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Thursday, 8 May 2025

What We’re Tracking Today
Investment Watch
Debt Watch
Capital Markets
Ipo Watch
Infrastructure
Capital Markets
Earnings Watch
Kudos
Also On Our Radar
Planet Finance
Calendar

Ronn to set up Saudi hydrogen truck factories under three-year USD 4 bn plan

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Today at a glance

1

Investment Watch

Ronn to set up Saudi hydrogen truck factories under three-year USD 4 bn plan.
2

DEBT WATCH

Al Rajhi launches USD 500 mn sukuk issuance + SNB to debut AT1 sukuk.
3

CAPITAL MARKETS

Sab Invest launches Saudi Arabia’s first quant ETF.
4

IPO WATCH

Hawyia prices Nomu IPO at SAR 13 apiece.
5

INFRASTRUCTURE

Awarded projects value reaches SAR 13.8 bn in April.
6

CAPITAL MARKETS

Tadawul’s market cap grew over 450% in the last decade.
7

EARNINGS WATCH

Zain KSA, Marafiq’s bottom lines rise in 1Q + so many more.
8

KUDOS

Saudi b'naires’ wealth shifts as stock prices fluctuate.
9

ALSO ON OUR RADAR

The Kingdom’s first public e-buses are online in Tabuk.
10

PLANET FINANCE

Fed holds rates steady as tariff risks mount.

Thursday, 8 May 2025

What We’re Tracking Today
Investment Watch
Debt Watch
Capital Markets
Ipo Watch
Infrastructure
Capital Markets
Earnings Watch
Kudos
Also On Our Radar
Planet Finance
Calendar
1

WHAT WE’RE TRACKING TODAY

THIS MORNING: Saudis to be tested for occupational fitness + French aviation companies are coming next week

Good morning, ladies and gents, and happy THURSDAY. We wrap up the week with the latest on investment, debt markets, and the IPO scene that just keeps on giving.

Leading this morning’s news well: Ronn Motors is planning to establish hydrogen truck factories under a USD 4 bn initiative, while both Al Rajhi Bank and Saudi National Bank tapping into the sukuk market with new issuances. The Kingdom's capital markets are also buzzing, marked by Sab Invest's launch of the first quant ETF, and Hawyia Auctions pricing its Nomu IPO.

ALSO- The earnings season is in full swing, with Zain KSA, Marafiq and so many companies reporting their 1Q earnings. The details on all these stories, and more, are below.

HAPPENING TODAY-

Today is the last day for qualified investors to subscribe to Adeer Real Estate’s 20%stake offering on Tadawul’s parallel market Nomu. Each investor can subscribe to a minimum of 10 shares and a maximum of 250k at SAR 85 apiece. The final allocation of shares is slated for 12 May.

⚠️ WEATHER- The wind and dust just isn’t letting up: Dust storms and strong winds are expected to continue across parts of the Eastern Province, Riyadh, and Najran. Thunderstorms with winds and rain are also possible in Jazan, Asir, Al-Baha, and the highlands of Makkah and Madinah.

Riyadh is expected to see a high of 36°C and a low of 22°C today, while Jeddah’s mercury will go as high as 30°C and as low as 24°C. Makkah will see a 39°C high and 22°C low.

HAPPENING TOMORROW-

Season 2 of PFL MENA kicks off tomorrow with a full fight card, featuring Abdullah Al Qahtani vs. Islam Reda in the featherweight main event among other fiery matchups.

PSAs-

#1- Saudis to be tested for occupational fitness: The Human Resources and Social Development Ministry (HRSD) is seeking public feedback on mandatory fitness testing regulation for current and new government employees, as well as private and not-for-profit employees, the Saudi Gazette reports. You can weigh in on the draft through the Istitlaa platform until Monday, 19 May.

When will it apply? The testing is set to assess workers’ physical health and psychological aptitude, specifically when they start new jobs or professions, take on positions requiring regular medical checks, return from injury or long leave, among other cases.

