Flynas slides on Tadawul debut amid geopolitical tensions

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Riyadh Air to serve 100 cities by 2030 -CEO

Good morning, ladies and gents, and happy THURSDAY. Flynas finally made its long-anticipated debut on Tadawul, but the first-day performance left something to be desired after the price slipped more than 3%.

Also in today’s news well: SNB closed its tier 2 debt issuance, reportedly its biggest ever, while IsDB priced a five-year sukuk issuance. We also have the details on Saudi’s big-ticket Expo 2030, and Darwinz AI’s first institutional funding round.

AND- The US Federal Reserve held its benchmark rates unchanged at 4.25-4.50% for the fourth straight meeting. We still haven’t heard from Sama, but the decision is almost certain to be in line with the Fed.

WEATHER- Riyadh is expected to see a high of 44°C and a low of 30°C today, while Jeddah’s mercury will go as high as 35°C and as low as 26°C. Makkah will see a 43°C high and 32°C low.

HAPPENING NEXT WEEK-

Real estate marketing firm HawyiaAuctions will ring the opening bell on the Nomu parallel market next Sunday, 22 June, according to a disclosure to Tadawul. The company’s shares will be allowed to trade within a 30% price fluctuation cap and a static 10% band over the first three sessions, followed by a 10% daily circuit breaker.

REFRESHER- Hawyia is talking 2.4 mn shares — a 12% stake — to market at SAR 13 apiece, in a secondary offering that was 310% covered. The company’s three selling shareholders will rake in some SAR 31.2 mn in net proceeds, implying a market cap of SAR 260 mn at listing.

The listing comes amid a wave of underwhelming Nomu debuts, with many recent entrants struggling to hold above-IPO price.

PSAs-

Registration for Electrathon 2025 is now open on the Saudi Electricity Regulatory Authority website until 25 June, state news agency SPA reported on Tuesday. The event will be held in Riyadh between 10-12 July, getting participants to meet with experts as they look into boosting electricity innovation through consumer experience, integrating renewable energy, and improving the efficiency of operations from generation to distribution.

WATCH THIS SPACE-

#1- 100 skies for Riyadh Air by 2030: PIF-backed Riyadh Air is planning to serve 100 cities by 2030, aiming to add a destination every two months once it’s operational, CEO Tony Douglas told Bloomberg at the 2025 Paris Airshow. The carrier has snapped up the necessary landing slots for its first destinations, Douglas added, and is set to announce its first route and ticket sale mechanism in the upcoming months.

What’s the holdup? Our newest carrier has pushed back its launch to 3Q 2025 from earlier this year after facing delays in Boeing aircraft deliveries, and is planning to launch service once Boeing hands over the first two planes from the four Boeing 787 Dreamliners currently undergoing assembly, Douglas explained. The airline requires two aircraft for each new destination to manage the back-and-forth routes.

ICYMI: Riyadh Air locked in an order for up to 50 Airbus aircraft during the show earlier this week.

AND- Another airliner on the PIF’s radar is making moves: Asia’s largest budget carrier AirAsia is in talks with Airbus to acquire 50 to 70 A321 jets in the next one to three months, CEO Tony Fernandes told Reuters. The Malaysia-based airline also plans to tap either Airbus or Embraer for some 100 smaller model jets.

REMEMBER- PIF was seeking a USD 100 mn investment in AirAsia back in March, making it the largest contributor to the carrier’s USD 226 mn fundraising target. However, the investment hasn’t been locked in yet. “As soon as we get the consent letters and the Thai Stock Exchange we will announce who the new capital is,” Fernandes told Reuters.

The new order could solidify Saudi interest: A key draw for the PIF’s investment is AirAsia’s backlog of over 350 Airbus narrowbody aircraft. PIF’s Riyadh Air secured part of these delivery slots — easing the Malaysian airline’s financing burdens while providing Riyadh Air with planes needed for its 3Q 2025 launch. Riyadh Air chose the slots instead of purchasing 100 Boeing 737 jets.

#2- The Kingdom’s GDP growth is expected to come in at 3.6% this year, up from 1.3% last year, driven by Opec+’s oil production hikes, Emirates NBD wrote in a research note (pdf). Oil growth is expected to come in at 3.5% in 2025, down from 4.5% in 2024, while non-oil growth is expected to accelerate to 4.5%, from 4.3% last year.

