GDP grows 1.3% in 2024, buoyed by non-oil activities

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Almajal Alarabi Group + SMC Hospitals each mull Tadawul IPOs

Good morning, wonderful people. The new week comes with “yuge” news on both the local and international levels, as flash estimates put our 2024 GDP growth at 1.3%, while Fitch Ratings gave another A+ for the Kingdom. PLUS- Entaj is out with details on its upcoming Tadawul IPO.

On the international front, Trump is shaking up global trade as he delivers on his pledges to punish top US trading partners with hefty tariffs. Let’s dive in.

WEATHER- Riyadh is expected to see a high of 19°C and a low of 10°C today, while Jeddah’s mercury will go as high as 33°C and as low as 23°C. Makkah will see a 32°C high and 19°C low.

PSAs-

The next round of e-invoicing: Companies that recorded more than SAR 1.5 mn in revenues subject to VAT in 2022 or 2023 will need to integrate their e-invoicing solutions with Zatca’s Fatoora platform by 31 October, according to a statement from Zatca.This is the latest phase of an e-invoicing rollout that began in late 2021.

WATCH THIS SPACE-

#1- Almajal Alarabi Group eyes going public: Almajal Alarabi Group (Mag), a facilities management and construction firm, is reportedly weighing a public listing on Tadawul’s main market, AGBI reports, citing people it says are familiar with the matter. The Riyadh-based company has tapped Riyadh Capital as its financial advisor for the potential IPO, the sources said.

IN CONTEXT- This comes against a backdrop of a recent decision allowing foreign investors to invest in listed companies that have real estate assets in Mecca and Medina. As the company is deeply involved in facility management and infrastructure services, the policy change enables foreign investors to expand their reach in the holy cities. In addition, foreign investments in real estate projects across the two cities are expected to further fuel growth in real estate projects.

Mag has been involved in landmark projects across the Kingdom, including the Two Holy Mosques, Riyadh Metro Line 1 and 2, PIF-owned Neom’s green hydrogen ammonia tanks, and Diriyah North Gate, among others, according to its website.

#2- SMC Hospitals could also opt for a Tadawul listing somewhere down the line as it remains open to exploring different routes to boost its capital, the company’s CEO Bassam Chahine told Al Arabiya, without specifying a timeline for the potential move.

While SMC is currently focusing on expanding within Riyadh, future plans to expand outside the capital are also in the cards, Chahine said. The healthcare provider plans to open three new hospitals in Riyadh by 2030, bringing its total network of hospitals to five, Chahine revealed. This comes as demand for private healthcare services in Riyadh is on the up amid government-led urban expansion and population growth.

#3- A regional Interpol office is coming to the Kingdom: The International Criminal Police Organization (Interpol) landed a host country agreement with Saudi Arabia to set up a regional office for Mena in Riyadh, it said in a statement.

#4- Saudi businesses landed 14 agreements valued at SAR 200 mn at the Saudi National Products Exhibition (SNP Expo2), hosted in Kuwait, in addition to other MoUs, according to state news agency SPA. No details were provided on the nature or breakdown of the agreements.

#5- The Saudi Agricultural Development Fund is expected to hand out SAR 7.4 bn (USD 2 bn) in funding this year, up 2.8% y-o-y, the fund’s spokesperson Habib Abdullah Al Shammari told Asharq Al Awsat. The fund backs small farmers, beekeepers, and livestock breeders, among others in a bid to boost local food production.

OIL WATCH-

Opec+ seems unlikely to change plans despite Trump’s push: Opec+ is expected to maintain its gradual output increase plan despite US President Donald Trump’s calls to boost production and lower oil prices to USD 60-70 per barrel, Reuters reports, citing delegates from the group. Four cartel delegates indicated no change, while two others were uncertain. Brent crude reached nearly USD 83 per barrel in January, driven by concerns over US sanctions on Russia.

REMEMBER- Opec+ has been withholding 5.9 mn bpd, or 5.7% of global supply, through a series of cuts since 2022 to support the market. The latest extension of output cuts through 1Q 2025 delayed production increases till April. The unwinding of 2.2 mn bpd in cuts, alongside an increase for the UAE, will begin in April with a monthly rise of 138k bpd, continuing until September 2026.