#2- Fishing and pleasure boat owners in Jazan whose boats have been inactive for a year have until 5 June to visit the General Authority of Transport’s regional branch, the Authority said in a post on X. Boats unaddressed by the deadline may be removed by authorities without liability as part of efforts to enhance the maritime sector and improve the urban landscape.

WATCH THIS SPACE-

The Trump administration is considering renaming the Persian Gulf as the Arabian Gulf in its official records, a move that will be announced during the upcoming US president's visit to the Kingdom, the Associated Press reports, citing two unnamed US officials. The dispute over the naming of the Arabian Gulf area has been a long one that dated back centuries.

Not the most important thing on the agenda: Trump’s visit to the region is shaping up to be a busy one, where he will be accompanied by a host of US business executives to attend the Saudi-US Investment Forum on 13 May. The forum takes place a day before a rumored GCC-US summit that will reportedly host all regional leaders in a meeting with Trump to discuss Gulf investments in the US, arms agreements, and AI, in addition to regional issues including the Israeli-Palestinian conflict and Iran-US nuclear negotiations.

Some 20 French aviation companies are coming to Saudi Arabia to explore investment prospects and partnerships next week, Aleqtisadiah reports, citing French Embassy-affiliated Business France. The visit, held in collaboration with the General Authority of Civil Aviation (GACA), aims to drive investments in aviation, airports, and maintenance.

IN CONTEXT- The initiative comes amid rising French investment in the country, which has exceeded EUR 17 bn in 2024, positioning France as the Kingdom’s second-largest investor. Currently, 350 French companies operate in Saudi Arabia, including 170 with permanent presence. Recent delegations have also explored prospects in renewable energy, hydrogen, and technology sectors.

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THE BIG STORY ABROAD-

Global powers are rushing to calm the flammable situation in South Asia, while Pakistan is vowing a swift response that it promised will target military assets and stay clear from civilians. India’s widespread attacks in Kashmir and other provinces ended up killing 31 and injuring dozens, while Pakistan’s retaliation is estimated to have caused 12 casualties and tens of injuries.

OVER IN THE US- The Trump administration is planning to ease Biden’s last-minute restrictions on exports of advanced AI chips, introduced in January and set to take effect on May 15. The tiered system — which divided countries into three tiers that were allowed to receive unlimited, capped, or no exports — will reportedly be cancelled, and likely replaced with new rules aiming at handing the US more control over chips abroad. Shares of chipmakers rose on the news, with Nvidia up over 3%.

ALSO WORTH READING THIS MORNING-

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2

Investment Watch

Ronn to set up Saudi hydrogen truck factories under three-year USD 4 bn plan

Ronn to build hydrogen truck factory in the Kingdom: US-based hydrogen car manufacturer Ronn approved a three-year contingency framework worth up to USD 4 bn to launch a JV for hydrogen vehicles production in the Kingdom, according to a press release.

Big things coming: The JV plans to establish two hydrogen vehicle production facilities in Saudi Arabia to produce 10k hydrogen electric logistics trucks, 1k Ronn Phoenix sports vehicles, and a one-off Halo Hypercar. Engineering plans will be developed in the US, and training programs will be proved to upskill Saudi-based engineers.

The technical details of the production plants have not been yet disclosed, but the JV will disclose more details as more phases of the project get the green light.

About Ronn: Ronn designs passenger and commercial vehicles and urban logistics trucks in partnership with manufacturing and engineering firms like Roush and Magna Styer, according to its website. It’s working on launching hydrogen infrastructure strategic frameworks in a few regions in cooperation with contract supplier BayoTech.

Not the first: Hyperview Mobility is establishing the Kingdom’s first hydrogen-powered truckfactory and the Middle East’s first autonomous driving hardware factory under an MoU signed with the Public Investment Fund. The project targets to produce 1k hydrogen trucks and 300k self-driving hardware units annually, with 60% of truck output earmarked for export.

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3

DEBT WATCH

Al Rajhi launches USD 500 mn sukuk issuance + SNB to debut AT1 sukuk

The Kingdom’s debt markets are still going strong, with new sukuk issuances on the way from Al Rajhi Bank and SNB.