Current account deficit is expected to widen to 3.9% of GDP this year, in what would mark the largest deficit in a decade, attributed to lower expected oil prices and high levels of imports. However, the current account deficit is expected to narrow to 2.5% as oil production increases. Lower oil prices are also expected to cause the Kingdom’s budget deficit to widen to 5.9% of GDP this year, from 2.8% in 2024, before narrowing to 4% of GDP next year.

As for inflation, the Kingdom’s headline reading is expected to average 2% this year, from 1.7% in 2024, the bank said.

Somewhat in line with other forecasts: The IMF recently cut its inflation forecasts to 2% for both 2025 and 2026, while Capital Economics expects inflation to hover around 2-2.5% this year, before slowing to 2% in 2026. Riyad Capital is more optimistic, expecting inflation to rise to 2.5% in 2025, before easing slightly to 2.3% in 2026.

BUT- Most of these forecasts were published before the recent Iran-Israel escalation, and are likely to be updated by analysts down the road as the trajectory of the conflict starts to take shape.

#3- Three Nomu listings get the green light: The Capital Markets Authority (CMA) approved three new IPOs to hit the parallel market, according to separate statements. Quality Education will take a 20% stake to Nomu, good for 2.5 mn shares, while Sahat Almajd will offer an 11.1% stake (4.4 mn shares) and Zahr Al Khuzama Aluminum is to list a 20% stake (300k shares).

DATA POINTS-

The Industry and Mineral Resources Ministry processed 877 industrial customs exemption requests in May, it said on X. The requests covered 3.1k raw material items and 12.9k machinery, equipment, and spare items.

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THE BIG STORY ABROAD-

On day six of the war between Israel and Iran, concern is rising that the US is preparing to join the war. Adding to the speculation, US President Donald Trump said that he had not made a final decision on whether he will strike the country, telling reporters, “I may do it, I may not.” Iranian Supreme Leader Ayatollah Ali Khamenei made his first appearance since Friday to respond to an increasingly hawkish Trump, warning the US president that their involvement in the conflict would “undoubtedly be accompanied by irreparable damage.” (Financial Times | Associated Press | New York Times)

While over in the business press, all eyes were on the US Federal Reserve, which decided to hold interest rates steady for the fourth meeting running despite increasing pressure from the Trump administration to change course. Chair Jerome Powell doubled down on the reserve’s position that they will wait to assess the full impact of the tariffs on US imports before “considering any adjustments to our policy stance.” Despite the decision to hold, the Fed still sees two interest rates to come before the end of year. We have more on the Fed’s decision in this morning’s Planet Finance section, below. (Bloomberg | Financial Times | Wall Street Journal)

Flynas dips 3.4% on Tadawul debut

Flynas’ shares dipped 3.4% on Tadawul debut yesterday to close at SAR 77.30 apiece, according to market data. The stock slid 13% intraday, with trading briefly halted twice. The company’s share will still be subject to the usual Tadawul debut rules — a 30% price fluctuation cap and a static 10% band over the first three sessions, followed by a 10% daily circuit breaker onwards.

A rough landing: Flynas’ IPO marks the region’s first main market listing since the outbreak of the Israel-Iran conflict last week — a geopolitical shock that triggered a regional sell-off, denting investor sentiment. Aviation stocks were among the hardest hit due to widespread disruptions to commercial flight schedules.

Geopolitics weighed in: “Flynas valuations were at a premium to other regional airlines on the back of strong growth and the Saudi aviation narrative. However, despite the massive oversubscriptions and strong response to the IPO, the timing of the listing was far from optimal given the current geopolitical situation.” Nishit Lakhotia, head of research at SICO Bank, told Bloomberg.

ICYMI- The turbulence came despite a stellar USD 4.1 bn IPO, which wrapped up last week, marking the region’s first listing of a major airline since 2008 and the highest-grossing Saudi IPO since Aramco’s USD 29.4 bn debut in 2019. The institutional offering was 100x oversubscribed, booking SAR 409 bn in orders.

