IMF revises down its outlook for Saudi’s economy again

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WHAT WE’RE TRACKING TODAY

THIS MORNING: BlackRock to develop mortgage-backed securities market in Saudi

Good morning, wonderful people. It’s shaping up to be a rather busy Wednesday as we race towards the weekend, with plenty of updates both here at home and on the global stage.

BUT FIRST- The government has tapped BlackRock to “develop a market for mortgage-backed securities” in a bid to make housing more affordable, BlackRock CEO Larry Fink said, according to Bloomberg. “Spreads are much wider than if there was a securitization market,” Fink said. “It would be much narrower and the homeowners would benefit, so the cost of home ownership would go down.” The fund manager chief did not provide further details.

SEPARATELY- PIF-backed Lucid’s follow-on public offering raised USD 1.75 bn, coming in above the USD 1.67 bn figure initially expected, Lucid CEO Peter Rawlinson tells Reuters. The figure includes proceeds from PIF’s purchase of an added 374.7 mn shares in the luxury EV maker in a private placement.

Use of proceeds: The transaction gives Lucid cashflow runway “well into 2026,” Rawlinson said. The raised funds will support product development, a new plant in Saudi, and expansion works at the firm’s Arizona facility.

HAPPENING TODAY-

Finance Minister Mohammed Aljadaan is leading the Saudi delegation at the annual IMF / World Bank meeting, underway in Washington, DC, through 26 October, state news agency SPA reports. Aljadaan will chair the International Monetary and Financial Committee (IMFC) session, focusing on global economic dynamics and the IMF’s strategic role in supporting member states.

The delegation includes Saudi Central Bank Governor Ayman Alsayari, Vice Minister of Finance Abdulmuhsen Alkhalaf, Deputy Minister for International Affairs Khalid Bawazier, and Ryadh Alkhareif, who serves as deputy chair of the International Monetary and Financial Committee.

On the agenda: Aljadaan and Alsayari will also participate in the G20 Finance Ministers and Central Bank Governors meeting, chaired by Brazil, where discussions will address global economic headwinds and explore avenues for deeper multilateral cooperation.

WEATHER- Riyadh is looking at a high of 34°C and a low of 22°C today. Over in Jeddah, the temperature will peak at 36°C before dropping to 28°C. Meanwhile, Madinah will see a high of 37°C and a low of 24°C.

PSA-

The Industry and Mineral Resources Ministry is accepting bids for seven new mining exploration licenses across Makkah and Riyadh, covering an area of nearly 1.1k sq km, it said in a post on X. Bidding through the ministry’s Taadeen platform is open to both local and international investors, and is set to run until mid-November. The sites have reserves of key minerals including gold, copper, zinc, and silver.

WATCH THIS SPACE-

#1- Saudi eyes stake in Doha-based BeIN Sports: The Kingdom has reportedly been engaged in intermittent talks to secure a stake in Qatar’s global media group BeIN Sports — the Premier League rights-holder for the Middle East and Africa — since it took over Newcastle in 2021, the Telegraph reports.

#2- Abeer Medical Group is eyeing a Tadawul IPO in the next five years, Argaam quotes Chairman Mohammed Alungal as saying. The Jeddah-based group — which currently operates some 22 clinics, pharmacies and optical stores around the country — is looking to expand to 60 clinics and add five new hospitals to its portfolio, he said.

#3- The Saudi-Portuguese Business Council is pushing for a new direct flight between the two countries, the Federation of Chambers of Commerce post said on X. Discussions are already underway between the General Authority for Civil Aviation (GACA) and Saudia Airlines to kick off the new route.

#3- The Gulf Cooperation Council (GCC) is currently in talks with India over terms of references for a freetrade agreement ahead of initiating formal talks, the GCC secretariat told Aleqtisadiah. The GCC has agreed on terms of reference with Japan and Malaysia.

#4- US-based AI chip startup Kneron is looking to set up a regional office in the Kingdom, Bloomberg reports, citing an investor presentation it saw. The regional office comes as part of a plan for the Taiwanese-US firm to raise USD 300 mn from an upcoming funding round, which would also push the company’s valuation to around USD 1 bn, the business information service reported, citing people familiar with the matter. Kneron also plans to launch a research and development lab here at home.