DATA POINTS-

A record 16 mn visitors have participated in Riyadh Season 2024, Asharq Alawsat reports, citing Chairman of the General Entertainment Authority Turki Al Alshiekh. The event attracted local and international visitors with diverse offerings ranging from boxing and wrestling matches to concerts, fine dining, scenic gardens, and entertainment zones.

SPORTS-

#1- Al Nassr snagged 21-year-old Colombian forward Jhon Durán from Aston Villa for an undisclosed fee, with reports estimating the agreement at EUR 77 mn plus add-ons, Reuters reports. Durán was tapped to support Cristiano Ronaldo and Sadio Mané, bolstering the club’s lineup for the second half of the season.

The transfer is Villa’s second-highest after Jack Grealish’s GBP 100 mn move to Manchester City in 2021. Earlier reports had suggested Villa was holding onto Durán after extending his contract to 2030, unwilling to part with Durán for anything less than GBP 80 mn.

Brighton couldn’t be enticed, though: The English club rejected Al Nassr’s bid for Japanese forward Kaoru Mitoma, reportedly increased to EUR 73 mn after an initial EUR 65 mn bid was also turned down, the Athletic said.

#2- Al Hilal also strikes out? Real Madrid reportedly rejected a EUR 300 mn offer from Al Hilal for its forward Rodrygo Goes, tapped to replace outgoing Neymar, according to unconfirmed Spanish media reports.

#3- UFC Saudi Arabia results: Nassourdine Imavov defeated Israel Adesanya in a second-round TKO at the UFC Fight Night in Riyadh last night. Also on the main card: Michael Page defeated Shara Magomedov, Sergei Pavlovich defeated Jairzinho Rozenstruik, and Vinicius Oliveira defeated Said Nurmagomedov — all by unanimous decision.

In the prelims: Muhammad Naimov defeated Kaan Ofli, Shamil Gaziev defeated Thomas Petersen, Terrance McKinney defeated Damir Hadzovic, Jasmine Jasudavicius defeated Mayra Bueno Silva, Bogdan Grad defeated Lucas Alexander, and Hamdy Abdelwahab defeated Jamal Pogues. The Ikram Aliskerov vs. Andre Muniz and Abdul Kareem Al Selwady vs. Bolaji Oki fights were canceled.

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THE BIG STORY ABROAD-

Trade wars begin: US President Donald Trump is once again dominating the conversation in the international press this morning, after delivering on his pledges to impose tariffs on top US trading partners yesterday.

Trump ordered 25% tariffs on Canadian and Mexican imports, and an additional 10% on imports from China as of Tuesday. Canadian energy products got a smaller duty at 10% in response to concerns of American refiners, while Mexican energy imports will be hit with the full 25%. Tariffs will be lifted when fentanyl and immigrants stop flowing into the US and “the crisis is alleviated,” the White House said in a statement.

Both Canada and Mexico vowed retaliatory tariffs, while Trump warned he will escalate tariffs in case of retaliation, and hinted at expanding them to include the EU, without specifying a timeline. The decision — affecting around USD 1.3 tn of imports — has sparked widespread fears of inflation spiralling out of control and businesses shutting down in the US and other countries. (Reuters | Bloomberg | NYT | CNBC)

CLOSER TO HOME- Hamas released three Israelis yesterday in exchange for 182 Palestinians, as the Gaza ceasefire agreement remains on track. This was the second exchange over the weekend, after Hamas exchanged three Israeli and five Thai nationals for 110 Palestinians on Thursday. The Rafah border crossing was also reopened for evacuating wounded Gazans from the strip for the first time since Israeli forces captured it nine months ago. (BBC | Associated Press | CNN)

CIRCLE YOUR CALENDAR-

Proptech firms looking to participate in the experimental regulatory environment mustregister by 31 March for the Real Estate General Authority’s Regulatory Sandbox Program. The program enables developers to test their proptech solutions in a controlled environment, in a bid to raise the number of proptech companies it houses to 1.5k over the next five years, up from 270 firms currently.

