Inflation at 1.9% y-o-y in 4Q 2024 -Sama

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Aramco to release 2024 earnings tomorrow

Good morning, wonderful people. We’re starting to feel the Ramadan slowdown this morning, with a light issue that features Sama’s latest inflation and banking sector data, as well as forecasts for the Kingdom’s renewable energy sector in 2025. We also spoke with First Mills’ CFO Alaaeldin Shousha, on the company’s challenges, successes, and future goals. Let’s dive in.

When do we eat? Maghrib is at 5:56pm today in Riyadh. You’ll have until fajr prayers at 4:55am tomorrow to finish your sohour.

WEATHER- ⚠️ Possible medium to heavy thunderstorms across most areas of the Kingdom until Thursday, including Madinah, Makkah, Jeddah, Al Taif, and Riyadh.

Riyadh: 20°C daytime / 8°C overnight
Makkah: 35°C daytime / 15°C overnight
Madinah: 26°C daytime / 10°C overnight

HAPPENING THIS WEEK-

Aramco is set to release its 2024 financial results tomorrow, according to its website. You can tune into the audio webcast of its earnings call here. Analysts expect Aramco's income to fall 8% y-o-y, along with an 11% y-o-y drop in revenues, with Aramco expected to carry on its “clear downward trend” as a result of current oil prices, Asharq Business reports, citing its chief financial analyst.

Aramco is expected to maintain its dividend payout at SAR 116.5 bn (USD 31.1 bn) for 4Q 2024, the same as the preceding three quarters, to bring its total dividends for the year to SAR 466 bn (USD 124.3 bn), reports Arabian Gulf Business Insight.

3Q snapshot: Aramco’s net income dipped 15.4% y-o-y to SAR 103.4 bn (USD 27.6 bn) in 3Q 2024, while revenues fell 1.8% to SAR 416.6 bn, with the oil giant attributing the drop in its bottom line to falling crude prices and weaker refining margins.

The five-day retail bookbuilding period for Umm Al Qura Development and Construction’s Tadawul IPO will kick off this Wednesday, 5 March to run until next Sunday, 9 March. Retail investors can subscribe to up to 2.5 mn shares with a minimum of 10 shares each. The final decision is set for Thursday, 13 March, with 13.08 mn shares reserved for retail investors.

ICYMI- The company priced its IPO at the top of its indicative range at SAR 15 per share, after the institutional tranche of the offering was 241x oversubscribed, raking SAR 473 bn in orders. The final pricing will see selling shareholders lock in some SAR 2 bn in total proceeds, giving the firm a market cap of SAR 21 bn at listing in what would be the biggest IPO on Tadawul so far this year.

PSAs-

#1- Registration for Ramadan I’tikaf at the Grand Mosque in Makkah and the Prophet’s Mosque in Madinah opens this Wednesday and will close once all the allocated spots are booked, the General Authority for the Affairs of the Two Holy Mosques said in a statement. I’tikaf will run for 10 days starting on 20 Ramadan (20 March). Registration will start at 11am on the authority's website.

#2- The subscription window for the March round of the government’s retail sukuk program Sah closes at 3pm tomorrow after kicking off yesterday, the National Debt Management Center said in a post on X. The instruments carry a yield of 4.98%, with a minimum subscription of SAR 1k and a maximum of SAR 200k.

#3- Local banks are barred from communicating with their customers through online messaging platforms, including WhatsApp, following instructions from the Saudi Central Bank (Sama), according to Asharq Al Awsat. Sama’s decision to bar banks from using these “unreliable channels” comes after a rise in social media fraud cases scamming victims into paying fees. Sama has instructed banks to explore alternative more secure channels — such as in-app chat services — while ensuring compliance with personal data protection procedures. It also mandated employee education and compliance assessments.

