India’s VA Tech Wabag lands SAR 1 bn Yanbu desalination plant contract. PLUS: The Fed holds rates steady

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Hassana Investment to overhaul senior management?

Good morning, everyone, and happy THURSDAY. The Fed has decided to hold interest rates steady, defying Trump's constant pressure since he took office earlier this year. The decision saw a rare occurrence of dissent, however, signaling that Donald’s influence on the independent institution holds some weight. We have the details in today’s Planet Finance.

On the home front: It’s a hot but calm summer morning in the Kingdom, with the big story featuring VA Tech Wabag’s SAR 1 bn contract to build the Yanbu desalination plant. We also sat down for a coffee with Mostafa Gad, head of investment banking at EFG Holding, to break down what’s behind the momentum behind Saudi’s IPO market.

ALSO- This week’s My Morning Routine features Mohamed Milyani, founder and CEO of Nqoodlet. We discussed Milyani's unique management style, his Chief Happiness Officer™, and Nqoodlet's financial operating system for Saudi SMEs.

HAPPENING TODAY-

#1- The Kingdom’s statistics agency Gastat is set to release 2Q 2025’s GDP flash estimate today, according to the authority’s calendar. Revised GDP growth in 1Q came in at 3.4% y-o-y, on the back of a 4.9% increase in non-oil activity.

#2- E-invoicing deadlines: Today is the last chance for companies with more than SAR 2.5 mn in revenues subject to VAT in 2022 or 2023 and those that had SAR 40 mn in revenues from goods and services in June and 2Q 2025 to integrate their e-invoicing solutions with Fatoora.

WEATHER- Riyadh will blaze under the desert sun tomorrow, with highs hitting 45°C before easing to 35°C after dark. Jeddah’s coastal heat will peak at 41°C, slipping to a gentler 34°C later in the day. Over in Makkah, the mercury will climb to 42°C, then taper to 35°C by nightfall.

PSAs-

#1- Retailers and wholesalers selling non-food items in the Kingdom must comply with the updated licensing regulations, the Municipal and Rural Affairs Ministry said in a post on X. The new rules apply to outlets selling products like clothing, perfumes, shoes, and stationery, setting minimum space requirements of 24 sqm for standard shops, 2 sqm for kiosks in malls or markets, and 10 sqm for kiosks on commercial or mixed-use land plots.

#2- The Cabinet approved the new Statistics Law, according to the General Authority for Statistics’s statement. The law — replacing the General Statistics Law and the General Population Census Law — establishes a modern framework to improve the quality, transparency, and use of statistics across public and private sectors in line with international standards.

WATCH THIS SPACE-

A shake up at the Kingdom’s biggest pension fund? Hassana Investment Co. is set to overhaul its senior management team, Semafor reports, citing sources it says are in the know. The fund tapped Hani Al Jehani as CEO to succeed Saad Al Fadly, who left earlier this month, with Al Jehani being considered for the permanent position among several other candidates, according to the sources.

Other appointments and reshuffles are expected once a CEO is picked to make up for several recent departures, including senior adviser Paul Sweeting, Chief Risk Officer Maram Alnumay, Chief Investment Officer for regional markets Ahmed Al Qahtani, and Head of Local Public Equity Ahmed Al Humaidan.

More are leaving: Chief Strategy Officer Hamza Khushaim and general counsel Shaima Bakhsh are also expected to leave Hassana by the end of August, the sources said.

Hassana — established in 2009 as the investment arm of the General Organization for Social Insurance — manages over USD 320 bn in assets. The fund has since then been tasked with helping to attract foreign managers to the kingdom to fuel economic diversification, according to Semafor.

Arabian Drilling is looking to expand outside of the Kingdom to bypass long-term offshore suspensions, CEO Ghassan Mirdad told Al Arabiya (watch, runtime: 8:08). The company is adopting a two-pronged expansion approach, including direct contracts and an alliance with Shelf Company, which resulted in 8 to 10 additional tenders.

IN CONTEXT- Two of Arabian Drilling’s offshore platforms are currently suspended, but utilization could return to 100% if a new contract is signed in 2H 2025, Mirdad said. Suspended onshore rigs are expected to resume operations in Saudi Arabia before the end of 2025.

REMEMBER- Arabian Drilling saw its net income drop 65% y-o-y to SAR 7 mn in 2Q 2025. This came on the back of a decline in rig utilization to 79% from 91% in 2Q last year due to the suspension of several onshore and offshore rigs, along with increased finance expenses from higher debt. To preserve liquidity for its expansion, the company’s board is pausing dividend payouts for the year.

DATA POINTS-

#1- Consumer spending via point-of-sale (PoS) transactions in the Kingdom fell 2.7% w-o-w in the week ending 26 July, reaching nearly SAR 11.9 bn, according to the Saudi Central Bank’s weekly report (pdf). The number of weekly transactions also dropped 2.9% w-o-w to around 206.5 mn during the week.

