Happy Founding Day

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Trump speaks on PIF’s FII Priority summit in Miami + PIF’s Scopely in talks to acquire Pokémon Go developer

Good morning ladies and gents, and a Happy Founding Day. EnterpriseAM Saudi will be off on Sunday, 23 February, but will be back in your inboxes right on Monday with the latest in business and finance. We have a packed issue for you today, so let's dive in.

HAPPENING TOMORROW-

#1- The three-day Saudi Media Forum at the Hilton Riyadh is set to conclude tomorrow. The event gathers leading local and international media professionals to discuss strategic partnerships, digital media, green technology in media, podcasting, the 2034 World Cup, and the impact of AI on media.

#2- The two-day Saudi Cup weekend kicks off tomorrow at Riyadh’s King Abdulaziz Racecourse and will wrap up by Saturday. The horse racing tournament will see upwards of USD 38.1 mn in prize money, while cuisine and cultural events will also be taking place off the track. Book your ticket here, but be sure to come decked in national or formal attire.

PSAs-

#1- WEATHER- ⚠️ Brace for thunderstorms: The General Directorate of Civil Defense issued redalerts for severe rainfall affecting Riyadh, Al Qasseem, Hail, Eastern, and Northern Borders provinces, according to separate posts on X. A rainy Riyadh is looking at a high of 23°C and a 12°C low, while a windy Jeddah will see its mercury peak at 30°C and hit a low of 20°C. Meanwhile, Dammam will see thunderstorms and a high of 23°C and a 13°C low.

#2- The amended labor law went into effect yesterday, according to a statement from the Human Resources and Social Development Ministry. The amendments, published in August, introduced changes to the rules on resignation and termination procedures, extended maternity leave, added new rules for calculating overtime, and updated policies for foreign workers' contracts.

WATCH THIS SPACE-

#1- Donald Trump delivered an address at the first day of the PIF’s FII Priority summit in Miami, Florida this morning, calling Saudi Arabia “a special place with special leaders.” The US president thanked The Kingdom and the Crown Price Mohammed bin Salman for a “great job” on hosting Ukraine talks and releasing Americans detained on Russia, while blasting Ukraine’s Zelensky and promising more sweeping tariffs.

Who else was there: Elon Musk, richest man in the world and Trump’s close confidant, was in the audience next to Saudi ambassador to the US, Princess Reema Bandar Al-Saud. Attendees also included National Security Advisor Mike Waltz, White House Middle East Envoy Steve Witkoff, as well as prominent Saudi and US business leaders, including PIF Governer Yasir Al Rumayyan and TikTok CEO Shou Zi Chew.

IN CONTEXT- The three-day summit brings together global financiers and tech executives, who are flocking to Florida to make the most of Crown Prince’s earlier pledge to increase the Kingdom’s investment and trade portfolios with the US by USD 600 bn.

#2- Total investments at ِAramco’s Jafurah gas field are expected to exceed USD 100 bn over the next 15 years, while the gas production hub is expected to contribute some USD 23 bn to the Kingdom’s GDP every year, state news agency SPA reports, citing statements by Aramco CEO Amin Nasser at Al-Ahsa Investment Forum 2025. Production is expected to kick off this year at the rate of 200 mn mscf/day, to reach 2 bn mscf/day by 2030, Nasser added.

ALSO- The first phase of King Salman Energy Park (Spark) in Al Ahsa is now complete, with over 60 local and international investors contributing upwards of SAR 12 bn, Nasser added. The first and largest privately owned dry port is also being developed in the Eastern Province, set to begin operating in phases starting 2Q 2025, with a final capacity of 10 mn ton capacity once all stages are complete.

#3- PIF’s Scopely in talks to acquire Pokémon Go developer: US-based game developer Scopely — wholly-owned by PIF’s Savvy Games Group — is reportedly close to acquiring Niantic ’s video game division under a USD 3.5 bn transaction, Bloomberg reports citing unnamed sources. An agreement could be announced “in coming weeks” and would include the Pokémon title among other mobile games, the sources said.