WATCH THIS SPACE-

#1- The on-demand delivery market in Saudi Arabia is expected to grow to SAR 50 bn by 2026, after hitting SAR 13 bn in value in 2023, Mr. Mandoob CEO Obaid Al Enezi told Asharq Business. The average order value also rose to SAR 77 in 1H 2024 from SAR 66 in 2023.

Driving the expansion: The sector’s growth is fueled by increased smartphone use, as well as the user base expanding to include children aged 10 to 12 as “active participants,” rising women’s workforce participation, and increased competition from new entrants like China’s Kita, according to Al Enezi.

Mr. Mandoob has big plans for 2025, including raising SAR 50 mn in its fifth funding round ahead of its planned Nomu listing this year, targeting a SAR 1.5 bn valuation.

#2- Bahraini investment manager Investcorp has c.USD 3 bn in investment dry powder for Saudi Arabia, the US, and Southeast Asia as it doubles down on real estate, infrastructure, private equity, and debt management, Global Head of Distribution Yusef Al Yusef told Al Arabiya.

Investcorp in Saudi: Within the Kingdom, Investcorp operates two investment platforms, one for infrastructure and the other for private equity in pre-listing companies. The firm also established a USD 1 bn fund, Golden Horizon, with the Chinese sovereign wealth fund to invest in Saudi private equity. Al Yusef highlighted ongoing talks with East Asian investors to attract capital for Saudi private equity.

#3- Watani Wealth Management, better known as NBK Wealth, lined up Capital Market Authority approval to list its sukuk fund on Tadawul, the watchdog said in a news release. As of now, there is no publicly available information on the specifics of Al Watani Sukuk Fund. Among NBK Wealth’s other investment fund offerings are Tadawul-listed Al-Watani Saudi Equity Fund, Watani USD Bond Fund, Watani USD Money Market Fund, and Watani Gulf Equity Fund.

#4- EGX-listed investment firm Egypt Kuwait Holding is set to announce its first oil and gas investment in Saudi Arabia within the next two to three months, after lining up most of the project’s capital expenditures, CEO Jon Rokk told Asharq Al Awsat.

DATA POINTS-

The Kingdom’s motorcycle imports rose 43.8% y-o-y in 2024 to 88.1k units, Aleqtisadiah reports, citing the General Authority for Statistics. Import value edged up to SAR 259.7 mn from 258.6 mn in 2023, fueled by growth in e-commerce, parcel delivery, and fast-food sectors, which heavily rely on motorcycle-based services. In addition, demand for high-spec motorcycles — some priced around SAR 350k — has been on the rise.

SPORTS-

An unnamed Saudi club made a EUR 10 mn bid for Barcelona’s Ansu Fati, El Nacional reports. No further details were provided.

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THE BIG STORY ABROAD-

Israel has deliberately blocked all humanitarian aid from entering the Gaza strip after the six-week ceasefire came to an end yesterday. The decision is broadly perceived as a means of exerting pressure on Hamas to agree with Trump’s Mideast envoy Steve Witkoff’s proposal to extend the first phase of the ceasefire agreement instead of moving on to phase two — which would see Hamas freeing the remaining hostages in exchange for Israel’s complete withdrawal from Gaza, paving the way for a lasting ceasefire.

“There will be no free lunches,” Israeli Prime Minister Benjamin Netanyahu said at a cabinet meeting yesterday. Seemingly bolstered by the new US administration, he insisted that a ceasefire won’t proceed without a hostage release. (Bloomberg | AP | The Guardian | Wall Street Journal | Washington Post | France 24)

MEANWHILE- After Zelenskiy’s diplomatic meltdown at the White House two days ago, European leaders have agreed to present the US with a Ukraine peace plan, hoping it will push Washington to offer security guarantees. At a London summit yesterday, British Prime Minister Keir Starmer announced a “coalition of the willing” to draft the proposal. (Reuters | AP)

ALSO- The 2025 Oscars just wrapped up — here are some of the most notable highlights:

Kieran Culkin won best supporting actor for A Real Pain.
Best animated feature went to Flow, marking Latvia’s first-even Oscar win.
Sean Baker took home best original screenplay for Anora.

