Rising protectionism in the West scuppers Saudi chip investment, threatens UAE newspaper buy

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WHAT WE’RE TRACKING TODAY

TikTok is still on the naughty list + we’re exploring a rare earths exchange

Good morning, wonderful people, and welcome to another busy Monday as we resume our four-day publication week. We’re still in zero issues and won’t move to a five-day-a-week publication schedule until a little closer to our January launch slot.

We have tons of news for you this morning, so we’re going to jump right in today without further preamble.

HAPPENING NOW- TikTok is still on the naughty list. Google Trends shows a 25% drop in use in KSA of the Chinese social network in the face of a popular boycott triggered by allegations that it was censoring or downplaying Saudi accounts from cheering for the social and economic changes sweeping the Kingdom. Arab News has more.

PSA #1- Zatca really, really wants you to pay your taxes. The Zakat, Tax, and Customs Authority is warning folks with unpaid taxes that they have until year’s end to pay up or face fines and the possibility of jail time.

PSA #2- Warning to late-filers: Privately held companies could face fines ranging from SAR 8k-25k for failing to file their financial statements on time, Okaz, citing an official at the Trade Ministry.

PSA #3- Cloudy skies over Riyadh this morning will clear by afternoon, setting up a sunny day with a high of 24°C. Look for a mix of sun and clouds in Dammam (high of 26°C), while in Jeddah it’s going to be a warm 33°C at this afternoon’s peak, according to our favorite weather app.

** You’re reading Zero Issue #007 of EnterpriseAM KSA.

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WATCH THIS SPACE

#1- Industry Ministry mulls a rare earths trading platform: The Kingdom is looking into the feasibility of a new commodity trading platform focused on raw materials that are key to battery technology, smartphones, computers, and our green future, including lithium and rare earth minerals, Vice Minister of Industry and Mineral Resources Khalid bin Saleh Al Mudaifer told Reuters in an interview last week.

What he said: “To be a minerals hub, you have to have it all and we are studying a future minerals commodity exchange for graphite, rare earths, lithium, cobalt, and even nickel, as there is no efficient commodity exchange nor price-finding mechanism for some,” he said.

A final decision is at least six months out, Al Mudaifer said, noting that the platform, under discussion for three months now, may still turn out not to be feasible: “The quantities are small and the specifications differ. It's not as easy as aluminum or crude oil,” he said.

Uh, Enterprise, what’s a rare earth? Rare earth elements are a family of 17 metallic elements that are used in high-tech consumer products (smartphones, laptops), electric and hybrid vehicles, lasers, guidance systems, and more.

Where do they come from? The market is largely split right now between producers in China (38% of output), the US (33%) and Australia (12%). In our corner of the world, Egypt is making a play as many countries look to curb Chinese and US dominance in the market, which is hotly political: The US has invoked a Cold War statute to boost its supply.

#2- Chinese, Korean textile companies face anti-dumping probe: The General Authority for Foreign Trade has launched an anti-dumping probe that will look into claims raised by Filing and Packing Materials Manufacturing Co, (FIPCO) affiliate FPC alleging that competitors have been dumping PVC-coated textiles and fabrics on the Saudi market. The probe could take as long as 12 months.

Sound smart- Dumping allegations are typically raised when a commodity is sold in export markets at below-market prices thanks to either subsidies and / or a supply glut in the market of origin.

Background- It’s the second fair competition investigation GAFT has launched in as many weeks after opening in late November an investigation of whether China and Russia are dumping SNF, a key cement and textiles additive, on Saudi shores.

COP WATCH-

It’s day five of COP28 in Dubai. It’s finance day and another track is set to look at gender and climate. “With world leaders having left the conference in Dubai, expect the finance talk to be a little more detailed and the announcements a little less bold, with nitty-gritty discussions meant to improve financial plumbing but not necessarily grab headlines or photo ops,” Reuters writes.

Also happening in Dubai today: The Saudi Green Initiative Forumat COP28, bringing together corporate leaders, policy types, and government officials.

