Industrial production volumes are down, but tourism is on the rise

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WHAT WE’RE TRACKING TODAY

THIS MORNING: The Rio de Janeiro iteration of Davos in the Desert begins today

Good morning, wonderful people, and happy hump day. Our apologies for being late this morning — we ran into tech gremlins, but they’re now back under control.

We lead this morning’s issue with the latest Industrial Production Index, which dipped in April as mining and quarrying activity declined during the month. Meanwhile, the World Travel & Tourism Council has a bullish outlook on the Kingdom’s tourism sector for the year and decade ahead, penciling in more job creation and tourist spending.

HAPPENING TODAY-

The Public Investment Fund’s FII Priority summit gets underway today in Rio de Janeiro and wraps on Thursday. The invitation-only event, headlined Invest in Dignity, will bring together government officials and senior business and finance executives to deliberate on key topics including renewables, AI tech, and biodiversity. Check out the event’s factsheet (pdf). The last such event was held in February 2024 in Miami, while the Asia iteration was held in Hong Kong in December 2023.

Newly-appointed Kuwaiti Crown Prince Sabah Khaled Al Sabah will touch base in Riyadh today, according to Kuwaiti state news agency (KUNA). No details were provided on his itinerary.

Saudi will play against Jordan tonight in the AFC FIFA World Cup qualifiers at Al Awwal Stadium in Riyadh at 9pm. The Green Falcons have already secured their spot in the next round as they sit at the top of their group with 13 points, followed by Jordan with 10.

WEATHER- We’re looking at another day of blazing heat: Riyadh will see a daytime high of 45°C which will drop towards 29°C at night. Makkah will see a windy weather with a daytime high of 44°C and a low of 32°C, with Madinah experiencing a similar weather with highs of 45°C and lows of 33°C.

PSAs-

#1- Workers employed by the private sector will be prohibited from working under the sun between 12pm and 3pm starting Saturday, 15 June until Sunday, 15 September, the Human Resources and Social Development Ministry said in a post on X. The midday ban is meant to protect workers’ health and safety amid rising temperatures.

#2- Saudi expats residing in Egypt for more than six months must obtain residency cards before a set deadline of Sunday, 30 June, the Kingdom’s Embassy in Cairo said in a post on X. Those who fall under the rule must register with the Egyptian General Administration of Passports, Immigration and Nationality, and are required to carry their residency cards at all times and present them to authorities upon request.

WATCH THIS SPACE-

#1- Foreigners could be allowed to set up law firms here soon: The Justice Ministry has made public draft amendments that would allow foreign law firms to set up shop here with branches that are wholly owned by foreigners, the proposed rules (pdf) showed. The amendments, which are now up for public consultation on the government’s survey platform Istitlaa, would allow these firms to provide legal advisory services and plead before courts through practicing Saudi lawyers. Public consultation runs until Sunday, 7 July.

The rationale: The amendment aims to lure in foreign investment and have more firms move their regional headquarters to Saudi. It also aims to develop the profession and raise the quality of offered legal services among others.

REMEMBER- More global law firms have been encouraged to open offices here after the government removed a requirement last year obliging the firms to work through affiliated Saudi law firms. At least six US and global law firms said they opened offices or obtained licenses to work here.

#2- The government has reportedly revived plans for the first USD 8 bn phase of Makkah’s planned metro project with updated feasibility studies by French engineering firm Systra, Meed reported, citing sources it says are familiar with the project. The updated studies will encompass transport planning and economic, financial and legal analysis, with plans to expand the metro service to other areas in the city. Plans for the project were reportedly delayed over budgeting constraints, however officials retracted statements in 2016 on lags as they stressed that the project was progressing.

A change in ownership: The project’s ownership has been transferred to the Royal Commission for Makkah City and Holy Sites from the Makkah Mass Rail Transit and the National Centre for Privatization.

REFRESHER- The government has embarked on a plan in recent years to revamp the transport system to help accommodate an influx of visitors and pilgrims. Last week, Al Madinah Region Development Authority invited interested companies to submit qualification documents for the design and infrastructure works of the planned bus rapid transit (BRT) system in Madinah. It is part of a plan to improve the city’s public transport system to help reduce traffic congestion during peak seasons and ensure access to safe transportation modes for residents and visitors. A metro service is also planned for the capital Riyadh.

