PIF in the spotlight after Reuters report

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Is Crown Prince Mohamed bin Salman set to visit Iran?

Good morning, friends, and welcome to a busy issue with which to start the workweek. And there’s lots more to come: We expect the pace of news to accelerate in the coming weeks as we hurtle toward the Eid Al Adha holiday in mid-June.

BUT FIRST- The Friday premier of “Bad Boys: Ride or Die” in Riyadh got lots of ink over the weekend. It was Saudi’s first Hollywood premier and was attended by the film’s headliners, actors Will Smith and Martin Lawrence. The Associated Press has more, and odds are good if you’re in Riyadh that he’s all over your IG / TikTok / whatever.

WATCH THIS SPACE-

#1- Goldman Sachs is inching closer to setting up its regional shop in the Kingdom after it received a license from the Ministry of Investment, Bloomberg reports citing unnamed sources it says are familiar with the matter. There’s no publicly available information about the planned size or scope of the bank’s activities at its Saudi office, or the number of employees it plans to hire here. Others including BlackRock, JPMorgan Chase, Deutsche Bank, and HSBC have ramped-up their hiring in the Kingdom.

AND- KKR Saudi, the local arm of global investment firm KKR, has added fund and investment management services to its license, the Capital Market Authority said in a statement.

#2- Saudi is looking to attract some USD 3 tn in investment by 2030, Saudi Gazette reported Investment Minister Khalid Al Falih as saying China-GCC investment conference in China. The event saw a high-profile Saudi delegation, led by Al Falih, descend on Xiamen. Crown Prince and Prime Minister Mohammed Bin Salman was due to lead both the Xiamen mission and an earlier one to Japan, but reportedly called off travel plans plans due to the King’s health, Reuters reported. King Salman continues to undergo medical treatment at Jeddah’s Al Salam Royal Palace for inflammation in the lungs.

#3- PIF-backed EV maker Lucid is set to reduce its workforce by 6%, cutting 400 jobs before the end of 3Q as it looks to cut costs amid a slowdown in electric car sales, the company said in a disclosure. The plan is expected to set the company back some USD 21-25 mn in the current quarter. Lucid reported a net loss of USD 685 mn in 1Q 2024.

REMEMBER-Lucid plans to ramp up its capex spending to about USD 1.5 bn as it launches production of the Gravity, invests in its Arizona facility, and builds out its plant in Saudi. The PIF committed USD 1 bn to Lucid in a follow-on investment back in March.

In other EV news: “Saudi Arabia” is in talks with California-based electric flying car manufacturer Archer Aviation for potential partnerships in Riyadh and Jeddah, along with some of the mega projects across the Kingdom, Reuters reports, citing remarks by Archer’s company’s chief commercial officer, Nikhil Goel. The newswire didn’t name the Saudi company involved in the talks.

It’s the second mention of flying cars this month: US-based electric aircraft maker Joby Aviation plans to expand into the local market after it signed a MoU with Aramco aviation subsidiary Mukamalah. Mukamalah, which operates the world’s largest fleet of corporate aircraft, plans to introduce Joby’s eVTOL to the Saudi market. "Since we made our first several announcements in the UAE that has piqued interest" across the region.

#4- Crown Prince and Prime Minister Mohammed bin Salman has reportedly accepted an invitation to visit Tehran, Iran’s Mehr news agency reported yesterday. Saudi officials have yet to confirm the invitation, which Mehr says was extended by Iran’s interim president, Mohammad Mokhber.

State news agency SPA confirmed that the Crown Prince and Mokhber had had a call, but stopped short of mentioning a visit.

In context: Tehran and Riyadh have taken cautious steps in the past 12 months or so to patch up relations. The visit, if it goes through, would be the first by a Saudi royal in more than two decades.

#5- The Saudi Air Connectivity Program is expected to announce “big news” in the first week of June on a new route connecting Asia to the Kingdom, CEO Majid Khan told Asharq Business (watch, runtime: 5:38). He expects another announcement on a destination “from the west” after the summer, Khan said, refusing to disclose further details. “We are working on a pipeline not only for 2024 but from now on towards 2030 because we need to make sure [we reach] the 70 mn inbound travelers [target],” he said.

