Modular Gigaprojects — and a 30-year timeline to rebuild Gaza

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: BlackRock to host “private” gathering in Riyadh -Bloomberg

Good morning, wonderful people, and welcome to a packed issue. Officials reassured investors yesterday that they’re not scaling back their gigaproject ambitions, though they hinted at the possibility that some see timelines stretched out, calling them “modular.” That’s in line with guidance from Finance Minister Mohamed Al Jadaan during last fall’s budget process, when officials could choose to pace-out components of some projects.

AND- We have updates on two Tadawul IPOs, including our first rundown on labor agency Smasco after the release yesterday of its prospectus.

^^ All of this and more in this morning’s news well, below.

THE BIG STORY here at home: Crown Prince Mohammed bin Salman said the Kingdom is working with its global partners to help “reach a resilient global economy,”state news agency SPA reported yesterday. He said Saudi has provided direct support and made investments in development to help promote economic and financial stability across multiple economies. His statements came during a special dialogue session at the World Economic Forum (WEF) special meeting in Riyadh.

^^ We have full coverage of the second and final day of the forum at the top of this morning’s news well, below.

BUT FIRST- On brand in so many ways: Foreign Minister Prince Faisal bin Farhan was spotted driving a Lucid-branded luxury EVwith his Egyptian and Jordanian counterparts on their way to a US ministerial consultative meeting for Gaza in Riyadh, Al Arabiya reported.

HAPPENING TODAY-

Sama regional meeting on reserve management wraps today: The Saudi Central Bank (Sama) is holding a high-level regional meeting on reserve management in collaboration with the Bank for International Settlements, state-run SPA reports. The meeting, held in Riyadh, kicked off yesterday and wraps up today.

Automechanika Riyadh opens today and runs through this Thursday, 2 May at the Riyadh International Convention and Exhibition Center. The annual trade fair will showcase the automotive industry’s latest advances and innovations.

Also today: The US Federal Reserve kicks off a two-day monetary policy meeting. By late tomorrow, we could be a bit wiser on where the Fed’s head is at right now on when it might start cutting interest rates.

WEATHER- Thundershowers in Riyadh and Al Taif are expected today with a high of 28°C and a low of 19°C. Makkah too with a high of 34°C and a low of 25°C.

WATCH THIS SPACE-

#1- US investment giant BlackRockis set to host a “private” gathering in Riyadh as the asset manager solidifies its footing in Saudi and the government continues to burnish the case it makes to foreign investors, Bloomberg reports, citing sources it says are in the know. The event — which BlackRock is hosting with the Finance Ministry — is set to highlight potential investments in the Kingdom for key corporate executives and regional investors. “There is significant interest from our clients in the many investment [possibilities] in Saudi Arabia, arising from the continued economic transformation in the Kingdom,” the business information service quotes a BlackRock spokesperson as saying.

Who we can expect to see: Public Investment Fund (PIF) governor Yasir Al Rumayyan and Energy Minister Prince Abdeulaziz bin Salman are set to speak at the event.. They will later join BlackRock CEO Larry Fink for talks on potential investments in Saudi, the sources told Bloomberg. Crown Prince Mohammed bin Salman could make an appearance at the private event, some of the sources said. It’s unclear when the event is due to take place.

REMEMBER- BlackRock is said to be on an “aggressive hunt for growth in Saudi Arabia,” with Fink coming to town multiple times per year. The firm’s 20-person Saudi team — the biggest among its peers and challengers — is “embedding itself in different parts of the country’s institutions and capital markets,” the business information service writes.

#2- Neom has invested some SAR 2.5 bn (c. USD 675 mn) to date in foreign companies, with most of the capital deployed focused on mobility technology, Asharq Business cites Neom Deputy CEO Ryan Fayez as saying at an event yesterday. They include a USD 175 mn investment in German flying taxi maker Volocopter and multiple rounds of funding from the Neom Investment Fund in hydrogen-electric aircraft developer ZeroAvia.

Neom is all-in on non-traditional mobility solutions: Volocopter’s eVTOLs will be essential to the mega city’s smart and sustainable multimodal mobility system, which will be fully powered by renewables. It is also building a USD 8.4 bn green hydrogen facility — slated to be the world’s largest of its kind.

