IMF sees Saudi economy growing 2.7% this year

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Oil markets are digesting Aramco’s surprise announcement that it’s pulling back from 2026 capacity target

Good morning, friends, and happy almost-Thursday. We hope the week is treating you well — and ask that you kindly fasten your seatbelts and strap in for a busy issue this morning.

THE BIG STORY AT HOME on this fine winter morning sees oil analysts the world over digesting news that Aramco will stop investing in expanded production capacity. State news agency SPA reported yesterday that the global oil giant is putting on hold its expansion plan and will target a “maximum sustained production capacity” of 12 mn barrels of oil per day. That’s about 1 mn bpd below the target of 13 mn bpd by 2027 that it had set back in 2020.

What’s a “maximum sustained production capacity,” anyway? It’s the ceiling to which Aramco can comfortably produce without further investment in exploration or production infrastructure.

Why does this matter? Industry analysts essentially view Aramco as the “central banker” of the oil market. Aramco currently has about 3.2 mn barrels of “spare capacity” today — 3.2 mn barrels it could quickly bring online if demand spikes thanks to war, cold weather in the northern hemisphere, or other factors. That’s about 63% of Opec’s total spare capacity, with the rest held by the UAE, Iraq, and Kuwait.

What’s the message to markets? Pundits are still figuring that out. Some believe it means Aramco sees no expansion of demand for oil in the medium term. And while a handful speculate that it means Aramco could save maybe USD 5 bn in capex spending this year, others believe it’s unlikely to curb spending. Instead, they see Aramco continuing to ramp up its investments in natural gas and renewable energy.

The story is driving the conversation on the Kingdom in the global press this morning: Bloomberg | Financial Times | Wall Street Journal.

Need to go deeper? The best coverage out there this morning is from Reuters, which has a long take with good analysis and a solid factbox.

MEANWHILE- Results season has started in earnest. We have 2023 figures for you today from Jarir and Bupa Arabia. Expect plenty more in the days ahead.

WATCH THIS SPACE- The Sports Ministry will issue “in a week or two” tenders for a new stadium and five upgrades across the Kingdom as part of a SAR 10.1 bn capital projects program, Meed reported yesterday, citing sources close to the matter. “The prequalification process has been completed and the tender for the stadiums is expected to be issued in a week or two,” they said. The initiative hopes to refurbish sports facilities in time for the Kingdom’s hosting of the 2027 AFC Asian Cup and the 2034 FIFA World Cup later after Australia said it would not be presenting a bid to host the tournament.

We knew this was in the works: The ministry has been accepting prequalification documents for the new construction contracts since July. The program’s main contractor is yet to be announced.

DATA POINT- Youts make up 44% of the total populationand account for 78% of the workforce, Argaam reported, citing statements by Human Resources and Social Development Minister Ahmed Al Rajhi.

SPORTS-

The Green Falcons lost 2-4 to South Korea in a penalty shootout yesterday in an Asian Cup Round of 16 knockout match, bidding farewell to the tournament. The game went into penalties after reaching 1-1 in extra time.

You win some, you lose some: “In football you can lose, you can win,” coach Roberto Mancini said. “We were playing against a very strong team and we played very well. We lost in a penalty shootout. Penalties are a lottery,” he added. It’s the first time the national team has lost to South Korea in four matches.

WEATHER- Expect some scattered clouds in Riyadh and Dammam today and a strong breeze in Jeddah.

Riyadh: 23°C daytime / 11°C overnight
Jeddah: 26°C daytime / 18°C overnight
Dammam: 24°C daytime / 17°C overnight

THE BIG STORY ABROAD-

It’s nearly as busy a morning for global business news as it is here at home. Among the headlines you’ll want to know about today:

Elon is everywhere after a judge struck down his “unfathomable” USD 55.8 bn Tesla pay package — and as he is said to be closing in on USD 6 bn in fresh cash for his AI startup, possibly including capital raised from Arab investors.
Tech reviewers are trying to get their heads around Apple’s Vision Pro, with full reviews hitting the interwebs yesterday. The three most worth watching / reading: Nilay Patel on The Verge, Joanna Stern at the Wall Street Journal, and Marquess Brownlee over at MKBHD.
Earnings watch: Google parent Alphabet’s shares fell after missing estimates and Microsoft is under scrutiny despite beating expectations.