#1- Al Rajhi kicks off USD-denominated sukuk sale: Tadawul-listed Al Rajhi Bank priced its USD 500 mn five-year sukuk at 95 bps over US Treasuries — 30 bps tighter than initial price thoughts, Zawya reports. The paper attracted USD 1.2 bn in orders (excluding joint lead manager interest). Al Rajhi Sukuk is the issuer and trustee.

Use of proceeds: The senior unsecured Wakala notes will be listed on both the London Stock Exchange and Taiwan’s Taipei Exchange, with proceeds earmarked for general corporate purposes, according to a separate report.

ADVISORS- Al Rajhi tapped Standard Chartered Bank (Taiwan) as lead manager, with Mashreq, Al Rajhi Capital, Bank ABC, Emirates NBD Capital, and the Islamic Corporation for the Development of the Private Sector acting as structuring agents.

#2- SNB gears up to hit the local debt market: Tadawul-listed Saudi National Bank (SNB) plans to issue SAR-denominated additional tier-one (AT1) sukuk to shore up its financial buffers, it said in a filing to Tadawul. The proposed offering is subject to regulatory approvals, with no pricing, yield, or timing details disclosed yet.

ADVISORS-SNB Capital is acting as the sole bookrunner, lead arranger, and lead manager on the transaction.

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4

CAPITAL MARKETS

Sab Invest launches Saudi Arabia’s first quant ETF

Sab Invest launched the Kingdom’s first quantitative ETF, which will track the S&P Saudi Domestic Shariah index, according to a statement. The fund will replace the Sab Invest MSCI Tadawul 30 Saudi ETF on Tadawul, a separate disclosure to Tadawul read.

The details: The Sab Invest Saudi Quant ETF is open to foreign investors in the local market and is expected to raise USD 100 mn from institutional and retail investors this year, Osama Alowedi, chief investment officer at Sab Invest, told Bloomberg.

The fund aims to achieve an annual return of 2% above the Saudi market, Alowedi added. Average annual gain for Saudi stocks from 2020 through 2024 was about 10%, according to Bloomberg.

SOUND SMART- Quant funds use quantitative analysis, where computers use algorithms to analyze large datasets and identify patterns and correlations. The data-driven approach — encouraged by increased data availability and advances in computing technology — aims to eliminate subjective biases from investment decisions.

Not the last one: “We are planning to launch other quant funds with different risk parameters,” Alowedi told the business news service on Tuesday.

On a roll: The Saudi Awwal Bank investment arm closed a USD 100 mn VC fund last week in partnership with Saudi Technology Ventures (STV). The fund offers shariah-compliant non-dilutive capital to tech startups in the Kingdom.

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5

IPO WATCH

Real Estate Marketing Company Hawyia prices Nomu IPO at SAR 13 apiece

Real estate marketing company Hawyia Auctions priced its Nomu IPO at SAR 13 a pop, according to the prospectus (pdf). If fully subscribed, the transaction could see the selling shareholders rake in SAR 31.2 mn in proceeds, and it would give the company a market cap of SAR 260 mn at listing. Hawyia is taking a 12% stake (good for 2.4 mn shares) to market in a secondary offering, after lining up Capital Market Authority approval back in March.

What’s next? The subscription period will run between 26-29 May, during which qualified investors can each book a minimum of 10 shares and a maximum of c. 1 mn. The final allocation of shares is slated for Monday, 2 June.

Shareholders retain majority shares: The company’s three selling shareholders will retain a combined 88% stake in Hawyia post-IPO. Their shares will remain on lockup for 12 months from the first day of trading. Some SAR 3.6 mn will be deducted from the total proceeds to cover transaction-related costs, while the selling shareholders will rake in the balance.

A snapshot of its latest earnings: Hawyia’s bottom line rose more than 3x y-o-y to SAR 37.1 mn in 2023, while its top line jumped 87.6% to SAR 81.6 mn.

ADVISORS- Estidamah Capital is the financial advisor on the transaction, while Derayah is the lead manager. Alzoman, Alfahad & Alhajjaj is counsel. Receiving agents include Alinma Capital. Al Rajhi Capital, SNB Capital, BSF Capital, and Riyad Capital, among others.

