Of EVs, AI, and competition for the ATP's tenth big tennis event

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WHAT WE’RE TRACKING TODAY

Aramco wants to become China’s partner of choice on more than just oil

Good morning, wonderful people, and happy hump day. It’s a reasonably busy morning for news, but we’re going by asking you to read about AI for a few minutes. We all have a lot on our plates, but there are USD 40 bn worth of reasons brewing that suggest all of us need to give it a bit more time in our day.

We have three pieces worth at least a skim — or saving to your read-later app of choice (we’re still using Pocket):

Are you a banking nerd? Wondering how you should think about tech now that AI is at center stage? EnterpriseAM UAE sat down with our friend Fernando Morillo from Mashreq. Fernando has been helping banks figure out tech change since Web 1.0, first as a consultant for McKinsey (he’s an aeronautical engineer by training) and then as banker in Spain, Singapore, and now the Emirates. Fernando is a thoughtful and engaging thinker on the future of banking: Tap or click here to read part one of the two-part sitdown.

Niall Ferguson has six questions about the technological, financial, and economic future of AI. Why should you listen to him? The Bloomberg columnist and Harvard professor is a brilliant polymath whose works include The Ascent of Money, The War of the World, and Civilization. This six question:

Is there an endpoint to Moore’s Law?
Who makes the money?
Are we witnessing an AI bubble?
Will we get to artificial general intelligence (AGI) with enough computational capacity?
Does AI cause mass job destruction?
Will there be resistance to AI adoption?

BIg-company CFOs are starting to ask: How much is all of this investment in AI costing? And what’s the ROI? Read more in the Wall Street Journal.

SPEAKING OF AI- Bankrupt crypto exchange Anthropic has sold a USD 884 mn stake, and as we suggested earlier this week would be the case, Saudi isn’t getting a piece of it. UAE wealth fund Mubadala is buying more than 50% of it.

HAPPENING TODAY-

IPO WATCH- Al Mohafaza Education will ring the bell on Nomu, with shares opening at SAR 18.00 apiece. The education provider has sold 1.6 mn shares, good for a 20% stake of the company.

The Green Falcons will play Tajikistan at 6pm local time at the Central Republican Stadium in the group stage of the World Cup qualifiers. The reverse fixture took place last Thursday and saw us edge the Tajiks out by one goal, bringing our leaderboard score to 9 points after three matches.

WEATHER- Riyadh is looking at plenty of sunshine today and a strong breeze with temperatures peaking at 23°C before falling to a low of 16°C.

It’s more of the same in Taif, where you can expect a daytime high of23°C and an overnight low of 10°C.

AlUla is no exception with its fair share of warmth and sunshine at a high of 27°C before dropping to a low of 14°C.

So, when do we eat? Maghrib prayers are at 6:08 pm in the capital city, and you’ll have until 4:32 am to hydrate and caffeinate ahead of fajr.

WATCH THIS SPACE-

#1- A new Saudization target for consulting services went into effect yesterday, according to a post on X. The new 40% target rate is part of the second phase of localizing consulting jobs in fields including financial, architectural, engineering, healthcare, and management consulting services. A Saudization rate of 35% for dental professionals went into effect earlier this month.

#2- Chinese internet services giant Tencent Holding wants to up its cloud business game in Saudi and the UAE, Senior Executive Vice President Dowson Tong told Bloomberg in Riyadh. The Shenzhen-based firm is particularly interested in offering cloud storage services to local gaming companies, as a starting point for further investments in computing power for AI applications, and developing an Arabic language model. “We are going to announce more throughout the year,” said Tong.

Tencent will face competition here, considering the Alibaba-STC partnership that will see the Chinese tech giant earmark USD 238 mn to develop cloud computing infrastructure in the Kingdom. Amazon Web Services, meanwhile, recently unveiled a plan to invest more than USD 5 bn in cloud infrastructure here.

#3- ITFC set to provide loan to Bangladesh Petroleum: Jeddah-based Islamic Trade Finance Corporation (ITFC) signed an agreement to provide a USD 1.4 bn loan to Bangladesh Petroleum, state news agency SPA reported yesterday. The loan aims to “bolster energy reliance in Bangladesh and improve energy infrastructure,” according to SPA. No further details were provided.

