Private sector boom continues even as economy contracts this year on lower oil output –World Bank

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WHAT WE’RE TRACKING TODAY

Women’s participation in the Saudi workforce more than doubles from 2017

Good morning, wonderful people. We hope you enjoyed our impromptu long weekend. We’ve boiled down a ton of news for you this morning — a task made easier by a reasonably quiet day for news yesterday.

THE BIG STORY here at home? No single story captures the imagination, but we have more IPO and M&A news and word from the World Bank that while the economy will contract this year, the private-sector boom continues. (Guess they noticed all the cranes, new compounds, and soon-to-open shops across Riyadh on their last visit?)

** You’re reading Zero Issue #003 of EnterpriseAM KSA.

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SMART POLICY- We’ve gotten kudos from the World Bank for the remarkable strides the Kingdom has taken in boosting women’s participation in the workforce. The rate at which women are participating in the labor workforce is growing at by far the fastest rate in the Gulf Cooperation Council (GCC) countries, more than doubling to 36% in 1Q 2023 from 17.4% in 2017, the multilateral lender said in its Gulf Economic Report (pdf).

Sound smart: That means we’ve already broken past the 30% target set by Vision 2030.

Extra kudos to the private sector, where women’s participation is up 87% since 2017 thanks to better wages, steps to address [redacted] harassment in the workplace, and better access to finance for business owners.

From the Dept. of the Obvious:The changes “appear to result” from the nexus of “transformational policy reforms and tectonic shifts in social norms,” the World Bank said.

^^ We have more on the report in this morning’s news well, below.

PUBLIC SERVICE ANNOUNCEMENTS-

PSA #1- It’s going to be a lot easier to visit Turkey: The Turkish embassy in Riyadh said last week that Saudi travelers can apply for multiple-entry e-visas to Turkey effective immediately, it said in a post on X. The visa allows travelers to enter Turkey multiple times within 180 days from the date of issue.

PSA #2- Your commute is about to get a bit more complicated — second semester has started: Over 7 mn students nationwide are back in class as the second semester kicked off yesterday.

PSA #3- Passengers with service animals can take their furry friends on board:Passengers with impaired vision can now take their service animals on public transportation, Okaz reports, citing the Transport General Authority. The caveat: They can’t pose a threat to other passengers or to the general flow of traffic. Other passengers can have bring pets on public transport provided they’re small in size and remain crated throughout the trip.

PSA #4- It’s a second win for the Green Falcons in a triumph over Jordan in FIFA World Cup qualifiers:The national team secured a 2-0 victory against Jordan last week, giving Coach Roberto Mancini a reason to celebrate with six points from two matches to put the team at the lead of Group G in the 2026 FIFA World Cup qualifiers. Man of the match Saleh Al Shehri scored the two goals at minutes 6’ and 30’ of the game, with the Hilal forward continuing to shine after leading his team to a 4-0 victory over Pakistan.

IT’S NEARLY COP O’CLOCK

Saudi government and business leaders will be among the thousands of delegates heading to COP28 in Dubai this coming Thursday for the latest round of talks and teeth-gnashing about the state of the climate.

How we’ll cover it: If you’re in the Kingdom, but not working in a climate-related industry, EnterpriseAM KSA will have everything you need to know. If you need to go deeper (you invest along a climate theme, your business could get a boost or be harmed by our warming planet), you’ll want to tune in to Enterprise Climate, our MENA-focused daily, which appears Monday-Thursday at 9am KSA.

Our editorial line: Longtime Enterprise readers know we prefer to look at climate through the lens of how businesses and the finance community can do well while doing good — we think it’s the world’s largest and most important industry.

Get ready: We have the rundown in this morning’s news well of some of the big themes you can expect out of this year’s gathering.

Oh, and speaking of COP — We’re not really buying a lower emissions target for the aviation sector by 2030:Saudi Arabia and Iraq have expressed opposition to an agreed interim 5% target in emissions reductions from the global aviation sector by 2030, Reuters reports.

The details: The interim target, which came after five days of UN-led negotiations last week in Dubai ahead of COP28, was agreed by over 100 countries. The 5% figure is at the low end of the 5-8% range earlier floated and sees the industry using more lower-pollution energy sources such as SAF, or sustainable aviation fuel.

