Saudi Arabia dominates GCC bond and sukuk issuances in 2024 -Markaz

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Starbucks flagship store in Diriyah square? + PwC is trying to smooth over tensions

Good morning. The Ramadan slowdown went into full effect this morning as we enter the fourth day of the holy month. While we wait for Aramco’s earnings announcement, we delve into the latest Markaz data on GCC issuances in 2024 (spoiler: Saudi Arabia dominates). We also unpack Tadawul’s performance numbers in February, and a report from Deloitte on our growing real estate sector. Let’s dive in.

When do we eat? Maghrib is at 5:57pm today in Riyadh. You’ll have until fajr prayers at 4:54am tomorrow to finish your sohour.

⚠️WEATHER- A chance of medium to heavy thunderstorms across most areas of the Kingdom until Thursday, including Madinah, Makkah, Jeddah, Al Taif, and Riyadh.

Riyadh: 21°C daytime / 8°C overnight
Makkah: 36°C daytime / 20°C overnight
Madinah: 30°C daytime / 10°C overnight

HAPPENING TODAY-

Aramco is set to release its 2024 financial results today, according to its website. You can tune into the audio webcast of its earnings call here. Analysts expect Aramco's income to fall 8% y-o-y, along with an 11% y-o-y drop in revenues, with Aramco expected to carry on its “clear downward trend” as a result of current oil prices.

HAPPENING TOMORROW-

HKC Ceramics to debut on Nomu tomorrow: Shares of Local marble and porcelain supplier HKC Ceramics (Hedab Alkhaleej Trading Company) will begin trading on the Nomu parallel market tomorrow, according to a Tadawul statement. The company’s shares will be allowed to fluctuate within a 30% band on the first three days of trading, after which price fluctuations will be capped at 10% as circuit breakers take effect.

REFRESHER- HKC took a 10.67% stake to market in a primary offering limited to qualified institutional investors, in a bid to finance its expansion plans and reduce its existing liabilities. The company priced its IPO at SAR 52 per share — the top of the range it was guiding on — after its Nomu offering closed 1.7x covered. The final price saw the company raise some SAR 41.6 mn in IPO proceeds, giving it a market cap of SAR 390 mn at listing.

The five-day retail bookbuilding period for Umm Al Qura Development and Construction’s Tadawul IPO will kick off tomorrow, 5 March to run until next Sunday, 9 March. Retail investors can subscribe to up to 2.5 mn shares with a minimum of 10 shares each. The final decision is set for Thursday, 13 March, with 13.08 mn shares reserved for retail investors.

PSAs-

Foreign trucks must secure the required local permits to transport goods within Saudi Arabia, the Transport General Authority said in a post on X. Failing to adhere to this will subject companies or individuals contracting the trucks to fines ranging from SAR 10k to SAR 5 mn. Additional penalties include temporary truck seizure, deportation of non-Saudi drivers operating without a license, and truck confiscation for repeat offenses. The decision came after last week’s cabinet approval.

WATCH THIS SPACE-

Diriyah, Starbucks, and Alshaya in talks for flagship store: PIF’s Diriyah Company, Kuwait-born Alshaya Group, and Starbucks’ CEOs met to discuss a potential retail partnership in Diriyah square, including plans for a flagship Starbucks store within the 566k sqm open-air mixed-use development, according to a post on LinkedIn.

ICYMI- A potential IPO? Diriyah’s CEO Jerry Inzerillo hinted at a potential future public listing for Diriyah, citing strong investor interest and solid returns. This came after Diriyah’s USD 64 bn development saw its early residential sales reach SAR 13-14 bn in deposits, largely driven by luxury property sales.

PwC is taking steps to smooth over tensions with Saudi Arabia and the PIF, with the consulting firm informing employees in an internal memo that the situation pertains to a “client” matter rather than a regulatory issue, Reuters reports citing two sources it said are in the know. The suspension applies only to engagements between PwC and the PIF’s holding company, while portfolio companies can still work with the firm, another source added.

IN CONTEXT- PwC was reportedly barred from securing advisory and consulting contracts from the fund and its subsidiaries until February 2026, two years after setting up its regional headquarters in Saudi Arabia, where it employs over 2k people. The Kingdom's consulting market, the region’s largest, was valued at USD 3.2 bn in 2023, up 18.2% from 2022.