The details: Food and beverages made up the bulk of consumers’ spending during the week in terms of value, despite slightly dropping 1.8% w-o-w to around SAR 1.7 bn. Restaurants and cafés came in second place, falling 2.4% w-o-w to over SAR 1.5 bn. This was followed by transportation, which dropped 2.2% w-o-w to nearly SAR 945.8 mn, and professional and business services, which declined 3.3% w-o-w to around SAR 931.2 mn. Gas stations spending, inched down 2.1% w-o-w to nearly SAR 886.4 mn, while healthcare shed 4.1% w-o-w to nearly SAR 837.2 mn.

Riyadh had the highest value of PoS transactions at about SAR 4.1 bn, followed by Jeddah at around SAR 1.7 bn.

#2- The Industry and Mineral Resources Ministry issued 23 new mining licenses in June 2025, including 10 for exploration, six for building materials quarry, three for reconnaissance, two for exploitation, and two for surplus mineral ore, the ministry said on X yesterday. The total active mining licenses in the Kingdom currently stand at a little over 2.4k.

#3- Financing backed by the Enterprise Loan Guarantee Program (Kafalah) hit SAR 9 bn in 1H 2025, up 8% y-o-y, according to Kafalah’s post on X. A total of 3k SMEs benefited during the period, marking a 10% increase compared to the same time last year, with SAR 6.6 bn in guarantees issued, up 6% y-o-y.

SPORTS-

#1- Surj joins forces with Leejam Sports: Sports investor Surj Sports Investment and Fitness Time operator Leejam Sports signed an MoU that will see them collaborate on joint facility operations, co-investment in sports properties, community events, and technology and media integration, Surj said in a press release yesterday.

#2- Neom SC reportedly reached an agreement with AS Monaco to sign 19-year-old Saïmon Bouabré in a transfer worth EUR 10 mn plus EUR 2 mn in bonuses, sports reporter Frabrizio Romano said on X. The transfer completion rests on the French player agreeing to personal contract terms with Neom.

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THE BIG STORY ABROAD-

The US’ latest trade agreements ahead of tomorrow’s deadline are still getting top billing in the foreign press, along with a handful of Big Tech earnings and fresh sanctions on Iran.

#1- The US and South Korea reached a trade agreement, setting a 15% tariff on South Korean exports to the US, in exchange for USD 350 bn in investments in US-owned projects selected by US President Donald Trump, Trump said on Truth Social. This is in addition to USD 100 bn in energy investments in the US. This follows a similar structure to the agreement with the UK and Japan, which also pledged investments in exchange for lower tariffs. (Reuters | Bloomberg | Financial Times | Politico | Axios)

Not yet as lucky? India, which could face a 25% tariff on its exports to the US as of tomorrow if ongoing talks end with no agreement. (Bloomberg | Guardian)

ALSO- The US economy rebounded in 2Q 2025, growing 3% after contracting in the first quarter of the year, on the back of strong consumer spending and a turnaround in the trade balance. (CNBC | Wall Street Journal | Bloomberg)

#2- Microsoft and Meta are both spending big on AI, after reporting strong quarterly earnings. Microsoft, which is set to become the second company to reach a market cap of USD 4 tn, is penciling in USD 30 bn in capital expenditures in its first quarter of its fiscal year, while Meta pledged to spend more from its advertising revenues well into 2026. Both companies’ shares rose more than 9% in afterhours trading on the news. (CNBC | Financial Times | Bloomberg | Reuters)

#3- The US doubled down on its pressure campaign on Iran with sweeping new sanctions on 115-linked Iranian individuals and businesses, broadly targeting the shipping business of Hossein Shamkhani, the son of senior adviser to Supreme Leader Ayatollah Ali Khamenei. (Bloomberg | Reuters)

#4- ALSO- Canada is now the latest to pledge recognition of the Palestinian state at September’s UN summit, following in the footsteps of France and the UK. (Bloomberg)

SWA awarded India’s VA Tech Wabag SAR 1 bn contract to establish Yanbu desalination plant

Indian desalination and water treatment firm VA Tech Wabag secured a fresh SAR 1 bn contract for the Yanbu desalination plant from the Saudi Water Authority (SWA), Trade Arabia reported on Tuesday. The reverse osmosis plant will be developed on a greenfield site, and will have a daily capacity of 300 mn liters upon completion.

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

The details: The authority tasked Wabag with all aspects of the project from the ground up, including design, engineering, supply, construction, and commissioning.

IN CONTEXT- Last December, the SWA terminated its USD 317 mn (c. SAR 1.2 bn) EPCC contract for the project — which was signed earlier in September — with VA Tech Wabag, following the authority’s “internal administrative procedures.”

Wabag is a major player in the Kingdom: The Indian firm landed a USD 371 mn (SAR 1.4 bn) EPC contract to design and establish the Al Haer sewage treatment plant in Riyadh in partnership with Mutlaq Al Ghowairi Contracting Company back in February. The plant is expected to go online in December 2026, with a daily treatment capacity of 200k cubic meters. It will also feature a 32 km treated sewage effluent (TSE) system with a daily capacity of 400k cubic meters.

