Inflation cooled in December 2023 to lowest rate in more than a year

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WHAT WE’RE TRACKING TODAY

THIS MORNING: The first “real” day of Davos sees the Middle East in the spotlight

Good morning, friends. We have some welcome news on the inflation front for you this morning, with the latest from GSTAT showing prices rose at a slower pace in December. That makes it seven out of eight months that prices have gone up at a slower pace.

Also this morning: Lots of mining news, as the Future Minerals Forum continues to pay dividends, and Abha’s hospitality sector is in line for at least two upgrades with a new hotel and a contract that could see the over-capacity airport get a big upgrade.

^^ We have more on all of these stories below, in this morning’s news well.

But first:

The first “real” day of Davos is shaping up to be all about the region: World leaders, global banking and finance chiefs, the world’s brightest economists, Gulf bn’aires, and Wall Street giants have all descended upon Switzerland for the first full day of meetings at the World Economic Forum (WEF) 2024. Upcoming speeches by Ukrainian President Volodymyr Zelensky and EU Commission President Ursula von der Leyen are grabbing the attention of the global press, but there’s some important speeches by regional heavyweights we think you should also be paying attention to.

Follow closely this afternoon when Foreign Affairs Minister Prince Faisal bin Farhanwill take to the stage in a session entitled Securing and Insecure World at 3pm KSA, followed shortly by Finance Minister Mohammed Al Jaadan, who will speak on how to regulate non-bank financial institutions at 5pm KSA.Investment Minister Khalid Al Falih will take to the stage with several Gulf counterparts and private sector players to speak at a session entitled Gulf Economies: All In at 5pm KSA.

This evening: Communications Minister Abdullah Al Swaha will take to the stage to ask whether AI is the great equalizer it was promised to be. Commerce Minister Majid Al Kasabi will be on stage at 8:30pm KSA to discuss regulation of the service sector.

** You can watch select live sessions here and check out the full programme here.

YESTERDAY IN DAVOS- The Saudi Delegation met with WEF founder Klaus Schwab and the organization’s president, Borge Brende, the Foreign Ministry said on X yesterday. “They reviewed ways to enhance cooperation between the Kingdom and the World Economic Forum to address current and future pressing issues,” the statement read.

CLOSER TO HOME- Businesses no longer have to display their license + registration on the wall: The Saudi Business Center has unveiled a new service dubbed Unified Electronic Code, allowing businesses to take their legal certificates off the walls as they will now live on the web, the Saudi Gazette reported yesterday.

What are you talking about, Enterprise? Think framed tax registration certificates commonly displayed at your local grocery shop. This includes commercial registration data, municipal licenses, tax certificates, and civil defense permits. Try yourself by heading to the Saudi Business Center website here.

WEATHER- Prepare for a cloudy day in Riyadh, a ray of sunlight in Makkah around noon, and some wind traveling across Jeddah today. No rain or fog are in the cards.

Riyadh: 22°C daytime / 13°C overnight
Jeddah: 28°C daytime / 23°C overnight
Makkah: 31°C daytime / 19°C overnight

WATCH THIS SPACE-

#1- A multi-use stadium for anything and everything: Qiddiya Investment Company (QIA) unveiled the multi-use Prince Mohammed bin Salman Stadium where it plans to host major sports, cultural and entertainment events, including games at the 2034 Fifa World Cup, it said in a statement yesterday. The 45k-seat venue will also serve as the home ground of Al-Hilal and Al-Nassr. The QIA is wholly owned by the PIF.

What the hype is all about: The stadium, designed by global architectural firm Populous, is set to be the first venue globally to boast a combined retractable roof, pitch and LED wall, all while sitting atop a 200m cliff in Qiddiya. An eco-friendly cooling lake will be built directly under the stadium, with the lake using “rainwater capture from the stadium and the surrounding area to pre-cool the air conditioning system.”

QIA wants to change what “stadium” means: “The futuristic venue aims to reinvent the traditional stadium concept,” QIA Managing Director Abdullah bin Nasser Aldawood said.

#2-QuaraFinance has issued a prospectus back its planned sale of 2.65 mn shares on Nomu, good for an 8.8% stake in the company, Argaam reported yesterday. The bookbuilding process for institutional investors will run from Sunday, 4 February to Thursday, 8 February.

