PIF deploys USD 6.2 bn in 9M 2025, putting it fourth among MENA SWF

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Riyadh International Book Fair begins today

Good morning, ladies and gentlemen. We have another rather busy day with which to close out the week, with a little bit of everything: Leading our newswell this morning is the latest data on sovereign wealth funds in the region, where the Public Investment Fund takes the fourth spot in terms of overall activity. Meanwhile, we also have updates on the Cultural Investment Conference, Bahri’s latest bulk fleet expansion, and regulations for SPACs to hit Nomu. Let’s dive in.

HAPPENING TODAY-

The Riyadh International Book Fair kicks off today and runs through this Saturday at Princess Nourah Bint Abdul Rahman University. The event features some 2k publishing houses from over 25 countries, with book signings, children’s programs, and new business zones for publishers and literary agents also on the agenda.

WEATHER- Two more days of rain are expected over Asir, with moderate to light rain over Jazan, Makkah, and Al Baha. Riyadh is expected to see temperatures as high as 36°C and as low as 26°C, while Jeddah’s mercury will go up to 36°C before cooling down to 28°C, and Makkah will witness a 42°C high and a 30°C low.

PSAs-

REMINDER- Taxpayers can benefit from fine cancellations and penalty exemptions until 31 December under an initiative from the Zakat, Tax, and Customs Authority (Zatca), according to a statement published yesterday by the authority. Zacta extended the initiative for six additional months in June.

Government bodies, financing and ins. corporations, and individuals now have access to vehicles’ indicative prices that are updated according to market changes via the national platform Marjea, the Saudi Authority of Accredited Valuers (Taqeem) posted on X.

Licenses for pilgrim accommodation in Makkah and Madinah during the 2026 Hajj season will now be issued through the temporary hostel licensing service, the Tourism Ministry said on X yesterday. The new system requires applications via the Nusuk Masar platform and licensing through the Tourism Ministry’s platform before 1 February 2026. The rule excludes hotels with year-round licenses.

WATCH THIS SPACE-

Canada Medical secures nod to move up Tadawul’s ranks: Nomu-listed healthcare provider Canadian Medical Center (CMC) lined up approval from the Saudi Exchange to transfer its SAR 77 mn share capital to main market Tadawul, according to a bourse statement. CMC first announced plans to graduate from Nomu in March of last year, when it tapped Al Rajhi Capital to advise on the transition. The company’s stock rose 4.6% to SAR 7.7 at yesterday’s close.

What it takes: To transition from Nomu to the main market, a company must have been listed on Nomu for at least two years and satisfy all main market listing conditions — except for market capitalization, where a lower threshold of an average SAR 200 mn over the past six months applies.

UPDATES-

#1- India’s antitrust regulator greenlights Salic’s majority grab of Olam Agri Holdings: The Competition Commission of India (CCI) signed off on Saudi Arabia’s Salic — the food and agri investment arm of the Public Investment Fund (PIF) — raising its stake in Singapore-based Olam Agri Holdings to 80% for USD 1.78 bn, Business Standard reports.

Salic’s India footprint: Through its 9.2% stake in LT Foods (Daawat basmati rice brand), Salic has exposure to India’s FMCG market. Separately, Olam Agri operates in India as a wholesale supplier of agri-commodities, with retail exposure limited to basmati rice.

The transaction, first announced in February, raises Salic’s holding from 35.4% acquired in 2022, and comes with a call option to scoop up the remaining 20% over the next three years from Singapore-listed food conglomerate Olam Group.

#2- The 3 GW Egypt-Saudi electricity interconnection project will be up and running by the end of the year, Egyptian Electricity Minister Mahmoud Esmat told Asharq Business. The project is now 92% complete, with just testing and the installation of the final connections left, Esmat added.

DATA POINTS-

The Saudi Central Bank's (Sama) total assets climbed to nearly SAR 1.98 tn in August 2025, up SAR 61.2 bn y-o-y and SAR 71.8 bn m-o-m, Argaam reports. The increase came despite a 4% annual drop in its largest holding — foreign securities — which fell to SAR 990 bn.

The breakdown: Sama’s asset allocation was led by investments in foreign securities, making up 50% of the total, followed by deposits with banks abroad (20.8%), foreign currencies and gold (14.6%), and other assets (13.2%).

OIL WATCH-

Aramco cut its October contract prices for liquified petroleum gas (LPG) to the lowest levels since August 2023, trimming propane to USD 495 per ton and butane to USD 475 per ton, Bloomberg reported yesterday. The move caught traders off guard, coming in around USD 50 below their market expectations.

Future volumes in question: The price drop follows hesitancy among term buyers to lock in the same volumes from Aramco for 2026 that they had agreed to this year, traders told the business news service. Negotiations over next year’s term supply are still underway, with traders suggesting that the October cut signals Aramco may keep prices favorable in the year ahead.

The lower contract price sheds light on the intensifying competition between Middle Eastern suppliers and US exporters. This “supply battle” comes after the US shipped a record volume of LPG to Indonesia last month — a key demand hub alongside India, Samantha Hartke, head of market analysis for the Americas at Vortexa, told the news service.

