Inflation remains unchanged at 2.3% in April

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: Syria’s World Bank debts paid up

Good morning, ladies and gents. We start you off with a packed issue this week, featuring the latest inflation data from Gastat, Hyundai’s first Middle East plant launched in King Abdullah Economic City, the world’s first AI-run clinic being piloted right here in Al Ahsa, and a flurry of debt markets updates and 1Q earnings.

Also in this morning’s news well: Neom confirmed the months-long rumors and tapped Aiman Al Mudaifer as CEO and Managing Director. Saad Alkroud was also appointed as head of the local real estate investment division at the PIF, while Maram Al Johani was named Acting Chief of Staff.

HAPPENING TODAY-

Flynas’s Tadawul IPO will wrap up its institutional bookbuilding and opens retail investors’ subscription today. Some 51.26 mn ordinary shares were up for grabs in the offering open to institutional investors, with a 20% clawback good for some 10.5 mn shares for retail investors provided there is sufficient demand.

ALSO- Qualified investors can subscribe to Al Kuzama’s Nomu IPO starting today, with a range from a maximum of 197.1k shares each and a minimum of 10 shares. The company is floating some 422.4k new shares, representing 10.7% of its post-IPO capital, with the subscription period wrapping up on Thursday, 22 May.

AND- The Global Project Management Forum kicked off yesterday and runs until tomorrow at the Fairmont Hotel in Riyadh. The flagship event brings over 120 senior industry speakers from over 100 countries to address the development of project management careers in the Kingdom.

WEATHER- It’s a hot day in the Kingdom with high temperatures expected all-round. Meanwhile, Riyadh, Najran, and the Eastern Province continue to face some wind and dust.

Riyadh is expected to see a high of 39°C and a low of 24°C today, while Jeddah’s mercury will go as high as 37°C and as low as 29°C. Makkah will see a 41°C high and 30°C low.

PSAs-

Companies whose fiscal year ended in 2024 must file their financial statements by 30 June through the Qawaem platform, the Commerce Ministry said, according to state news agency SPA. Failure to submit financial statements within 6 months from the FY’s end will result in financial penalties under the companies law.

WATCH THIS SPACE-

#1- PIF and BlackRock to expand Riyadh investment platform: The Public Investment Fund (PIF) inked a non-binding letter of intent with BlackRock Saudi Arabia to explore potential new investments through the BlackRock Riyadh Investment Management Platform, Al Arabiya reports.

The partnership includes the launch of a new investment vehicle tied to an index tracking the performance of Saudi equities. The agreement remains subject to regulatory and internal approvals, as well as the fulfillment of predefined conditions.

ALSO- The sovereign wealth fund signed a non-binding MoU with Northern Trust Asset Management to potentially launch a USD 1 bn investment mandate in the Kingdom, according to a statement. NTAM, which has worked in the region for over 35 years, will develop an index strategy and expand its asset management operations, following the opening of its regional headquarters in 2023.

ICYMI- BlackRock and Northern Trust join a number of US asset managers who entered into non-binding agreements with the fund last week, during the Saudi-US Investment Forum in Riyadh. The list includes Franklin Templeton, Neuberger Berman and ISquared Capital, targeting bns of USDs in investments into Saudi Arabia’s capital markets.

#2- Syria’s World Bank debts paid up: Syria’s USD 15.5 mn debt was cleared after Saudi Arabia and Qatar made full payments to clear its dues to the International Development Association (IDA), according to a statement from the World Bank.

The move, first announced last month, will allow the bank to resume operations in Syria after a 14-year suspension, unlocking access to vital financial aid to boost the country’s reconstruction efforts.

ICYMI- US President Donald Trump met with Syria’s new President Ahmed Al Sharaa in Riyadh, one day after Trump announced lifting sanctions on Syria. He framed the rapprochement as a courtesy to Crown Prince Mohammed bin Salman, who has been mounting a global campaign to shore up support for — and engagement with — the new government in Damascus.

#3- Lucid urges the Kingdom to implement tariffs on EVs: PIF-backed EV manufacturer Lucid Group held talks with the Saudi government on raising tariffs on imported cars, interim-CEO Mark Winterhoff told Bloomberg. The top executive discussed the tariffs as a temporary measure to “support local players” and avoid “the risk that you kill the industry in its infancy.”

The comments come at a time when the Kingdom looks to localize car manufacturing by developing a hub on the Red Sea coast in collaboration with Lucid and tire manufacturer Pirelli.

IN CONTEXT- The PIF has been actively investing in EV makers and the automotive value chain for some time as part of its diversification agenda. In addition to multiple investments in Lucid, the fund launched EV car maker Ceer in partnership with Taiwan’s Foxconn, and established a JV with Italian tire manufacturer Pirelli to develop a plant with a production capacity of 3.5 mn tires a year.

#4- Nomu-listed Aljouf Mineral Water Bottling is looking to make the move to the main market Tadawul, pending regulatory approvals, according to a disclosure.

What it takes: To move from Nomu to the main market, a company needs to meet stricter requirements. It must have a minimum market cap of SAR 300 mn and a solid financial track record of at least three years under consistent management. The company also needs to offer at least 30% of its shares to the public, have at least 200 public shareholders, and follow more rigorous financial disclosure rules.

Market reax: Aljouf share price increased 0.6% to SAR 1.8 apiece at Thursday’s close, according to market data.