Other Nomu listings to watch out for in 2025:

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6

INFRASTRUCTURE

Awarded projects value reaches SAR 13.8 bn in April

The Kingdom awarded a total of 13 projects in April 2025, with a value of SAR 13.8 bn, up from SAR 5.4 bn in March, the Saudi Contractors Authority said in its Contracting Sector Overview report (pdf).

Power and water sector contracts accounted for the highest value, with SAR 10.9 bn (79% of the total projects’ value) allocated across three projects. Industrial contracts followed with SAR 1.9 bn across three projects, while building and construction contracts accounted for SAR 697.5 mn across five projects.

Top contractors: The Saudi Electricity Company topped the list of project owners, with contracts valued at SAR 7.1 bn, including the Ar Rayis Power Plant Phase 1 in Madinah. The Saudi Power Procurement Company and the Energy Ministry jointly followed, awarding a SAR 1.9 bn contract for the Al Sadawi IPP in the Eastern Province.

ALSO- Alat and Lenovo were also major project owners, with contracts valued at SAR 937.5 mn in total, including phases 1 & 2 for the Lenovo factory in Riyadh. A key construction project for the Royal Diriyah Opera House was also awarded by the Diriyah Gate Development Authority and the Public Investment Fund (PIF).

Regional breakdown: Madinah led in total project value with SAR 6.8 bn, followed by the Eastern Province with SAR 4.2 bn.

What’s next? Ten new projects are expected to be awarded in May 2025, 60% of which are in the building and construction and oil and gas sectors. More than half of these projects will be concentrated in the Riyadh and Eastern provinces. Big-ticket issuers are expected to include the PIF, the Oil Park Development Company, Saudi Aramco, Neom, and Rua Al Madinah Holding.

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7

CAPITAL MARKETS

Tadawul’s market cap grew over 450% in the last decade

Tadawul’s market cap grew 463% to USD 2.7 tn in 2024, up from USD 483 bn in 2014, making it the largest emerging equity market outside Asia, according to a recent report by S&P Global Ratings. The main market was home to 91 IPOs over the same period, bringing the total number of listed issuers to 247 by the end of last year, compared to 169 in 2014.

Why it matters: S&P predicts that the total debt expected to be raised by the government won’t be sufficient to cover the financing gap, making the case for a stronger, more liquid capital market that could “enable companies and financial institutions to allocate more capital toward investments while managing leverage.” Funding needs of giga and mega projects part of Vision 2030 are estimated to cost more than USD 1 tn.

GREs hold the key: Tadawul remains heavily dominated by the public sector despite a flurry ofIPOs, with government-related entities (GREs) accounting for around USD 44 bn of the USD 65 bn raised through listings over the past 10 years. GREs still control much of Tadawul's total capitalization (64% as of April 2025) and 13.8% of the free float — yet contribute little to daily turnover.

MEANWHILE- Domestic mutual funds and institutional discretionary portfolio managers held 3.8% of the total cap, or 7.3% of the free float.

AND- We’re gonna need a bigger (foreign) boat: Foreign participation remains modest, with international investors accounting for just 11% of the free float, or 4.2% of total market value by the end of last year. This is much lower than the 54% held by foreign investors in EM peer Brazilian Stock Exchange’s market cap, the 36% in Borsa Istanbul, and a 21% in the Dubai Financial Market, the global rating agency said.

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8

EARNINGS WATCH

Zain KSA, Marafiq’s bottom lines rise in 1Q

ZAIN KSA-

Mobile Telecommunication Company Saudi Arabia (Zain KSA) saw its net income rise 38.8% y-o-y to SAR 93 mn in 1Q 2025, according to a disclosure to Tadawul. The figure came below Bloomberg’s analysts expectations of SAR 128.3 mn for the quarter.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

MEANWHILE- Revenue grew 6.1% y-o-y to SAR 2.7 bn during the quarter, driven by growth in the consumer segment, particularly from 5G services, and contributions from subsidiary Tamam.