ALSO- The long-standing “Saudi put” that once kept oil markets from sliding too low has faded, with the Kingdom flooding the market this year even as futures slumped into the USD 60s, Bloomberg argued. Instead, China has quietly taken up the stabilizing role by stockpiling and pulling excess barrels from the market, diverting them into strategic reserves. By absorbing supplies that might otherwise swell visible in Western inventories, China has muted downward pressure on global benchmarks.

That shift leaves prices unusually reliant on China’s stockpiling appetite. For now, it’s offsetting forecasts of a looming glut through next year, but traders warn that if Chinese reserve building slows, the market could face a sharper correction than current prices suggest.

By the numbers: The kingdom’s crude exports climbed to 6.42 mn bbl / d in September — the highest in a year and a half — Bloomberg reports, citing its tanker-tracking data. Shipments rose by just over 600k bbl / d, compared to August, indicating that the global market is finally receiving the Kingdom’s share of Opec+ output hikes. However, Saudi Arabia was expected to export less crude oil to China in September, down from August volumes that were at a more than two-year high.

SPORTS-

United eye Saudi trip: Manchester United is considering playing a mid-season friendly in the Kingdom as the club looks for new ways to raise revenue after missing out on Champions League football and posting another annual loss, The Athletic reports. Talks are still at an early stage, with Riyadh Season seen as a possible platform for the match, though no agreement has been reached.

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THE BIG STORY ABROAD-

All eyes are still on the US shutdown, which began early yesterday morning, as well as on Israel’s interception of vessels from the Gaza aid flotilla.

The shutdown is expected to last at least three days, with the Senate out of session today for Yom Kippur and only expected to meet again on Friday. During this time, White House Budget Director Russell Vought reportedly said the government plans to terminate workers, while some USD 26 bn in funding for Democratic states has been frozen. US President Donald Trump had warned that he would use the funding gap to target “Democrat things.” (Reuters | Bloomberg | CNBC)

Israel intercepted a number of vessels from the Global Sumud Flotilla, which was on its way to Gaza to deliver aid, moving some of the activists on board to an Israeli port. The passengers also said Israel was using “active aggression” on their fleet and trying to sink one of the boats. (Reuters | Guardian)

PIF ranked fourth in MENA sovereign investment activity in 9M 2025 with USD 6.2 bn in investments

The Public Investment Fund (PIF) ranked fourth in MENA sovereign investment activity in 9M 2025, deploying USD 6.2 bn, according to a Global SWF report. Abu Dhabi’s Mubadala led the pack with USD 17.4 bn, followed by the Abu Dhabi Investment Authority (Adia) with USD 9.6 bn, while ADQ placed fifth with USD 4.8 bn.

Inbound leader: The PIF led MENA sovereign investors in total inbound investments since inception, deploying USD 15.9 bn across 12 transactions. ADQ ranked second with USD 9.5 bn from 27, Mubadala third with USD 9.3 bn from 27, Adia seventh with USD 3.4 bn from five, and the Investment Corporation of Dubai (ICD) eighth with USD 2 bn from two.

PIF ranked third in historical outbound investments, deploying USD 200 bn across 216 transactions. Mubadala led with USD 261.8 bn from 459, Adia followed in fourth with USD 162.7 bn from 337, ADQ was sixth with USD 46.8 bn from 110, ICD eighth with USD 23.8 bn from 24, and the Dubai Investment Fund ninth with USD 23.2 bn from 27.

Global SWF’s 2025 World City Ranking for sovereign wealth fund assets puts Riyadh in second place, with USD 1.07 tn of the USD 14 tn managed worldwide. Abu Dhabi topped the list with USD 1.8 tn, while Dubai placed fifth with USD 567 bn. MENA SWFs collectively manage USD 5.6 tn in assets in total — a figure that is projected to rise to USD 8.8 tn by 2030, reflecting a 10% compound annual growth rate.

MENA sovereign investors deployed USD 56.3 bn across 97 transactions in 9M 2025, accounting for 40% of global SOI dealmaking — unchanged from 2023-2024. More than a third of flows went to the US (34%), 28% to Europe, and 16% stayed domestic. Over a third of flows went to the US (34%), 28% to Europe, and 16% remained domestic.

Typically, 75% of capital deployed by MENA funds goes abroad, with the US (34%) and UK (14%) together capturing nearly half. China (including Hong Kong) (5%), India, and Egypt have also gained traction. By sector, MENA funds tend to allocate 40% to real estate and infrastructure, 22% to financials, and 12% to technology.

Foreign inflows lag far behind outflows: While Mena sovereign investors have deployed USD 1.1 tn, the region has only attracted a third of that from global peers, including just USD 77 bn from funds outside their home markets. Asian players have increased interest in the GCC, reflecting shifting global capital flows amid US tariffs and weak European growth.

Sisco Holding acquires 51% stake in PSS for SAR 132 mn

Port Services and Storage Company has a new majority shareholder: Tadawul-listed Sustainable Infrastructure Holding Company (Sisco Holding) inked a sale and purchase agreement to acquire a 51% equity stake in Port Services and Storage Company (PSS), according to a Tadawul disclosure (pdf). The transaction will be locked in this quarter — with the contract still subject to regulatory clearance from the General Authority for Competition.

Playing with paper: The total purchase price, which is fully financed in banknotes, is valued at up to SAR 132 mn — consisting of an initial payment of SAR 91.8 mn and performance-based earn-out payments of up to SAR 40.8 mn. The latter payment is pegged to specific financial targets to be met over the next two years.