Going back to Fed cuts could unlock GCC bond rally, fuel equity gains

GCC debt and equity markets stand to gain if the US Fed resumes its easing cycle in the back half of the year, Vice President and Head of Fixed Income at Mashreq Capital Amol Shitole told EnterpriseAM. Lower yields and tighter credit spreads would lift fixed income returns and spur issuance from both sovereigns and high-grade corporates looking to lock in cheaper funding.

It’s all about the context: If the Fed chooses to resume its rate-cutting cycle due to a mild slowdown in economic growth in the US, the cuts would support regional equities through stronger liquidity without undermining oil prices, he said. On the flip side, cuts triggered by a sharp US recession would be less supportive, as weakening global demand would pressure oil prices and curb credit appetite.

Mashreq expects the Fed to cut rates twice before year-end, in line with most analysts’ expectations, followed by at least four more reductions in 2026. Shitole said this outlook reflects expectations of moderating US growth, the long-term deflationary effects of tariffs, and the emergence of a more dovish Fed leadership next year.

REMEMBER- Fed Chair Jerome Powell’s run as chair ends in May 2026, and with the US President Donald Trump’s administration recent frustrations with him and his objections to the slow pace of rate cutting, speculation over who will be his successor — with names like Treasury Secretary Scott Bessent in the ring — abound.

A best-case scenario would see the Fed’s resumption of rate cuts drive high single-digit returns in GCC fixed income, supported by strong oil prices, tighter spreads, and robust investor demand, Shitole said. GCC equities would also benefit as lower borrowing costs stimulate credit demand.

The worst-case outcome would involve falling oil prices and a weaker USD eroding fiscal firepower, widening spreads, and dampening credit appetite, he noted. For GCC economies with currencies pegged to the USD, a weaker USD could also push up import prices, creating inflationary pressures.

OUTLOOK INTO 2026 -

Mashreq remains constructive on MENA fixed income, expecting mid-to-high single-digit total returns with carry (yield c.5.7%, 60 bps above the five-year average) as the main driver amid tight valuations.

Low default rates compared with emerging market peers also reinforce the region’s appeal. Shitole pointed to Egypt, Oman, and Morocco as standouts on reform momentum and improving credit metrics, while Saudi bonds are favored in the belly and front end, with the UAE and Qatar offering defensive value.

On equities, Shitole sees structural reforms in Saudi Arabia, Oman, UAE, and Kuwait supporting investments and capital flows in energy, IT, real estate, and hospitality.

Coffee With: Mostafa Gad, head of investment banking at EFG Hermes

Understanding what’s driving regional capital markets — and what signals we should watch in the back half of the year: Saudi’s IPO market made a strong showing in terms of volume and value in the first half of the year, the EGX is outperforming its regional peers year-to-date, and the UAE is holding steady despite regional volatility and weaker oil prices. Altogether, it’s been a strong year so far for regional capital markets.

We sat down with EFG Hermes' Head of Investment Banking Mostafa Gad to break down what’s behind the momentum, what foreign investors are looking for, and how to know we’re on the right track for greater depth in capital markets. Gad also walked us through some of the stepping stones that helped the region’s most active markets drive success. Below are edited excerpts from our conversation:

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

Gad sees equity capital markets (ECM) activity in the region as part of a multi-year trend rather than just a 1H 2025 phenomenon. The current cycle, he says, has been running strong for the past three to four years, fueled by structural reforms across the region.

IN CONTEXT- Saudi Arabia’s main index is down over 9% YTD, while Dubai’s benchmark rose 20%, and ADX is up more than 9%. EGX is up nearly 14% YTD.

The fundamentals in the region are far stronger than many expect, according to Gad. Perceived risk is the biggest misconception foreign investors have about the region. Gad says the perception is far worse than the reality. From afar, the region might seem unstable — but their confidence in the region rises quickly once they actually visit and engage with the market directly.

Despite a rocky geopolitical landscape, Gad is cautiously optimistic about the second half of the year. Even with global headwinds such as the Trump administration’s trade policies, Gad isn’t too concerned about the impact of these developments on regional markets. In fact, he expects geopolitical tensions to ease, rather than intensify, in the near term. Markets have shown resilience, and if that holds, 2H could shape up nicely. Looking ahead, the pipeline for IPOs in the second half is expected to surpass that of the first half.

EFG Hermes has a packed calendar for the remainder of the year. The firm is preparing several issuances in Saudi, the UAE, and Kuwait. On the equity side, they’ve already closed four transactions and aim to complete another three to five before year-end. M&A and DCM pipelines are also very active.

THE LOCAL STORY-

How Saudi became a success story: Reforms in the Kingdom kicked off six or seven years ago with a push to attract foreign investment and liberalize capital markets. While outsiders may still see the economy as government-heavy, Gad points out that the private sector is both deep and sophisticated, and authorities have been working to align with global standards to make the business environment familiar to foreign investors. The Kingdom’s market is evolving toward international standards in both structure and execution, Gad said, adding that regulatory reforms played a key role in making the market more accessible and investor-friendly.