DATA POINTS-

#1- The Kingdom welcomed 16 mn tourists in 1H 2023, Mubasher reported last week, citing remarks by Saudi Tourism Authority CEO for Middle East and Africa Markets Abdulkarim Al Darwish. He said that the kingdom was the fastest-growing tourist destination globally.

BACKGROUND- The Tourism Ministry has recently updated its target for total annual tourist trips to 150 mn by 2030, with an equal split between domestic and international travelers, according to earlier statements by Tourism Minister Ahmed Al Khateeb. The ministry wants to see the industry account for 10% of GDP by that year.

DATA POINT #2- Oil cuts weigh heavily on exports: The Kingdom’s exports fell 17.1% y-o-y to SAR 103.8 bn in September 2023, down from SAR 125.3 bn in the same month last year, according to General Authority for Statistics figures (pdf). Oil exports declined 17.1% y-o-y to SAR 83.1 bn in September, while non-oil exports shrank 17.2% y-o-y to SAR 20.7 bn. The economy contracted 4.5% y-o-y in 3Q on the back of lower oil activity.

REMEMBER- OPEC+ will meet on Thursday to discuss production quotas for 2024, with the expectation that KSA will push for further cuts to prop up prices.

#3- Small businesses see improving access to credit: Credit facilities to small and medium sized enterprises in the kingdom rose by 19% y-o-y to SAR 262.7 bn, Okaz reported last week, citing figures from SAMA. Some SAR 245.3 bn in funds were provided by the banking sector, amounting to 93% of overall credit facilities taken out by SMEs, with the balance coming from financial services firms. SMEs have enjoyed improving access to finance in recent years thanks to smart policy at SAMA, which has prompted growing interest in the segment at the kingdom’s national banks.

#4- KSA is the top exporter to Brazil among Arab countries: Saudi Arabia topped the list of Arab countries exporting to Brazil with exports estimated at USD 2.9 bn, Al Eqtisadiah reported last week.

THE BIG STORY ABROAD

ON THE FRONT PAGES- Gaza is dominating the international front pages this morning, with the world’s media all focused on the latest on the prisoner swap between Hamas and Israel, brokered by Egypt and Qatar.

The latest on day four of the four-day ceasefire: Another batch of Palestinian and Israeli hostages were released yesterday and an extension of the truce could be on the table, mediators Egypt and Qatar have signaled.

IN THE GLOBAL BUSINESS PRESS- Sam Altman is back as CEO of OpenAI ending the endless news cycle of “will he or won’t he” after he was sacked by the OpenAI board.

Instead, OpenAI’s board is out: The board that fired Altman, which was in place to ensure the “safe development” of AI, has been replaced by a three-man provisional board. The board that fired Atlman included two high-profile effective altruists and Ilya Sutskever, a co-founder of OpenAI and its chief scientist. Sutskever helped lead the rebellion against Altman and then flipped sides, saying he would leave the company if Altman did not return as CEO.

So who’s on the board?

US economist and former treasury secretary Larry Summers (someone apparently thinks he’s capable of standing up to Altman ?)
Bret Taylor, a former Facebook and Salesforce exec who was a key player in negotiating the sale of Twitter to Elon Musk;
Quora CEO Adam D’Angelo, the only remaining member of the board that had sacked Altman.

Their mandate: Sort out a proper governance structure and an expanded board, among other things.

Wondering how Altman weighs in the power dynamics of the AI space? It took twelve years for Steve Jobs to Apple after he was sacked; Altman took only 5 days to reclaim his throne.

There are whispers that an AI breakthrough catalyzed Altman’s sacking: Prior to Altman’s dismissal, a previously unreported letter from staff researchers to the board of directors had warned of a powerful AI discovery that they believed “could threaten humanity,” two sources told Reuters. It was this letter, and the new algorithm finding named Q*, which catalyzed Altman’s ousting, they added.

But the tech press isn’t buying it (yet). Reporters have been unable to track down the letter, and there’s disagreement among experts on whether an AI that can do grade school math is a breakthrough.

The story is getting plenty of ink:New York Times | Bloomberg | Reuters | CNN, amongst others.

CIRCLE YOUR CALENDAR-

Who let the dogs out? Because Riyadh Season is doing just that: Riyadh will hold the first Dog Festival as part of its Riyadh Season, welcoming over 250 dogs from all corners of the globe to strut their stuff. The event, which runs from Thursday, 30 November to Friday, 1 December will feature competitions showcasing the dogs’ abilities in many categories, with a beauty pageant for our furry friends.

