrome, followed by Safari at 31.9%.

Internet penetration inched up 0.4% y-o-y to 99% in 2023, with 99.3% of men and 98.5% of women having access.

Gen Z and younger millennials are the most online, with 100% internet penetration in the 25-29 age group. Older folks are the least, with 77.3% of people in that demographic having internet access.

Peak hours: 9pm to 11pm daily in 2023, with Friday of every week usually seeing the most traffic. December was 2023’s busiest month in terms of internet usage. Mobile phones were the primary access point for 98.9% of users last year, followed by desktops/laptops, tablets and others (think smartwatch, gaming platforms, e-readers).

Internet use was a mix of everything: Top activities online ranged from downloading apps to buying goods and services online to staying updated on news to downloading games and movies to sending emails among others.

Good news for Digital Saudi: Online government services last year saw 95.5% usage rate last year, followed by digital banking at 73.6% and e-commerce at 63.7%.

The most-downloaded apps: Nafath (the Kingdom’s official digital identity application), followed by online fast-fashion retailer Shein and TikTok. AlRajhi Bank had the most popular fintech app, followed by Stc Pay and Tabby. Ninja topped delivery apps, followed by HungerStation and the McDonald’s app.

Bank AlJazira net income soars 47% in 1Q 2024 as transformation story delivers results

BANK ALJAZIRA-

Bank AlJazira’s net income rose 47.3% y-o-y to SAR 300.4 mn in 1Q 2024 on the back of a 13% rise in operating income, it said in a disclosure to Tadawul. Net financing and investment income rose 11%, reflecting better income from its corporate segment, in line with the trend it posted in 2023.

SOUND SMART- Bank AlJazira is pushing a transformation story (pdf) designed to grow its financing while locking in better-priced feedstock through an improved deposit mix. The corporate segment was important to the bank last year and continues to be in 1Q as it looks to grow selectively in the mid- and large-sized segments and pursue “smart growth” in the SME segment, all with a focus on trade finance and improved risk management. It’s also looking to position itself as the “bank of choice for affluent customers.”

BAHRI-

National shipping company Bahri saw its net income fall 8% y-o-y in 1Q 2024 to SAR 453 mn, down from SAR 492.6 mn a year earlier, it said in a disclosure to Tadawul. Revenues dropped 2.6% y-o-y to reach SAR 2.3 bn.

Driving the plunge: Bahri reported lower revenues from its oil and chemical transport units as well as logistics.

Blame it on the Houthis who have held the Red Sea trade hostage for months, causing "the biggest diversion of international trade in decades," according to Bloomberg. The Houthis are looking to put pressure on Israel, but their actions have started to have an impact on some Gulf markets.

TAWUNIYA-

Tawuniya’s net income more than doubled y-o-y to SAR 197 mn in 1Q 2024 on the back of “significant improvement” in ins. services, it said in a disclosure to Tadawul. Its ins. revenues rose 28.7% y-o-y to SAR 4.4 bn on the back of better results from its health, automotive and general ins. lines of business.

NYT’s Tom Friedman says he has the inside scoop on Saudi-US pact

It was a mixed weekend, with no single story driving the conversation on Saudi in the international press.

On an agreement with the US: Israeli media sounds more optimistic than do Foreign Policy and CNN, with the Times of Israel saying that Riyadh and Washington a “very close” to an agreement that hinges on how normalization plays out, citing remarks by State Department spokesman Matthew Miller on Thursday.

NYT columnist Thomas Friedman claims to have in inside scoop: “Get out of Gaza, freeze the building of settlements in the West Bank and embark on a three- to five-year ‘pathway’ to establish a Palestinian state,” he says of Saudi’s conditions. “The good news is that they are 90 percent done with the mutual defense treaty that they have drawn up, both sides tell me,” he writes.

What’s next? “The US and the Saudis are considering finalizing the deal and taking it to Congress with the stated proviso that Saudi Arabia will normalize relations with Israel the minute Israel has a government ready to meet the Saudi-US terms,” Friedman writes.

Bloomberg continues to up the volume of coverage it is giving the Kingdom, covering how global banks are moving staff to Riyadh in the wake of the regional HQ law and the Saudi Pro League’s ambition of landing a “Drive to Survive” style documentary with a major streaming video platform.