Savvy is scaling up its gaming portfolio: PIF’s gaming arm snapped up Scopely for USD 4.9 bn last year in the “largest investment Savvy has made to-date,” CEO Brian Ward at the time. Savvy also signed an MoU with SBI Holdings last month to introduce Japanese gaming companies into its Esports ecosystem.

DATA POINTS-

#1- Consumer spending via point-of-sale (PoS) transactions in the Kingdom dropped 3.0% w-o-w for the week ending February 15 to just under SAR 13.3 bn, according to the Saudi Central Bank’s (Sama) report (pdf). The number of weekly transactions also declined by 1.3% to 216.7k.

The details: Food and beverages, as usual, made up the biggest chunk of spending in terms of value during the week, falling 2.9% w-o-w to some SAR 1.98 bn, with restaurants and cafes coming in second place at just over SAR 1.95 bn, marking a 1.5% drop from the previous week. Riyadh had the highest value of PoS transactions at SAR 4.74 bn, followed by Jeddah at SAR 1.92 bn.

#2- Saudi Arabia's holdings in US Treasury bills and bonds were up 4% y-o-y at USD 137.5 bn in December 2024, with purchases worth USD 5.5 bn made during last year, according to US Treasury data. Investments were up 1.4% m-om in December. The uptick was driven by expectations that interest rates will remain higher for a longer period due to new inflationary policies from the new Trump administration, thereby supporting bond yields, Aleqtisadiah reports.

OIL WATCH-

Brazil is one step closer to joining Opec+: Brazil’s National Council for Energy approved joining the Opec+ Charter of Cooperation (CoC), according to a statement from Opev. Brazil will only participate in the CoC — a permanent forum for Opec and Opec+ countries to discuss oil related issues — and will not be party to binding obligations, the Associated Press reports citing Brazilian Mines and Energy Minister Alexandre Silveira as saying. Brazil will also not participate in the group’s decision-making.

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THE BIG STORY ABROAD-

Trump and Zelensky’s war of words is dominating the front pages this morning, as analysts fear it signals a dramatic shift in US foreign policy on Russia and a pivot away from the EU.

Move it or lose it: US President Donald Trump again slammed his Ukrainian counterpart Volodymyr Zelensky yesterday for misusing USD 350 bn aid from the US, saying he “better move fast” on reaching an agreement with Russia, or the “dictator” — as Trump called him — might not have a nation to lead. Zelensky had remarked earlier in the day that the US president “is living in this disinformation space” created by the Kremlin. (Associated Press | Washington Post | Reuters | FT)

Trump’s executive orders are not slowing down: The president said on Tuesday he will impose tariffs on autos “in the neighborhood of 25%” on 2 April, as well as similar tariffs on semiconductors and pharma imports with no clear timeline. The White House announced more executive orders will be signed in a few hours. (Reuters | Washington Post)

OVER IN TECH- Microsoft is out with “Majorana 1,” its first quantum chip. The multinational giant claims it had to create a new state of matter called the “topological state” to develop the chip, whose components were manufactured in the US. (CNBC | NY Times)

Shard Capital, Alqahtani Holding ink framework agreement for USD 7 bn petrochemical complex

Industrial conglomerate Alqahtani Holding and UK-based Shard Capital and inked a framework agreement for a USD 7 bn petrochemical production complex in New Alamein with the Egyptian Petrochemicals Holding Company and the Investment Ministry, Egypt’s Oil Ministry said in a statement. When the project first came to light, it was reported that the facility would produce 1.5 mn tons of petrochemical products and another 1 mn tons of petroleum products, including kerosene and mazut, per year.

REMEMBER- The project has been in the works for a while now, with the Egyptian Petrochemicals Holding Company inking an agreement with a British consortium that included Shard Capital to develop the complex in 2020 — it was valued at USD 8.5 bn back then.

Alqahtani Holding is a relatively recent addition to the project: We first got word of the group’s involvement in the project last December from an Egypt’s Oil Ministry statement. When the project first emerged five years ago — also at the Egypt Energy Show — Shard’s private sector partner for the project was the UK’s BSW Group.

The project will be private sector led and private sector funded, with Saudi, British, and Emirati investors backing the project, Shard’s legal advisor Zaki Hashem said in a separate statement (pdf).