#5- The Kingdom is stepping up efforts to attract high-frequency trading (HFT) firms to boost activity in Tadawul, Bloomberg reports, citing sources it says are in the know. Major US players like Citadel Securities, Hudson River Trading, and Tower Research Capital are expanding their presence as the exchange updates its derivatives framework, following the introduction of infrastructure co-location services and the establishment of an international relations division, the sources said to the business information service.

What is next? “We’re now in the process of developing the next phase of our co-location offering and expanding to target tier 2 and tier 3 HFTs,” Wamid CEO Yazeed AlDomaiki told Blooomberg. Meanwhile, the exchange operator is reaching out to investors in Asia, including Japan and India, to diversify beyond US and European firms.

#6- Alistithmar for Financial Securities and Brokerage received the green light from the Capital Market Authority (CMA) for the public offering of the Alistithmar Capital Parallel Market Companies Fund. The approval is valid for six months, with additional information set to be provided pending the publication of a prospectus.

#7- Turkish e-commerce platform WORLDEF is setting up a trade network between Riyadh, Dubai, and Istanbul, with its first Riyadh event planned for October, Turkey’s Anadolu Agency quoted CEO Omer Nart as saying. The aim is to make it easier for local sellers to reach international buyers, especially in fast-growing markets like the Kingdom and the Balkans, Nart said.

#8- Russia invited all Arab League member-states and its Secretary-General to the inaugural Russian-Arab Summit, set to be held on 15 October, according to a letter sent by the Kremlin to the Arab League summit being held in Iraq. The move aims to provide a platform to facilitate discussions on cooperation between the bloc and Moscow, as well as peace and stability in the MENA region. No further details were disclosed.

DATA POINTS-

#1- The PIF invested some USD 25.6 bn in Wall Street during 1Q 2025, down from USD 26.8 bn in 4Q 2024, Asharq Business reports, citing US Securities and Exchange Commission data. The PIF made 13 new investments and increased positions in Lam Research, Micron Technology, and Amazon during the period, while divesting from another 11 companies.

The PIF’s biggest tickets: The PIF’s largest investment targeted Uber Technologies with USD 5.3 bn at the end of March 2025, followed by its USD 4.3 bn investment in Lucid.

#2- The hotel industry in Jeddah saw occupancy rates rise by 21.1% y-o-y to 82.5% in April 2025, reaching the month’s highest level on record on the back of the Formula 1 Grand Prix, according to preliminary data from real estate analyst CoStar. Daily occupancy rate peaked at 96.5% on 20 April, and stayed above 70% on all but three nights during the month.

#3- Real estate transactions in the Northern Borders province grew 25.7% to 811 agreements in 1Q 2025, while their total value rose by 104.1% y-o-y to SAR 135.9 mn, according to state news agency SPA.

OIL WATCH-

Global oil supply is expected to swiftly rise by 1.6 mn barrels a day (bbl / d) this year, reaching an average of 104.6 mn bbl / d — up 380k bbl / d from previous forecasts, the International Energy Agency (IEA) said in its monthly report. The growth is expected to continue in 2026, with an additional 970k bbl / d — supported by Opec+ decision to boost supply by 310k bbl / d in 2025 and 150k bbl / d in 2026.

The IEA anticipates a slowdown in global oil demand to reach 650k bbl / d for the remainder of the year — down from 990k bbl / d in 1Q 2025 — driven by economic headwinds and record EV sales. Despite the slowdown, the agency expects average global oil demand to reach 740k bbl / d in 2025 and 760k bbl / d in 2026.

MEANWILE- Saudi Arabia is currently pumping below its limit (by 0.06 mn bpd), with 3.15 mn barrels per day of spare oil capacity ready to be released, the IEA added.

REMEMBER- Opec+ agreed on a 411k bbl / d increase for June, following a similar hike in April. The decision marks a sharp shift from the Kingdom’s usual price-support strategy, as it reportedly signaled readiness to endure lower prices for a longer period. The oil group is expected to approve a further 411k barrels a day (bbl / d) increase for July at its June meeting.

IN CONTEXT- Opec+ is still holding back nearly 5 mn bbl / d from the market, with many of these cuts set to stay through 2026. Although the group originally planned to phase out 2.2 mn bbl / d of voluntary cuts by September 2026, an accelerated timeline was agreed on in April. The combination of supply hikes and US trade tensions drove oil prices down below USD 60 a barrel in April, the lowest level in four years.

The story also got ink in Reuters.

SPORTS-

#1- Al Ittihad crowned champion: Al Ittihad defeated Al Raed 3-1 to clinch a 10th Saudi Pro League title on Thursday, with two matches remaining in the season’s fixture, SPL reports. The latest victory left the Jeddah-based club at the top of the table, establishing a nine-point lead over second-placed Al Hilal (71 points). The story also got ink in Reuters.

#2- The Saudi Toyota Championship Time Attack kicked off on Friday at Jeddah Corniche Circuit, with over 145 drivers competing in a race against the clock on a closed track, state news agency SPA reports. The championship includes three rounds, all held at the same circuit, with the next races scheduled for 30 May and 13 June.

Following the first round, Faisal Sufyan Alkabbani topped the overall ranking in first place, followed by Mamoun Amr Alkabbani in second place, and Faisal Saad Binladen securing third place, according to the Saudi Automobile & Motorcycle Federation’s post on X.

***You’re reading EnterpriseAM Saudi, your essential daily roundup of business, economics, and must-read news about Saudi, delivered straight to your inbox. We’re out Sunday through Thursday by 7am Riyadh time.

EnterpriseAM Saudi is available without charge thanks to the generous support of our friends at Tas’heel.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on saudi@enterpriseAM.com.

