FDI inflows were down last year — and so were outflows

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WHAT WE’RE TRACKING TODAY

THIS MORNING: EY declares MENA its regional headquarters and KFH says it’s eyeing more than one possible Saudi target

Good morning, wonderful people, and happy almost-THURSDAY. We have a packed, finance-heavy issue for you this morning — and word that EY is making a big move by declaring KAFD its regional headquarters.

HAPPENING TODAY-

#1- Yaqeen Capital shares will also start trading on Nomu, Tadawul said in a statement. Yaqeen Capital — which is itself a top advisor on Nomu IPOs — is selling a 20% stake. The Riyadh-based advisor, brokerage house, and asset manager priced its shares at SAR 40 apiece.

ADVISORS- Alinma Investment is quarterbacking the transaction as the sole lead manager and financial advisor.

Speaking of IPOs- Automotive oil manufacturer Neft Alsharq’s shares gained in their first day of trading in Nomu, rising 14.4% to SAR 4.10 apiece at yesterday’s close. Neft’s offering of a 20% stake was oversubscribed as it priced its IPO at the top range of SAR 3.60 per share.

#2- A Saudi delegation is at the 2024 Global Logistics Forum, which kicked off yesterday in Shanghai and wraps tomorrow. The delegation includes representatives from the transport and logistics services and investment ministries, the Transport General Authority, Mawani, and Saudi Arabia Railways, among several others. The forum brings together over 680 visitors from 67 countries delving into multiple facets of the logistics industry, including such as logistics services, air cargo, ports & shipping logistics, road & railway transportation, logistics real estate, fresh foods logistics, smart logistics, logistics equipment, and special purpose vehicles.

#3- Look for more news out of the World Economic Forum’s “annual meeting of the new champions” in China, where Economy Minister Faisal Al-Ibrahim spoke yesterday. Al-Ibrahim repeated the Kingdom’s AI pitch in a session yesterday, telling delegates that we have “a lot to offer” top global players in artificial intelligence. Arab News has a rundown on his remarks and you can check out the event website here. The gathering runs through Saturday.

PSA- WEATHER- Riyadh will see a daytime high of 44°C today and a nighttime low of 31°C. In Makkah, the mercury will peak at 43°C before dropping to a balmy 30°C, while Madinah will see a high of 45°C during the day and 29°C at night.

HAPPENING THIS WEEK-

A Saudi delegation is in Washington for a meeting of the Saudi-US Trade and Investment Council, which kicked off on Sunday and will conclude this Friday, 28 June, according to the Saudi Gazette. The delegation, led by Saudi General Authority of Foreign Trade (SGAFT) Deputy Governor Abdulaziz Alsakran, will also include reps from the Public Investment Fund as well as the commerce, energy, investment, education, tourism, and industry ministries. Some 20 Saudi agencies will attend, according to an SGAFT statement.

Our friends at the US Chamber of Commerce will be organizing on Friday a private-sector meeting on the sidelines of the government-to-government TIFA meeting, we’re told. The US Chamber is also organizing the SelectUSA Investment Summit on Wednesday.

WATCH THIS SPACE-

#1- Saudi is halfway to achieving the goals it laid out in Vision 2030, Economy and Planning Minister Faisal bin Fadel Al Ibrahim said at the World Economic Forum’s annual meeting of the New Champions, reports state run news agency SPA. The minister did not disclose further details or figures on the Kingdom’s progress on its goals, but said that the government’s priorities moving forward include ramping up economic diversification and doubling down on the development of human capital.

REFRESHER- Saudi Vision 2030 (pdf) has set several goals to reform the Kingdom and create a stronger, more diversified economy, develop its governance to create what the vision calls “an ambitious nation,” and create a “vibrant society.” The goals include lowering the national unemployment rate by nearly 5 percentage points to 7%, growing SME contributions to GDP, introducing more women in the labor force, growing the Public Investment Fund’s assets more than tenfold to SAR 7 tn, and increasing the private sector’s contribution to the economy.