Sisco is leveling up its logistics game: Sisco currently houses logistics service provider LogiPoint and PSS in its logistics real estate portfolio — two firms that will enable it to operate and develop warehousing solutions across the Eastern province. It also has a hand in the Kingdom’s flagship container terminal at Jeddah Islamic Port, Red Sea Gateway Terminal.

About PSS: Established in 2007, PSS offers built-to-suit warehousing and comprehensive logistics services. It manages over 130k sqm of logistics infrastructure in Dammam and Jubail — with ambitions to build a further 280k sqm of leasable land in the same region. PSS is also looking to expand its involvement at Jubail Logistics Park, the statement adds.

Cultural Investment Conference locks in over SAR 5 bn in investments

The Cultural Investment Conference wrapped on Tuesday with SAR bns worth of agreements to launch specialized investment funds. The event also saw an announcement for Riyadh’s new arts university, along with agreements for art firms to establish a presence in the Kingdom. Riyadh hosted the two-day event themed “Culture as Capital” at King Fahad Cultural Center, cementing Saudi Arabia’s position as a global hub for cultural investments. Among the agreements and announcements at the conference:

Riyadh-based investment firm Merak Capital launched a SAR 300 mn private equity fund dedicated to fashion with the aim of helping local labels scale beyond the domestic market and enabling a competitive, tech-driven fashion industry, the National reports citing statements made by executives from Merak Capital and the Cultural Development Fund which is stepping in as anchor investor.

So, how big is the industry? The kingdom’s fashion and luxury market is on track for substantial expansion, projected to grow from USD 30 bn in 2023 to USD 42 bn by 2028, the newspaper reports, citing industry tracker Fashion Futures.

Scope: The new vehicle will target growth-stage local brands and projects spanning apparel, accessories, e-commerce, beauty, and supply chain. “We are confident that this fund will be a powerful enabler for Saudi talent and a platform for showcasing cultural identity,” Altamami said.

The Cultural Fund announced providing over SAR 1 bn in financing, in partnership with Abdul Latif Jameel Finance, Lendo, Raya Financing, Manafa, and Alraedah. The new tool will provide entrepreneurs in the industry with flexible financing solutions.

The fund also inked an agreement with the Cultural Assets Group to launch a SAR 850mn private investment fund aimed at boosting the cultural economy and pushing for local companies’ global growth via the acquisition of specialized international companies. The Cultural Fund will contribute SAR 200 mn to the endeavor.

The fund partnered with BSF Capital to launch a SAR 375 mn fund, marking the second private investment fund dedicated to boosting the film industry and its local and global expansion. The fund will be managed by BSF Capital, with the Cultural Fund acting as a major investor.

ALSO- The Kingdom’s first private investment fund in the film sector, the Saudi Film Fund, which was rebranded to Riviera Content, announced two new investments worth a combined SAR 32.5 mn to support the production of two feature films from US-based studios Universal Studios and Columbia Pictures.

The fund also allocated over SAR 500 mn in credit facilities to finance cultural projects of SMEs. The fund also launched financing tools for cultural firms and agreed to work with banks to extend more facilities.

Bahri inks SAR 762 agreement to boost bulk fleet

The National Shipping Company (Bahri) signed a SAR 762 mn agreement with International Maritime Industries (IMI) to build six geared ultramax dry bulk vessels, it said in a disclosure to Tadawul yesterday. The ships are scheduled for delivery in batches between 2028 and 2029.

More details: The new vessels — each with a capacity of 62.8k deadweight tons — will be built by IMI, in which Bahri holds a 19.9% stake, making it a related party. Each ship is designed to handle ports with limited infrastructure, giving Bahri greater flexibility to expand into new markets and trade routes. The agreement also includes an indirect interest for CEO Ahmed Ali Alsubaey.

SOUND SMART- Ultramax vessels are a class of bulk carriers typically sized between 60k and 65k deadweight tons. They are equipped with onboard cranes which give them the ability to load and unload cargo without relying on advanced port infrastructure.

ICYMI- Bahri completed its USD 1 bn acquisition of nine Very Large Crude Carriers (VLCC) from Greece’s Capital Maritime and Trading Corporation last month, with the delivery of the final vessel Burqan. The agreement expands Bahri’s fleet of VLCC to 50 — the largest in the world — and lifts the group’s total owned fleet to more than 100 vessels.

SPACs’ path to Nomu laid out in Saudi Exchange draft amendments

Special purpose acquisition companies (SPACs) are one step closer to trading on Tadawul’s parallel market Nomu, after the Saudi Exchange published draft amendments (pdf) to its rulebook last week. The proposal will be open for public consultation until next Tuesday, 7 October, the bourse said in a separate statement. The move comes nearly five months after the Capital Market Authority (CMA) set the guardrails for SPAC listings on Nomu, as part of a broader push to deepen the Kingdom’s capital markets.

SOUND SMART- A SPAC, or “blank-check” company, is created with the sole purpose of merging with or acquiring a private business and taking it public. This route to an IPO means the SPAC — which doesn’t actually have any commercial operations of its own — doesn’t face the rigors of a traditional listing. This route is particularly attractive for fast-growing firms that want quicker access to capital markets without being hostage to volatile valuations, especially those still investing heavily before turning profitable. It’s the path that MENA-born names like Anghami and SWVL have already taken to public markets.