What’s particularly notable is the diversity the Saudi market now offers, Gad said, explaining that investors can tap into a wide range of sectors, from energy and infrastructure to healthcare and consumer goods. Each company brings a different story, management style, and growth potential, making the market both deep and dynamic.

Now the results speak for themselves: The Saudi market has been averaging around 20 listings per year — figures that were virtually unheard of in the past, he said. Many of these offerings have been substantial in size, reflecting growing investor confidence and interest, he added.

Oil prices are worth watching — but not a red flag right now: With prices hovering in the USD 68–70 range, the kingdom still has ample room to maneuver. Crucially, the government retains the flexibility to scale back or delay megaprojects if needed — and that kind of control helps maintain market confidence and keeps fiscal risks in check, Gad noted.

Gad attributed muted debuts on Tadawul to stretched valuations, saying that a correction may actually be a healthy development. This correction is viewed positively as a breather that allows for a reset toward more normalized valuation multiples. It also helps in creating more sustainable market capitalizations for listed companies.

Market correction is seen as a healthy reset for Tadawul. The market being down YTD — but not in bear territory — appears to be driven by multiple factors. One of the key contributors is the drop in oil prices, along with the market coming off what were likely all-time high valuations for nearly every stock, Gad noted. The correction sets the stage for a new wave of growth in the Saudi market once the current cycle runs its course. That rebound could happen later this year or in 2026, but confidence remains strong that it is on the horizon, Gad told us. When it does arrive, the market will be building from a more solid foundation, he said.

Think of this as a pit stop in Formula 1 — it’s like the market is changing its tires to come back even faster and stronger in the next laps.

ELSEWHERE IN THE REGION-

What’s holding back the IPO pipeline in the UAE compared to regional peers? Saudi Arabia simply has a larger and more developed private sector than the UAE, according to Gad. Even without the big government listings, there are more companies ready to go public in Saudi. The UAE’s private sector, while dynamic, is smaller, hence fewer IPO candidates.

Authorities in the UAE understood that to build a vibrant and liquid equity market, they needed to list successful state-owned enterprises. Landmark IPOs such as DEWA and Salik helped attract investor attention, injected liquidity, and laid the groundwork for increased private-sector participation down the line.

Diversification is a key driver of resilience on the DFM: The exchange has shown resilience in its YTD performance largely because the market has somewhat decoupled from oil prices, thanks to its diversified economic drivers, Gad said. People have historically seen a strong correlation between real estate and oil prices. But that relationship seems to have been tested again this year, and it’s not holding up the way it used to.

And over in Egypt, the EGX is still lagging on listings — mostly thanks to a lack of deep domestic institutional capital. Big IPOs typically require foreign participation, and that had been on pause due to FX uncertainty and repatriation concerns.

What foreign investors want from Egypt: “Growth, plain and simple.” To attract foreign interest, Egyptian companies need to show robust growth, particularly in an inflationary environment, he explained, adding that with interest rates above 20%, dividend yields alone won’t cut it. Why invest in a stock when you can get a 20% zero-risk return? Gad says foreign investors are now looking for high-growth businesses with strong fundamentals and the resilience to withstand currency shocks.

Could Egypt see more listings this year? Possibly, but don’t hold your breath. It will likely take another 6-12 months before the EGX sees larger offerings again. Investor confidence is building, but it takes time to translate that into action.

Americana, Nahdi Medical, Al Rajhi Takaful are out with earnings

AMERICANA-

ADX and Tadawul-listed F&B giant Americana Restaurants reported a net income of USD 92.5 mn in 1H 2025, up 15.7% y-o-y, with revenues growing 15.6% to USD 1.2 bn, according to an earnings release (pdf). The growth came on the back of an increase in like-for-like sales, strategic expansion, product innovation, and continued cost discipline. The company maintained last year’s net income margin of 7.6% despite some USD 8.2 mn in new taxes in its main markets in 2025.

The firm expanded its footprint by opening 36 new stores and integrating 46 Pizza Hut outlets in Oman, bringing the company’s total store count to 2.6k locations across 12 countries. Americana also signed an exclusive franchise agreement with Greek food and beverage brand carpo earlier this month with rights in Kuwait and Qatar, and further expansion planned in Bahrain and Saudi Arabia. It is also in talks to buy a stake in Dubai-based Cravia, the MENA operator of Five Guys, Cinnabon, and Zaatar w Zeit.

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NAHDI MEDICAL-

Nahdi Medical’s net income dropped 3.8% y-o-y to SAR 238.4 mn in 2Q 2025, as a result of a lower operating income and a slight increase in expenses, it said in its earnings release (pdf) yesterday. Meanwhile, revenue inched up 2.2% y-o-y to SAR 2.5 bn in the same period.

On a 1H basis, the company’s bottom line climbed 2.7% y-o-y to SAR 493.6 mn, while its top line grew 9.1% y-o-y to SAR 5.2 bn. This came due to a robust performance in the retail segment and continued growth momentum in the healthcare segment and the UAE business.

ALSO- Nahdi Medical’s board greenlit the distribution of SAR 338 mn in dividends for 1H 2025 at SAR 2.6 a piece, it said in a separate Tadawul disclosure. The distribution will take place on 26 August.