#3- Ride-hailing app Uber is looking to introduce self-driving and eVTOL options in the local market, CEO Dara Khosrowshahi told Asharq Al Awsat during a visit to Riyadh. No further information was provided.

DATA POINT-

Tadawul’s market cap fell 5% m-o-m in May to SAR 10.2 tn, according to the latest Tadawul data. Saudi investors held 95.7% ownership in the market, while foreign investors held 3.8%, and GCC investors held 0.7%.

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THE BIG STORY ABROAD-

Enter Apple Intelligence, Apple’s shot at establishing itself as an AI player to be reckoned with in partnership with none other than OpenAI. Apple boss Tim Cook announced the “next big step” that will see the iPhone and Macbook maker integrate ChatGPT on its devices and reintroduce Siri as the virtual assistant it was originally promised to be. Check out Axios’ full rundown of what to expect coming to an Apple device near you soon here or watch the full WWDC24 keynote here.

Not everyone is thrilled though, including Tesla CEO Elon Musk who took to his personal venting platform X to say that he would ban Apple devices at his companies if the tech giant integrates OpenAI into its operating systems on the back of it being an “unacceptable security violation.”

And that includes Wall Street, which despite the mostly excited media hype around the announcement saw Apple shares falling nearly 2% on the Nasdaq yesterday.

While in our neck of the woods, hopes for a ceasefire in Gaza are building again with the UN Security Council giving its backing to a US resolution to end the 248-day-old conflict that has already claimed over 37k lives.

And over in Europe, it looks like Macron’s wager on a snap election is at risk of backfiring, with the nation’s first opinion poll following the announcement forecasting Marine Le Pen’s far-right National Rally coming in first.

CIRCLE YOUR CALENDAR-

The G7 Summit in which the Crown Prince is expected to take part is scheduled from Thursday-Saturday, 13-15 June in Italy’s Borgo Egnazia resort in Apulia. Talks are set to focus on AI, energy, and addressing opportunities and challenges in Africa, China, and the Mediterranean.

Norah — Saudi’s first film to screen at Cannes — will hit theaters at home and abroad starting Thursday, 20 June, state news agency SPA reported. It tells the story of an illiterate young orphan Norah, crossing paths with an artist called Nader, who moved to the village to be a school teacher. The encounter helps Norah unleash a passion for art and a better future.

Saudi Film Nights by the Film Commission will land in Australia this month with screenings of four Saudi films, state news agency SPA reported. Movie enthusiasts in Sydney and Melbourne can watch adventure movie Hajjan, short film Me & Aydarous, comedy film Alhamour H.A and animated short movie Saleeg between Wednesday, 26 June to Friday, 28 June.

Industrial production volumes decline in April

The Industrial Production Index (IPI) was down 6.1% y-o-y in April 2024, on the back of a decline in mining and quarrying activity — the index’s most-weighted component, according to a General Authority for Statistics (Gastat) report (pdf). The index analyzes survey data to show volume changes in industrial production across the Kingdom.

Activity in the mining and quarrying sectors — which accounted for 61% of the overall IPI — fell 14% y-o-y, driven by a reduction in oil output which was down to 8.9 mn barrels per day (bbl / d) in April.

IN CONTEXT- The Kingdom has voluntarily cut oil production by 1 mn bbl / d to stabilize the global market, in line with an OPEC+ consensus to slash oil output by a combined 3.7 mn bbl / d until October 2024.

Meanwhile, the sub-index for manufacturing climbed 7.7% y-o-y on the back of a 15.8% increase in food production and a 7.8% growth in chemicals production.

Some utilities are up, others down: The sub-index for electricity, gas, steam, and air conditioning supply activity grew 6.5% y-o-y, while that of the water supply, sewerage, waste management and remediation activity fell 2.8% on an annual basis.

On a monthly basis, the IPI rose 1.1% in April, with mining and quarrying activity up 0.1% m-o-m, while manufacturing increased 2.4%. Electricity and gas were up 2.8% m-o-m and waste management activity was up 4.9% m-o-m.

Saudi’s travel and tourism sector to contribute near SAR 500 bn to GDP this year

Saudi’s travel and tourism sector is set to contribute SAR 498 bn (c. USD 132.8 bn) to the Kingdom’s GDP this year, the World Travel & Tourism Council (WTTC) said in a statement. The WTTC expects the industry to “continue growing at pace” in 2024, creating 158k jobs to 2.7 mn. Spending by foreign tourists is expected to double to SAR 256 bn, with domestic tourists spending some SAR 155.2 bn.