No shortcuts to the main market: SPACs will only be able to transfer to Tadawul’s main market once they complete an M&A transaction and transition into an operating company. Under the draft rules, direct main market listings are off the table, with all SPACs required to start life on Nomu.

Dealmaking mechanics: SPACs would have 24 months to complete an M&A, with a one-year extension possible if shareholders agree. SPAC investors must end up holding no less than 30% of the combined target company, which, according to the CMA framework, must be worth at least 80% of the funds raised. Trading is suspended once a merger is declared complete.

What happens if it falls through? If the SPAC fails to close an M&A within the deadline, or if escrowed funds are depleted, the listing is cancelled and investors get their money back within three days, and the company must publicly disclose the reasons for cancellation and its impact.

Also in the draft:

Only CMA-licensed investment firms can act as sponsors, and both the SPAC and its sponsor must appoint two dedicated representatives to address the exchange;
Listing applications by a SPAC require approvals from both the SPAC’s board and the sponsor’s board;
A SPAC has to be a joint-stock company with at least SAR 100 mn in capital at listing;
The listed SPAC must have at least 50 public shareholders, and will face the same minimum requirement for a 20% public float (or SAR 30 mn market value) as for other Nomu issuers;
SPACs can issue new shares through a rights issue before completing a merger, a flexibility not usually granted to other Nomu listings.

New CEO appointments at SPCC, Bawan + Arabian Plastic taps chairman

Southern Province Cement Company (SPCC) appointed Saud Bargan (LinkedIn) as CEO, effective yesterday, it said in a disclosure to Tadawul. Bargan brings over 25 years of experience, including 15 years in the cement and building materials sector. He held several leadership roles at SPCC, most recently serving as the executive vice president of operations.

Bawan appointed Zeyad Al Barrak (LinkedIn) as acting CEO, effective 10 December, following the resignation of Mohammed Al Balawi (LinkedIn) from the role, it said in a disclosure to Tadawul yesterday. Al Barrak has over 23 years of experience in financial, administrative, strategic, industrial, and commercial roles, having served as CFO of Methanol Chemicals Company, CEO of Jubail Energy Services, and Managing Director of Profert Saudi Arabia.

Arabian Plastic Industry Company’s board appointed Ahmad Omar Abubakr Balubaid as its chairman and Waleed Khalid Balubaid as vice chairman for a four-year term concluding on 13 September, 2029, it said in a Tadawul disclosure yesterday.

PIF’s EA buyout + Riyadh Comedy Festival make the rounds

The international press has been focused on three main themes for Saudi Arabia: The Public Investment Fund-backed acquisition of US video game maker Electronic Arts, public reception of the Riyadh Comedy Festival, and the new Riyadh Metro.

The Electronic Arts acquisition and the PIF’s role in it underscores Riyadh’s ambitions to reposition itself as a cultural heavyweight while accelerating efforts to diversify its economy beyond oil, Axios says. The move is part of a broader push into industries with massive global audiences, particularly gaming and sports, with the fund investing in sports, gaming, media, and comedy. The press is also looking at how Jared Kushner played a role in making the transaction happen, including making introductions, according to Bloomberg. Reuters and Vanity Fair also dive into the acquisition and how it plays into Saudi Arabia’s growing role in gaming.

The Kingdom’s new Riyadh Metro is also making an impression in the foreign press, with CNN Travel highlighting how the USD 22.5 bn network is fast becoming both a commuter lifeline and an architectural attraction, redefining how residents move around the capital. The fully automated system — initially launched in December of last year — spans 176 km across six lines, making it the world’s largest driverless metro system.

Meanwhile, comedians in the US are at odds with each other over the Riyadh Comedy Festival, with some, including Bill Ackman, wagging their fingers at Bill Burr, Pete Davidson, and other comedians scheduled to perform at the festival. The Guardian, the Washington Post, the Hollywood Reporter and NBC (watch, runtime: 3:33) have more.

ALSO- The Financial Times takes a deep dive into Crown Prince Mohammed bin Salman’s drive to modernize Saudi Arabia and revamp its cultural scene — and “project a new image of Saudi Islam.”

Arabian Mills to invest SAR 461 mn in Riyadh and Hail expansion

MANUFACTURING-

Arabian Mills’ board approved a SAR 461 mn expansion at its Riyadh and Hail facilities to boost production capacity, financed through the company’s liquidity and shariah-compliant loans, it said in a disclosure to Tadawul. Arabian Mills’ Riyadh facility will see a new SAR 347 mn flour mill, a SAR 57 mn feed mill, and a SAR 43 mn warehouse, while its Hail operations will see a SAR 14 mn flour mill upgrade. The projects will lift the Riyadh facility’s flour capacity by 800 tons to 3.9k tons, feed by 400 tons to 700 tons, and Hail’s flour output by 150-750 tons to 750 tons.

The timeline: Construction of the Riyadh projects is slated to run from 1Q 2026 to 1Q 2028, with commercial production beginning in 1Q 2028. The Hail upgrade will be carried out between 4Q 2025 and 4Q 2026, ahead of commercial operations in 1Q 2027.