And horses too: The latest edition of the Riyadh Ubayyah festival is coming up. (PSA for recently-arrived expats — this has nothing to do with the loose-fitting garments of a similar-sounding name.)

But really: The Saudi Arabian Horse Festival kicks off tomorrow at the International Equestrian Resort in Riyadh and will wrap up on Saturday, 2 December, state-run Saudi Press Agency says. The event begins with Diriyah Pride', an auction of some of the rarest purebred Arabian horses, and will be followed by the International Championship for Purebred Arabian Horses, with 200 horses competing for purses totalling more than SAR 1 mn.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Saudi economy is set to contract in 2023 on lower oil output, but the private sector boom continues –World Bank

The economy is set to shrink for the first time on an annual basis since covid, with the Kingdom’s GDP is expected to contract by 0.5% y-o-y this calendar year compared to 8.7% growth in 2022. The culprit? Voluntary oil cuts of 1 mn bpd from July until the end of the year, according to the World Bank’s latest Gulf Economic Update (pdf), out last week. The multilateral lender sees an 8.4% y-o-y contraction in oil activity in 2023 — the sector grew 15.5% in 2022.

The third quarter saw the sharpest contraction since 2020 as the economy contracted 4.5% y-o-y, down from 8.6% growth in the previous year on the back of a 17.3% decline in oil activities according to figures from the General Authority for Statistics (pdf).

PRIVATE SECTOR BOOM CONTINUES-

But the non-oil economy is still roaring, thank you: Non-oil GDP will grow at a 4.3% y-o-y clip this year on the back of “looser fiscal policy, robust private consumption, and public investment drive,” cushioning the anticipated downturn, the World Bank writes.

And that squares nicely with what businesses are reporting: The Riyadh Bank Saudi purchasing managers’ index (PMI) rose for the second consecutive month to 58.4 in October, up from 57.2 in September on the back of new business orders, leading to a nine-year high in employment growth. It was the highest reading since June of this year.

DEFICIT SPENDING-

Reversing a 2022 surplus: The economy hit an SAR 44 bn deficit in 9M 2023 with SAR 854 bn in revenues and SAR 898.3 in expenditure according to the Finance Ministry figures (pdf ). Most of that figure accumulated in 3Q 2023 (SAR 35.8 bn) on the back of lower oil receipts.

The gov’t has reportedly taken on a USD 11 bn in syndicated facility to help finance the budget deficit, Bloomberg reports, citing unnamed sources it says are familiar with the matter. The 10-year loan was covered by 18 banks, according to the sources. Information about the debt-instrument, pricing, and participating banks was not public.

BETTER TIMES AHEAD-

Bouncing back in 2024:While we are expected to be the only economy in the Gulf Cooperation Council to see the economy contract this year, GDP should grow 4.1% y-o-y in 2024 — putting os on track to lead he GCC in growth next year. The World Bank sees the UAE coming in as the second-fastest growing with at 3.7% next year.

SLOWER REGIONAL GROWTH-

The GCC economy as a while is shifting to a lower gear this year, with the economy expected to contract 1% y-o-y before growing 3.6% in 2024 and 3.7% in 2025. Still, the region’s private sector will grow at a 3.9% clip this year.

Israel’s war in Gaza provides downside risk: “The current conflict in the Middle East poses significant risks to the region and the GCC outlook, especially if it extends or involves other regional players. As a result, global oil markets are already witnessing higher volatility,” said World Bank Country Director for the GCC Safaa El Kogali.

MBC timeline update, miller SMC could go public on Tadawul + Armah Sports’ Nomu offering is 4x oversubscribed

The Kingdom’s hot IPO market has news for us again this morning, fresh off the announcement at the end of last week that broadcaster MBC is going public. Our IPO report today has an update on MBC, news of what could be a multi-bn offering on the main market of Tadawul, and another heavily oversubscribed IPO on the parallel market, where investor appetite for smaller, early-stage companies remains strong.