CIRCLE YOUR CALENDAR-

The Kingdom has submitted a bid to host the World Water Forum in Riyadh in 2027. The event is the largest international gathering in the industry.

Filipino exporters are coming to town next month: A business-matching tour will kick off on Saturday, 10 February, where a group of Filipino exporters of food, beverage and personal care products will tour Riyadh, Jeddah, and Dammam to market their businesses, Arab News reports.

The PIF Private Sector Forum takes place in Riyadh on Tuesday, 6 February to Wednesday, 7 February, the PIF said on Linkedin. The event will bring together the fund, portfolio companies, private sector and others to help advance economic growth.

The Hail Toyota International Rally which will kick off on 8 February and wrap up on 10 February. You have until Saturday, 27 January to register.

The Saudi Capital Market Forum will open on Monday, 19 February and wrap up on Tuesday. Held under the theme “Powering Growth,” the event will bring together members of the global financial landscape for discussions on the capital markets and investment strategies.

Riyadh will host the International Conference on Sand and Dust Storms in the ArabianPeninsulafrom Monday, 4 March to Wednesday, 6 March. The conference will address regional challenges caused by sand and dust storms and discuss monitoring systems, mitigation strategies, economic and infrastructural impacts, and more.

Tickets are on sale for the 2024 Saudi Arabian Grand Prix, scheduled for Jeddah from 7-9 March.

Riyadh will host a World Economic Forum special meeting on 28-29 April.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

IMF sees economy growing by 2.7% this year, a downward revision from its previous forecast of 4%

Slower economic growth this year: The International Monetary Fund (IMF) cut its 2024 forecast for the Kingdom’s GDP growth on the back of lower oil production, pointing to the combined effects of lower oil prices and production cuts, it said in its latest World Economic Outlook Update (pdf) yesterday. It expects the economy to grow by 2.7% this year, down from October’s projections of 4.0%.

The IMF also slashed its estimate of how much the economy grew last year, penciling in a contraction of 1.1% after originally forecasting growth of 0.8% in October. This markets the sharpest contractions of the past two decades, according to Bloomberg. That puts the treasury on track to run fiscal deficits through at least 2026, the business information service writes, as Crown Prince and Prime Minister Mohammed bin Salman pushes ahead with aggressive investment plans.

Not in line with what the government is thinking: The Finance Ministry is targeting GDP growth of 4.4% in its budget for the next fiscal year, Finance Minister Mohamed Al Jadaan said last month.

THE KEY- Despite the downward revision, the IMF expects non-oil growth to “remain robust,”according to the report. The forecasts for non-oil growth match those of other international monitors, including the World Bank which sees the non-oil economy growing at a 4.3% y-o-y clip in 2023 due to “looser fiscal policy, robust private consumption, and public investment drive.” The Finance Ministry is penciling in more optimistic growth of 5.9% for non-oil activity in 2023.

Sound smart: While total GDP dipped in 2023 on the back of lower oil prices, the Kingdom’s non-oil economy in general (and the private sector, in particular) are growing rapidly.

Better years to come: The IMF expects the economy to pick up pace in 2025, raising its forecasts for GDP growth to 5.5% from 4.2% in its October forecast.

What the pundits are saying: “Saudi Arabia’s post-pandemic boom is facing challenges. Oil prices haven’t been responsive to multiple production cuts from OPEC+. A war in Gaza and US elections pose political risks. And the latest data aren’t promising: non-oil growth is faltering, the unemployment rate is ticking up, and the budget is in deficit,” emerging markets economist Ziad Daoud said.