BANKING-

The Saudi Central Bank (Sama) licensed EZ Bank — a joint venture between Qatar National Bank and Ajlan & Bros — as a digital bank, Sama said on X. This approval brings the total number of licensed banks in the Kingdom to 39, including 15 Saudi banks and 24 foreign branches. EZ Bank will have SAR 2.5 bn in capital.

Joining the digital bank club: Vision Bank received Sama’s non-objection last month to kick off digital banking operations in the Kingdom, following STC Bank in January and D360 Bank in December 2024.

ENERGY-

Saudi Aramco-backed LNG player MidOcean Energy signed agreements to acquire a 20% stake in Petronas’ main Canadian units, it said in a statement on Tuesday. The agreement includes a 20% interest in the North Montney Upstream Joint Venture, which holds Petronas’ Canadian upstream assets of 800k gross acres of mineral rights with 53 tcf of reserves. It also includes a 20% stake in the North Montney LNG Limited Partnership, which owns Petronas’ 25% stake in LNG Canada.

More details: Once completed, the acquisition will secure MidOcean about 0.7 mn tons of LNG supply annually, with potential to increase if LNG Canada — which shipped its first cargo earlier this year — moves ahead with a second phase. The transaction is slated to close in 4Q 2025, pending regulatory approvals.

BUSINESS-

EY Mena relocated its regional headquarters to King Abdullah Financial District, moving to new offices three times larger than its previous site and able to host 1.9k employees, according to a press release. The new headquarters will serve as the base for overseeing the firm’s 8k employees across 26 offices in 15 countries.

M&A WATCH-

Windoria to buy Saudi food producer: Windoria, an affiliate of European investment firm Investindustrial, agreed to acquire Saudi food producer Al Fursan Al Maghawear, according to a press release yesterday. The transaction — the first majority takeover in the Kingdom by a European private equity-backed firm — is expected to close this month, pending regulatory approval, with terms undisclosed. The combined entity will have around USD 4 bn in sales, 5k employees, and 29 manufacturing facilities across the Middle East, Europe, and North America.

About Windoria: Windoria was formed through the merger of US-based private label foods producer Winland Foods and Italy’s tomato-based sauce producer La Doria.

RETAIL-

Diriyah Company launched Jabal AlQurain Avenue, a new mixed-use development for businesses in retail or food and beverage sectors, it said in a press release. The fully pedestrianized project will feature 56 retail units with a gross leasable area (GLA) of 7.3k sqm, 15 F&B units with a GLA of 2.2k sqm, as well as residential and office spaces.

IN CONTEXT- The avenue is part of the USD 1.6 bn Qurain Cultural District, whose construction contract was awarded in November 2024 to a Nesma & Partners-MAN Enterprise joint venture.

AlamarFoods takes control of 29 Domino’s stores in Makkah and Taif: Alamar Foods signed a SAR 40 mn asset purchase agreement to acquire 29 Domino’s outlets in Makkah and Taif, it said in a Tadawul disclosure yesterday. The company, which made the binding offer for the transaction last month, will now manage and finance the outlets.

Investors sell into small-cap surge amid trust deficit

With a strong September comes an unexpected small-cap streak: The small-cap Russell 2000 has climbed to an all-time high after its longest run of weekly gains in nearly five years, boosted by US Federal Reserve rate cuts and a resilient US economy, Bloomberg reports. The small-cap index — which is historically seen as a “risky corner” of the US stock market — is outperforming as Wall Street unexpectedly recorded a positive September. Typically a negative month for equities, all three major US indices closed September in the green, marking their best September in 15 years.

Record outflows from iShares Russell 2000 ETF: Despite the rally, the iShares Russell 2000 ETF has seen USD 5.4 bn in outflows this year, putting it on track for its largest-ever annual withdrawal. While September inflows signaled some optimism, they were not enough to reverse the broader drawdown.

Not all small-cap indexes are keeping pace: The Russell’s breakout was not matched by higher-quality benchmarks like the S&P Small Cap 600, which excludes weaker firms, Ned Davis Research noted.

Lower borrowing costs boost appeal: Small caps typically do well in a strong economy with low interest rates, as many need to borrow to fund their operations. With the Federal Reserve now lowering rates and the economy on track for over 3% growth, investor confidence is tentatively returning, leading to positive fund inflows in September.

However, confidence has been eroded by repeated setbacks: Small caps have lagged behind large peers since the pandemic, struggling in 2022’s bear market and missing out on much of the AI-fueled rally that lifted the Nasdaq 100 by 50%. The Russell 2000 needed four years to reclaim a record high, underscoring the gap with tech-heavy indexes. Years of “false dawns” have left investors cautious, with many locking in gains quickly amid fears the rally won’t last, said Bloomberg Intelligence’s Athanasios Psarofagis.

Fundamentals still a headwind: Meanwhile, slow Fed rate cuts and weak earnings prospects for small companies continue to weigh on fundamentals, with Wells Fargo analysts suggesting the rally may already be “over,” while Sykon Capita’s Todd Stankiewicz argued that only a more supportive business environment will bring sustained inflows.

Long road to regain trust: It could take months, or a year, of consistent outperformance for small caps to regain investor trust, said Fulton Breakefield Broenniman’s Michael Bailey. For now, investor preference remains tilted toward large caps and high-risk alternatives like AI stocks or crypto ETFs until the business environment turns more favorable, Stankiewicz and Wells Fargo said.