Inflation at 1.9% y-o-y in 4Q 2024 -Sama

Saudi Arabia’s inflation reading inches up in 4Q: The Kingdom’s average Consumer Price Index (CPI) saw a 1.9% y-o-y increase in 4Q 2024, according to the Saudi Central Bank’s quarterly inflation report (pdf). The reading was up 1.7% y-o-y in 2024.

Rent is the main culprit: The rise in 4Q was attributed to an increase in the segment of housing, water, electricity, gas, and other fuels — mainly driven by a rise in housing rents. The segment recorded the highest y-o-y inflation rate among the Kingdom’s basket of goods and services, rising by 9.2% over the same period.

Why were housing rents so high? “This rise may be attributed to the growing domestic demand resulting from population growth in major cities, and the expansion in tourism and recreation activities, alongside slower housing supply, which contributed to widening the gap between supply and demand in the rental housing market,” according to the report.

More on the drivers: Miscellaneous goods and services came second at a 2.4% increase in 4Q, followed by restaurants and hotels at 1.4%, education at 1.1%, and food and beverages at 0.4%. Meanwhile, furnishings, household equipment and maintenance posted the highest y-o-y decrease, declining by 2.9% over the quarter.

Looking ahead: The Kingdom’s inflation reading is expected to remain stable in Q1 2025, driven by “slowing global inflation as a result of lower commodity prices (food and energy), in addition to rising housing rents and higher domestic demand in general, reflecting improvements in employment rates among Saudis,” the report reads.

REMEMBER- Inflation rebounded slightly to 2.0% y-o-y in January, up from 1.9% in December, in what marked a continued overall upward trend for the Kingdom’s inflation figures over the last five months. Capital Economics expects the Kingdom’s headline inflation rate to hover around 2% y-o-y until 4Q, before slowing back down towards the 1% mark. Meanwhile, the IMF sees inflation holding steady at 1.9% and 2.0% this year and the next, while the Al Rajhi Capital sees inflation remaining stable at 2.1% in 2025 before cooling slightly to 2.0% in 2026.

MEANWHILE- The Wholesale Price Index (WPI) increased 1.6% y-o-y in 4Q 2024, with transportable goods (except metal products machinery and equipment) logging the highest y-o-y increase at 3.5%, followed by agriculture and fishery products (2.4%).

Coffee with: Alaaeldin Shousha, CFO of First Mills

We sat down with Tadawul-listed First Mills’ CFO Alaaeldin Shousha (Linkedin) on the sidelines of the Capital Markets Forum in Riyadh, for a chat about the company’s challenges, successes, and future goals. Shousha delved into the company’s journey post-privatization, and what the market leader is now doing to expand its operations and market presence.

Edited excerpts from our conversation:

ENTERPRISE: Walk us through the changes that First Mills has undergone since its privatization and IPO a couple of years back.

Alaaeldin Shousha: Before privatization, First Mills was a strictly government-run business with a manual process and no formal corporate structure. It was essentially a non-profit agency. After the privatization, we embarked on a major transformation that spanned across all aspects of the business. From governance to operations, every element was revamped.

The time between privatization and the IPO was very short — only 18 months. This made the process incredibly challenging, as we had to simultaneously manage the transformation while preparing for a major public offering. Today, First Mills is a world-class company, with a highly engaged and structured management team and board, which I believe has been a key to our success.

We were the first milling company in Saudi Arabia to go public, and we continue to lead the industry with innovations like producing semolina from durum wheat. In terms of competition, we are the largest milling company in the domestic market by the number of branches, though we’re not yet the largest by capacity. However, that will change when our new facility in Jeddah becomes operational in June 2026. We are strategically located across the Kingdom, with mills in Tabuk, Jeddah, Qasim, and Ahsa. This extensive network gives us a significant logistical advantage, especially in terms of transportation costs and time.