THE REGIONAL OUTLOOK-

IMF trims MENA outlook: The IMF lowered its MENA growth outlook for the year by 0.5 percentage points, now expecting regional growth to pick up to 2.9% in 2024 from 2.0% the year before. The Fund pointed to temporary oil cuts in Saudi Arabia as the main driver behind the slashed outlook.

THE GLOBAL OUTLOOK-

On a global level, there’s slightly more optimism: The Fund revised upwards its 2024 global growth outlook by 0.2 percentage points to 3.1%, thanks to the strength of the US economy and certain emerging markets, alongside fiscal support in China.

What about next year? The IMF left its 2025 global growth forecast unchanged at 3.2%, well below the global growth average between 2000 and 2019 of 3.8%. The Fund sees high interest rates and fiscal support withdrawal weighing on economic growth.

Soft landing in sight? Global headline inflation is thought to fall to 5.8% in 2024 and 4.4% in 2025, as “the global economy begins the final descent toward a soft landing,” IMF chief economist Pierre-Olivier Gourinchas said in a blogpost. “On the downside, new commodity price spikes from geopolitical shocks –– including continued attacks in the Red Sea –– and supply disruptions or more persistent underlying inflation could prolong tight monetary conditions,” he cautioned.

Drugmaker Jamjoom Pharma wants localize production of a type 2 diabetes drug in Saudi Arabia

Jamjoom Pharma will work to localize the production of a diabetes drug under an agreement signed with the Local Content and Government Procurement Authority (LCPGA), the company said in a Tadawul filing yesterday.

In context: Last week, Crown Prince and Prime Minister Mohammed bin Salman launched the National Biotechnology Strategy last week in a bid to create a domestic biomanufacturing industry that could see the Kingdom become self-sufficient in the production of biologics. The plan focuses on the localization of vaccines, bio-manufacturing, genomics and plant optimization. This is set to contribute SAR 130 bn to non-oil GDP by 2040.

Local manufacturing + tech transfer: The three-year contract will run until January 2026 and would see the drugmaker locally produce sitagliptin phosphate, an oral therapy, in addition to sharing the technology behind the production with LCPGA.

What we don’t know: The timeline and cost of the investment will be worked out and disclosed at a later stage. Regulatory approvals from the Saudi Food and Drug Agency (SFDA) are also in the pipeline.

Jamjoom is in the midst of a push to expand its manufacturing base: It got the go-ahead last Sunday from SFDA to register its new manufacturing facility in Jeddah. Once fully operational, the plant is expected to locally produce 25 mn units of eye care products annually. Construction work is expected to cost SAR 200 mn.

LCPGA inked three more agreements: The authority inked three other agreements on Sunday — with Aja Pharma, Saudi Arabian Japanese (Saja) and MSD — to locally develop some of their pharma drugs. The move is expected to generate a total of SAR 250 mn over the next ten years.

ICYMI- Localizing insulin production: Sudair Pharma and Sanofi have established a partnership in October 2023 to establish a factory to produce and package insulin. The seven-year agreement will see the global pharma player transfer the required know-how to Sudair. Local production today covers just 20% of the domestic market needs for insulin, Argaam reports.

Cyprus-based Kefi announces discovery of high-grade gold deposits at Jibal Qutman Gold project

Kefi strikes gold: Cyprus-based, AIM-listed Kefi Gold and Copper (Kefi) announced the discovery of high-grade gold deposits at its Jibal Qutman gold project, it said in a statement yesterday. Kefi owns a 25% stake in Jibal Qutman through a JV with local partner and investment holding company Artar.

Ironing out the details: Kefi said it discovered “excellent grades of up to 66.6 grams of gold per ton of ore.” It added that systematic exploration is currently underway across the 270 square km of Jibal Qutman gold exploration licenses to help “identify further resource potential.” It is also looking for new areas in the concession to explore.

Artar has agreed to fund the programme to “ensure that swift progress continues” as Kefi prepares to launch its Tulu Kapi gold project for which it obtained a USD 320 mn financing package earlier this month.