Local restaurant manager and PoS solutions provider Foodics plans to invest USD 100 mn in restaurant tech, focusing on fintech and AI solutions for restaurants, CEO Ahmad AlZaini told Al Arabiya. The company holds over 30% of the Saudi market in restaurant tech, serving a sector that grows 5% annually.

ICYMI- Foodics fully acquired UK-based online ordering solutions provider Solo Venture and invested in three startups last month.

Huajin Aramco project nears completion: The Huajin Aramco Petrochemical Company’s USD 11.5 mn petrochemical project in China’s Panjin is 60% complete, with mechanical work set to finish by September, Al Arabiya reports. The company is a joint venture between Aramco (which holds a 30% stake), NORINCO Group (51%), and Panjin Xincheng Industrial Group (19%). The project will produce 15 mn tons of refined oil, 1.65 mn tons of ethylene, and 2 mn tons of paraxylene each year once operational.

DATA POINTS-

Flagship carrier Saudia arrived on time for 86% and hit an 88% on-time departure rate in January, the General Authority of Civil Aviation (Gaca) said on X. Budget airline Flyadeal came in second with an 80% on-time arrival rate and 83% on-time departure rate. Flynas followed with a 71% on-time arrival rate and 75% on-time departure rate during the same period.

Over to airports: Among international airports handling more than 15 mn passengers per year, King Khaled International Airport achieved an 86% on-time departure rate. For international airports handling between six to 15 mn passengers per year, King Fahd International Airport had an 81% on-time departure rate, while international airports handling two to five mn passengers per year saw King Abdullah bin Abdulaziz International Airport in Jizan lead with a 91% on-time departure rate. For international airports handling less than two mn passengers per year, Neom Bay International Airport was the most punctual at 97%, while domestic airports saw Sharurah Airport record a 97% punctuality rate for departures during the period.

Saudi Arabia’s M3 money supply grew 9% y-o-y in January to reach SAR 2.97 tn, according to the January 2024 Statistical Bulletin (pdf) from SAMA. The largest contributors to the money supply were demand deposits (49%), time and savings deposits (33%), other quasi-cash deposits (10%), and banknotes in circulation outside banks (8%). Total liabilities were around SAR 5.2 tn.

SOUND SMART- M3 is the broadest measure of all the money in a country. It includes cash, current accounts, and other money that can be quickly mobilized (what econ-nerds call M2) as well as time deposits, money market funds, and the like.

On the investment front: Saudi banks’ cumulative investments in government bonds rose for the seventh consecutive month, hitting their peak at SAR 599.01 bn in January 2025, up 10.4% y-o-y and 1.2% m-o-m. These investments made up 73.7% of total public sector liabilities, which grew 16.4% y-o-y to SAR 813.02 bn. Bank credit to public institutions also increased by 36.9% to SAR 214.01 bn over the same period.

OIL WATCH-

Saudi Arabia and Algeria cut LPG prices for March: Saudi Aramco and Algeria’s Sonatrach lowered the official selling prices for liquefied petroleum gas for March by 0.9%-3.2% compared to February on the back of lower oil prices and weaker global demand, traders told Reuters. Aramco's March price for propane was cut by USD 615 per metric ton, while butane prices were down to USD 605 per metric ton.

SPORTS-

Al Qadisiyah overtook Al Nassr to claim the third spot in the Saudi Pro League (SPL), after the Khobar-based team saw off Al Riyadh 1-0 while Cristiano Ronaldo’s men fell to a 2-1 defeat away from home at Al Orobah. Meanwhile, an Ivan Toney hattrick dispatched Al Hilal in a five-goal thriller at the King Fahd International Stadium, depriving the blues from closing the gap at the top with Al Ittihad — which drew at home 1-1 with Al Akhdoud.

Where things currently stand: Al Ittihad now sits at the top of the league with a six-point cushion between them and Al Hilal in second, while Al Qadisiyah is now three points clear of Al Nassr in third — which are only ahead of Al Ahli in 5th on goal difference. The gap between fifth and first spot currently stands at just 10 points with only 11 matchdays to go.

ALSO- Al Hilal’s Joao Cancelo will be out of commission for two months after sustaining a hamstring injury, the club said in a post on X. Cancelo came to the SPL in the summer following a GBP 21.2 mn transfer from Manchester City. Reuters also had the story.