About the issuer: Founded in 2009, Quara is a consumer finance firm that provides financial leasing and alternative financing to SMEs, according to its website.

#3- A unified permit system for environmental investments is coming soon: The National Center for Environmental Compliance plans in Q1 2024 to unify permits for investments with environmental themes, Saudi Gazette reported yesterday.

#4- GASTAT wants its statistics game to be on point: The General Authority for Statistics (GASTAT) has launched the Comprehensive Economic Survey in a bid to enhance the Kingdom’s statistical data and business record, it said in a statement yesterday. It aims to provide more accurate statistics to update the base year in GDP.

SPORTS-

We’re all-in for Vamos Rafa: Rafael Nadal has been named as the new ambassador of the Saudi Tennis Federation (STF), the federation said in a statement yesterday. The role will see Nadal spending dedicated time in town each year to help grow the sport, with a focus on youth. A plan to set up a new Rafa Nadal Academy in the Kingdom is also in the works, according to the statement.

Another star signing for Saudi football? Atlético Madrid defender Renan Lodi is reportedly set to join Al-Hilal from Marseille on a EUR 20 mn contract valid until June 2027, sports journalist Fabrizio Romano said on X.

Anthony Joshua will go head to head against Francis Ngannou in a heavyweight boxing match in Riyadh on 8 March, according to organizers.

AND- Spanish Dakar Rally rider Carles Falcon has died a week after a crash in Saudi Arabia, and Green Falcons coach Roberto Mancini criticized national team players who left camp ahead of the Asia Cup on concerns they may not get enough playing time.

** You’re reading Zero Issue #29 of EnterpriseAM KSA.

** Think of a zero issue as a “beta.” This issue has not been published or distributed to a wide audience. The sponsor logos above are not correct because we’re still developing the new KSA template.

** Did you receive this as a forward? Email editorial@enterprisemea.com and let us know if you’d like to be added to our list of beta readers ahead of our launch.

** Have a comment, criticism, or story tip? Hit up patrick@enterprisemea.com.

DATA POINTS

#1-Local box office revenues rose 2% y-o-y to SAR 919 mn in 2023, Asharq Business reports. Some 17 mn tickets were sold last year — a 25% increase from 2022 — and 432 movies were released in 65 theaters.

#2- The Saudi passport is getting more powerful,jumping four spots to rank at 61st in the 2024 Henley Passport Index. Holders of the Saudi passport access 89 destinations without visas, according to the index.

THE BIG STORY ABROAD-

Republicans in Iowa have decided they’d like to see Donald Trump again seek the presidency under their banner.Caucus-goers are braving bone-chilling cold to meet in the first major contest of the 2024 election cycle.

Former US President Donald Trump has taken the caucuses, as expected. Both the Associated Press and CNN are projecting Trump will carry the state, meaning the fight is now down to whether former diplomat Nikki Haley or Florida Governor Ron Desantis will place second.

When will we know more? It depends, but near-final results should be in just after you open this email.

Where are the Democrats? They won’t be caucusing tonight after the party stripped Iowa of the right to run a caucus after counting issues in 2020. New Hampshire is running an unsanctioned primary next week and the first “formal” Democratic primary is South Carolina on 2 February.

Where can I get results? Check out live blogs from the New York Times and Wall Street Journal or the live results counter from Politico.

MUST READ: Who’s moving on from Iowa and who’s dead in the water? A viewer’s guide to reading the returns in Politico.

OH, AND… The Emmys are running as we speak, four months late thanks to the Hollywood writers’ and actors’ strikes. Liveblog here.

ON THE BUSINESS FRONT- No single story dominates as everyone looks to either Davos or Iowa. But near the top of the list: Instability in our corner of the world, as the world’s second-biggest LNG exporter skips the Suez Canal, the Houthis struck a US-flagged merchant vessel, and Iran’s Revolutionary Guards attacked what they said are Israeli “espionage centers” in Iraq.

CIRCLE YOUR CALENDAR-

The Dakar Rallycontinues through Friday, 19 January, with the final stage running from Yanbu to Riyadh.

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

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

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

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

Consumer price growth cooled in December 2023

Inflation cooled off to 1.5% y-o-y in December 2023, down from 1.7% in the previous month as residential rents rose at a slower pace, according to the latest General Authority for Statistics (GASTAT) figures (pdf). This is the lowest recorded rate in over a year. Inflation is now on a seven-month downward trend if you include the rise in November.