Big news for the oil and gas industry:

Saudi Arabia is headlining the decarbonization of the hydrocarbon industry at COP28: The Kingdom and the COP28 Presidency jointly launched a landmark Oil and Gas Decarbonization Charter (OGCD) in a bid to cut operational emissions from the sector by 2050, a statement by COP28 read on Saturday. Saudi Aramco is one of the headline backers of the agreement.

Why this matters: Some 50 companies, representing over 40% of global oil production, have signed the charter. State-owned producers accounted for 60% companies that have signed on.

What they’re promising to do: Producers are committing to:

net-zero operations by 2050;
an end to routine flaring by 2030;
and near-zero upstream methane emissions.

ALSO- Signatories have promised to ramp up investment in renewables, low-carbon fuels, and negative emissions technologies — and have pledged to be more transparent about greenhouse gas emissions while allowing independent verification.

The activist set isn’t having it, with the umbrella group 350.org telling Bloomberg that decarbonizing oil and gas is a sideshow compared to a legally binding package to phase-out fossil fules.

ALSO AT COP28- Preservation in AlUla: The Royal Commission for AlUla (RCU) and leading conservation organization Space for Giants have signed an agreement for the preservation of biodiversity on the sidelines of COP28, according to a statement.

Want to go deeper on everything happening at COP28? Enterprise Climate has got your back.

OIL WATCH-

Saudi and Russia will continue with oil production cuts for early 2024, but last Thursday’s meeting of OPEC+ countries failed to reach consensus on a larger group cut as African producers led by Angola dug their heels in, saying, “We will produce above the quota determined by OPEC.” Reuters and Bloomberg have the story.

Lula wants to shake up the group. The president of Brazil — a recent invitee to the group — said in Dubai late last week that “I think it's important for us to take part in OPEC+ because we need to convince the countries that produce oil that they need to prepare for the end of fossil fuels.”

(NOT) HAPPENING THIS WEEK-

Germany’s Economy Minister is skipping a trip to Riyadh after being told by his chancellor to stay home and work on filling a hole in the country’s 2024 budget. Robert Habeck had been scheduled to touch down tonight in Dubai to attend COP28 before heading on to KSA, Oman, and Israel.

Still due in town: PGA Tour Commissioner Jay Monahan, who said last week that he would be in town to meet with Public Investment Fund Governor Yasir Al-Rumayyan about the PGA / Liv Golf / European Tour lashup. A deadline for the three to close a transaction looms on 31 December.

HAPPENING TOMORROW-

Riyadh Cement is leveling up to the Tadawul tomorrow, when the company moves from Nomu to make its trading debut on the main market.

That makes two upgrades from the baby bourse to the big show in as many weeks after homegrown burger chain Burgerizzr made the leap last month.

RANDOMLY NOTED-

DEBT WATCH- It’s official: The Saudi Fund for Development (SFD) has agreed for the second time to roll over its USD 3 bn deposit in Pakistan’s Central Bank (SBP) for another year, according to an SBP press release (pdf). We originally picked up the news from the Pakistani press on Thursday.

DATA POINT- KSA topped the list of Arab Gulf countries exporting to China in October, Mubasher reported last week, citing Chinese government figures. Our exports to the world’s second-largest economy were down 20% y-o-y to USD 5.5 bn from USD 7 bn in the same month last year.

A downward trend: Exports by Arab Gulf countries including KSA, the UAE, Kuwait, Iraq, Oman, Qatar and Bahrain, to China fell 14.2% y-o-y in October to USD 18.2 bn.

MORE INT’L EVENTS IN KSA-

#1- Riyadh will play host to the UNIDO General Conference in 2025. The gathering is set to take place on 25 November 2025, SPA reports.

KSA has big ambitions on the manufacturing front: Industry and Mineral Resources Minister Bandar Al Khorayef said the nod from UNIDO is “international recognition of the Kingdom’s position as an engine of economic growth and industrialization in the region and an affirmation of its commitment to promoting industrial development around the world.”