SPEAKING OF AL HILAL- Liverpool’s Dominik Szoboszlai is being linked with a move to the club, which is reportedly preparing a EUR 120 mn bid for the 24-year-old Hungarian midfielder, according to Fichajes. The unconfirmed reports on Szoboszlai’s potential move come while his Liverpool teammate Mohamed Salah is also being pursued by Saudi clubs as his Liverpool contract is set to expire this year.

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THE BIG STORY ABROAD-

Leaving no room for talks, Trump officially slapped 25% tariffs on Canada and Mexico starting today. The levies — initially postponed after negotiations with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau — are now officially moving forward as part of Trump’s push to pressure both countries on border security and fentanyl trafficking. Trump is also using the move to pressure Canada and Mexico to shift their manufacturing to the US, saying they’re “going to have a tariff” unless they “build their car plants, frankly, and other things in the United States, in which case they have no tariffs.” Canadian Foreign Minister Melanie Joly warned that Ottawa is “ready” to hit back with retaliatory measures.

That’s not all —Trump also signed off on doubling tariffs on Chinese imports to 20%. The White House justified the move by accusing Beijing of failing to curb illicit fentanyl shipments to the US. The directive goes into force today.

Needless to say, markets recoiled —The S&P 500 slid around 1.8%, marking its worst day since December and wiping out its year to date gains. The Dow Jones Industrial Average tumbled 1.5% and the Nasdaq fell 2.6%, as fears over US economic fallout materialized. Tech stocks also slid, with Nvidia tumbling over 8%. We have more in Planet Finance, below. (Financial Times | AP | BBC | Bloomberg | CNBC | Reuters)

ALSO- Trump paused all military aid to Ukraine as part of his efforts to push Ukrainian President Volodymyr Zelenskyy to take part in peace talks with Russia. Trump’s decision comes days after a heated discussion between him and Zelenskyy. (Bloomberg | AP)

IN OTHER BUSINESS NEWS- A Citigroup staffer nearly sent USD 6 bn to a customer’s account after dropping the account number into the USD field by mistake — a typo with serious extra zeros. The error, caught the next business day, was reported to regulators. (Bloomberg)

Saudi Arabia dominates GCC bond and sukuk issuances in 2024 -Markaz

Saudi Arabia raised USD 79.5 bn from 79 primary bond and sukuk issuances in 2024, a 51.2% y-o-y increase from USD 52.5 bn in 2023, according to Kuwait Financial Center’s (Markaz) fixed income research report (pdf). The Kingdom accounted for 53.7% of the GCC’s total primary issuances volume at USD 147.9 bn last year.

Topping the charts: The top 10 corporate bond and sukuk issuances by value came from Saudi entities, with Aramco’s USD 2 bn issuance being the largest single corporate offering in 2024. The largest sovereign issuance of the year was Saudi Arabia’s USD 12.6 bn issuance. The Kingdom also led GCC sukuk issuances with USD 49.7 bn in total volume, a 72% share, while also leading conventional issuances with USD 29.8 bn (37.7%).

ALSO- SAR-denominated issuances raised a total of USD 33.9 bn across 21 GCC issuances — surpassed only by USD-denominated issuances which made up 66.9% of the GCC total, raising USD 99.7 bn from 190 issuances.

THE REGIONAL PICTURE-

The UAE was the second top issuer in 2024, with 109 issuances totaling USD 38.5 bn, up 28.1% y-o-y and accounting for 26% of the market. Qatar came in third, raising USD 15.8 bn from 74 debt instruments, representing 10.7% of the total issuance volume.

MEANWHILE- Kuwait logged in the highest y-o-y growth rate with 356%, followed by Qatar (236%) and Oman (84%). The Kingdom’s 51.2% put it in fourth place.

Corporate issuances still on the top: Sovereign issuances grew to account for 46.1% of total issuances, up from 42.5% in 2023. However, corporate issuances remained dominant, accounting for 53.9% of total issuances and rising 45.5% y-o-y to USD 79.7 bn. Government-related corporate entities raised USD 17.4 bn, up 21.7% y-o-y, Markaz reported.

By sector: Both the government and financial sector issuances saw growth in size and number last year. Government issuances topped the charts at USD 68.2 bn raised across 46 issuances, while the financial sector raked in USD 51.3 bn across 203 issuances. The energy sector followed, raising USD 20.3 bn across 28 issuances.