AND- Liv Golf looks like it wants to own golf courses — and mixed-use developments: “Think about LIV owning all their own golf courses, each team having a home venue and they host. And now you can build out around that. It's not just a golf course. You bring in education, you bring in hospitality, you bring in real estate, you bring in merchandise, you bring in management, you bring in all these other different opportunities that the game of golf has to deliver to a community, to a region. We are gonna be doing that,” said CEO and Commission Greg Norman.

Lucid to work with Kacst on joint research for EV infrastructure. Plus: tourism, M&A and logistics

AUTOMOTIVE-

Lucid + Kacst team up for EV technologies research: The Public Investment Fund-backed EV maker Lucid signed a MoU with King Abdulaziz City for Science and Technology (Kacst) to work together on joint research for EV infrastructure and aerodynamics, according to a press release. The agreement will see them use Kacst facilities to study, test and evaluate EV batteries, autonomous driving and artificial intelligence technologies. They will also assess the performance of EVs in regards to the local weather. The joint research is scheduled for launch in 3Q 2024, according to the statement.

BACKGROUND- The PIF’s investments in a lower-carbon future include national electric vehicle brand Ceer and investments in US-headquartered Lucid Motors among others. Ceer awarded in March a SAR 5 bn construction contract for its electric vehicle complex to local contractor Modern Building Leaders. It expects to complete works at its electric vehicle complex within two years. Lucid inaugurated last year its first overseas production facility in King Abdullah Economic City (Kaec). It plans to produce 155k EVs yearly in the Kingdom once it hits full capacity here in 2025. It said in March that it is raising USD 1 bn in capital from PIF unit Ayar Third Investment. The potential proceeds will finance the company’s capex and working capital, among other things.

DEBT WATCH-

ICT solutions provider Perfect Presentation for Commercial Services (2P) has signed a SAR 149 mn Shariah-compliant bank facility from Banque Saudi Fransi (BSF) to fund newly awarded projects, it said in a disclosure to Tadawul. The facility runs till 31 December of this year.

TOURISM-

#1- The Saudi Tourism Investment Company (Asfar)— a wholly-owned subsidiary of the PIF— plans to set up tourist destinations in small cities nationwide to bridge the gap in the hospitality sector in those areas, its CEO Fahd Ibn Mushait told Aleqtisadiah. The move comes as part of the company’s strategy to transform smaller cities into tourism and entertainment hubs through partnerships with the private sector, he said.

IN CONTEXT- Asfar is currently developing projects in Al Baha, Yanbu, Al Ahsa and Taif in collaboration with private sector players such as Aoun, Al Tamimi, Batterjee Group and others, he said.

#2- Abu-Dhabi based hotel operator Rotana Hotels will launch seven hotels across the Kingdom over the next five years, Argaam reported. The move is part of a broader expansion plan that will bring the total of Rotana-branded hotel rooms to 4.4k at 16 hotels across the Kingdom. It marked the launch of its five-year expansion strategy with the opening of its Rotana Dar Rayhaan in Al Khobar. The hotel operator currently runs a total nine hotels locally between Riyadh, Jeddah, Al Khobar and two other cities.

LOGISTICS-

New shipping service added to Jeddah port: The Saudi Port Authority (Mawani) has added a new shipping service by local feeder and short sea shipping operator Folk Maritime to Jeddah Islamic Port, according to a statement. The shipping service — dubbed the Port Sudan Service (PSS) — will connect Jeddah Islamic Port with Port Sudan. The service, which has a capacity of up to 700 standard containers via regular weekly trips, aims to facilitate market needs and growing trade in the region.

BACKGROUND- Mawani has recently added a new shipping service — NRS by Folk Maritime — to its Jeddah Islamic Port to boost connectivity along ports in the North Sea. The service, which will offer a capacity of up to 1.3k TEUs, will link Jeddah Islamic Port to Yanbu Commercial Port, Neom Port, Jordan’s Aqaba and Egypt’s Sokhna.

M&A WATCH-

Taqat Mineral wants all of Bayan Al Naql: Taqat Mineral Trading signed a non-binding MoU to fully acquire scrap recycling firm Bayan Al Naql, it said in a disclosure to Tadawul. The four-month MoU sees both parties initiating discussions on the possibility of a transaction. A binding agreement should be finalized before 1 September unless both parties agree to an extension, according to the disclosure. No further details were disclosed.

REMEMBER— Taqat Mineral rang the bell on Nomu in March after floating a 20% stake.

DEVELOPMENT-

The Saudi Fund for Development (SFD) is set to fund a water treatment and biogas energy general project plant in El Salvador under a freshly-inked MoU, it said in a statement. SFD said the MoU “represents a step towards” the financing of the planned project on the Acelhuate River. It said a development loan will be provided by the SFD, with an agreement set to be signed later. No financial information or timeline for the project were disclosed.