AL RAJHI TAKAFUL-

Al Rajhi Company for Cooperative Ins. (Al Rajhi Takaful) saw its net income increase 24.3% y-o-y to SAR 111.6 mn in 2Q 2025, it said in a disclosure to Tadawul yesterday. The growth came on the back of a 161.2% increase in ins. services despite a 38.8% decrease in net investment income. Meanwhile, revenue rose 2.8% y-o-y to SAR 1.4 bn during the quarter, driven by higher business volumes in protection, savings, and medical ins.

On a 1H basis, the firm’s net income inched up 0.6% y-o-y to SAR 202.4 mn, while its revenue slipped 2.3% y-o-y to SAR 2.6 bn.

Amana Cooperative Ins. names Rachid Abi Nader as CEO

Amana Cooperative Ins. appointed Rachid Abi Nader as CEO, according to a disclosure to Tadawul. Abi Nader brings more than 25 years of experience in the ins. industry, spanning strategic development, risk management, digital business, and corporate transformation across the Middle East, Europe, and the US. He previously held senior roles at The Risk Management Group, PwC Middle East, and Booz & Company (now known as Strategy&).

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Diversification spending drives need for higher oil revenues -Bloomberg

The Kingdom’s efforts to diversify its economy away from oil are yet again on the minds of the foreign press, with Bloomberg arguing that despite significant social and economic reforms under Vision 2030, Saudi Arabia’s economy remains dependent on oil revenue and, by some measures, its reliance has even deepened.

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The business news service estimates that the fiscal breakeven oil price has risen to USD 96 a barrel in 2025, from USD 91 in 2016. The figure rised to USD 113 a barrel when PIF spending is factored in. With oil still constituting 60% of state revenue and over 65% of exports, this has spurred increased government borrowing to sustain the diversification agenda and mitigate the increasing fiscal deficit, which has run for the past eight quarters.

Still, diversification was fruitful in mant aspects. The non-oil economy now exceeds half of the Kingdom’s GDP and non-oil revenues reached USD 134 bn in 2024, compared to USD 50 bn in 2016. The Kingdom has also witnessed a boom in tourism, mns more women joining the workforce, and growth in new industries.

Turbulence can be a sign of economic transformation: “Recent spending increases reflect capex for Vision 2030 projects in their early stages — a temporary phase, not a long-term trend,” a Finance Ministry spokesperson told Bloomberg, adding that “as these transformative initiatives reach full operational capacity, they will generate returns and contribute to the fiscal position and the economy.”

Dar Al Majed's IPO lands Sinad Holding as a cornerstone investor with 2.2% stake deal

IPO WATCH-

Sinad Holding will subscribe to about 6.7 mn shares as a cornerstone investor in Dar Al Majed Real Estate’s IPO, it said in a Tadawul disclosure yesterday. Sinad will hold 2.2% of Al Majed’s capital under the binding agreement, following approvals from its shareholders and Al Majed’s board. The move is part of Sinad’s investment portfolio diversification strategy to optimize its shareholders' returns.

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IN CONTEXT- Dar Al Majed took a 30% stake to Tadawul’s main market in a secondary offering of 90 mn existing shares, which saw its institutional tranche fully booked within minutes of opening on Tuesday, setting the offer price within the SAR 13.5-14 range per share. At the top of the range, the share sale could see the property developer raise up to SAR 1.26 bn in proceeds, implying a market cap of SAR 4.2 bn at listing.

EXPANSION-

Chinese on-demand food delivery platform Keeta added 11 new cities to its Saudi footprint, expanding its nationwide reach to 20 cities, it said in a LinkedIn statement yesterday. The new hubs are in Hail, Tabuk, Abha, Khamis Mushait, Jazan, Najran, Al Jubail, Buraydah, Hafar Al Batin, Yanbu, and Taif. Keeta made its debut in Saudi Arabia in September 2024 with its Al Kharj launch.

REAL ESTATE-

The Saudi Real Estate Refinance Company (SRC) signed an agreement with Bank Albilad to buy a mortgage portfolio, it said on X on Monday. The agreement will help SRC expand its funding capacity and support future plans to package and sell home loans to investors. The value of the agreement was not disclosed.

ICYMI- SRC, the real estate finance arm of the Public Investment Fund, acquired a SAR 3.4 bn real estate financing portfolio from the Saudi National Bank back in March as part of the Kingdom’s efforts to modernize and expand its real estate finance sector.

LOGISTICS-

The Saudi Ports Authority (Mawani) added Wan Hai Lines’ AR2 Asia Redsea shipping service to Jeddah Islamic Port, linking it to 10 regional and global ports, it said in a statement on Tuesday. The new service — with a capacity of 3.7k TEUs — will connect Jeddah with the ports of Shanghai, Ningbo, Nansha, and Shekou in China, Klang in Malaysia, Aqaba in Jordan, Sokhna and Alexandria in Egypt, and Izmit and Kumport in Turkey.