In context- The program, which was launched in 2021, aims to boost connectivity to the Kingdom from Europe, Asia and the Americas. It has attracted three new Chinese airlines and three European carriers to launch flights to Saudi this year, according to Khan.

#6- Five investors and a local firm were hit with SAR 4.8 mn in fines and orders for repayment after an appeals committee by the Capital Market Authority (CMA) upheld findings that they had engaged in market manipulation as well as insider trading.

DATA POINTS-

#1- The Kingdom aims to boost its daily water desalination capacity to 16.2 mn cubic meters, up from the current 9.4 mn cubic meters by 2030, Aleqtisadiah reports quoting Environment Minister official Saud Al-Murshed.

#2- Some 54 industrial licenses for projects worth a combined SAR 1 bn were issued in March 2024 by the Industry and Mineral Resources Ministry, it said in a statement on X. The authority said it issued nine licenses for “non-metal products,” eight licenses for food businesses, and seven for metal products.

OIL WATCH-

Opec+ is expected extend voluntary oil cuts well into 2H 2024 when it meets next week, Bloomberg reports. The group of oil-producing nations is scheduled to review and decide on output policy during an online meeting on Sunday, 2 June, instead of the usual in-person meeting previously planned on 1 June. They will decide on whether to extend oil-market-balancing production cuts of 2 mn barrels per day into the second half of the year.

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THE BIG STORY ABROAD-

Is the G7 angling for a trade war with China? Finance ministers meeting in Italy yesterday warned that they are upset with the role China is playing in global business — and could move to take action. “While reaffirming our interest in a balanced and reciprocal collaboration, we express concerns about China’s comprehensive use of non-market policies and practices that undermines our workers, industries, and economic resilience. We will continue to monitor the potential negative impacts of overcapacity and will consider taking steps to ensure a level playing field.” Bloomberg has more.

MEANWHILE- Israel continues to attack Rafah despite the International Court of Justice (ICJ) order to immediately cease all military operations in Rafah on Friday. The court also ordered Israel to open the Rafah crossing to aid and allow investigators into the area. The court’s non-binding rulings come days after the ICJ chief prosecutor requested arrest warrants for a number of Israeli and Hamas officials.

Another round of talks ahead? Mediators are expected to return to the negotiating table this week, one official with knowledge of the matter told Reuters. Negotiations will reportedly discuss “new proposals led by the mediators, Egypt and Qatar and with active US involvement,” the official said. Israeli, Qatari, and US officials met in Paris over the weekend for preliminary discussions.

Not working: The USD 320 mn pier built by US forces, who are not allowed by White House policy to set foot in Gaza to help distribute aid. The equivalent of 71 truckloads of aid made it in through the pier last week — far short of the 90 per day US officials were hoping for. The Wall Street Journal has a deep dive.

AND IN AI NEWS- Google’s AI Overview is under fire for being extremely flawed. AI Overview shows users quick summaries when they Google a question, supposedly saving users a lot of scrolling, but it has become the subject of scrutiny online for its complete nonsense results. AI Overview has suggested users use glue to ensure their cheese sticks to their pizza base or recommended users consume “at least one small rock a day.” Google is taking swift action to tackle the issue, a company spokesman told CNBC — an approach that right now involves taking down some of the dumbest suggestions by hand.

Not seeing AI Overview on your search results page? The feature is only widely available in the US right now.

ALSO worth knowing about this morning:

Rishi Sunak is promising to bring back 12 months of compulsory national service for 18 year-olds if he’s re-elected prime minister;
Tesla shareholders are being told to vote against a proposed USD 56 bn paypackage for Elon Musk as well as a plan to relocate the company’s headquarters to Texas;

A WARNING from the Wall Street Journal: I regret to inform you that sweatpant-jeans are sweeping America.

Expect a quiet news day out of the USA today and tomorrow: Our American friends are off through Monday for a three-day weekend in observance of Memorial Day.

PSAs-

#1- The next round of e-invoicing: Companies that had more than SAR 10 mn in revenues subject to VAT in 2022 or 2023 will have to “integrate their e-invoicing solutions with Zatca’s Fatoora platform from 1 December 2024,” Zatca said in a post on X. It’s the latest phase of a e-invoicing rollout that began in late 2021.