#2- UPDATE- Kuwait Finance House (KFH) is “conducting careful studies” on potential expansion in Saudi, including “more than one bank,” it said in a statement to Boursa Kuwait. KFH also said that it has yet to sign an MoU or any other agreement with any Saudi banks. The statement came in response to media reports we picked up yesterday claiming that KFH is exploring the acquisition of a “significant stake” in Saudi Investment Bank.

#3- EY MENA is relocating its regional HQ to King Abdullah Financial District (KAFD) in Riyadh later this year, it said in a statement. The HQ will also feature the Riyadh EY Wavespace Center, a collaborative space spanning 930 sqm, that features advanced tech like AI, cloud computing, and blockchain.

AND- KIA is following suit: The Kuwait Investment Authority, that country’s sovereign wealth fund with USD 800 bn in assets under management, will open an office in Saudi as it aims to bolster “trade and investment exchange” between the two countries, it said in a post on Instagram. Kuwait state news agency Kuna has more.

REMEMBER- Earlier this year, the government rolled out tax incentives for foreign companies that relocate their regional headquarters to the Kingdom. The incentives are part of a plan that is a cornerstone of Crown Prince and Prime Minister Mohammed bin Salman’s drive to build a diversified, globally significant non-oil economy, and has been in the works since February 2021.

#4- Barber shops across the country are now banned from using tanning, tattoo, laser, and acupuncture devices after the Municipal, Rural Affairs, and Housing Ministry issued a decision, Okaz reports citing a government source. The draft regulations on barber shops also ban women from working at male-only barber shops unless the shop’s services are limited to children.

SPORTS-

Is Al Qadsiah closing in on Real Madrid’s Fernandez? Real Madrid captain Nacho Fernandez is officially leaving the club after a 23-year stint as his contract expires, the club said in a statement. The 34-year old is set to leave the European Champions after securing six Champions League titles with Los Merengues. His departure comes after weeks of unconfirmed media reports linking him with multiple Saudi clubs, especially Al Qadsiah, which the New York Times says remains “imminent.”

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THE BIG STORY ABROAD-

An eclectic mix of stories is playing out across the front pages of the global business press, with coverage of the EU’s latest bid to “tame” big tech playing out alongside stories about Volkswagen, Citigroup, and the prospect of war in Asia.

The Financial Times is going all-in with its coverage of how European Union regulators are looking to bring Big Tech to heel. Earlier this week, the bloc accused Apple of breaking so-called “gatekeeper rules”, for which they’re threatening to fine the company up to 10% of its global revenues. Yesterday, they went after Microsoft with antitrust violations over Teams.

Those are just the latest charges the EU has levied against big US tech firms, and Apple is sending a message of its own: The company is delaying the rollout to users in the EU of a bunch of new features in the new iOS due out this fall — including Apple Intelligence — because of uncertainty about how the EU will view them under the Digital Markets Act.

A must read for those of you who want to go deeper: What are the battle lines between the EU and Big Tech?

MEANWHILE- Volkswagen is getting prominent front-page play in the FT, the Wall Street Journal, and Handelsblatt after saying it will invest up to USD 5 bn in EV maker Rivian and the FT says time is running out for Jane Fraser’s turnaround bid at Citigroup.

CLOSER TO HOME:

The Israeli military must start drafting ultra-Orthodox Jews, the country’s supreme court has ruled. (New York Times)
Rioters protesting taxation in Kenya tried to storm the country’s parliament. Five have so-far been killed in clashes with police. (Reuters)

JUST WHAT WE NEED: Another regional war. The Philippines’ ambassador to Washington, Jose Manuel Romualdez, has for months been beating the drum about the prospect that conflict with China over a reef in the South China Sea could in turn spark a regional war. He’s previously talked up the idea with the Japanese press, and President Ferdinand Marcos Jr. recently said in a speech that it won’t start the war — but “won’t be intimidated” by China, either. The Financial Times has since lined up its own interview with Romualdez, and it’s getting front-page play this morning.

CIRCLE YOUR CALENDAR-

The International Chemistry Olympiad — a competition for the world’s brightest chemistry students — will kick off in Riyadh on Sunday, 21 July. The three-day annual event is set to take place in King Saud University and will see teams of four students and two mentors from around the world undergo practical and theoretical assessments in chemistry.