AVIATION-

Riyadh Air partners with an Air France-KLM subsidiary to maintain its Boeing Dreamliners: EPCOR, a subsidiary of Air France Industries KLM Engineering & Maintenance, will look after Riyadh Air ’s APS5000 auxiliary units powering the Boeing 787 Dreamliner fleet under a long-term maintenance, repair, and overhaul agreement it signed with the PIF-owned airline, according to a press release.

The Fed keeps rates steady at 4.25-4.50%, despite a rare dissent

The Federal Reserve decided to hold its benchmark rate steady at 4.25-4.50%, marking a fifth consecutive meeting with no change, according to a press release (pdf). Wobbling net exports did not hinder the Fed’s decision, which left no hint on possible future rate cuts — at least until the trajectory of the Fed’s dual mandates, jobs and inflation, are clearer.

The rationale: Despite a low unemployment rate at 4.1%, a solid labor market, and moderate economic growth, inflation remained high in 1H this year, adding to the uncertainty of the economic prospect. Data provided limited justification to deviate from the cautious “wait-and-see” policy, which the Fed adopted since Trump took office.

"You have to think of this as still quite early days. There's quite a lot of data coming in before the next meeting. Will it be dispositive? [...] It is really hard to say." Chair Jerome Powell said in a press conference. Investors seem to have taken Powell’s comments as a signal that rate cuts will wait a little bit more, reducing the probability of a rate cut in September to less than 50%, Reuters reported.

Patience over haste: “We believe that the current stance of monetary policy leaves us well positioned to respond in a timely way to potential economic developments,” Powell said in June. Powell noted that trade policy uncertainty — especially around tariffs — continues to cloud the outlook and could fuel inflationary pressures if sustained.

Not all governors were on board: Yesterday’s meeting saw a rare dissent against the tight monetary policy from two governors — both appointed by President Trump. Vice Chair for Supervision Michelle Bowman and Christopher Waller — who are potential nominees to succeed Powell next May — were in favor of lowering the interest rates by 0.25 percentage points, according to the newswire.

The last time a Fed’s meeting saw an objection from two of its governors was over 30 years ago, reigniting fears of Trump’s public pressure affecting the work of the independent institution. Trump has been vocal in attacking Powell at every turn, demanding interest rate cuts and mounting a campaign against the Fed for alleged corruption and spending bns on renovations.

MARKETS THIS MORNING-

Asian markets are trading mixed this morning, after the US cemented a 15% blanket tariff on South Korea. Hong Kong’s Hang Seng is down 1.4% and the Shanghai Composite is down 0.8%, while Japan’s Nikkei is going in the opposite direction with an 0.9% increase. Meanwhile, Wall Street futures are rising on positive earnings from Meta and Microsoft.

TASI	10,914	+0.8% (YTD: -9.3%)
MSCI Tadawul 30	1,407	+0.9% (YTD: -6.8%)
NomuC	26,809	+0.3% (YTD: -14.8%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	33,860	-0.7% (YTD: +13.9%)
ADX	10,353	+0.1% (YTD: +9.9%)
DFM	6,208	+0.5% (YTD: +20.4%)
S&P 500	6,363	-0.1% (YTD: +8.2%)
FTSE 100	9,137	0.0% (YTD: +11.8%)
Euro Stoxx 50	5,393	+0.3% (YTD: +10.2%)
Brent crude	USD 73.51	+0.4%
Natural gas (Nymex)	USD 3.02	-0.8%
Gold	USD 3,337	-0.5%
BTC	USD 118,416	-0.6% (YTD: +26.5%)
Sukuk/bond market index	912.34	+0.1% (YTD: +1.1%)
S&P MENA Bond & Sukuk	146.79	+0.3% (YTD: +4.9%)
VIX (Volatility Index)	15.48	-3.1% (YTD: -10.8%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.8% yesterday on turnover of SAR 4.3 bn. The index is down 9.3% YTD.

In the green: Thimar (+10.0%), Acwa Power (+5.9%) and HB (+4.4%).

In the red: Sport Clubs (-7.2%), Nahdi (-5.5%) and Baan (-4.0%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.3% yesterday on turnover of SAR 26 mn. The index is down 14.8% YTD.

In the green: Group Five (+14.9%), Molan (+14.2%) and Future Vision (+9.7%).

In the red: FAD (-6.7%), Albattal Factory (-4.1%) and Alashghal Almoysra (-4.0%).

CORPORATE ACTIONS-

Leejam Sports will distribute some SAR 43.9 mn in dividends for 2Q 2025 at SAR 0.84 apiece, starting 14 August, it said in a disclosure to Tadawul yesterday.

The Kingdom signs three MoUs with Palestine

Saudi Arabia has signed three MoUs to provide support for HR development, education, and telecoms in the Palestinian territories, state news agency SPA reported yesterday. This took place on the sidelines of the Saudi-French UN ministerial conference in New York, during which Saudi Foreign Minister Faisal bin Farhan met with Palestinian Prime Minister Mohammad Mustafa to discuss bilateral relations and developments in Palestine.