DATA POINTS-

Consumer spending via point-of-sale transactions in the Kingdom fell 7.5% w-o-w for the week ending 19 October at SAR 11.4 bn, according to the Saudi Central Bank (Sama)’s weekly POS report (pdf). Meanwhile the number of transactions was down 4.9% at 198.2k.

The breakdown: Restaurants and cafes saw the highest spending during the week, despite falling 4.4% w-o-w at SAR 1.77 bn, followed by food and beverages at SAR 1.74 bn, down 4.4%. Meanwhile, Riyadh had the highest value of PoS transactions at SAR 3.99 bn, followed by Jeddah at SAR 1.6 bn.

SPORTS-

Al Hilal triumphs over Al Ain in 9-goal thriller: Al Hilal dispatched the UAE’s AFC Champions League Elite title holders Al Ain on their own turf in a 5-4 victory that featured two hat tricks — one from Al Ain’s Soufiane Rahimi and another from our own Salem Aldawsari, according to Reuters.

ALSO- Neymar made a comeback as a substitute in the 77th minute, following a year on the sidelines due to an ACL tear.

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THE BIG STORY ABROAD-

It’s a mixed bag on the front pages of the foreign press today, with more talk of a potential ceasefire in the region continuing as US Secretary of State Antony Blinken touches down in Jerusalem for a meeting with Prime Minister Benjamin Netanyahu, more US elections news, and a smattering of business updates.

Blinken and Netanyahu agreed that the killing of Hamas Leader Yahya Sinwar over the weekend opens up possibilities for the end of the war in Gaza, though the meeting seemed to yield no clear plans for what’s to come, Bloomberg reports.

Israel confirmed for the first time that it had killed Hezbollah’s suspected successor, Hashem Safieddine, in airstrikes on Lebanon earlier this month, along with another Hezbollah commander. (Financial Times | NY Times | The Guardian)

OVER IN THE US- It’s not a great time for The Donald, who just two weeks ahead of elections is still behind in polls that put rival Kamala Harris marginally in the lead. A Republican appeal of a decision blocking a new rule that would have required poll workers to hand-count ballots was also blocked by a top Georgia court. Meanwhile, Trump is accusing the UK Labor Party of “foreign interference” and aid of Harris’ campaign. (BBC | FT | The Guardian)

IN BUSINESS NEWS- A few headlines are getting attention:

Former Abercrombie & Fitch CEO Mike Jeffries has been charged with running a trafficking ring during his time as CEO. (Reuters | BBC | CNN)
Starbucks has scrapped its guidance as it reported a decline in sales and revenues ahead of schedule. (FT)
McDonald’s shares fell by 10% after the fast food franchise was linked to a fatal E. coli outbreak in the US that killed at least one person and left 10 others in hospital. (FT)

CIRCLE YOUR CALENDAR-

The two-day Multilateral Industrial Policy Forum will kick off in Riyadh tomorrow. The forum will address global industrial challenges, focusing on topics like industrial policy, clean energy, and advanced manufacturing tech. The forum is organized by The Industry and Mineral Resources Ministry in partnership with UNIDO. The Kingdom will also host the UNIDO General Conference in 2025.

The Human Resources and Manpower Expo kicks off on Sunday, 27 October at the Riyadh International Exhibition and Convention Center, expecting over 1k exhibitors and 22k visitors.

The five-day Jeddah International Motor Show revs up on Tuesday, 29 October, running through Saturday, 2 November. The event will showcase motorcycle and drift shows, sim and kart racing, a lineup of custom-tuned cars, and more.

WWE Raw is coming to Riyadh for the first time ever on 2-3 November, kicking off on the back of the WWE Crown Jewel event the day prior, Turki Alalshikh said in a post on X. You can book your Raw tickets here, and your Crown Jewel tickets here.