The inaugural Aussie Expo in Riyadh will open its doors to visitors from Monday, 21 October to Tuesday, 22 October at the KAFD Conference Centre in Riyadh. Held under the theme “Accelerating Partnerships, Unlocking New Opportunities,” the one-day event will showcase potential investments between Saudi and Australia in agriculture, mining, technology, infrastructure, healthcare and education sectors. It is organized by Australian conglomerate Trademark Group of Companies seeking the entry of Australian firms to Saudi and the GCC.

Saudi FDI inflows and outflows were both down in 2023, Unctad report shows

FDI inflows into Saudi fell 56% y-o-y to USD 12.3 bn in 2023, bogged down in part by cross-border M&A transactions, which saw net outflows, according to the UN Trade and Development’s (UNCTAD) latest World Investment Report (pdf) and its regional trends breakdown (pdf).

FDI outflows from the Kingdom also fell 40.4% y-o-y, coming in at USD 16.1 bn in 2023, the report says. Saudi remains among the 20 economies with the highest value of FDI outflows, sitting just above Denmark (USD 15 bn in outflows) and India USD 13 bn in outflows).

IN CONTEXT- Direct investment into Saudi grew 32% y-o-y in 4Q 2023 to USD 5.1 bn, according to Saudi Invest’s Economic and Investment Monitor. From 2017-2022, Saudi averaged USD 17 bn in FDI inflows, according to Bloomberg.

How did others in the region do last year?

The UAE saw its inflows grow 35% y-o-y to USD 30.7 bn, while its outflows fell 10% to USD 22.3 bn;
Egypt’s FDI inflows fell by 13.7% y-o-y to USD 9.8 bn, while outflows increased 14% to USD 390 mn;
Inflows for Bahrain grew 2.5x y-o-y to USD 6.8 bn, outflows were down 42.9% to USD 1.1 bn;
Kuwait’s inflows almost tripled y-o-y to USD 2.1 bn, as its outflows fell 54.5% to USD 11.2 bn;
Morocco’s inflows decreased 51.5% y-o-y to USD 1.1 bn, while outflows increased 30.4% y-o-y to USD 836 mn;
Qatar recorded negative inflows of USD 474 mn from inflows of USD 76 mn a year earlier. Meanwhile, it recorded negative outflows of USD 191 mn.

A look at Asia: While FDI flows to developing Asia fell 4.7% y-o-y to USD 621 bn in 2023, it remained the largest recipient of FDI globally accounting for 50% of total global inflows. FDI inflows to West Asia — which includes Saudi, UAE and Turkey — fell 9% y-o-y during the period on the back of lower M&A sales. However, the region saw more greenfield projects and international project finance agreements last year in comparison with others in Asia. The number of international project agreements in the region nearly doubled to 94 in 2023 at a value of USD 57 bn.

Arabian Mills says it will sell a 30% stake on Tadawul

Another milling company is making its way to Tadawul: Arabian Mills Food Products is planning to offer a 30% stake on Tadawul’s main market, according to a statement from the Capital Market Authority (CMA). Arabian Mills, previously known as Second Milling Company, has received CMA approval for the offering, which would see it sell some 15.4 mn shares. The CMA provided no further details other than to offer its standard note that the milling company’s prospectus would be published “within sufficient time prior to the start of the subscription period.”

With a note from Nadec: Tadawul-listed dairy giant Natural Agricultural Development Company (Nadec) — which owns a 14.9% stake in Arabian Mills with a book value of SAR 125.2 mn — noted the CMA’s approval of the offering, according to a disclosure to Tadawul. It said the financial impact “cannot be accurately specified at this time” as it remains contingent on valuation of the company and obtaining necessary approvals.

About the company: Arabian Mills operates three plants split between Riyadh, Jazan, and Hail with a combined milling capacity of 4.9k tonnes per day, according to its website.