#2- Saudi Arabia will host the first two editions of the Asian Football Confederation (AFC) Elite finals after topping Iraq’s rival bid, the AFC said in a statement. The tournament replaces the existing Asian Champions League and will begin in September 2024. Asia's top 24 clubs will be divided into two leagues of 12 across East and West. We’re on track to host the following three seasons if the first season finals go well, AFC said.

#3- Will we get the rights to host the America’s Cup, too? Jeddah seems to be in the running to host the 2028 edition of the America’s Cup after pulling off what sport officials say was a “hugely successful” regatta in Jeddah over the weekend. Grant Dalton, chief executive of next year’s Barcelona edition of the cup, said that while it was “too soon” for KSA to host the 2024 event, “We may well be back. It’s up to [Saudi officials] if they want to bid of course.”

#4- It was a great weekend for Saudi tennis as the ATP Next Gen Finals came crashing to a close as Serbia’s Hamad Medjedovic closed out the final in Jeddah, taking home the Neom-sponsored trophy with a 3-4(6), 4-1, 4-2, 3-4(9), 4-1 victory over Frenchman Arthur Fils. The ATP gave plenty of love to tennis in the Kingdom with slice-of-life coverage here and here and a spotlight on Saudi No. 1 Ammar Alhogbani, who made a return to professional tennis after a stint as national team development officer for the Saudi Tennis Federation.

CIRCLE YOUR CALENDAR-

The 2024 Saudi Games continue today:

Today’s finals: Karate, muay Thai, para table tennis, fencing, and fustat
Also today: Plenty of basketball action plus chess.

The games wrap on 10 December.

The Red Sea Film Festival continues through Saturday, with Hollywood and European A-listers set to attend. Among them: Johnny Depp, Will Smith, Sharon Stone, and Alessandra Ambrosio.

Metallica is coming to Riyadh on Thursday, 14 December pas part of the eclectic music festival Soundstor m. Soundstorm runs 14-16 December with a lineup that also includes Pharrell Williams, Chris Brown and Her, DJs Tiesto and David Guetta, Black Eyed Peas, and others.

Cycling fans have just 11 sleeps left until the Arab Road Cycling Championship comes to Riyadh, with the event running 15-23 December.

Tickets are on sale for the 2024 Saudi Arabian Grand Prix with less than 100 days to go until the racetrack roars to life in Jeddah from 7-9 March. Grandstand, premium hospitality, and general admission tickets are now available.

Rising protectionism in the West scuppers Saudi chip investment, threatens UAE newspaper buy

Welcome to the new face of protectionism: A generation ago, protectionism was all about raising trade barriers to protect domestic industries. Today, it’s taking on a new flavor: Blocking Arab capital from industries that western nations consider strategic.

We’re not being hyperbolic: A US watchdog has reportedly forced Aramco Ventures’ VC fund Prosperity7 to fully divest Rain Neuromorphics, a Silicon Valley AI chip startup, Bloomberg reports, citing unnamed sources it says are familiar with the matter.

What happened? The Committee for Foreign Investment in the United States (CFIUS) has the authority to "review and to take action to address any national security concerns arising from certain non-controlling investments and real estate transactions involving foreign persons," according to the US Treasury website.

CFIUS reportedly told Prosperity7 to unwind the transaction “sometime in the last year,” Reuters notes, leading the VC to flip its entire stake to US-based investment firm Grep VC. The USD 1 bn Saudi firm had made a commitment to Rain’s USD 25 mn series A round. The round was joined by existing institutional investors and angel investors including Buckley Ventures, and Loup Ventures.

What’s Rain? Altman-backed Rain is looking to design AI chips modeled on the human brain and claims that its technology will make AI “radically” more affordable. It is backed by OpenAI impresario Sam Altman.

The move could throw a wrench into Altman’s plan to raise more capital in the GCC for a separate chipmaking venture. Altman was reported to be working to line up investment from the Middle East for a potential chip venture code-named Tigris that aims to compete with semiconductor giant Nvidia.

Key words: Chips + China? Tensions between Washington and Beijing over semiconductors have been on the rise for a while now, with the Biden administration broadening the list of AI chips banned from export to China back in October. That promoted China to tighten export controls on graphite, a material essential to the construction of batteries used in electric cars and other green energy systems. EnterpriseAM Egypt has the breakdown here.