IMF trims growth outlook for Saudi economy

The International Monetary Fund (IMF) revised downward its forecast for Saudi Arabia’s economic growth to 1.5% this year from its July estimate of 1.7%, according to its latest World Economic Outlook report (pdf). The Washington-based lender said the downgrade came on the back of extended oil production cuts and disruptions from the ongoing conflict in Sudan. This is the IMF’s fourth downward revision of its forecast for Saudi’s economic growth this year.

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LOOKING AHEAD- A bounceback is in the cards: The IMF slightly lowered its projections for Saudi GDP growth in 2025 to 4.6% — a slim 0.1 percentage point below its July forecast.

This is in line with gov’t projections for 2025, but not 2024: The Finance Ministry sees Saudi’s economy growing at a 4.6% clip next year, according to its pre-budget statement for FY 2025 which was published earlier this month. Meanwhile, real GDP is forecasted to grow at a 0.8% rate this year, on the back of an uptick in non-oil activities.

REMEMBER- Saudi’s GDP shrank 0.4% in 2Q 2024, marking the fourth consecutive quarter of contraction. Figures for 3Q are not yet available.

Balancing the budget: The IMF projects oil prices will rise by 0.9% to about USD 81 per barrel in 2024. This is still short of the USD 100 / bbl target the Kingdom needs to narrow its budget deficit, as the economy remains heavily reliant on oil revenues despite efforts to diversify.

Zooming out: Despite the short-term slowdown, the IMF is optimistic about the region's broader recovery, with growth for the Middle East and Central Asia expected to rise from 2.4% in 2024, to 3.9% in 2025, as oil production cuts and shipping disruptions fade.

IN CONTEXT- Opec+ is planning to phase out supply cuts by December, putting it on course for a 180k barrel per day (bbl / d) hike by the end of the year, it said earlier. The lack of quota compliance by certain member states could even push the Kingdom and other members to boost production at a quicker rate.

Saudi Arabia falls behind the UAE in terms of IPO proceeds in 3Q 2024

Saudi IPO proceeds trail UAE: Saudi Arabia raised USD 512 mn from six IPOs in the 3Q, falling behind the UAE, which brought in USD 1.1 bn from a single offering, Zawya reports, citing data from Kuwait Financial Center (Markaz). No other GCC markets saw any IPOs during the quarter.

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By the numbers: The seven IPOs in the UAE and Saudi generated a combined USD 1.7 bn in proceeds, up 6% y-o-y. Meanwhile, GCC issuers saw a dip in fundraising, securing USD 5.2 bn through 30 offerings in 9M 2024, compared to USD 6.8 bn raised from 29 offerings during the same period in 2023.

Tadawul vs. Nomu: Of Saudi’s total IPO proceeds, USD 459 mn came from Tadawul’s main market, while Nomu contributed USD 53 mn. Together, these accounted for 31% of all IPO proceeds in the GCC in 3Q.

Key listings: Arabian Mills and Almajed Oud each sold a 30% stake in IPOs on Tadawul’s main market in October. Meanwhile, Tharwah HR, ASG Plastic, Al Ashghal Almoysra, and First Avenue debuted on Nomu during the quarter.

Real estate firm Samla and Alm Al Room swaps land in Egypt

Privately-owned Saudi real estate firm Samla and Alm El Room Urban Development Co. will swap nearly 950 acres of land in Alm El Room in Matrouh on Egypt’s north coast for two plots of land in and near New Cairo after inking an agreement with the Housing Ministry, according to a ministry statement.

Why does it matter? It’s the latest sign that the Egyptian government is serious about doing business with Saudi companies. The contract signing comes after Crown Prince and Prime Minister Mohammed bin Salman’s surprise visit to Cairo last week to meet with President Abdel Fattah El Sisi. Among other things, the two signed an agreement on the promotion and protection of investment.

What is Samla and Alm El Room getting? The company will take 97 acres near Madinaty in the Egyptian capital’s east and another 380 acres near its Katameya-Ain Sokhna road. Walid Abbas, assistant housing minister and supervisor of planning and projects at Egypt’s New Urban Communities Authority, was on hand for the signing, framing it in the context of Egypt’s bid to resolve outstanding disputes and roll out the red carpet for investors.