#4- The Environment, Water, and Agriculture Ministry has updated guidelines (pdf) for the drilling of groundwater wells. The rules outline licensing steps and penalties for violations of regulations.

Could it be energy imports? The ITFC signed a USD 2.1 bn agreement with Bangladesh earlier this year to finance oil and gas imports as the South Asian nation struggled to pay for fuel imports on the back of its FX crisis.

MORNING MUST READ-

Aramco wants to become China’s partner of choice on more than just oil: “We [Aramco] are not mere investors, and China is not just a market to us. We want to be a partner of first resort in China’s economic development journey, as new opportunities clearly come into focus,” the oil giant’spresident and CEO, Amin Nasser, said at the two-day China Development Forum in Beijing which wrapped up yesterday.

Beyond energy, Aramco and China could work together on everything from chemicals and low-emission tech to sustainable development, renewables, tech-powered industries, and venture capital, said Nasser. “Here we have noted with keen interest what Premier Li Qiang recently called the “strategic emerging industries and future-oriented industries,” explaining that he sees five key areas, in addition to energy, where “win-win investment and cooperation opportunities are expected to be enormous.”

SPORTS-

#3- Do we have competition on tennis? The Association of Tennis Professionals has opened up the bidding to Emirati, Qatari, and Australian investors for the hosting of at tenth Masters 1000 event, the Telegraph reports.

Background: Saudi had offered USD 1.3 bn to host the tournament.

What’s next? The newspaper says bids could come in separately from Dubai and Abu Dhabi and that officials in Riyadh have pulled the USD 1.3 bn offer and will instead work on a new pitch as part of the tendering process.

When will we know? The ATP plans to discuss the bids in five weeks at the Madrid Masters.

OIL WATCH-

Not playing the phaseout game: OPEC sees a fossil fuel phaseout as “wrong and unrealistic,” its Secretary General Haitham Al Ghais told Kuwait News Agency (KUNA) in an interview. "It would also have catastrophic impacts on mns of people losing their jobs. It would also put manufacturing worldwide to a halt, slow global economic growth and worsen energy poverty in many countries…,” he said. Instead, OPEC members’ expertise in the industry should be utilized in developing innovative solutions to lower emissions.

SOUNDBITE- Oil — “the lifeblood of modern life” — is fueling the production of renewable energy: “If oil disappeared, this would also affect the production of renewable energy, such as manufacturing of wind turbines and solar panels, as their production is linked to oil products,” Al Ghais said.

THE BIG STORY ABROAD-

It’s a big morning for politics and comparatively quiet on the business front.

In politics: Israeli officials have canceled a visit to Washington after the US abstained from a UN Security Council ceasefire vote. Meanwhile, the commentariat is obsessing over Donald Trump’s courtroom battles. The presumptive Republican presidential nominee can post a smaller USD 175 mn bond as he looks to appeal a civil fraud case — but will face criminal trial this April (sooner than he had hoped) in a hush-money case.

Sign of the times? French lender Credit Agricole said yesterday that it won’t fund two major LNG projects, one in Papua New Guinea and the other in Mozambique, Reuters reports.

This really stands out: Credit Agricole was the original financial advisor to both projects, which are being led by bid names including ExxonMobil, Eni, and TotalEnergies.

In context: The move comes as some big global banks step away from new hydrocarbon projects. Barclays said last month that it would stop “direct financing of new oil and gas fields and restrict lending more broadly to energy companies expanding fossil fuel production.”

CIRCLE YOUR CALENDAR-

The four-day Townhall Expo is slated for Thursday, 2 May, at Holiday Inn Hotel in Riyadh.

The three-day Smart Future Expo will open its doors on Monday, 13 May, at the Riyadh Front Exhibition and Convention Center.

Projects tracking and analysis platform Meed is hosting the Saudi Giga Projects 2024 forum on Monday, 13 May, at Crowne Plaza Riyadh. Meed will also be hosting its annual MENA Construction Summit 2024 on Tuesday, 14 May.

The two-day Future Projects Forum kick starts on Monday, 20 May, at the Four Seasons Hotel in Riyadh.