All part of a wave of privatization: Arabian Mills is among several state-owned milling firms that were sold by the government to the private sector in recent years. It was acquired in 2021 by a consortium that includes Nadec, Olam International, Al Rajhi International for Investment Company and Abdulaziz Al Ajlan and Sons, Al Rajhi International for Investment Company and Olam International for SAR 2.1 bn. Since then, the privatized millers have sought share sales.

It’s not the first miller to IPO this year: Modern Mills Company (MMC), previously known as Second Milling Company, made its debut on the main market in March after selling a 30% stake in the IPO which saw strong demand from retail investors. priced the IPO top of the range at SAR 48.00 a share, valuing the company at a SAR 3.9 bn. Our friends at First Milling led the way last year when they went public with a USD 266 mn IPO.

With one more to come? The Fourth Milling Company (MC4) is also mulling and IPO this year. MC4 tapped Riyad Capital as financial advisor for the transaction back in January. Sources told Bloomberg at the time that the sale could happen in 1H 2024.

WHAT’S NEXT?

Heavy investor demand and good aftermarket performance has been the hallmark of recent IPOs including those of fintech player Rasan, aluminum products maker Talco, Fakeeh Care, and labor agency Smasco. Who else is in the pipeline?

Hotels and resorts operator Boudl has filed to go public;
Electronics retailer Extra plans to IPO the unit that owns and operates Tasheel, its consumer finance arm, with many in the market expecting the transaction will now come in fall;
Fourth Milling Company is in the pipeline;
Singapore’s Olam Group is mulling the IPO of its Olam Agri subsidiary on Tadawul;
Hypermarket operator Lulu is said to be eyeing a dual listing on Tadawul and ADX;
Perfume maker Arabian Oud is said to have appointed bankers ahead of a share sale;
PIF-backed lender Riyad Bank is considering the listing of its investment banking arm Riyad Capital ;
Nupco — a unit of the PIF — has reportedly tapped Rothschild & Co as financial advisor for its potential Tadawul IPO;
Budget airline Flynas is reportedly looking to go public this year.
Aster DM Healthcare looks set to spin off its GCC assets and seek a dual listing on Tadawul and in the UAE.

Tadawul sees “high level of activity” in 1Q 2024 with turnover and TASI up

The value of stocks traded on Tadawul rose 60.5% q-o-q to SAR 576 bn in 1Q 2024, marking a “high level of activity” on the market during the quarter, according to the Saudi Exchange’s Capital Market Review for 1Q (pdf). The total number of traded stocks grew 32% q-o-q to c. 35 mn stocks.

Tadawul’s aggregate market capitalization was down 2.9% q-o-q to SAR 10.9 trn even as total value of shares traded was up. The Tadawul All Share Index (TASI) gained 3.6% q-o-q and closed at 12.4k at the end of the first quarter. Three companies listed on the main market during Q1, bringing the total number of listed companies on Tadawul to 234.

A look at how Nomu fared: The value of stocks traded on parallel market Nomu nearly doubled q-o-q to SAR 3.3 bn, according to the report. Its market capitalization was up 5.2% q-o-q to SAR 50.8 bn. NomuC gained 6.1% q-o-q closing at 26k points during the quarter. The parallel market saw the addition of six more companies, bringing the number of listed companies to 85.

With a key milestone: The total number of listings on Tadawul across all securities clocked in at 400 in March 2024 — which officials said was a “clear testament to the work the Saudi Exchange and Tadawul Group have undertaken to support and drive rapid growth and change within the Saudi capital market.”

The local exchange welcomed 13 new listings in 1Q 2024, including:

Three IPOs on the main market;
Six Nomu IPOs;
One corporate sukuk;
Two sovereign debt issuances,
One ETF listing

Neither Tadawul nor Nomu saw any delistings during the quarter. They collectively raised SAR 7.3 bn (c. USD 1 bn) in IPO proceeds in 1Q 2024 after raising SAR 13 bn in 2023 to account for 70% of GCC IPOs.