BUT- There’s still a lot we don’t know about the project, including a timeline or how the ownership will be split.

Acwa Power snaps up Kuwaiti, Bahraini assets from Engie subsidiary for SAR 2.6 bn

Acwa Power snaps up Kuwaiti, Bahraini assets from Kahrabel: Homegrown renewables giant Acwa Power sealed a SAR 2.6 bn share purchase agreement with Kahrabel — the Mena operations arm of France’s Engie — that will see Acwa Power acquire a 4.6 GW portfolio of power generation and water desalination assets, it said in a filing to Tadawul. The move marks the company’s entry into the Kuwaiti market and expands its reach in Bahrain.

Four plants, one play: The agreement will see Acwa Power tap its own resources and take on additional debt to secure an 18% stake in the 1.52 GW Az-Zour North plant in Kuwait, a 45% stake in each of Bahrain’s 940 MW Al Ezzel and 1.22 GW Al Dur plants, and a 30% stake in the 930 MW Al Hidd plant.

About the arrangement: The purchase is set to be made through a special purpose vehicle and involves buying stakes in the four independent power and water projects (IWPPs), along with their associated operations and maintenance businesses. The transaction is pending regulatory approvals and fulfilling certain conditions under the agreement before the transfer of ownership.

ICYMI- Acwa Power has been active: Acwa Power signed a SAR 8.6 bn power purchase agreement with the Egyptian Electricity Transmission Company earlier this week to set up a 2 GW wind farm in Egypt’s South Hurghada and is also constructing a 1.1 GW farm in the Gulf of Suez worth USD 1.2 bn with Egypt’s Hassan Allam Utilities. Earlier this month, it inked seven partnership agreements for green hydrogen and desalination projects with local and international partners.

Big ambitions: The Riyadh-based giant aims to expand its renewables, green hydrogen, and desalination portfolio to about USD 250 bn by 2030.

IN OTHER M&A NEWS-

Saudi Aramco inked definite agreements to acquire a 25% stake in Philippines-based UniOil Petroleum, state news agency SPA reports. The move comes as part of the oil giant’s strategy to expand its global downstream assets and follows recent similar acquisitions in Chile and Pakistan. The value of the transaction, which is pending regulatory approvals and standard closing conditions, was not disclosed.

Entaj prices IPO at the top of the guidance range at SAR 50 apiece

Entaj prices IPO at the top of the range: Arabian Company for Agricultural and Industrial Investment (Entaj Foods) set its final IPO price at SAR 50 per share — the top of the indicative SAR 46 to 50 range it was guiding on — according to a disclosure (pdf) to the bourse. Strong demand from institutional investors saw the largest tranche of the offering sell out within hours of opening, closing at 208.4x oversubscription, with total orders hitting SAR 93 bn.

Proceeds + market cap: The offering would see the Riyad-based poultry producer raise some SAR 450 mn in IPO proceeds, giving Entaj a market cap of SAR 1.5 bn at listing.

REMEMBER- This is a secondary offering. Entaj is taking a 30% stake to market, good for 9 mn shares, in a secondary offering whereby the company’s sole owner Arabian Agriculture Services (ARASCO) will rake in all the proceeds.

What’s next? Some 10% of the total shares on offer will be open to retail investors starting Wednesday, 26 February. The two-day retail subscription period will allow retail investors to book between 10 to 250k shares each, with the final allocation scheduled for Tuesday, 4 March. The exact date of the first day of trading was not disclosed.

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 a financial due diligence advisor, Euromonitor International as a market consultant, and EY as an 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.

Maaden finalizes SAR 3.6 bn Alba stake purchase in Bahrain’s Alba from Sabic

Ma’aden buys SABIC out of Bahrain’s Alba in push towards green metals: Saudi Basic Industries (Sabic) wrapped up the sale of its entire 20.62% stake in Bahrain Bourse-listed Aluminium Bahrain (Alba) to Saudi Arabian Mining (Ma’aden) following regulatory approvals, according to two separate filings to Tadawul (here and here). Sabic lined up some SAR 3.6 bn in proceeds from the sale, which saw Ma’aden purchase some 292.8k ordinary shares in Alba from a subsidiary of Sabic.

