Good morning. It’s a big day for big swings in the debt and sports markets, as the Finance Ministry issued a whopping SAR 60 bn in new sukuk, while BlackBerry co-founder Jim Balsillie will deploy USD 100 mn over the next five years in a Saudi golf push. Details on these stories, and more, are in today’s issue.

HAPPENING TODAY-

The subscription period opens today for Hawyia Auctions’ Nomu IPO. The real estate marketing company is offering a 12% stake (good for 2.4 mn shares) in a secondary offering at SAR 13 per share. Qualified investors can book between 10 and around 1 mn shares each.

WEATHER- The forecast is more wind, more dust, and less visibility along the southern coastal road from Makkah to Jazan, as well as in parts of Najran, the Eastern regions, and areas east of the southwestern highlands.

Riyadh is expected to see a high of 42°C and a low of 27°C today, while Jeddah’s mercury will go as high as 37°C and as low as 26°C. Makkah will see a 43°C high and 29°C low.

PSAs-

REDF backs stalled Self-Construction and Land and Loan projects: The Real Estate Development Fund (REDF) introduced a new mechanism to disburse financing tranches and housing support for Self-Construction and Land and Loan beneficiaries whose home construction has been unfinished for over three years, state news agency SPA reports.

The fresh mechanism allows up to six payments to complete construction and restore housing support retroactively. To obtain the funding, beneficiaries are required to resume progress within 12 months of each payment, with Self-Construction projects requiring a 40% completion rate for the second payment. Deadline extensions can be requested via the REDF website.

DATA POINT- The fund deposited over SAR 1 bn to Sakani program beneficiaries in May, according to a statement.

WATCH THIS SPACE-

#1- GCC Oil exporters to see growth accelerate: The International Monetary Fund (IMF) expects the GDP growth rate in MENA’s oil-exporting countries accelerate by one percentage point annually over this year and the next, Asharq Business quotes IMF Middle East and Central Asia Director Jihad Azour as saying.

The drivers: Azour attributed the additional expected growth in these countries to the larger contribution of the non-oil sector, emphasizing the importance of the steps taken to diversify their economies and reduce their overall reliance on oil.

Reforms helped Gulf countries through the tariff storm: Measures and reforms implemented by Saudi Arabia and Gulf countries in general over the past years — coupled with their pace of growth — have allowed them to improve the capacity of their economies to face the effects of US customs duties, Azour told Aleqtisadiah, adding that the high reserves of Gulf countries would make them less affected by the tariffs.

REMEMBER- The IMF significantly lowered its 2025 growth forecast for the broader MENA region to 2.6% earlier this month, citing geopolitical issues, oil market volatility, weak demand, and trade uncertainty. Oil exporters in the region were expected to grow by 2.3% in 2025, down from 4.0%, while importing economies were projected to grow 3.4% over the same period, down from 3.9%.

#2- EGX-listed multinational Ajwa Group for Food Industries is planning to take control of logistics firm Atco by acquiring a 70% stake through a share swap, Ajwa CEO Ahmed Tare, told Asharq Business in an interview, adding that Ajwa is set to open branches in the Kingdom within the next few months There’s no publicly available information about the transaction’s timeline, or the fair value of Atco.

Not Ajwa’s first logistics venture in the Kingdom: Ajwa already owns Saudi-based Ajwa PortServices, and acquiring Atco is likely to achieve operational and cost synergies, giving the buyer a stronger hold in the Saudi market.

#3- Nomu-listed Obeikan Glass resubmitted a request to the exchange to transition to the main market Tadawul, according to adisclosure. The company has previously received a rejection, as it failed to meet the required conditions.

What it takes: To move from Nomu to the main market, a company needs to meet stricter requirements. It must have a minimum market cap of SAR 300 mn and a solid financial track record of at least three years under consistent management. The company also needs to offer at least 30% of its shares to the public, have at least 200 public shareholders, and follow more rigorous financial disclosure rules.

DATA POINTS-

#1- King Khalid tops airports’ performance in April: King Khalid International Airport maintained the lead among international airports serving over 15 mn passengers annually, with an 82% compliance rate in April 2025, said the General Authority of Civil Aviation (Gaca) in a post on X. King Abdulaziz International Airport followed with a 73% compliance rate, holding steady from the previous month.

Among airports handling 5-15 mn passengers a year, King Fahd and Prince Mohammed bin Abdulaziz International Airports both achieved a 91% compliance rate. All international and domestic airports with fewer than 5 mn passengers met 100% of Gaca’s standards, except Al Jouf International Airport, which scored 91%.

#2- Saudi Arabia’s digital economy contribution to GDP expanded to 15.6% in 2023, up 1.6% from the previous year, according to a statement by the General Authority for Statistics (Gastat). The growth was supported by a 20% rise in imported goods to SAR 54.9 bn, as well as a 76% increase in exported and re-exported goods to SAR 11.8 bn.

The breakdown: Companies using digital technologies to enhance their offerings accounted for the largest contribution to GDP made by the digital economy, at 10.7%. Meanwhile, firms directly involved in the production of ICT goods and services added 2.6%, and businesses relying on digital inputs pulled in the remaining 2.3%.

ALSO- The ICT sector reported strong financials, with operating revenue reaching SAR 236.4 bn, operating expenses totaling SAR 115.4 bn, and employee compensation amounting to SAR 27.5 bn.

#3- Some 961.9k pilgrims arrived in the Kingdom as of Saturday, the General Directorate of Passports said on X. Some 912.6k arrived by air, while 45k arrived by land, and 4.3k arrived by sea.

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THE BIG STORY ABROAD-

Russia rained drones and missiles on Ukrainian cities overnight, in a massive air campaign that is deemed the largest air attack of the three-year war. At least 12 people were killed and 60 were wounded.

US President Trump told reporters he would “absolutely” consider additional sanctionson Russia, a move he declined to take weeks ago after EU leaders called on him to pressure President Putin into accepting a preliminary 30-day ceasefire.

SPEAKING OF THE EU- Trump said yesterdayhe’ll delay the 50% tariff on the EU until 9 July to give room for negotiations, after receiving a call from European Commission President Ursula von der Leyen requesting an extension from 1 June. The President said earlier he will opt to impose the high tariffs because “discussions with [the EU] are going nowhere.”

OVER IN GAZA- Israel’s military said it aims to capture 75% of the strip in two months, confining the population into the remaining area. The plan is part of an expanded Israeli offensive that saw a near-complete blockade on food and medicine entering the enclave, with UN chief António Guterres saying Israel has only authorized "a teaspoon of aid” to enter Gaza, “when a flood of assistance is required.”

CIRCLE YOUR CALENDAR-

The flagship Future Investment Initiative (FII9) is coming back to Riyadh from October 27-30 at the King Abdulaziz International Conference Center (KAICC) and the Ritz-Carlton. Key discussion topics include AI, resource geopolitics, energy uncertainty, and semiconductor security.