By tenor: Short-term issuances (under five years) nearly doubled, representing 36.5% of total issuances at USD 54 bn across 215 issuances. Mid-term issuances (5-10 years) followed at 34.7% of total issuances, raising USD 51.3 bn across 43 issuances, while long-term issuances (10–30 years) raked in USD 32.8 bn across 20 issuances. Perpetual issuances also increased to USD 7.8 bn across 17 issuances. A total of USD 93.3 bn in bonds will mature between 2029 and 2034, said the report.

Issuances of USD 1 bn or more dominated the GCC primary market in 2024, accounting for 46.9% of the total issuance volume and raising USD 69.3 bn across 43 issuances in 2024. Issuances between USD 500 mn and USD 1 bn followed, totaling USD 50.5 bn across 59 issuances. Meanwhile, 129 issuances under USD 100 mn raised a combined USD 7.2 bn.

Foreign investors bullish on Tadawul in February, while local and GCC weighed down on the market

Foreign investors were net buyers on Tadawul’s main market last month, while local and GCC investors were net sellers. Foreign investors had net purchases worth over SAR 1.3 bn, according to the exchange’s monthly ownership and trading activity report (pdf). However, the value of shares under foreign ownership in Tadawul dipped 1.5% m-o-m to SAR 430.1 bn — likely due to a decline in the price of some of the stocks held.

Saudi + GCC investors took a bearish turn in February: Local investors were net sellers of Saudi equities last month, with net sales worth nearly SAR 1.95 bn. Saudi investors saw their ownership dipping 2.7% m-o-m to SAR 9.49 bn. GCC investors were also bearish on Tadawul-listed stocks, recording net sales of SAR 124.63 mn — trimming their positions by 0.7% m-o-m to SAR 76.10 bn.

MEANWHILE- Foreigners were net sellers on Tadawul’s parallel market Nomu, with net sales worth SAR 20.50 mn. Local investors were net buyers of Saudi equities on Nomu, with net purchases worth SAR 19.07 mn. GCC investors followed suit with net investment positions SAR 1.43 mn.

Institutional investors continued to dominate the main market, holding 87% of the freefloat, while retail investors led Nomu, controlling 68.30% of the free-float.

HOW TASI PERFORMED IN FEBRUARY-

Tadawul’s benchmark index TASI closed February at 12.1k points, down 2.4% for the month, according to monthly market data. Trading activity remained strong, with 4.8 bn shares exchanged across 8.2 mn transactions, generating a total value of SAR 113.1 bn. TASI’s market capitalization stood at SAR 10 tn.

Top movers: Allied Cooperative Ins. Group’s stock was up 14.4% last month, followed by local stationary Abo Moati (+9.4%) and property developer Alandalus (+8.5%). Meanwhile, Saudi Research and Media Group (SRMG) fell 22.9%, followed by Saudi Ceramics (-20.7%), and pipemaker Amiantit (-19.1%).

Banking and energy stocks saw the highest turnover, with AlRajhi Bank leading the value charts (SAR 7.3 bn), followed by Aramco (SAR 4.5 bn) and SNB (SAR 4.4 bn).

In terms of sector, banks (SAR 21.5 bn), materials (SAR 15.4 bn), and ins. (SAR 8.1 bn) led market activity last month, while real estate, telecom, and energy stocks saw steady inflows over the same period.

Saudi real estate grows as investment heads to SAR 388 bn by 2030

Saudi Arabia’s real estate market is expected to continue growing this year, buoyed by gigaprojects and major developments tied to Saudi Vision 2030, Deloitte said in its KSA Real Estate Predictions report (pdf). Major events that are expected to support growth in the real estate market — as well as “the creation of new urban hubs and tourism destinations” — include the 2034 FIFA World Cup and Expo 2030, Deloitte said, while the continued development of NEOM and Qiddiya, among others, will also drive real estate growth.

THE RESIDENTIAL MARKET-

In 2024, residential transactions in Riyadh, Jeddah, and Dammam rose 50% y-o-y in terms of value to SAR 118 bn, according to the report. Apartment sales rates in Riyadh rose 5% y-o-y, while villa prices rose 12% y-o-y in 2024. In Jeddah and Dammam, apartment sales grew around 1% y-o-y.