To name a few: Regional broadcaster MBC Group rang the bell on Tadawul in January following a blockbuster IPO. Avalon Pharma was quick to follow with a SAR 492 mn main market IPO in February, while Modern Mills following suit in March. Six companies offered shares in the parallel market, including Pan Gulf Marketing, WSM Information Tech, Al Modawat Specialized Medical, Quara Finance, Al Mohafaza Education and Taqat Mineral Trading.

And a new index: Tadawul launched TASI50 Index, which tracks the 50 largest companies by market cap listed on the exchange.

In terms of value, materials companies saw the highest level of trading activity, generating 15.1% of the total value traded on Tadawul in 1Q 2024, followed by banks (12.4%), energy companies (9.6%) and transportation companies (6.8%).

In terms of volume, consumer service firms topped the list, accounting for c. 19% of the main market’s total trades, followed by materials companies (10.5%), retail (8.2%), and energy (7.7%).

SUKUK & BONDS-

The size of the sukuk and bonds market grew 2.6% q-o-q to SAR 564 bn on the back of three new listings and two delistings. However, performance metrics saw a slight contraction as trades declined on a quarterly basis despite growing 54.7% y-o-y in comparison with the corresponding quarter a year earlier.

FOREIGN OWNERSHIP-

Foreign investors’ main market holdings on Tadawul were up 4.6% q-o-q to SAR 418.9 bn in 1Q 2024. This is up 20.7% y-o-y. Similarly, the value of foreign ownership in Nomu grew 46.3% q-o-q to SAR 864.4 mn. It is up 80.5% y-o-y.

Shareholders of Budget Saudi approve capital increase for acquisition of AutoWorld

Shareholders of Tadawul-listed United International Transportation (Budget Saudi) have signed off on a 9.8% capital hike to SAR 781. 7 mn through an issuance of new shares to finance the company’s takeover of AutoWorld, according to a disclosure to Tadawul. The board of Budget Saudi recommended earlier this month the capital increase to fund the full acquisition of AutoWorld. The disclosure doesn’t offer a timeline for the completion of the transaction.

What we know: The Tadawul-listed rental firm is grabbing 100% of Autoworld through a share swap that will see it issue 7 mn new shares to the latter’s owner, Sedco Holding. Sedco is a Shariah-compliant investment firm with holdings in asset management, education, healthcare, hospitality, and real estate. The acquisition will see AutoWorld’s shares transferred from Sedco Holding to Budget Saudi’s subsidiary Aljozoor Alrasekha Trucking (Rahaal). This will see Sedco Holding’s direct and indirect ownership reach 8.96% of Budget Saudi.

About AutoWorld: Established in 1981, AutoWorld specializes in operational leasing and fleet management. It provides holistic mobility services to government organizations and businesses across the Kingdom in industries such as oil and gas, logistics, and FMCG.

The rationale: Budget Saudi said the acquisition will help it consolidate its base as market leader in the vehicle and leasing market in the Kingdom, according to a statement. It will help boost its market share to 18% from a current 12%, bringing its total car leasing fleet to c. 49.3k (including AutoWorld’s 14k vehicles), the rental firm said, citing an unnamed third-party market report.

With more plans in the works: Budget Saudi said it plans to merge its short-term vehicle rental unit Payless with AutoWorld to “tap into more price-conscious customers, including residents, business travelers, and leisure travelers, further diversifying and growing its customer portfolio.”

What they said: “This deal, the first of its kind in Budget Saudi’s history, enables us to lay the groundwork for strategic initiatives that drive sustainable growth, enhance competitiveness, and create shareholder value.” Budget Saudi President and Group CEO Fawaz Danish said.

Budget Saudi has been busy: Budget Saudi’s Rahaal signed in April a sale and purchase agreement to acquire a 70% stake in UAE freight forwarder Overseas Development ’s subsidiary in the UAE. The transaction was valued at AED 13.3 mn (c. SAR 13.6 mn). It acquired in November a 70% stake in Overseas Development’s Saudi subsidiary, having inked back in July 2022 an MoU that could also see it take a stake of the same size in Overseas’ Kuwait unit.

UBS taps Bassel Al Zaouk to lead wealth management franchise in Saudi

UBS has hired a team of 10 people to lead the growth of its wealth management franchise in Saudi Arabia, Bahrain, and Abu Dhabi.