Cityscape Global is slated for 11-14 November 2024 in Riyadh.

^^ Check out our full Calendar on the web for links to all of these conferences.

Modern Mills to ring the bell on Tadawul’s main market tomorrow

Modern Mills Company (MMC) will ring the bell on Tadawul’s main market tomorrow, according to a statement by Tadawul yesterday. The flour milling company, previously known as Milling Company 3, is wrapping up an IPO that saw it sell a 30% stake — 20 points of it to institutions and the rest to retail investors.

MMC priced the IPO top of the range at SAR 48.00 a share, valuing the company at a SAR 3.9 bn. The IPO saw strong demand from retail investors with a 22x oversubscription rate. Selling shareholders will own a combined 69% of Modern Mills after the transaction; they include Mada International Holding, Al Ghurair Foods Company, and Masafi Company.

What to expect on Wednesday: Shares will be allowed to trade within a ±30% band on each of the first three days before being capped at no more than 10% up or down after that before circuit breakers kick in. (All shares on Tadawul are subject to the 10% up-or-down rule.)

Growth plans: MMC is looking to invest in its infrastructure to take more share of the flour and flour-derivatives market. It is also looking at new products and what related categories it can push into. It is interested in stepping up flour exports and expanding its animal feed sales beyond the Gulf to global markets.

All part of a wave of privatization + IPO bonanza for the milling firms: MC3 is among one of several state-owned flour milling firms that were sold to the private sector by the government in recent years under its privatization scheme for the industry. It was sold to a consortium of investors for SAR 750 mn in 2020. Since then, the privatized millers have sought share sales, with First Milling going public in May with a USD 266 mn IPO.

ADVISORS- HSBC Saudi Arabia is quarterbacking the transaction as financial advisor, joint bookrunner, underwriter and lead manager, while Emirates NBD Capital KSA is joint bookrunner and underwriter. Al Rajhi Bank and SNB are receiving agents. Moelis & Company Saudi are advisors to selling shareholders.

Another milling company IPO is in the works: The Fourth Milling Company (MC4) is set to IPO in 1H 2024. MC4 tapped Riyad Capital as financial advisor for the transaction back in January.

RASAN TO GO PUBLIC-

Rasan set for listing on main market: Fintech company Rasan has received Capital Market Authority (CMA) approval to sell a 30% stake on Tadawul’s main market, according to a statement by the regulator yesterday. No further details were provided, but the statement said Rasan’s prospectus would be published “within sufficient time prior to the start of the subscription period”.

About the company: Established in 2016, Rasan is a fintech firm focused on ins. and banking technology across the Gulf. It aims to create ins. and banking solutions to streamline daily financial transactions by individuals and businesses. Its digital solutions include Tameeni, Awal Mazad and others. It has HQs in Saudi, the UAE, and Egypt, according to its website.

Saudi’s PIF doubles down on US EV maker Lucid Group with USD 1 bn follow-on investment

A unit of the Public Investment Fund is buying an additional USD 1 bn worth of stock in US luxury EV manufacturer Lucid Motors, according to a statement yesterday. Lucid raised USD 3 bn in capital in 2Q 2023 of which USD 1.8 bn came from the PIF. PIF unit Ayar Third Investment Company will execute the transaction, which will see it buy convertible preferred stock.

The potential proceeds will finance the company’s capex and working capital, among other things, the statement reads.

What they said: “With their support, we remain focused upon accelerating our growth via deliveries, executing key business initiatives with relentless focus upon cost, and launching our game-changing Gravity SUV later this year," said Lucid CEO and CTO Peter Rawlinson.

Market reacts quickly: Lucid’s share prices rose 5.4% to USD 2.90 a piece at yesterday’s close. Lucid shares are down 31% since the beginning of the year, in large part reflecting the belief among some pundits that US appetite for EVs — which rose to a peak during covid — has fallen off. A number of high-profile conventional car makers have said in the past two months that they’re downsizing their electric vehicle plans.