Protectionism isn’t only in tech: UK Culture Secretary Lucy Frazer has raised a barrier to the takeover by Abu Dhabi-based investors of newspapers the Telegraph and the Spectator with a “public interest intervention notice.” The notice cites preserving editorial independence as a major concern and directs UK communications regulator Ofcom to investigate whether the takeover by RedBird IMI would have an impact on freedom of the press in the UK.

BACKGROUND- Abu-Dhabi-backed RedBird IMI, run by former CNN boss Jeff Zucker, last month offered USD 750 mn to the owners of the Telegraph and Spectator with pledge to pay down debt the controlling family owed to Lloyds.

Companies from some countries are exempt from CFIUS review, including the UK and New Zealand (pdf). Other Western countries have similar mechanisms restricting investment including the UK’s National Security and Investment Act, Canada’s Investment Canada Act, and Australia’s Foreign Investment Review Board.

MBC prices IPO at SAR 23-25 per share, is fully covered in first hour of subscription period

Bookbuilding for regional broadcaster MBC’s IPO got underway with a bang on Thursday as bankers took orders in the first hour sufficient to cover 100% of the offering. The subscription period runs through Tuesday, 6 December, Bloomberg reports. MBC announced plans to go public two weeks ago.

The IPO values the company at as much as SAR 8.1 bn: The advisors on the transaction said they expect to price the offering atSAR 23-25per share (pdf), valuing the company at as much as SAR 8.1 bn, according to Enterprise calculations. This range is meant to guide the bid offers made by institutional advisors. That would put the value of the IPO at up to SAR 831 mn. Bankers are expected to give word on the price of the offer shares on 12 December.

Institutional investors will have until 6 December to place orders, according to a Tadawul filing. The institutional tranche of the sale will account for at least 90% of shares on offer, while no more than 10% will be allocated to individual investors. Individual investors will be able to place orders between 14 December and 18 December, according to the prospectus (pdf).

What’s on offer? Some 33.25 mn ordinary shares are up for grabs, good for a 10% stake in the company after it had issued the new shares and upped its share capital through a capital increase, the disclosure reads. The company is owned by the state’s Istedamah with a 60% stake, while founder and chairman Waleed Al Ibrahim holds the balance. Fully 90% of the offer shares in the Reg-S-compliant transaction are earmarked for institutional investors.

Who’s selling? Istedamah will be selling shares equivalent to a 6% stake in the company and will remain the majority shareholder post-execution with a 54% stake. Al Ibrahim is selling the equivalent of a 4% stake. The company’s CEO had earlier told reporters that Al Ibrahim would not be selling.

Check out our previous coverage herefor a rundown on use of proceeds and KPIs for MBC.

ADVISORS-Our friends at HSBC are quarterbacking the transaction as leader manager, whileJP Morgan, and SNB Capital are on board along with HSBC as joint financial advisors as well as joint bookrunners and underwriters, according to the prospectus (pdf). 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 as receiving banks, while AS&H and Clifford Chance are legal counsel. EY is acting as auditor, while PwC is financial due diligence advisor and market consultant, and Brunswick is running media.

NEOM’s investment fund acquires 6% of Technogym for EUR 111 mn

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NEOM grabs 6% of Italy’s Technogym: The NEOM Investment Fund (NIF) has acquired 6% of regionally ubiquitous Technogym with a EUR 111 mn (SAR 453 mn) investment, Reuters reported on Friday, citing a company statement. NIF plans on being a long-term minority shareholder in the Italian fitness-equipment maker through the acquisition, it added.

Expect the transaction to push Technogym even further into the Middle East, an analyst from Equita tells Reuters.

All-in, NIF paid a 15% premium compared to Thursday’s closing price on the Borsa Italiana. NIF bought 8.8 mn shares of the Milan-listed company following a reverse accelerated bookbuilding operation on Thursday, then entered into a derivative acquisition to grab another 3.3 mn shares at the same price, according to the business newswire.