Bassel Al Zaouk (LinkedIn) has left Deutsche Bank to become CEO for Saudi Arabia at UBS Global Wealth Management, based in Riyadh, according to a UBS press release. Al Zaouk was most recently CEO and chief country officer for Deutsche.

ALSO- Ali Khunji (Linkedin) has left HSBC (where he led wealth and personal banking in Bahrain) to lead the UBS’ wealth management business in the Kingdom’s Eastern Province and in Bahrain.

AND- Rana Al Emam (Linkedin) is also leaving HSBC to join UBS to focus on the bank’s wealth business in Abu Dhabi. She is currently HSBC’s head of private banking in Abu Dhabi.

China’s Sany Heavy Industries to provide 80 electric trucks to King Abdulaziz Port

LOGISTICS-

#1- China’s Sany to supply Dammam port with electric trucks: China’s largest construction equipment maker, Sany Heavy Industries, has inked a contract with Saudi Global Ports (SPG) to supply 80 electric trucks to the King Abdulaziz Port in Dammam, the Saudi Ports Authority (Mawani) said in a statement. This makes the port the largest in the Middle East with such a fleet, according to the statement. It also marks Sany’s largest single contract overseas to manufacture and supply electric trucks.

Saudi Global Ports is a joint venture between the Public Investment Fund, Al Blagha Group, and Singapore-based port operator PSA International.

#2- China’s XCMG adds a new service center in the Kingdom: Chinese state-run construction equipment manufacturer XCMG has opened a new service center in Dammam, according to a statement. It also opened a transit warehouse, a component warehouse, and a training center, the statement added. XCMG currently operates other service centers in Riyadh, Jeddah, and Tabuk.

XCMG + Saudi: XCMG is currently involved in several of the Kingdom’s mega projects, including Neom, The Red Sea project and the Diriyah Gate Development Authority (DGDA) project, according to the statement.

AVIATION-

#1- Etihad Airways operated its first flight from Abu Dhabi to Saudi’s Al Qassim region on Monday, it said in a statement. The airline now offers four direct flights per week to the Kingdom’s central province.

#2- IndiGo is adding more flights between Mumbai and Jeddah: India’s budget airline IndiGo plans to add two more daily direct flights between Mumbai and Jeddah from 15 August, it said in a statement (pdf). The move would double the number of weekly flights between the two cities to 14, the statement read.

#3- The Air Connectivity Program has lined up two new routes from Paris and Lyon to Jeddah, which will begin operations next December with two flights per week for each route, it per a statement from state-run SPA.

DEBT WATCH-

The National Debt Management Center closed its June issuance of SAR-denominated sukuk at SAR 4.4 bn, it said in a statement. The issuance was divided into three tranches, with the first SAR 1.6 bn tranche maturing in 2027, the second SAR 53 mn maturing in 2031 and the third SAR 2.76 bn maturing in 2034.

AGRICULTURE-

Local environmental services provider Netzero signed an MoU with the Brazilian government that will help provide it with technology to measure the amount of carbon dioxide absorbed by trees and advanced solutions to manage carbon emissions, state news agency SPA reported.

About the company: Netzero helps companies offset their emissions by providing them with environmentally friendly solutions and afforestation projects, according to its website.

STARTUPS-

SparkLabs takes the reins of a Saudi accelerator for AI startups: Global VC firm SparkLabs Group will now be leading the AI startup accelerator program AIM-X, which was launched under the Saudi Artificial Intelligence Mission (AIM) initiative, according to a statement. The initiative was introduced by the Ministry of Communications’s National Technology Development Program (NTDP), King Abdullah University of Science and Technology, and Saudi Data and AI Authority.

About AIM-X: The program will be accepting applications from early-stage AI startups between 14 June and 1 July, before it goes live on 17 September. Participants will be eligible for a USD 200k investment in exchange for up to 6% of equity.