MARKETS THIS MORNING-

It’s a positive morning so far for Asian markets, with South Korea’s Kospi leading the pack as Samsung Electronics and SK Hynix rallied in early trading. The two firms announced a partnership overnight with OpenAI to supply memory chips. Meanwhile, Japan’s Nikkei and Hong Kong’s Hang Seng Index are both in the green.

Meanwhile, Wall Street looks set to shrug off the government shutdown and extend its rally, with futures suggesting the S&P 500, Dow Jones, and Nasdaq will all open in the green later today as investors are expecting the shutdown to be short-lived.

TASI	11,529	+0.2% (YTD: -4.2%)
MSCI Tadawul 30	1,506	+0.4% (YTD: -0.2%)
NomuC	25,589	+0.5% (YTD: -18.7%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	4.75% repo	4.25% reverse repo
EGX30	36,769	+0.3% (YTD: +23.6%)
ADX	10,028	+0.1% (YTD: +6.5%)
DFM	5,888	+0.8% (YTD: +14.2%)
S&P 500	6,711	+0.3% (YTD: +14.1%)
FTSE 100	9,446	+1.0% (YTD: +15.6%)
Euro Stoxx 50	5,581	+0.9% (YTD: +14.0%)
Brent crude	USD 65.73	+0.6%
Natural gas (Nymex)	USD 3.45	-0.7%
Gold	USD 3,884	-0.3%
BTC	USD 118,363	+3.8% (YTD: +26.4%)
Sukuk/bond market index	916.44	0.0% (YTD: +1.6%)
S&P MENA Bond & Sukuk	15.79	+0.1% (YTD: +7.8%)
VIX (Volatility Index)	16.29	+0.1% (YTD: -6.1%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.2% yesterday on turnover of SAR 6.0 bn. The index is down 4.2% YTD.

In the green: Saudi Kayan (+6.4%), Nahdi (+4.5%) and Gulf Union Alahlia (+3.9%).

In the red: Cenomi Retail (-3.2%), Derayah (-3.1%) and Alujain (-2.5%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.5% yesterdayon turnover of SAR 68.5 mn. The index is down 18.7% YTD.

In the green: Knowledge Tower (+11.5%), Rawasi (+7.3%) and Tibbiyah (+7.1%).

In the red: Aqaseem (-10.0%), Apico (-9.3%) and Dar Almarkabah (-6.8%).

My Morning Routine: Mohammed Alakeel, CEO of Deemah

Mohammed Khalid Alakeel, CEO at Deemah: Every week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Deemah’s CEO Mohammed Khalid Alakeel (LinkedIn). Edited excerpts from our conversation:

I’m Mohammed Khalid Alakeel, the chief executive officer of United Food Industries Corporation, also known as Deemah. I hold a Bachelor’s degree in Business Administration with a major in finance. I started my career at Deemah in 2016 and have rotated through most of the company’s departments — from HR to sales and marketing, supply chain, and production. Finally, I became CEO last February.

At Deemah, my primary focus is on the company’s growth over the next three years. This involves implementing our current strategy and updating it on a rolling annual basis. It’s a continuous practice of asking: How do we grow? Which markets should we expand into, whether by exporting or establishing a new manufacturing footprint? What new categories should we enter, even here in Saudi Arabia?

Beyond expansion, a key part of my role is focusing on efficiency — meeting our targets for material, operational, and conversion costs so that we don’t have significant variances from our budget.

I see three major factors shaping the industry right now. First is the demand for healthy products. Second is the need for tech solutions to be implemented within the organization. And the third is a focus on people themselves; to attract top-tier caliber, you need to have excellent training programs, clear career path plans, and succession plans for every department.

Deemah is investing significantly in our research and development department. Part of our branding strategy is to focus on Gen Z; and to do that, we need to create new, healthy products, because Gen Z is a very health-conscious generation. We have developed several products that are zero sugar, have no added sugar, are low in gluten, or are protein-based. And when we say protein, we are talking about high-quality whey protein, not vegetable protein. These products will be launched in the next three months. We have worked with the best labs in the world to develop products that meet our consumers’ expectations for good quality and good nutrition from Deemah.

We’re focusing more on Saudi Arabia. Our Saudi business contributes over 70% of our total revenue. The other 30% comes from exports, where we focus primarily on the GCC market, as it is a stable market in terms of its political situation, purchasing power, and currency strength. In the last three years, we’ve automated approximately 70% of our production lines, and we’re on track to reach a 100% automation rate this year.

We don’t see major challenges within our sector. However, some of the tariffs we face from other countries can affect our export business, which is a challenge we can address by establishing a manufacturing footprint in those regions.

I believe in engaging with my colleagues by sharing ideas, not like a boss and a subordinate, where I am just giving them orders. We share ideas, we brainstorm together, and we welcome ideas from any level in the organization.

I wake up at 6:30am and have a 45-minute commute to the office. The first thing I do is review my mailbox and handle operational tasks like approving purchase orders and other pending items in our internal system. After that, I begin my daily routine. Each day, I have a dedicated meeting with my direct reports to review their weekly operational tasks. My approach is to first finish the work that requires my direct approval. After that, I engage with the department heads to review sales performance, production plans, adherence to those plans, and the accuracy of our demand forecasting.

I recharge myself by walking for 45 mins every day. I also do boxing exercises three times a week, but my daily routine to shut down my brain and create a balance between home and work is that 45-minute walk.