MARAFIQ-

The Power and Water Utility Company for Jubail and Yanbu (Marafiq) reported a 72.6% y-o-y surge in net income, reaching SAR 117.9 mn, it said in an earnings release. This growth was primarily driven by a 102.1% rise in operating income from success fees on the Al Haer sewage treatment plant, and lower finance and zakat expenses. However, these gains were partially offset by a 20.4% increase in fuel costs and a 15.8% rise in utility purchases for its subsidiary Tawreed.

MEANWHILE- Revenue grew 6.6% y-o-y to SAR 1.7 bn, supported by higher sales volumes across all key sectors.

!_SUBHED_! ALDAWAA MEDICAL SERVICES-

Aldawaa Medical Services posted a 10.3% y-o-y rise in net income to SAR 105.2 mn in 1Q 2025, driven by stronger operating income and improved cost control, it said in a disclosure to Tadawul. Similarly, revenue increased 8.9% y-o-y to SAR 1.7 bn driven by stronger sales across all channels and seasonal campaigns.

SADAFCO-

Saudia Dairy and Foodstuff (Sadafco) reported a net income of SAR 126.1 mn in 1Q 2025, a marginal decrease of 0.1% y-o-y, according to a disclosure to Tadawul. Nevertheless, revenue rose 8.5% y-o-y to SAR 778.6 mn during the quarter, driven by a 60% rise in sales, as well as maintaining the company’s market share in milk, tomato paste, and ice cream categories.

SAVOLA-

Savola Group’s net income declined 45.8% y-o-y to SAR 189.2 mn in 1Q 2025, primarily due to the absence of profit share from its distributed investment in Almarai, it said in a disclosure to Tadawul. Revenue increased 6.3% y-o-y to SAR 7.6 bn in the same period, driven by a 4% rise in retail revenues from store expansions and Panda Retail’s CXR program, alongside higher revenues in the Food Processing segment.

SHAKER GROUP-

Home appliances importer and distributor Al Hassan Ghazi Ibrahim Shaker Co. (Shaker Group) saw its net income drop 15.6% y-o-y to SAR 27.2 mn in 1Q 2025, which was partially offset by lower finance costs, according to an earnings release (pdf). Revenue fell 3.1% y-o-y to SAR 400.4 mn, driven by a decline in home appliances sales, which was partially offset by a rise in HVAC solutions sales.

RIYADH CABLES-

RiyadhCables Group saw its net income jump 51.6% y-o-y to SAR 256.2 mn in 1Q 2025, it said in a disclosure to Tadawul. Revenue climbed 22.5% y-o-y during the same period to SAR 2.5 bn, mainly due to higher sales.

NAHDI MEDICAL-

Nahdi Medical posted a 9.6% y-o-y rise in net income to SAR 255.2 mn in 1Q 2025, it said in an earnings release (pdf). The growth was supported by a 16.6% increase in operating income, despite increased operating expenses from strategic investments and higher non-operating expenses.

MEANWHILE- Revenue jumped 16.7% y-o-y to SAR 2.6 bn in the same period, steered by robust performance across all segments, including a 15.2% rise in the retail business, strong growth in healthcare and UAE businesses, and favorable Ramadan season results.

LUMI-

Lumi Rental saw its net income rise 18.9% y-o-y to SAR 53.1 mn in 1Q 2025, as operating performance improved and finance costs decreased, it said in an earnings release (pdf). Revenue grew 7.2% y-o-y to SAR 411.5 mn over the same period on strong lease and rental divisions.

WATANIYA INS.-

Wataniya Ins. saw its bottom line shed 77.1% y-o-y to SAR 6.2 mn in 1Q 2025, primarily due to a 76.5% decline in net ins. service results, it said in a disclosure to Tadawul. Nevertheless, ins. revenues rose 10.3% y-o-y to SAR 452.2 mn during the quarter on the back of stronger premiums from business growth in the previous year.

GULF INS-

Gulf Ins. Group reported a net income of SAR 27.1 mn in 1Q 2025, recovering from a net loss of SAR 20.2 mn in the same quarter last year, according to a disclosure to Tadawul. Meanwhile, ins. revenues rose 1.4% y-o-y to SAR 367.6 mn. The turnaround was primarily driven by a rise in net ins. service results, particularly in the property and casualty segment.