DID YOU KNOW that we also cover Egypt, the UAE, the MENA logistics and climate industries?

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM Saudi delivered every weekday.
***

THE BIG STORY ABROAD-

Most foreign outlets spent the weekend focusing on US President Trump’s blitz through the region. Trump inked USD 200 bn worth of commercial agreements between the US and the UAE during his last stop to the Emirates on Thursday. The new agreements, in energy, critical minerals, and — as expected — AI, bring the total investment ticket over his Gulf tour to USD 2 tn.

BUT- It’s not looking good on the home front: The US lost the highest credit rating there is, after ratings agency Moody’s downgraded its sovereign credit rating to Aa1, citing federal budget deficit and high debt costs.

Trump’s tariffs are also starting to weigh in on consumer prices: Walmart — the largest retailer in the US — announced it’ll raise prices, citing the added costs of tariffs. The announcement drew Trump’s ire in the form of social media posts that demanded the retailer “EAT THE TARIFFS” instead of passing them to consumers.

ALSO- The first direct talks between Russia and Ukraine in Turkey on Thursday did not go as planned, with Russian President Vladimir Putin skipping the talks and sending a delegation in his place, and Trump saying no agreement can be met until he sits down with Putin himself. The Donald said yesterday he will call Putin and Ukraine’s Zelenskyy tomorrow to discuss efforts to reach a ceasefire, as well as trade issues. (Financial Times | Reuters | CNBC)

AND- Crypto exchange Coinbase was hit with a cyberattack that it said could lead to losses of up to USD 400 mn. The exchange said it received threats from a hacker that it has sensitive client information, though Coinbase said no login credentials have been breached, but some data like names and addresses were stolen. (Reuters | CNBC | Bloomberg)

Inflation remains unchanged at 2.3% in April

Inflation once again came in at 2.3% in April, remaining unchanged from March, according to the General Authority for Statistics’ (Gastat) latest consumer price index (pdf). This keeps the Kingdom’s inflation reading at its fastest pace in nearly two years, with Saudi Arabia having maintained an upward trajectory in its inflation figures from August through January. December was the only month to log a decline during the five-month period.

On a monthly basis, consumer prices rose 0.3%, remaining unchanged from the previous month on the back of a 0.3% price uptick in the housing, water, electricity, gas, and other fuels category, a 0.4% rise in food and beverage prices, and a 0.4% increase in actual housing rent prices.

Rental prices were once again the main driver: Housing, water, electricity, gas, and other fuels — the heaviest component in the consumer basket — saw a 6.8% increase y-o-y. This was mostly driven by an 8.1% increase in rents paid for housing in April — itself caused by an 11.9% increase in apartment rental prices. This represents the lowest rise in rent inflation in over a year, with the rate of increase in housing rentals continuing its downward trajectory since the start of this year.

“Housing and utilities inflation eased to its softest pace since 2022. […] This is a potential sign that the Kingdom’s latest housing reforms to cap rents and increase housing supply are dampening housing cost pressures,” Capital Economics wrote in a note seen by EnterpriseAM.

Food and beverage prices were up 2.2% during the month, driven by a 9.4% rise in vegetable prices. Personal goods and services prices also rose by 3.5%, driven by a 21.9% increase in the prices of jewelry, watches, and precious antiques. Meanwhile, restaurant and hotel prices rose by 2%, which was attributed to a 2% rise in catering service prices.

Education prices also rose in April, rose 1.3% y-o-y, primarily driven by a 5.6% y-o-y rise in non-university post-secondary education.

Categories that were already on the decline continued to record drops in prices on an annual basis: Furnishing and home equipment prices fell by 1.8% y-o-y, driven by a 3.5% decrease in furniture, carpets, and flooring prices. Clothing and footwear prices also slipped by 1.2%, affected by a 2.1% decline in ready-made clothing prices. Meanwhile, transportation costs dropped 1.0%, attributed to a 1.8% decrease in vehicle purchase prices.

What the analysts are expecting: The International Monetary Fund (IMF) has recently cut its inflation forecasts to 2% both in 2025 and 2026 — but still up from 1.7% in 2024. The prediction for this year marks a slight upward revision of 0.1 percentage point from the fund’s previous forecast in December.

Meanwhile, Capital Economics sees inflation hovering around 2-2.5% y-o-y for much of this year, before falling back below 2% y-o-y as we head into 2026, which it said will be down to “weaker transport and housing and utilities inflation.”

WHOLESALE PRICE INDEX-

Producer prices rose by 2% y-o-y in April, driven by a 4.5% increase in the prices of agriculture and fishery products, as well as a 4.1% increase in the prices of other transportable goods (excluding metal products, machinery, and equipment), according to Gastat’s wholesale price index (pdf). On a monthly basis, wholesale prices rose by just 0.1% m-o-m, partly due to a 0.7% rise in the prices of agriculture and fishery products. The prices of metal products, machinery, and equipment also increased by 0.2% during the month.

Hyundai launches first Middle Eastern plant in Saudi Arabia

Hyundai launches its first regional manufacturing plant in Saudi: Hyundai Motor Manufacturing Middle East, a joint venture (JV) between the Hyundai Motor Company and the Public Investment Fund (PIF), inaugurated Hyundai’s first Middle Eastern manufacturing plant in the Kingdom, state news agency SPA reports. The plant, located in the King Salman Automotive Cluster within King Abdullah Economic City, is expected to attract USD 500 mn in investments.