2023 was a “record-breaking” year for Saudi’s travel and tourism industry, with the sector growing by more than 32% to contribute a record SAR 444.3 bn to the Kingdom’s GDP, accounting for 11.5% of the economy. The growth in the industry helped create 436k jobs, bringing the total number of people employed in the tourism industry to over 2.5 mn. Tourist spending was also on the rise, with spending by foreign visitors reaching a record SAR 227.4 bn, while local visitors’ spending grew 21.5% y-o-y in 2023 to SAR 142.5 bn.

A look at the next decade: The sector is expected to contribute SAR 836.1 bn to the Kingdom’s GDP by 2034 — equivalent to almost 16% of the economy, according to the WTTC. It sees the sector employing a total of 3.6 mn people.

REMEMBER- We have big tourism ambitions: The Tourism Ministry doubled its target for 2030 earlier th is year, hoping now to be host to 150 mn tourist trips after it hit its target last year ahead of schedule. The new 2030 target sees 80 mn by domestic travelers and 70 mn by international travelers. The ministry also launched last month a program to make it easier for foreign and domestic investors to get licenses for a range of activities, with fees and procedures pegged to the type and scale of operations in the hospitality sector. The government is investing some USD 800 bn into the tourism sector under plans to build new future destinations, including Neom, the Red Sea, Diriyah, and Qiddiya, among others.

THE REGIONAL OUTLOOK-

A positive outlook for the region’s travel and tourism sector: The WTTC forecasts the Middle East’s travel and tourism sector to continue its growth throughout 2024 to contribute USD 507 bn to GDP, according to the statement. The industry grew by over 25% to USD 460 bn last year.

Saudi royal could be part of a consortium buying Premier League’s Everton

We have a couple of sports stories coming out of the Kingdom this morning, including unconfirmed reports of a potential Saudi investment in Premier League club Everton, as well as Belgian goalkeeper Koen Casteels joining Al Qadsiah.

An unnamed Saudi royal and friends have their eyes on Everton: A consortium of international investors, which includes an unnamed Saudi royal, has emerged as the frontrunner to buy struggling Premier League football club Everton in a GBP 400 mn bid, reports BBC Sport.

The details: The consortium — led by Lebanese born and London-based businessman Vatche Manoukian along with a Saudi royal and affluent families from the US — is offering an all-equity bid that would not incur additional debt. They see the Toffees as a “sleeping giant” in the Premier League that could secure a spot “at the top of world football again.”

Some competition: British businessmen Andy Bell and George Downing are also in the running, alongside MSP Sports which had lent Everton GBP 158 mn. Other interested investors include Roma owner Dan Friedkin, Dell Technologies’ CEO Michael Fell and A-Cap’s CEO Kenneth King.

Saudi already has a presence in the English Premier League: A consortium led by the PIF completed in October 2021 its takeover of English Premier League side Newcastle in a USD 408 transaction.

IN OTHER SPORTS NEWS-

Belgium goalkeeper Koen Casteels will join Al Qadsiah until 2027, the Aramco-owned football club said on X. The club — which has recently joined the Saudi Pro League — will bring Casteels over as a freeagent, after playing for VfL Wolfsburg last season, according to Reuters.

New fines for failure to submit financial statements

Financial managers that fail to submit financial statements will incur fines ranging from SAR 4k to SAR 20k starting Monday, 1 July 2024, according to a new Commerce Ministry decree. Repeat offenders will see their fines increase by 50%.

Unlisted joint-stock companies:

Non-complying financial managers at companies with less than SAR 5 mn in capital will be fined SAR 15k;
Non-complying financial managers at companies whose capital is at SAR 5 mn or more will be fined SAR 20k;

Other companies:

Sole financial managers at companies with less than SAR 500k in capital will be hit with a SAR 8k fine. If the company has multiple financial managers, they will each incur a SAR 4k fine;
Sole financial managers at companies with SAR 500k or more in capital will incur fines of SAR 12k. Companies with multiple financial managers will see each of them incur a SAR 6k fine.

Aramco’s Wa’ed Ventures among backers of UAE fintech startup Stake’s expansion to Saudi

Aramco’s Wa’ed Ventures invests in UAE’s fintech startup Stake: Dubai-based proptech startup Stake raised USD 14 mn in series A funding that saw the participation of Aramco-backed VC fund Wa’ed Ventures to enter the Kingdom this year, according to a statement. The funding round was led by Middle East Venture Partners and saw participation from local leading family conglomerate Al Jomaih Holding, UAE’s Mubadala and US-based private investment platform Republic. Stake previously raised USD 8 mn in 2022.