Expect to know more in 2H: Results of a feasibility study are expected in the second half of this year, Keifi said, adding that a preferred production start-up plan should be drawn up in the same period.

Kefi is big on its prospects in Saudi: “The foot remains on the accelerator at our much larger discovery, the Hawiah Copper-Gold Project in the Wadi Bidah Minerals Belt, where we have recently been joined as explorers by Saudi Arabia’s largest mining company, Ma’aden, which has been granted licenses adjacent to us and quickly launched a large exploration programme in joint venture with Ivanhoe Electric,” Kefi’s Executive Chairman Harry Anagnostaras-Adams said.

REMEMBER- All part of the Kingdom’s mining push: Earlier this month, the Mining Ministry announced setting up a USD 182 mn mineral exploration incentive program in cooperation with the Investment Ministry. The moves come as part of the Kingdom’s efforts to expand the sector and tap reserves of gold, phosphate and others. The nation’s untapped mineral resources are now worth as much as USD 2.5 tn, or 90% more than the last forecast in 2016, officials said earlier in January.

Princess Reema pushes back on opposition to hosting the WTA finals in Saudi Arabia

Set point to Princess Reema: Princess Reema bint Bandar Al Saud, the Kingdom’s ambassador to Washington, pushed back at critics who say Saudi shouldn’t host the 2024 Women’s Tennis Association (WTA) Finals. Princess Reema was addressing calls by retired tennis icons Chris Evert and Martina Navratilova to dismiss Saudi’s bid to host WTA finals, set to take place in the first week of November.

“It pained me deeply to read a column in the Washington Post objecting to Saudi Arabia hosting the WTA Finals based on arguments that are outdated stereotypes and western-centric views of our culture,” said the Ambassador on social media platform X yesterday.

What they said: “The WTA’s values sit in stark contrast to those of the proposed host [Saudi]. Not only is this a country where women are not seen as equal, it is a country where the current landscape includes a male guardianship law that essentially makes women the property of men,” wrote Evert and Navratiloa.

FACT CHECK- Anybody who thinks Saudi women are the property of “their” men has never met a SAudi woman.Saudi women own over 300k businesses and almost 25% of the Kingdom’s SMEs, which is about the same percentage as the US. There are also over 330k registered female athletes in the Kingdom, with 14k actively participating in tennis, said Princess Reema.

Hear it from Nadal + Sabalenka:“If I can help them [Saudi kids] pick up a racquet or simply get fit and enjoy the benefits of healthy living, then I’ll be happy to have made a difference," said former world #1 Rafael Nadal who, earlier this month, became an ambassador for the Saudi Tennis Federation.

World #2 Aryna Sabalenka is also supporting the move to Saudi, citing her “amazing experience” during an exhibition event in Riyadh last year, she told Reuters.

“To those who seek to deny our women the same opportunities that others enjoy, I say that what I hear loudly and clearly is that there is no seat for me at their table. But I will welcome them at mine. Because my table isn’t limited by political views, borders, race, or geography. And I hope that they accept my invitation to sit at my table and meet the women that they may not have intended to inspire,” the ambassador added.

IN OTHER TENNIS NEWS-

Saudi’s first woman professional tennis player, Yara Al Hogbani, will be competing this weekend for a chance to join the 28-player main draw of the Mubadala Abu Dhabi Openset to start on 3 February at Zayed Sports City, Arab News reports. Al Hogbani was handed a wildcard to play a qualifier this weekend.

Retail investors can now place orders in Avalon Pharma’s IPO

The subscription period for retail investors in drugmaker Avalon Pharma’s IPO began yesterday.This comes after institutional the offering was 138.7x oversubscribed. The retail subscription period wraps up on Thursday, 1 February, with some 600k shares on offer.

About the IPO: Earlier this month, Avalon Pharma said it would price its offering at SAR 78 to SAR 82 per share. Avalon intends to sell 6 mn shares, good for a 30% stake in the company, on Tadawul’s main market. Some 90% of the offering is earmarked for institutional investors.