Uh, Enterprise? What’s convertible preferred stock? You can think of it as a kind of hybrid between equity and a bond. PIF’s Ayar is giving Lucid USD 1 bn. There are three keys here: “preferred” means that Ayar gets dividend payments if Lucid starts making them, just like regular preferred stock. But Ayar is also locking in upside: It’s not buying common stock in the company. If the value of Lucid’s shares go above the price at which Ayar bought in, it can — if it wants — swap its convertible preferred stock for ordinary shares and book the difference in value as gain on the investment.

The statement doesn’t get into any conditions on the conversion or the implied price per share at which Ayar is buying in.

Digging beyond PIF’s deep pockets: Earlier this month, Lucid CEO Peter Rawlinson said his company cannot depend on the “bottomless wealth” of its Saudi owner and therefore needs to raise funds this year. “It’s inevitable we need to raise in the future, it’s just a question of when,” Rawlinson told the salmon-colored paper. “We need to pick our moment.”

REMEMBER- Lucid Motors saw its net loss for 2023 come in at USD 2.8 bn, more than double the USD 1.3 bn it lost the year before. Revenues dipped 2% y-o-y to USD 595 mn in 2023. For the fourth quarter, the automaker’s losses came in at USD 654 mn, against USD 473 mn in the comparable period.

Italy’s Fisia Italimpianti begins construction of Aramco’s multi-bn EUR Zuluf water treatment plant

Aramco’s Zuluf water treatment plant advances forward: Italian contractor Fisia Italimpianti — a subsidiary of Webuild Group — broke ground on the EUR 408 mn water treatment plant for the Zuluf onshore oil plant complex owned and operated by oil giant Aramco last week, it said in a statement yesterday.

The details: The Zuluf water treatment plant, located in the Eastern Province, will treat, degas, and filter water and then reinject the treated water into oil wells.

SMART POLICY- The reinjection in offshore wells by the water treatment plant will help boost the production of the field’s crude oil, according to the Italian contractor. The Zuluf oil field currently produces 800k barrels of Arab medium crude per day, with an expansion project underway to boost production further to reach 1.4 mn bpd.

REFRESHER- Aramco awarded two contracts for the development project to Fisia Italimpianti last year, marking the Italian company’s first foray into the oil and gas sector. The first EPC contract includes the construction of the plant, while the second sees the Italian firm forming a JV with Abdul Latif Jameel Energy-backed Almar Water Solutions, Aljomaih Energy & Water, and Pennsylvania-based Aquatech International to operate and maintain the plant for a 25-year period. The Italian firm holds a 20% stake in the JV.

This is not Webuild’s first venture here: The Italian company’s parent company is involved in several mega projects in the Kingdom, including 57-km of the planned high-speed railway line connecting Oxagon and The Line in Neom. It was also awarded a contract to build a lake and architectural works at Neom’s Trojena mountain resort. It is also building 42 km of Line 3 of the planned Riyadh underground metro and involved in the construction of basement works of Diriyah Square in the capital.

Energy and Water Academy set to unroll world’s first training program for green hydrogen workers

We’re getting the world’s first training program for green hydrogen workers: The Energy and Water Academy (EWA) has launched a program aimed at training local talent at green hydrogen companies in Neom, Jubail and other cities, CEO Tariq Alshamrani told Al Eqtisadiah in an interview earlier this week. EWA is the only academy globally offering the specialized training, Alshamrani said, adding that the program was accredited by the government's Technical and Vocational Training Corporation (TVTC) and British vocational education provider City & Guilds. EWA was established by renewables giant Acwa Power and TVTC in 2009.

Details on the program: The new two-year program, set to kick off by year end, will include a cohort of between 50 to 100 male and female trainees at green hydrogen companies across the Kingdom.

The rationale: The program would help serve mega developmental projects, boost sustainability and drive momentum for energy transformation, Alshamrani said in a post on X.

SMART POLICY- The Kingdom launched its national green hydrogen production strategy in 2020 as it eyes to become a top supplier of the clean fuel globally. It set a target to generate 1.2 mn tons of green hydrogen and supply 10% of global hydrogen demand by 2030. It aims to generate 50% of its electricity from renewable energy sources by the end of the decade.

Neom’s utility scale will help realize the target: Neom Green Hydrogen Company, a joint venture between Neom, Acwa Power, and US-based gas supplier Air Products, is setting up a USD 8.5 bn utility-scale green hydrogen facility with a 1.2 mn ton annual green ammonia production capacity powered by nearly 4 GW of renewable power.