The funds will help finance expansion to Saudi: Stake will use the funds to expand into the Saudi market to become the first platform to allow individuals outside of the Kingdom to invest in real estate here. The company also plans to use the funding to grow their pool of investors, introduce new investment opportunities to its users, and scale its team.

About Stake: Founded in 2020 in the UAE by Rami Tabbara (Linkedin), Manar Mahmassani (Linkedin), and Ricardo Brizido (Linkedin), the digital real estate investment platform is designed to facilitate investments from overseas investors into local real estate. It saw over 200 properties worth AED 355 mn sold through its app, and has amassed over 500k users, the startup said.

How does it work? The proptech company allows investors to purchase fractions of property, and earn income on a monthly basis, according to Techcrunch. The digital platform caps investments at 33% ownership in each property to spread out rental income across users.

What they said: “KSA is forecast to grow by 6% in 2025 making it one of the fastest growing G20 economies in the world. We want to give both our local and international users the opportunity to invest early and participate in that growth,” Stake cofounder & co-CEO Mahmassani said.

It’s not the only UAE proptech eyeing Saudi: Dubai-based Digital mortgage platform Holo recently closed a pre-series A round that will help it expand into the Kingdom and grow its presence across the GCC.

IN OTHER NEWS FROM STARTUP LAND-

#1- MSA Novo — an Abu-Dhabi-based emerging markets-focused venture capital firm — and King Abdullah University of Science and Technology inked an MoU that will see them partner up for “joint investment initiatives” and develop startup accelerator programs here at home, according to a statement. The agreement also includes facilitating access to research, mentorship, entrepreneurship education, and technology transfer.

#2- Educational startup Tahdirraised SAR 1.2 mn (c. USD 320k) in its inaugural pre-seed funding round from a group of angel investors, Waya reported. The funds will be channeled to fuel Tahdir’s expansion beyond Al Ahsa — where it currently operates — to other regions in the Kingdom

About Tahdir: Founded by Mohammed Al Doukhi and Khalil Al Haid, Tahdir provided automated tools for daily school and educational management to ensure educational integration between school and home. It serves 92 schools with more than 30k users on the platform.

Al Modawat reappoints Abdullah Al Yahya as chairman

The board of Nomu-listed Al Modawat Specialized Medical has reappointed Abdullah Al Yahya as its chairman, it said in a disclosure to Tadawul. It also reappointed Abdulaziz Al Yahya as CEO and managing director, according to the disclosure. The new board’s term runs for three years ending in June 2027.

Commentary on Saudi GDP growth leads the conversation

It’s a slow morning for the Kingdom in the foreign press with pundits weighing in on how a drop in oil activity is straining the Kingdom’s economic growth amid waning demand from Chinese and US clients coupled with globally high interest rates. “Contraction in GDP is really a story of oil sector restraint where Saudi Arabia is committed to voluntary cuts, getting the rest of Opec+ to do so…,” Ziemba Insights’ founder Rachel Ziemba told CNBC (watch, runtime: 3:52)

IN CONTEXT- Ziemba’s commentary comes as state statistics agency Gastast released its quarterly report on domestic economic performance which saw the economy contracting at a slightly slower pace in 1Q 2024 than initially reported on the back of a decline in oil activity.

We could be seeing more sovereign sukuk, gov’t asset sales and a shift towards local spending: “There is this real question about whether demand globally is going to pick up and if it doesn’t for oil — the kingdom’s greatest revenue source — then we’ll continue to see some asset sales and debt issuances as they try to continue the stimulus, and direct investments… The Kingdom is going to be more and more focused on investing at home and not so much investing abroad,” Ziemba said.

Aguas de Valencia wins contract to rehabilitate two wastewater treatment plants in Taif

WATER MANAGEMENT-

Aguas de Valencia to rehabilitate two wastewater treatment plants in Taif: PIF-owned National Water Company (NHC) awarded Spanish water unit Aguas de Valencia a SAR 555 mn contract to rehabilitate, operate, and maintain two wastewater treatment plants in Taif for 15 years, it said in a statement. The plants will have a treatment capacity of 147k cbm per day, the statement said, adding that the facilities will have a tariff level of SAR 0.67 / cbm.