I’m very interested in reading about Industry 4.0 and how we can implement new technologies like AI to increase efficiency and reduce workloads across the entire organization. This isn’t just theoretical; for instance, inspired by this research, we are now implementing a virtual management system. It allows us to monitor all of our key metrics — overall equipment efficiency (OEE), downtime, scrap, and quality output — as live data in real-time, visible on any screen from a mobile phone to the shop floor itself.

The best advice I received is an Arabic proverb — “Ya bunay la tusri' fa nahnu fi intidharik.” It translates to, “My son, do not hurry, for we are waiting for you.” The meaning is not to be too fast in your actions or your expansion, or you risk collapsing. You have to take things step-by-step to succeed.

EDITOR'S NOTE- This story was amended on Saturday, 4 October. A previous version of this story incorrectly stated that Alakeel confirmed Deemah is considering an IPO.

CALENDAR

25 September-19 December (Thursday - Friday) 2025 Saudi Toyota Championship.

28 September-1 January: Title deed registration for 54k properties in 77 neighborhoods across Riyadh, Makkah, and the Eastern Province.

3Q 2025

The National Water Company is expected to award a construction contract for the Hail Region Water Networks project.

OCTOBER

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

1-3 October (Wednesday-Friday): FIBO Arabia 2025, Riyadh Front Exhibition & Conference Center.

2-11 October (Thursday-Saturday): Riyadh International Book Fair 2025, Princess Nourah Bint Abdul Rahman University.

5 October-8 January 2026: Title deed registration for 3.2k properties in Al Yasmin district, Hail.

6-8 October (Monday-Wednesday): Saudi Lifestyle Week, Riyadh International Convention & Exhibition Center.

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

12 October-15 January 2026: Title deed registration for 31.7k properties in 14 neighborhoods in the Eastern Province.

12 October-15 January 2026: Title deed regiswatch tration for about 157.3k properties in 78 neighborhoods across the Eastern Province.

15 October (Wednesday): Russian-Arab Summit.

16 October (Thursday): Aviation Impact Middle East, Hyatt Regency Riyadh Olaya .

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

19-20 October (Sunday-Monday): Saudi Rail International, Riyadh Front Exhibition and Conference Center.

21 October (Tuesday): The Visual Arts Commission will hold a public talk and a live performance in Paris through Asia NOW under its Art & Ideas program.

21-22 October (Tuesday-Wednesday): Saudi Festival of Creativity (Athar), JAX District, Riyadh.

21-23 October (Tuesday-Thursday): Global Internet of Things Congress 2025 (GIoTC 2025), the Arena Venue, Riyadh.

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

23-25 October (Thursday-Saturday): Zenos Wellness Summit, Bab Samhan Hotel, Riyadh.

24 October-1 November (Friday-Saturday): AlUla Wellness Festival.

26-27 October (Sunday-Monday): The Global Proptech Summit 2025, Mandarin Oriental Al Faisaliah, Riyadh.

27-30 October (Monday-Thursday): Global Health Exhibition, Riyadh Exhibition and Convention Center, Riyadh.

27-30 October (Monday-Thursday): Future Investment Initiative (FII9), King Abdulaziz International Conference Center (KAICC) and the Ritz-Carlton, Riyadh.

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

NOVEMBER

2 November (Sunday): Naming ASICS Innovation Pitch competition’s six finalists.

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

5-8 November (Wednesday-Saturday): Binam Forum 2025, Riyadh Front Exhibition and Conference Center.

5-9 November (Wednesday-Sunday): Jewellery Salon Expo, Riyadh.

7-8 November (Sunday-Monday): The Visual Arts Commission will conclude its Art & Ideas program with a two-day symposium in Riyadh.

8-9 November (Saturday-Sunday): Del Monte Superleague Supercup, Jeddah.

9 November (Sunday): The deadline for applications for the second batch of the Standard Incentives for the Industrial sector deadline.

10-12 November (Monday-Wednesday): BioFach Saudi Arabia, Riyadh International Convention & Exhibition Center.

11-13 November (Tuesday-Thursday): TouriseSummit, Riyadh.

16-17 November (Sunday-Monday): Jeddah Fintech Week 2025, Jeddah Hilton, Jeddah.

17-20 November (Monday-Thursday): Cityscape Global, Riyadh Exhibition and Convention Centre, Riyadh.

19-22 November (Wednesday-Saturday): PIF Saudi International Golf Championship, Riyadh Gold Club.

20 November (Thursday): Deadline for title deed registration for 14.6k properties across 21 neighborhoods in Qassim.

22 November (Saturday): The Ring IV, ANB arena, Riyadh.

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

23-27 November (Sunday-Thursday): Global Industry Summit by United Nations Industrial Development Organization, Riyadh.

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

24-26 November (Monday-Wednesday): Metropolis Madinah Conference for civilizational capitals, King Salman International Convention Centre (KSICC), Al Madinah.

25-26 November (Thursday-Saturday): The Global Sustainability Expo, The Arena Riyadh Venue, Ghirnatah.

25-29 November (Thursday-Monday): General Aviation Airshow 2025 - Sand & Fun, Riyadh.

27 November (Saturday): Deadline for title deed registration for 8.7k properties in Jeddah’s Al Sheraa and Al Amwaj neighborhoods.