We also lead in specialized milling capabilities, being the only company in Saudi Arabia that produces semolina from durum wheat, which is used in pasta production. Additionally, we offer customized flour products, such as pizza flour, which sets us apart from other players in the market.

Our ability to quickly adapt and lead in areas such as customized flour production and strategic mill locations gives us a distinct advantage. Most importantly, our commitment to operational excellence and growth makes us a true leader in the milling industry, and we’re just getting started.

E: First Mills’ CAGR over the past three years sits at around 10%. How do you maintain these growth levels in a commodity business?

AS: It's quite an accomplishment, especially considering we are in the commodity sector. The domestic milling market is growing at only 3-4%, yet First Mills has been able to capture market share and expand its customer base. Our growth is a result of strategic decisions, including expanding into the feed business, which has been a major enabler of our success. Additionally, our operational efficiency and larger production volumes have driven sales and further enhanced our market position.

We are the largest player in the flour market, holding a 29% share in the flour market, and we're growing steadily. The competition landscape is tough, with only a few major players in the industry. The barriers to entry are significant, as new companies would need licenses from the General Food Security Agency (GFSA), which currently does not allow new players to enter until 2030. This provides us with a secure market position for the time being, and we are focused on maintaining our leadership through continuous investment in infrastructure and innovation.

E: What is the company’s future plan in terms of new products and expansions?

AS:Diversification is definitely a key part of our future. We’re looking at increasing our product offerings and investing in capacity. Over the next two years, we have earmarked around SAR 210 mn for expansion, and we’re also planning for further diversification of our product range. Our feed business, which accounts for 30% of our total revenue, is a major area of growth. We also plan to increase our flour capacity and venture further into adjacent markets.

** ICYMI- First Mills plans to set up a SAR 123 mn flour milling unit in its Al Qassim plant. The new unit will boost the plant’s wheat milling capacity by 66%, or 600 tons a day, to 1.5k tons a day. Construction on the unit is expected to wrap up in 2Q 2026.

E: How is the company financing these expansions?

AS: We’re using a mix of debt and cash for our expansion plans. While we’re very cash-rich, thanks to the nature of our business being 90% cash-based, we have also secured financing from the Saudi Industrial Development Fund (SIDF). We took out a SAR 150 mn working capital facility in 2024, which has helped us reduce debt and maintain strong cash flow. Our debt-to-equity ratio stands at 1.3x, and we are exploring further financing options from SIDF for longer-term investments.

E: What are the company’s prospects in terms of international expansion?

AS:We’ve recently received a license to export flour, which is a significant milestone. Until November 2024, no milling companies in Saudi Arabia could export flour. Now, we are allowed to export up to 50% of our surplus capacity — that’s after covering domestic demand — to international markets, which opens new opportunities. We’re focusing on developing a proof of concept for the unsubsidized flour market, and expanding into exports is an important part of this strategy.

Saudi Arabia’s renewable energy capacity to double by year-end, surpassing 12 GW

Saudi’s renewables mix to double in 2025: The Kingdom’s renewable energy capacity is expected to nearly double to 12.7 GW by the end of this year from 6.551 GW currently, according to a report by Mees. Renewables capacity is also forecast to reach 16.5 GW in 2026, and 20 GW in 2027, the report said.

The pipeline: Six solar projects are set to come online this year by the summer as energy demand peaks, adding some 6.16 GW of renewable energy capacity. These projects include:

Ar Rass 2, with a capacity of 2 GW;
Al Kahfah, adding 1.43 GW;
Saad 2, with a capacity of 1.13 GW;
Henakiyah 1, adding 1.1 GW;
Tabarjal, adding 400 MW;
Wadi Al Dawaser, with a capacity of 112 MW.

All part of a bigger plan: The renewables push comes under Saudi Arabia’s National Renewable Energy Program (NREP), which aims to phase out oil burning to reach a 50/50 mix of renewables and gas by 2030. The Energy Ministry is targeting 20 GW of new capacity per year to reach 100 to 130 GW of output from renewable power by the end of the decade.

PIF is leading the charge: Under the NREP, 70% of capacity is managed by the Public Investment Fund (PIF) and built by homegrown renewables giant Acwa Power, while the remaining 30% is awarded through a tendering process. The PIF-backed solar PV capacity — amounting to 3.56 GW — accounts for 54% of the country’s total and is expected to reach 64% by the end of the year, according to the report.

REMEMBER- The Saudi Power Procurement Company also prequalified a total of 22 utility project developers — including national and international bidders — for the sixth round of wind and solar projects under the NREP in November.

Battery systems will be crucial: The report argues that ramping up investments in battery energy storage systems (BESS) is necessary to maintain grid stability due to the intermittency of renewable energy supply which relies on external sources such as solar or wind. BESS capacity is expected to reach 8 GWh — four times the current capacity — by year-end with the Kingdom targeting 48 GWh by 2030.

The regional angle: The Kingdom’s currently installed renewable capacity at 6.55 GW is the highest in the Mena region, with the UAE closely following at 5.8 GW, which is forecast to reach 6.6 GW by year-end. Saudi Arabia and the UAE had the biggest share of capacity expansion in the region in 2023.

Saudi banks’ lending surpasses SAR 3 tn in January 2025

Bank credit across all market segments grew 14.7% y-o-y to surpass SAR 3 tn in January, according to the Saudi Central Bank’s (Sama) latest monthly statistical bulletin (pdf).

The breakdown: Personal loans continued to account for the lion’s share (46.7%) of all credit handed out by local banks during the month, followed by corporate credit to the real estate sector, and financial and ins. activities.

IN CONTEXT- Saudi banks’ credit is projected to rise on the back of a heightened push for funding megaprojects coupled with a growing appetite for homeownership, according to a recent report from rating agency Moody’s. The firm sees the government’s wide-reaching economic transformation plans as providing ample business and lending prospects for the domestic banking sector.

Meanwhile, residential mortgages financed by banks hit SAR 10.5 bn during the first month of the year, up 38.8% y-o-y, with a total of 13.4k contracts. This includes SAR 6.6 bn for houses, SAR 3.4 bn for apartments, and SAR 475 mn for land contracts.

REMEMBER- Mortgages have led banks’ lending growth in the Kingdom over the past five years, S&P Global said previously. The banking system remains robust with profitability and stable dividend distribution backing capitalization throughout 2025-2026, S&P Global added.

Tadawul’s net income up 59.4% in 2024 + Al Hammadi, Retal, Al Rajhi Takaful report full-year earnings

TADAWUL GROUP-

Saudi Tadawul Group’s net income rose 59.4% y-o-y to SAR 621.8 mn in 2024 on the back of healthier returns from trading services, as well as post-trade and non-trading services, it said in a disclosure to Tadawul. Meanwhile, revenues increased 34.8% y-o-y to SAR 1.45 bn.

YEAR IN REVIEW- The group listed 58 new securities during the year, while the total number of listed companies and REITs stood at 353, according to its earnings release (pdf). The average daily traded value across its two markets amounted to SAR 7.5 bn, while market capitalization came in at SAR 10.3 bn.

Looking ahead: “Moving forward, our priorities are set on expanding our pool of regional and international investors, introducing cutting-edge financial instruments, fostering partnerships, and fully integrating sustainability into all aspects of our operations,” CEO Khalid Al Hussan said.

ALSO- Tadawul’s board recommended distributing SAR 402 mn in dividends for 2024 at SAR 3.35 per share, it said in a separate filing. The distribution date is yet to be disclosed.

AL HAMMADI HOLDING-

Our friends at Al Hammadi Holding saw their net income grow 11.7% y-o-y to SAR 338.8 mn in 2024, according to their latest earnings release (pdf). The increase was driven by non-recurring gains from a land sale in Riyadh, lower selling and marketing expenses, higher financing income, increased associate company gains, and a reduction in Zakat expense.