All under one ambitious plan: The NHC has embarked on a plan since the start of the year to offer 113 existing treatment plants to local and foreign investors as it looks to rehabilitate its existing assets. The facilities being offered to the private sector have an overall treatment capacity of 2.4 mn cbm / d, according to the NHC. The plan comes under a strategy to open the sector to private investors to help achieve environmental sustainability.

INFRASTRUCTURE-

#1- Zatca wants the private sector to build residential projects, water treatment plants at land ports: The Zakat, Tax, and Customs Authority (Zatca) issued an invitation for two expressions of interest to set up residential buildings and water and sewage treatment plants at some of Saudi’s land ports under a PPP framework with the National Center for Privatization, it said in two separate posts on X (here and here). The residential buildings projects will be under a 23-year design, build, finance, operate, maintain, transfer scheme at nine land ports. It will see the design and construction of residential units and the upgrade of existing facilities. The wastewater treatment PPP features a 15 year contract with a similar project delivery method across ten ports.

What’s next: The deadline for submissions is set for Sunday, 30 June.

#2- An overhaul of Saudi’s TV and radio infrastructure: The Saudi Broadcasting Authority issued an expression of interest for a public-private-partnership project seeing the development and upgrade of TV and radio infrastructure in partnership with the National Center for Privatization, state news agency SPA reported. The project aims to develop infrastructure of television and radio towers across 143 sites under a 25-year rehabilitate, finance, operate, maintain and transfer contract. It aims to increase the number of high-quality broadcast TV and radio channels. Interested investors can submit their applications by no later than Sunday, 21 July.

#3- The Green Riyadh Project has kicked off the development of three major parks across a handful of neighborhoods in Riyadh, Saudi Gazette reports. The initiative entails planting over 585k trees in Eastern Riyadh, and raising the per capita rate of green spaces by 16x. No further information was provided.

DEBT WATCH-

#1- The Islamic Development Bank (IsDB) signed a USD 150 mn financing agreement for Tajikistan’s Rogun hydropower plant which will boast a total installed capacity of 3.6 GW when completed, the Jeddah-based multilateral lender said in a post on X. The funds will finance the construction of a 335-meter-high clay core rockfill dam on the Vakhsh River in the Rogun district. The dam will have six turbines generating 600 MW each.

The IsDB has emerged as a key backer for the project: Tajikistan’s government said in April that it secured USD 550 mn from the IsDB and other development institutions in the region for the megaproject. It said earlier this year that it needs USD 6.2 bn to complete the project which will help increase the Central Asian country’s energy production and ensure energy security.

#2- Tadawul-listed Wafrah for Industry and Development has obtained a SAR 50 mn Shariah-compliant credit facility from Riyad Bank, it said in a disclosure to Tadawul. The three-year facility will help finance the company’s working capital and pay off invoices.

HEALTHCARE-

State-owned Health Holding Company will add three health clusters to its portfolio in 2H 2024, it said in a post on X. The three clusters are located in Riyadh, Sharqiya and Qassim, with other clusters set to be transferred gradually based on their readiness over the next two years, it said. The transfer of the clusters comes under Health Holding’s plan to improve healthcare services across the Kingdom.

About the company: The state-owned integrated healthcare provider aims to turn “scattered” healthcare facilities across the Kingdom into accountable care organizations to meet healthcare needs in designated areas.

FINANCIAL SERVICES-

Sub-developers and contractors will have an easier time getting financial services from four leading local banks if they are referred by PIF-backed Roshn Group, after the real estate developer signed MoUs with Arab National Bank, Bank Albilad, Bank AlJazira and Riyad Bank, Roshn said on X. The four banks will provide sub-developers and contractors competitive margins and tailored credit facilities among others.

EDUCATION-

Nomu-listed education provider Academy of Learning signed a SAR 6 mn cooperation contract with training consultancy Bunyan to mark the “first step of several subsequent projects” between the two companies, it said in a disclosure to Tadawul. The contract spans five years, with the first phase running for 18 months. Details on the next phases are set to be determined at a later stage.

TECH-

Nomu-listed Naseej Tech was awarded a SAR 17.2 mn project from the Commerce Ministry to support the ministry’s digital transformation programs, it said in a disclosure to Tadawul.

AVIATION-

The Saudi Investment Bank (Saib) unveiled with flagship airline Saudia’s AlFursan loyalty program a product that allows users to earn reward miles monthly based on their average balance, according to a joint statement. The program, named “Travel Account,” will allow users to redeem their miles through Saib’s app.