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

28-30 November (Friday-Sunday): UIM F1H2O World Championship, Jeddah.

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

30 November-1 December (Sunday-Monday): FII Priority Asia Summit, Tokyo.

DECEMBER

1-3 December (Monday-Wednesday): Industrial Transformation Saudi Arabia, Riyadh International Convention & Exhibition Center.

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

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

7-9 December (Sunday-Tuesday): CoMotion Global 2025, Riyadh.

8-9 December (Monday-Tuesday): Digital Acceleration and Transformation Expo (DATE), JW Marriott hotel, Riyadh.

8-9 December (Monday-Tuesday): Climate Action and Renewable Energy (CARE), JW Marriott hotel, Riyadh.

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

11 December (Thursday): Deadline for title deed registration for 214.2k properties across Riyadh and the Eastern Province.

25 December (Thursday): Deadline for title deed registration for 64.4k properties across neighborhoods in Madinah, Makkah, Riyadh, and the Eastern Province.

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

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

31 December (Wednesday): Cancellation of Fines and Exemption of Financial Penalties Initiative by the Zakat, Tax and Customs Authority (Zatca) deadline.

December: Made in Saudi exhibition, Riyadh International Convention and Exhibition Center, Riyadh

2026

JANUARY

1 January (Thursday): Electronic salary transfer via the Musaned platform becomes mandatory for all domestic workers in the Kingdom.

13-15 January (Tuesday-Thursday): Future Minerals Forum, King Abdul Aziz International Conference Center, Riyadh.

20 January (Tuesday): SuperReturn Saudi Arabia, Hotel Fairmont, Riyadh.

18-21 January (Sunday-Wednesday): Saudi Hospital Design and Build Expo, Riyadh.

26-27 (Monday-Tuesday): GPRC Summit, Riyadh.

26-28 (Monday-Wednesday): Saudi Franchise Expo (SFE), Riyadh Exhibition and Convention Centre, Riyadh.

26-28 (Monday-Wednesday): Real Estate Future Forum, Four Seasons Hotel, Riyadh.

26-28 (Monday-Wednesday): IFAT Saudi Arabia, Riyadh Front Exhibition & Conference Center, Riyadh,

27-28 (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh.

28 (Wednesday): Data Center Nation Riyadh, Riyadh.

28-30 (Wednesday-Friday): Jeddah International Travel and Tourism Exhibition (JTTX), Jeddah.

FEBRUARY

2-4 (Monday-Wednesday): Saudi Media Forum, Riyadh.

2-4 (Monday-Wednesday): Women Leaders Summit and Awards KSA, Riyadh.

2-13 (Monday-Friday): 2026 Asian Road Cycling Championship and Paralympic Cycling, Qassim.

3-4 (Tuesday-Wednesday): RLC Global Forum Annual Meeting, Riyadh.

5-7 February (Thursday-Saturday): LIV Golf 2026 season opener, Riyadh Golf Club, Riyadh.

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

9-14 February (Monday-Saturday): Asian Racing Conference, Crowne Plaza Riyadh RDC Hotel & Convention Centre, Riyadh.

11 (Wednesday) Digital Transformation Summit Saudi Arabia (DTS), Riyadh.

11-14 (Wednesday-Saturday): JeddaDerm, Jeddah.

13-14 February (Friday-Saturday): Jeddah E-Prix 2026, Jeddah.

MARCH

21 March (Saturday): Fanatics Flag Football Classic, Kingdom Arena, Riyadh.

31 March (Tuesday): Zatca’s 23rd E-invoicing integration wave deadline.

APRIL

6 April (Monday): Procurement and Supply Chain Futures Forum, Al Faisaliah Hotel, Riyadh.

6-7 April (Monday-Tuesday): Real Estate Supply Chain Forum, Al Faisaliah Hotel, Riyadh.

12-15 April (Sunday-Wednesday): Saudi Print & Pack, Riyadh International Convention & Exhibition Center.

12-15 April (Sunday-Wednesday): Riyadh International Industry Week, Riyadh International Convention & Exhibition Center.

12-15 April (Sunday-Wednesday): Saudi Plastics & Petrochem, Riyadh International Convention & Exhibition Center.

12-15 April (Sunday-Wednesday): Saudi Smart Logistics, Riyadh International Convention & Exhibition Center.

13-16 April (Monday-Thursday): Leap Tech Conference, Riyadh Exhibition & Convention Center - Malham.

20-22 April (Monday-Wednesday): The Future Hospitality Summit, Mandarin Oriental Al Faisaliah Al Faisaliah Hotel, Riyadh.

20-22 April (Monday-Wednesday): Saudi Paper and Packaging Expo, Riyadh International Convention & Exhibition Center.

21 April (Tuesday): GC Summit Saudi Arabia 2026, Saudi Arabia.

27-29 April (Monday-Wednesday): Aluminum Arabia, The Arena, Riyadh.

MAY

3-5 May (Sunday-Tuesday): Sports Investment Forum (SIF), Riyadh.

OCTOBER

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

Signposted to happen sometime in 2026:

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.
November: The Esports Nations Cup, Riyadh.
The Intervision international music competition will take place in Saudi Arabia.

Signposted to happen sometime in 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.

Signposted to happen sometime in 2Q 2027:

The Hail Region Water Networks Project is expected to be completed.

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