The details: The plant will produce both internal combustion engine vehicles and electric vehicles, with production slated to kick off by 4Q 2026. The 500k sqm facility targets an annual output of 50k vehicles, Al Arabiya report, citing PIF’s Director of the Automotive and Mobility Sector Mohammed Al Sheiha.

The plant is projected to contribute some USD 5 bn to Saudi Arabia’s GDP by 2045, Al Arabiya said.

REMEMBER- The JV agreement to establish the highly automated plant was inked in October 2023, with the PIF holding a 70% stake, while Hyundai owns the remaining 30% and contributing technical and commercial expertise. The JV signed a SAR 175.7 mn ground lease agreement in decembet with Emaar, The Economic City to set up a vehicles and auto parts manufacturing and assembly plant in the Special Economic Zone of King Abdullah Economic City’s Industrial Valley.

The kingdom is doubling down on its automotive ambitions: PIF-backed Lucid has recently opened its first international facility in King Abdullah Economic City, with plans to produce up to 155k EVs annually. The PIF has also launched local EV maker Ceer in partnership with Taiwan’s Foxconn. In late 2023, the fund signed a USD 550 mn JV with Italian tire manufacturer Pirelli to build a Saudi plant with a capacity of 3.5 mn tires per year.

Saudi Awwal Bank, Bank Albilad, Aqaseem tap sukuk markets

Debt markets remain hot in the Kingdom, with Saudi Awwal Bank, Bank Albilad and Aqaseem closing sukuk issuances over the weekend.

#1- Tadawul-listed Saudi Awwal Bank (Sab) closed the private placement of a USD 650 mn additional tier-one (AT1) green sukuk offering, according to a disclosure. The USD-denominated offering featured 3.3k sukuk with an annual yield of 6.5%.

This is part of the lender’s USD 5 bn AT1 capital sukuk program, which aims to shore up its capital base. It’s unclear whether the issuance will be listed for trading on the secondary market.

SOUND SMART- Additional AT1 sukuk are shariah-compliant bonds that banks issue to increase their capital. This type of sukuk doesn’t have a set maturity date — meaning they can last forever unless the bank decides to buy them back.

ADVISORS- Our friends at HSBC were joint lead managers on the transaction alongside Merrill Lynch International, Citigroup Global Markets, JP Morgan Securities, Kamco Investment Company, Mizuho International, Standard Chartered Bank, and Warba Bank.

#2- Bank Albilad closed its inaugural USD-denominated Additional Tier 1 (AT1) sukuk issuance on Friday, valued at USD 650 mn, Zawya reports. The 5.5-year non-call perpetual mudaraba offering was priced at 6.5% — tightened from initial price thoughts in the 6.75% area — and attracted a final order book exceeding USD 2.5 bn (excluding joint lead manager interest).

The sukuk, issued under Bank Albilad’s existing USD 2 bn AT1 capital sukuk programme, will be listed on the London Stock Exchange’s International Securities Market.

ADVISORS-The bank enlisted our friends at HSBC as joint lead managers on the transaction, alongside Albilad Capital, Goldman Sachs International, and Emirates NBD.

#3- Nomu-listed Aqaseem Factory for Chemicals and Plastics saw its SAR 50 mn Series 1 sukuk issuance 216.7% oversubscribed, it said in a disclosure to Tadawul. The offering sld 50k sukuk at SAR 1k apiece.

ICYMI- The car oil manufacturer’s Series 1 public debt offering falls under a SAR 500 mn LCY borrowing program that received the Capital Market Authority’s approval in January.

The five-year senior unsecured sukuk carries a fixed annual return of 10% which is paid semi-annually and is redeemed at its full nominal value on 20 May 2030. Meanwhile, settlement and refunds for oversubscriptions are scheduled for Tuesday, 20 May. A Tadawul listing will follow once regulatory procedures are completed.

Proceeds will fund capex, working capital, and acquisitions of new facilities, the company said in a separate filing (pdf). The funds will be deployed through a mix of mudaraba — 51% of the nominal value at SAR 25.5 mn — with murabaha accounting the remaining 49%.

ADVISORS-The firm tapped Alkhair Capital as its lead arranger on the offering. Receiving agents include Al Ahli Capital, Al Rajhi Capital, SNB Capital, Saudi Fransi Capital, Riyad Capital, and Derayah Financial, among others.

Acwa Power signs USD 500 mn worth of agreements with US companies

Acwa Power signed USD 500 mn worth of agreements with US companies spanning solar energy, desalination, green hydrogen, and ammonia, according to a statement released on Wednesday. The agreements were signed on the sidelines of the Saudi-US Investment Forum in Riyadh during US President Donald Trump’s visit earlier this week.

#1- Green Hydrogen: Acwa is partnering with energy technology firm Baker Hughes to explore the potential production and testing of green hydrogen technologies, including electrolysis solutions and safety mechanisms for production.

#2- Ammonia: The company is also partnering with EPC company KBR on large-scale ammonia projects, but no further details were mentioned.

#3- Lower-carbon desalination: Acwa will work with energy efficiency firm Energy Recovery on exploring tech deployment to reduce energy consumption and increase efficiency in its water desalination projects.

#4- .. and solar: Acwa also said it is collaborating on solar ventures targeting the deployment of tracker technologies for solar PV projects to reduce energy costs and increase capacity, but it didn’t name which companies would be involved.

Dome Int’l for Investment prices Nomu IPO at SAR 42 per share

Dome International for Investment priced its Nomu IPO at SAR 42 apiece, according to a disclosure to Tadawul. The IPO is expected to generate approximately SAR 35.7 mn, while the market cap is estimated to hit SAR 245.7 mn, according to EnterpriseAM calculations.