What AlFursan said: “AlFursan is committed to strengthening relationships with our members by providing them with diverse and exclusive opportunities to earn miles and other unique benefits. The Travel Account further simplifies this process by allowing members to easily transfer their miles to AlFursan and redeem them for our extensive rewards program” said Essam Akhonbay, Vice President of AlFursan loyalty at Saudia.

ENTERTAINMENT-

Another water park: The Investment Ministry and the General Entertainment Authority signed an investment agreement with local entertainment company Nowaar to set up new entertainment and water parks across the Kingdom, it said on X. The inaugural water park agreed under the agreement is set to open its doors to visitors next year. The Investment Ministry did not provide details about the size of investments for the project.

REMEMBER- Saudi unveiled last month its first (and the region’s largest) water theme park Aquarabia. The park, which is a part of Qiddiya, will be home to 22 water games and attractions, including the world’s first double water loop and roller coaster with the highest jump among other record-breaking water games. It is set to complement Qiddiya’s Six Flags Theme Park.

Amid election surprises, EM investors are bullish on local debt

EM investors pivot towards local bonds: In the wake of election disruptions that have upended the “long-standing” positions of major developing economies’ bond markets, emerging market investors such as Ashmore and Ninety One are shifting towards buying local bonds and relative value currency securities, Bloomberg reports. France’s decision to hold snap elections, for example, sent the EUR to its weakest in a month.

Investors are liking the risk: “We’ve been increasing the frontier risk, through both local bonds and FX derivatives. We like the story in Egypt, we like some of the stories in smaller Latin American names. We’re trying to diversify and not load up,” Christine Reed, a portfolio manager at Ninety One told Bloomberg.

Election “surprises” have triggered the search for alternative return avenues, with the MXN — once favored for carry trades — currently losing investor favor after a bout of volatility following the elections, with concerns that potential economic reforms will increase the government’s influence in the economy. Meanwhile, the Polish PLN is gaining traction for its perceived insulation from political volatility.

Appetite for Turkey’s debt is also on the rise: In Turkey, the post-election economic overhaul, including the central bank’s aggressive rate hikes and investor-friendly policies, have sparked a surge in demand for local-currency assets, with foreign holdings of TRY-denominated bonds jumping tenfold in a year, reflecting investors’ confidence.

What are EMs’ selling points? “We see cleaner positioning as a positive technical factor, but more importantly for us is a country’s monetary and fiscal policy stance, and inflation and growth profiles. Otherwise, we are running the risk of picking up pennies in front of a steamroller,” says Valentina Chen, co-head of emerging-market debt at Mackay Shields.

MARKETS THIS MORNING-

Asia-Pacific markets are mixed on their return from a public holiday, with Japan’s Nikkei up 0.49%, while the Hang Seng is down 1.4% — seemingly unaffected by the rally over on Wall Street, which saw the Nasdaq and S&P 500 hit fresh highs yesterday.

TASI	11,854	0.0% (YTD: -1.0%)
MSCI Tadawul 30	1,487	-0.3% (YTD: -4.1%)
NomuC	26,768	+1.7% (YTD: +9.1%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	25,897	+0.9% (YTD: +4.0%)
ADX	8,990	+0.4% (YTD: -4.6%)
DFM	3,974	-0.2% (YTD: -2.1%)
S&P 500	5,361	+0.3% (YTD: +12.4%)
FTSE 100	8,228	-0.2% (YTD: +6.4%)
Euro Stoxx 50	5,016	-0.7% (YTD: +11.0%)
Brent crude	USD 81.63	+2.5%
Natural gas (Nymex)	USD 3.00	+3.3%
Gold	USD 2,328.60	+0.1%
BTC	USD 69,637.90	-0.1% (YTD: +64.8%)

THE CLOSING BELL: TADAWUL-

The TASI was flat yesterday on turnover of SAR 10 bn. The index is down 1.0% YTD.

In the green: Budget Saudi (+10.0%), Fitness Time (+9.3%) and Alarabia (+8.0%).

In the red: Acwa Power (-3.0%), Atheeb Telecom (-2.8%) and SNB (-2.3%).

THE CLOSING BELL: NOMU-

The NomuC rose 1.7% yesterday on turnover of SAR 53.4 mn. The index is up 9.1% YTD.