It’s not all doom and gloom: Flynas may still have enough tailwinds to ride out sustained geopolitical tension by tapping into steady demand from outbound tourism and religious pilgrimage flows, IPOX Schuster’s Lukas Muehlbauer told Bloomberg. The airline’s home-base advantage in Saudi Arabia, a top crude producer, could also help shield it from the kind of fuel price shocks hitting its global peers.

AND- Flynas gets to keep the crown: The company was named the best Middle Eastern low-cost carrier for the eighth year in a row, and ninth worldwide, according to the World’s Top 100 Low-Cost Airlines 2025 ranking by UK-based Skytrax. The rankings were announced at the Skytrax Awards held on the sidelines of the Paris Air Show.

The year in IPOs: Flynas breaks from a streak of strong market debuts on Tadawul YTD, with Entaj, Derayah Financial, Nice One, and Umm Al Qura for Development all increasing the maximum 30% on their first trading sessions, while Almoosa Health climbed 15% on its debut.

The only other outlier was United Carton Industries Company, which dipped 1.5% below its IPO price, as the broader Saudi market slowly turned into one of the worst performers globally in May. This marked a stark contrast to just a few months ago, when newly listed stocks routinely posted double-digit gains, outpacing regional peers.

ADVISORS- Goldman Sachs Saudi Arabia, BSF Capital, and Morgan Stanley Saudi Arabia were joint financial advisors and underwriters. BSF Capital also served as the lead manager. Bookrunners include Emirates NBD Capital KSA, Goldman Sachs Saudi Arabia, Al Rajhi Capital, BSF Capital, Citigroup Saudi Arabia, NAB Capital, and Morgan Stanley Saudi Arabia. Receiving agents included BSF Capital, Al Rajhi Capital, SNB Capital, and Riyad Capital, among others.

ALSO IN THE PIPELINE-

Specialized Medical Company priced its IPO at SAR 25 a pop last week;
Companies that have yet to move to the step beyond receiving the CMA’s approval include Ejada Systems, Marketing Home Group, and Dar Al Majed ;
Companies that tapped banks for potential IPOs include the PIF-backed Saudi Global Ports, Tabreed District Cooling, Medical procurement firm Nupco, Riyad Capital, and BNPL platform Tabby ;
Alramz Real Estate and Al Othaim Investment announced plans to float a 30% stake on Tadawul this year;
F&B players Barns, Half Million, Deemah, and Hashi Bashi are said to be sounding out banks for potential debuts on the main market;
Almosafer is preparing for a public listing on Tadawul by late 2025 or early 2026;
PIF-backed CloudKitchens is reportedly eyeing an IPO in the Kingdom or the UAE (or both);
Meal subscription startup Calo is also said to be eyeing an IPO here at home by 2027.

GCC could see external funding outflows due to the Israel-Iran conflict -S&P Global

Regional sovereigns and banks are in a good position to cope with the Israel-Iran escalations, S&P Global wrote in a note on its website.

S&P sees four primary risks affecting regional credit conditions: Regional sovereigns and lenders could be affected by issues that include “broader confidence factors” — which could hamper economic growth, funding costs, and banking system liquidity and asset quality — as well as surges in the prices of energy, production, and transportation, weaker tourism and capital outflows, and other security-related expenditure, the agency wrote.

Outflows can be severe for the region: External funding outflows are expected to reach around USD 240 bn — equivalent to “about 30% of the cumulative external liabilities of tested systems.” However, S&P believes banks in the region have the necessary external liquidity to cover these outflows in most cases, provided their external assets can be liquidated.

Saudi banks are in a “satisfactory” position to weather the storm, the note said. However, escalatory attacks between Israel and Iran are expected to affect business confidence in the GCC region at large, according to S&P.

Key risks for GCC banking systems include:

Outflows of foreign funding, which would entail non-resident investors exiting the GCC region as tensions escalate;
Outflows of local funding, which could materialize only in the case of a broader regional conflict or in S&P’s “severe stress scenario” of a wider conflict involving regional and non-regional allies;
“A spike in default rates among banks’ corporate and retail clients,” which would come if there were disruptions to oil exports as part of the geopolitical instability.