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

The MoUs breakdown:

A human resources MoU was signed between the Saudi Human Resources and Social Development Ministry and the Palestinian General Personnel Council to develop Palestinian human capital.
An education MoU was signed between the Saudi Education Ministry and the Palestinian Education and Higher Education Ministry to level up curriculum development.
An MoU in telecommunication and information technology was signed between the Saudi MCIT Ministry and the Palestinian Communications and Digital Economy Ministry to collaborate on digital transformation and ICT.

REMEMBER- The Kingdom and France co-hosted a UN ministerial conference in New York on Monday to rally international support for a two-state solution to the Israeli-Palestinian conflict. The meeting — backed by 125 countries, including 50 ministries — aimed to map out steps toward the creation of a Palestinian state and a long-term resolution to the conflict, despite the absence of Israel and the US.

My Morning Routine: Mohamed Milyani, founder and CEO of Nqoodlet

Mohamed Milyani, Founder and CEO of Nqoodlet: My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is the founder and CEO of Nqoodlet Mohamed Milyani (LinkedIn). Edited excerpts from our conversation:

I am Mohamed Milyani. I started my career around 1999 amid the first wave of the internet as a freelancer. Around 2006 or 2007, I pivoted to become an authorized Apple trainer while also serving as a sales trainer.

In 2013, I co-founded Tech Wahood, a software development house where we launched several startups, including Lucidya, and developed more than 270 projects. During my later years at Tech Wahood, I also wrote a third book on building mobile applications and created the Mobile App Canvas. It was a long journey with multiple hats to wear.

Nqoodlet started as an expense management solution to address issues for the more than 1.3 mn SMEs in Saudi Arabia. For them, handling financial operations is very hard, and they can't hire a chief financial officer with good experience, because it's very expensive. This has caused many SMEs to either go out of business or fail to gain adequate insights into their financial projections. Meanwhile, available ERP solutions are either very expensive or overly complicated. That’s why Nqoodlet is building a comprehensive financial operating system specifically for these SMEs.

I handle two roles at Nqoodlet. First, as CEO, I oversee all fundraising aspects, keep track of all departments’ KPIs to check if we are hitting our targets, and follow up with all the teams. I also handle investor relations and manage communications with our major service providers while ensuring that the main vision for Nqoodlet is on track.

I’m also the chief product officer. In the early stages of any startup or company, the product needs to be led by the founder to ensure the vision is consistently aligned. During the last few months, I've actually started to rely more on the product team that I built internally. Now I have an acting product manager who is handling the day-to-day product operations. However, I still steward the big vision for the product and ensure we are going in the right direction with that vision.

Within the next three years, our goal is to handle all of the financial operations for SMEs — from planning to audited financial statements. We aim to make it effortless for them by providing automated VAT reports and financial insights. We are focusing on making the language of our platform very user-friendly while also catering to experienced accountants. We are designing the platform to fit our target audience, mainly startup founders and SME CEOs.

We are also working on something called Plan, which gives SMEs the ability to plan and track their budget and expenses while eliminating the need for extensive manual work. I've seen it with many companies; they have an Excel sheet, and after a few months, they start to lose track. We aim to make it very easy for them, in a language they understand.

My management style is a bit different, especially in the tough financial industry. I was initially advised to try to be tough, but then I received another piece of advice from a person I really admire: “Don't try to change your way of management, or how you are dealing with the team, even if the whole industry is trying to push you.” I took this advice seriously and decided to ignore the common advice to be tough and to continue with my own style.

I treat every team member as if we are working together on the same level. I don't like to pull rank unless it's really needed or our vision is being compromised. I also try to listen carefully and build an internal culture where everyone is welcome to talk and speak their mind, unless it concerns a major strategic direction. So, it's a balancing act. I'm neither purely logical nor purely emotional; it's almost a 50/50 balance.

Selecting the right co-founder is very important. My advice is that if you're going to have disagreements, it's best to have them at the beginning, not while you're building the startup. Fortunately, I have a great co-founder with me, Yara. She's a really great partner who is incredibly helpful and significantly lightens my workload.

Another key point is team member selection. As a founder, particularly in the early stages, you need to personally vet the cultural fit of at least your first 50 hires. This is a vital point every founder needs to consider, because if someone isn’t a good cultural fit, they can become a “bad apple” and negatively affect the whole team. When comparing two candidates, a better cultural fit will be more beneficial for the company’s early development even if the other possesses marginally more knowledge.

Uncertainty is inherent in all early-stage startups. For me, I have one word I always love to refer to: resilience. Any startup founder who does not possess resilience won't be able to keep the startup going or make it grow.

My daily routine starts by waking up between 5:30-6:30am. I go to the gym before work for about an hour, which helps release tension. I have an espresso in the gym lounge, I set my calendar, and then I start the “battle of the day” at the office.

I pick up my four-year-old son from school at 12:30pm, and he comes with me to the office on most days. We call him the Chief Happiness Officer, and he enjoys his role immensely, spending his time interacting and playing with the team and making interesting observations.