SOUND SMART- A reverse accelerated bookbuild operation is when a publicly-listed company buys back some of its shares in a short time period. Usually, an underwriter would set a minimum buyback price and a tight deadline for the sale.

ADVISORS- JP Morgan acted as the transaction’s sole bookrunner, while Rothschild acted as financial advisor for the NIF.

BACKGROUND- This is just the latest in a strong of global investments announced by NEOM’s new strategic investment arm, NIF, since its launch in late October. NIF has since invested in companies including Pony.ai, Regent, Boom Technology, BluNalu, Animoca Brands, and Volocopter.

PIF TAKES 49% OF ROCCO FORTE HOTELS

The Public Investment Fund has taken 49% take in Sir Rocco Forte’s eponymous luxury hotel chain, the Financial Times reports, noting it as the latest in a strong of luxury hotel investments the PIF has last year “bought minority stakes in luxury hotel groups Aman Resorts and Habitas,” the FT notes.

Forte will use the funds to open new properties in the Middle East, Italy and the United States, the salmon-coloured paper quoted the company’s chairman as saying.

The transaction values Forte at EUR 1.5 bn, according to an industry publication, which notes that Rocco Forte Hotels has 15 properties in Italy, Belgium, the UK, Germany and Russia with three more in the pipeline.

Riyadh Steel, Armah Sports close up in Nomu debuts

There are no signs that qualified investors are tiring of offerings on Nomu, the Tadawul’s regulation-light parallel market for small- and medium-sized enterprises.

Shares of Riyadh Steel rose 3% in their first day of trading on Nomu yesterday, closing at SAR 17.5 a piece. The steel manufacturer listed 50 mn shares, good for a 20% stake.

Armah Sports made its SAE 137 mn debut on the parallel market Nomu on Thursday, with its shares closing up 1.8% at SAR 28.5 a piece. The company listed nearly 5 mn shares, good for a 15% stake. Saudi Fransi Capital quarterbacked the transaction as financial advisor, lead manager and bookrunner, STAT acted as legal counsel, PwC and Bakertilly were auditors, while Portas acted as market consultant, according to the prospectus (pdf).

Nomu in numbers: With Armah’s listing, the number of Nomu-listed companies has gone up to a total of 76, with 84% of them debuting only since January 2022, according to Argaam.

Other Nomu listings in the pipeline:

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

Why it matters: The parallel market has been on a tear this fall, seeing high demand from qualified investors for a run of IPOs. Yes, they’re smaller. And yes, they’re open only to qualified investors. But the thesis is that Nomu companies will learn the ins and outs of being a public institution as the best of them grow — and ultimately make the leap to the main market, as the parent company of homegrown burger chain Burgerizzr did last month and as Riyadh Cement will do tomorrow.

Trade surplus falls in 3Q 2023 on lower oil output

Saudi Arabia’s trade surplus contracted in the third quarter of this year as exports fell and imports rose, forcing the nation’s trade surplus down to SAR 100 bn (a 54% drop), according to figures from the General Authority for Statistics (pdf).

By the numbers:

Exports were down 25% y-o-y to SAR 300 bn in 3Q 2023
Imports rose 9.3% to SAR 200 bn

Oil production cuts weigh heavily on exports — and the economy as a whole. Oil exports fell 27.8% y-o-y to SAR 231 bn in 3Q 2023. Meanwhile, non-oil exports fell 13% y-o-y to SAR 68.7 bn. The economy contracted 4.5% y-o-y in 3Q on the back of lower oil activity even as the private sector boom continued.

Non-oil exports accounted for 77% of total exports in 3Q 2023, down from 80% in the same quarter last year. Exports of chemical exports fell 34% y-o-y in 3Q 2023, while plastic and rubber exports declined 18.5% in the same period.

China remains our biggest trade partner:While the value of our exports to China declined 25% y-o-y in 3Q 2023 to SAR 49 bn, Beijing remained our biggest trade partner, taking 16.4% of our total exports, followed by Japan, South Korea, India, UAE, USA, Bahrain, Poland, Egypt, and Taiwan. On the flip side, our imports from China have increased 8.6% y-o-y to SAR 40.6 bn in 3Q 2023, cementing its position as our biggest exporter.

DP World invest some SAR 1.28 bn into the south container terminal at Jeddah Islamic Port

DP World is looking to spend SAR 1.28 bn on upgrades at its south container terminal at Jeddah Islamic Port, according to a press release. It has lined up funding from lenders including Saudi Awwal Bank (SAB) and Bahrain’s Gulf International Bank.

What we know: Developments will include deeper berths and improvements to quay walls to allow larger vessels with berths of up to 18 meters to call at the terminal. Plans also include the establishment of a container yard and an engineering workshop for maintaining terminal equipment, the statement said.

Background: DP World was awarded a concession in April 2020 by Saudi Ports Authority (Mawani) to continue managing and operating the south container terminal at Jeddah’s port for a further 30 years. The agreement committed DP World to investing SAR 3 bn in a bid to double the terminal’s capacity to 5 mn TEU. The upgrades are planned in four phases and should wrap up by 2024. The overhaul is also supposed to see technological upgrades, increased automation and digitalisation, and a decarbonization drive, the statement said.

About the terminal: The south container terminal is DP World’s first terminal concession outside of the UAE. It is part of Jeddah Islamic Port, which handles 59% of KSA’s imports.

ADVISORS- UK-based law firm White & Case advised DP World.

Ma’aden, Ivanhoe’s mining venture has kicked off exploration in the kingdom

It’s a go for Ma’aden, Ivanhoe mining JV in the Kingdom: A joint venture between state-owned mining giant Ma’aden and US mineral development company Ivanhoe Electric has launched exploration activities in KSA, a according to a statement by Ivanhoe. The JV, which was set up earlier this year, will have access to some 48.5k sq km of underexplored land on the Arabian Shield.

Ma’aden is looking to climb the value chain: Ivanhoe’s exploration gives Ma’aden access to proprietary technology that will enable allow it to prospect for metals including copper, nickel, gold, and silver. The move plays directly into the Kingdom’s strategy of unlocking its mineral wealth.

This has been brewing for months: Ma’aden and Ivanhoe finalized the setup of their mining exploration, a 50-50 owned JV known as Ma’aden Ivanhoe Electric Exploration and Development.

REMEMBER- Ma’aden owns up 9.9% of the US mining company: In a series of transactions announced earlier this year, Ma’aden has pumped in some USD 127.1 mn in Ivanhoe for a 9.9% stake in the company and representation on Ivanhoe’s board.

BACKGROUND- KSA is looking to tap into its USD 1.3 tn worth of mineral reserves:Officials estimate the that the Kingdom could be sitting on metals and minerals worth more than USD 1.3 tn. KSA is looking to become a global hub for “green metals,” Energy Minister Prince Abdulaziz bin Salman said during the Future Minerals Forum earlier this year.

Arabia Insurance elects new chairman and vice chairman

Arabia Ins. names new chairman, vice chairman:Arabia Ins, Cooperative Co.'s (AICC) board of directors have appointed Abdulaziz Saleh Al Omair as chairman of the company, according to a disclosure to Tadawul yesterday. Al Omair had been the company’s vice chairman since 2014. The announcement comes after the company accepted the resignation of its former chairman Abdulaziz Abdulhadi Al Qahtani. Muneer Butros AI Mouasher has been named vice chairman. Their terms expire in April 2026.

Oil producers’ backsliding climate policy is starring Aramco

It’s a slow morning for Saudi Arabia in the foreign press today, with COP-talk leading the conversation. Bloomberg thinks a Saudi-led agreement to decarbonize the hydrocarbon industry is “controversial.” The story also got ink from Financial Times, which separately notes that the UN’s secretary-general has “lambasted” the COP28 presidency’s net zero charter, formulated and unveiled with Saudi backing.

Business Insider writes that the Royal Saudi Navy is stepping up to participate in and lead more maritime missions in concert with security partners after recent investments in new warships and technology.

The usual suspects, meanwhile, are harping about the Red Sea Film Festival, suggesting Hollywood celebrities should have stayed home. Another of the same usual suspects is banging on about megaprojects in KSA.