BACKGROUND- EWA is also running graining programs on desalination and renewable energy in partnerships with Engie and Acwa Power. It’s looking to roll out a nuclear energy training program in partnership with Abdullah City for Atomic and Renewable Energy.

Hyundai Motor Group to validate, deploy a host of green mobility solutions at RSG resorts

RSG to deploy Hyundai’s green mobility solutions at its resorts: The PIF-owned developer of regenerative-tourism destinations Red Sea Global (RSG) has inked a MoU with Korea’s Hyundai Motor Group that will see them validate Hyundai’s eco-friendly mobility solutions at RSG’s resorts in the Kingdom, according to a joint press release. No financial details were made publicly available.

What to expect in the short, long term: The two companies will focus on validating some of Hyunda’s eco-friendly mobility solutions including battery and hydrogen fuel cell vehicles by deploying them at RSG resorts. Meanwhile, the agreement will also incorporate self-driving vehicles, advanced air mobility, and maritime vessels.

REMEMBER- Developer Red Sea Global has converted its full fleet of land vehicles to operate solely on low-carbon biofuel or electricity, becoming the first in the Kingdom to operate an eco-conscious supply chain. RSG has rolled out a fully-electric and remote-controlled robot last January to remove plastic waste and debris at its luxury tourist destination Red Sea project

What’s next? The PIF-owned Red Sea International Airport is ready to receive international flights, with three of the destination’s hotels set to open this year, along with the separate Thuwal Private Retreat. Meanwhile, the 4k square kilometer AMAALA is set for launch in 2025.

More FY 2023 earning from Avalon Pharma, Savola and Jabal Omar

It’s the last mile for this earnings season on Tadawul’s main market and parallel market Nomu as we approach the 31 March deadline for the reporting of 4Q 2023 results.

AVALON PHARMA-

Tadawul-listed Avalon Pharma’s net income grew 10.7% y-o-y to SAR 65.8 mn in 2023, it said in a disclosure to Tadawul. Revenues were up 11.8% y-o-y to SAR 338.4 mn over the same period. The pharma giant attributed the rise in net income to higher revenues driven by increased sales volumes and a reversal of expected credit loss provision by SAR 1.6 mn despite an uptick in financing costs.

SAVOLA-

Savola’s net income rose 21.1% y-o-y to SAR 899.2 mn in 2023, it said in a disclosure to Tadawul. Revenues were down 4.4% y-o-y to SAR 26.8 bn. The Kingdom’s largest food products company attributed the rise in net income to higher income from its food processing, retail and frozen food segments and a higher share of income from associates.

JAMJOOM-

Jamjoom Pharma’s net income grew 70.7% y-o-y to SAR 292 mn in 2023, it said in a filing to Tadawul. Revenues were up 20% to SAR 1.1 bn.

JABAL OMAR-

Jabal Omar Development turned into the black with a net income of SAR 37.6 mn in 2023, up from a net loss of SAR 352 mn. Meanwhile, revenues were up 56% y-o-y to SAR 1.3 bn, it said in a disclosure to Tadawul. The company made a correction to the net income.

NOFOTH-

Nofoth Food Products’ net income was up 35.5% y-o-y to SAR 42.7 mn in 2023, and revenues rose 14% y-o-y to SAR 308 mn, it said in a disclosure to Tadawul.

NETWORKERS-

Saudi Networkers Services’ net income increased 21.5% y-o-y to SAR 36.6 mn in 2023, and revenues rose 15.9% y-o-y to SAR 554.7 mn, it said in a disclosure to Tadawul.

Meanwhile, the company has approved a dividend payout of SAR 14 mn for 2H 2023 at SAR 2.4 per share, it said in a separate disclosure.

AME-

AME Company for Medical Supplies’ net income was up 25.6% y-o-y to SAR 33.5 mn in 2023, and its revenues rose 15.6% to SAR 223.3 mn, it said in a disclosure to Tadawul.

Meanwhile, the company has approved a dividend payout of SAR 14 mn at SAR 2 per share for 2023, it said in a separate disclosure.