ADVISORS- Our friends at ALC-Alieldean Weshahi & Partners ALC were advisors to Samla and Alm El Room on the transaction.

Day two of the Global Health Exhibition

The Saudi Red Crescent Authority and King Abdulaziz University (KAU) will work towards increasing scientific research, education, and training for emergency medicine, after signing an MoU at the Global Health Exhibition in Riyadh, according to state news agency SPA. KAU will open its labs and facilities to the Saudi Red Crescent, assist with evaluating Red Crescent job applicants, and allow Red Crescent staff to attend university forums.

AND- Special Talent Residency was granted to 2.6k healthcare professionals from 56 countries, representing 152 specializations, Saudi Health Minister Fahad Al Jalajel said at the event, the Saudi Gazette reports. The expat professionals will contribute to the development of the local healthcare sector by conveying knowledge and expertise, Al Jalajel said. Premium residency holders can avail of the right to live in the Kingdom with their families, own property, and travel to and from Saudi without a visa, among other benefits.

ICYMI: The first day of the Exhibition saw SAR 50 bn worth or projects and agreements announced, including localized insulin and pharma production, hospital expansions, and acquisitions.

IN OTHER HEALTH NEWS- The World Health Organization (WHO) and Saudi Arabia will expand the Hajj health card initiative to support 3 mn yearly pilgrims, according to a press release. Based on the WHO’s Global Digital Health Certification Network (GDHCN), the card provides critical health data — such as medications, allergies, and immunizations — granting authorized health workers up-to-date patient summaries that enable personalized care. GDHCN also leverages public key infrastructure encryption to allow carrier verification while protecting patient privacy. The collaboration follows a successful pilot program that saw 250k pilgrims from Indonesia, Malaysia, and Oman issued cards during this year’s Hajj season.

Riyadh’s King Khalid International Airport leads GACA rankings

King Khaled International Airport in Riyadh held its lead in September as the top-performing international airport in Saudi Arabia, serving over 15 mn passengers annually, according to aviation regulator Gaca's monthly report. This marks the airport’s second consecutive month at the top of the ranking, surpassing Jeddah’s King Abdulaziz International Airport.

The methodology: The aviation watchdog evaluates 11 metrics relating to passenger experience, including waiting times for travel procedures, time spent collecting baggage and at passport and customs controls, access for travelers with limited mobility, as well as other internationally recognized criteria.

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The breakdown:

In the 5-15 mn passenger category, King Fahd International Airport in Dammam Prince ranked first, followed by Mohammed bin Abdulaziz International Airport in Madinah;
King Abdullah bin Abdulaziz International Airport in Jizan topped the 2-5 mn passenger group, followed by Abha International Airport in Asir;
Al-Ahsa International Airport topped the category for airports with fewer than 2 mn passengers, outperforming its peers in terms of waiting times for departures and arrivals;
Qurayyat Airport led the domestic airports category.

Fintech startup Mala closes VentureSouq-led USD 7 mn pre-seed funding round

Homegrown fintech B2B startup Mala Inc. raised USD 7 mn in a pre-seed funding round led by VentureSouq with participation from Shorooq Partners, M Capital, BECO Capital, Access Bridge Ventures, Waad Investment, Palm Ventures, and Global Ventures, according to a press release. The startup has a pre-launch pipeline of over USD 100 mn in transaction value and will apply the raised funds towards prepping its official Saudi launch that is slated to take place some time this quarter.

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What we don’t know: No further details were provided regarding the breakdown of each investor’s contribution or on whether the investments were debt or equity based.

About Mala: Founded in 2024 by Saudi entrepreneur and VentureSouq veteran Musaab Hakami (LinkedIn), the fintech startup offers Procure-Now, Pay-Later (PNPL) solutions catering to regional SMEs. Mala allows companies to procure supplies on flexible credit terms while ensuring that suppliers are paid upfront, thereby bridging the credit cap between SMEs and their suppliers. The platform leverages proprietary technology and data on financial performance, legal and market standing, and other metrics to evaluate credit risks and offer buyers payment options that are specially suited to their needs.

IN OTHER STARTUP NEWS-

Homegrown fintech Hala has been enrolled in the Saudi Unicorns Program, allowing them access to new markets, top talent and global networking potential, it said in a post on LinkedIn. The platform has so far facilitated over SAR 26 bn in transactions for more than 110k clients across the Kingdom. Saudi Unicorns is co-led by the Communications and Information Technology Ministry and the Misk Foundation.

REMEMBER- The startup secured an undisclosed amount funding from US-based private equity firm TPG last May, following a USD 6.5 mn series A round led by local Impact46 in 2021. Hala also obtained its crowdlending license from the Saudi Central Bank in May.

Bank earnings take center stage: Saudi National Bank, Arab National Bank, Banque Saudi Fransi

SAUDI NATIONAL BANK-

Saudi National Bank’s (SNB) net income was up 7.1% y-o-y to SAR 5.4 bn in 3Q 2024 on the back of higher operating income, it said in a disclosure to Tadawul. The lender’s total income from financing grew 13.7% y-o-y to SAR 11.6 bn, while total income from investment jumped 16.6% y-o-y to SAR 3.4 bn over the same period.

On a 9M basis: SNB’s bottomline grew 3.9% y-o-y to SAR 15.6 bn during the first nine months of the year. Its total income from financing was up 19.8% y-o-y to SAR 33.4 bn, while total income from investment was up 15.2% to SAR 9.6 bn.

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ARAB NATIONAL BANK-

Arab National Bank (ANB) reported 15.5% y-o-y growth in its 3Q 2024 net income to SAR 1.2 bn on the back of higher income from interest and lower loan loss provisions, it said in a regulatory filing to Tadawul. The lender’s total income from financing clocked in at SAR 3.1 bn, up 16.5% y-o-y, while its total income from investments grew 9% y-o-y to SAR 657 mn.

On a 9M basis: ANB’s bottomline reported a 18.5% increase to SAR 3.7 bn in the first nine months of the year, compared to the same period last year. Total income from financing was up 19.2% y-o-y to SAR 8.9 bn, while its total income from investment saw a 9.9% uptick to SAR 1.9 bn.

BANQUE SAUDI FRANSI-

Banque Saudi Fransi (BSF) saw its net income fall 7.8% y-o-y to SAR 1.1 bn in 3Q 2024, on the back of higher total operating expenses, it said in a disclosure to Tadawul. Meanwhile, the lender’s total income from financing hit SAR 3.6 bn, up 19.8% y-o-y, while its total income from investment came in at SAR 581 mn, up 29% compared to the same period last year.

On a 9M basis: BSF’s bottomline ticked up slightly by 0.9% y-o-y to SAR 3.4 bn in the first nine months of the year. Its total income from financing was up 22.7% to SAR 10 bn, while its total income from investment hit SAR 1.7 bn, up 48% compared to 9M 2023.

Cabinet approves eight decisions in latest meeting, including MoUs with China + Hong Kong

Cabinet signs off on MoUs + int’l partnerships: The Council of Ministers signed off on eight agreements in its weekly meeting yesterday, chaired by Crown Prince Mohammed bin Salman. Cabinet gave its okay to a draft MoU on political consultations with Canada, a draft MoU on direct investment promotion with Estonia, and an agreement on anti-corruption collaboration with Hong Kong, state news agency SPA reported yesterday.

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Other approvals include:

The Saudi Authority for Intellectual Property and WIPO will establish a trust fund for development projects on intellectual property;
The Saudi Institute for Internal Auditors will ink an MoU with the Australian Institute of Internal Auditors for cooperation in internal auditing, governance, and compliance;
The Education and Training Evaluation Commission will collaborate with Kuwait University on measurement, evaluation, and accreditation of initiatives;
The establishment of a medical sciences college in Jeddah.

Waja appoints Ammar Al Nahdi as its new CEO

Tadawul-listed Waja tapped Ammar Salem Al Nahdi (Linkedin) as its new CEO, according to a press release. Al Nahdi was previously a technical consultant at Engineering Domain Co.

Trump on his views of Middle East policy + Saudi relations

US presidential candidate Donald Trump described Crown Prince Mohammed bin Salman as a “visionary” during an interview on his proposed Middle East policy with Al Arabiya ’s Washington bureau chief, Nadia Bilbassy-Charters. Trump also touched on his son-in-law Jared Kushner’s private equity firm Affinity Partners and its investment ties with PIF, as well as the Trump Organization’s real estate ambitions in Saudi and the GCC. The Huffington Post picked up the interview.

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The extent of Saudi’s involvement in the 2021 takeover talks for English Premier League club Newcastle is the focus of a piece from the Telegraph that relies primarily on alleged leaked WhatsApp messages.

Meanwhile, CNN is out with a piece on the Kingdom’s growing engagement with Iran, amid US failure to quell growing tensions in the region. The Crown Prince met with Iran Foreign Minister Abbas Araghch in Riyadh two weeks ago, with Saudi officials sitting down with their Iranian counterparts on at least two other occasions during the month. The meetings signal a shift in strategy to contain threats from Iran, CNN says.

SPPC shortlists three bidders for SAR 8 bn solar PV projects

RENEWABLES-

The Saudi Power Procurement Company (SPPC) shortlisted three bidders for four solar PV projects under the fifth round of the National Renewable Energy Program (NREP), according to a press release. The projects are expected to reel in SAR 8 bn in investments. SPPC received six bids for each project in August and narrowed down the selection to Abu Dhabi Future Energy, SPIC Huanghe Hydropower Development, and Al Jomaih Energy and Water. If selected, the awarded consortiums will sign 25-year Power Purchase Agreements (PPAs) under a build-own-operate model.

The details: The round will add a combined capacity of 3.7k MW to the Kingdom’s renewable energy portfolio. The four solar PV projects include the Al-Sadawi 2k MW, Al-Masa’a 1k MW, Al-Henakiyah2 400 MW, and Rabigh2 300 MW plants.

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INFRASTRUCTURE-

Binyah seals SAR 660 mn contract for a water treatment project in Riyadh: Saudi Real Estate Infrastructure Company (Binyah), a subsidiary of Saudi Real Estate Company (Al Akaria), signed a SAR 660.4 mn, 20-month contract with the Royal Commission for Riyadh City for a water treatment project under the Green Riyadh forestation initiative, the parent company said in a disclosure to Tadawul. The Royal Commission awarded the project to Binyah in August.

DIGITIZATION-

Tadawul-listed Atheeb Telecom secured two projects from Detecon Al Saudia worth a combined SAR 127.7 mn, to provide dedicated internet connection circuit services, it said in a disclosure to Tadawul. The first SAR 104.9 mn project will run for 76 months, while the second, valued at SAR 22.8 mn, will run for 36 months.

CLIMATE-

Local budget carrier flynas partnered with PIF-backed Voluntary Carbon Market Company(VCM) to collaborate on carbon offsetting and environmental conservation, it said in a post on X. Under the partnership, flynas will have access to the carbon credit trading platform, scheduled to launch in November 2024, and it will launch a voluntary carbon offset program that will see participation from the airline’s passengers, Waleed Ahmed, director of Corporate Communications at flynas, was quoted as saying by Economy Middle East.

HSBC’s Mideast operations will report in to Asia as bank launches ambitious restructuring

HSBC’s Middle East operations will be paired up with Asia Pacific as Europe’s biggest lender kicks off its first major restructuring in a more than a decade under new CEO Georges Elhedery, who took the helm in September. The bank announced the restructuring in a disclosure to the London Stock Exchange (pdf) early yesterday morning, saying all the changes go into effect 1 January 2025.

What’s happening in our region? What HSBC presently calls the MENAT (Middle East, North Africa, Turkey) region will now be part of an “Eastern Markets” unit along with the former Asia-Pacific region, reporting in to David Liao (and HSBC veteran and member of Hong Kong’s elite) and Surendra Rosha. HSBC Middle East CEO Stephen Moss will leave the bank, as will Europe chief Colin Bell.