#1- We have what might be the timeline for MBC’s blockbuster IPO, courtesy a report in Argaam. MBC Group, the region’s largest broadcaster and owner of the Shahid streaming platform, said last week that it would go public, but did not specify a timeline for the offering. We still don’t have clarity on allocation or the start of trading, but the Argamm says the working timeline looks something like this:

30 Nov-6 December: Bookbuilding targeting institutional investors

12 December: Pricing is announced
14-18 December: Window for individual investors to subscribe

REMEMBER- The Reg-S-compliant share sale is primarily targeting institutional buyers, with the intention to float (pdf) saying at least 90% of shares on offer will be allocated to institutions, with no more than 10% earmarked for individual investors.

BACKGROUND- As we reported last week, MBC (which is 60% owned by the state) is set to list 10% of its shares on Tadawul in what should be the Kingdom’s largest public share sale since the SAR 2.5 bn IPO of cargo firm SAL late last year.

ADVISORS- MBC has hired our friends at HSBC alongside JP Morgan and SNB Capital. GIB Capital is serving as financial advisor to substantial shareholders. Arab National Bank, Banque Saudi Fransi, Riyad Bank and Saudi National Bank have been named receiving banks, while Brunswick is running media.

#2- SMC could soon go public on the main market. The owners of the Second Milling Company (SMC) could soon take it to market, Arqaam reports, quoting Al Rajhi International Investment CEO Ahmed Al Dakheel. The company has three mills — one each in Riyadh, Jazan and Hail — and a total annual production capacity of 1.3 tons.

It’s not clear who might be tapped to quarterback the transaction.

Who owns what? Abdulaziz Al Ajlan Sons Company for Commercial and Real Estate Investment is currently the majority shareholder with a 50.1% stake, while Al Rajhi has a 35% stake and Nadec, the first agri company to be listed on Tadawul and one of the oldest of its kind in the kingdom, owns the remaining 14.8%.

REMEMBER- SAGO exited SMC in 2021: The Saudi Grains Organization (SAGO) full divested from SMC and the Fourth Milling Company for a combined SAR 3 bn back in 2021.

#3- OVER ON THE NOMU- Armah Sports’ SAR 137 mn IPO is 4x oversubscribed: Armah Sports has wrapped up the book-building process for its Nomu IPO with demand covering 404% of the offered shares, according to a regulatory filing on Wednesday. Saudi Fransi Capital, the transaction’s financial advisor and underwriter, has priced the IPO top of the range at SAR 28.00 apiece. The fitness player intends to list 4.9 mn shares on parallel market Nomu, good for a 15% stake in the company.

What does Armah Sports do? It’s the owner and operator of the Optimo and B-Fit fitness chains.

ADVISORS- Saudi Fransi Capital is leading the transaction as financial advisor, lead manager, and bookrunner. Sate is legal council, PwC is financial due diligence advisor, while Baker Tilly is auditor, and Portas the market consultant, according to the company’s prospectus (pdf).

Other Nomu listings in the pipeline:

NUPCO, Saudi’s largest medical procurement firm;
Fad International (prospectus, pdf);
View United Real Estate Development (prospectus, pdf).

The Capital Market Authority issues new regulations for secondary offerings on Tadawul + parallel market Nomu

The Capital Market Authority (CMA) has put new rules in place to regulate secondary offerings on the main market, Tadawul, as well as parallel market Nomu. The public can give feedback on the new regulations (pdf) on the government’s public consultation platform until 21 December. The CMA says the rules aim to make the market for secondary share sales more transparent — and, as a result, more price efficient.

KEY COMPONENTS- Sellers will be obliged to follow specific rules on:

the appointment of financial advisors;
disclosure documents;
the book-building process,
the use of post-sale price-stabilization schemes.

CMA will have 10 days to review an intended secondary offering during which it can approve the transaction or require the financial advisor to provide additional information.

CMA can nix a sale if it thinks it is contrary to the interests of investors or would otherwise breach the Capital Markets Law.

Welcome to the wonderful world of lockups: Selling shareholders can’t sell any of their remaining shares for a period of six months following the completion of the secondary offering if the sale is on Tadawul. The lockup period lasts 12 months if it’s on Nomu.

The selling shareholder has to appoint a financial advisor, and that advisor will have to give the regulator notice of at least of 15 days ahead of the proposed date of the secondary offering and submit the full package of documentation with that notice.

The offering document needs to be available to the public on both the financial advisor’s website and the Tadawul’s at least five days prior to the start of the offering.