EM just had the busiest day of the year on the bond market

Emerging markets poured into the debt market yesterday with a flurry of bond issuances, as sovereigns look to capitalize on what is “an opportunistic time” for debt markets as interest rates dip this month, Bloomberg reports. Yields on 10-year US Treasuries are down more than 10 basis points this month, with markets expecting the US Federal Reserve to start winding down its monetary tightening sooner rather than later after May figures showed US inflation beginning to cool. “Now is the calm before further external factors come into play,” Oren Barack, managing director of fixed income at New York-based Alliance Global Partners, tells the business information service.

Who’s tapping the market: Four countries — the UAE, the Dominican Republic, Indonesia, and South Korea — all tapped the market yesterday, making it “one of 2024’s busiest days.” The UAE sold USD 1.5 bn worth of eurobonds in its first sale since September, setting the spread at 60 basis points above US Treasuries amid red-hot demand, according to Bloomberg. The country had initially guided on a spread of 90 bps above Treasuries.

EM debt markets already came out the gate strong at the start of 2024, with the first four days of the year seeing USD 24.4 bn worth of issuances, making it the “busiest start to a year on record for USD- and EUR- denominated debt issuance out of developing nations,” the business information service said at the time. The momentum has been sustained in the months since, with some USD 300 bn of hard currency debt from EM sovereign and corporate issuers going to market year-to-date, rising c.30% y-o-y.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning, with the ASX 200, Hang Seng, and Shanghai Composite all in the red and the Kospi and Nikkei both in the green. US stock futures are largely unchanged in overnight trading after the S&P 500 and Nasdaq Composite each ended three-day losing streaks yesterday. Futures point to a mixed open in Europe later this morning.

TASI	11,731	+0.3% (YTD: -2.0%)
MSCI Tadawul 30	1,471	0.0% (YTD: -5.1%)
NomuC	26,423	-1.3% (YTD: +7.7%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	27,264	+1.3% (YTD: +9.5%)
ADX	9,002	-0.2% (YTD: -6.0%)
DFM	3,999	0.0% (YTD: -1.5%)
S&P 500	5,469	+0.4% (YTD: +14.7%)
FTSE 100	8,248	-0.4% (YTD: +6.7%)
Euro Stoxx 50	4,936	-0.3% (YTD: +9.2%)
Brent crude	USD 84.94	-1.2%
Natural gas (Nymex)	USD 2.76	-2.0%
Gold	USD 2,331.60	-0.6%
BTC	USD 61,875.30	+4.0% (YTD: +46.4%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.3% yesterday on turnover of SAR 7.1 bn. The index is down 2.0% YTD.

In the green: Al Rajhi Takaful (+9.0%), Bupa Arabia (+7.0%) and Sisco Holding (+5.5%).

In the red: Ades (-2.8%), Miahona (-2.6%) and Qacco (-2.4%).

THE CLOSING BELL: NOMU-

The NomuC fell 1.3% yesterday on turnover of SAR 84.1 mn. The index is up 7.7% YTD.

In the green: Saudi Top (+17.5%), Neft Alsharq (+14.4%) and Burgerizzr (+5.8%).

In the red: Keir (-7.9%), Al Rasheed (-7.3%) and Future (-6.8%)

CORPORATE ACTIONS-

Shareholders of Nomu-listed Saudi Networkers Services Co. have approved the board’s recommendation of a dividend of SAR 14.1 mn at SAR 2.35 per share for 2H 2023, according to a disclosure to Tadawul. The distribution date is set for Sunday, 7 July.

Shareholders of Nomu-listed Nofoth Food Products have approved the board’s recommendation to distribute SAR 9.6 mn in dividend at SAR 0.2 for FY 2023, according to a regulatory filing (pdf). The distribution date was set for Tuesday, 16 July.

Shareholders of Tadawul-listed Saudi Steel Pipe have approved the board’s recommendation of a dividend of SAR 37.5 mn at SAR 0.74 per share for FY 2023, according to a regulatory filing (pdf). Eligible shareholders will be able to cash in starting Sunday, 7 July.

Shareholders of Tadawul-listed Astra Industrial Group have approved the board’s recommendation to distribute SAR 200 mn in dividend at SAR 2.5 for FY 2023, according to a regulatory filing (pdf). The distribution date was set for Sunday, 30 June.