Other changes at HSBC: It will create a new “wholesale” or corporate and investment banking group by merging its commercial banking business with its global banking and markets team and its other Western markets. It’s also doubling down on international wealth and premier banking, particularly in the Middle East and Asia.

The result: A streamlined structured and fewer people sitting around the exco table as HSBC looks to grow in the West while capturing the globally critical corridor between Asia and the Middle East. From 1 January, HSBC will have four businesses: Hong Kong, the UK, corporate and institutional banking, and international wealth and premier banking. It will also have its first woman CFO (Elhedery’s last post before becoming CEO) and will downsize and rebrand its top executive committee, which contracts to 12 members from 18 and will now be called the “group ’’operating committee.”

Why does it matter here? HSBC is an influential player in MENA with a substantial footprint. It banks large regional corporates, multinationals, and the affluent through commercial banking operations across Egypt and the UAE and through SAB in Saudi Arabia. It’s also a sought-after advisor and arranger of capital and debt raisings across the region:

It recently quarterbacked Arabian Mills’ Tadawul IPO and is working now on the IPOs of LuLu Retail (ADX) and UIHC (Tadawul);
It provides or arranges debt and equity for regional banks (most recently joining a sustainability-linked facility for Al Rajhi and an AT1 capital raise for Dubai Islamic Bank);
It is advising on everything from privatization sales in Egypt to KAFD’s ambitions to raise USD 750 mn to fuel its growth as the latter mounts a challenge to DIFC.

Why is it happening? Elhedery (bio) is a regional veteran who was previously based in Dubai as regional head of global markets and later as CEO for the MENAT region. He took over in September from CEO Noel Quinn and is now reshaping an institution that some argue has become too organizationally complex. Quinn and others on his team were against the move to a wholesale banking model (with corporate and investment banking under one division), which has been debated inside HSBC off-and-on for some time.

COVERAGE- The news leads the front pages of the financial press this morning: Financial Times | Reuters | Bloomberg | New York Times DealBook.

MARKETS THIS MORNING-

The Nikkei is flat this morning despite Tokyo Metro shares gaining 45% in their market debut — it’s Japan’s biggest IPO in six years, raising the equivalent of USD 2.3 bn. The Hang Seng, Shanghai Composite, and ASX 200 were up slightly as traders digested signals that Wall Street’s rally may have stalled.

The opening bell: Equities futures suggest you can expect major in Europe as well as on Wall Street and Bay Street to come under moderate selling pressure when Western markets open later this morning.

TASI	11,957	-0.4% (YTD: -0.1%)
MSCI Tadawul 30	1,501	-0.4% (YTD: -3.2%)
NomuC	26,405	-1.2% (YTD: +7.7%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.5% repo	5.0% reverse repo
EGX30	30,427	-0.1% (YTD: +22.2%)
ADX	9,246	-0.3% (YTD: -3.5%)
DFM	4,467	-0.2% (YTD: +10.0%)
S&P 500	5,854	-0.2% (YTD: +22.7%)
FTSE 100	8,307	-0.1% (YTD: +7.4%)
Euro Stoxx 50	4,939	0.0% (YTD: +9.2%)
Brent crude	USD 75.63	+1.8%
Natural gas (Nymex)	USD 2.30	-0.5%
Gold	USD 2,763	+0.9%
BTC	USD 67,474	-0.4% (YTD: +60.0%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.4% yesterday on turnover of SAR 5.5 bn. The index is down 0.1% YTD.

In the green: Chemanol (+7.8%), Al Baha (+7.4%) and Sisco Holding (+6.1%).

In the red: DWF (-4.9%), Al Majed Oud (-3.3%) and Al Arabia (-3.2%).

THE CLOSING BELL: NOMU-

The NomuC fell 1.2% yesterday on turnover of SAR 64 mn. The index is up 7.7% YTD.

In the green: Naas Petrol (+7.7%), Quara (+5.9%) and Al Mohafaza for Education (+5.1%).