REMEMBER- Ma’aden agreed to acquire a stake in Alba through a share swap to cross-list it on the Saudi Exchange last September. The move was initially part of a scrapped plan that included a potential merger between Ma’aden and Alba.

Alba is expanding its green aluminum production: The company partnered with Japan’s Daiki Aluminium in August 2024 to develop a recycling facility for aluminum dross—a byproduct of the smelting process—to recover valuable metal and cut waste. Meanwhile, Alba is installing a 680.9 MW hydrogen-ready turbine, the first of its kind globally, at its fifth power plant. The company is also working with Mitsubishi to develop CO2 capture technology, aiming to remove 500k-1 mn metric tons of emissions per year by 2030.

Market Reax: Ma’aden’s stock climbed 0.31% on the news closing at SAR 48.35 yesterday, while Sabic’s share price remained unchanged at SAR 65.70. Meanwhile, Alba’s stock was up nearly 0.1% at BHD 1.10.

ADVISORS- Merrill Lynch KSA has been the financial advisor for Ma’aden, with AS&H Clifford Chance Law Firm serving as counsel. Meanwhile, Moelis & Company UK has been Alba’s financial advisor on the transaction.

BMG is advising China’s Dalipal on Saudi expansion plans + Highlights from CMF

Saudi Tadawul Group in wrapping up its three-day Capital Markets Forum today. The event, held under the theme “Powering Connections”, saw a strong push towards digitizing Tadawul’s activities through new apps, as well as the Saudi Capital Market Awards (SCMA) in 2024. Here are the highlights from the first two days:

#1- BMG tapped as financial advisor for Dalipal Saudi expansion: Chinese oil and gas pipes manufacturer Dalipal Holdings tapped homegrown BMG Financial Group as financial advisor for its upcoming private offering, whereby the company is looking to raise USD 600 mn from strategic investors to support the first phase of its Saudi expansion, BMG CEO Basil Al Ghalayini told Al Arabiya on the sidelines of the Capital Markets Forum in Riyadh. Negotiations are underway with family businesses and funds to finance the company's private offering.

More on Dalipal’s Saudi plans: The Hong Kong-listed company — capitalized at some USD 2 bn — has acquired a 1 mn sqm plot in King Salman Industrial City in Dammam where it plans to establish an export-oriented manufacturing hub that will supply oil, gas, and hydrogen pipelines to the region, Europe, and America, Al Ghalayini explained. Dalipal is also planning a dual listing on the Saudi Exchange to raise an additional USD 1.5 bn by 4Q 2025 for the second phase of its Saudi expansion.

BMG also inked contracts with six companies in the Hajj and Umrah sector that are looking to list on Nomu or the main market. The company is currently advising on the listing arrangements for a total of 15 firms, with 12 targeting Nomu and three shooting for the main market, Al Ghalayini added.

#2- Tadawul launched the Saudi Exchange App (Google Play), which looks to integrate all of STG’s services for investors, firms, and other market players in an easy-to-use platform, it said in a press release (pdf). STG’s innovation arm Wamid also partnered with Google Cloud and Deloitte to develop capital market data products.

The app joins new digital offerings announced at the CMF, including a new IPO management platform to boost equity market efficiency, and the Edaa Connect platform that will serve as a central hub for subscription and redemption of mutual fund investments.

#3- Tadawul also inked a number of agreements, including an MoU with the Financial Academy to establish finance programs under collaborations with local and international universities, another MoU with Jakarta Futures Exchange (JFX) allowing JFX members access to the Saudi Exchange. The Securities Clearing Center Company (Muqassa) also signed an MoU with FIS Global to provide technologies supporting the Saudi derivatives market.

ALSO- The group unveiled plans for more CMF conferences this year, with a Hong Kong event slated for May and an inaugural New York function in October.

#4- Aljazira Capital and Target launched a SAR 1 bn fund at CMF, dubbed the Aljazira Target Al Narjus Real Estate Fund, according to a CMF post on X. No further details were provided.

** PLUS- Our friends at EFG Hermes, HSBC Saudi Arabia, and snagged awards at the 2024 Saudi Capital Market Awards (SCMA). We have the full list in the news well below.

Mobily, Sal, Yamama report 2024 earnings

MOBILY-

EtihadEtisalat (Mobily) reported a 39.2% y-o-y increase in net income to SAR 3.1 bn in 2024, pushed by revenue growth, higher EBITDA, and cost efficiency measures, according to a statement (pdf ). The business segment recorded the largest expansion thanks to contributions from government, large enterprises, and small to medium-sized enterprises (SMEs), beating analyst expectations of SAR 2.84 bn, according to Asharq Business.

Revenues rose 8.6% y-o-y in 2024 to SAR 18.2 bn, supported by expansions across all segments, and mobile subscribers increasing to 12.3 mn.

In the pipeline: Mobily is planning to raise capital spending from 14% to 16-18% of total revenue in 2025-2026, CEO Salman Al-Badran told Al Arabiya. The company is investing some USD 900 mn to establish AI data centers and lay down the submarine cable in Duba to connect Africa, the Middle East, Asia, and Europe.

ALSO- Mobily’s board approved the distribution of SAR 1.1 bn in interim dividends for 2H 2024 at SAR 1.30 per share, starting 9 April, it said in a separate disclosure.

SAUDI LOGISTICS COMPANY-

Saudi Logistics Company (Sal) logged a net income of SAR 661 mn in 2024, up 30% y-o-y, according to its earnings release (pdf). The improved performance came on the back of grwoth in volumes and cost savings. Meanwhile, revenues were up 12% at SAR 1.6 bn on the back of solid results across the firm’s divisions, despite geopolitical challenges.

The drivers: The firm’s handling division capitalized on new prospects following geopolitical developments at the start of 2024, leading to a sharp uptick in 1Q air cargo volumes. The execution of strategic projects, a rise in courier activity, and demand from major events including Riyadh Season and F1 also drove the increase in sales, according to the release.

ALSO- Sal is distributing SAR 106.4 mn in dividends for 4Q 2024 at SAR 1.33 apiece, according to a separate disclosure to Tadawul. Distribution is set to take place within 15 business days of the Wednesday, 26 February eligibility date.

YAMAMA CEMENT-

Yamama Cement’s net income increased 38.3% y-o-y in 2024 to SAR 420.7 mn, it said in a disclosure to Tadawul. Revenues were up 25.4% y-o-y at SAR 1.2 bn over the same period. Growth in the top and bottom lines was primarily driven by higher sales value, the company said.

ALSO- The company’s board greenlit the distribution of SAR 202.5k in dividends for FY2024 at SAR 1.00 a piece to shareholders, it said in a separate disclosure to Tadawul. The payment date will be announced following the next general assembly approval.

Rasan, EFG Hermes, HSBC and others snag awards at the 2024 SCMA

The 2024 Saudi Capital Market Awards (SCMA) — organized by Saudi Tadawul Group in concert with the CFA Society Saudi Arabia and the Middle East Investor Relations Association (Meira) — saw Rasan, EFG Hermes, SNB Capital and others celebrated for achievements and best practices in Saudi’s capital market. The awards were unveiled on the first day of the Capital Markets Forum.

Rasan’s SAR 841 mnTadawuldebut crowned IPO of the Year: Fintech startup Rasan Information Technology took home the award for the best IPO on Tadawul’s main market in 2024 at the , according to a press release. Meanwhile, First Avenue’s SAR 98.5 mn IPO was named the year’s best on the parallel market Nomu.

Our friends at EFG Hermes also snagged the Research House of the Year award, distinguishing the firm for “their insights and exceptional analysis that supported informed market decision-making,” according to a post on X. Our friends HSBC Saudi Arabia also received the Debt Capital Markets House of the Year award.

MEANWHILE- SNB Capital racked up four awards, including the Merger and Acquisition of the Year, Most Active Derivatives Broker of the Year, Direct Clearing Member of the Year, and the Investment Bank of the Year.

Also on the list: while Jadwa Investment was named Asset Manager of the Year, and Derayah Financial was named Broker of the Year. Meanwhile, BSF Capital was recognized as the Equity Capital Markets House of the Year, while also taking home the award for the Private Placement of the Year.

Other highlights:

General Clearing Member of the Year went to Saudi Awwal Bank (SAB);
Direct Listing of the Year on Nomu went to Miral Dental Clinics;
Custodian of the Year went to Riyad Capital;
Saudi Aramco snagged Sultan AlDugaither Award for the Best Investor Relations Program of the Year in the Large-Cap category;
Luberef was names the Best Investor Relations Program of the Year in the Mid-Cap category;
First Mills was named the Best Investor Relations Program of the Year in the Small-Cap category (under SAR 3.75 bn).

OVER TO KAFD- King Abdullah Financial District Development and Management Company (Kafd DMC) earned three new LEED certifications from the US Green Building Council, according to a press release. The awards were given for Building Design and Construction at its fire station, Interior Design and Construction at its HQ, and Operations and Maintenance at the PIF Tower.

PIF targets René Benko assets to recover Signa investment losses

The Financial Times is out with a piece highlighting PIF’s efforts to recover mns of USD lost following the collapse of Signa Group, with the fund’s lawyers going after Signa-founder and now bankrupt European property tycoon René Benko. PIF’s lawyers have demanded the eviction of Benko and his family from their palatial home overlooking Innsbruck, Austria, while also calling on the Laura Foundation — which manages Benko’s wealth — to hold all payments to beneficiaries, the salmon-colored paper said citing a letter it has seen.

IN CONTEXT- PIF is among the largest creditors of now-collapsed Signa — which filed for bankruptcy in 2023 amid falling property prices and rising interest rates — and is owed something in the order of hundreds of USD mns by the entity, the salmon-colored paper explained. The group’s sprawling corporate structure has made asset recovery difficult, with administrators warning that creditors will likely only recoup a fraction of their investments.

Where is Benko now? Benko is currently facing criminal charges, including embezzlement and concealing assets, with investigations focusing on his personal wealth and the Laura Foundation, which he allegedly used to hide assets. Benko’s lawyers say he denies the charges.

Takatuf is now a cornerstone investor in Umm Al Qura IPO

IPO WATCH-

Umm Al Qura for Development and Construction secured a binding commitment from the Takatuf Holding Group to subscribe to its upcoming IPO on the main market, according to a press release (pdf). Under the agreement, Takatuf will be the only cornerstone investor where it will pre-book 6.8% of the offered shares, accounting for 0.62% of the company’s total share capital after the offering.

REMEMBER- PIF-backed real estate developer Umm Al Qura is guiding on a price range of SAR 14-15 per share for its Tadawul IPO, where it is taking a 9.1% stake public.

About Takatuf: The company is wholly owned by Abdullah Sulaiman Al Rajhi Holding Company, the investment arm of Waqf Sulaiman Alrajhi, one of the largest endowments in the Islamic world.

MANUFACTURING-

TrinaTracker opens 3 GW factory in Jeddah: Trina Solar’s solar tracking solutions subsidiary TrinaTracker opened a 3 GW manufacturing facility — dubbed Trina Tracker for Renewable Energy — in Jeddah’s 3rd Industrial City, according to a press release. TrinaTracker acquired the land for the facility under a lease agreement with the Saudi Authority for Industrial Cities and Technology Zones (Modon).

The details: The factory will produce its Vanguard series of solar trackers and smart control systems — which enhance energy yield by 8% annually — once operational sometime this quarter. This marks TrinaTracker’s fourth production plant, along with those in China, Spain, and Brazil. The plant will run a zero pollutant emissions process and is expected to accelerate delivery, technical support, and sales.

REAL ESTATE-

The Real Estate General Authority issued off-plan marketing licenses for 45 projects totaling 14.3k units across Saudi Arabia, it said in an X post. The lion's share was taken by Riyadh and Jeddah with 18 and 14 licenses, respectively.

Key developments: The largest projects include Zood’s Earth and Mohamed AlHabib’s Inar, each with 2k units, National Housing Company’s Dania Al-Fursan with 1.9k units, Zood’s Al Nakheel with 1.8k units, and Rusan’s Sama Al Rusan Scheme with 1.2k units.

DEBT WATCH-

Ma’aden’s subsidiary completes final redemption of its Sukuk: Saudi Arabian Mining Company (Ma’aden)’s subsidiary Ma’aden Phosphate Company fully redeemed its SAR 3.5 bn shariah-compliant sukuk, issued in 2018, according to a disclosure to Tadawul. The Sukuk was 100% repaid by yesterday. The repayments were deposited into bondholders’ accounts by HSBC Saudi Arabia.

HSBC to exit Bahraini retail banking business + unveils plan to cut costs

HSBC to sell its retail banking business in Bahrain: The lender will sell its Bahraini retail banking operations to the Bank of Bahrain and Kuwait (BBK), HSBC Bahrain said in a notice to customers. The move is pending the Central Bank of Bahrain’s approval and is expected to be completed in 4Q 2025. The lender didn’t disclose the value of the transaction.

The details: HSBC will transfer its retail loans, deposits, and accounts of some 76k customers to BBK. The sale doesn’t include the bank’s corporate and private banking businesses in the GCC nation.

Part of a wider restructuring agenda: The decision to sell comes as the lender continues a sweeping overhaul as it shifts its focus away from low-returning consumer banking activities. HSBC has also laid off 40 investment bankers in Hong Kong, following an earlier decision to shut down its M&As and equities businesses in Europe and the Americas, a source with knowledge of the matter told Reuters.

And a plan to cut costs: The lender “aims to generate approximately USD 300 mn of cost reductions in 2025, with a commitment to an annualised reduction of USD 1.5 bn in our cost base expected by the end of 2026,” it said in 2024 earnings (pdf). “To deliver these reductions, we plan to incur severance and other up-front costs of USD 1.8 bn over 2025 and 2026, which will be classified as notable items. We are focused on opportunities where we have a clear competitive advantage and accretive returns, and we aim to redeploy around USD 1.5 bn of additional costs from non-strategic activities into these areas, over the medium term.”

REMEMBER- HSBC’s restructuring drive began when Georges Elhedery took over as CEO in September. One of his first major moves as CEO was to reorganize HSBC’s global structure, grouping the lender’s Middle East, North Africa, and Turkey (MENAT) operations with Asia-Pacific operations under a newly formed Eastern Markets division. At the same time, Elhedery merged HSBC’s commercial banking business with its global banking and markets team, creating a new wholesale banking unit to streamline operations. The bank has also been doubling down on wealth and premier banking, particularly in the Middle East and Asia.

The lender reported a “strong 2024 performance," with its income after tax coming at USD 25 bn, up USD 400 mn y-o-y and revenues stable at USD 65.9 bn. As for its financials for 4Q 2024 — the bank reported a net income of USD 600 mn, up USD 400 mn from the same period in 2023, reflecting the one-off USD 3 bn impairment charge related to its stake in Bank of Communications last year, according to its website. Revenues were down 11% y-o-y to USD 11.6 bn, primarily due to foreign currency losses from the sale of HSBC’s Argentina business.

Despite strong earnings, the overhaul has left some investors cautious. HSBC gained 1.38% on the Hong Kong Stock Exchange but fell some 0.21% on the LSE during yesterday’s trading. The restructuring-related expenses the lender is expected to incur are much more than initially anticipated, according to Citigroup analysts.

The big picture: “We are creating a simple, more agile, focused bank built on our core strengths. We continue to take deliberate and decisive steps … I have put in place a smaller, core team of exceptionally talented leaders driven by a growth orientated mindset and a firm focus on dynamically managing our costs and capital,” Elhedery said.

MARKETS THIS MORNING-

Asian markets are in the red in early trading this morning, Japan’s Nikkei is down 1.3%, the Shanghai Composite is down 0.2%, and so are the Hang Seng (-1.7%) and the Kospi (-0.6%).