The timeline, according to Avalon’s IPO website:

Institutional bookbuilding — 14-18 January;
Institutional + retail subscription — 30 January to 1 February;
Final allocation of shares — 8 February;
Refund of excess subscription amounts — 14 February.

About Avalon: The Riyadh-headquartered company develops, makes, and markets a portfolio of consumer health and cosmetic brands, in addition to generic medications. The drugmaker has 70 brands including Alpha Plus, Avalon Care, and Avogain, along with 250 SKUs, according to its intention to float (pdf). Avalon claims a 9% market share in the dermatology and respiratory therapeutic products markets, along with a 45% success rate in the 160 public tenders it has pursued in the past four years.

ADVISORS-Aldukheil Financial Group (AFG) is quarterbacking the transaction as financial advisor and bookrunner, Alinma Investment is lead manager and underwriter, Alinma Bank and SNB are receiving agents, and Mohammed Al-Dabaan and Partners is the legal advisor. KPMG is the financial auditor while Pwc is the financial due diligence advisor, and Euromonitor International is acting as market advisor.

Investment Ministry takes inventory of private investments abroad

The Investment Ministry wants private companies to disclose information about their investments abroad,the Saudi Gazette reports, citing remarks by Minister Khalid Al Falih.

Among the data the ministry wants private investors to file on their direct investments abroad:

Name of the country and city of the investment;
Investment duration with start date;
The sector(s) in which they are investing;
Investment value in USD;
Ownership or partnership structure.

The pitch: The Ministry intends to use the information gathered to help local investors and companies to better tap into new global markets and secure more business, said Al Falih, without providing further information. He says the ministry will use the information it collects to inform its future policies.

“The ministry has the right to do whatever is necessary in order to achieve its objectives,including establishing a database of investment and its indicators in the Kingdom,” Al Falih added, without clarifying whether taking the questionnaire is mandatory.

GASTAT is doing something similar, but for the local market: The General Authority for Statistics is conducting a survey to collect data about business activities in the local market. This is expected to cover businesses of all sizes across all sectors and geographical scopes. The move is also aimed at updating the base year used in calculating the GDP.

Cabinet approves regulation of Supreme Space Council

The Cabinet approved yesterday the regulation of the Supreme Space Council, state news agency SPA reported yesterday. No further details were provided on the council, which was set up in 2022 to map out policies and strategies for space programs and oversee the implementation of the strategy.

Also approved at the ministers’ meeting:

Mandating the Energy Minister to sign a MoU with China on oil, gas and minerals;
Mandating the Foreign Minister to discuss and sign a draft headquarters agreement with the Islamic Military Counter Terrorism Coalition (IMCTC);
Mandating the Environment, Water and Agriculture Minister to sign a MoU with Hong Kong;
Mandating the Environment Minister to sign a MoU with Serbia to promote direct investments;
Mandating the Economy Minister to sign a MoU on economy and planning with Kuwait;
The Transport and Logistic Services membership in the OECD’s International Transport Forum (ITF);
An economic cooperation agreement with Latvia;
A reference agreement with other countries to exchange information on tax matters.

Gaza also got a mention: The ministers reiterated the urgency of an immediate ceasefire in Gaza and holding Israeli occupation forces accountable for its “systematic violations to international and humanitarian laws”.

Jarir’s net income up 2% y-o-y in Q4

A positive Q4 for Jarir:Jarir Marketing (Jarir Bookstore), one of the Kingdom’s top retail chains, reported a 2% y-o-y rise in net income in the fourth quarter of 2023 to SAR 273.2 mn, Argaam reported yesterday, citing interim financial results. Its revenues jumped by 8.7% y-o-y during the quarter to SAR 2.8 bn. The financial results did not include details on what drove the growth during the last quarter of the year.

A good year too: Jarir’s net income during the full year marginally grew by 0.3% y-o-y to SAR 973 mn, while revenues were up 12.8% y-o-y during the same period to SAR 10.6 bn, its interim financial results to Tadawul showed yesterday.