SAUDI GROUND SERVICES-

Saudi Ground Services turned into the black with a net income of SAR 211.5 mn in 2023, up from a net loss of SAR 244.5 mn in the previous year, it said in a filing to Tadawul.

MAKKAH CONSTRUCTION-

Makkah Construction and Development’s net income doubled y-o-y to SAR 334 mn in 2023, it said in a regulatory filing to Tadawul.

Meanwhile, the developer has recommended a dividend payout of SAR 247 mn at SAR 1.5 a share for 2023, it said in a separate filing to the exchange.

BASIC CHEMICAL INDUSTRIES-

Basic Chemical Industries’ net income fell 37.5% y-o-yto SAR 44 mn in 2023, while its revenues were up 10% to SAR 741 mn, it said in a disclosure to Tadawul.

MOUWASAT MEDICAL SERVICES-

Mouwasat Medical Services’ net income climbed 9.7% y-o-y to SAR 657.7 mn in 2023, while its revenues jumped 15.9% y-o-y to SAR 2.7 bn, it said in a disclosure to Tadawul.

AL JOUF CEMENT (AJCC)-

Al Jouf Cement (AJCC)’s net income nearly tripled to SAR 84.7 mn in 2023, while its revenues were up 19.7% to SAR 301.5 mn, it said in a disclosure to Tadawul.

BUDGET SAUDI-

Automobiles rental firm United International Transportation (Budget Saudi)’s net income rose 10% y-o-y to SAR 277.2 mn in 2023, while its revenues grew 34.4% y-o-y to SAR 1.4 bn, it said in a disclosure to Tadawul. Their BoD has recommended a dividend payout of SAR 71.2 mn at SAR 1 per share, it said in a separate disclosure.

SADAFCO-

Food manufacturer Saudia Dairy and Foodstuff Co (SADAFCO)’s net income was up 47.2% y-o-y to SAR 325 mn in 9M ending in December, while its revenues grew by 6.7% y-o-y to SAR 2.1 bn, according to a disclosure to Tadawul.

News from Al Jouf, Zamil, Saudi Reinsurance

#1- Al Jouf Agricultural Development reappoints chairman, vice: Al Jouf Agricultural Development (Jadco) has reappointed Bader Hamed Alaujan (Linkedin) as its chairman, it said in a disclosure to Tadawul yesterday. Alaujan has been serving as Jadco’s Chairman since March 2021. Jadco also reappointed Rasheed bin Rashed bin Owain (bio) as vice chairman.

#2- Zamil Industrial Investment Co. has appointed Ahmed Zaatari (Linkedin) as its new CEO, effective today, it said in a disclosure to Tadawul yesterday. Zaatari replaces Mohammad Sulaiman Al Harbi (bio), who was appointed earlier as managing director. Zaatari joined Zamil Industrial subsidiary Zamil Air Conditioners in 2003 as a vice president, and held the position until 2015, before being promoted to president of the HVAC sector.

#3- Saudi Re has named Ahmed Al Jabr (LinkedIn) as its acting deputy CEO, effective Monday, 1 April, it said in a disclosure to Tadawul. He will be taking on the role following the resignation of former CEO Fahad Al Hesni (Linkedin). He joined the company in 2011, having served previously as chief operating officer and director of strategy and marketing.

Mawani adds new shipping service to boost connectivity with East Asian ports. Plus: healthcare, procurement, real estate

LOGISTICS-

Another shipping service added to King Abdul Aziz Port: The Saudi Ports Authority (Mawani) has added a new shipping service — Galex, by Emirates Shipping Line — to its King Abdul Aziz Port in Dammam in a bid to improve connectivity to East Asian ports, according to a statement earlier this week. The new service, which will offer a capacity of up to 3k TEUs, will connect the Kingdom to eight regional and international ports: China’s Shanghai, Xiamen, Dachan Bay, and Qingdao, Malaysia’s Klang, South Korea’s Busan, Oman’s Sohar, and the UAE’s Khorfakkan.