MEANWHILE- Revenues were down 1.9% y-o-y at SAR 1.15 bn due to lower sales from the Health Ministry’s referrals and reduced pharma sales from its subsidiary Pharma Serve, the release said.

In 4Q 2024, Al Hammadi Holding’s net income grew 19.3% y-o-y to SAR 77.7 mn, while revenues were up 6.3% y-o-y at SAR 322.8 mn, driven by expansions in medical services and pharmaceuticals.

Looking ahead: Al Hammadi plans to launch three new facilities by 2030, including its fifth hospital in Riyadh’s Al Mansiyah, acquired in November 2024. The company is also developing centers of excellence for advanced care and expanding capacity at existing hospitals. The expansion will be funded through a mix of banknote and loans, with plans to diversify funding as interest rates decline.

ALSO- The company’s board greenlit the distribution of SAR 56 mn in dividends for 4Q 2024 at SAR 0.35 per share, it said in a disclosure to Tadawul. The distribution date is set for 16 March.

RETAL-

Retal Urban Development’s net income grew 31.5% y-o-y to SAR 266.1 mn in 2024, driven by higher gross income and higher returns from equity-accounted investments, according to a disclosure to Tadawul. Revenues logged a record 50.9% y-o-y increase at SAR 2.1 bn, driven by a 56% rise in development contract revenues.

ALSO- Retal’s BoD is distributing SAR 55 mn in dividends for 2H 2024 at SAR 0.11 per share, it said in a separate disclosure. Distribution is scheduled for 15 May.

AL RAJHI TAKAFUL-

Al Rajhi Company for Cooperative Ins. saw its net income rise 1.3% y-o-y to SAR 332.3 mn in 2024, pushed by business growth as well as higher re-takaful claim recoveries, as well as higher return on investment, it said in a disclosure to Tadawul. On the revenue side, the company reported an increase of 27.3% y-o-y to SAR 5.4 bn during the same period, driven by growth in all its business segments.

THOB AL ASEEL

Men’s garments maker Thob Al Aseel Company reported a 9.1% y-o-y increase in net income to SAR 83.9 mn in FY2024, driven by higher collection rates, according to a disclosure to Tadawul. However, revenues declined by 1.83% to SAR 522.5 mn over the same period, pulled down by a lower sales volume.

ALSO- The company’s BoD recommended the distribution of SAR 40 mn in dividends for 2H 2024 at SAR 0.10 apiece, it said in a separate disclosure. Distribution is slated for Monday, 17 March.

Al Othaim Markets targets 51% stake in Manuel Market operator

M&A WATCH-

Al Othaim Markets eyes controlling stake in Manuel Market operator: Tadawul-listed food retailer Abdullah Al Othaim Markets inked a non-binding MoU with Al Musbah Group to acquire a 51% stake in Ebdaa Al Qasr Marketing — the brand operator of high-end supermarket chain Manuel Market, it said in a filing to the exchange. Ebdaa Al Qasr owns and operates 11 branches of Manual Market in Riyadh and Jeddah.

What we know: The value of the acquisition has yet to be disclosed as the transaction awaits share valuation, due diligence, and regulatory approvals. The MoU will be valid for 90 days.

MANUFACTURING-

Beam launches USD 40 mn CBoard-run facility expansion in Egypt: CBoard, a Cairo-based member of Saudi construction materials manufacturer conglomerate Beam, inaugurated the expansion of a cement board and wall manufacturing facility in the Sokhna Industrial Zone, part of the Suez Canal Economic Zone (SCZone), according to a statement from the Egyptian cabinet.

The details: The newly inaugurated expansion includes a cement board plant with a price tag of USD 25 mn and a gypsum panels manufacturing facility worth USD 15 mn, bringing total investments in the facility to USD 100 mn. Half of the company’s production is earmarked for export.