Main drivers: It said the rise in revenues last year came on the back of an increase in sales of several departments, including smartphones, video games and computers. However, gross profit slightly dipped by 0.9% y-o-y last year due to a decline in profit margins for several departments, including smartphones and a change in sales mix.

It was the year of record sales: Jarir’s revenues last year surpassed the SAR 10 bn mark for the first time in its history, its Chairman Muhammad Alagil told Al Arabiya in an interview (watch, runtime: 6:41).

Jarir’s Egypt subsidiary took a slight hit on the back of the EGP devaluation: Jarir said that the difference between its comprehensive income and net income during 2023 includes exchange losses estimated at SAR 12 mn for its Egyptian subsidiary due to the devaluation of the EGP. “It’s an accounting loss,” Alagil clarified, saying that the company’s activity in Egypt is limited to leased buildings for a one-time opening of four or five branches.

Bupa Arabia reports 28.3% y-o-y drop in net income in Q4

Bupa Arabia Cooperative Ins. (Bupa Arabia)reported a 16.8% y-o-y rise in net income last year to SAR 940 mn, while ins. revenues grew 23.4% y-o-y to c. SAR 15.9 bn, its financial results to Tadawul showed yesterday. The full-year profitability came despite a dip in net income in 4Q 2024.

Driving the growth during the year: Bupa Arabia attributed the rise in net income last year to a higher net ins. services on the back of business growth, rise in insured lives, and lower reins. net expenses. The higher net income also came on the back of a 110.2% surge in net other revenue due to business growth and start of subsidiary operations. This helped offset lower investment results and higher operating expenses during the year. The rise in revenues during 2023 came on the back of business growth and increase in ins. lives, according to the disclosure.

Cloud solutions provider Edarat Group reported a c.37.8% y-o-y rise in net income in 2023 to SAR 17.4 mn, according to its financial statements to Tadawul.Its revenues were up 36.2% y-o-y last year to SAR 80.2 mn. The rise in topline came on the back of a 152% y-o-y growth in revenues for Edarat Cloud during the second half of the year.

Abeel Akel named Ryal Commission of AlUla’s new head

The Royal Commission of AlUla (RCU) has named Abeer AlAkel (Linkedin) as its new CEO, replacing former head Amr AlMadani, who was arrested earlier this week on corruption charges, Asharq Al Awsat reported yesterday.

AlAkel is no stranger to the inner workings of RCU: She first joined the commission in 2017, holding leadership positions including the chief of special initiatives and partnerships since 2019. Prior to joining the RCU, AlAkel was the head of the vision realization office at the General Entertainment Authority. Her expertise also includes positions in global accounting firm PricewaterhouseCoopers (PwC), SABB, and HP.

ITFC + Saudi Exim to provide USD 25 mn facility to Pakistan’s Bank Al Habib. PLUS: Sukuk, desalination, debt

BANKING-

#1- ITFC + Saudi Exim set to provide USD 25 mn facility to Pakistan’s Bank Al Habib: Jeddah-based International Islamic Trade Finance (ITFC) and the Saudi Export-Import Bank (Saudi Exim Bank) signed an implementation agreement to provide a USD 25 mn line of financing to Pakistan’s Bank Al Habib, ITFC said in a statement yesterday. The financing aims to help local SMEs boost non-oil exports to Pakistan. Separately, ITFC signed a work plan with Monsha’at and Saudi Exim Bank to support exports by local SMEs abroad, SPA reported.

ITFC is making moves elsewhere: The ITFC signed a USD 90 mn master Murabaha agreement with the International Hydrocarbons Company of Djibouti (SIHD) to help it secure energy supply by raising petroleum imports, according to a statement yesterday.

#2- Al Moammar Information Systems has amended and renewed a Shariah-compliant credit facility worth SAR 136.8 mn with the Saudi Investment Bank, it said in a disclosure to Tadawul yesterday. The loan will finance new project contracts and the issuance of letters of credit and guarantee, it added.