The usual suspect: rent. Housing rents were up 9% y-o-y in December, reflecting a 12.1% rise in the price of real estate. Restaurant and hotel prices were up 2.5% in December on an annual basis, while food and beverage prices rose 1.2%.

A treat for shoppers: Clothing and footwear prices declined 4% y-o-y in December — the sharpest decline amongst all items. This was followed by a 3.2% decline in the price of furnishing and household equipment, and a 1.3% drop in transport prices.

On a monthly basis, inflation was basically flat: Consumer prices fell 0.1% m-o-m in December, reflecting the 0.7% m-o-m bump in housing, water, electricity and gas prices compounded by a 0.4% m-o-m uptick in the price of restaurants and hotels.

In line with expectations: Capital Economics expected inflation to slow down to 1.6% y-o-y in December on the back of a drop in food prices, it said in a report on Sunday.

The outlook: Inflation is forecasted to continue cooling down to 1% y-o-y by mid-2024, according to Capital Economics’s report. While it’s possible we could see it tick up again in 2H 2024, it will cool again by the start of 2025, the report read. .

ANNUAL CONSUMER PRICES-

Average inflation came in at 2.3% y-o-y for the full year of 2023 driven by a sustained hike in the prices of housing, water, electricity, gas and other fuels, according to GASTAT’s latest annual average consumer price index (CPI) report (pdf).

That’s a bit slower than expected: While the IMF penciled in a 2.8% inflation for 2023, the Finance Ministry forecasted it to come at 2.6%.

PRODUCER PRICES-

Producer prices rose 3% y-o-y in December driven by a 31% surge in basic chemicals and 14% increase in dairy products, according to the latest GASTAT figures (pdf).

Consumer sentiment on Saudi banks has improved, but report finds there’s lots more to be done

Clients of the nation’s banks have mixed feelings about their experiences in key areas including customer experience and digital deliverability, a PwC Middle East and DataEQ report seen by Enterprise showed.

What’s the survey? Billed as the first KSA Banking Sentiment Index, it tracked and analyzed some 5 mn posts on X.

The report analyzed sentiment toward seven leading retail banks, includingAl Rajhi Bank, Alinma Bank, Al Bilad Bank, Riyad Bank, Saudi National Bank, Saudi Awwal Bank and Banque Saudi Fransi.

What went right last year: The report showed an 11.3% y-o-y uptick last year in net sentiment on the back of a 9.1% rise in reputational net sentiment due to factors including customer service initiatives, among others.

Where the banks fell short: Despite improved performance last year, the industry’s average net sentiment was down 0.8% due to challenges in all three net sentiment categories, including turnaround time to resolve issues, delays, and system outages.

What they said: “This index not only highlights the challenges facing the Saudi banking industry, but also outlines clear opportunities for transformation,” said Melanie Malherbe, Managing Director at DataEQ. She urged banks to embrace consumer feedback on social media so that they can “turn the tide of negative sentiment and pave the way for a future where consumer trust and satisfaction are at the heart of their operations.”

Saudi miller MC4 hires financial advisor as it seeks IPO in 1H

MC4 appoints Riyad Capital for planned IPO: The Fourth Milling Company (MC4) has appointed Riyadh Capital as a financial advisor for its initial public offering on the Tadawul, Bloomberg reported yesterday, citing sources it says have knowledge of the transaction. The offering could happen in the first half of the year, one of the sources said.

Little or no details: The sources said the size and timing of the IPO, which could raise over USD 200 mn, are still preliminary and could be subject to changes. MC4 has already picked Himmah Capital to advise on the potential listing, according to Bloomberg in October.

All part of a wave of privatization + IPO bonanza for the milling firms: MC4 is among several state-owned flour milling firms that were sold to the private sector by the government in recent years under its privatization scheme for the industry. Since then, the milling firms have sought share sales, with First Milling going public in May with a USD 266 mn IPO.

MC4 isn’t alone: Modern Mills Food Products Company plans to offer a 30% stake on the stock market in the first quarter of this year after receiving the greenlight from the Capital Markets Authority (CMA) in late December. Modern Mills was previously known as Milling Company 3.