TECHNOLOGY-

AI Riyadh Charter receives unanimous approval by ICESCO: The Riyadh Charter for Artificial Intelligence in the Islamic World was approved unanimously at the Islamic World Educational, Scientific and Cultural Organization (ICESCO) Executive Council session held in Tunis last Friday, state news agency SPA reports. The charter was presented by Saudi Data and AI Authority (Sdaia) at the World Summit on AI held last September in Riyadh, aiming to establish a unified ethical and strategic framework to promote AI technologies, sustainable development, and international cooperation in compliance with Islamic values.

AVIATION-

Catrion + Flynas to offer iftar in the sky: Saudi-based Catrion Catering Holding signed an agreement with budget carrier Flynas to provide over 300k complimentary iftar meals to passengers boarding domestic and international flights during the holy month of Ramadan, according to a press release.

Investors look to emerging markets for tariff-safe assets

Investors seek assets safe from US tariffs: As US President Donald Trump’s tariff agenda continues to loom large, investors are looking to emerging markets as an option to hedge their investments safely away from developed markets threatened with trade levies, Bloomberg reports. Countries non-reliant on trading with the US — and with strong domestic stories and benchmark indexes — are now seen as a safer investment.

Different economies offer various domestic market strongpoints. China’s recent AI market disruptor DeepSeek, which rattled US tech stock earlier this year, triggered an investment surge in domestic companies using homegrown AI software. Dubai’s foreign worker influx boosted its benchmark index to a record high in February, while Latin American countries like Brazil are stepping in as alternatives to trade originally coming from Mexico.

Stable emerging economies pegged to the greenback are especially attractive as they enjoy the security that comes with a strong USD peg without being exposed to any foreign exchange risk, the business news information service quotes Cheyne Capital’s Carl Tohme as saying. The UAE, Saudi Arabia and Qatar were identified as prime examples. Government backing in many of these markets also provides another layer of security, it said.

This has been going on for a while: January saw “an emerging market buying spree,” with portfolio flows to emerging markets hitting USD 35.4 bn — the majority of which came from debt flows, signaling “investor preference for the relative stability of fixed-income instruments amid persistent geopolitical uncertainty, US monetary policy risks, and global economic headwinds,” according to an Institute of International Finance report cited by Reuters earlier this year.

This comes in stark contrast to European markets which recently took a hit after Trump threatened a 25% levy on EU imports, targeting vehicles specifically, the Financial Times reported. Major auto manufacturing players including Volkswagen and Ferrari saw their stock fall by up to 7.9%.

However, this reorientated focus isn’t completely foolproof — emerging market assets saw a slump at the end of last month, an indication that even those assets are not immune to the impacts of a potential tariff escalation, Bloomberg said.

MARKETS THIS MORNING-

Asian markets are in the green this morning, with Japan’s Nikkei leading gains at 1.09%, and Hong Kong’s Hang Seng trailing closely with a 0.65% rise. South Korean markets are closed for a public holiday. Meanwhile, on Wall Street, futures are up slightly as investors await more clarity on the US’ tariff plans this week.

TASI	12,035	-0.6% (YTD: 0.0%)
MSCI Tadawul 30	1,512	-0.2% (YTD: +0.2%)
NomuC	31,582	+0.6% (YTD: +0.3%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	30,858	+0.8% (YTD: +3.8%)
ADX	9,565	-0.5% (YTD: +1.6%)
DFM	5,318	-0.8% (YTD: +3.1%)
S&P 500	5,955	+1.6% (YTD: +1.2%)
FTSE 100	8,810	+0.6% (YTD: +7.8%)
Euro Stoxx 50	5,464	-0.2% (YTD: +11.6%)
Brent crude	USD 72.81	-1.0%
Natural gas (Nymex)	USD 3.83	-2.5%
Gold	USD 2,849	-1.6%
BTC	USD 94,072	+9.3% (YTD: +0.4%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.6% yesterday on turnover of SAR 3.5 bn. The index had no change YTD.