#3- The Bill and Melinda Gates Foundation will set up a regional office in Riyadhunder a freshly-penned partnership with the Health Ministry, it said in a statement. The office will help implement a plan to eradicate polio in Pakistan and Afghanistan, where polio is endemic. Saudi has written a USD 500 mn ticket to push forward the foundation’s anti-polio drive. Separately, the Kingdom has earmarked USD 100 mn to support a development initiative that aims to reduce poverty in 33 of the least wealthy Islamic Development Bank member countries.

#4- Luxembourg-based air freight operator Cargolux has chosen Dammam’s King Fahd International Airport as its HQ for air freight operations in Saudi, Aleqtisadiah quotes Transport and Logistics Minister Saleh Al Jasser as saying. He did not provide further details on when operations would be launched or the fleet set to be used by Cargolux. Authorities are also planning to establish logistics freezones at Dammam and Jeddah airports similar to the one at Riyadh Airport, Al Jasser said.

#5- A Malta-flagged container ship was reportedly hit by three Houthi missiles while traveling to Jeddah from Djibouti, Reuters reports, citing British maritime security firm Ambrey. The United Kingdom Maritime Trade Operations agency confirmed the explosion near the vessel and assured safety of the crew, while Ambrey suggested the ship was targeted due to its operator’s trade relations with Israel.

#6- Sabic aims to convert 1 mn tons of waste into feedstock by 2030, Mubasher reported, citing statements by Sabic CEO Abdulrahman Al Faqih during a session at the World Economic Forum (WEF) special meeting yesterday. “We have adopted an alternative energy [source] from plastic waste, which we have used to begin manufacturing petrochemicals. We aim to have 1 mn tons by 2030,” he said. He highlighted Sabic’s commitment to sustainability, saying that the leading petrochem firm was able to slash its carbon footprint by 12.7% last year under a goal to reach net zero by the end of the decade.

DATA POINT-

Assets held by real estate investment trusts grew 34% y-o-y in value terms to SAR 164.2 bn in 4Q 2023, the highest level they’ve been at in 15 quarters, according to Aleqtisadiah data. The newspaper attributes the increase to the number of participants in the asset class reaching a record of 61.1k in 2023 — that’s 66% of the total number of people who have bought into any investment trust in the same period.

OIL WATCH-

Asian buyers may be looking at higher crude prices from the Kingdom in June, Reuters reports, citing traders. Saudi Arabia is reportedly mulling a USD 0.70-0.90 per-barrel hike that would bring the prices of most of its crude grades to a five-month high.

In context: The price hikes come as market supply remains tight, Reuters notes, with prompt prices exceeding futures. The traders Reuters surveyed expect official selling prices of Arab Light, Arab Medium, and Arab Heavy to spike, “supported by tight supply amid OPEC+ cuts and robust fuel oil margins.”

PSAs-

Taxpayers not yet selected for integration in the Zakat, Tax and Customs Authority (Zatca) electronic invoicing Fatoora portal will be notified six months in advance of a set period for their integration, Zatca said in a post on X. The e-invoicing rollout began in late 2021.

***
DID YOU KNOW that we also cover Egypt and the UAE?

THE BIG STORY ABROAD-

Gaza leads the front pages of the global business press, with hope rising in some quarters that an Egypt-brokered ceasefire agreement may be near.

Could fresh talks begin as soon as today in Cairo? Israel has reportedly agreed to send a team of negotiators, and Hamas said it is “studying” a ceasefire proposal, but hasn’t yet confirmed it will participate.

The downside risk: An unconfirmed report by Egyptian broadcaster Al Qahera News claims the Hamas delegation left Cairo overnight and will respond in writing to the proposal (watch, runtime: 0:22).

The hope: We could see something along the lines of a 40-day ceasefire in Gaza and the freeing of some Palestinian prisoners held in Israeli jails in return for the release of c. 33 Israelis held by Hamas. The exact details vary from report to report.

Antony Blinken sounded like a hawker in Khan El Khalili as he told Hamas to accept Israel’s “extraordinarily generous” offer, hinting it wouldn’t be on the table for long. The US Secretary of State is expected to leave Riyadh for Jordan and Israel, staying close to the region after meeting yesterday with Arab foreign ministers. Egyptian Foreign Minister Sameh Shoukry would say only that he’s “hopeful.”