Proceeds + market cap:The Riyadh-based school operator is floating some 850k new shares — 14.53% of its post-IPO capital. Around SAR 3.2 mn will be allocated to cover the offering expenses, while the remainder will go toward Dome’s future projects and expansion, with no proceeds going to major shareholders.

Qualified investors can book a minimum of 10 shares and up to 292.5k shares each, starting tomorrow and until Monday, 26 May. The final allocation of shares will take place on Sunday, 1 June.

The five major shareholders will see their ownership diluted to a combined 73.9% stake post-IPO, down from 86.46%, subject to a 12-month lock-up period from the first day of trading. Khaled Abdulaziz Al Turki Contracting will remain the largest shareholder, owning some 34.9% of total shares post-IPO.

ADVISORS- Watheeq Capital is quarterbacking the transaction as financial advisor, with Derayah serving as lead manager and RSM as accountant. Receiving agents include SNB Capital, Riyad Capital, BSF Capital, and Al Jazira Capital, among others.

About Dome International: Founded in 2015, the school operator owns and runs two K-12 schools in Riyadh that offer both international and national curricula. The firm also specializes in non-residential construction, including hospitals and hotels.

Saudi Arabia pilots the world’s first AI-run clinic

Chinese startup Synyi AI launched the first AI-manned diagnostic clinic in the Kingdom in April as a pilot program in Al Ahsa, Bloomberg reported on Friday. The project, developed in partnership with homegrown Almoosa Health Group, marks Synyi AI’s international debut.

How it works:

A virtual AI doctor — named Dr. Hua — independently diagnoses and prescribes treatments based on patients’ symptoms description via a tablet computer;
The AI-powered doctor asks follow-up questions and analyzes data like cardiograms and X-rays (taken with human assistance).
The application suggests a treatment plan to a human doctor who reviews and signs off without seeing the patient, though human doctors are on standby for emergencies.

Sign of the times: “What AI has done in the past is to assist doctors, but now we are taking the final step of the journey to let AI diagnose and treat the patients directly,” Synyi AI CEO Zhang Shaodian told the business news service. While AI is widely used in Chinese online health consultations, it’s mostly offered in a supporting role. Meanwhile, tools supporting independent AI consultations, such as Medlinker’s MedGPT, are not yet commercially available.

What’s next? The ongoing trial has served a few dozen patients for free with a human doctor present. AI diagnostic data is being collected for Saudi authorities to review, hoping to obtain commercial approval within 18 months.

The pros: Synyi AI claims the technology can significantly cut healthcare costs in expensive markets like Saudi Arabia while also benefiting remote and underserved regions, potentially increasing efficiency tenfold with a pre-trial error rate of less than 0.3%.

.. and the cons: Some medical professionals doubt AI can fully replace human doctors in the near term. Ngiam Kee Yuan from Singapore’s National University Hospital expressed skepticism, telling Bloomberg that advanced AI doctors still can’t perform at a primary practitioner’s level.

About Synyi AI: Founded in 2016, Synyi AI received backing from investors like Tencent, Hongshan Capital, GGV Capital, and local government funds. The company collaborated with over 800 medical institutions in China for AI-driven data management, diagnostic assistance, and research.

MSCI quarterly rebalancing includes seven fresh additions of domestic players across two EM indexes

Global index builder MSCI unveiled its upcoming quarterly balancing of the GCC standards and small-cap indices, with several high-profile inclusions slated to take effect after market close on Friday, 30 May. Saudi Arabia and the UAE emerged as the largest beneficiaries of the fresh index weight.

In the MSCI Saudi Arabia Standard Index, Jabal Omar Development and Makkah Construction and Development Company will be added, according to a statement (pdf). Both are big players in the Kingdom’s construction, real estate, and hospitality sectors and are closely linked to our tourism ambitions and urban development drive. None were removed.

Why it matters: Being added to an MSCI index basically means the company has met certain global standards for metrics, including market cap and liquidity, which puts it on the radar of international investors. It’s also a way for getting a stock picked up by global funds and ETFs, which could lead to stronger investor demand for the stock, giving the constituent more visibility and credibility in international markets.

The small-cap index will see five additions across the healthcare, energy, infrastructure, and consumer sectors, including Almoosa Health, Arabian Drilling, Knowledge Economic City, Nice One Beauty, and United International Holding, according to a separate statement (pdf). Meanwhile, Al Jouf Agriculture, Herfy Food Services, and Sinad Holding were removed.

The regional picture: Across the rest of the region, a total of five Emirati companies were added and none were removed, while a total of two companies in Oman were added and three were removed from both indices.

Al Akaria, Zamil, Kingdom Holding and more post 1Q results

ZAMIL INDUSTRIAL INVESTMENT-

Zamil Industrial Investment’s net income jumped 301.9% y-o-y to SAR 21.8 mn in 1Q 2025 on the back of a decline in financial costs and a strong operating performance across the AC, construction, and insulation sectors, it said in a disclosure to Tadawul.

MEANWHILE- Revenue rose 16.5% y-o-y to SAR 1.5 bn during the same period, driven by broad-based growth across key sectors, including 62% in insulation, 29% in construction, 20% in AC, and 7% in steel.

KINGDOM HOLDING-

Kingdom Holding posted a 119.9% y-o-y increase in net income to SAR 431.6 mn in 1Q 2025, driven by higher contributions from equity-accounted investees’ results and other net gains, in addition to lower costs — including zakat, financial charges, and G&A, it said in a disclosure to Tadawul. These gains offset a drop in investment property sale proceeds, finance income, and hotel revenues. Revenue rose 31.4% y-o-y to SAR 741.5 mn over the same period, thanks to higher dividend income, offsetting rising hotel operating revenues.