EV Metals joins forces with Metso on a lithium plant in Kingdom

Metso + EV Metals to build lithium plant in Yanbu:Battery chemicals company EV Metals Group signed an agreement with Finnish industrial machinery company Metso to establish a lithium chemicals plant (LCP) in Yanbu Industrial City, according to a statement. The agreement was signed on the sidelines of the Future Minerals Forum last week.

The Kingdom has been working on strengthening its critical minerals supply chain: It signed with the UK an agreement in May to strengthen the global supply of critical minerals and prioritize the sustainable production of critical minerals essential to EV, wind turbine, and solar panel manufacturing. Saudi also inked 75 agreements with a total value of USD 20 bn at the Minerals Forum, including to launch a metals trading company aimed at shoring up iron ore, lithium, copper and nickel supplies from international markets.

EV Metals is already here: The battery chemicals company signed an agreement with the Royal Commission for Jubail and Yanbu last year to establish a facility to produce key chemicals for EV batteries and renewable energy storage. EV Metals Group is based in Australia but has offices in the Kingdom and the UK, according to their website.

The tech: Metso will deploy its leaching technology which is being used globally in LCP projects, including the Energy & Minerals Group ’s lithium refining subsidiary LiChem which is exploring developing lithium refining complex in Oman.

About Metso:Metso is a Finland-based industrial machinery company that focuses on mining, aggregates, recycling and metal refining industries. The company has a regional presence as it partnered with Ma'aden and Germany’s ThyssenKrupp to develop a carbon capture and storage complex in KSA.

Ajlan and Surefire Resources could partnering on a large-scale vanadium project spanning Saudi Arabia to Australia

Ajlan and Bros Mining and Metals (Ajlan) could invest in Australian mineral exploration company Surefire Resources’ vanadium mine in Australia and bring vanadium magnetite to Saudi for processing. The two said yesterday (pdf) that the non-binding memorandum of understanding relates to Surefire’s Victory Bore project.

SOUND SMART- Vanadium can be used to strengthen steel and is a key component of large-scale battery storage solutions. It’s also used as a catalyst, in medical implants, pigments, and the production of some basic chemicals.

Surefire already has a plan: The Australian company plans to produce c. 1.25 mn tons per year of premium vanadium-titanium magnetite concentrate at its Victory Bore project before it is shipped to the Kingdom. It aims to produce up to six products, including iron ore, high purity iron oxide pigment and others, using the concentrate at a processing facility in the Kingdom.

Expect the agreement to close over the summer: Both parties will conduct talks towards executing binding agreements on the potential JV and investment by Ajlan in July. Talks could be extended beyond the deadline by mutual agreement.

SMART POLICY- Surefire wants to access incentives in the Kingdom for mineral projects, according to the statement. “The Kingdom is a low power and utilities cost jurisdiction providing the company with significant operating cost advantages and has significant funding incentives available of up to 75% of capital expenditure for mineral processing projects,” it said.

Qatar pauses LNG shipments through the Red Sea

Oil and gas woes deepen amid Red Sea escalation: No fewer than five Qatari vessels carrying liquefied natural gas (LNG) making their way to the Bab El Mandeb strait have been stopped in their tracks since Friday, Bloomberg reported. Around 209 oil tankers — or 4% of the world’s oil fleet — have started rerouting away from the Red Sea over the weekend in the clearest example of disruption to the oil market since Israel’s war on Gaza began, according to Asharq Business, citing a note from Oil Brokerage

The bigger picture: While the Houthi group hasn’t purposely targeted any oil tankers since the onset of attacks in November, Qatar — the second largest exporter of LNG to Europe — likely views US and UK strikes in Yemen as the beginning of graver tensions in the Red Sea. The American and British navies jointly advised merchant vessels to avoid Red Sea transit following their attacks on Houthi positions.

This includes Qatar’s state-owned LNG carrier QatarEnergy, which is pausing Red Sea transits pending a security update, Reuters reported. “It is a pause to get security advice, if passing [through the] Red Sea remains unsafe we will go via the Cape … It is not a halt of production,” a senior source that the newswire says has direct knowledge of the matter said.

Market reax: Natural gas (Nymex) fell by 6.3% to USD 3.11 per MMBtu, while Brent crude inched down to 0.2% to USD 78.15 a barrel by the end of trading yesterday.