#2- The Hajj and Umrah Ministry is mulling a one-day Hajj package solely for Makkah residents in a bid to curb illegal pilgrimage, Al Watan reported. The package would include transportation to Arafat and Mina but would not bundle-in accommodation in the holy sites. Individuals who qualify must be Saudi citizens or expats with residency in Makkah provided who have not performed Hajj before.

WEATHER- Expect clear skies in Riyadh with a daytime high of 42°C and a low of 29°C. Makkah is on the windy side with a high of 43°C and a low of 30°C, with Jeddah seeing a similar weather with a high of 37°C and a low of 28°C.

CIRCLE YOUR CALENDAR-

Demo day for the final round of the Sanabil 500 MENA seed accelerator will take place on Wednesday, 29 May, in Riyadh with seven finalists. Applications for the next batch are now open and will close on 6 August 2024.

The Global EV and Mobility Tech Forum will open its doors on Wednesday, 10 July to Thursday, 11 July at the Riyadh International Convention and Exhibition Center. The event will bring together policymakers, NGOs, and startups.

Saudi will host the UN Trade and Development Global Supply Chain Forum in 2026, according to a statement by Saudi Ports Authority (Mawani).

Saudi Arabia will host the eleventh World Water Forum, which is set to be held in 2027 under the theme “Together for a better tomorrow,” state-run news agency SPA reports.

Reuters says the Public Investment Fund will “reorganize management”

The sovereign wealth fund is mulling a “reorganization” of management, will review its contracts with global consultancies McKinsey and BCG, and could prioritize plans with short-term impact, Reuters reports in an exclusive. Part of the reorganization could see Public Investment Fund Governor Yasir Al-Rumayyan delegate some responsibilities to managers at the PIF, the newswrite adds.

A shift of focus, not a change of plan: The fund will reportedly prioritize projects that have a higher chance of success, the newswire’s unnamed sources said. There’s no publicly available information about which projects are expected to be paced out. The newswire joins Bloomberg which has reported earlier that progress as the glass-walled city — better known as The Line — would be scaled back. Neom officials have recently assured contractors and bankers that the buildout of the city was proceeding on schedule.

Rationalizing costs + attracting foreign investments: The USD 925 bn fund is looking to drum up foreign investment while rationalizing spending on expensive consultancy contracts, Reuters adds. This is in line with the Finance Ministry’s plan to pace out growth in some of the country’s mega projects not to “overheat” the economy as Finance Minister Mohamed Al Jadaan put it earlier this month. Al Jadaan first alluded to this view on allowing the economy to catch up with the government’s projects in December, when he hinted that the government could strategically slow down the execution of some of its economic transformation projects, meaning some could wrap past their initial 2030 deadlines.

Remember: Neom also recently came off the road in China with officials looking to rally interest from Hong Kong, Beijing, and Shanghai. It is looking to diversify its funding sources away from PIF, securing a fresh revolving credit facility worth SAR 10 bn from local banks and reportedly planning what could be its first-ever sukuk sale.

MEANWHILE- Design and engineering firms can now bid for works in the next phase of the Mukaab project of the PIF-owned New Murabaa Development, Saudi Gazette reports. Some 5 mn cubic meters of excavation work is complete and the final design is expected to be ready in 3Q 2024.

Aramco could pull the trigger on a secondary share sale in the coming weeks

Aramco could pull the trigger on secondary sale of shares as soon as next month in a transaction that could raise c. USD 10 bn, Reuters reports citing two unnamed sources it says are familiar with the matter. Aramco has not confirmed the share sale, which some originally said could be worth as much as USD 20 bn. The newswire expects Aramco to put on a full roadshow to market the offering rather than doing an accelerated book build.

PIF has increased its stake in Aramco ahead of the expected sale: Sovereign wealth fund PIF doubled its stake in Aramco to 16% in March, which Aramco says did not affect its total number of issued shares nor its operations, strategy or dividend distribution policy, maintaining that the Saudi government holds its largest stake at 82.19% in direct shareholding.