AL AKARIA-

Saudi Real Estate Company’s (Al Akaria) net income significantly rose to SAR 135.2 mn in1Q 2025from SAR 2.9 mn in the same period last year, according to its latest earnings release (pdf). This came on the back of a 794% increase in gross income from property sales and a similar 86% increase from infrastructure projects.

MEANWHILE- Revenue rose 46.9% y-o-y to SAR 628.1 mn during the quarter, driven by a 513% increase in property sales and an 8% increase in rental revenues.

SAUDI MANPOWER SOLUTIONS-

Saudi Manpower Solutions (Smasco) saw its net income rise 5.7% y-o-y to SAR 40.5 mn in 1Q 2025, driven by higher gross income and strong demand across core business segments, according to a disclosure to Tadawul. Revenue grew 4.3% y-o-y to SAR 497.9 mn during the quarter, supported by a 2% increase in the business sector and an 11% rise in the individuals sector, offsetting a 4% decline in other sectors due to fluctuations in secondary services.

AL YAMAMAH STEEL INDUSTRIES-

Al Yamamah Steel Industries posted a 28.1% y-o-y decrease in net income to SAR 21.9 mn in 1Q 2025, weighed down by lower selling prices and higher selling costs in the construction segment, according to a disclosure to Tadawul. Revenue rose 3.2% y-o-y to SAR 512.7 mn during the same period, supported by higher sales volumes and selling prices in the electricity and renewable energy sectors.

RED SEA INTERNATIONAL COMPANY-

The Red Sea International Company narrowed its net loss to SAR 4.5 mn in 1Q 2025, compated to SAR 12 mn in the same period last year, buoyed by higher sales and efficiency, according to a disclosure to Tadawul. Revenue rose 6.3% y-o-y to SAR 700.7 mn during the same period.

TANMIAH FOOD-

Tadawul-listed Tanmiah Food reported a net income of SAR 18.9 mn in 1Q 2025, slipping 10% y-o-y due to lower poultry selling prices and higher diesel prices and financial costs, it said in its latest earnings release (pdf).

Revenue rose 16.5% y-o-y to SAR 677.1 mn over the same period, on the back of higher sales volumes across poultry, animal feed, and health projects.

ALSO- Tanmiah’s BoD recommended the distribution of SAR 44.8 mn in dividends for FY 2024 at SAR 2.24 apiece, according to a disclosure to Tadawul. The distribution date is yet to be announced.

ARABIAN CONTRACTING SERVICES-

Outdoor advertising firm Arabian Contracting Services saw its net income drop 52.2% y-o-y to SAR 48.2 mn in 1Q 2025, due to Remat concession liability interests, according to a disclosure to Tadawul. In contrast, revenue increased 23.8% y-o-y to SAR 543.7 mn over the same period, boosted by advertising network expansion, ongoing digital transformation, and stronger advertising operations at King Khalid International Airport.

Neom taps Aiman Al Mudaifer as CEO, Managing Director

Neom appointed Aiman Al Mudaifer as its new CEO and Managing Director after serving as acting CEO for months, it said in a statement. Al Mudaifer sits on several boards of Public Investment Fund (PIF) portfolio companies and previously headed the local real estate division at the fund. He also held executive positions at Al Akaria, Shomoul Holding, and Al Andalus Real Estate.

IN CONTEXT- The decision came in line with previous expectations that Al Mudaifer, who was appointed as acting CEO in November 2024, would take on the role permanently following the departure of longtime chief Nadhmi Al Nasr. Neom has reportedly been subject to a comprehensive review under Al Mudaifer’s stewardship amid growing pressure to deliver results. This came as Neom projects face delays or downsizing amid lower oil prices and declining foreign investment.

To replace Al Mudaifer’s PIF role, Saad Alkroud (LinkedIn) was appointed as head of the local real estate investment division, the PIF said in a press release. Alkroud joined the PIF in 2016 and became Chief of Staff in 2021; now, he will oversee the fund’s local infrastructure investments, including gigaprojects.

ALSO- Maram Al Johani (LinkedIn) was named Acting Chief of Staff and Secretary General to the PIF Board of Directors. Al Johani, who joined the PIF in 2017 and most recently led the Data and Committee Governance and Advisory Department, will oversee strategic planning, project management, and portfolio company affairs, as well as international and local stakeholder relations.

US steers Saudi AI toward American tech, away from Beijing

Nvidia’s partnership with PIF-backed Humain to build a 500 MW AI facility on Saudi soil drew the foreign press’ attention to US policy shift on AI. Reuters portrayed the move as the Trump administration’s reversal of the Biden-era AI restrictions, granting the Kingdom greater access to US chips.

The Kingdom’s access to US AI microchips was limited under Biden’s AI diffusion rules, which was labelled as misguided by Trump’s administration, as there was no risk of sharing this technology with a “friend like Saudi Arabia” as AI czar David Sacks put it at the Saudi-US Investment Forum. The logic behind the policy shift is to keep interested buyers away from Chinese chips — which proved to challenge US chips under restriction-induced development.

The newswire flagged up the catch to this policy change, with US pressuring nations like Saudi Arabia to avoid Chinese AI technology. The Bureau of Industry and Security deemed the use of Huawei’s Ascend chips a violation of US export controls, aiming to boost US tech and limit China’s AI growth. The practical enforcement of this global restriction on Chinese chips remains to be seen.