Warren Buffett praises Apple after trimming positions — and is a bit freaked out about AI

It’s a quiet morning on Planet Finance, with no single story having dominated the markets pages over the weekend.

Warren Buffett is getting attention on both sides of the Atlantic and in Asia. Berkshire Hathaway’s annual meeting is this weekend, and it’s generating lots of headlines. Here’s the Oracle of Omaha on:

Apple: Buffett went out of his way to praise Apple — his most important holding — after Berkshire trimmed its stake. The WSJ thinks the size of the company’s stake in Apple worries some investors.

Artificial intelligence: AI-powered scamming will be a global growth industry — and likened the technology’s potential impact on the world to that of nuclear weapons (watch, runtime: 1:29).

MARKETS THIS MORNING-

Shares in Europe and on Wall Street closed up on Friday.

TASI	12,352	+0.1% (YTD: +3.2%)
MSCI Tadawul 30	1,547	-0.2% (YTD: -0.2%)
NomuC	26,458	+0.4% (YTD: +7.9%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	26,114	+3.3% (YTD: +4.9%)
ADX	9,037	+0.2% (YTD: -5.6%)
DFM	4,143	+0.1% (YTD: 2%)
S&P 500	5,128	+1.3% (YTD: +7.5%)
FTSE 100	8,213	+0.5% (YTD: +9.6%)
Euro Stoxx 50	4,921	+0.6% (YTD: +8.9%)
Brent crude	USD 82.96	-0.9%
Natural gas (Nymex)	USD 2.14	+5.3%
Gold	USD 2,309	-0.04%
BTC	USD 63,919	+1.4% (YTD: 44.3%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.1% on Thursday on turnover of SAR 6.5 bn. The index is up 3.2% YTD.

In the green: Al Baha (+7.7%), Raydan (+7.3%) and Tawuniya (+6.6%).

In the red: Chemical (-5.4%), Marafiq (-5.2%) Zoujaj (-4.8%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.4% on Thursday on turnover of SAR 77.1 mn. The index is up 7.9% YTD.

In the green: Future Care (+7.5%), NGDC (+6.3%) and Apico (+5.6%).

In the red: Al Rashid Industrial (-10.4%), Almuneef (-6.6%) and Taqat (-5.8%)

CALENDAR

MAY

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

6-9 May (Monday-Thursday): Saudi Smart Manufacturing, Riyadh.

6-9 May (Monday-Thursday): Saudi Smart Logistics, Riyadh.

13-15 May (Monday-Wednesday): Smart Future Expo, Riyadh.

13-15 May (Monday-Wednesday): Poultry Expo Riyadh.

13 May (Monday): Saudi Giga Projects, Riyadh.

14-15 May (Tuesday and Wednesday): Saudi Great Futures, Riyadh.

19-21 May (Sunday-Tuesday): Saudi Energy Convention, Riyadh.

20-21 May (Monday-Tuesday): Future Projects Forum, Four Seasons Hotel, Riyadh.

20-22 May (Monday-Wednesday): Future Aviation Forum 2024, Riyadh.

21-23 May (Tuesday-Thursday): The Saudi Food Show, Riyadh.

27-28 May (Monday-Tuesday): Smart Data & AI Summit Saudi, JW Marriott Hotel, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

4-7 June (Tuesday-Friday): Saudi Sports Show, Riyadh.

4-7 June (Tuesday-Friday): Aqarat Expo, Riyadh.

5 June (Wednesday): World Environment Day.

14-22 June (Friday-Saturday): Banks and capital markets closed for Eid Al Adha holiday.

AUGUST

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

SEPTEMBER

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

17-19 September (Tuesday-Thursday): EV Auto Show, Riyadh.

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

24-26 September (Tuesday-Thursday) Saudi Infrastructure Expo, Riyadh International Convention and Exhibition Center, Riyadh.

NOVEMBER

2-9 November (Saturday- Saturday): WTA Finals, Riyadh.

11-14 November (Monday-Thursday): Cityscape Global, Riyadh.

25-27 November (Monday-Wednesday): World Investment Conference, Riyadh.

26-28 November (Tuesday-Thursday): Saudi Electricity Expo, Riyadh.

DECEMBER

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

Signposted to happen sometime in 2024:

The AFC Champions League Elite

2025

FEBRUARY

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

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