The board of Nomu-listed Saudi Summit Trading has recommended a dividend of SAR 7.2 mn at SAR 0.6 a piece for 2H 2023, it said in a disclosure to Tadawul.

Defense Minister mulls boosting defense partnership with China

Defense minister talks defense cooperation with China: Defense Minister Prince Khalid bin Salman discussed strengthening Saudi-Chinese relations under the strategic defense partnership between the two countries, as well as military and defense cooperation during a visit to Beijing, Prince Khalid said in two separate posts on X (here and here). The minister met with China’s National Defense Minister Admiral Dong Jun and Vice Chairman of the Central Military Commission Zhang Youxia.

Deputy Foreign Minister Waleed Al Khereiji mulled bilateral ties with Iran’s acting Foreign Minister Ali Bagheri Kani on the sidelines of the Asia Cooperation Dialogue (ACD) ministerial meeting in Iran, state news agency SPA reported. They discussed bolstering ties between Riyadh and Tehran. Al Khereiji led the Saudi delegation on behalf of Foreign Minister Prince Faisal bin Farhan where he stressed the urgency of an immediate ceasefire in Gaza, according to SPA.

CALENDAR

JUNE

1-30 June (Saturday- Sunday): Monsha’at’s support meetings, Riyadh, Jeddah, Alkhobar, and Madinah.

28 June (Friday): Start of Jeddah Season 2024, Jeddah.

JULY

4 July-25 August: (Thursday-Sunday): Esports World Cup, Boulevard Riyadh City, Riyadh.

12 July (Friday): PFL MENA 2, The Green Halls, Riyadh.

10-11 July: (Wednesday-Thursday): Global EV & Mobility Tech Forum, Riyadh International Convention & Exhibition Center, Riyadh.

21-30 July (Sunday-Tuesday): International Chemistry Olympiad, King Saud University, Riyadh.

AUGUST

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

18 August (Sunday): New academic year begins.

27-29 August (Tuesday-Thursday): Saudi Fashiontex Expo, Riyadh.

SEPTEMBER

2-4 September (Monday-Wednesday): Saudi Warehousing & Logistics Expo, Riyadh.

2-4 September (Monday-Wednesday): Saudi Wood Expo, Riyadh.

9-11 September (Monday-Wednesday): International Manufacturing Congress, Riyadh.

10 September (Tuesday): Saudi Arabia Investors Forum, Riyadh.

10-12 September (Tuesday-Thursday): Saudi Sports Show, Riyadh.

10-12 September (Tuesday-Thursday): Global AI Summit, Riyadh.

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

16-19 September (Monday-Thursday): Foodex Saudi, Riyadh.

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

18-19 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam.

18-19 September (Wednesday-Thursday): IDC Saudi Arabia CIO Summit 2024, Riyadh.

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

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

29 September (Sunday) – 1 October (Tuesday): Jeddah Construct Expo, Jeddah.

OCTOBER

1-3 October (Tuesday-Thursday): Intersec Saudi Arabia 2024, Riyadh.

5-7 October (Saturday-Monday): Middle East Education & Training Exhibition 2024, Jeddah.

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh.

21-22 October (Monday-Tuesday): Aussie Expo, King Abdullah Financial District Conference Center, Riyadh.

29-31 October (Tuesday-Thursday): Future Investment Initiative Conference, Riyadh.

31 October (Thursday): No-visa travel for Saudis to Montenegro on charter flights expires.

NOVEMBER

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

4-7 November (Monday-Thursday): Saudi Build, Riyadh.

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

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

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Dammam.

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

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

DECEMBER

1 December (Sunday): Opec+ to meet.

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

11 December (Wednesday): FIFA Congress, which will decide the hosting countries for the FIFA World Cup 2030 and 2034

23-26 December (Monday-Thursday): Aqarat Expo, Riyadh.

Signposted to happen sometime in 2024:

The AFC Champions League Elite

2025

FEBRUARY 2025

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

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

JUNE 2025

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

2026

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

2027

The World Water Forum takes place in Riyadh.

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