In the red: Sama Water (-11.7%), Molan (-6.5%) and Aqaseem (-6.1%)

Crown Prince Mohammed bin Salman meets Jordan’s King Abdullah in Riyadh

Crown Prince and Prime Minister Mohammed bin Salman hosted Jordan’s King Abdullah in Riyadh yesterday, engaging in high-level discussions on strengthening bilateral relations, addressing regional developments, and advancing efforts toward ceasefires in Palestine and Lebanon, state news agency SPA reported. The two leaders reaffirmed their commitment to providing sustained humanitarian aid to both Palestine and Lebanon.

CALENDAR

OCTOBER

21-23 October (Monday-Wednesday): Global Health Exhibition 2024, Riyadh.

22-24 October (Tuesday-Thursday): Seamless Saudi Arabia 2024, Riyadh Front Center, Riyadh.

23-24 October (Wednesday-Thursday): UNIDO’s Multilateral Industrial Policy Forum (MIPF), Riyadh.

26 October (Saturday): Donor Conference to Support Refugees in Sahel and Lake Chad Regions, TBD.

27-28 (Sunday-Monday): The Global PropTech Summit, Movenpick Hotels & Resorts, Riyadh.

27-30 (Sunday-Wednesday): Human Resources and Manpower Expo, Riyadh International Exhibition and Convention Center, Riyadh.

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

29 October - 2 November (Tuesday-Saturday): Jeddah International Motor Show, Superdome, Jeddah.

30 October - 3 November (Wednesday-Sunday): Hia Hub 4.0, Riyadh.

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

NOVEMBER

2 November (Saturday): WWE Crown Jewel, Riyadh.

3 November (Sunday): WWE Raw, Riyadh.

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

3-23 November (Sunday-Sunday): NEOM Beach Games, Neom.

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

5-9 November (Tuesday-Saturday): Biban24 Forum, The Front Exhibition and Conference Center, Riyadh.

11-14 November (Monday-Thursday): Cityscape Global, Riyadh Exhibition and Convention Center.

11-22 November (Monday-Friday): The Diplomatic Conference to Conclude and Adopt a Design Law Treaty, Riyadh.

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

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh.

11-12 November (Monday-Tuesday): Expenditure Efficiency Forum, The Hilton, Riyadh.

11-13 November (Monday-Wednesday): Saudi Intermobility Expo 2024, Jeddah.

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

16 November (Saturday): Latino Night at Riyadh Season, Riyadh.

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

19-20 November (Tuesday-Wednesday): The Women's Economic Forum 2024, Dammam.

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam.

23 November (Saturday): Red Sea 600, Jeddah Yacht Club and Marina.

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

26-28 November (Tuesday-Thursday): Future Power Expo, Riyadh.

28 November-14 December (Thursday-Saturday): Noor Riyadh, Riyadh.

29 November-2 December 2024 (Sunday-Wednesday): World Sailing Youth Match Racing World Championship, Jeddah Yacht Club and Marina.

DECEMBER

1 December (Sunday): Opec+ to meet.

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh.

3-5 December (Tuesday-Thursday): The International Business Exchange – IBEX EVENTS, Riyadh.

4-5 December (Wednesday-Thursday): Zakat, Tax and Customs Conference, Riyadh.

11 December (Wednesday): Billboard Arabia Music Awards (BBAMAs), King Abdullah Financial District, Riyadh.

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

5-8 December (Thursday-Sunday): World Sailing Women’s Match Racing World Championship, Jeddah Yacht Club and Marina.

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

15-19 December (Sunday-Thursday): Internet Governance Forum, King Abdulaziz International Conference Center, Riyadh.

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

2025

JANUARY 2025

14-16 January (Tuesday-Thursday): Future Minerals Forum, King Abdulaziz International Conference Center, Riyadh.

27-29 January (Monday-Wednesday): Real Estate Future Forum, Four Seasons Hotel, Riyadh.

28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Riyadh.

29-30 January (Wednesday-Thursday): Global Labor Market Conference, Riyadh.

FEBRUARY 2025

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

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

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

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

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

22 February (Saturday): Founding Day.

MARCH 2025

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

MAY 2025

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

JUNE 2025

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

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

SEPTEMBER 2025

23 September (Tuesday): Saudi National Day.

2026

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

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

2027

The World Water Forum takes place in Riyadh.

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