LEEJAM SPORTS-

Leejam Sports reported a 24.5% y-o-y drop in net income to SAR 71 mn in 1Q 2025, weighed down by added costs from 30 new fitness centers, it said in a disclosure to Tadawul. Revenue rose 8.5% y-o-y to SAR 369 mn during the quarter, supported by 10% growth in subscriptions and membership, though tempered by Ramadan falling entirely within the quarter, a shift to short-term subscriptions, and greater Xpress center contributions.

ARABIAN CEMENT-

ArabianCement’s net income fell 56.5% y-o-y to SAR 23.6 mn in 1Q 2025 on the back of lower average selling prices and higher tax expenses tied to prior years’ differences at a subsidiary, it said in a disclosure to Tadawul. However, revenue gained 4.6% y-o-y to SAR 238.1 mn during the same period, driven by increased sales volume.

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9

KUDOS

Saudi b'naires’ wealth shifts as stock prices fluctuate

Three Saudi b’naires saw their wealth increase over the two months from 7 March to 6 May, according to Forbes Middle East estimates. The period saw shifts in fortunes driven primarily by stock market performance.

Top Gainer: Sulaiman Al Habib, founder and chairman of Dr. Sulaiman Al Habib Medical Services Group (HMG), posted the largest increase, with his net worth rising by USD 200 mn to USD 11.1 bn, driven by a 2% uptick in HMG's share price. HMG, which operates in Saudi Arabia, the UAE, and Bahrain, reported a 1.3% y-o-y growth in net income to USD 154.6 mn in 1Q 2025.

Closely behind: Prince Alwaleed Bin Talal Alsaud, the richest Saudi and Arab b'naire, added USD 100 mn to his wealth to reach USD 16.6 bn, supported by a 0.5% rise in Kingdom Holding’s share price. Yousuf Mohammad Jamjoom, founder and board member of Jamjoom Pharmaceuticals Factory, also gained USD 100 mn, bringing his net worth to USD 1.3 bn, following a 9.4% jump in his company’s share price.

Fortunes fall for other Saudi b’naires: Emad Al Muhaidib (net worth USD 3.5 bn), Sulaiman Al Muhaidib (USD 3.3 bn), Essam Al Muhaidib (USD 3.3 bn), and Mohammad Abunayyan (USD 2.9 bn) each saw their wealth shrink by USD 300 mn. Abdullah bin Sulaiman Al Rajhi’s net worth fell by USD 200 mn to USD 2.3 bn. Abdullah Al Othaim (USD 2.4 bn), Waleed bin Ibrahim Al Ibrahim (USD 1.3 bn), and Khalid Abdul Rahman Saleh Al Rajhi (USD 1.1 bn) each lost USD 100 mn.

Dropped off the list: Hamad Ali Al Sagri, Ammar Soliman Fakeeh, and Mazen Soliman Fakeeh dropped off the real-time b'naire rankings.

ICYMI- In 2025, Saudi Arabia returned to Forbes’ World’s B’naires List after a seven-year absence, with 15 b’naires making the cut. 14 of these were newcomers, while Prince Alwaleed Bin Talal Alsaud was the sole returnee, topping both the Saudi and Arab rankings with a net worth of USD 16.5 bn as of 7 March.

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10

ALSO ON OUR RADAR

The Kingdom’s first public e-buses are online in Tabuk

TRANSPORT-

The Kingdom’s first electric public bus network came online in Tabuk on Tuesday, reports the Saudi Gazette. A total of 30 e-buses under the command of 90 Saudi drivers will be connecting 106 stations across a five-route, 136 km public transportation network under the administration of the Saudi Public Transport Company (Saptco).

We knew this was coming: Saptco signed a SAR 84 mn, five-year contract with the Tabuk Municipality last August to operate and deliver e-buses to the public bus transport network in Tabuk City.

CINEMA-

MBS Group to operate AlUla Studios: Film AlUla signed an exclusive agreement with TheMBS Group to manage and operate AlUla Studios, it said in a post on X. The California-based film studio management company will oversee operations and leasing activities through its new MBS MENA unit, Variety reports.