The shipping industry is still feeling the pressure: German shipping line Hapag-Lloyd decided to continue to reroute ships around the Cape of Good Hope for at least another week since it pulled its fleet from the fraught waterway in December, a statement from the shipping giant said. Shipowners group BIMCO also issued a statement yesterday highlighting the risks to shipping in the region that recommended “shipping companies to consider avoiding shipping operations in the area.”

But, the recent disruptions in Red Sea shipping have not triggered a shift to air freight for FedEx,Reuters reports. “Shipping over the ocean makes up 90% of global commerce, so even a small change would have an impact, but we haven't seen much yet,” FedEx CEO Raj Subramaniam said.

DEVELOPMENTS ON THE GROUND-

The Houthis targeted a US commercial vessel with an anti-ship ballistic missile, US Central Command (Centcom) said yesterday on X. The missile struck a US operated and owned container vessel dubbed the Gibraltar Eagle, with the ship continuing its journey without reporting injuries to crew or serious damage, Centcom added.

Matarat, NPC are lining up investors for Abha airport under privatization push

Matarat, NPC poll for investor interest in a new Abha Airport: The Saudi Civil Aviation Holding (Matarat) and the National Centre for Privatization & PPP (NCP) have called for expressions of interest for the new Abha International Airport project, they said in separate statements here and here. A request for qualification tender is expected to be released by 19 February 2024.

Why this matters: Abha Airport — the fifth largest airport in the Kingdom — is operating beyond its designated capacity of 1.5 mn passengers with 4.4 mn passengers annually.

Piqued your Interested? The project is being implemented on a build-transfer-operate (BTO) model with a concession period of 30 years, according to the invite posted on NPC’s webpage. Submissions will run until Wednesday 31 January 2024.

The new project will see to the development of:

A new passenger terminal building, with a capacity to welcome over 13 mn passengers per year — target date: 2028;
A new rapid exit taxiway on the airport’s current runway;
A new apron for the new terminal;
Access roads to the new terminal building;
A new parking area
Some supporting facilities, including an electrical substation expansion and a new sewage treatment plan, among other facilities.

The master plan for Abha airport project was unveiled in October 2023 by Crown Prince Mohammed bin Salman.

ICYMI- Abha is not the only one up for a tender:In April 2023, NCP had listed the airport among four new airport projects it intended to tender under the PPP model as part of a bigger pipeline of 200 privatization and PPP projects.

IN OTHER MATARAT NEWS- Matarat is unrolling its new bagless passenger services in the Kingdom: The service allows passengers to pre-ship their luggage to their destination to simplify travel-related-procedures, it said last week. The service will launch in the first quarter of this year.

IHG, Firdous Abha Hotel to open a new hotel in Abha

IHGunveils plans for a new 110-key hotel in Abha: Global hospitality player Intercontinental Hotel Group (IHG) has signed a franchise agreement with Firdous Abha Hotel Holding to open Hotel Indigo Abha, it said in a statement. The property could open as soon as December 2025. Hotel Indigo will be under the management of Dubai-based Aleph Hospitality. The commercial terms of the agreement were not announced.

Not the first announcement this month: The hospitality player is set to bring its hotel brand Voco & Suites to Jeddah, with the 110-key hotel set to open in September 2024, it said in a statement last week. The hotel is part of a management agreement signed with Dubai-based investment firm Rusd Capital.

About IHG Hotels: IHG Hotels & Resorts boasts a diverse portfolio of 18 hotel brands and 6k hotels globally. The hospitality player has 2k hotels and 292k rooms in the pipeline.

In numbers: The company’s bottom line rose 42% y-o-y to USD 376 in 2022, after incurring losses worth USD 260 mn in 2020. Its top line soared 34% y-o-y to USD 3.9 bn in 2022.

Neom awarded Italy’s WeBuild SAR 20 bn contract to build dams at Trojena

Neom has awarded Italian contractor WeBuild an estimated SAR 20 bn (USD 5 bn) contract to build dams for a planned artificial lake at its Trojena mountain resort, set to be a venue for the 2029 Asian Winter Games, Meed Reports.

Trojena? One of Neom’s latest developments,Trojena is a planned mountain destination that aims to become a year-round tourist destination with activities that include outdoor skiing, sports amenities, retail and dining facilities among others. It is slated to open its doors to visitors in 2026.