Local private sector deposit outflows are expected to happen only under the agency’s most severe scenario of a wider conflict, and in the event of an exit of expats and residents. In that scenario, S&P expects 20% outflows of private sector deposits, which is based on historical data from the 1990-1991 Gulf War as a precedent. Meanwhile, the agency does not expect to see outflows of government or public sector deposits, saying that previous episodes of heightened geopolitical risk saw intervention from governmental and public entities to support banks amid capital outflows.

Even in the worst case scenario, banks in the GCC are equipped to cope with the losses: Banks are expected to experience some USD 290 bn in local private sector deposits under the worst case scenario posed by S&P, which the agency thinks banks can cope with. If there is less liquidity than originally assumed, central banks are likely to step in to support, the agency said.

Another risk for Saudi and the wider region is the potential blockage of the Strait of Hormuz, which handles some 80% of our oil exports totalling 6.5 mn bbl/d. The East-West pipeline, with an additional capacity of 3.3 mn bpd, can help stabilize export revenues in the case of the strait’s closure, the note said.

SNB closes USD 1.25 bn tier 2 debt issuance

SNB taps debt market for the second time this year: The Saudi National Bank (SNB) raised USD 1.25 bn from the sale of 6.2k tier 2 capital notes with a 6% annual yield, it said in a disclosure to Tadawul. The 10-year offering was priced at 200 bps over US Treasuries.

Orders reportedly exceeded USD 4 bn, marking the lender’s biggest-ever USD-denominated bond sale, according to data compiled by Bloomberg.

ICYMI- The Reg S compliant issuance falls under SNB’s euronotes medium-term program, and is set to be listed on the London Stock Exchange, with proceeds earmarked for boosting tier 2 capital, corporate funding, and broader strategic objectives. The move comes one week after SNB closed a SAR 1.73 bn additional tier 1 (AT1) debt issuance.

IN CONTEXT- Saudi banks are ramping up junior debt sales to bankroll Vision 2030: Local lenders are increasingly issuing bonds to unlock lending capacity and ease pressure on public finances while moving forward with gigaprojects. Banks are also exploring securitization as an alternative tool, with the first major sale expected this year, Bloomberg reports.

Also in the pipeline: Bank Albilad is currently planning a USD-denominated AT1 sukuk under its USD 2 bn program. Meanwhile, Cenomi Centers is gearing up to issue up to SAR 3.75 bn in sukuk.

ADVISORS: Abu Dhabi Commercial Bank, DBS Bank, Emirates NBD, Goldman Sachs, HSBC, JP Morgan Securities, Mashreq Bank, Mizuho International, SNB Capital, SMBC Nikko Capital Markets, and Standard Chartered were joint lead managers and joint bookrunners for the offering.

ALSO- SNB will fully redeem SAR 4.2 bn in AT1 capital sukuk at face value by the end of the month, according to a separate filing. The sukuk were issued in 2020 as part of SNB’s capital optimization scheme and will be repaid in full, alongside any accrued returns. The sukuk will be delisted following redemption, ending all outstanding issuances under this program.

What we know: The shariah-compliant bond had an original tenor with no fixed maturity, but included a first call date five years post-issuance — a common feature in AT1 capital instruments. Early redemption often signals that a bank is in good financial health.

ADVISORS- SNB Capital is acting as payment administrator and sukukholders’ agent.

IsDB prices USD 1.2 bn, five-year sukuk at 4.2%

The Islamic Development Bank (IsDB) priced its USD 1.2 bn, five-year sukuk issuance at a fixed, semi-annual rate of 4.246%, Zawya reports. The initial price talk for the issuance was set at the Secured Overnight Financing Rate (SOFR) plus 57 basis points over the mid-swaps, only 1 basis point tighter than the final pricing.

About the offering: The issuance is part of the bank’s USD 25 bn Trust Certificate Issuance Program. The Reg-S sukuk will be listed on Euronext Dublin and Nasdaq Dubai.

ICYMI- The program had also seen IsDB close its first global debt issuance of the year in March, raising USD 1.75 bn in a USD-denominated sukuk sale with a fixed annual return of 4.211%.