About MBS Group: MBS Group operates a global network of some more than 120 locations across eight countries. The studio operator has supported house names like Disney, Sony, Paramount, and Netflix in productions like the Avatar sequels, 1917, Bohemian Rhapsody, and The Devil Wears Prada, among others.

REAL ESTATE-

La Perle Fund acquires Jeddah property for SAR 60 mn: La Perle Real Estate Fund — in which First Avenue for Real Estate Development holds a 40% stake — acquired a 5.1k sqm property on Sari Street in Jeddah’s Al Shatea District for SAR 60 mn, according to a disclosure to Tadawul. The site will be developed into a mixed-use project featuring commercial, residential, and hospitality spaces.

TRADE-

The Federation of Saudi Chambers established the Saudi-Dutch Business Council, with Abdulrahman Al Mufarreh as Chairman, aiming to boost trade and investment ties between the Kingdom and the Netherlands, state news agency SPA reports.

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11

PLANET FINANCE

Fed holds rates steady as tariff risks mount

The US Federal Reserve held interest rates steady for the third time running, keeping its benchmark federal funds rate at 4.25%-4.50% as officials flagged rising risks of higher inflation and unemployment. “Uncertainty about the economic outlook has increased further. The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen,” the Fed’s Federal Open Market Committee (FOMC) wrote in its statement.

No rush to act amid murky outlook: Fed Chair Jerome Powell struck a cautious tone in his post-meeting press conference, saying the Fed is “well positioned to respond in a timely way to potential economic developments.” Powell added, “we think we’re in the right place to wait and see how things evolve. We don’t feel like we need to be in a hurry.” On tariffs, he admitted that trade policy remains a wildcard. “I don’t think we can say which way this will shake out.” He warned that if Trump’s “large increases in tariffs” are sustained, they could “generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment.”

Jobs data strong, but inflation still hot: The labor market remained resilient in April, with employers adding 177k jobs and the unemployment rate holding at 4.2%. Meanwhile, the Fed’s preferred inflation gauge — the PCE index — rose 2.3% y-o-y in March, surpassing market expectations.

Markets reax: Stocks rose following the Fed’s announcement — the S&P 500 rose 0.4%, the Nasdaq was up 0.4%, and the Dow Jones rose 0.7%. Meanwhile, the yield on the 10-year US Treasury note fell 3 bps to 4.27%.

Policy on pause, for now: “The Fed remains in a holding pattern as it waits for uncertainty to clear,” said Goldman Sachs Asset Management’s Ashish Shah. “The onus is on the labor market to weaken sufficiently to bring a resumption of its easing cycle.”

The story got a lot of ink on international press: Bloomberg | Reuters | FT | CNBC | The Washington Post | New York Times.

MARKETS THIS MORNING-

Asian markets are in the green this morning. Japan’s Nikkei is up 0.4%, the Shanghai Composite is looking at gains of 0.3%, the Hand Seng is up 0.4%, and Korea’s Kospi is up a modest 0.1%.

TASI

11,399

-0.3% (YTD: -5.3%)

MSCI Tadawul 30

1,456

-0.1% (YTD: -3.6%)

NomuC

27,778

-0.6% (YTD: -11.8%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

5.0% repo

4.5% reverse repo

EGX30

31,840

-1.4% (YTD: +7.1%)

ADX

9,610

-0.1% (YTD: +2.0%)

DFM

5,338

-0.3% (YTD: +3.5%)

S&P 500

5,631

+0.4% (YTD: -4.5%)

FTSE 100

8,559

-0.4% (YTD: +4.7%)

Euro Stoxx 50

5,230

-0.6% (YTD: +7.7%)

Brent crude

USD 61.41

-1.2%

Natural gas (Nymex)

USD 3.60

+0.1%

Gold

USD 3,385.18

-1.9%

BTC

USD 96,716.00

+2.3% (YTD: 3.6%)

Sukuk/bond market index

911

-0.1% (YTD: +1.0%)

S&P MENA Bond & Sukuk

143.3

-0.3% (YTD: +2.4%)

VIX (Fear gauge)

24.17

-2.4% (YTD: +39.3%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.3% yesterday on turnover of SAR 4.8 bn. The index is down 5.3% YTD.