Aramco’s net income fell 14.4% y-o-y to SAR 102.3 bn (USD 27.3 bn) in 1Q 2024, and its revenues dipped 3.7% y-o-y to SAR 402.0 bn (USD 107.2 bn), which it attributed to lower crude oil sales and falling refining and chemicals margins. The oil giant will nevertheless boost its dividend this year by as much as 30% over 2023 thanks to a performance-based payout.

MEANWHILE- The oil giant is reportedly eyeing Shell’s downstream assets in South Africa, Bloomberg reports, citing unnamed sources it says are familiar with the matter. The potential sale could have a price tag of USD 800 mn and would be the latest move in Shell’s divestment South Africa after it offloaded the country’s biggest oil refinery in 2022. Talks are ongoing with “several highly credible parties,” Bloomberg quotes Shell’s spokesperson as saying.

What’s on the table: The sale would include the company’s aviation, marine, construction and road, trading and supply, commercial fuels, and lubricant operations, Bloomberg reports citing the company’s announcement earlier this month. Shell owns a network of 600 stations across the country.

Other potential bidders reportedly include Abu Dhabi National Oil (Adnoc), South Africa’s chemicals and energy player Sasol, Swiss-based Puma Energy, and Glencore.

Moody's upgrades Kingdom’s local and foreign currency rating to Aa1

An Aa1 from Moody’s: Rating agency Moody’s has upgraded Saudi’s local and foreign currency rating to Aa1 from Aa2 on the back of improved government decision-making and institutional reforms, Reuters reported, citing a report by Moody’s. It said the upgrade came due to "increased predictability of policies and decision-making processes affecting non-government issuers given institutional improvements.”

Key insights: The report said a “zero-notch gap” between the foreign currency and local currency ratings was backed by robust forex reserves by Saudi central bank Sama. This signals minimal risks associated with transfers or convertibility.

Something to watch out for: The rating agency said a “three-notch gap” between the local currency rating and the A1 sovereign rating came due to a heavy reliance on a single revenue source — read: oil — for the public and private sector and growing geopolitical risks.

REMEMBER- Finance Minister Mohamed Al Jadaan said recently that the Kingdom could drive faster GDP growth by pumping more oil, but it wouldn’t be “comprehensive and sustainable growth. … If we wanted, we could produce 10 mn barrels of oil per day instead of 9.5 mn and achieve a much larger growth in GDP,” he said.

What the others are saying: S&P Global Ratings affirmed in March the Kingdom’s long- and short-term foreign and local currency sovereign credit ratings at A/A-1 with a stable outlook on the back of continued economic and social reforms. It expects Vision 2030 projects will lead to a more diversified economy, create jobs, and result in an inclusive labor force.

China’s Comac is setting its sights on Saudi Arabia, looks to compete with Western planemakers

Chinese state-owned planemaker Comac is setting its sights on the Kingdom in a bid to compete with Western manufacturers, Reuters reported, citing statements by its chairman Dongfeng He. “Comac envisions enhancing global connectivity and diversity by contributing to Saudi Arabia's aviation transportation development,” He said last week during an aviation forum in Riyadh. He said two of the group’s operational planes — the C919 and ARJ21 regional jet — could boost Saudi’s flight market both domestically and regionally.

Background: Flagship carrier Saudia confirmed to Reuters earlier media reports that it has invited Comac to set up an assembly line in Jeddah.

A hurdle along the way: Aviation sources told Reuters that Comac still has a long way to go before it can credibly expand overseas due to the lack of key certifications from the US or European Union and the need for more efficient planes. The US added the Chinese manufacturer in 2021 to its list of companies affiliated to the Chinese military, banning any investments by American firms in it.

Saudi Arabia’s non-oil exports fell on an annual basis in 1Q 2024, while imports are on an upward trend

Non-oil exports fell 5.2% y-o-y in 1Q 2024, according to the latest data from the General Authority for Statistics (Gastat) (pdf). Including re-exports — which increased in value by 31.5% y-o-y — total non-oil exports rose 3.3% last quarter.

The ratio of non-oil exports — including re-exports — to imports dropped to 34.7% in 1Q, down from 35.8% in 1Q 2023, as imports rose 6.4%.

A monthly snapshot: Merchandise exports in March, excluding re-exports, fell 6.3% y-o-y, while total exports dipped 0.8% y-o-y. The value of re-exported goods rose 17.6% y-o-y, according to another Gastat release (pdf).

What are re-exports? These are products that one country imports and re-sells to another country as-is, without providing added value or labor input in the process. This can happen for various reasons, including taking advantage of price differences between markets, fulfilling orders, or redistributing goods to other markets where there is demand.

China remains Saudi’s biggest trade partner: Saudi exports to China accounted for 15% of total exports in 1Q 2024, followed by South Korea at 9.8%, and India at 9.5%. Chinese products and services also accounted for the largest share of Saudi’s imports during the quarter (21%), followed by the United States (8%), the UAE (6.8%), and India.

Chemical products accounted for 25% of non-oil exports in 1Q 2024 — the most exported products last quarter — despite falling 18% y-o-y. Plastics came second, accounting for 23% of total non-oil exports.

Hassan Allam Construction Saudi to build primary coral reef nursery in Neom. Plus: M&A, investment and hospitality

ENVIRONMENT-

Our friends at Hassan Allam Construction Saudi are set to build the primary coral nursery of the world’s largest coral reef restoration project in Neom under a freshly-inked agreement with the King Abdullah University of Science and Technology (Kaust), according to a statement. The agreement sees Hassan Allam in charge of carrying out external and internal infrastructure works on a total built-up area of 24.7k square meters.

About the project: The Kaust Coral Restoration Initiative is designed to counter the negative impact of climate change and rising sea water temperatures on coral reefs. It covers Neom’s Haddah beach.

Background: Our friends at Hassan Allam Holding, the regional construction, engineering, and infrastructure giant, opened in March their regional headquarters in Riyadh after securing an investment license from the Investment Ministry. The new headquarters comes as part of the group’s ongoing expansion in the Middle East and Africa.

M&A-

The board of homegrown supermarket group BinDawood has approved the full acquisition of Jumeirah Trading in a transaction worth as much as SAR 186.5 mn, it said in a disclosure to Tadawul. This acquisition is still subject to both shareholder ad regulatory approval; BinDawood hopes to conclude the transaction in the second half of this year.

The rationale: The acquisition comes under BinDawood’s strategy to expand distribution operations, reduce supply chain risks, and improve profit margins through vertical integration.

About Jumeirah: It is engaged in the wholesale, retail and distribution of food, household products, toys and luggage across Saudi. Its net income nearly doubled y-o-y in 2023 to report SAR 22.2 mn, while its revenues were up 28.7% y-o-y last year to SAR 142.9 mn.

INVESTMENT WATCH-

Local venture builder BIM Ventures signed an MoU with Tokyo-based financial group SBIHoldings to establish a USD 100 mn joint investment fund dedicated to supporting startups in Saudi, according to a statement (pdf). The statement said the Investment Ministry will support the efforts which “will create new opportunities for Saudi and Japanese startups, as well as create jobs in the Kingdom.”

SBI Holdings has been looking to expand its footprint here and beyond: It signed in December an MoU with oil giant Aramco to explore investments in digital assets. It set up in February a regional HQ in Riyadh “as a base of operations for conducting business in the Middle East.”

HOSPITALITY-

Hong Kong-based airport lounge operator Plaza Premium Group (PPG) plans to invest USD 70 mn to develop its services in the local market, Deputy CEO Ali Bora Isbulan told Aleqisadiah. Isbulan said that PPG discussed opening at King Salman International Airport in Riyadh and the Red Sea project.

About PPG: PPG is currently active in over 250 locations across more than 70 airports around the world, with three lounges in Saudi — on each in Riyadh, Jeddah, and Dammam, according to its website.

STARTUP WATCH-

Homegrown fintech Hala has secured undisclosed funding from US-based private equity firm TPG, Menabytes reported, citing a report by The Information. No further details were provided on the investment from TPG, which has previously injected capital into global players including Spotify, Airbnb, Box, and Calm. Hala’s last-disclosed financing round was a USD 6.5 mn Series A led by local Impact46 in 2021.

About Hala: The Riyadh-based startup provides banking services to SMEs and freelancers, including POS solutions, bank accounts, debit cards and budget management options, according to its website.