BUT- Bloomberg alluded to the Kingdom potentially facing risks of underused AI infrastructure, mirroring past challenges in China. The centralized, top-down approach via Humain in developing AI services faces hurdles, chief among them is the shortage of local scientists, entrepreneurs, and skilled AI talent — alongside limited deep-tech expertise compared to global hubs, the business news service argued.

NHC + K. Hovnanian Partner on new housing projects

REAL ESTATE-

NHC partners with K. Hovnanian Homes: The National Housing Company (NHC) signed an agreement with US-based real estate developer K. Hovnanian Homes to develop residential and commercial projects in its urban areas, state news agency SPA reports. Signed at the Saudi-US Investment Forum, the agreement will see K. Hovnanian bring its experience to help deliver quality housing and commercial spaces in the Kingdom.

ICYMI- NHC sold over 16k housing units worth nearly SAR 15 bn during the first four months of 2025, a 101% increase from the same period last year.

ARTS-

The Saudi Film Commission is building Jax Film Studios in Riyadh, set to open later this year in an undisclosed “strategic location” in the capital city, state news agency SPA reports. The studios will extend over 7k sqm, featuring two 1.5k sqm sound stages, a virtual production unit, a private cinema, meeting rooms, and a VIP lounge, all equipped with advanced screen technology from Sony. The commission shared these plans during the 78th Cannes Film Festival, where they are currently showcasing Saudi cinema.

The Kingdom wants to be a silver-screen powerhouse: Saudi Arabia launched the Saudi Film Fund — the Kingdom’s first investment fund dedicated to cinema — in February in a bid to grow a local film industry and production infrastructure, as well as support content reflecting Saudi culture and values. Managed by Mefic Capital in collaboration with Roaa Media Ventures, the USD 100 mn fund is 40% owned by the state-owned Cultural Development Fund.

STARTUP WATCH-

Aramco-backed VC fund Prosperity7 participated in a USD 100 mn funding round for Las Vegas-based AI infrastructure startup TensorWave, according to a press release. Magnetar Capital, AMD Ventures, Maverick Silicon, and Nexus Venture Partners also participated in the round.

About TensorWave: Founded in 2023, TensorWave builds data centers primarily with AMD chips and currently operates an AI training cluster with over 8k AMD GPUs. The startup plans to use the fresh funding to expand its GPU clusters and team.

FINANCIAL SERVICES-

Consultancy firm Mahlan will now be able to operate as a securities advisor, after it received the green light from the Capital Market Authority (CMA), according to a statement from the CMA. The firm offers services in the fields of wealth management, investment planning, retirement solutions, and M&As.

MARITIME-

PIF-owned Folk Maritime added three new container vessels to its fleet, set for deployment starting June 2025, to serve routes along the Red Sea, Arabian Gulf, and Indian subcontinent, it said in a statement. The new vessels – M/V Folk Dammam (1,868 TEIJs), M/V Folk Yanbu (702 TEIJs), and M/V Folk Jubail (1,118 TEUs) – are all registered under the Saudi flag at Jeddah Islamic Port.

REMEMBER- Folk Maritime is lining up a multi-mn USD fleet expansion with plans to buy or charter 15-18 container ships in the next three to five years to increase access for the Kingdom’s smaller ports and alleviate demand for road transportation. Recent additions to the fleet include the 2k TEU Folk Jazan in April and the 1,868 TEU Folk Jeddah in September.

TRANSPORT-

NHC’s Balady launches the Balady+ smart city app: Balady, an NHC Innovation subsidiary, launched the Balady+ app (Google Play, App Store), which features an interactive 3D map with real-time information on roads, locations, and services across the Kingdom, state news agency SPA reports. The app also offers indoor navigation within commercial centers and issues alerts for speed bumps, obstacles, and road closures by integrating data from both government agencies and the local community.

REMEMBER- In January, the NHC launched its new digital arm, NHC Innovation, to manage its 10 digital platforms serving 20 mn users and handling 500 mn operations per year, with SAR 250 bn in financial transactions in 2024.

FOOD-

The General Food Security Authority (GFSA) issued its third wheat import tender for 2025, seeking 655k tons to be delivered between August and October, state news agency SPA reports. The shipments will arrive on board 11 vessels split between the ports of Jeddah, Yanbu, Dammam, and Jazan. The move aims to maintain the kingdom’s wheat stockpiles and meet the needs of local flour mills.

ICYMI- GFSA completed its first 2025 wheat tender in February, procuring some 920k tons on 15 shipments expected to arrive over this month and the next.

MANUFACTURING-

Al Watania for Industries inked a JV agreement with China’s Donghexin Group to build the first tinplate manufacturing plant in the region, situated in Ras Al Khair Industrial City, it said in a press release.

The details: The plant is slated to begin operations by mid-2027, seeking to produce an annual capacity of 400k tons — split equally between local and export markets. The project is also anticipated to create over 500 direct jobs and aims to localize the packaging sector’s supply chain to meet the increasing demand for metal packaging solutions in the region.

Moody’s strips US of last AAA credit rating on rising debt concerns

The last credit rating agency to hold out has finally pulled the plug. Moody’s downgraded the US’ sovereign credit rating by one notch to AA1 on Friday, citing mounting fiscal pressures and rising borrowing costs in an accompanying statement. The move means none of the Big Three agencies now rate the world’s largest economy at the top-tier AAA level, after S&P slashed the US’ credit rating back in 2011 and Fitch’s in 2023 downgrade.