Pricing vs. volume in Riyadh: The majority (69%) of apartments sold in Riyadh in the last 12 months were priced at SAR 250k-1 mn, with the bulk of the activity seen in the low- and middle-income segments, according to Deloitte. Rent prices for houses in Riyadh also rose 3% y-o-y on average in 2024, while apartment rents rose 4% y-o-y. “Transaction volume in the south of Riyadh has grown due to the availability of stock, while the transaction value remains highest in the north of Riyadh, reflecting sustained high demand in that area.”

Over in Jeddah, the price per sqm for villas and apartments being sold rose 1% y-o-y, while apartment rents were up 3% y-o-y and house rents rose 2% y-o-y. Dammam saw more or less the same trends, although the price per sqm for apartments was up 3% y-o-y in 2024.

REMEMBER- Apartment prices in Riyadh rose 10.6% y-o-y in 2024, while villa prices increased 6.3%, according to a recent report. Home sales grew 44.2% y-o-y to 63k transactions, with the total value rising over 30% to SAR 75.7 bn. Despite this growth, many mid-market buyers are struggling to afford homes due to the rapid price increases seen in recent years. Appetite for home ownership in Saudi Arabia among nationals fell 11 percentage points to 29% this year compared to 2023, with the highest-earning segment showing the strongest appetite for buying a home this year.

THE OFFICE MARKET-

Office space supply grew 5-6% y-o-y in each of Riyadh, Jeddah, and Dammam in 2024, as new projects and developments came online to meet market demand. The market is seeing growing demand, with “Grade A office-focused sectors, such as financial and business services,” growing 5.3% y-o-y in 2024.

Pricing is on the up: In Riyadh, the average rent price per sqm for Grade A offices rose 17% y-o-y in 4Q 2024 to SAR 2.1k per sqm. Jeddah’s average rent price hit SAR 1.5k per sqm, up 15% y-o-y, while in Dammam the average rent price rose 4% y-o-y to SAR 1k per sqm.

More demand as economy continues to grow: Saudi Arabia’s GDP grew to SAR 3 tn in 2024 and is expected to hit SAR 3.7 tn by 2030. This growth — particularly in Riyadh — “is exerting pressure on older stock in secondary areas. To meet market demands, many upcoming offices are being incorporated into larger master plans that integrate residential, retail, and hospitality elements,” the report says.

RETAIL + HOSPITALITY-

Tourism growth pushes Riyadh hotel rates up — while Jeddah slips: Riyadh’s hospitality sector saw occupancy rates hold steady at 64% in 2024, with the average daily rate (ADR) at hotels climbing to SAR 895. The rising ADR “is largely attributed to the introduction of 5-star hotels across Riyadh, significant developments such as Diriyah Gate, and the demand generated by Riyadh Seasons. Meanwhile, Jeddah’s ADR fell 12.2% y-o-y to SAR 680, with occupancy rates falling one percentage point to 62%.

Major themes + trends in the sector: The growth of the Kingdom’s hospitality sector is pushing a shift towards co-located hotels and branded residences, which “allow operators to diversify revenue streams while meeting the demand for integrated lifestyle experiences,” according to the report. Deloitte also sees “a growing strategy [involving] converting and rebranding aged hospitality, aligning them with modern market demands.”

Retail growth: Total retail sales volumes are expected to hit a compound annual growth rate of 4.4% through 2027, with pop-up stores gaining popularity in major malls. Supply volumes are steadily growing in the country’s retail space, while demand remains “relatively stable,” which together are keeping price increases at bay, Deloitte said.

Marafiq’s net income down 97.1% in 2024 + Saudi German Health, Balady’s full-year earnings

MARAFIQ-

The Power and Water Utility Company for Jubail and Yanbu (Marafiq) saw its net income drop 97.1% y-o-y to SAR 17.15 mn in 2024, according to an earnings release (pdf). The significant drop was attributed to a 44% rise in fuel costs, a SAR 511 mn provision for expected credit loss, and a 26% drop in finance income, reads a disclosure to Tadawul.

MEANWHILE- Revenues grew 7.8% y-o-y to SAR 6.9 bn in the same period, driven by an increase in sales across main segments, as well as a 52.5% reduction in Zakat provisions.

No dividends: The full-service integrated utility provider announced it will not distribute dividends for 2H 2024, citing financial challenges due to exceptional circumstances. The company completed the full acquisition of Jeddah Althaniya Operations and Maintenance Company (JAOMC), after purchasing the remaining 51% stake.