PROCUREMENT-

#1- Group Five Pipe will supply steel pipes for the Ras Al Khair water transmission system in Riyadh under a SAR 3 bn contract with state water provider Saline Water Conversion Corporation (SWCC), it said in a disclosure to Tadawul yesterday. The agreement — which spans a period of 22 months — will see the pipemaker manufacture spiral-welded steel pipes for the transmission system providing water from Ras Al Khair to Riyadh.

#2- Dammam-based steel producer East Pipes will also manufacture and supply steel pipes to SWCC under a SAR 230 mn contract, it said in a disclosure to Tadawul yesterday. No further details were provided.

HEALTHCARE-

Al Modawat Specialized Medical will purchase an MRI scanner from medical device manufacturer and distributor Cigalah Healthcare under a SAR 4.4 mn contract, it said in a disclosure to Tadawul yesterday. The procurement and installation period has been set at six months. The contract also includes a three-year warranty and an additional seven-year maintenance period.

REAL ESTATE-

Mulkia Investment to acquire new real estate property for its Gulf REIT fund: Gulf Real estate REIT’s fund manager, Mulkia Investment, has signed an agreement to acquire a new mixed-use residential and commercial tower in Riyadh for SAR 200 mn, it said in a disclosure to Tadawul yesterday. The acquisition comes in a bid to diversify the geographical distribution of the properties under the fund, and is expected to have a “positive effect” on the fund’s revenues, the disclosure said.

TRANSPORT-

Saudi + Bahrain sign MoUs on transport, logistics: Transport and Logistics Minister Saleh AlJasser signed two MoUs with Bahraini counterpart Mohamed bin Thamir AlKaabi to bolster joint cooperation in transportation and logistics, state news agency SPA reported.

POULTRY-

Ukraine’s MHP gets greenlight for poultry farm near Riyadh: Ukraine’s largest poultry producer and exporter MHP has obtained approval from the Antimonopoly Committee of Ukraine to set up a SAR 200 mn poultry farm near Riyadh under a joint venture with local food group Tanmiah ’s subsidiary, Desert Hills for Veterinary Services (DVH), Poultry World reported yesterday.

Background: The approval comes months after DVH signed a shareholder agreement with MP for the poultry farm, which will have an initial capacity of 1 mn parent stock to produce c. 175 mn hatching eggs a year. The JV — in which DVH will hold a majority 55% share — is looking to develop a state-of-the-art hatchery and poultry feed mill to realize its targets. Both firms signed the MoU for the project back in February 2023.

The Kingdom just hit a poultry production high: Local poultry production reached a record high of 100 mn kg in February, state news agency SPA reported yesterday. Dairy giant Almarai plans to spend SAR 7 bn on poultry expansion as part of a SAR 18 bn strategic plan over the next five years to maximize sales.

Donald Trump gets a USD 3 bn bump as Truth Social goes public with a spac

Planet Finance to Trump’s rescue? New Nasdaq company Trump Media & Technology Group Corp. (gotta have “group” and “corp” at the end when your asset is a social media platform nobody uses) could be The Donald’s ticket out of a tight spot. The company now owns Trump’s social media network — called Truth Social — after shareholders of spac Digital World Acquisition Corp voted to merge.

Think of Trump Media as a proxy for how Trump’s base views his candidacy: The Nasdaq-listed company’s shares were up more than 30% yesterday after an appeals court gave Trump 10 days to cough up the USD 175 mn bond in the civil case (above).

Sound smart: Trump’s stake in Trump Media? It’s worth north of USD 3 bn now — but he faces a six-month lockup. Shares start trading todayunder the ticker DJT.

Also happening today on Planet Finance:

Adam Neumann is looking to buy WeWork back for about USD 600 mn, looking to regain the company from which he stepped down in 2019. The company had been valued as high as USD 47 bn before it filed for bankruptcy last November. The Wall Street Journal broke the news, which has since been picked up by everyone in the global business press.

Add this to your streaming queue: AppleTV+ made a limited release series on the implosion of the coworking giant — WeCrashed.

AND- Chocolate is about to get even more expensive. Cocoa futures have soared 60% this month to more than USD 9k per ton — making it more expensive than copper “as a supply crunch grips the market and chocolate makers grapple for beans,” Bloomberg reports.

