Non-oil economy to maintain growth above 4% in 2025: NBK

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WHAT WE’RE TRACKING TODAY

THIS MORNING: World Expo 2030 bid in the final stage + A hiring dispute behind the PIF-PwC row?

Good morning, wonderful readers. We welcome the second workweek of the holy month with the latest forecasts and news in the Kingdom’s logistics sector and capital markets, and more.

Leading this morning’s news well: NBK is out with its forecasts for our economy in 2025, the latest data on M&A transactions in the MENA region in 2024, and the inauguration of a new and improved container terminal at Jeddah Islamic Port by Mawani and DP World. We also have the full-year earnings of Ma’aden, which saw the mining giant’s net income jump 82.1%.

^^ The details on these stories and more are in this morning’s news well, below.

When do we eat? Maghrib is at 5:59pm today in Riyadh. You’ll have until fajr prayers at 4:49am tomorrow to finish your sohour.

HAPPENING TODAY-

Coffee chain operator Ratio Specialty will begin trading on the Nomu parallel market today, according to a Tadawul statement. Ratio’s shares can fluctuate within a ±30% range for the first three days, after which price fluctuations will be capped at ±10% before circuit breakers take effect.

REFRESHER- The company priced its secondary offering of a 25% stake (good for 5 mn shares) at SAR 10 apiece. The offering, limited to qualified institutional investors, was 8.6x oversubscribed. The pricing gives Ratio a market cap of SAR 200 mn at listing with proceeds from the sale earmarked to the selling shareholders, after deducting some SAR 2.6 mn to cover IPO-related expenses.

The retail bookbuilding period for Umm Al Qura for Development and Construction’s IPO wraps up today, whereby retail investors can book up to 2.5 mn shares each, with the minimum limit set at 10 shares. The final allocation of shares is slated for this Thursday, 13 March. A total of 13.08 mn shares (10% of the offering) is allocated for retail investors.

REMEMBER- Umm Al Qura is offering a 9.1% stake on Tadawul’s main market priced at the top of its indicative range at SAR 15 per share, with the institutional tranche oversubscribed by 241x. The pricing would see it raise SAR 2 bn in proceeds and give the firm a market cap of SAR 21 bn at listing, making it the largest IPO on Tadawul so far this year.

WEATHER- Riyadh remains under stormy skies, while Makkah will be windy. Madinah can expect clear skies today.

Riyadh: 25°C daytime / 14°C overnight
Makkah: 31°C daytime / 23°C overnight
Madinah: 27°C daytime / 13°C overnight

PSAs-

#1- Businesses subject to withholding tax must file their February tax returns by tomorrow through the Zakat, Tax and Customs Authority’s (Zatca) website, according to a statement. Missing the deadline will result in penalties of 1% of the unpaid tax for every 30 days of delay.

#2- Commercial register and trade names services will be suspended for one week from Thursday, 27 March to Thursday, 3 April ahead of the launch of the new Commercial Register and Trade Names law, the Commerce Ministry said. During this period, only commercial reports, licenses for discounts, commercial franchise services, and commercial statements will remain available.

Suspended services include any modifications to a commercial register, amending contracts, reserving trade names, and establishing companies

BACKGROUND- The new law looks to simplify procedures and make it easier to do business. It requires companies to operate under a single commercial register for all activities in Saudi Arabia, bans duplicate trade names, eliminates regional sub-records, and updates registry renewal timelines, among other changes.

WATCH THIS SPACE-

#1- Did a hiring dispute cause the PIF-PwC row? The Public Investment Fund (PIF) was reportedly at odds with PwC over the consultancy firm’s attempt to hire Neom’s then-chief internal audit officer Jason Davies, the Financial Times reported, citing sources it said are familiar with the matter. Davies, who had been with Neom since 2020 and left in September 2024, was seen as a key figure, and the proposed hire raised ethical concerns due to PwC's close ties with PIF. Davies ultimately did not join PwC.

REMEMBER- PwC was reportedly barred from securing advisory and consulting contracts from the fund and its subsidiaries until February 2026, two years after setting up its regional headquarters in Saudi Arabia, where it employs over 2k people. The consulting firm informed employees in an internal memo last week that the situation pertains to a “client” matter rather than a regulatory issue.