SAUDI GERMAN HEALTH-

Saudi German Health reported a 1,555% y-o-y increase in net income in 2024 to SAR 282 mn, driven by a boost in patient numbers, surgical procedures, and operational efficiency, as well as capital gains from selling a SAR 19.6 mn plot, according to a disclosure to Tadawul. Meanwhile, revenues increased 8.7% y-o-y to SAR 2.9 bn in the same period, pushed by higher patient demand and rising business transactions with the Health Ministry.

ALSO- The company’s board approved the gradual or partial repurchase of a five-year SAR-denominated sukuk carrying a 7.2% fixed annual yield issued back in February, it said in a separate disclosure. The board also approved the development of an SAR 22 mn outpatient clinics complex in Riyadh, according to another disclosure.

BALADY-

Balady Poultry’s net income increased 17% y-o-y to SAR 118.1 mn in 2024, while revenues grew 16.6% y-o-y to SAR 887.1 mn on the back of increased production and an expanded customer base, it said in an earnings release (pdf). Retained earnings almost doubled, rising 93.6% y-o-y to SAR 243 mn and supporting future expansion plans, read the release.

Al Fakhera taps Abdulrahman Saed Al Malah as CEO

Al Fakhera Men’s Tailoring’s board of directors appointed Abdulrahman Saed Al Malah (LinkedIn) as its new CEO, succeeding Abdulaziz Suleiman Al Yahya, who resigned from the position to focus on board and committee operations, according to a disclosure to Tadawul. Al Malah has over 24 years of experience where he assumed various leadership roles in private sector and listed companies.

Can Aramco sustain its hefty payouts? + PIF’s M&A strategy in the spotlight

Aramco’s dividend decision — set to be announced today — is getting ink from Bloomberg, as the company’s distributions have outpaced earnings, flipping it to net debt from a net liquid position of over USD 27 bn a year ago.

More debt might be necessary: The Kingdom may need to issue another USD 5-6 bn in bonds this year to help cover the gap, adding to its nearly USD 15 bn in bond sales so far — making it the biggest borrower in emerging markets, Pinebridge Investments analyst Samsara Wang told the business news outlet.

No special dividends this year? Aramco will only pay its special (performance-linked) dividend if there is enough freecash flow left after covering its base dividend and investments, Bloomberg said. Analysts expect cashflow to fall below the base dividend next year, leaving little room for extra distributions.

REMEMBER- Aramco is expected to maintain its dividend payout at SAR 116.5 bn (USD 31.1 bn) for 4Q 2024, the same as the preceding three quarters, to bring its total dividends for the year to SAR 466 bn (USD 124.3 bn). Aramco’s net income dipped 15.4% y-o-y to SAR 103.4 bn (USD 27.6 bn) in 3Q 2024, while revenues fell 1.8% to SAR 416.6 bn, with the oil giant attributing the drop in its bottom line to falling crude prices and weaker refining margins.

ALSO- The PIF’s recent surge in M&A activity across various sectors was also in the spotlight in a Bloomberg report yesterday. The piece breaks down the fund’s strategy of using capital to attract foreign firms in order to boost local development, with high profile agreements including snapping up a minority stake in Dazn, the USD 4.9 bn acquisition of Scopely, and Alat ’s purchase of 15% of TK Elevator.

Mawani adds two shipping services from CMA CGM in Jeddah and Dammam

LOGISTICS-

Mawani adds new shipping services to Jeddah Islamic Port, King Abdulaziz Port: The Saudi Ports Authority (Mawani) added French shipping giant CMA CGM’s BIGEX 3 shipping services to Dammam’s Jeddah Islamic Port and and BIGEX 4 services to King Abdulaziz Port, it said in a statement. The BIGEX 3 service — which has a total carrying capacity of 2.63k TEUs — will connect Jeddah Islamic Port to the ports of Nhava Sheva and Mundra in India, as well as Oman’s Salalah Port. Meanwhile, the BIGEX 4 service — with a total carrying capacity of 3.5k TEUs — will connect King Abdulaziz Port to the ports of Nhava Sheva and Mundra, in addition to Iraq’s Umm Qasr Port.

REMEMBER- CMA CGM launched the new Red Sea shipping services BIGEX 3 and BIGEX 4 connecting India with the Kingdom and Oman last month. The new routes are the latest of many updates, suggesting a possible rebound in traffic could be on its way.