REAL ESTATE-

Bonyan REIT has completed the transfer of a mixed-use commercial center in Riyadh at a transaction estimated at SAR 200 mn, fund manager Saudi Fransi Capital said in a disclosure to Tadawul. The 1991 Center, which is located in the Hittin neighborhood, spans 8k sqm, featuring 7 showrooms and 31 offices, the disclosure read. Saudi Fransi Capital said announcements on the signing of lease contracts would follow.

MANUFACTURING

Naqi Water signed a 20-year leasing contract with the Saudi Authority for Industrial Cities and Technology Zones (Modon) for industrial land to set up a bottled drinking water factory in Jazan Industrial City, it said in a disclosure to Tadawul. The total contract value for the 15.1k sqm was set at SAR 301k excluding value-added tax, according to the disclosure. The move comes under Naqi Water’s strategy to expand production lines.

REMEMBER- Naqi Water transferred earlier this year land lease rights to PepsiCo for SAR 9.5 mn in Riyadh’s second industrial city after saying it found a better-suited location for its planned factory.

EDUCATION-

King Saud University signed an MoU with the University of Tokyo for economic cooperation in physics, chemistry and geoscience, state news agency SPA reported. They also discussed future partnerships between the two universities.

TRANSPORTATION-

Saudi has secured membership in the International Transport Forum (ITF) on the sidelines of this year’s edition hosted in Germany's Leipzig, state news agency SPA reported. Transport and Logistics Services Minister Saleh bin Nasser AI Jasser said Saudi’s membership will allow it to enact legislation and regulation to help enhance and develop transportation globally.

Saudi in the global logistics scene: Saudi Arabia has made substantial progress in logistics, notably rising 17 places to the 38th rank in the World Bank’s Logistics Performance Index 2023. It also advanced to 13th place in IATA’s international air connectivity index.

Adnoc Drilling sells USD 935 mn stake in UAE secondary sale

Adnoc Drilling sells 5.5% stake to investors: Abu Dhabi National Oil Company (Adnoc) Drilling sold a 5.5% stake in a secondary sale for USD 935 mn, after attracting “strong demand from institutional investors in the GCC and internationally,” it said in an ADX disclosure (pdf) on Thursday. The share sale increases the Adnoc subsidiary’s free float to 16.5%, with Adnoc holding onto a 78.5% stake. The company set its final offering price at AED 3.90 per share, 70% above its IPO price of AED 2.30.

Remember: Adnoc announced plans to offer up a 5.5% stake (or 880 mn shares) in its drilling unit, Adnoc Drilling, in a secondary sale to institutional investors on Wednesday. The stake was initially valued at USD 989 mn, based on Adnoc Drilling’s closing share price of AED 4.13 at the time. Adnoc Drilling went public in October 2021, offering an 11% stake and raising USD 1.1 bn. Adnoc retained an 84% stake, while Baker Hughes held a 5% stake in the drilling arm.

The larger float may provide a pathway to allow Adnoc Drilling to join the MSCI Emerging Market Index at the next quarterly index review, according to the disclosure. It will also “enhance liquidity and trading in Adnoc Drilling’s ordinary shares and diversify its shareholder base” the oil and gas giant said in an earlier disclosure (pdf).

DATA POINT: This one of only a handful of secondary sales to take place on a UAE exchange, according to Bloomberg.

Advisors: Our friends at EFG Hermes UAE, along with First Abu Dhabi Bank, Goldman Sachs International, and JP Morgan Securities are joint global coordinators and joint bookrunners for the offering.

TASI	11,996	-1.3% (YTD: +0.2%)
MSCI Tadawul 30	1,494	-2.0% (YTD: -3.7%)
NomuC	26,679	-0.6% (YTD: +8.8%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	27,205	-0.1% (YTD: +9.3%)
ADX	8,833	-0.6% (YTD: -4.6%)
DFM	4,012	-0.3% (YTD: -1.2%)
S&P 500	5,305	+0.7% (YTD: 28.1%)
FTSE 100	8,317	-0.3% (YTD: +7.6%)
Euro Stoxx 50	5,035	0.0% (YTD: +11.4%)
Brent crude	USD 82.12	+0.9%
Natural gas (Nymex)	USD 2.52	-5.2%
Gold	USD 2,356.90	-0.1%
BTC	USD 69,320.32	+0.8% (YTD: +64.9%)

THE CLOSING BELL: TADAWUL-

The TASI fell 1.3% on Thursday on turnover of SAR 5.6 bn. The index is up 0.2% YTD.