The spin: Israel has “significantly softened” its stance.

Joe Biden put in calls to Egyptian President Abdel Fattah El Sisi and Qatari Emir Sheikh Tamim bin Hamad Al Thani to push forward the talks, while Secretary of State Antony Blinken met yesterday in Riyadh with Crown Prince Mohammed bin Salman. (We have more on Biden and Prince Mohamed in this morning’s Diplomacy section, below.)

MEANWHILE- US politicians are circling the wagons and threatening the International Criminal Court “with US retaliation” if it goes ahead with plans to issue arrest warrants for Israeli officials over the conduct of the war in Gaza. Some lawmakers are already preparing legislation that would make the sanctions real. The Biden administration has claimed the ICC doesn’t have jurisdiction over events in Gaza and said that arrest warrants could stop movement toward a ceasefire.

AND- At least 20 lawyers in the Biden administration are breaking ranks with the White House, calling on the president to block further arms shipments to Israel.

AWAY FROM GAZA- Worries are mounting about the chances of mass killing in Darfur. | Spanish Prime Minister Pedro Sánchez is not resigning. | The FT’s obsession with Chinese spies continues.

SIGN OF THE TIMES- All Dubai government entities will appoint chief AI officers as part of a new AI blueprint aimed at adding AED 100 bn from digital transformation to the emirate’s economy, according to an X post by Dubai Crown Prince Sheikh Hamdan bin Mohammed. The blueprint will also see the emirate introduce a comprehensive program geared towards attracting data centers, AI company licenses, as well as AI incubators, the crown prince said, without disclosing further details.

Day two at the World Economic Forum: modular gigaprojects and a 30-year timeline to rebuild Gaza

The World Economic Forum’s (WEF) special meeting in Riyadh wrapped up yesterday with top government officials, public figures and industry leaders talking about private sector activity in a fragmented world, non-oil growth in the midst of regional tensions, and cost-efficient energy policies in emerging markets. We have the full rundown on day two of the event headlined “Global Collaboration, Growth, and Energy for Development.”

GIGAPROJECTS ARE “MODULAR”-

More reassurances on Neom: Gigaprojects will be delivered at their intended scale in a way that satisfies the market and investors — and ensures optimal economic growth for the Kingdom, Economy and Planning Minister Faisal Alibrahim told Bloomberg (watch, runtime: 7:49) amid reports of a slower buildout of Neom. Nodding to the significant investment the projects would require, he said the government is being cautious not to “overheat” the economy to fund the projects. “We don’t want to deliver these projects at the cost of importing too much against our own interests,” he said.

“All projects are moving full steam ahead,” Alibrahim said. “We set out to do something unprecedented and we’re doing something unprecedented and we will deliver something that is unprecedented,” he said. “For Neom, the intended scale is continuing as planned. There is no change in scale, it’s a long-term project that’s modular in design,” he said.

STRONG SAUDI = STRONG MIDEAST-

Geopolitical tensions are not directly impacting Saudi growth or transformation plans, Alibrahim said. “But we are now more integrated into the global community. We don't want things that are happening in Europe or anywhere in the world or in the Middle East to impact that. If we continue our journey with this transformation, we will be in a stronger position to help the region around us. A stronger Saudi is a stronger Middle East. A stronger stable Middle East is better for the global economy,” he said.

IN CONTEXT- Finance Minister Mohamed Al Jadaan said earlier this week that geopolitical tensions are endangering the global growth outlook explaining that “geopolitical risks are possibly the number one risk as you look at the global economy.”

A growing non-oil sector would help accelerate its diversification strategy, Alibrahim told CNBC (watch, runtime: 5:41). “Our non-oil growth has been growing steadily with 5.9% in 2022 and 4.4% in 2023. The IMF is forecasting 5.0% and 5.1% this year and the next. We believe this will help us continue our diversification story in an accelerated format” he said. The non-oil economy accounted for 50% of total real GDP last year, he said, a new high water mark.

A VISION POST-2030?

But what comes after Vision 2030? “This is a long term journey. Vision 2030 is a blueprint for us to accelerate diversification, kick up human capital development, and build strong institutions,” Alibrahim told Bloomberg. When asked whether there would be a blueprint beyond 2030, he said “yes.”

30 YEARS TO REBUILD GAZA-

“It will take 30 years to rebuild Gaza, 15 years potentially just to remove the rubble,” Foreign Minister Prince Faisal bin Farhan said in a separate panel titled “Middle East under stress” (watch, runtime: 52:20). “And that’s just the physical infrastructure, nevermind the tremendous trauma that has now been formed in the civilians of Gaza that is now impacting civilians in the West Bank,” he said. He stressed the necessity of a “credible pathway to a Palestinian state” to “be able to talk about a sustainable pathway to stability and security for Israel.”

US SECURITY PACT “VERY, VERY CLOSE”-

Saudi “is very, very close” to finalizing a security pact with the US, bin Farhan said. “Most of the work has already been done. We have broad outlines on what needs to be done on the Palestinian front…It needs to be truly a credible, irreversible path to a Palestinian state.” His statements come after US Secretary of State Antony Blinken said earlier that the agreement between Washington and Riyadh is “potentially very close to completion.”

The agreement sees Saudi and the US working together on bilateral defense, military commitments and nuclear technology in exchange for a Saudi-Israel normalization accord. “To move forward with normalization, two things will be required: calm in Gaza and a credible pathway to a Palestinian state,” Blinken said. It has been in jeopardy since the Israeli war against Gaza broke in October.

A “REALISTIC” ENERGY TRANSITION-

There’s an urgent need for a “realistic energy transition program that is just and inclusive and includes everybody,” Aramco CEO Amin Nasser said in a separate panel, “The business case for the energy transition” (watch, runtime: 48:48). “We need to understand very clearly that policy without technological readiness and without economic competitiveness is not going to drive a solution. Incentives will drive a solution but it’s not sustainable,” he said, highlighting rising demand for hydrocarbons against renewable energy.

Speaking of Aramco: The state-owned oil giant is looking to invest in new types of energy outside Saudi, Reuters quotes Nasser as saying. He did not provide further details. Aramco has been pushing into both conventional and renewable energy across the world in the past 12 months.

Saudi is setting an example for a circular economy: The Kingdom has been able to rally international support for its push towards a circular economy and carbon capture, Energy Minister Abdulaziz bin Salman said, according to Mubasher. Our carbon capture and storage facilities can process nearly half a mn tons of carbon, bin Salman said, urging other countries to follow with similar initiatives.

PRIVATE SECTOR SENTIMENT-

There’s emerging consensus on a sense of “cautious optimism,” WEF Managing Director Saadia Zahidi said on the wave of optimism overtaking private sector sentiment against a backdrop of globally divergent needs. During a panel titled “Investing amid global facture” yesterday, BlackRock CEO Larry Fink also echoed the same message of positivity regarding fiscal stimulus. “The amount of innovation that we are witnessing right now is going to create an incredibly large … investment cycle.” he said (watch, runtime: 0:40)

On mending a fractured global economy: Olayan CEO Lubna Olayan highlighted the importance of transparency in mending the currently fractured global economy. “The key thing for investors is transparency, rule of law, and that rules are applied to everyone equally,” she said (watch, runtime: 0:59). “Every country needs to find its own way.” she said.

The key takeaway: “We are in a paradigm shift. There are still investment [possibilities]. And developing countries will need to work differently to attract them,” Zahidi said.

ACWA HAS USD 10 BN FOR MALAYSIA?

#1- Renewables energy giant Acwa Power plans to invest USD 10 bn in Malaysia over the next decade, Malaysian state news agency Bernama reported, citing statements by chairman Mohammed Abunayyan. The proposed “energy projects” in Malaysia will be implemented with Malaysian integrated renewable energy provider Cypark Resources. Talks on the plan are set to be finalized by the end of the year, Cypark Resources executive chair Datuk Ami Moris was quoted as saying.

What they said: “Acwa Power, one of the world’s largest renewable energy companies, is keen on investing in Malaysia, implementing technology transfer and sharing its renewable energy expertise for industrial parks in Jasin, Melaka, and Kerian, Perak, to power up green data centers,” Moris said.

#2- The Saudi Space Agency signed an agreement with the World Economic Forum to set up a Centre for Space Futures, according to a statement. The center, set to open later this year, aims to “facilitate public-private discussions on space collaboration” to help accelerate technologies, according to the statement.

#3- The WEF’s open innovation platform Uplink will help provide Saudi early-stage startups with advanced technologies to help “reduce, recycle and remove carbon from the atmosphere,” according to a statement. They also launched a competition for local startups to help source technology to preserve marine diversity among other initiatives.

Water treatment company Miahona sets the price range for its main market Tadawul IPO

Institutional investors started placing orders in Miahona’s IPO yesterday, kicking off the institutional subscription period. Bankers will wrap up the marketing of the institutional tranche this coming Thursday (2 May).

The IPO values the Riyadh-based water treatment company at as much as SAR 1.8 bn, according to Enterprise calculations, after advisors on the transaction announced an indicative price range of SAR 10.5-11.5 per share, they said in a statement to Tadawul. The guidance indicates the IPO could raise as much as SAR 555.5 mn.

What’s next: After the institutional subscription closes, bankers will set the offering’s final price, initiating a two-day subscription process for the retail tranche which is slated to start on Tuesday, 21 May, the statement reads. The final step before ringing the bell in the exchange involves refunding any excess subscription fees on Thursday, 30 May.

Background: The sole owner of Miahona — Vision Invest — will offload a 30% stake on main market Tadawul in secondary share sale, and its shares will remain locked up for six months from the first trading day, it said when it released its prospectus last week. The selling shareholder will take home the proceeds from the offering after paying an estimated SAR 28 mn in fees associated with the transaction.

ADVISORS- Our friends at EFG Hermes KSA are quarterbacking the transaction as financial advisor, bookrunner, and underwriter, along with Saudi Fransi Capital (SFC) which is also separately acting as the lead manager. SFC and Riyad Bank are receiving agents. Latham & Watkins is acting as legal counsel, while PwC is financial due diligence advisor, KPMG are serving as auditors, and Arthur D. Little as market consultant.

Saudi Manpower Solutions is gearing up to go public in secondary share sale

Saudi Manpower Solutions (Smasco) plans to take a 30% stake to market through a secondary share sale of 120 mn shares on the main market Tadawul, according to the company’s prospectus (pdf). The recruitment company is yet to set a price range for the IPO.

The details: Institutional investors will provisionally be able to subscribe to 100% of the offering’s shares, while the financial advisor has the right to allocate 10% of the offering to retail investors “if there is sufficient demand.” Each institutional investor can subscribe to up to 20 mn shares and a minimum of 100k shares, while each individual investor can subscribe to a maximum of 2 mn and a minimum of 10 shares.

Use of proceeds: The Riyadh-based company’s selling shareholders will take the transaction’s proceeds home after covering transaction-related expenses — estimated at SAR 45 mn. All the proceeds will be divided between the selling shareholders on a pro rata basis.

Meet Smasco: The company provides recruitment solutions covering the full hiring cycle from contracting to facilitating the issuance of residency, driving license and medical and social ins. documents. The Riyadh-based company also helps businesses and the public sector hire on short-term contracts for seasonal jobs through a service it calls “mawsemiah.”

The investment case: Smasco is asset light, has digitized its operations, and runs with no debt. It is a “first-mover in the industry,” the prospectus claims, “ introducing on-demand hourly services, advanced mobile applications, dynamic pricing models, specialised services and strategic licensing and branding initiatives.” It serves both corporate and individual demand and is positioned to grow as the government looks to create the conditions for 2 mn new jobs through 2030.

By the numbers: Smasco’s top line was largely unchanged in 9M 2023 compared to the same year last year and its profit from ongoing operations declined 30% to SAR 121 mn, the prospectus says, citing reviewed (not audited) financial statements. Argaam separately reports that Smasco’s net income rose 10.7% y-o-y to SAR 166.3 mn in 2023, while its revenues dipped 0.7% y-o-y to SAR 1.8 mn,.

Smasco has five subsidiaries including tech-focused VC Saneem Investment Company, Saudi Logistics Services Company, Terhab Customer Experience, Romoz Development For Communications and Information Technology, and it is a 100% indirect shareholder in the Business Solutions Center. The company’s website says it has facilitated the recruitment of 160k workers at 4k entities across the Kingdom.

Shareholding structure: Majority shareholder Al Holoul Al Mutakamela Holding will hold a 47.8% stake in the company after the offering, down from 70%, Rafid Advanced Investments Company’s shareholding will inch down to 4.8% (from 7.5% before the offering), while Mohammed Abdulaziz All Habib and Sons Holding Company and Al Masa Real Estate Company will each holding 3.5% (down from 5.0% each) after the offering. The selling shareholders will not be able to execute any transactions on their shares for a period of six months starting from the first trading day.

The timeline:

Institutional investors will be able to place their orders starting on Wednesday, 8 May, until Tuesday, 14 May;
The two-day retail subscription process is slated to start on Sunday, 26 May;
Final allocation of the offering’s shares will take place on Monday, 3 June;
Any excess subscription fees will be refunded by Monday, 10 June.

ADVISORS- SNB Capital is quarterbacking the transaction as the sole lead manager, financial advisor, bookrunner, and underwriter. STAT Law Firm is legal advisor, Ernst & Young Professional Services is the financial due diligence advisor, and Arthur D. Little Saudi Arabia is acting as market consultant. The receiving agents are SNB, SNB Capital and Al Rajhi Bank.

Biden could get Republican support from mediating a Saudi-Israeli normalization agreement

A US-mediated Saudi-Israeli normalization agreement would ensure some Republican support for US President Joe Biden in the upcoming presidential elections, Senator Lindsey Graham told CNN. “If we can get [an agreement] between Saudi Arabia and Israel, it ends the Arab-Israeli conflict, it isolates the Iranians, it creates some hope for the Palestinians, it provides security in a real way to Israel,” the South Carolina Republican said. The story also got ink from Politico.

Remember: Graham — who has emerged as something akin to an informal partner of White House negotiators with Saudi officials — met with Crown Prince Mohammad Bin Salman late last month to discuss normalizing diplomatic relations between the Kingdom and Israel.

EdfaPay gets license to operate in Tunisia. Plus: debt, earnings, and Islamic finance

STARTUP WATCH-

Local fintech outfit EdfaPay has obtained the licenses it needs to operate in Tunisia starting in May through its Tunisian financial payment solutions arm WePay, it said in a press release (pdf). The expansion will help provide integrated payment solutions in Tunisia, it said. The Riyadh-based fintech will announce “many signed contracts with clients from Tunisia and Morocco” in May, it said, without providing further details. EdfaPay CEO and Founder Ghormallah Al Ghamdi said the launch will help EdfaPay “open new doors to our uttermost goal of worldwide expansion.”

REMEMBER- EdfaPay received accreditation from leading global payments network Discover Global Network in March, paving the way for expansion into new markets.

About EdfaPay: Set up in 2022, EdfaPay is a fintech company that uses software point of sale (softPoS) and payment gateway services for online and offline merchants. It raised USD 1.6 mn in a pre-seed round to help boost its progressive softPoS technology, which allows merchants accept card payments directly through their phones. It also raised USD 3.2 mn last year in a seed round to help fuel its expansion overseas.

DEVELOPMENT-

The International Islamic Trade Finance Corporation (Itfc) plans to add to its portfolio of projects with over 40 agreements to be signed during its ongoing Islamic Development Bank (IsDB) annual meetings in Riyadh, its CEO Hani Sonbol told Aleqisadiah on the sidelines of the annual meetings. He did not provide a figure on the total funding that the bank, which is a member of the IsDB, intends to allocate for the fresh agreements.

Some of the agreements include a USD 250 mn murabaha facility with African Export-Import Bank (Afreximbank) to support the bank’s trade finance activities, Sonbol said. The bank also signed a USD 150 mn agreement with Uganda to support sectors including energy, agriculture and others, he added. A USD 40 mn murabaha agreement between the Itfc and the Trade and Development Bank to facilitate trade between Eastern and Southern Africa was also signed, according to Sonbol.

DEBT-

Tadawul-listed Middle East Specialized Cables Company has secured a one-year SAR 100 mn sharia-compliant credit facility from Al Rajhi Bank to finance its working capital, it said in a statement to Tadawul.

EARNINGS WATCH-

#1- Al Rajhi Bank’s net income rose 6.3% y-o-y to SAR 4.4 bn in 1Q 2024, fueled by an increase in net financing and investment income, it said in a disclosure to Tadawul. Meanwhile, revenues rose 6.6% to SAR 7.2 bn.

#2- The Saudi National Bank’s net income rose 0.4% y-o-y to SAR 5.0 bn in 1Q 2024, and revenues inched up 2% y-o-y to SAR 8.9 bn, according to a statement to Tadawul.

WASTEWATER TREATMENT-

Drake & Scull subsidiary to expand Khobar’s wastewater treatment plant: Wastewater treatment technology provider Passavant Energy and Environment — a subsidiary of UAE-based contractor Drake and Scull International — was awarded a project to design and build an expanded wastewater treatment plant in Al Khobar with a capacity of 200k cubic meters per day, according to a statement. The project, valued at SAR 789 mn (USD 215 mn), was awarded to Passavant along with an unnamed local contractor. Passavant’s subcontract was valued at USD 48 mn, the statement said. No timeline for the project was disclosed.

Scope of work: The contract includes the design and technology of a process to convert waste into energy. It also includes a terminal pumping station, heavy waste treatment tanks, water distribution pipelines and other components.

Arqaam Capital is bullish on Saudi and UAE growth, tips listed banks

Arqaam Capital is bullish about Saudi and UAE growth: Saudi Arabia and the UAE are expected to see strong growth this year, Arqaam Capital’s Equities Research Head Jaap Meijer told Bloomberg TV (watch, runtime: 4:44). Meijer pointed to aviation, oil and gas services, healthcare, and infrastructure as his big picks for what will drive growth this year, pointing out that new contracts and infrastructure developments, including the construction of the new terminal at Al Maktoum airport, are creating additional growth potential.

Equities are going to do well — and we’ll have banks to thank: Banks in Saudi and the UAE can expect to maintain healthy margins amid a persistent high interest rate environment, which Meijer said “is highly positive on top of very buoyant balance sheet growth.” Some UAE banks are filling a liquidity gap in the Saudi market, which is also helping to stimulate lending growth.

FURTHER AFIELD- Morgan Stanley, fresh off the Reddit and Astera Labs IPOs, says it expects 10-15 more US tech listings this year, CNBC reports, with the company’s global head of technology equity capital markets saying that 2025 could be an “even better year.”

The turnaround: A good 2024 and 2025 would snap turn things around for tech offerings after a “lull began in 2022, when soaring inflation and rising interest rates pushed investors out of risk, slashed tech valuations and led many tech companies to delay their plans to go public,” the broadcaster says.

MARKETS THIS MORNING-

Asian shares are up this morning, led by the Nikkei as trading in Japan resumed after yesterday’s holiday. Major Asian benchmarks were following Wall Street up — the Dow and S&P 500 closed up slightly yesterday, while the Nasdaq was basically flat. US and European equities futures were little changed overnight.

TASI	12,369.5	+1.1% (YTD: +3.4%)
MSCI Tadawul 30	1,569.8	+1.6% (YTD: +19.1%)
NomuC	26,228	-0.01% (YTD: +6.9%)
USD : SAR (SAMA)	3.75 Buy	3.75 Sell
Interest rates	6.5% repo	5.5% reverse repo
EGX30	26,011.3	+5.6% (YTD: +4.5%)
ADX	9,063.3	+0.2% (YTD: -5.4%)
DFM	4,160.7	+0.3% (YTD: +2.5%)
S&P 500	5,102.2	+0.04% (YTD: +7.2%)
FTSE 100	8,147	+0.1% (YTD: +5.4%)
Euro Stoxx 50	4,981.1	-0.5% (YTD: +10.2%)
Brent crude	88.5	-1.1%
Natural gas (Nymex)	2.04	+5.9%
Gold	2,346.1	-0.1%
BTC	62,614.6	-1.8% (YTD: +49.3%)

THE CLOSING BELL: TADAWUL-

The TASI rose 1.1% yesterday on turnover of SAR 8.2 bn. The index is up 3.4% YTD.

In the green: MBC Group (+9.9%), AlBaha (+7.7%) and SPM (+7.1%).

In the red: SSP (-9.3%), Chubb (-4.2%) and Riyadh Cables (-4%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.01% yesterday on turnover of SAR 52.3 mn. The index is up 6.9% YTD.

In the green: Mayar (+19.4%), Osool and Bakheet (+15%) and Ladun (+7.5%).

In the red: Group Five (-6%), AlBabtain Food (-5.3%) and AlMuneef (-5.1%)

Crown Prince, Blinken talk Gaza as US official urges Hamas to accept “extraordinarily generous” Israeli proposal on truce

All about Gaza in Riyadh: Crown Prince and Prime Minister Mohammed bin Salman discussed exerted efforts to halt Israeli military operations against Gaza during a meeting with US Secretary of State Antony Blinken, state news agency SPA reported yesterday. The meeting, held on the sidelines of the WEF special meeting in Riyadh, also discussed bilateral ties and joint cooperation. They also discussed the urgent necessity to reduce tensions in the region, according to a statement by the US State Department.

What went down throughout the day: Blinken urged Hamas to accept a “extraordinarily, extraordinarily generous” Israeli proposal for a ceasefire in Gaza, Reuters reported. "The only thing standing between the people of Gaza and a ceasefire is Hamas. They have to decide and they have to decide quickly," he said. "I'm hopeful that they will make the right decision." His statements come as Egyptian and Qatari negotiators are set to meet with representatives of Hamas for a response on the phased Israeli proposal which sees the release of fewer than 40 of the 130 hostages held by the Palestinian group in exchange for the release of Palestinians from Israeli jails.

The US has seen “measurable progress” in the humanitarian crisis in Gaza in the last few weeks, yet more needs to be done by Israel, Reuters reported, citing statements by Blinken. Speaking at the US-GCC ministerial meeting attended by Foreign Minister Prince Faisal bin Farhan in Riyadh, Blinken stressed on the urgency of a ceasefire to help mitigate the humanitarian crisis in Gaza. He said that Washington has been exerting efforts to prevent the war from expanding, without providing further details. The joint meeting saw discussions on the developments in Gaza and Rafah and the importance of an immediate ceasefire, state news agency SPA reported. Blinken had earlier met separately with FM bin Farhan for talks on a ceasefire in Gaza, according to state news agency SPA.

One more assurance on “progressing” talks for a ceasefire: Negotiations on a ceasefire in Gaza were “moving forward,” French Foreign Minister Stephane Sejourne told Reuters on the sidelines of the WEF meeting. "Things are moving forward but you always have to be careful in these discussions and negotiations. The situation in Gaza is catastrophic and we need a ceasefire," he said. "We will discuss the hostages, humanitarian situation and the ceasefire. Things are progressing, but we must always remain prudent in these discussions and negotiations." Sejourne added.

CALENDAR

APRIL

27-30 April (Saturday-Wednesday): Islamic Development Bank (IsDB) Group's 2024 Annual Meetings, Riyadh.

27-30 April (Saturday-Wednesday): Saudi International Luxury Week 2024, Jeddah.

28-30 April (Sunday-Tuesday): Saudi Mechanical Engineering Technology Conference and Exhibition 2024, Al Khobar.

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

30 April-2 May (Tuesday-Thursday): Automechanika Riyadh 2024 at Riyadh International Convention and Exhibition Center.

30 April (Tuesday): GC Summit Saudi Arabia 2024, Riyadh.

30 April (Tuesday): HR Leaders Conference Riyadh 2024, Riyadh.

MAY

2-5 May (Thursday-Sunday): Townhall Expo, Riyadh.

6-9 May (Monday-Thursday): Saudi Smart Manufacturing, Riyadh.

6-9 May (Monday-Thursday): Saudi Smart Logistics, Riyadh.

13-15 May (Monday-Wednesday): Smart Future Expo, Riyadh.

13 May (Monday): Saudi Giga Projects, Riyadh.

14-15 May (Tuesday and Wednesday): Saudi Great Futures, Riyadh.

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

20-21 May (Monday-Tuesday): Future Projects Forum, Four Seasons Hotel, Riyadh.

20-22 May (Monday-Wednesday): Future Aviation Forum 2024, Riyadh.

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

27-28 May (Monday-Tuesday): Smart Data & AI Summit Saudi, JW Marriott Hotel, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

4-7 June (Tuesday-Friday): Saudi Sports Show, Riyadh.

4-7 June (Tuesday-Friday): Aqarat Expo, Riyadh.

5 June (Wednesday): World Environment Day.

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

AUGUST

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

SEPTEMBER

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

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

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

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

NOVEMBER

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

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

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

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

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

2025

FEBRUARY

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

Sections

About

Privacy & Support

Get EnterpriseAM daily