MANUFACTURING-

The Middle East Paper Manufacturing and Production Company (Mepco) broke ground on the fifth production line at the Paper Machine 5 (PM5) facility, according to a press release. The project — construction of which was originally scheduled to begin by 3Q 2024 — will be developed by Mepco’s subsidiary Al Tadweer Al Akhdar, adding high-quality, low-basis weight paper to Mepco’s products list as well as doubling PM5’s annual production capacity to 875k tons and recycling 1 mn tons.

HOSPITALITY-

A Hilton hotel and residential tower will be coming to Riyadh under a partnership agreement between local developer Osus and Hilton, according to a statement. The projects include Hilton Garden Inn — featuring 250 rooms, meeting spaces, a gym, a pool, and dining options — and Curio Collection Residences — featuring 176 serviced apartments, with valet and concierge solutions, in addition to a gym, a pool, and a cinema. Both projects will be located in the Osus Eye development.

Wall Street faces sell-off amid threat of tariffs

Wall Street faces worst day of 2025 yet: US stocks had their worst day so far this year after US President Donald Trump confirmed that a 25% levy on Mexico and Canada would go into effect today. The S&P 500 fell nearly 2%, while a tech stock sell-off pushed the Nasdaq down 2.2%, with chipmaker Nvidia losing some 10%. The Dow Jones was not spared, losing 1.5%, not helped by data showing that manufacturing activity eased in the country in February.

What happened? Trump confirmed the levies would take place, along with an extra 10% duty on Chinese imports, despite expectations of another potential delay. Trump also confirmed wider “reciprocal” tariffs were coming in April.

BTC also had a bad day: Despite rising the previous day after Trump’s announcement of plans for a BTC strategic reserve, reversing most of the gains it made and falling as much as 9% to around USD 85k.

Analysts and traders are not optimistic: Demand for US stocks is likely not high enough to sustain a rebound, a Goldman Sachs analyst said, while JP Morgan strategists also see US tech stocks continuing to face sell-offs amid uncertain economic growth and tariffs, Bloomberg reports. BCA Research downgraded recommendation for US equities to underweight from neutral, while upgrading European stocks to overweight.

Set to benefit are value-dominated stocks in international markets and tariff-safe emerging market assets. While Wall Street faced a rout, European stocks hit fresh highs yesterday, propped up by a rally in defense stocks after plans were revealed that the EU will be spending hundreds of bns of USD on defense financing for Ukraine.

MARKETS THIS MORNING-

Asian stocks were also impacted by Trump’s tariff announcement, with Japanese stocks falling more than 2%, led by declines in Japanese tech players amid a widening risk-off sentiment as trade war fears grow. South Korea’s Kospi was also down 0.13%, and Hong Kong’s Hang Seng started the day down 1.58%. Meanwhile, mainland China’s CSI 300 index dipped 0.59%.

Over on Wall Street, futures are up slightly as investors brace for the full impact of the implementation of the tariffs.

TASI	12,124	+0.7% (YTD: +0.7%)
MSCI Tadawul 30	1,526	+0.9% (YTD: +1.1%)
NomuC	31,696	+0.4% (YTD: +0.7%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	30,989	+0.4% (YTD: +4.2%)
ADX	9,560	-0.1% (YTD: +1.5%)
DFM	5,328	+0.2% (YTD: +3.3%)
S&P 500	5,896	-1.0% (YTD: +1.1%)
FTSE 100	8,871	+0.7% (YTD: +8.5%)
Euro Stoxx 50	5,541	+1.4% (YTD: +13.2%)
Brent crude	USD 71.57	-1.7%
Natural gas (Nymex)	USD 4.12	+7.5%
Gold	USD 2,901	+1.9%
BTC	USD 86,297	-8.5% (YTD: -7.8%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.7% yesterday on turnover of SAR 6.1 bn. The index is up 0.7% YTD.

In the green: Sisco Holding (+6.8%), Baan (+6.1%) and Al Baha (+5.3%).

In the red: Sal (-7.5%), Acwa Power (-5.6%) and Marafiq (-4.8%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.4% yesterday on turnover of SAR 33.3 mn. The index is up 0.7% YTD.

In the green: Food Gate (+13.6%), Mulkia (+11.1%) and AlJouf Water (+9.9%).

In the red: Balady (-8.0%), Knowledgenet (-5.0%) and Gas (-4.6%).