In the green: Al Baha (+7.7%), Ayyan (+6.3%) and Riyadh Cables (+5.7%).

In the red: Bupa Arabia (-6.6%), BSF (-5.1%) and Gulf General (-4.8%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.6% on Thursday on turnover of SAR 49.2 mn. The index is up 8.8% YTD.

In the green: Al Rasheed (+13.6%), Al Modawat (+6.9%) and Dar AlMarkabah (+6.6%).

In the red: NBM (-9.6%), Bena (-5.8%) and Rawasi (-5.3%).

CORPORATE ACTIONS-

#1- Shareholders of Tadawul-listed Banque Saudi Fransi have approved a dividend of SAR 1.2 bn at SAR 1 per share for 2H 2023, it said in a regulatory filing to Tadawul (pdf). The distribution date was set for Tuesday, 11 June. This brings the total dividends distributed to shareholders for FY 2023 to SAR 2.3 bn at SAR 1.95 apiece. Shareholders also approved a share buyback of up to 2.9 mn shares to be earmarked for the bank’s share-based employee remuneration program. The self-financed buyback is set to materialize within a maximum period of 12 months.

#2- Shareholders of Tadawul-listed National Medical Care have approved a dividend of SAR 89.7 mn at SAR 2 per share for FY 2023, it said in a disclosure to Tadawul. Eligible shareholders will be able to cash out on Wednesday, 12 June. They also approved a share buyback of up to 160k shares to allocate them within the company’s employee stock program.

#3- The board of Tadawul-listed Saudi Steel Pipe has recommended a dividend distribution of SAR 37.5 mn at SAR 0.74 per share for FY 2023, it said in a disclosure to Tadawul.

#4- The board of Tadawul-listed Aljazira Takaful Taawuni has recommended a dividend of SAR 19.8 mn at SAR 0.30 apiece for FY 2023, it said in a disclosure to Tadawul.

#5- The Capital Market Authority has cleared ICT solutions provider Perfect Presentation for Commercial Services (2P) to double its capital to SAR 300 mn, according to a statement. The capital increase will see the transfer of SAR 150 mn in retained earnings to the company’s capital.

#6- The Capital Market Authority has cleared pipes manufacturer Arabian Pipes to increase its capital by 50% to SAR 150 mn t, according to a statement. The capital hike will see the transfer of SAR 50 mn from retained earnings to the company’s capital.

CALENDAR

MAY

26-27 May (Sunday-Monday): Bookbuilding for retail investors in Smasco IPO.

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

29 May (Wednesday): Sanabil 500 MENA seed accelerator demo day, Four Seasons Hotel, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

2 June (Sunday): OPEC+ meeting.

2-3 June (Sunday-Monday): Global Project Management Forum, Riyadh.

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

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

5 June (Wednesday): World Environment Day.

5 June (Wednesday): Digital Transformation Summit, Riyadh.

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

JULY

4 July-25 August: (Thursday-Sunday): Esports World Cup, Boulevard Riyadh City, Riyadh.

10-11 July: (Wednesday-Thursday): Global EV & Mobility Tech Forum, Riyadh International Convention & Exhibition Center, Riyadh.

AUGUST

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

SEPTEMBER

10-12 September (Tuesday-Thursday): Global AI Summit, Riyadh.

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

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

18-19 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam.

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

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

OCTOBER

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh.

31 October (Thursday): No-visa travel for Saudis to Montenegro on charter flights expires.

NOVEMBER

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

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

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

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Dammam.

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

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

DECEMBER

2-13 December (Monday-Friday): Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification, Riyadh.

11 December (Wednesday): FIFA Congress, which will decide the hosting countries for the FIFA World Cup 2030 and 2034

Signposted to happen sometime in 2024:

The AFC Champions League Elite

2025

FEBRUARY 2024

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

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