In the green: Nahdi (+7.3%), Chemical (+4.9%) and SSP (+4.2%).

In the red: Leejam Sports (-10.0%), Zain KSA (-8.3%) and Wataniya (-7.8%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.6% yesterday on turnover of SAR 20.9 mn. The index is down 11.8% YTD.

In the green: FADECO (+9.4%), Alashghal Almoysra (+5.1%) and Taqat (+4.9%).

In the red: Future Care (-11.5%), Enma Alrawabi (-9.4%) and Knowledge Tower (-9.1%).

CORPORATE ACTIONS-

Arabian Internet and Communications Services’ (solutions) shareholders greenlit a SAR 1.19 bn dividend payout for FY 2024 at SAR 10 apiece, it said in a disclosure to Tadawul. The dividends will be distributed starting on 27 May.

Saudi Steel Pipe’s BoD recommended a SAR 199.6 mn dividend for FY 2024 at SAR 3.95 per share, with SAR 50.5 mn in regular dividends at SAR 1 per share and SAR 149.1 mn in extraordinary dividends at SAR 2.95 per share, according to a disclosure to Tadawul. The distribution date has yet to be determined.

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CALENDAR

MAY

Second week of May: World Intellectual Property Organization (WIPO) Global Awards 2025 announces finalists.

4-8 May (Sunday-Thursday): Adeer Real Estate Nomu IPO offering period.

9 May (Friday): PFL Mena Season 2 Kick-off.

11-13 May (Sunday-Tuesday): Future Hospitality Summit, Mandarin Oriental Al Faisaliah, Riyadh.

12-14 May (Monday-Wednesday): 2025 Saudi Giga projects Summit, Riyadh.

12-14 May (Monday-Wednesday): Saudi Food Show 2025, Riyadh Front Exhibition and Conference Centre, Riyadh.

12-15 May (Monday-Thursday): Riyadh International Industry Week, Riyadh International Convention & Exhibition Center.

26-29 May (Monday-Thursday): Hawyia Auctions Nomu IPO offering period.

23 May (Friday): Guns N’ Roses Show, Riyadh.

29 May (Thursday): 2024-2025 academic year ends.

JUNE

4-9 June (Wednesday-Monday): Hajj.

6-10 June (Friday-Tuesday): Eid Al Adha.

17-18 June (Tuesday-Wednesday): US Federal Reserve Open Market Committee meeting and Summary of Economic Projections.

24-25 June (Tuesday-Wednesday): Tech-ecO-System Summit (ToSS), Riyadh.

30 June (Monday): Cancellation of Fines and Exemption of Financial Penalties Initiative by the Zakat, Tax and Customs Authority (Zatca) deadline.

JULY

July (Second week): World Intellectual Property Organization (WIPO) Global Awards 2025 awards ceremony, Geneva.

7 July-24 August (Monday-Sunday): Esports World Cup, Riyadh.

29-30 July (Tuesday-Wednesday): US Federal Reserve Open Market Committee meeting.

31 July (Thursday): Deadline for companies with SAR 2.5 mn or more in 2022/2023 revenues to integrate e-invoicing solutions with Fatoora.

AUGUST

7 July-24 August (Monday-Sunday): Esports World Cup, Riyadh.

5-17 August (Tuesday-Sunday): 2025 Fiba Asia Cup, Jeddah.

SEPTEMBER

15-17 September (Monday-Wednesday): Money 20/20 Middle East, Riyadh.

17-18 September (Wednesday-Thursday): US Federal Reserve Open Market Committee meeting and Summary of Economic Projections.

23 September (Tuesday): Saudi National Day.

OCTOBER

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

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

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

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

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

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

NOVEMBER

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

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

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

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

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

DECEMBER

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

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

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

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

2026

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.

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

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

2027

The World Water Forum takes place in Riyadh.

The Ocean Race finishes in Amaala on the Red Sea.

Riyadh-Kudmi transmission line to be completed.

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