In the green: Future Care (+11.1%), Edarat (+10.2%) and Alqemam (+9.7%).

In the red: Miral (-8.4%), Leen Alkhair (-6.7%) and Knowledge Net (-6.5%)

CORPORATE ACTIONS-

#1- Our friends at Cenomi Centers will vote on paying SAR 178 mn in dividends for 1Q 2024 at SAR 0.37 per share, on Sunday, 30 June, according to a statement (pdf). The nation’s largest lifestyle centers operator has a dividend distribution policy which aims to maintain a minimum of SAR 0.37 dividend payout per share on a quarterly basis for 2024.

#2- Shareholders of Tadawul-listed Saudi Automotive Services (Sasco) approved the board’s recommendation to increase its capital by 16.7% to SAR 700 mn through a bonus issuance, it said in a disclosure to Tadawul (pdf). They also approved paying SAR 45 mn in dividends for FY 2023 at SAR 0.75 apiece, The distribution date was set for Monday, 1 July.

#2- Shareholders of Nomu-listed Al Modawat Specialized Medical approved the board’s recommendation for dividends of SAR 16.6 mn for FY 2023 at SAR 7 per share, it said in a disclosure to Tadawul. Eligible shareholders will be able to cash out on Sunday, 30 June.

ALSO- The healthcare provider said it received a license for its cardiac catheterization unit in the Tihama region, according to a separate disclosure.

#3- Tadawul-listed fast food franchise operator Alamar Foods saw five private transactions on 6.1% of its issued shares at a value of SAR 114 mn, Aleqtisadiah reported. The transactions were made at the price of SAR 73.3 — which is 4.2% below its trading price of SAR 76.5 — to mark the share price’s lowest level since it IPO-ed on the main market in 2022. Alamar Foods owns and operates popular US pizza chain Dominos across the Middle East, North Africa and Pakistan. It also owns franchise rights.

FM Bin Farhan holds talks with Russian counterpart Lavrov ahead of Brics ministerial meeting

Foreign Minister Prince Faisal bin Farhan met with Russian counterpart Sergey Lavrov on the sidelines of the Kingdom’s participation in the Brics ministerial meeting in Russia’s Nizhny Novgorod, according to a post by the ministry on X. The talks focused on regional and international developments and bilateral ties. The ministry said the Kingdom was taking part in the ministerial meeting as an “invited country” to join the bloc.

REMEMBER- Officials in Riyadh said earlier this year that the Kingdom is still considering an invitation to join Brics. The remarks in February came after South Africa’s foreign minister said the Kingdom had formally joined the alliance.

CALENDAR

JUNE

1-30 June (Saturday- Sunday): Monsha’at’s support meetings, Riyadh, Jeddah, Alkhobar, and Madinah.

13-15 June (Thursday-Saturday): G7 Summit, Italy.

14-22 June (Friday-Saturday): Banks and capital markets closed for Eid Al Adha holiday.

20 June (Thursday): Norah premiers in theaters.

28 June (Friday): Start of Jeddah Season 2024, Jeddah.

JULY

4 July-25 August: (Thursday-Sunday): Esports World Cup, Boulevard Riyadh City, Riyadh.

12 July (Friday): PFL MENA 2, The Green Halls, Riyadh.

10-11 July: (Wednesday-Thursday): Global EV & Mobility Tech Forum, Riyadh International Convention & Exhibition Center, Riyadh.

AUGUST

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

SEPTEMBER

10-12 September (Tuesday-Thursday): Saudi Sports Show, Riyadh.

10-12 September (Tuesday-Thursday): Global AI Summit, Riyadh.

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

17-19 September (Tuesday-Thursday): EV Auto Show, Riyadh.

18-19 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam.

18-19 September (Wednesday-Thursday): IDC Saudi Arabia CIO Summit 2024, Riyadh.

24-26 September (Tuesday-Thursday) Saudi Infrastructure Expo, Riyadh International Convention and Exhibition Center, Riyadh.

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

OCTOBER

1-3 October ( Tuesday-Thursday): Intersec Saudi Arabia 2024, Riyadh.

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh.

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

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

NOVEMBER

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

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

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

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

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

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

DECEMBER

1 December (Sunday): Opec+ to meet

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

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

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

Signposted to happen sometime in 2024:

The AFC Champions League Elite

2025

FEBRUARY 2024

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

2026

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

2027

The World Water Forum takes place in Riyadh.

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