Saudi GDP grows 1.3% in 2024, buoyed by non-oil activities

Saudi Arabia’s economy rebounded in 2024, with real GDP growing 1.3% y-o-y, after contracting 0.8% in 2023 on the back of oil production cuts and lower crude prices, according to flash estimates (pdf) released by the General Authority of Statistics (Gastat).

The full-year growth figure is an uptick from the Finance Ministry’s 0.8% growth forecast, after revising down its initial forecast of 4.4%. The Kingdom’s GDP growth for 2024 was also higher than the World Bank’s revised estimate of 1.1% in December, and only 0.1 percentage point lower than the IMF’s recently revised 1.4% clip.

Driving the growth: A 4.3% expansion in non-oil activities and a 2.6% increase in government activities spurred the growth. Oil activities, on the other hand, shrank 4.5%.

EXPANSION SUSTAINED IN 4Q-

GDP grew by 4.4% y-o-y in 4Q last year, marking the highest growth rate in two years, according to Gastat, driven primarily by a 4.6% y-o-y increase in non-oil activities. Meanwhile, oil activities grew 3.4% y-o-y, while government activities grew 2.2% y-o-y.

REMEMBER- Real GDP grew 2.8% y-o-y in 3Q, snapping a four-quarter downward trend.

Pundits weigh in: The oil sector’s strength in 4Q “is surprising given the extension of Opec+ cuts until April,” Goldman Sachs Group’s MENA Economist Farouk Soussa told Bloomberg. Sousa flagged “a high level of Vision 2030-related investment and socio-economic reforms” as key drivers for non-oil growth.

On a quarterly basis: Seasonally adjusted real GDP was up 0.3% q-o-q in 4Q, supported by an increase of 1.3% in non-oil activities and a 0.6% increase in government activities by 0.6%. Meanwhile, quarterly growth was partly offset by a 1.5% drop in oil activities on the back of the Kingdom’s decision, along with the rest of Opec+, to extend existing oil output cuts until the end of 1Q 2025.

Data breakdown: The 1.3% q-o-q growth acceleration in 4Q’s non-oil economy, up from 0.7% in 3Q, is “in tune with the low level activity data,” Capital Economics MENA Economist James Swanston wrote in a note seen by EnterpriseAM Saudi. “Private sector credit lending growth strengthened in October and November,” Swanston said, adding that “while the PMI survey fell back in December, it was still the second highest reading of the year.”

LOOKING AHEAD-

Growth set to gain momentum in the medium-term: The IMF and the World Bank have recently slashed the Kingdom’s 2025 growth projections to 3.2% and 3.4% respectively, citing extended Opec+ production cuts. “We think GDP growth will accelerate this year as oil output cuts are unwound, but activity in the non-oil sector is likely to soften on the back of a turn to fiscal consolidation,” Swanston said, noting that Capital Economics expects the Saudi economy to grow 3.5% in 2025.

Driving growth in 2026: The World Bank upgraded its growth forecast for the economy of the world's biggest crude exporter to 5.4%, up from its previous forecast of 3.2%, as it expects “robust activity in the non-oil sector — especially in services — as well as higher oil production and exports,” the bank said in its latest Global Economic Prospects report. Meanwhile, the IMF penciled in a 4.1% growth clip in 2026, a downward revision of 0.3 percentage points.

Fitch affirms the Kingdom’s A+ credit rating, forecasts oil, non-oil GDP growth

Fitch Ratings affirmed Saudi Arabia’s long-term foreign-currency issuer default rating at A+ with a stable outlook, citing its robust fiscal position and strong external balance sheets, it said in a note on Thursday.

Behind the rating: Fitch said the “government’s debt-to-GDP [ratio] and sovereign net foreign assets are considerably stronger than both the A and AA medians.” It also cited “significant fiscal buffers” in deposits and other public sector assets.

The same challenges persist: The ratings agency repeated its assessment from February 2024 that “oil dependence, low World Bank governance indicators and vulnerability to geopolitical shocks remain relative weaknesses.” Still, governance is improving as policymakers push ahead with social and economic reforms and cabinet works to strengthen the effectiveness of state agencies and institutions.