ADVISORS- The bank tapped Citi, Emirates NBD Capital, Goldman Sachs International, Natixis, Societe Generale, BBVA, BMO Capital Markets, and Standard Chartered Bank as joint lead managers.

Riyadh confirmed as Expo 2030 host

Riyadh officially confirmed as Expo 2030 host: Saudi Arabia received the final stamp of approval from the Bureau International des Expositions (BIE) on Tuesday to officially host Expo 2030 in Riyadh. The green light means Saudi Arabia can now move into the implementation phase, including sending out official invitations to international participants for the event, scheduled to run between 1 October 2030 and 31 March 2031.

The details: The Expo is an International-Registered Exhibition with a core theme of “Foresight for Tomorrow,” aiming to tackle global challenges, showcase innovative solutions for a sustainable future, and highlight Saudi Arabia’s advancements to the world. The exhibition is expected to draw some 42 mn visits to see contributions from over 195 countries and 29 organizations, housed within 230 pavilions, according to its official website.

The Expo site, located around Wadi Al Sulai north of Riyadh, will span approximately 2 mn sqm of gated area for exhibitions and activities, divided into five distinct districts — the Prosperous People, KSA, Transformational Tech, Global Collaboration, and Sustainable Solutions districts. The site is located one metro stop away from the new King Salman International Airport, with only 10 minutes separating the two.

Getting ready: Riyadh has over 426k new hotel rooms planned ahead of the event, targeting USD 80 bn in private tourism investment by 2030. Meanwhile, National air carrier Saudia plans to double its fleet ahead of the Expo by adding 191 aircraft, while Humain partnered with Cisco to develop AI-driven digital infrastructure.

ALSO- The Kingdom is working on launching a dedicated Expo App for concierge and travel information, an Expo Visa for simplified entry, and shuttle services to key hubs.

Following the Expo, the host site will undergo a post-Expo transformation into a Global Village, serving as a permanent innovation and knowledge hub, according to the website.

Big tickets: The Kingdom allocated a budget of USD 7.8 bn for the event in its candidacy brochure (pdf), while government officials estimated back in 2023 that infrastructure and development investments to prepare for the event will be over USD 90 bn.

Contributing to the deficit? Large public investments building up to events like Expo 2030, the 2034 World Cup, and the Asian Winter Games in 2029 were cited as a major contributor to an average deficit of 4.2% of GDP between 2025-2028, S&P Global Ratings said in its March credit assessment. Recent fluctuations in oil prices have reportedly prompted comprehensive reviews of the Kingdom’s biggest planned investments, including Neom, in a bid to keep deficits and debt levels at a minimum.

BUT- Officials are saying recent government reassessments will still see Riyadh prioritize spending on time-sensitive events like the Expo and the World Cup.

Flat6Labs KSA,Glint Ventures back Darwinz AI with USD 325K in first ever institutional funding round

Saudi-Egyptian startup Darwinz AI raised USD 325k in a seed funding round led by Flat6Labs KSA and Glint Ventures, the company said in a statement. The round marks the company’s first institutional funding round after having until now been bootstrapped by its co-founders, co-founder Mohy Aboualam told EnterpriseAM.

Darwinz AI? Founded in Egypt in 2021 by Emad Elazhary and Mohy Aboualam, Darwinz AI is a startup that offers an AI copilot that helps marketing and PR teams “increase their daily productivity by up to 80%” by helping track brand sentiment, detect potential crises, and analyze media coverage in real time through its flagship product Dima, Aboualam told us. The Arabic-first platform launched in late 2024 is now used by 300+ professionals across six MENA countries, including agencies and enterprise clients in telecoms, F&B, banking, real estate, automotive, aviation, and the public sector.

The fresh funds will go towards driving the startup’s expansion ambitions, starting off with expanding its presence in the GCC from its office in Riyadh’s The Garage. But the company also has more global ambitions beyond the 6 MENA nations it currently operates in, with the company “working on the productization aspect of our copilot to ensure it’s ready for the next phase of global expansion in 2026,” Aboualam said.

Capital will also go towards further building its Dima platform, guided by their “growing customer base and their feedback as they use the copilot in their daily operations.” “We do not plan to roll out any new products, only further advancements in Dima to ensure we are the best solution or optimal solution globally in the specific use cases we are planning to copilot,” Aboualam explained.