TASI	12,318	-0.1% (YTD: +2.3%)
MSCI Tadawul 30	1,538	+0.2% (YTD: +1.9%)
NomuC	31,430	+0.2% (YTD: -0.1%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	30,875	+0.9% (YTD: +3.8%)
ADX	9,593	-0.3% (YTD: +1.9%)
DFM	5,389	+0.3% (YTD: +4.5%)
S&P 500	6,144	+0.2% (YTD: +4.5%)
FTSE 100	8,713	-0.6% (YTD: +6.6%)
Euro Stoxx 50	5,461	-1.3% (YTD: +11.5%)
Brent crude	USD 76.08	+0.3%
Natural gas (Nymex)	USD 4.26	+6.8%
Gold	USD 2,936	-0.4%
BTC	USD 96,382	+0.8% (YTD: +3.1%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.1% yesterday on turnover of SAR 6 bn. The index is up 2.3% YTD.

In the green: EIC (+7.1%), Etihad Etisalat (+5.5%) and Zain KSA (+3.7%).

In the red: SAL Logistics (-7.9%), SFICO (-4.6%) and Nice One (-4.5%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.2% yesterday on turnover of SAR 36.9 mn. The index is down 0.1% YTD.

In the green: Alrazi (+7.3%), Lamasat (+6.7%) and Sama Water (+5.3%).

In the red: TMC (-9.0%), Dar Almarkabah (-7.0%) and Almohafaza for Education (-6.2%).

Egypt’s El Sisi to arrive in Riyadh to discuss Arab-led Gaza plan

Egyptian President Abdel Fattah El Sisi is expected to arrive in Riyadh today for more talks with Crown Prince Mohammed bin Salman on the Arab-led plan to rebuild Gaza, Reuters reports citing unnamed Egyptian security sources. El Sisi’s visit — confirmed by Egyptian media — comes ahead of a meeting of Arab leaders that is set to precede the official unveiling of the plan at an upcoming summit in Cairo, scheduled for Tuesday, March 4.

The blueprint — which is primarily based on an Egyptian proposal — is being developed as a counter bid to Trump’s proposal to “clean out” Gaza, which saw swift rebuffs from Saudi Arabia and the rest of the Arab World. The vision looks to establish a national Palestinian committee to govern Gaza without involvement from Hamas. Meanwhile, residents will not be displaced from the Palestinian enclave, while Arab and GCC states will shell out an estimated USD 20 bn over three years to fund the first phase of reconstruction, newswire said citing statements from the Palestinian Authority and two unnamed sources.

The USD 20 bn ticket may be enough to get Trump on board, Emirati academic Abdulkhaleq Abdullah told the newswire. “Trump is transactional,” Abdullah said, adding that many US and Israeli companies could stand to benefit. Israel is standoffish so far, with Israeli FM Gideon Saar saying that Israel will evaluate the plan when it comes out, while stressing that Hamas maintaining a presence in Gaza was a red line.

CALENDAR

EVENTS WITH NO SET DATE

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

FEBRUARY

17-20 February (Monday-Thursday): Restatex, Riyadh International Convention and Exhibition Center.

18-20 February (Tuesday-Thursday): The Capital Markets Forum, KAFD conference centre, and the Four Seasons, Riyadh.

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

19-21 February (Wednesday-Friday): FII Priority Miami, Miami, USA.

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 February (Monday):Public Sector Excellence Forum, Movenpick Hotel & Residence Riyadh.

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 (TBC).

31 March (Monday): Deadline for applying to theReal Estate General Authority’s Regulatory Sandbox Program.

31 March (Monday): Deadline for applying to the World Intellectual Property Organization (WIPO) Global Awards 2025

APRIL

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

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

13-14 April (Sunday-Monday): Human Capability Initiative (HCI) Conference, King Abdulaziz International Conference Center, Riyadh.

13-16 April (Sunday-Wednesday): EdgeX HCI, The Ritz Carlton, Riyadh.

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.

23-25 April (Wednesday-Friday): Construction and Real Estate Development Exhibition, Jazan.

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

MAY

May: The World Intellectual Property Organization (WIPO) Global Awards 2025 announces its results.

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.

19-20 May (Monday-Tuesday): Tech-ecO-System Summit (ToSS), 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.

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

JULY

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

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.

4-13 December (Thursday-Saturday): Red Sea International Film Festval, Jeddah.

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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