Oil recovery will boost growth, but lower prices could increase deficits: Oil production is set to recover as Opec+ cuts are gradually lifted, which will underpin 2.7% growth in the oil sector in 2025, and 6.4% in 2026, Fitch projects. However, lower crude prices — forecasted at USD 70 per barrel in 2025 — are expected to reduce oil revenues, causing the 2025 budget deficit to widen to 3.8% of the Kingdom’s GDP. This is higher than the government target of 2.3% for 2025 and the 2.8% estimated in 2024.

The deficits could weaken external balance sheets: Government expenditure needs might drive an increase in external borrowing. Meanwhile, domestic investments are also expected to overshadow foreign asset acquisitions, in line with the government’s targets to boost investments inside the Kingdom and as the Public Investment Fund shifts its strategy to focus on domestic investments.

A “strong and resilient” non-oil sector: Fitch projects non-oil growth in 2025 and 2026 to come in at “a similar pace” as 2024 — where growth recorded 4.3% — driven by reforms and government investments, while maintaining resilience to declining oil prices.

Geopolitical risks are waning: Regional conflicts seem to be less of a risk to the Kingdom as things stand currently, with the country set to play an active role in reconstruction efforts across the region. Geopolitical factors had no substantial impact on the Saudi economy in 2024, Fitch argues.

Major changes could affect ratings in the medium-term, including a debt-to-GDP ratio far above Fitch forecasts, lack of productive investments in the Kingdom’s economy, or a major geopolitical escalation over an extended period, Fitch said.

Entaj issues prospectus for Tadawul IPO

Riyadh-based poultry producer Arabian Company for Agricultural & IndustrialInvestments (Entaj Foods) is taking a 30% stake to Tadawul in a secondary offering, with 9 mn shares up for grabs, according to its prospectus (pdf). The company lined up the Capital Market Authority’s approval for the main market IPO back in October 2024.

Who is selling? The sale will see Ara bian Agriculture Services (Arasco), Entaj's sole owner, reduce its direct ownership in the company to 65.1%, down from 95.10%, thereby locking in the sale’s net proceeds. Meanwhile, its indirect 4.9% stake in the company, which it holds through its fully-owned subsidiary Ocean Line Marine Services, will remain intact.

A two-tranche offering: The IPO will initially be limited to institutional investors, including investment funds, companies, qualified foreign investors, GCC corporate investors, and some foreign investors under swap agreements. Following that, retail investors will be able to subscribe to 10% of the offering, provided there is sufficient demand.

Subscription limits: Institutional investors have a minimum subscription limit of 100k shares, and a maximum of about 1.5 mn shares, while a retail investor can subscribe to anywhere between 10 and 250k shares.

IPO timeline: A five-day institutional book building period will kick off on Sunday, 9 February, where institutional investors will have until Tuesday, 25 February to book orders, with the payment deadline slated for Wednesday, 26 February. For retail investors, a two-day subscription window will open on Wednesday, 26 February. The final allocation of shares is slated for Tuesday, 4 March.

Financials + performance: Entaj logged SAR 22 mn in net income in 1Q 2024, up from SAR 16.1 mn y-o-y. Its revenue came in at SAR 339.6 mn in 1Q 2024, up from SAR 280.7 mn in the same quarter a year earlier.

ADVISORS- SNB Capital is quarterbacking the transaction as lead manager and financial advisor, with STAT Law Firm providing counsel. SNB tapped White & Case to be its counsel. Meanwhile, PwC serves as financial due diligence advisor, Euromonitor International acts as market consultant, and EY as auditor.

Receiving agents include Derayah Financial, Alinma Investment, Al Rajhi Capital, SNB Capital, Riyad Capital, Albilad Capital, ANB Capital, Alisthimar Capital, AlJazira Capital, GIB Capital, Alkhabeer Capital, SAB Invest, Sahm Capital, Saudi Fransi Capital, and Yaqeen Capital.

About Entaj: Entaj was founded in 2011 as the commercial and investment arm of Arasco before Arasco separated its entire poultry operations, including the Entaj brand, to be a dedicated poultry subsidiary. The company’s operations include broiler chicken production and fresh and frozen poultry products distribution, with the company providing its services across the Kingdom and the wider GCC market. The company has also expanded into table eggs, red meat products, and cold storage leasing services.