What we know: The primary dam, the cornerstone of the artificial lake, will have a crest length of 475 m and a height of 145 m. The second dam will be built within the lake to set up an island below water levels. A third dam will will be 65 m high and 490 meters long.

That’s not all for Trojena in recent months: Neom awarded in October a SAR 4.5 bn infrastructure contract at Trojena to local firm Al Ayuni Investment & Contracting and Turkish firm Limak Holding for the construction of tunnels, a freight depot, and excavation works.

EVIQ opens its first EV charging stations + Ma’aden crowned world’s largest low-carbon ammonia producer

ELECTRIC VEHICLES

EVIQ just opened its first EV charging stations in Riyadh: The Electric Vehicle Infrastructure Company (EVIQ) opened its first EV charging station in Riyadh’s business and leisure development Roshn Front, it announced on X yesterday. EVIQ is 75% owned by the Public Investment Fund and 25% owned by the Saudi Electricity Company.

EVIQ plans to expand in Riyadh, Jeddah and Dammam this year as a first phase by setting up stations on roads connecting main cities, its CEO Mohammad Gazzaz told Asharq Al Awsat. The expansion comes under efforts to deploy 5k fast chargers at 1k locations around the Kingdom by 2030.

GREEN AMMONIA-

Ma'aden recognised as world’s largest low-carbon ammonia producer:Ma'aden has been certified by Norway-based environmental assessor DNV as the largest producer of low-carbon ammonia globally, having produced 614k tons of it so far, according to a statement.

Ma'aden's been boosting its production: The company signed an agreement with US-based trading and logistics firm Trammo in May to deliver the first certified commercial blue ammonia shipment to Europe. It also exported its first shipments of low-carbon blue ammonia to China's Shenghong Petrochemicals in an agreement to supply 25k tons of ammonia.

TECHNOLOGY

#1- Sure Global Tech to revamp Shura Council’s IT infrastructure: Sure Global Tech was awarded a SAR 60.1 mn to upgrade tech and systems at the Shura Council, it said in a disclosure to Tadawul yesterday.

#2- Aramco Digital + Intel partner up for Kingdom’s first Open RAN: Aramco Digital — the digital and technology subsidiary of Aramco — plans to workwith Intel to set up the Kingdom’s first Open RAN development center, according to a statement yesterday. It is planned to start operations this year.

Open RAN?Open RAN, a widely used industry term for open radio access network architecture, allows for greater flexibility by permitting operators to combine equipment from various suppliers.

AVIATION

Air India Express is flying to Riyadh next month: Air India Express — a low-cost airline and subsidiary of India’s national carrier Air India — will operate direct flights connecting Hyderabad with Riyadh starting 2 February, according to Indian media. It will operate three weekly flights to Riyadh, expanding the airliner’s presence in the kingdom with existing routes Jeddah and Dammam.

INFRASTRUCTURE

Ladun Investment subsidiary to implement infrastructure for State Security: Built Industrial Company — a subsidiary of Ladun Investment — has landed a SAR 348.5 mn contract from the State Security Presidency to implement architectural, electrical and mechanical works for the security agency’s new building at the Naif Security Complex in Riyadh, it said in a disclosure to Tadawul yesterday.

DEBT

Osool & Bakheet converts BSF facility into a shariah-compliant arrangement: Asset manager Osool &Bakheet Investment inked an agreement with Banque Saudi Fransi (BSF) amending an existing credit facility into a shariah-compliant financing agreement worth SAR 50 mn, it said in a disclosure to Tadawul yesterday.

TELECOMS

Rawasi Al Bina receives SAR 4.6 mn purchase order for stc infrastructure: Infrastructure networks provider Rawasi Al Bina has received a purchase order from telecom giant stc for a SAR 4.6 mn project that would see it replace or upgrade the electro-mechanical equipment and various aspects of telecom infrastructure it said in a disclosure to Tadawul yesterday.

FINANCE

Tiqmo lands exclusive partnership with MasterCard:SAMA-licensed fintech player tiqmo inked an exclusive partnership agreement with Mastercard to issue prepaid cards in the Kingdom, according to a statement yesterday.

London slashes finance jobs

SIGN OF THE TIMES- London is shedding finance jobs, with openings in the field down 38% year-on-year in 2023. Total job seekers dropped 16% in the same period, according to a new report by staffing agency Morgan McKinley.