SOUND SMART- Uhm, Enterprise? What’s a secondary sale? It's a way for a publicly traded company to manage ownership stakes, try to drive more trading in its stock if it is “illiquid,” or to try to raise capital for reinvestment in the company or to pay down debt. In a secondary sale, the company and one or more of its shareholders (usually with large positions) want to sell a block of existing shares to the public. It doesn’t involve the creation of new shares after a vote of shareholders, but the selling of existing shares by current shareholders such as a founding family or a private equity firm.

Coverage: The news got ink in Bloomberg.

A look ahead to what we’ll be talking about for two solid weeks once COP28 kicks off

Pressure on KSA to cap carbon emissions and speed the transition to renewable energy will be the big issue that Saudi business and government leaders will be hearing about when COP28 kicks off this coming Thursday in Dubai. You can also expect to hear plenty about funding for climate-related loss and damage and other transition funding for emerging markets at the summit, which runs from 30 November through 12 December.

Setting the agenda: The gathering will focus on fast-tracking the world’s transition to green energy, slashing emissions before 2030, transforming climate finance, and building resilience, the COP28 presidency said in its letter to parties. A big focus of the summer will be the first of the so-called global stocktakes — or “GST” in COP-speak.

What’s a GST? They’re five-year checkpoints that track the progress (or lack thereof) made by the international community since the 2015 Paris Agreement.

Could the loss and damage fund finally see the light? Little progress has been made on the landmark loss and damage fund over the past year after delegates from some 200 nations signed off on the pact at the close of COP27. The fund, championed by Egypt’s climate envoy and COP27 host Dr. Mahmoud Mohieldin, aims to have wealthy nations pitch into a fund to help vulnerable countries cope with climate change.

Where does it stand? A draft agreement on the fund, reached earlier this month, will be put up for a final vote during COP28, but the AP is warning that it will face challenges getting through.

A new fund to help heavy industry go green? The Just Energy Transition Partnership (JETP) — a financing scheme under which Western donors help fund developing nation’s transition to green energy — should be replicated for heavy industries and hard-to-abate sectors such as steel, aluminum, cement and fertilizers, Mohieldin told Reuters.

FAST FACT- Emerging markets need some USD 387 bn a year through 2030 to adapt to climate-driven changes, the UN said in a report (pdf).

Care acquires 100% of Chronic Care Special from SMG

Care gets all of Chronic Care Specialized: The National Medical Care Co. (Care) said yesterday it has received the green light from regulators to go ahead with the full acquisition of Chronic Care Specialized Medical Hospital Co. The seller is Saudi Medical Care Group (SMG).

The final sale value is up in the air: Care and SMG said in September that the transaction was worth about SAR 193 mn, but yesterday’s disclosure waffled a bit, saying the “purchase price will be settled in accordance with the completion accounts mechanisms.”

It’s a related party transaction: SMG will still have exposure to Chronic Care through Care, where it has a 49.2% stake.

Financed by Gulf International Bank: Also in September, Care secured a long-term shariah-compliant loan worth SAR 350 mn from the Gulf International Bank (GIF) to sponsor its working capital needs as well as potential acquisitions and expansion bids.

Care’s new five-year strategy: The healthcare provider’s five-year strategy, launched in March of last year, includes extending its service offering in Riyadh and widening its patient base by serving new target groups, it said in a filing last year.

About Chronic Care Specialized: The Chronic Care Specialized Medical Hospital’s main center located in Jeddah, where it offers comprehensive medical care, long-term nursing care, elderly care, and palliative care, according to the company’s website.

Generic drugmaker Jamjoom secures SAR 37.8 in financing for its JV in Algeria

Generic drugmaker Jamjoom Pharma lines up SAR 37.8 mn in fresh funds for its JV in Algeria:Jamjoom ’s board of directors has signed off on a capital increase at its Algerian subsidiary that will allow the unit to obtain a DZD 666.4 mn (SAR 37.8 mn) shariah-compliant revolving credit facility from Al Salam Bank-Algeria, according to a company disclosure to Tadawul on Wednesday.

The background: Under Algerian law, Jamjoom has to provide a guarantee to Al Salam proportional to its shareholding in the JV. The capital increase will see Jamjoom on the hook for the equivalent of SAR 18.5 mn.

Use of funds: The JV is looking to build or buy a manufacturing facility, build up inventory, and pay day-to-day operating expenses. Jamjoom hasn’t said when it hopes the plant will become operational.

REMEMBER- Jamjoom hit a home run this year: The leading drugmaker pulled off the largest IPO on Tadawul since Aramco’s listing, rising by the maximum allowed in its trading debut last June. The owners raised SAR 1.26 bn with company shares valued at SAR 60 apiece.

Acwa Power secures certificate for phase 4 of 2.4 GW Hassyan Energy Project in the UAE

Acwa Power got the nod from the Dubai Electricity and Water Authority (DEWA) to begin commercial operations at the final unit of its 2.4 GW Hassyan independent power plant, it said in a disclosure to Tadawul on Sunday.

All now operational: The last 600 MW power unit joins three previous 600 MW units that already in service; the new income will start hitting Acwa’s income statement in 4Q.

About the plant: TheHassyan power plant in Dubai is set to be one of the largest in the GCC, according to Acwa’s website. The project was originally supposed to run on coal, but was switched to natural gas to align with Dubai’s 2050 clean energy strategy. Acwa owns 26.95% of this project, while DEWA owns 51%, with the remaining shares divided between Chinese companies Harben Electric Int. (HEI) and Silk Road Fund.

SOUND SMART- An IPP is a private entity that owns and operates facilities to generate electricity for sale to utilities and end users. An IPP is usually regulated by the state (as Hassyan is in the UAE), but is not owned or part of state-owned infrastructure and so can typically sell its output independently.

It’s been a busy run for Acwa: Acwa Power signed in October agreements worth USD 746 mn on energy-related projects during the annual Future Investment Initiative (FII) in Riyadh. That included a USD 500 mn agreement with US-based investment firm EIG to explore power generation, water desalination, green hydrogen and other projects in Gulf countries and Uzbekistan. It also landed funding from the European Bank for Reconstruction and Development (EBRD) and the OPEC Fund for International Development to finance a 240 MW wind power project in Azerbaijan.

Boycott of foreign brands gets little traction in KSA

It’s a particularly quiet morning fo Saudi in the international business press on this fine fall morning. Boycotts of western brands prompted by the furor over Israel’s war in Gaza are having limited impact in the Kingdom, Reuters reports.

Lots of people want MbS’ money, part 1: The Neom Investment Fund is among the backer of aviation startup ZeroAvia. We may not be on board with emissions cuts in aviation (see What We’re Tracking Today, above), but we’re going to back ZeroAvia’s bid to invent a hydrogen-electric engine for zero-emission flights, the Financial Times reports. And foundering Austrian conglomerate Signa doesn’t look like it’s going to get a lifeline from the Public Investment Fund (or from Mubadala … or Attestor … or Elliott Management … or anyone else, for that matter), Bloomberg suggests.

Tons of debt and financial services news. Plus: Privatizing schools, investment in Northern Border Region

EDUCATION-

Education Ministry is offering 1.3k schools to the private sector for 20 years, under a new development project launched by the Ministry, Deputy Minister Mohammed Al-Sudairi said at the Northern Border Investment Forum, Saudi Gazette reported on Saturday. The initiative will see private-sector players fully manage and operate 1.3k schools in the kingdom over the course of 20 years, in a bid to boost the quality of educational services and enhance public-private partnerships.

SOUND SMART- This is a smart public policy move (potentially enhancing access to quality education for students) and pro-private-sector at the same time. We need look no further than Egypt to see the impact on quality that opening up to domestic private investment in K-12 has had. Egypt has also opened some of the K-12 space to qualified foreign investors and now mandates that any new university opening there must have a foreign partner.

DEBT-

#1-SRC wraps up its SAR 20 bn sukuk program: The Saudi Real Estate Refinance company (SRC) — a subsidiary of the PIF — has closed a two-tranche sukuk issuance worth a combined SAR 3.5 bn, the Saudi Press Agency reports.This is part of SRC’s government-guaranteed SAR-denominated sukuk program.

#2-Intelligent Oud is set to launch a new sukuk program: Nomu-listed fragrance manufacturer Intelligent Oud has announced its intention to launch a new SAR 30 mn sukuk program, it said in a regulatory filing on Thursday. Afaq Capital is quarterbacking the program as the lead manager. The company’s share price rose 0.7% to SAR 55.9 on Thursday’s close.

#3- NDMC closes SAR 2.7 in its monthly local sukuk issuance: The National Debt Management Center (NDMC) has covered all of the investor orders it has received for two local sukuk issuances in November, according to NDMC website.

By the numbers: Some SAR 2 bn have been allocated to the first issuance at a 5.03% yield and a price of SAR 96.6, maturing in 2031. The second issuance worth SAR 668 mn has a longer maturity in 2033 and thus carries a cheaper price of SAR 82.3 and a yield of 5.08%.

FINANCIAL SERVICES-

#1-Dnaneer gets license to provide crowdfunding solutions: The Saudi Central Bank (SAMA) has authorized Shariah-compliant finance firm Dnaneer Financing Company to offer debt-based crowdfunding solutions, the central bank announced on Wednesday. The move brings the total number of licensed companies offering peer-to-peer lending in the Kingdom to eight. It comes as part of SAMA’s efforts to promote innovative and inclusive financial solutions.

#2-Ins. Authority begins work as independent sector regulator: The Ins. Authority, established in September of this year, kicked off operations as an independent regulatory authority for the kingdom’s ins. sector, SPA announced on Thursday. The decision, which was approved by the Council of Ministries, comes as part of the Kingdom’s Vision 2030 and the Financial Sector Development Program (FSPD) launched in 2018.

IN DETAIL- The IA is responsible for both sides of the market, regulating and driving development of providers, brokers and others on the corporate side and protecting the rights of policyholders and beneficiaries on the other.

INVESTMENT-

Investments worth SAR 146 mn for NBR: MoUs worth a combined SAR 146 mn were inked on the sidelines of the Northern Border Investment Forum on Saturday to attract investments to and develop the Northern Borders Region (NBR), Al Eqtisadiah reported on Saturday. NBR inked agreements with state-owned mining company Maaden to launch three secondary schools, and another one with Jarir Marketing to launch a bookstore. Maaden also signed agreements with the Northern Borders University and Arar Chamber of Commerce.

TAX-

Qatari’s cabinet has signed off on the draft of a treaty with Saudi to avoid double taxation, Qatar News Agency (QNA) reports.

ENERGY-

Taqa and Petrojet will partner on Africa, ME oilfields:The Industrialization and Energy Services Company (Taqa) signed a MoU with Egypt’s Petrojet to form a strategic alliance focused on exploring and pursuing integrated oilfield projects in Africa and the Middle East, a statement by Taqa read on Tuesday. The two are pursuing contracts to build production facilities as well as provide engineering, fabrication, and equipment manufacturing services.

DIGITAL SOLUTIONS-

Tam Development to provide digital services to Communications and Space Technology Commission: Consultancy company Tam Development signed a SAR 13 mn one-year contract to offer consultancy services and digital solutions to the Communications and Space Technology Commission, it said in a disclosure to Tadawul on Wednesday.

Goldman sees global IPO market taking off in 2024. PLUS: KSA leads regional market in 3Q

Global IPO market, dealmaking to accelerate next year:Goldman Sachs sees the global IPO market picking momentum and is penciling in an acceleration in activities in 2H 2024 on expectations of a less restrictive monetary environment, according to a Goldman Sachs briefing. “We do expect to see a reasonable pickup in dealmaking activity, especially now that we seem to be through the other side of this interest rate hiking cycle,” said Jim Esposito, the co-head of Goldman Sachs’ Global Banking & Markets business.

Saudi dominated the regional IPO market in 3Q: Five out of the six main-market IPOs in the MENA region came out of Saudi with Lumi Rental drawing the highest proceeds (USD 291 mn), according to Ernst and Young. MBC Group is set for what could be one of the region’s top IPOs this year.

ALSO FROM PLANET FINANCE-

Gulf funds, including our own PIF, are facing great headwinds from the Biden administration, as part of a wider US campaign to scrutinize countries with closer ties to China. The Committee on Foreign Investment in the US is reportedly reviewing over six pacts with PIF, UAE’s ADIA and Mubadala Investment Co over national security risks. (Reuters)

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Euro Stoxx 50	4,372.10	+0.3% (YTD: +15.3%)
Brent crude	USD 80.58	-1.0%
Natural gas (Nymex)	USD 2.86	-1.5%
Gold	USD 2,023.50	+0.5%
BTC	USD 37,290.05	-1.4% (YTD: +129%)

THE CLOSING BELL-

The TASI fell 0.1% yesterday on turnover of SAR 3.7 bn. The index is up 5.8% YTD.

In the green: Arab Sea (+8.9%), SPIMACO (+4.9%) and Naseej (+4.4%).

In the red: AlOmran (-8.4%), AlBaha (-6.7%) and DWF (-3.2%).

CORPORATE ACTIONS-

Just in time for COP28: Sisco’s management has gotten board approval to rebrand itself the Sustainable Infrastructure Holding Company and launch a share buyback with the aim of snatching up 8.16 mn shares to hold as treasury assets. The Jeddah-based company operates export zones, KSA’s first privately built container terminal, and a desalination facility. Going forward will focus on logistics, desalination, water purification, and residential housing, and commercial buildings. SEe Tadawul and Argaam for more.

SAMA gives OK to Gulf General’s 40% capital cut: Gulf General Cooperative Ins. Co. received approval from SAMA to write-off 40% of its capital down to SAR 300 mn from SAR 500 mn, according to a company disclosure to Tadawul last week. The write-off aims to offset the company’s accumulated losses, it said in a separate statement, announcing the appointment of Yaqeen Capital as financial advisor for the capital reduction process. No further details on the transaction have been disclosed.

Obeikan Glass approved a 33.3% capital increase to SAR 320 mn in a general meeting on 23 November “to strengthen the capital base and support future activities.” The company will finance the increase through “the capitalization of SAR 80 mn of retained earnings.” (Tadawul)

CALENDAR

NOVEMBER

26-28 November (Sunday-Wednesday): Reliability & Maintainability Conference & Exhibition 2023, Grand Hyatt Hotel, Al Khobar.

26-28 November (Sunday-Tuesday): NCT Middle East, Riyadh.

27-29 November (Monday-Wednesday): Saudi HORECA, Riyadh International Convention & Exhibition Center, Riyadh.

30 November (Thursday): Start of Noor Riyadh show, King Abdullah Financial District, Riyadh.

DECEMBER

4 December (Monday): Saudi Green Initiative Forum, Dubai.

4-7 December (Monday-Thursday): FIABCI Global Leadership Summit, Riyadh.

5 December (Tuesday): Taxcom Middle East, Riyadh.

5-6 December (Tuesday-Wednesday): Education Investment Saudi, Riyadh.

6-7 December (Wednesday- Thursday): Collection and Recovery Middle East Summit, Riyadh.

16 December (Saturday): end of Noor Riyadh show, segment “The Bright Side of the Desert Moon, Riyadh.

18-20 December (Monday-Wednesday): Smart Grid Conference, Riyadh.

19-20 December (Tuesday- Wednesday): Saudi Airport Exhibition, Riyadh.

19-21 December (Tuesday-Thursday): International Digital Signage Expo 2023, Riyadh.

2024

JANUARY

9-11 January (Tuesday-Thursday): Future Minerals Forum, Riyadh.

14-17 January (Sunday-Wednesday): The International Exhibition for construction and building materials (Saudi Projects), Jeddah.

28-31 January (Sunday-Wednesday): Saudi Franchise Expo 2024, Jeddah.

FEBRUARY

4-6 February (Sunday-Tuesday): SIMEC International Expo, Riyadh.

5-7 February (Monday-Wednesday): Saudi HORECA 2024, Jeddah.

12-14 February (Monday-Wednesday): The International Petroleum Technology Conference (IPTC), Riyadh.

22 February (Thursday): Founding Day (national holiday)

26-29 February (Monday-Thursday): Big 5 Construct Saudi, Riyadh.

26-29 February (Monday-Thursday): FM EXPO SAUDI, Riyadh.

26-29 February (Monday-Thursday): Stone and Service Saudi Arabia, Riyadh.

MARCH

2 March (Friday): end of Noor Riyadh show, segment “Refracted Identities, Shared Futures”, Riyadh.

4-6 March (Monday-Wednesday): International Conference on Sand and Dust Storms in the Arabian Peninsula, Riyadh.

4-7 March (Monday-Thursday): LEAP 2024, Riyadh.

11 March (Monday): Flag Day (national holiday)

Signposted to happen sometime in March:

Ramadan

APRIL

Signposted to happen sometime in April:

Eid Al-Fitr (national holiday)

MAY

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

5 June (Wednesday): World Environment Day.

Signposted to happen sometime in June:

Eid Al-Adha (national holiday)

SEPTEMBER

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

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

DECEMBER

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

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