After finishing my day at around 6:30-7:30pm, I go home and do some reading. I also take online Harvard courses in leadership, applying what I learn to our growing team. After that, I sometimes watch TV series, anime, or play video games to unwind. I try my best not to work on Fridays, unless it’s urgent.

I really enjoy reading about history, especially about specific eras or people. I also enjoy learning about the science of how people interact, think, and behave — psychology or behavioral science. Moreover, reading novels sometimes takes my mind away from the real world, and it increases my ability to think and experience different perspectives. Currently, I'm really enjoying Dawn by Octavia E. Butler.

Two books I always recommend for anyone in the startup scene are The Hard Thing About Hard Things by Ben Horowitz and Deep Work by Cal Newport.

CALENDAR

JULY

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

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

31 July (Thursday): Deadline for companies with SAR 40 mn in revenues from goods and services during June and 2Q 2025 to integrate e-invoicing solutions with Fatoora.

31 July (Thursday): Deadline for companies to register for the ASICS Innovation Pitch competition.

AUGUST

3 August (Sunday): Opec+ meeting to decide on production levels for September.

5 August (Tuesday): Saudi Aramco to publish 2Q 2025 earnings.

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

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

3Q 2025

The National Water Company is expected to award a construction contract for the Hail Region Water Networks project.

SEPTEMBER

3-4 September (Wednesday-Thursday): Sustainable Maritime Industry Conference (SMIC), Ritz-Cartlon, Jeddah.

9-11 September (Tuesday-Thursday): International Beauty Expo 2025, Jeddah Superdome.

9-11 September (Tuesday-Thursday): Seredo Real Estate Development and Ownership Exhibition, Jeddah Superdome,

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

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

23 September (Tuesday): Saudi National Day.

OCTOBER

1 October (Wednesday): Electronic salary transfer via the Musaned platform to include employers with two or more domestic workers.

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

1-3 October (Wednesday-Friday): FIBO Arabia 2025, Riyadh Front Exhibition & Conference Center.

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

15 October (Wednesday): Russian-Arab Summit.

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

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

24 October-1 November (Friday-Saturday): AlUla Wellness Festival.

26-27 October (Sunday-Monday): The Global Proptech Summit 2025, Mandarin Oriental Al Faisaliah, Riyadh.

27-30 October (Monday-Thursday): Global Health Exhibition, Riyadh Exhibition and Convention Center, Riyadh.

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

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

NOVEMBER

2 November (Sunday): Naming ASICS Innovation Pitch competition’s six finalists.

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

8-9 November (Saturday-Sunday): Del Monte Superleague Supercup, Jeddah.

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

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

22 November (Saturday): The Ring IV, ANB arena, Riyadh.

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

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

24-26 November (Monday-Wednesday): Metropolis Madinah Conference for civilizational capitals, King Salman International Convention Centre (KSICC), Al Madinah.

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

28-30 November (Friday-Sunday): UIM F1H2O World Championship, Jeddah.

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

DECEMBER

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

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

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

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

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

31 December (Wednesday): Cancellation of Fines and Exemption of Financial Penalties Initiative by the Zakat, Tax and Customs Authority (Zatca) deadline.

December: Made in Saudi exhibition, Riyadh International Convention and Exhibition Center, Riyadh

2026

JANUARY

1 January (Thursday): Electronic salary transfer via the Musaned platform becomes mandatory for all domestic workers in the Kingdom.

13-15 January (Tuesday-Thursday): Future Minerals Forum, King Abdul Aziz International Conference Center, Riyadh.

20 January (Tuesday): SuperReturn Saudi Arabia, Hotel Fairmont, Riyadh.

18-21 January (Sunday-Wednesday): Saudi Hospital Design and Build Expo, Riyadh.

26-27 (Monday-Tuesday): GPRC Summit, Riyadh.

26-28 (Monday-Wednesday): Saudi Franchise Expo (SFE), Riyadh Exhibition and Convention Centre, Riyadh.

26-28 (Monday-Wednesday): Real Estate Future Forum, Four Seasons Hotel, Riyadh.

27-28 (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh.

28 (Wednesday): Data Center Nation Riyadh, Riyadh.

28-30 (Wednesday-Friday): Jeddah International Travel and Tourism Exhibition (JTTX), Jeddah.

FEBRUARY

2-4 (Monday-Wednesday): Saudi Media Forum, Riyadh.

2-4 (Monday-Wednesday): Women Leaders Summit and Awards KSA, Riyadh.

3-4 (Tuesday-Wednesday): RLC Global Forum Annual Meeting, Riyadh.

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

11 (Wednesday) Digital Transformation Summit Saudi Arabia (DTS), Riyadh.

11-14 (Wednesday-Saturday): JeddaDerm, Jeddah.

13-14 February (Friday-Saturday): Jeddah E-Prix 2026, Jeddah.

MARCH

31 March (Tuesday): Zatca’s 23rd E-invoicing integration wave deadline.

APRIL

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

OCTOBER

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

Signposted to happen sometime in 2026:

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

Signposted to happen sometime in 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.

Signposted to happen sometime in 2Q 2027:

The Hail Region Water Networks Project is expected to be completed.

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