SUKUK-

Saudi German Health’s planned SAR-denominated sukuk issuance is part of the healthcare provider’s debt restructuring plans, President and Deputy Chairman Makarem Batterjee told CNBC Arabia (watch, runtime: 6:11). “This [sukuk issuance] isn’t considered new loans. It will help improve cashflow and income-making,” he said, estimating the healthcare provider’s debt at SAR 3 bn.

ICYMI- Saudi German Health announced earlier this month plans to issue SAR-denominated sukuk worth SAR 1.5 bn under its sukuk issuance program through public offering. Al Rajhi Capital was appointed as the sukuk holders' agent, financial advisor, and sole arranger.

DESALINATION-

Alucor awarded contract to provide mechanical works for landmark Shuaibah 3 IWP: UAE-based EPC contractor Alucor signed an agreement with South Korea’s industrial equipment manufacturer Doosan to provide mechanical, electrical and instrumentation installation work at the USD 821 mn seawater reverse osmosis (SWRO) Shuaibah 3 IWP desalination plant, Trade Arabia reported yesterday. The project is being developed by a consortium comprising private utility Acwa Power and PIF subsidiary Badeel and is scheduled to begin commercial operations by May 2025.

ARTIFICIAL INTELLIGENCE-

Computer science and tech graduates can get AI and data tech training through the Saudi Data and Artificial Intelligence Authority’s (SDAIA) newly launched SDAIA Al Mostaqbal graduate program, SPA reported yesterday. The trainees will undergo training in AI and data tech at SDAIA and other top tech institutions to improve their capabilities and skills. They will then join an on-the-job- training program ahead of employment at SDAIA, it said.

M&A WATCH-

Mouwasat Medical Services will offload its entire 50% stake in Advanced Medical Projects, it said in a disclosure to Tadawul yesterday. Magrabi Hospitals and Centers holds the remaining 50% in Advanced Medical Projects. The company provides ophthalmology services under the name of Magrabi Eye Center in Dammam. Starting tomorrow, Mouwasat will start providing the same services through the Mouwasat Eye Center in Dammam.

The Federal Reserve to announce decision on interest rates today

It’s Fed day: The US Federal Reserve will announce its decision on interest rates later today following the end of its two-day policy meeting.

No cuts just yet: Economists expect the Fed to leave interest rates at their current 22-year high of 5.25-5.5%, writes the Financial Times. Economists are instead looking to the Fed to cut rates at their following meeting in March or further down the line — late spring to early summer. “I see no reason to move as quickly or cut as rapidly as in the past,” Fed governor Christopher Waller said in December. The central bank has repeatedly urged caution to bullish markets that have priced in interest rate cuts as early as March, insisting that more encouraging inflation data is needed before the central bank can consider reversing its tightening cycle.

Premature cutting could be dangerous: Economists optimistic that rate cuts are coming later in the year feel the US economy is strong enough to withstand higher rates for longer rather than risking price pressures bouncing back after a premature cut.

TASI	11,985.97	-2.2% (YTD: +0.2%)
MSCI Tadawul 30	1,561.48	-2.2% (YTD: +0.7%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	30,347.30	+3.8% (YTD: +21.9%)
ADX	9,518.83	-0.3% (YTD: -0.6%)
DFM	4,168.43	-0.1% (YTD: +2.7%)
S&P 500	4,924.97	-0.1% (YTD: +3.3%)
FTSE 100	7,666.31	+0.4% (YTD: -0.9%)
Euro Stoxx 50	4,662.70	+0.5% (YTD: +3.1%)
Brent crude	82.87	+0.6%
Natural gas (Nymex)	2.09	+0.5%
Gold	2,054.00	+0.2%
BTC	42,960.05	-0.4% (YTD: +87.5%)

THE CLOSING BELL-

The TASI fell 2.2% yesterday on turnover of SAR 9.5 bn. The index is up 0.2% YTD.