The move was a long time coming, after Moody’s had flagged risks to the US fiscal position back in 2023 when it shifted the outlook to negative. The agency now says that rising debt, a widening budget deficit, and interest costs “significantly higher than similarly rated sovereigns” pushed it to take action. It projects the federal deficit will reach nearly 9% of GDP by 2035, up from 6.4% in 2024, driven by rising entitlement spending, weak revenue generation, and interest payments on a debt pile that now exceeds USD 36 tn. “While we recognise the US’s significant economic and financial strengths, we believe these no longer fully counterbalance the decline in fiscal metrics,” the agency said.

The final straw? A massive Republican tax-and-spending package currently making its way through Congress is widely expected to balloon the deficit even further, with estimates putting its potential cost at USD 4-5 tn over the next decade. That’s on top of an already unsustainable fiscal path, Moody’s warned. “Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs,” the agency said in its statement.

MARKET REAX- The ten-year US Treasury yield rose 5 bps to 4.49% on Friday. Analysts expect yields to keep rising as investors reassess the risk profile of US government bonds. “The downgrade may indicate that investors will demand higher yields on Treasuries,” Brandywine Global Investment Management’s Tracy Chen told Bloomberg.

The White House brushed off the downgrade, with White House Communications Director Steven Cheung targeting Moody’s Analytics chief economist Mark Zandi — who had no involvement in the report — saying, “Nobody takes his ‘analysis’ seriously. He has been proven wrong time and time again.” The administration insists its tax reform plans will raise growth and revenue and bring down the deficit in the long run. “Moody’s downgrade…should be a wake-up call to Trump and congressional Republicans to end their reckless pursuit of their deficit-busting tax giveaway,” Senate Democratic Leader Chuck Schumer said.

TASI	11,485	-0.4% (YTD: -4.6%)
MSCI Tadawul 30	1,463	-0.3% (YTD: -3.1%)
NomuC	27,841	-0.2% (YTD: -11.6%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	31,941	+0.4% (YTD: +7.4%)
ADX	9,654	+0.3% (YTD: +2.5%)
DFM	5,455	+1.1% (YTD: +5.8%)
S&P 500	5,958	+0.7% (YTD: +1.3%)
FTSE 100	8,685	+0.6% (YTD: +6.3%)
Euro Stoxx 50	5,428	+0.3% (YTD: +10.9%)
Brent crude	USD 65.41	+1.4%
Natural gas (Nymex)	USD 3.33	-0.8%
Gold	USD 3,187	-1.2%
BTC	USD 103,336	-0.3% (YTD: +10.6%)
Sukuk/bond market index	911.89	-0.1% (YTD: +1.1%)
S&P MENA Bond & Sukuk	143.4	+0.3% (YTD: +2.4%)
VIX (Fear gauge)	17.24	-3.3% (YTD: 0.6%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.4% on Thursday on turnover of SAR 5.3 bn. The index is down 4.6% YTD.

In the green: Miahona (+10.0%), NGC (+4.9%) and Smasco (+3.1%).

In the red: Zamil Indust (-10%), Alarabia (-8.2%) and Retal (-7.0%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.2% on Thursday on turnover of SAR 40.5 mn. The index is down 11.6% YTD.

In the green: FAD (+6.4%), Saudi Top (+6.3%) and Neft Alsharq (+5.7%).

In the red: Horizon Food (-9.6%), FADECO (-7.2%) and HKC (-6.3%).

CALENDAR

18 May (Sunday): Conclusion of the bookbuilding period for institutional investors in Flynas’ Tadawul IPO.

18-22 May (Sunday-Thursday): Al Kuzama’s Nomu IPO subscription period.

19-25 May (Monday-Sunday): Asas Makeen’s Nomu IPO subscription period.

19-26 May (Monday-Monday): Dome International’s Nomu IPO subscription period.

22-27 May (Thursday-Tuesday): Anmat’s Nomu IPO subscription period.

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

26-29 May (Monday-Thursday): Hawyia Auctions Nomu IPO offering period.

27-28 May (Tuesday-Wednesday): Aseer Investment Forum, King Khalid University in Al Faraa, Abha.

27 May-1 Jun (Tuesday-Sunday): Al Khaldi’s Nomu IPO subscription period

29 May (Thursday): 2024-2025 academic year ends.

30 May (Friday) King’s Cup final (Al-Ittihad vs Al-Qadisiyah), Al-Inma Stadium, King Abdullah Sports City, Jeddah.

JUNE

4-9 June (Wednesday-Monday): Hajj.

6-10 June (Friday-Tuesday): Eid Al Adha.

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

24-25 June (Tuesday-Wednesday): Tech-ecO-System Summit (ToSS), Riyadh.

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

JULY

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

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

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

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

AUGUST

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

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

SEPTEMBER

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

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

23 September (Tuesday): Saudi National Day.

OCTOBER

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

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

15 October (Wednesday): Russian-Arab Summit.

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

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

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

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

NOVEMBER

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

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

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

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

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

DECEMBER

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

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

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

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

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.

Sections

About

Privacy & Support

Get EnterpriseAM daily

Inflation remains unchanged at 2.3% in April

An independent publication supported by

Today at a glance

Get Enterprise daily

Related

This publication is proudly sponsored by

Related

Related

Related

Related

Related

Related

Related

Related

Related

Related

Related

Related

Related

CALENDAR

Related

An independent publication supported by

About

Privacy & Support

My EnterpriseAM

Sign in

Check your email! We've sent you a magic link to sign in.