IN CONTEXT- PwC’s Middle East business, which grew by 26% in the year to June 2024, has been a key driver of the firm’s overall revenue growth, according to the salmon-colored paper. The Kingdom's consulting market, the region’s largest, was valued at USD 3.2 bn in 2023, up 18.2% from 2022.

#2- Our World Expo 2030 bid is in the final approval stage: The Kingdom submitted its registration dossier for World Expo 2030 Riyadh to France’s Bureau International des Expositions (BIE), entering the final approval stage for hosting the event, the Royal Commission of Riyadh said in a statement released last Friday. The dossier outlines key aspects of Saudi Arabia’s implementation plan for the event, including the timeline, site master plan, and financial and legislative frameworks.

BACKGROUND- The Kingdom was crowned 2030 World Expo host after defeating Italy and South Korea in a vote by Bureau International des Expositions member states late yesterday. Riyadh secured 119 out of 165 votes, while Busan received 29 and Rome, just 17. Crown Prince and Prime Minister Mohammed bin Salman later discussed preparations for the event with BIE Secretary-General Dimitri Kerkentzes.

#3- The PIF is investing USD 100 mn in Malaysian budget airline AirAsia, making it the biggest contributor to the airline’s USD 226 mn fundraising target, Bloomberg reports, citing sources it says are in the know. AirAsia is offering investors up to a 15% stake at a USD 2 bn valuation as it targets recovery from covid-19 losses.

The rationale: A key draw for the PIF’s investment is AirAsia’s backlog of over 350 Airbus narrowbody aircraft. PIF’s Riyadh Air secured part of these delivery slots, easing the Malaysian airline’s financing burdens while providing Riyadh Air with planes needed for its 3Q 2025 launch. Riyadh Air chose the slots instead of purchasing 100 Boeing 737 jets.

Nothing set in stone: AirAsia is also in talks with investors from Singapore and Japan, with a potential announcement expected within weeks, although reaching a final agreement is not guaranteed, the sources said.

#4- The National Water Company is set to award a contract for three water purification plants and adjoining water pipelines in 2Q 2025, Zawya reports, citing sources it says are in the know. The project covers the operation and maintenance at the Labkha and Hawiyat plants in Al Quwayiyah with a daily capacity of 5k cubic meters, as well as at the Moral Guidance Institute plant in Al Muzahmiyah with a 1.5k cubic meter daily capacity. Bid submissions for the project wrapped up on 2 March.

#5- Iraq’s parliament is nearing approval of a new law to safeguard Saudi investments in Iraq, pending final regulatory amendments, Iraq’s Ambassador to Riyadh Safia Al Souhail said in an interview with Asharq Al Awsat. The new law aims to strengthen Saudi-Iraqi investment ties, with both the PIF and Iraq’s Investment and Development Fund playing a major role in the process. The move comes as Riyadh and Baghdad strengthen their bilateral political, security, and economic partnerships.

DATA POINTS-

The Kingdom’s nonprofit sector contributed SAR 114 bn to the economy, breaching the SAR 100 bn threshold for the first time and accounting for 3.3% of GDP, according to King Khalid Foundation’s Prospects for the NonProfit Sector 2025 report (pdf). The report forecasts the sector will reach 5% of GDP — the Saudi Vision 2030 target — two years ahead of schedule.

The breakdown: Endowments contributed SAR 48 bn, non-profit organizations SAR 47 bn, volunteering SAR 5 bn, and cooperative societies SAR 2 bn. Education and research led revenues with SAR 19 bn, while health organizations topped spending at SAR 15 bn. Digital donation platforms raised over SAR 15 bn and endowment funds reached SAR 1.7 bn in assets, with projections to hit SAR 100 bn by 2040.

OIL WATCH-

Saudi Aramco lowered its crude oil prices for Asian buyers in April for the first time in three months, cutting Arab Light by USD 0.40 cents to USD 3.50 / bbl above the Oman and Dubai average, Reuters reported on Friday. The price cut aligns with market expectations, with a Reuters poll predicting a reduction of USD 0.20-0.65. The move follows Opec+’s decision to gradually increase oil supply in April, though the decision could be reversed if market imbalances emerge, Reuters reported, citing Russia’s Deputy Prime Minister Alexander Novak.