Its new backers will bring more to the table than just fresh financing, with Darwinz AI looking to benefit from Flat6Labs and Glint Ventures’s experience building up and scaling companies, we were told.

What’s next? Following the seed round, Darwinz AI will knuckle down on following through on its set businesses plan before launching another funding round in 2H 2026 ahead of expanding outside the region. “I would love in the next 18 months to have clients in countries that we never visited find, subscribe and benefit from Dima online,” Aboualam said.

** We sat down with Mohy Aboualam, co-founder and CEO of Darwinz AI in April for EnterprisePM Egypt’s Founder of the Week column. Check it out here.

Saudi accelerates purchase of Chinese battery energy storage systems

Saudi Arabia’s upsurge in acquiring China’s battery energy storage systems caught the interest of the Financial Times, attributing the increase to China’s systems being better suited to the Kingdom’s conditions. They also exhibit enhanced quality and cheaper prices for battery cells, which fell to USD 50 per kWh in 2024.

The salmon-colored paper highlighted the Kingdom’s growing need for battery storage systems to complement its renewable energy plans. The Kingdom aims to have the fifth-largest utility-scale battery storage capacity worldwide, with 11 GWh expected to be added this year, up from zero earlier in 2024, according to Energy research and intelligence firm Rystand Energy.

Four Saudi firms enter the Top 10 of Forbes’ MENA’s Top 100 Listed Companies

Aramco took the lead in Forbes Middle East’s MENA’s Top 100 Listed Companies 2025 list for the sixth year in a row, reporting USD 1.7 tn in market value, supported by USD 480.4 bn in sales and USD 106.2 bn in net income. Another 29 Saudi firms made the cut, making the Kingdom the second-most represented country in the list, behind the UAE, which had 33 companies.

Saudi is heavily present in the top 10: In addition to Aramco, Saudi National Bank came in fourth place, followed by Al Rajhi Bank, while STC Group took the eighth spot.

Other Saudi companies on the list:

#14- Sabic
#16- Saudi Electricity Company (SEC)
#17- Riyadh Bank
#21- Saudi Awwal Bank (SAB)
#24- Saudi Arabian Mining Company (Maaden)
#25- Alinma Bank
#28- Banque Saudi Fransi (BSF)
#29- Arab National Bank (anb)
#38- Bank Albilad
#42- Etihad Etisalat Company (Mobily)
#43- Almarai
#52- Acwa Power
#53- The Saudi Investment Bank (SAIB)
#55- Sabic Agri-Nutrients Company
#57- Dr. Sulaiman Al Habib Medical Services Group (HMG)
#59- Bank AlJazira
#64- National Shipping Company of Saudi Arabia (Bahri)
#65- Savola Group
#69- The Company for Cooperative Insurance (Tawuniya)
#71- Bupa Arabia
#74- Solutions by stc
#83- Elm
#86- Dar Al Arkan
#91- Kingdom Holding Company (KHC)
#96- ADES Holding
#99- Zain KSA

Diriyah, Sotheby’s launch experience center in London

INVESTMENT WATCH-

Diriyah + Sotheby’s to promote Saudi real estate: Diriyah Company partnered with Sotheby’s International Realty to launch the Diriyah House Experience Center in London, the company said on LinkedIn. The center will showcase its flagship development in Riyadh, in a bid to attract international investors.

The details: The Diriyah House Experience Center will open to the public next month at One Hyde Park, with Sotheby’s International Realty managing the space and supporting marketing efforts, Aleqtisadiah reports.

INVESTMENT WATCH–

IT solutions provider Al Moammar Information Systems (MIS) sold 100% of its stake in San Francisco-based AI startup Anthropic for USD 9.3 mn, gaining some USD 4.3 mn from its investment, it said in a disclosure to Tadawul on Tuesday.

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

REMEMBER- In January 2024, MIS acquired an undisclosed stake in Anthropic through a USD 5 mn equity investment, as part of MIS’ SAR 40 mn investment portfolio for capitalizing on growth windows in global AI companies.