Lendo secures USD 690 mn facility led by JP Morgan

Homegrown debt crowdfunding startup Lendo lined up a USD 690 mn (SAR 2.6 bn) warehouse facility with JP Morgan, according to a statement.

Where will the money go? The funding will be earmarked to boost Lendo’s lending capacity, expand its product offerings, and widen its coverage for SMEs across the Kingdom as the government looks to increase the share of SME lending to 20% by 2030, the statement reads.

What they said: “The strong backing from global financial institutions such as JP Morgan validates our innovative approach to SME financing and positions us to expand our impact in the Saudi market significantly,” Lendo CEO and co-founder Osama Alraee said in the statement.

About Lendo: Founded in 2019 by Alraee and Mohamed Jawabri, Lendo is a peer-to-peer debt crowdfunding platform that connects SMEs with lenders. Companies in Saudi Arabia that have been in the market for at least one year with at least SAR 2 mn turnover can apply for loans on Lendo after they pass a due diligence screening.

FAST FACTS- Lendo was the second highest-funded Saudi startup in 2023, with USD 328 mn in total funding, after securing USD 28 mn in a a series B round led by PIF’s Sanabil Investments.

Saudi banks’ loan books grew 14.4% in 4Q 2024

Bank credit across all segments of the market grew 14.4% y-o-y to SAR 3.0 tn in 4Q 2024, according to the Saudi Central Bank’s (Sama) latest monthly statistical bulletin (pdf). Personal loans continued to account for the lion’s share (46.2%) of all credit handed out by local banks during the quarter, followed by corporate credit to the real estate sector, wholesale and retail trade, and electricity, gas, and water supplies.

Meanwhile, residential mortgages financed by banks hit SAR 30.2 bn during the quarter, up 53.4% y-o-y, with a total of 39.5k contracts. The total figure includes SAR 19.5 bn for houses, SAR 9.5 bn for apartments, and SAR 1.2 bn for land contracts. Mortgages have led banks’ lending growth in the Kingdom over the past five years, S&P Global said previously.

Consumer loans grew 6.6% y-o-y in 4Q 2024, reaching SAR 471.0 bn, with car loans accounting for the largest portion of this figure at SAR 11.7 bn. Home improvement loans followed in second place, with banks dishing out a total of SAR 8.9 bn for these personal loans. Consumer loans for furniture and home goods came in at SAR 8.5 bn during the quarter, while education loans hit SAR 8.2 bn.

Total credit card loans grew 15.9% y-o-y to SAR 31.4 bn in 4Q 2024.

Jarir Bookstore posts SAR 974 mn in net income for 2024

Earnings season continues, albeit at a slower pace this morning, with Jarir Marketing reporting its full-year 2024 earnings and East Pipes releasing its 3Q 2024 results.

JARIR MARKETING-

Tadawul-listed Jarir Marketing Company’s net income increased marginally to SAR 974 mn in 2024, according to a disclosure to Tadawul. Higher selling, marketing, administrative, and non-operating expenses impacted the results, the company said. Meanwhile, revenues grew 2.2% y-o-y to SAR 10.8 bn in the same period, driven by increased sales in smartphones, tablets, and computers.

EAST PIPES-

East Pipes Integrated Company reported a 237.2% y-o-y increase in net income in 9M 2024, reaching SAR 296.5 mn on the back of increased sales volumes, lower production costs, and reduced finance expenses, it said in its earnings release (pdf). Meanwhile, revenues rose 74.4% y-o-y to SAR 1.4 bn over the same period.

On a 3Q basis, East Pipes saw a 31.2% y-o-y increase in its net income to SAR 112.4 mn. Meanwhile, revenues dropped 4.4% y-o-y to SAR 527.9 mn over the same period due to lower sales volumes and a decline in the average selling prices, it said in a disclosure to Tadawul.

Educhain acquires India-born schools management platform Rarome

M&A-

Blockchain-backed digital credentialing provider for schools Educhain has fully acquired India-born K-12 schools management platform Rarome for an undisclosed sum, according to a press release (pdf). Educhain has offices in Dubai, Riyadh, Vancouver, and Toronto.

The pitch: “We will create a robust platform that integrates school management with secure digital credentialing, ensuring academic institutions have the tools they need to succeed in the digital age," Virendra Maloo, CEO of Rarome, said.

Rarome’s offerings: Rarome provides an extensive array of solutions, such as RFID attendance systems with SMS alerts, multi-school management, tailored ERP systems, multilingual support, and mobile applications for both parents and schools. Rarome also offers franchise licenses.

REAL ESTATE-

Sumou Real Estate to build Riyadh and Dammam projects: Sumou Real Estate Company signed two contracts with the Saudi Railway Company totalling SAR 64.4 mn to develop projects in Riyadh and Dammam, according to two disclosures to Tadawul (here and here).

The details: The Al Malaz project in Riyadh will cost SAR 34.87 mn and take 26 months to complete, while the second contract is valued at SAR 29.57 mn, and will see Somou develop the Arina project in Dammam in the span of 33 months.

HEALTHCARE-

Saudi is getting a new oncology center: Johns Hopkins Aramco Healthcare (JHAH) will launch an Oncology Center of Excellence, integrating AI and precision medicine to enhance cancer care, Al Arabiya reported, citing announcements on the sidelines of Arab Health 2024 in Dubai.

… and a major pharmacy chain: Aster Pharmacy also plans to spend USD 250 mn to expand its footprint in the Kingdom to 200 stores through a joint venture with Al Hokair Holding Group. The company also aims to introduce digital services via its myAster app.

AVIATION-

Flyadeal was accepted into the International Air Transport Association (IATA), after completing the association’s operational safety audit, according to a post on LinkedIn. The membership allows Flyadeal to participate in industry committees that focus on safety, operations, and digital innovation. Customers also benefit from faster payment processing through IATA’s Billing Settlement Plan (BSP). The airline will officially join the association in June.

ALSO- Flyadeal has launched its operations in Pakistan with twice-weekly flights from Riyadh and Jeddah to both Karachi and Lahore using Airbus A320 aircraft, according to Pakistan state news agency APP. The inaugural flight took off yesterday from Riyadh to Karachi’s Jinnah International Airport.

INFRASTRUCTURE-

Saudi Authority for Industrial Cities and Technology Zones (Modon) and PIF-owned Saudi Investment Recycling Company signed an MoU to develop waste management, treatment, and recycling facilities in industrial cities, aiming to advance circular economy initiatives in the Kingdom, according to a post on X.

European Central Bank cuts rates amid stalled growth

The European Central Bank lowered interest rates by 25 bps to 2.75% on Thursday, its fifth straight cut, as it pivots from fighting inflation to tackling sluggish growth, according to a statement. The eurozone economy has been struggling — Germany and France’s economies shrank in 4Q 2024, Italy’s flatlined, and Spain managed 0.8% growth, Reuters reports.

Analysts saw this coming: A rate cut this week “should be an easy decision,” European economist at BofA Global Research Evelyn Herrmann told Bloomberg ahead of the ECB’s rate cut, adding that “after that, things could get more interesting and possibly more controversial.” Markets are pricing in at least three more cuts this year, with a terminal rate near 2%.

The rationale: Policymakers say rising real incomes and fading monetary restrictions should boost demand, but weak exports, shrinking industry, and cautious consumers could deepen the slowdown. “Uncertainty is weighing on growth in the here and now in Europe,” PGIM’s Katharine Neiss told Bloomberg, citing trade war fears.

The ECB isn’t worried about inflation: While inflation ticked up to 2.4% in December, the ECB believes it’s “well on track” to return to target, pointing to easing wage growth and softer demand.

How far will the cuts go? At 2.75%, rates are already nearing the estimated “neutral” range of 1.75%-2.50%, meaning further easing could stimulate the economy. Policymakers are divided; Greece’s Yannis Stournaras backs a 2% rate by mid-year, but hawks like the Netherlands’ Klaas Knot warn that the ECB is nearing its limit. The central bank signaled it will take a “data-dependent and meeting-by-meeting approach.”

Trump’s tariffs add uncertainty: The ECB’s move comes after the US Fed held rates steady last week, with Chair Jerome Powell flagging uncertainty under President Donald Trump. Analysts warn that new tariffs on European exports could stall growth and force the ECB to act more aggressively, even as high services prices, rising energy costs, and weak productivity pose fresh inflation risks.

TASI	12,415	-0.2% (YTD: +3.2%)
MSCI Tadawul 30	1,544	-0.3% (YTD: +2.3%)
NomuC	31,251	+0.7% (YTD: -0.7%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	30,011	+0.4% (YTD: +0.9%)
ADX	9586	+0.03% (YTD: +1.8%)
DFM	5180	+0.5% (YTD: +0.4%)
S&P 500	6041	-0.5% (YTD: +2.7%)
FTSE 100	8674	+0.3% (YTD: +6.1%)
Euro Stoxx 50	5287	+0.1% (YTD: +8.0%)
Brent crude	USD 75.67	-0.3%
Natural gas (Nymex)	USD 3.04	-0.1%
Gold	USD 2835.00	-0.4%
BTC	USD 101,414	-0.7% (YTD: +8.3%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.2% yesterday on turnover of SAR 6.5 bn. The index is up 3.2% YTD.

In the green: UCA (+7.9%), SSP (+7.3%) and Gulf General (+5.9%).

In the red: Bupa Arabia (-4.1%), Chubb (-3.6%) and Medgulf (-3.2%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.7% yesterday on turnover of SAR 50.4 mn. The index is down 0.7% YTD.

In the green: TMC (+30.0%), Enma Alrawabi (+12.9%) and Aqaseem (+8.7%).

In the red: Alshehili Metal (-8.7%), Waja (-7.2%) and Almujtama MedicaL (-5.8%)

CORPORATE ACTIONS-

#1- Banque Saudi Fransi (BSF) is set to distribute SAR 1.25 bn in dividends for 2H 2024, it said in a disclosure to Tadawul. Owners of some 2.49 bn shares will be eligible for SAR 0.50 apiece, with dates to be announced later.

#2- Allied Cooperative Ins. Group received a six-month extension to increase its capital by SAR 209 to reach SAR 500 mn through a rights issue, following approval from the Ins. Authority, it said in a disclosure to Tadawul. The capital increase is now pending other regulatory approvals.

#3- Alkhabeer Capital is distributing SAR 14.8 mn in dividends to Alkhabeer REIT unitholders for 4Q 2024 at SAR 0.105 per unit, it said in a disclosure to Tadawul. Payments are set to be made by 10 April, within 40 business days of the eligibility date on 13 February.

#4- Emaar EC deposited returns from sale of fractional shares — resulting from capital reduction — into shareholder’s accounts, it said in a disclosure to Tadawul. The company carried out a capital reduction by 53.8% to SAR 5.23 bn, via cancelling about 0.54 shares for every one share to extinguish accumulated losses, it said in an earlier disclosure back in January.

Arab FMs reject Trump’s bid to relocate Gazans to Egypt, Jordan

Arab foreign ministers rejected US President Donald Trump’s call for Egypt and Jordan to take in Palestinians from Gaza, issuing a joint statement rejecting any attempt to strip Palestinians of their rights, whether through settlements, evictions, annexation, or forced displacement. Foreign ministers and government officials from Egypt, Jordan, Saudi Arabia, Qatar, the United Arab Emirates, the Palestinian Authority, and the Arab League — who met in Cairo yesterday — said they were willing to work with the Trump administration toward comprehensive Middle East peace founded on a two-state solution “in a manner that ensures the Palestinians remain on their land.” The story also got ink in Reuters | AP | CBS.

ALSO- Foreign Minister Faisal bin Farhan and US Secretary of State Marco Rubio discussed bilateral ties and regional developments in a phone call on Friday, state news agency SPA reported.

CALENDAR

EVENTS WITH NO SET DATE

1Q: BinDawood Holding expected to close 100% acquisition of Zahrat Al Rawdah Pharma.

1Q: Roshn expected to raise SAR 2.6 bn from an international bank.

FEBRUARY

2 February (Sunday): Flyadeal launches direct flights to Karachi, Pakistan, departing from Riyadh and Jeddah twice a week.