THE MARKETS THIS MORNING-

Asian shares are largely in the green and stock futures are largely flat this morning, pointing to a muted open on Wall Street and in Europe later today. CNBC says traders are “taking a breather” on this holiday-shortened week. US benchmarks look set to close March with their fifth straight month of gains, while Korea’s Kospi just hit a two-year high.

TASI	12,657	-1.1% (YTD: +5.8%)
MSCI Tadawul 30	1,592	-1.3% (YTD: +2.7%)
NomuC	27,237	+1.5% (YTD: +11%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	29,344	+1% (YTD: +17.9%)
ADX	9,319	-0.02% (YTD: -3%)
DFM	4,282	+0.03% (YTD: +6%)
S&P 500	5,218	-0.3% (YTD: +9.4%)
FTSE 100	7,918	-0.2% (YTD: +2.4%)
Euro Stoxx 50	5,044	+0.3% (YTD: +11.6%)
Brent crude	USD 86.75	+1.6%
Natural gas (Nymex)	USD 1.62	-2.7%
Gold	USD 2,198.2	+1%
BTC	USD 70,238.72	+5.1% (YTD: +158.7%)

THE CLOSING BELL: TADAWUL-

The TASIfell -1% yesterday on turnover of SAR 8.2 bn. The index is up 5.8% YTD.

In the green: Saudi Cable (+10%), Atheeb Telecom (+10%) and Alsagr Ins. (+9.9%).

In the red: East Pipes (-6.8%), AlBaha (-6.7%) and Middle East Specialized Cables (-5.4%).

THE CLOSING BELL: NOMU-

The NomuC rose 2% yesterday on turnover of SAR 55 mn. The index is up 11% YTD.

In the green: AlRashid Ind. (+22.7%), Saudi Networkers Services (+19%) and Group Five (+155%).

In the red: Sure Global Tech (-7.6%), AME (-3.4%) and Foods Gate Trading (-3.2%).

CORPORATE ACTIONS-

Shareholders of Riyad Bank have signed off a dividend payout of SAR 2.25 bn at SAR 0.75 apiece for 2H 2023 as per the BoD’s earlier recommendation, the lender said in a regulatory filing (pdf) to Tadawul. The bank will distribute dividends next Tuesday, 2 April.

Shareholders of Al Rajhi Bank have approved its BoD’s recommendation to distribute dividends of SAR 4.6 bn at SAR 1.15 per share for 2H 2023, it said in a regulatory filing (pdf) to Tadawul. This brings total dividends for the year to SAR 9.2 bn. The distribution period begins on Wednesday, 2 April.

Saudi welcomes UNSC Gaza immediate ceasefire resolution + Houthis warn against Saudi support of US attacks

The Kingdom has welcomed a UN Security Council resolution calling for an immediate ceasefire in Gaza during Ramadan — the first since similar resolutions were vetoed by the US since Israel’s war on Gaza in October, state news agency SPA reported yesterday. We have more on the aftermath of the ceasefire resolution in What We’re Tracking Today, above.

The Houthis in Yemen are warning against Saudi support of US strikes against the group, Bloomberg reported yesterday. “We have sent a message to Saudi Arabia that it will be a target if it allows American fighter jets to use its territory or airspace in their aggression on Yemen,” Mohamed Ali Al Houthi, a senior leader in the Iranian-backed group, said in a televised interview.

Background: The Kingdom has so far distanced itself from US-led military action against the Houthis, as it looks to disentangle itself from a protracted military conflict that saw it battle the Houthis for the best part of a decade, with a fragile truce concluded in 2022, according to Bloomberg.

CALENDAR

APRIL

8-11 April (Monday-Thursday): Saudi Super Cup, Abu Dhabi.

10 April (Wednesday): Eid al-Fitr

14-21 April (Sunday-Monday): IMF and World Bank spring meetings, Washington, DC

16 April (Tuesday): FEI World Cup Equestrian, Riyadh.

28-29 April (Sunday-Monday): World Economic Forum Special Meeting, Riyadh.

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

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

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

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

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

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

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

5 June (Wednesday): World Environment Day.

Signposted to happen sometime in June:

Eid Al-Adha (national holiday)

AUGUST

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

SEPTEMBER

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

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

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

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