In the green: Saudi German Health (+4.7%), Baazeem (+2.6%) and AlMunajem (+1.3%).

In the red: East Pipes (-10%), Arabian Drilling (-10%) and Ades (-10%).

CORPORATE ACTION

Al Jouf Cement’s BoD will vote on 19 February on filing a liability lawsuit against its former chairman and three former board members, it said in a disclosure to Tadawul yesterday. The lawsuit against the former chairman comes on the back of a SAR 10 mn fine against the company by the General Competition Authority in 2018. The BoD is accusing the former members of the board of resulting in a SAR 136 mn loss in an investment in Eastern Industrial Company through unauthorized transactions, alleged signature forging, misleading information on the investment and others.

CALENDAR

JANUARY

28-31 January (Sunday-Wednesday): Saudi Franchise Expo 2024, Jeddah.

28-31 January (Sunday-Wednesday): BiznEX, the Riyadh International Convention and Exhibition Center, Riyadh.

30 January-3 February (Tuesday-Saturday): Alula 2024 Tour.

FEBRUARY

4-6 February (Sunday-Tuesday): SIMEC International Expo, Riyadh.

5-7 February (Monday-Wednesday): Saudi HORECA 2024, Jeddah.

8 February (Thursday): end of Tuwaiq International Sculpture Symposium, Riyadh.

8-10 February (Thursday-Sunday): Hail Toyota International Rally.

10-14 February (Saturday-Wednesday): Filipino exporters will be in town for a business-matching tour.

9 February- 23 March (Friday-Saturday): Desert X ALUla.

10 February (Saturday): Last day to apply for permits to lease properties to pilgrims during Hajj season.

11- 12 February (Sunday-Monday): The Space Debris Conference, Securing the Future Growth of the Global Space Economy, Riyadh.

12-14 February (Monday-Wednesday): The International Petroleum Technology Conference (IPTC), Riyadh.

19 February (Monday): Al Jouf board of directors to vote on filing a liability lawsuit against its former chairman.

19 February (Monday): The Future of Business 2024 Forum, Eastern Chamber’s HQ, Dammam.

19-20 February (Monday-Tuesday): Saudi Capital Market Forum, King Abdullah Financial District, Riyadh.

22 February (Thursday): Founding Day (national holiday)

26-29 February (Monday-Thursday): Big 5 Construct Saudi, Riyadh.

26-29 February (Monday-Thursday): FM EXPO SAUD

26-29 February (Monday-Thursday): Stone and Service Saudi Arabia, Riyadh.

MARCH

2 March (Friday): end of Noor Riyadh show, segment “Refracted Identities, Shared Futures”, Riyadh.

4-6 March (Monday-Wednesday): International Conference on Sand and Dust Storms in the Arabian Peninsula, Riyadh.

4-7 March (Monday-Thursday): LEAP 2024, Riyadh.

11 March (Monday): Flag Day (national holiday)

Signposted to happen sometime in March:

Ramadan

APRIL

14-21 April (Sunday-Monday): IMF and World Bank spring meetings, Washington, DC

28-29 April (Sunday-Monday): World Economic Forum’s Special Meeting, Riyadh.

29 April-1 May: Future Hospitality Summit at Al Faisaliah Hotel, Riyadh.

Signposted to happen sometime in April:

Eid Al-Fitr (national holiday)

MAY

19-21 May (Sunday-Tuesday): Saudi Energy Convention, Riyadh.

21-23 May (Tuesday-Thursday): The Saudi Food Show, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

5 June (Wednesday): World Environment Day.

Signposted to happen sometime in June:

Eid Al-Adha (national holiday)

AUGUST

12-15 August (Monday-Thursday): The Saudi Food Expo, Riyadh

SEPTEMBER

11-12 September (Wednesday-Thursday): The Saudi Event Show, Riyadh.

23 September (Monday): National Day (national holiday)

DECEMBER

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

Signposted to happen sometime in 2024:

The AFC Champions League Elite

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