SPORTS-

PIF to fund maternity program for WTA players: The Public Investment Fund (PIF) and the Women's Tennis Association (WTA) launched the PFA WTA Maternity Fund Program, which will see WTA players get up to 12 months of paid maternity leave, as well as grants for fertility treatments, according to a statement. This also got ink from AP | Washington Post | The Athletic | Reuters.

The details: The program — recognized as the “first and only” maternity program in women’s sport to receive full funding from an external partner — is accessible through competing in a specific number of WTA tournaments in a given time window while maintaining a “special” ranking. It falls under WTA’s Family Focus program, which works to facilitate players’ return to professional competition after starting a family. Over 320 players are eligible for the program.

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THE BIG STORY ABROAD-

Ceasefire negotiations are back on: Israel will be sending representatives to Qatar tomorrow to advance ceasefire negotiations, while Hamas representatives are in Cairo to partake in negotiations with Egyptian mediators. Hamas has hinted at “positive indicators” that the second phase of the three-phase ceasefire would start. (Reuters | AP | Bloomberg)

REMEMBER- Last week, Israel started blocking all humanitarian aid from entering Gaza in a bid to pressure Hamas into accepting changes to the already agreed on ceasefire agreement.

MEANWHILE- In Syria, more than 1k people were killed in two days of clashes between Syrian forces and former president Bashar Al Assad loyalists in the city of Latakia. The fighting left large parts of Latakia without power and clean water. (AP)

AND- China announced retaliatory tariffs on Canadian agricultural products, escalating trade tensions after Ottawa imposed import duties on Chinese-made EVs last year. Beijing will slap a 100% tariff on Canadian rapeseed oil, oil cakes, and peas, and a 25% levy on aquatic products and pork. The new tariffs are set to take effect starting 20 March. (Reuters | Bloomberg | CNBC)

Saudi Arabia’s non-oil economy expected to maintain growth above 4% in 2025: NBK

Saudi Arabia’s non-oil economy is forecast to grow more than 4.0% in 2025, compared to an estimated growth rate of 4.3% in 2024, the National Bank of Kuwait (NBK) said in a report (pdf). The lender’s positive growth outlook is “underpinned by a strong investment drive, reform progress, rising FDI and employment, and promising momentum in strategic sectors such as tourism, manufacturing, and transport/logistics,” according to the report. Government investments as the Kingdom builds up toward the 2027 Asian Cup, Expo 2030, and the 2034 World Cup, are also underpinning the bank’s expectations.

The non-oil economy is playing an increasingly large role in overall GDP: The non-oil sector’s share of GDP hit a record high of 51% in 2024, according to official preliminary estimates cited in the report. Non-oil growth hit 4.6% y-o-y in 4Q 2024, pushing up total non-oil growth for 2024 to an estimated 4.3%.

Growth could come in at an even higher rate than NBK expects: “The non-oil economy will grow by 4.8% in 2025 as the PIF reallocates capital towards domestic projects aligning with Vision 2030 goals, providing a significant boost to investment. Meanwhile, consumers will continue to benefit from structural improvements in the labor market,” Fitch Solutions’ research unit BMI said last month.

ICYMI- The Kingdom’s non-oil activity expanded to an over decade-high level to kick off the year in January, with our PMI headline figure coming in at 60.5 during the first month of the year, before new business growth cooled slightly to bring the figure down to 58.4 in February. Despite the PMI reading drop, business confidence in Saudi Arabia reached its highest level in 15 months last month, as businesses conveyed optimism over economic growth and government initiatives that could help support their development and expansion.

Certain sectors in the non-oil economy are making considerable progress: Sectors like wholesale and retail trade, construction, manufacturing, and transport are seeing noticeable output gains that have been facilitated by a significant increase in domestic investment as part of the National Investment Strategy (NIS), according to NBK.

REMEMBER- The NIS aims to boost Saudi Arabia’s GDP by SAR 6.8 tn and increase cumulative investment volumes by SAR 12 tn by 2030, which would position the Kingdom among the world’s largest 15 economies. Other targets the NIS aims to achieve by 2030 include reducing the unemployment rate to 7%, raising non-oil exports contribution to the GDP to 50%, and increasing the private sector’s share of GDP to 65%. The NIS also targets boosting FDI inflows to account for 5.7% of GDP, or SAR 388 bn.

Saudi manufacturing looks to have rebounded in 2024, after having slowed in 2023 due to “a combination of base effects and weaker petrochemicals demand in China,” with output having grown by an average of 2.6% in 9M 2024. The sector is also expected to expand its activity to include industrial and military equipment manufacturing, as well as renewable energy and metals and minerals mining.

Reforms will help boost FDI and overall growth even further: “Ongoing reforms aimed at enhancing the effective execution of laws, streamlining procedures and fees, raising the participation of women in the labor force, facilitating access to land and finance, and improving governance should further promote private sector expansion, draw in more FDI and support overall productivity growth,” the report reads.

Some risks remain — but the overall outlook is positive: Falling oil prices could pressure the government’s fiscal position and widen the SAR 101 bn deficit it penciled for 2025, potentially leading to the scaleback of some projects, reads the report. Other risks include US rate cuts lagging behind expectations and new US tariffs, which could drive up import costs and add inflationary pressures. A significant reduction in spending appears to be unlikely, as alternative funding sources, a well-capitalized sovereign wealth fund, ample reserves, and a relatively low debt-to-GDP ratio provide financial flexibility, according to NBK.

Saudi + UAE SWFs led regional M&A activity in 2024

The MENA region saw 701 M&A transactions last year totaling USD 92.3 bn, with the bulk of activity being in the GCC, where 580 transactions accounted for USD 90 bn, according to EY’s latest MENA M&A insights report. This marks a 3% increase in transaction count and a 7% rise in value y-o-y, likely fueled by capital market reforms, policy shifts, and growing interest from foreign investors, the report reads.

Saudi and Emirati sovereign wealth funds remained the key drivers of dealflow in the region, with Abu Dhabi’s Mubadala Investment (along with two US-based PE firms) clinching the heftiest cash-based M&A last year, as it acquired an 80% stake in US-based fifth largest ins. player Truist Ins. USD 15.5 bn in February 2024. PIF-backed Aramco followed, snapping up an additional 22.5% stake in Rabigh Refining and Petrochemical (Petro Rabigh) for USD 8.9 bn. Meanwhile, the Abu Dhabi Investment Authority (Adia) and Mubadala (along with a Hong Kong-based PE firm) acquired a 60% stake in China’s Zhuhai Wanda Commercial Management Group for USD 8.3 bn in April.

Cross-border transactions topped the M&A league table, making up 52% of the total volume, and 74% of the total value of transactions.

Domestic M&A accounted for 48% of total activity in the region last year with 339 transactions worth USD 24.4 bn, up slightly from 333 in 2023. Technology and consumer products led the charge, accounting for a combined 35% of the total domestic count. Meanwhile, oil and gas remained the heavyweight in terms of value, contributing USD 9 bn — largely driven by Aramco’s acquisition of Petro Rabigh.

Outbound investments accounted for the lion’s share of total consolidated transaction value (61%) with 199 transactions worth USD 56.6 bn.

Inbound investments totaled USD 11.4 bn across 143 transactions, with the value rising 42% y-o-y and volume up 18% y-o-y.

Saudi Arabia and the UAE captured the bulk of inbound and total M&A, with the two countries being home to 318 M&A transactions worth a total of USD 29.6 bn last year.

The US was the biggest bidder from outside the MENA region last year, logging 48 transactions worth USD 4.6 bn. The capital flowed both ways as MENA investors also made the US their prime destination in 2024, striking 41 M&A transactions valued at USD 19.9 bn in the American market.

The technology sector led inbound investments in the region last year, accounting for 23% of total inbound and domestic transaction volume.

Mawani, DP World inaugurate SAR 3 bn container terminal at Jeddah Islamic port

Southern Container Terminal is open for business: The Saudi Ports Authority (Mawani) and Dubai-based DP World inaugurated the SAR 3 bn (USD 800 mn) Southern Container Terminal at Jeddah Islamic Port, after a three-year expansion and development project saw the terminal’s capacity increase to 4 mn TEUs from 1.8 mn TEUs, according to a press release. The expansion is targeting a future capacity of 5 mn TEUs.

Cutting-edge: The 2.15k meter quay — with 18 meter deep-water capacity — will now be able to handle up to five large container ships simultaneously. The modernized terminal integrates automation, IoT cargo tracking, and AI load analysis to reduce gate transaction times from two minutes to just 10 seconds. The capacity for refrigerated containers was also doubled to 2.34k from 1.2k. Meanwhile, automated and electrified yard cranes were introduced, while aiming to expand quay cranes to reach 17 by the end of this year.

IN CONTEXT- The expansion project — awarded to DP World in April 2020 — is part of SAR 9 bn concession contracts between Mawani, DP World, and Red Sea Gateway Terminal under a build-operate-transfer (BOT) model. These agreements represent the biggest concession contracts in Saudi ports history.

More in the pipeline: DP World is building a new facility with a capacity to inspect up to 75 reefer containers at once — the largest in the Kingdom, according to the press release. The Dubai-based giant is also working on a SAR 900 mn logistics park spanning 415k sqm to enhance storage, distribution, and shipping services, set to be completed by 2Q 2026.

A focus on sustainability: Mawani and DP World aim to cut the terminal’s carbon emissions by 50% within five years by adopting electric cranes and trucks, green building designs, and water recycling systems, the statement said.

Future Vision gears up for Nomu listing

Future Vision to list on Nomu: Future Vision for Health Training announced plans to list on the Nomu parallel market, offering 2 mn newly-issued shares representing 20% of its post-IPO capital, according to its prospectus (pdf). The Capital Market Authority approved the IPO in December 2024.

Use of proceeds: The company will allocate SAR 2 mn to cover the offering expenses, including financial advisor and underwriter fees. The remaining net proceeds will be used to develop the company’s assets.

Post-IPO structure + lockup: Major shareholders will see their combined ownership drop to 53.97% from 67.46% following the offering. They will be restricted from selling their shares for 12 months from the first day of trading.

Timeline: Qualified investors can subscribe from 6 to 10 April, with a minimum subscription of 100 shares and a maximum of 499k shares per investor.

About Future Vision: Founded in 2019, Future Vision specializes in vocational training and education in Riyadh, Jeddah and Madinah, offering certified courses accredited by the Saudi Commission for Health Specialities and life support programs approved by the American and Saudi Heart Associations.

Earnings snapshot: The company reported a 12.4% y-o-y decline in net income to SAR 689k in 1H 2024. Meanwhile, revenues declined 4.5% y-o-y to SAR 7.2 mn.

ADVISORS- Yaqeen Capital is the financial and lead manager. Receiving agents include Derayah Financial, Alinma Investment, Al Rajhi Capital, SNB Capital, BSF Capital, Riyad Capital, ANB Capital, Alistithmar Capital, Albilad Capital, AlJazira Capital, GIB Capital, Alkhabeer Capital, SAB Invest, and Sahm Capital.

Ma’aden’s net income up 82.1% in 2024 + Jabal Omar, Saudi Cement report full-year earnings

SAUDI ARABIAN MINING-

Saudi Arabian Mining (Ma’aden) saw its net income grow 82.1% y-o-y in 2024 to SAR 2.9 bn, fueled by an increase in gross profit tied to higher sales prices and volumes, lower raw material costs and depreciation expense, and recovery from one-off industrial utility charges from the year before, according to an earnings release (pdf).

MEANWHILE- Ma’aden recorded its second-highest annual revenue at SAR 32.5 bn in 2024, up 11.2% y-o-y, buoyed by sales volumes for all portfolio products, except ammonia and alumina.

IN CONTEXT- Ma’aden caught the tailwind of rising gold prices in 2024, through the ownership of six gold mines and new gold discoveries last January in the Arabian Shield region. Gold prices rose 28% in 2024, hitting USD 2.6k per ounce.

2024 highlights: Ma’aden acquired Mosaic’s 25% stake in Ma’aden Wa’ad Al Shamal Phosphate Company in December, upping its ownership to 85%. It also inked a share purchase and subscription agreement back in September to acquire Alcoa’s 25.1% stake in Ma’aden Aluminium Company and Ma’aden Bauxite and Alumina Company.

In more recent developments: Ma’aden kicked off construction of its SAR 28 bn Phosphate 3 project at the Wa’ad Al Shamal Phosphate 3 back in January with USD 922 mn in contracts awarded, and raised USD 1.3 bn from USD-denominated sukuk issuance last month.

JABAL OMAR DEVELOPMENT-

Jabal Omar Development’s net income jumped 433.8% y-o-y to SAR 200.1 mn in 2024, driven by increased revenues and SAR 748 mn land sales at the Jabal Omar project, according to a Tadawul disclosure. The gains were partially offset by higher general, administrative, and financial costs, as well as expected credit losses.

MEANWHILE- Revenues increased 43.3% y-o-y to SAR 1.9 bn in the same period, buoyed by higher occupancy rates, leasing activities, and full accounting of unit sales at Jumeirah Jabal Omar.

SAUDI CEMENT-

Saudi Cement Company’s net income rose 10.7% y-o-y to SAR 421.9 mn in 2024, driven by higher revenues and investment income, as well as lower finance costs, it said in a disclosure to Tadawul. Meanwhile, revenues were up 14.6% y-o-y at SAR 1.7 bn on the back of rising sales.

AL MAJED OUD-

Al Majed Oud’s net income climbed 5.6% y-o-y to SAR 157 mn in 2024, aided by geographic expansion, new points of sale and products, and a growing e-commerce segment, according to a disclosure to Tadawul. Revenues also increased 19.9% y-o-y to SAR 926 mn during the same period, fueled by higher spending in marketing campaigns to support market expansion and new products.

ALSO- The company’s board recommended distributing SAR 100 mn in dividends for 2024 at SAR 4.00 per share, representing 40% of the share’s par value, it said in a separate disclosure. The eligibility and distribution dates and will be announced later.

MCDC-

Makkah Construction and Development Company (MCDC) saw its net income increase 23.1% y-o-y to SAR 411 mn in 2024, while revenues grew 14.4% y-o-y to SAR 836 mn, it said in a disclosure to Tadawul. MCDC attributed its bottom and top line growth to stronger performance by the Hajj segment, rising revenues from commercial mall rentals, higher average rates for hotels and towers, and improved income from affiliates and financing activities.

ALSO- MCDC’s board recommended distributing SAR 300 mn in dividends for 2024 at SAR 1.50 per share, it said in a separate disclosure. The distribution and eligibility dates will be announced later.

BASIC CHEMICAL INDUSTRIES-

Basic Chemical Industries saw its net income fall 8.2% y-o-y to SAR 40.4 mn in 2024, weighed down by higher general and administrative expenses and zakat tax, in addition to lower gains from asset sales and other income, according to a disclosure to Tadawul. Meanwhile, revenues inched up 2% y-o-y to SAR 755.6 mn in the same period, pushed by growth in basic chemicals, toll manufacturing, and adhesives.

PIF is seeking consultancy for a new business district in Riyadh

CONSTRUCTION-

The Public Investment Fund is seeking project management consultancy services for a new business district on the outskirts of Riyadh, including the world’s next tallest tower, Meed reports. The fund is receiving bids from firms looking to fill the position until 20 March 2025.

Who is interested? US-based firms Aecom, Bechtel, Jacobs, Parsons, and Turner, as well as the UK’s Mace are among the prospective bidders. The request for proposals was reportedly issued by PIF-subsidiary Tower District Real Estate Development Company, writes Meed.

BACKGROUND- British architecture studio Foster + Partners is reportedly working on designs for the skyscraper — which would be twice as tall as the world’s current tallest building, the Burj Khalifa. The PIF-backed project will be built at a site near the capital’s King Khalid International Airport.

Part of a bigger push: There are 100 commercial and residential towers worth some SAR 100 bn currently in the final stages of construction in Riyadh, Knight Frank Global executives and experts told Aleqtisadiah.

DISPUTE WATCH-

The Eastern Province Municipality terminated investment contracts with Smart Cities Solutions (SCS), a Batic Investments and Logistics subsidiary, for the development and operation of parking facilities in Dammam, Dharan, and Khobar, Batic said in a disclosure to Tadawul. The company remains in contact with Saudi authorities while “taking the necessary measures to safeguard its rights and protect the interests of its shareholders,” reads the disclosure.

BACKGROUND- The Eastern Province Municipality took over the management and operation of parking facilities back in February with Batic getting ready to take legal action in response. The terminated agreements include long-term contracts held by SCS to develop, construct, and operate parking spaces and facilities at Khobar and Dhahran until 2044, and Dammam until 2045.

INFRASTRUCTURE-

The second phase of Red Sea International’s (RSI) SAR 658 mn staff camp project at Neom’s Trojena Dam will not move forward, after Italian engineering outfit Webuild SpA — the contractor — decided not to activate the optional SAR 228 mn phase, according to a disclosure to Tadawul. RSI could be entitled to additional compensation when the works are completed, provided certain conditions in the contract are met.

FOOD-

Nadec + Hilton Foods will create a red meat JV: The National Agricultural Development Company (Nadec) signed a 10-year shareholders’ agreement with UK-based Hilton Foods to establish a joint venture to process and package red meat in Saudi Arabia, according to a disclosure to Tadawul. Nadec will own a 51% stake in the JV, and use its boning and retail packing facility in Haradh to supply the local market. The value of the agreement was not disclosed.

ADVERTISING-

AlBalad AlAmeen ink SAR 600 mn agreement with Rotana Signs: AlBalad AlAmeen, the financial arm of Makkah Municipality, signed a SAR 600 mn agreement with Riyadh-based advertising agency Rotana Signs to construct, operate, and maintain billboards in Makkah, it said in a post on X last Thursday. No further details were disclosed.

DEBT WATCH-

Raoom Trading secured a SAR 100 mn shariah-compliant loan from Al Jazira Bank, according to a disclosure to Tadawul. The funding will run throughout 2025 and will be allocated to back the company’s expansion.

REMEMBER- The BoD recommended last February doubling the firm’s capital to SAR 125 mn by capitalizing SAR 62.5 mn from retained earnings to strengthen the company’s financial position and future growth.

TRADE-

The Saudi-Moroccan Joint Committee saw the signing of a mutual recognition agreement for the Authorized Economic Operator (AEO) program, state news agency SPA reports. The Program was launched back in January, granting importers, exporters, and service logistics providers operating access to a benefits suite, including administrative, procedural, and financial perks.

TRANSPORT-

The JeddahTransport Company (JTC) launched the first phase of the Maritime Taxi service, according to a post on X. In the initial phase, the service will connect the Jeddah Yacht Club, Jeddah Historic District (Al Balad), and Obhur neighborhood, running from 3:30pm to 1:30am during the month of Ramadan. Tickets range from SAR 25 to 50 for adults, while children under five ride for free. Bookings can be made through the app.

Global dividends reached USD 1.8 tn last year

Global dividends increased by 6.6% y-o-y to reach USD 1.8 tn in 2024, according to the latest edition of asset manager Janus Henderson ’s Global Dividend Index (pdf). On a quarterly basis, dividends were up by 7.3% in 4Q 2024.

Big payouts from Meta, Alphabet, and Alibaba drove one-fifth of global dividend growth. Alibaba’s USD 5.1 bn payout helped lift China’s total to a record USD 62.7 bn.

The world's largest dividend payers in 2024, ranked by total payouts, were Microsoft, Exxon Mobil, HSBC, Apple, China Construction Bank, PetroChina, China Mobile, JPMorgan Chase, Chevron, and Johnson & Johnson. Together, they distributed USD 145.9 bn in dividends

Growth by sector: While dividend growth was broad-based, the financial sector led the way, with banking dividends rising USD 36.4 bn, aided by one-off special payments. Other sectors, including telecoms, construction, insurance, consumer durables, and leisure, saw gains exceeding 10%. Media companies, led by Meta and Alphabet, doubled their dividends, while Alibaba bolstered retail payouts. On the downside, mining and transport experienced a combined USD 26 bn drop, and dividends in the oil, gas, and energy sector declined by 4.1% to USD 166.2 bn.

The US led global distributions with payouts reaching USD 651.7 bn, followed by the UK with USD 90.6 bn and Japan with USD 86.0 bn.

Emerging markets saw a 9% increase in payouts y-o-y, driven by record distributions of USD 62.7 bn from China and USD 30.6 bn from India. Saudi Arabia contributed USD 16.9 bn.

Dividends to rise this year: The firm expects dividends to rise 5% to USD 1.8 tn in 2025, though a stronger USD may weigh on headline growth. The Trump administration could boost US firms but also heighten inflation risks, potentially triggering market volatility. However, corporate earnings are still expected to grow by over 10%.

TASI	11,811	-0.7% (YTD: -1.9%)
MSCI Tadawul 30	1,490	-0.6% (YTD: -1.3%)
NomuC	31,297	-0.8% (YTD: -0.6%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	30,947	+0.2% (YTD: +4.1%)
ADX	9,447	-0.9% (YTD: +0.3%)
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FTSE 100	8,680	0.0% (YTD: +6.2%)
Euro Stoxx 50	5,468	-0.9% (YTD: +11.7%)
Brent crude	USD 70.36	+1.3%
Natural gas (Nymex)	USD 4.40	+2.3%
Gold	USD 2,914	-0.4%
BTC	USD 86,167	-0.7% (YTD: -7.9%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.7% on Thursday on turnover of SAR 7.1 bn. The index is down 1.9% YTD.

In the green: Tanmiah (+4.8%), Malath Insurance (+4.3%) and Amak (+3.7%).

In the red: Mouwasat (-9.3%), Walaa (-8.0%) and Al Majed Oud (-7.4%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.8% on Thursday on turnover of SAR 34.7 mn. The index is down 0.6% YTD.

In the green: AlBattal Factory (+6.7%), Leaf (+6.5%) and Mulkia (+5.7%).

In the red: Purity (-7.1%), Horizon Educational (-6.8%) and Watani Steel (-6.3%).

CORPORATE ACTIONS-

Jana Medical converted two of its branches into wholly owned limited liability companies, after completing regulatory procedures with the Commerce Ministry on 5 March, according to a disclosure to Tadawul. The two entities are Excellent Care Company, which focuses on medical devices and supplies, and Elite Care Medical Company, which sells ambulances and medical equipment. Each company has a fully paid-up capital of SAR 100k, funded from Jana Medical’s internal resources.

Ukraine’s Zelensky to visit Riyadh on Monday ahead of US-Ukraine talks

The Kingdom will host the planned US and Ukraine talks in Jeddah this week, in a bid to support efforts ensuring “lasting peace in Ukraine,” state news agency SPA reported last Friday. Ukrainian President Volodymyr Zelenskiy will also arrive in Saudi Arabia on Monday for a meeting with Crown Prince Mohammed bin Salman ahead of talks with US officials on Tuesday, according to posts on X.

Zelensky is not participating: While Zelensky will not be attending the talks, his delegation — including FM Andrii Sybiha, chief of staff Andriy Yermak, and Defence Minister Rustem Umerov — will remain in Saudi Arabia to meet with US officials later in the week, Interfax reports, citing a Telegram message by Zelensky.

IN CONTEXT- The talks follow last week's heated exchange in the Oval Office between Zelensky and US president Donald Trump, which resulted in the White House abruptly suspending military assistance and intelligence sharing with Kyiv.

For the US side, Special Envoy Steve Witkoff, Secretary of State Marco Rubio, and National Security Adviser Mike Waltz are confirmed to attend, the Wall Street Journal reports. Witkoff said the discussions aim to establish a framework for a peace agreement to end the three-year war and initiate an initial ceasefire, after Zelensky expressed “regret” and a desire to rebuild ties with Washington.

MEANWHILE- The Organization of Islamic Cooperation's (OIC) foreign ministers welcomed Syria’s return to the organization and reaffirmed their support for the Gaza reconstruction plan at an extraordinary meeting held in Jeddah last Friday to discuss developments in Gaza, state news agency SPA reports. The meeting was attended by FM Faisal bin Farhan.

CALENDAR

MARCH

1-30 March: Ramadan.

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

10 March (Monday): Deadline for businesses subject to withholding tax to file their February tax returns.

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

16 March (Sunday): Surplus refunds for Umm Al Qura for Development and Construction’s Tadawul IPO.

17 March: Settlement date for Saudi National Bank’s USD-denominated Formosa bonds.

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

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

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

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

APRIL

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

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

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

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

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

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

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

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

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

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

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

MAY

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

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

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

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

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

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

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

JUNE

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

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

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

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

JULY

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

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

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

AUGUST

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

SEPTEMBER

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

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

23 September (Tuesday): Saudi National Day.

OCTOBER

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

NOVEMBER

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

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

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

DECEMBER

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

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

December: The Fortune Global Forum 2025, Riyadh.

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

2026

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

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

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

2027

The World Water Forum takes place in Riyadh.

The Ocean Race finishes in Amaala on the Red Sea.

Riyadh-Kudmi transmission line to be completed.

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