Lots of transport-type news this fine fall morning

RAIL-

Saudi Arabia Railways has inked a contract with Al Jabr Automotive to transport thousands of cars annually via freight trains, according to a statement. Under the terms of the four year agreement, SAR will transport the vehicles from King AbdulAziz Port in Dammam to a storage and distribution yard in Dammam, writes state-owned Saudi Press Agency. SPA is presenting the pact as “first-of-its-kind” agreement that will also reduce the Kingdom’s emissions cutting the number of road trips taken by vehicle carriers.

CHEMICALS-

Speciality chemical production: The Methanol Chemicals Company (Chemanol), one of the world’s largest producers of speciality chemicals, has secured Energy Ministry allocations of the feedstock it needs to produce a range of specialty petrochemical products set to be “the first of their kind in the region,” it said in a disclosure to Tadawul yesterday. Output of methyl diethanolamine, choline chloride dimethyl disulfide, and N-methyl pyrrolidone will be used in the oil and gas, pharma, fertilizers, carbon capture industries, among others.

TRADE-

The KSA-Qatar Business Council met to discuss expanding bilateral trade and investments during the Made in Qatar 2023 exhibition, a statement by the Qatar Chamber read last week. Trade exchange between the two countries stood at QR 2.2 bn in 2022, a figure “that does not align with the aspirations of both sides,” according to the statement.

SPORTS-

PIF-backed Professional Fighters League (PFL) has landed a new multi-year broadcast agreement with sports network ESPN where the league will continue to broadcast its events including the regular season, playoffs, and world championship on the Disney-owned channel, according to ESPN website. SRJ Sports Investment — a subsidiary of the Public Investment Fund — bought a minority stake in PFL back in August, in a transaction that will see PFL launch an MMA league and Super Fight division in the Kingdom.

AUTOMOTIVE-

Lumi, MachinesTalk partner up for IoT powered car-sharing tech: Riyadh-based Lumi Rental Company signed a five-year SAR 28 mn agreement with IoT solutions provider MachinesTalk to boost fleet management through IoT and AI with satellite supported car sharing platform.

AND- Lumi has landed a purchase order worth 41.8 mn from the Royal Commission for Al Ula (RCU) to provide vehicle rental services to the commission, per a disclosure to Tadawul.

It’s been an eventful couple of months for the company: Lumi made its market debut on Tadawul in late September after it raised USD 290 mn in an IPO that saw it sell 30% of its shares on the market.

AEROSPACE-

Budget airline Flynas and Brazilian electric aircraft maker Eve Air Mobility want to roll out eVTOLs in Riyadh and Jeddah in 2026. The two inked an agreement last week on the potential rollout of the electric vertical takeoff and landing (eVTOL) aircraft and will study whether they can roll out the product as early as 2026.

What are eVTOLs again? These drone-like aircraft use electric propulsion and large omnidirectional fans to allow them to takeoff vertically, making them energy efficient, quiet, environmentally friendly, and eventually pilotless. Beyond their use as air taxis, the vehicles are expected to be able to operate on an inter-city basis and even be used for cargo shipping.

BACKGROUND- eVTOLs has been gaining steam in the kingdom, with Neom and German flying taxi maker Volocopter having successfully tested the kingdom’s first electric air taxi. Neom Investment Fund committed some USD 175 mn to Volocopter last year.

IN OTHER FLYNAS NEWS- Flynas launched its first direct flight between Jeddah and Brussels, it announced in a statement earlier this week. The budget airliner is set to operate three weekly flights to the next destination, it added.

SPACE-

Saudi Space Agency collaborates with Sierra Space:The Saudi Space Agency (SSA) has signed an MoU with US-based commercial space company Sierra Space to exchange knowledge on the development in the space field, SPA reported on Saturday. The agreement will focus on facilitating training for students and on-the-job training for SSA employees among other aspects of cooperation.