What they’re saying: “We haven’t seen a drop of this magnitude for a while. After a year of strong pay growth and over-hiring driven by a tight labor market, signs of a cooling market emerged as we approached the end of a challenging year,” Morgan McKinley UK chief Hakan Enver said.

Global banks slashed some 60k jobs last year — and fewer people are interested in applying for those positions that are still open.

What’s more, job seekers are moving for smaller bumps than a year ago. The average finance professional taking up a new post got a 14% bump in salary last year — down from 20% in 2022.

Asset manager GQG doubles down on Mideast stocks: Florida-based asset management firm GQG has built up stakes amounting to USD 2.8 bn in companies in the Middle East over the past 18 months, lured by “business friendly” government policies, plans to move away from oil, and “massive privatization hopes,” the Financial Times reported, citing GQG founder Rajiv Jain. Meanwhile, the company has cut its investments in China to roughly half that level amid a government crackdown on private sector activity.

ALSO WORTH NOTING-

China leaves key rate on hold: China’s central bank left interest rates on one-year lending facility loans untouched on Monday, disappointing investors who were expecting a rate cut. (Reuters)
Global banks poised for a major valuation surge: Boston Consulting Group's latest report showed that global lenders could increase their collective valuation by USD 7 tn within the next five years by prioritizing growth and productivity improvements, despite lower profitability and stiff competition from fintech firms. (Reuters){{

TASI	12,122.11	+0.5% (YTD: +1.3%)
MSCI Tadawul 30	1,578.77	+0.8% (YTD: +1.8%)
USD : SAR (SAMA)	3.75 Buy	3.75 Sell
Interest rates	6% repo	5.5% reverse repo
EGX30	26,251	+1.1% (YTD: +5.5%)
ADX	9,777.67	-0.1% (YTD: -.2.1%)
DFM	4,101.29	-0.1% (YTD: +1%)
S&P 500	4,783.83	+0.1% (YTD: +0.3%)
FTSE 100	7,594.91	-0.4% (YTD: -1.8%)
Euro Stoxx 50	4,454.68	-0.6% (YTD: -1.5%)
Brent crude	USD 78.15	-0.2%
Natural gas (Nymex)	USD 3.11	-6.3%
Gold	USD 2,059.00	+0.4%
BTC	USD 42,570.23	+1.3% (YTD: +101.4%)

THE CLOSING BELL-

The TASI rose 0.5% yesterday on turnover of SAR 8.7 bn. The index is up 1.3% YTD.

In the green: MBC Group (+9.9%), Mepco (+8%) and Aldawaa (+6.3%).

In the red: Acwa Power (-2.9%), Ataa (-2.7%) and Gasco (-2.5%).

Asian markets are mostly in the red this morning. Remarks by IMF boss Kristalina Georgieva are weighing on sentiment after she said yesterday in Davos that China needs to push for significant reforms or face “a fairly significant decline in growth rates.” Futures suggest stocks across western Europe and on Wall Street start the day in the red.

CALENDAR

JANUARY

14-17 January (Sunday-Wednesday): The International Exhibition for Construction and Building Materials (Saudi Projects), Jeddah.

14 January-24 February (Sunday-Saturday): Tuwaiq International Sculpture Symposium, Riyadh.

17-20 January (Wednesday-Saturday): Richard Mille AlUla Desert Polo 2024, AlUla.

19-20 January (Friday-Saturday): The Learning Beyond Conference, King Abdulaziz Center for World Culture (Ithra), Dhahran.

22-24 January (Monday-Wednesday): Real Estate Future Forum, Riyadh.

26 January (Friday-Saturday): Andrea Bocelli concert, AlUla.

26-27 January (Friday-Saturday): 2024 Diriyah E-Prix, Diriyah.

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

FEBRUARY

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

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

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

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

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

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

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

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

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

MARCH

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

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

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

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

Signposted to happen sometime in March:

Ramadan

APRIL

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

Signposted to happen sometime in April:

Eid Al-Fitr (national holiday)

MAY

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

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

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

5 June (Wednesday): World Environment Day.

Signposted to happen sometime in June:

Eid Al-Adha (national holiday)

AUGUST

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

SEPTEMBER

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

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

DECEMBER

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

Signposted to happen sometime in 2024:

The AFC Champions League Elite

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