2 February: Derayah Financial announces price range and begins institutional book building for its Tadawul IPO.

3-5 February (Monday-Wednesday): Saudi International Marine Exhibition (SIMEC), Riyadh.

4-5 February (Tuesday-Wednesday): The RLC Global Forum, Riyadh.

4-5 February (Tuesday-Wednesday): Capital Markets & ESG Finance, Hilton Riyadh Hotel & Residences.

6 February (Thursday): Property registration deadline for owners in several districts of seven Qassim cities.

6-8 February (Thursday-Saturday): LIV Golf season opener, Riyadh Golf Club, Riyadh.

8 February (Saturday): Sotheby’s first auction in the Kingdom, Diriyah.

9-12 February (Sunday-Wednesday): LEAP Tech Conference, Malham, Riyadh.

9-12 February (Sunday-Wednesday): DeepFest by Leap, Riyadh.

10-12 February (Monday-Wednesday): Saudi Travel Market, Riyadh International Exhibition Center.

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

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

15-18 February (Saturday-Tuesday): Week one of Big 5 Construct Saudi, Riyadh Front Exhibition & Conference Center.

16-17 February (Sunday-Monday): AlUla Conference for Emerging Market Economies, AlUla.

18 February (Tuesday): The Capital Markets Forum, KAFD Conference Centre, Riyadh.

19-20 February (Wednesday-Thursday): The Capital Markets Forum, The Four Seasons, Riyadh.

19 February (Wednesday): Derayah REIT dividend distribution.

19-21 February (Wednesday-Friday): Saudi Media Forum, Riyadh.

21-22 February (Friday-Saturday): The Saudi Cup, Riyadh.

22 February (Saturday): Founding Day.

22 February (Saturday): Dazn Boxing event: Beterbiev vs Bivol II, Riyadh.

23-27 February (Sunday-Thursday): Riyadh International Disputes Week, Hilton Riyadh Hotel Granada.

24-25 February (Monday-Tuesday): The Riyadh International Humanitarian Forum, Riyadh.

24-27 February (Monday-Thursday): Week two of Big 5 Construct Saudi, Riyadh Front Exhibition & Conference Center.

MARCH

1-30 March: Ramadan (TBC).

18-19 March (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.

31 March- 3 April (Monday-Thursday): Eid Al Fitr.

APRIL

7-9 April (Monday-Wednesday): Sports Investment Forum (SIF), Riyadh.

3-20 April (Thursday-Sunday): AFC Asian U17 Cup.

14-16 April (Monday-Wednesday): Future Hospitality Summit, Mandarin Oriental Al Faisaliah, Riyadh.

18-20 April (Friday-Sunday): Saudi Arabian Grand Prix, Jeddah,

21-24 April (Monday-Thursday): Saudi Food Exhibition and Conference, Riyadh.

22-23 April (Tuesday-Wednesday): AAM Middle East, Riyadh.

25 April- 4 May (Friday-Sunday): AFC Champions League Elite Finals

MAY

6-7 May (Tuesday-Wednesday): Federal Open Market Committee meeting.

12-15 May (Monday-Thursday): Saudi Smart Manufacturing, Riyadh International Convention & Exhibition Center.

13-14 May (Tuesday-Wednesday): Global EV & Mobility Technology Forum, The Arena, Riyadh.

23 May (Friday): Guns N’ Roses Show, Riyadh.

31 May-5 June (Saturday-Thursday): Hajj.

JUNE

6-9 June ( Friday-Monday): Eid Al Adha.

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

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

JULY

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

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

AUGUST

5-17 August (Tuesday-Sunday): Fiba Asian Cup.

SEPTEMBER

15-17 September (Sunday-Tuesday): Money 20/20 Middle East, Riyadh.

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

23 September (Tuesday): Saudi National Day.

OCTOBER

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

NOVEMBER

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

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

27-30 November (Thursday-Sunday): The World Rally Championship (WRC), Jeddah.

DECEMBER

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

December: The Fortune Global Forum 2025, Riyadh.

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

2026

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

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

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

2027

The World Water Forum takes place in Riyadh.

The Ocean Race finishes in Amaala on the Red Sea.

Riyadh-Kudmi transmission line to be completed.

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