M&A-

Taiba to acquire 100% of Dur:Dur Hospitality Co’s board of directors has approved an offer by Taiba Investments to acquire 100% of the company’s issued shares, it said in a statement to Tadawul yesterday. Taiba shareholders approved a capital increase from SAR 1.6 bn to SAR 2.6 bn to acquire Dur’s 100 mn shares under the agreement terms, Argaam reported. It will be raised through the issuance of a new share in Taiba in exchange for every share of Dur. The transaction will see Dur go private as it delists its shares.

BTC breaks past 40k. Plus: Pure Health IPO, Aldar’s London buy

It’s a big morning for cryptobros: BTC is on a tear, breaking past USD 40k for the first time since May 2022. The rally is prompting some pundits to call the start of a bull run that could go as far as USD 100k in 2024, CNBC adds.

What gives? “Broad enthusiasm about [the possibility of] US interest rate cuts and [anticipation of] the imminent approval of US-stockmarket traded BTC funds,” Reuters suggests.

MEANWHILE- Healthcare giant Pure Health is planning to offer up to 10% of the company’s shares in an IPO on the ADX, according to the prospectus published on Friday. The shares will debut at AED 3.26 per share, expecting to raise as much as AED 3.62 bn.

Selling shareholders: Alpha Dhabi Holding, AH Capital, Ataa Financial investments, International Holding Company, and ADQ.

The book-building process starts Wednesday: The six-day subscription period for both retail and institutional investors is between 6-11 December. The company will sell 4.5% to retail investors and 95.5% to institutional investors. Pure Health expects to be listed on the ADX on 20 December.

AND- ADX-listed Aldar Properties has made its first acquisition outside the MENA region with an AED 1.07 bn (SAR 1.09 bn) acquisition of UK property developer London Square, a residential and mixed-used developer primarily focused on Greater London.

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S&P 500	4,594.63	+0.6% (YTD: +19.7%)
FTSE 100	7,529.35	+1% (YTD: +1%)
Euro Stoxx 50	4,418.51	+0.8% (YTD: +16.5%)
Brent crude	USD 78.88	-2.5%
Natural gas (Nymex)	USD 2.81	+0.4%
Gold	USD 2,089.70	+1.6%
BTC	USD 40,023.22	+0.7% (YTD:+130.7%)

THE CLOSING BELL-

The TASI rose 0.4% yesterday on turnover of SAR 4.1 bn. The index is up 7.1% YTD.

In the green: Saudi German Health (+10%), Naqi (+6.3%) and Cenomi Retail (+6%).

In the red: DWF (-5.6%), Al Rajhi Takaful (-5.4%) and Naseej (-3%).

EARNINGS WATCH-

The Saudi Cable Company (SCC) reported a 202% y-o-y rise in losses on the back of a lingering liquidity crisis, it said in a disclosure to Tadawul. The company, which is now bidding to restructure, aims to return to profitability in 2025.

CORPORATE ACTIONS-

Saudi Enaya Cooperative Ins. Co.’s merger with United Cooperative Assurance will improve solvency, Enaya chairman Amr Khashoggi told Argaam last week. Shareholders of the two companies are scheduled to vote on the lash-up tomorrow Enaya said in a regulatory filing last month.

Energy cooperation with Brazil

Saudi Arabia and Brazil will work together on a range of energy projects, including electricity, green hydrogen, oil and gas, and petrochemicals under an MoU signed as part of a KSA-Brazil roundtable in Riyadh last week, according to state news agency SPA. The MoU was signed by Energy Minister Abdulaziz bin Salman and Brazilian Mining and Energy Minister Alexandre Silveira during a visit to Riyadh by Brazil’s president.

Background: Finance, transport, logistics, and the automotive sector were discussed as potential areas of collaboration during the KSA-Brazil Investment Forum earlier this year. KSA expressed hopes that the two countries will become “top-five investors in each other’s economy.” As we reported last week, Brazilian companies are increasing their investment in Saudi in industries including meatpacking and processing and aerospace.

CALENDAR

DECEMBER

30 November - 9 December (Thursday-Saturday): Red Sea Film Festival, Jeddah

3-7 December (Sunday-Thursday): The International Conference on Air Services Negotiations (ICAN2023), Riyadh.

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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