M&A WATCH-

#1- K-12 AI and coding education platform iSchool snapped up Saudi-Egyptian Algoriza’s EdTech arm Seeds, it said in a statement on Tuesday. The value of the transaction was not disclosed.

REMEMBER- In late 2023, iSchool announced its plans to expand across the GCC — namely in Saudi Arabia, the UAE, Oman, Qatar, Kuwait, and Bahrain — with sub-Saharan Africa in the cards for 2025.

#2- Local family-owned conglomerate Al Sulaiman Group acquired Taajeer Finance Company, according to a statement. No details were disclosed about the investment ticket.

About Taajeer Finance: Founded in 1997 as an independent auto finance company and a former Taajer Holding Group subsidiary, it transitioned into a comprehensive financial solutions provider.

FOOD-

Baan Holding Group signed a SAR 436 mn, six-year contract to provide catering, food, and nutrition services to workers residing at Neom’s Modern Village Complex, it said in a disclosure to Tadawul. Services are expected to launch in 2Q 2025.

FINANCIAL SERVICES-

Madfu secures BNPL license: Riyadh-based fintech Madfu obtained a license from the Saudi Central Bank to offer deferred payment services (known as buy-now-pay-later or BNPL), state news agency SPA reports. The new operator raises the total number of licensed BNPL finance companies operating in the Kingdom to 67.

The Federal Reserve held rates steady as economic uncertainty rises in light of Trump’s tariff agenda

The US Federal Reserve held its benchmark rates unchanged at 4.25-4.50% for the fourth straight meeting, it said in a statement (pdf). Solid market conditions, low levels of unemployment, and a solid pace of economic growth, were cited as reasons in a statement, which noted inflation is still “somewhat elevated.” The last time the Fed cut interest rates was in December, when it cut rates by 25 bps.

Incoming economic uncertainty? Persistent concerns about an incoming uptick in inflation and unemployment on the back of US President Donald Trump’s tariff agenda, the effects of which are expected to be felt soon, are also factors in the decision, according to statements from Fed Chair Jerome Powell cited by Reuters. Economic projections released alongside the decision show the Fed now expects weaker economic growth — downgraded to 1.4%, from 1.7% earlier — and higher unemployment.

As expected: A Reuters poll from 105 economists had seen all but two predict the Fed to leave interest rates where they have been since the start of the year. Recent labor statistics from the US Treasury also made the case for keeping benchmark rates unchanged, as officials stay the course on a “wait-and-see approach [that] has served them well up until this point,” Deutsche Bank AG economist Brett Ryan told Bloomberg.

Market reax: The S&P 500 fell following the Fed’s announcement, while the Nasdaq inched up 0.1%. Meanwhile, the yield on the 10-year US Treasury note ended the day nearly flat.

Someone won’t be happy: US President Donald Trump has openly called on the Fed to slash rates by a full percentage point. This time he’s been complaining of the cost of high interest rates on fiscal buffers as the US government faces refinancing a huge swathe of maturing debt, Bloomberg reported earlier this week. Treasury stats showed the government paid USD 776 bn over the past eight months in interest fees for its debt.

Most Fed policymakers still expect two rate cuts this year, though division is rising as a minority see no rate cuts needed this year, while others see a need for more than two. Powell downplayed this to say “no one holds these rate paths with a lot of conviction.”

MARKETS THIS MORNING-

Asian markets are in the red following the Fed’s move, with Japan’s Nikkei leading losses at 0.7%, South Korea’s Kospi falling around 0.3%, and Hong Kong’s Hang Seng losing nearly 0.5%. Over on Wall Street, futures also point to a weaker open.

TASI	10,591	-1.2% (YTD: -12.0%)
MSCI Tadawul 30	1,367	-0.9% (YTD: -9.5%)
NomuC	26,204	-1.0% (YTD: -16.8%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	30,839	+0.4% (YTD: +3.7%)
ADX	9,496	-0.4% (YTD: +0.8%)
DFM	5,306	-1.2% (YTD: +2.9%)
S&P 500	5981	-0.03% (YTD: +1.7%)
FTSE 100	8843	+0.1% (YTD: +8.2%)
Euro Stoxx 50	5267	-0.4% (YTD: +7.6%)
Brent crude	USD 76.60	+0.3%
Natural gas (Nymex)	USD 3.99	+3.6%
Gold	USD 3386.40	-0.6%
BTC	USD 104,702.00	+0.1% (YTD: +12.0%)
Sukuk/bond market index	911	0.0% (YTD: +1.0%)
S&P MENA Bond & Sukuk	144.18	-0.1% (YTD: +3.0%)
VIX (Volatility Index)	20.14	-6.8% (YTD: +16.1%)

THE CLOSING BELL: TADAWUL-

The TASI dropped 1.2% yesterday on turnover of SAR 6.2 bn. The index is down 12.0% YTD.