In the green: Saudi Cable (+5.8%), Elm (+4.2%) and Avalon Pharma (+2.0%).

In the red: Sal (-10.0%), Batic (-9.8%) and Al Baha (-7.3%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.6% yesterday on turnover of SAR 29.7 mn. The index is up 0.3% YTD.

In the green: Gas (+13.5%), Dar Almarkabah (+12.3%) and Fad (+7.6%).

In the red: Nbm (-9.9%), Meyar (-9.2%) and Fadeco (-8.1%).

CORPORATE ACTIONS-

The owner and operator Burgerizzr, Shatirah House Restaurant’s BoD recommended a 60% capital increase by way of granting bonus shares to the company’s shareholders, it said in a filing to Tadawul. The move, pending required approvals, will see the burger chain operator tap its retained earnings to bring its total capital up to SAR 56 mn, from the current SAR 35 mn, in line with its growth plans. The bonus shares will be distributed at a 3-for-5 ratio, meaning shareholders will receive 3 additional shares for every 5 shares they currently hold.

Saudi Fisheries Company reduced its capital by 83.25% to SAR 67 mn from SAR 400 mn, eliminating the company’s accumulated losses, it said in a disclosure to Tadawul.

Unitholders of Albilad Saudi Sovereign Sukuk ETF will receive SAR 231.2k in dividends for February 2025 at 0.03 a piece, according to a disclosure to Tadawul. Unitholders registered by Wednesday, 5 March will be eligible, with payments to be made within 10 days.

CALENDAR

MARCH

1-30 March: Ramadan.

5-9 March (Wednesday-Sunday): Retail bookbuilding period for Umm Al Qura for Development and Construction’s Tadawul IPO.

13 March (Thursday): Final allocation of shares for Umm Al Qura for Development and Construction’s Tadawul IPO.

18-19 March (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.

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

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

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

APRIL

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

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

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

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

14-16 April (Monday-Wednesday): Future Hospitality Summit, Mandarin Oriental Al Faisaliah, Riyadh.

18-20 April (Friday-Sunday): Saudi Arabian Grand Prix, Jeddah,

21-24 April (Monday-Thursday): Saudi Food Exhibition and Conference, Riyadh.

22-23 April (Tuesday-Wednesday): AAM Middle East, Riyadh.

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

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

28 April- 30 April (Monday-Wednesday): Automechanika Riyadh, Riyadh International Convention and Exhibition Center, Riyadh.

MAY

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

6-7 May (Tuesday-Wednesday): Federal Open Market Committee meeting.

12-15 May (Monday-Thursday): Saudi Smart Manufacturing, Riyadh International Convention & Exhibition Center.

13-14 May (Tuesday-Wednesday): Global EV & Mobility Technology Forum, The Arena, Riyadh.

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

23 May (Friday): Guns N’ Roses Show, Riyadh.

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

JUNE

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

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

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

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

JULY

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

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

29-30 July (Tuesday-Wednesday): Federal Open Market Committee meeting.

AUGUST

5-17 August (Tuesday-Sunday): Fiba Asian Cup.

SEPTEMBER

15-17 September (Sunday-Tuesday): Money 20/20 Middle East, Riyadh.

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

23 September (Tuesday): Saudi National Day.

OCTOBER

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

NOVEMBER

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

24-26 November (Monday-Wednesday) The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh Front Convention & Exhibition Centre, Riyadh.

27-30 November (Thursday-Sunday): The World Rally Championship (WRC), Jeddah.

DECEMBER

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

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

December: The Fortune Global Forum 2025, Riyadh.

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

2026

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

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

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

2027

The World Water Forum takes place in Riyadh.

The Ocean Race finishes in Amaala on the Red Sea.

Riyadh-Kudmi transmission line to be completed.

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