CORPORATE ACTIONS-

Almasane Alkobra Mining’s (Amak) board greenlit the distribution of SAR 104.5 mn in dividends for 2H 2024 at SAR 1.18 per share, it said in a disclosure to Tadawul. Distribution is set to kick off on Sunday, 23 March, it said in a separate disclosure.

Shareholders of Gulf Union Cooperative Ins. (GUAI) will vote on the company’s 49.73% capital hike on Thursday, 27 March for its planned merger with Gulf General Ins. (GGI), according to a disclosure to Tadawul. The increase would bring GUAI’s total capital to SAR 687.2 mn by issuing some 22.8 mn new shares.

ICYMI- The group has recently lined up approval from the Ins. Authority to move forward with its plans to merge with GGI, after they inked a binding agreement back in December 2024. The agreement will see GGI transfer all of its shares, liabilities, and assets to GUAI.

Lebanon’s Aoun meets Mohammed bin Salman in Riyadh

Lebanese President Joseph Aoun met with Crown Prince Mohammed bin Salman in Riyadh yesterday, marking Aoun’s first official trip abroad since taking office in January and the first time in six years for Lebanon’s president to visit Riyadh, according to a post on X and a report from state news agency SPA. The two leaders discussed their countries’ ties, as well as developments in Lebanon and the region. Aoun noted that his meeting with Crown Prince Mohammed bin Salman on Monday would prepare for a future visit to sign cooperation agreements, Asharq Al Awsat said.

IN CONTEXT- Aoun was expected to request during his meeting with the Crown Prince the reactivation of a USD 3 bn aid package for the Lebanese army — which was halted in 2016 after Beirut failed to condemn attacks on Saudi diplomatic missions in Iran. Earlier in January, a "last-minute push" by the Kingdom was reportedly the deciding factor in Aoun’s pick as Lebanon’s new president. Foreign Minister Faisal Bin Farhan’s visit to Lebanon in January was the first by a Saudi FM in 15 years.

MEANWHILE- Saudi Arabia condemned Israel’s decision to block humanitarian aid access to Gaza, calling it “extortion and collective punishment,” urging the international community to ensure sustained aid delivery according to a post on X.

CALENDAR

MARCH

1-30 March: Ramadan.

5-9 March (Wednesday-Sunday): Retail bookbuilding period for Umm Al Qura for Development and Construction’s Tadawul IPO.

13 March (Thursday): Final allocation of shares for Umm Al Qura for Development and Construction’s Tadawul IPO.

18-19 March (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.

31 March-3 April (Monday-Thursday): Eid Al Fitr (TBC).

31 March (Monday): Deadline for applying to theReal Estate General Authority’s Regulatory Sandbox Program.

31 March (Monday): Deadline for applying to the World Intellectual Property Organization (WIPO) Global Awards 2025

APRIL

7-9 April (Monday-Wednesday): Sports Investment Forum (SIF), Riyadh.

3-20 April (Thursday-Sunday): AFC Asian U17 Cup.

13-14 April (Sunday-Monday): Human Capability Initiative (HCI) Conference, King Abdulaziz International Conference Center, Riyadh.

13-16 April (Sunday-Wednesday): EdgeX HCI, The Ritz Carlton, Riyadh.

14-16 April (Monday-Wednesday): Future Hospitality Summit, Mandarin Oriental Al Faisaliah, Riyadh.

18-20 April (Friday-Sunday): Saudi Arabian Grand Prix, Jeddah,

21-24 April (Monday-Thursday): Saudi Food Exhibition and Conference, Riyadh.

22-23 April (Tuesday-Wednesday): AAM Middle East, Riyadh.

23-25 April (Wednesday-Friday): Construction and Real Estate Development Exhibition, Jazan.

25 April- 4 May (Friday-Sunday): AFC Champions League Elite Finals

28 April- 30 April (Monday-Wednesday): Automechanika Riyadh, Riyadh International Convention and Exhibition Center, Riyadh.

MAY

May: The World Intellectual Property Organization (WIPO) Global Awards 2025 announces its results.

6-7 May (Tuesday-Wednesday): Federal Open Market Committee meeting.

12-15 May (Monday-Thursday): Saudi Smart Manufacturing, Riyadh International Convention & Exhibition Center.

13-14 May (Tuesday-Wednesday): Global EV & