Good morning, wonderful readers. We are back in your inbox in the last week before the holy month, with an issue packed with everything business and finance in our Kingdom.

In today’s issue: Qurayyah Power Project will get a SAR 13.4 bn expansion from Acwa Power and SEC, while SRC finalized pricing of USD 2 bn sukuk to be listed on the London Stock Exchange’s International Securities Market. We also have a spotlight on what the FII Priority Summit means for US-Saudi investment potential, and sat down with Dalipal’s Chairman to discuss the anticipated manufacturing hub in Dammam.

HAPPENING TODAY-

#1- Week two of the four-day Big 5 Construct Saudi begins today at the Riyadh Front Exhibition & Conference Center. The Kingdom’s largest construction event will feature upwards of 2k exhibitors from more than 60 countries, showcasing innovations across the sector. The event is expected to attract over 75k participants.

#2- Riyadh International Disputes Week kicked off yesterday and runs through Thursday 27 February at the Hilton Riyadh Hotel Granada. The event brings together stakeholders and key players in the dispute resolution industry, including lawyers, ADR practitioners, legal advisors, judges, as well as public and private sector representatives from Saudi and abroad.

#3- The Public Sector Excellence Forum (PSX) takes place today at the Movenpick Hotel & Residence Riyadh. The biennial Riyadh-based forum brings together government officials, as well as local and international industry leaders and experts to explore solutions for improving public sector efficiency, public services, and the well-being of citizens.

#4- The biennial Riyadh International Humanitarian Forum takes place today and tomorrow at the King Salman Humanitarian Aid and Relief Center. This year’s edition, running under the theme “Navigating the Future of Humanitarian Response," will focus on improving communication between donors, humanitarian workers, and other stakeholders, research based on evidence-based practices, recruitment, and accelerating efforts to achieve the UN’s Sustainable Development Goals.

WEATHER- A windy Riyadh is set for a 20°C high and a 11°C low today, while Jeddah’s mercury is set to peak at 28°C and hit a low of 19°C. Meanwhile, Dammam will see winds, a high of 19°C high, and a low of 15°C.

WATCH THIS SPACE-

#1- Neom’s The Line is on track and “has never been scaled back,” COO Giles Pendleton told Al Arabiya during the outlet’s “exclusive first-ever media tour” of the megaproject. Media coverage of Neom’s flagship project has so far been “widely speculative,” Pendleton said.

The Line was always intended to be built out in phases, while officials have never said that they could complete the entire 170 km project in one shot, Neom CPO Roberto Penno said. The first phase — which will be 2.4 km long and will consist of three modules housing 200k residents — is scheduled to be up and running by 2034, the report said. “Hundreds” of cranes and some 10k workers are presently active at the construction site.

IN CONTEXT- The Line has been dogged by media allegations of a downsizing for much of thepast year, but Neom officials have consistently maintained that buildout was proceeding on schedule. Meanwhile, the Line’s Hidden Marina is set to become the first segment of the smart city to be operational, with contractors currently being sought for raft foundations tendered in six lots.

#2- Aramco is unlikely to issue performance-linked dividends this year, as the state-owned oil giant’s banknote-cycle is bound to cool off following a period of elevated payouts, Reuters reports citing a research note by JP Morgan’s analysts. While Aramco’s special dividends were backed by strong financials in 2022 and 2023, the leading lender is penciling down a more restrained approach for 2025 following FY 2024 earnings, due to be published on Tuesday, 4 March.

REMEMBER- Aramco expects to declare USD 124.3 bn for 2024, out of which USD 43.1 bn would be performance-linked dividends. The government, which owns 81.5% of the company, and the Public Investment Fund (PIF), holding 16%, have been key beneficiaries of these distributions.

#3- Abdul Latif Jameel Energy weighs sale of Spanish renewables firm to Apollo Global: NYSE-listed private equity firm Apollo Global Management is among potential buyers for Madrid-based Fotowatio Renewable Ventures (FRV), as Abdul Latif Jameel Energy & Environmental Services (ALJ) weighs a sale that could value the clean energy developer at around USD 2.1 bn, Bloomberg reports citing people it says are familiar with the matter.

The acquisition would rank among Spain’s largest renewable energy sales, underscoring the sector’s appeal to global investors. The family-owned business tapped JPMorgan Chase to advise on the transaction.

BACKGROUND- FRV, which ALJ acquired in 2015 for an undisclosed sum, boasts a global portfolio exceeding 3.5 GW. The Saudi firm previously explored a sale in 2019, attracting interest from Chinese state-owned China Three Georges and Shanghai Electric Power. However, negotiations stalled due to the outbreak of the pandemic.

#4- Two car rental firms are mulling IPOs: Cherry Rent-A-Car reportedly tapped BSF Capital and EFG Hermes as it gears up for a potential IPO, while Key Car Rental is also exploring a listing, Bloomberg reports, citing sources it says are in the know. No decisions have been made on the timing, size, or valuation of the potential offerings, with Cherry saying that it has yet to secure regulatory approval for an IPO.

The rationale: Local car rental firms expect increased tourism numbers due to government plans to invest USD 1 tn in the sector by 2030, writes the business information service.

REMEMBER- Saudi Arabia plans to reel in 70 mn foreign visitors annually by 2030, up from 30 mn in 2024, as it wagers on middle-class travelers from China and India to boost the tally. Meanwhile, The tourism sector accounted for 5% of GDP at the end of last year, with the government targeting 10% by 2030.

ALSO- SMC Hospitals reportedly tapped banks for potential local IPO, including EFG Hermes and SNB Capital, Reuters reports, citing sources it says are in the know. Plans for the listing are set to be made public before the summer.

We saw this coming: SMC CEO Bassam Chahine told Al Arabiya earlier this month that the group could consider a Tadawul IPO as a means to raise capital, but fell short of providing a timeline for any potential offering.

PSAs-

Don’t forget to file your VAT returns before the month is out: The Zakat, Tax, and Customs Authority is once again reminding businesses subject to VAT with annual turnover exceeding SAR 40 mn to file their January tax returns by Friday, 28 February, it said in a statement. Late submissions may incur fines ranging from 5% to 25% of the declared taxes.

DATA POINTS-

#1- Saudi Arabia’s crude exports fell 9.2% y-o-y in 2024, hitting a 14-year low of 6.1 mn bbl / d, according to figures from Middle East Economic Survey (Mees). Crude output also fell 6.8% y-o-y to 9 mn bbl / d.

#2- Total energy delivered to the Saudi grid was up 5% y-o-y in 2023 at 380.9k GW-hours, while total electricity consumption increased 5.7% to 327k GW-hours over the same period, according to the General Authority for Statistics’ (Gastat) latest electrical energy figures (pdf). The residential sector accounted for the greatest proportion of electricity consumption at 46.7%, followed by the industrial sector (18.5%), and the commercial sector (18.1%).

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THE BIG STORY ABROAD-

Germany’s critical elections are in the spotlight this morning: Center-right Christian Democrats came on top after snapping up 29% of the vote, with leader Friedrich Merz promising “independence” from an indifferent United States.

The bloc still needs one more coalition partner for majority, as far-right Alternative for Germany came in a close second with 21%, its highest share ever. Investors will be watching closely for government negotiations, hoping for a “debt brake” reform soon that will ease restrictions on fiscal spending and spur growth.

MEANWHILE-

• Trump administration fired 2k USAID employees and put thousands on leave starting yesterday. (NY Times)
• Israel has sent tanks into the West Bank for the first time since 2002, saying it will not allow any displaced Palestinians to return. (CNBC)