In the green: Baan (+1.6%), Advanced (+1.3%) and Dallah Health (+1.1%).

In the red: NCLE (-7.5%), Farm Superstores (-7.0%) and Ataa (-5.9%).

THE CLOSING BELL: NOMU-

The NomuC fell 1.0% yesterday on turnover of SAR 48.2 mn. The index is down 16.8% YTD.

In the green: TMC (+11.7%), Leaf (+6.9%) and Tibbiyah (+6.8%).

In the red: Anmat (-15.3%), Future Care (-9.2%) and Food Gate (-7.8%).

CORPORATE ACTIONS-

Arabian United Float Glass’ BoD approved the distribution of SAR 17 mn in dividends for FY 2024 at SAR 1 per share starting Monday, 30 June, it said in a disclosure to Tadawul yesterday.

Paper Home received the Capital Market Authority’s (CMA) approval to raise its capital by SAR 40 mn to SAR 60 mn, by issuing two bonus shares per each existing share, the CMA said in a statement on Tuesday. The increase, which is pending shareholders’ and regulatory approvals, will be funded via the company’s retained earnings, raising the number of shares to 6 mn.

CALENDAR

JUNE

24-25 June (Tuesday-Wednesday): Tech-ecO-System Summit (ToSS), Riyadh.

30 June (Monday): Cancellation of Fines and Exemption of Financial Penalties Initiative by the Zakat, Tax and Customs Authority (Zatca) deadline.

JULY

July (Second week): World Intellectual Property Organization (WIPO) Global Awards 2025 awards ceremony, Geneva.

7 July-24 August (Monday-Sunday): Esports World Cup, Riyadh.

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

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

AUGUST

7 July-24 August (Monday-Sunday): Esports World Cup, Riyadh.

5-17 August (Tuesday-Sunday): 2025 Fiba Asia Cup, Jeddah.

SEPTEMBER

15-17 September (Monday-Wednesday): Money 20/20 Middle East, Riyadh.

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

23 September (Tuesday): Saudi National Day.

OCTOBER

1-3 October (Wednesday-Friday): Saudi Green Building Forum, Riyadh.

7-8 October (Tuesday-Wednesday): Global EV & Mobility Technology (GEMTECH) Forum, Riyadh.

15 October (Wednesday): Russian-Arab Summit.

17 October (Friday): Saudization for private healthcare roles enters its second phase.

22-23 October (Wednesday-Thursday): Private Capital Forum, Riyadh.

28-30 October (Tuesday-Thursday): Future Investment Initiative (FII9), King Abdulaziz International Conference Center (KAICC) and the Ritz-Carlton, Riyadh.

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

NOVEMBER

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

11-13 November (Tuesday-Thursday): TouriseSummit, Riyadh.

17-20 November (Monday-Thursday): Cityscape Global, Riyadh Exhibition and Convention Centre, Riyadh.

23-26 November (Sunday-Wednesday): Saudi Food Exhibition and Conference, Riyadh.

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

27-30 November (Thursday-Sunday): World Rally Championship Saudi Arabia 2025, Jeddah.

30 November (Sunday): Zatca 21st E-invocing integration wave deadline.

DECEMBER

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

1-4 December (Monday-Thursday): 61st ISOCARP World Planning Congress, Riyadh.

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

25-27 December (Saturday-Monday): The Fortune Global Forum 2025, Riyadh.

31 December (Wednesday): Zatca 22st E-invoicing integration wave deadline.

2026

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

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

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

27-29 April (Monday-Wednesday): Aluminum Arabia, The Arena, 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.

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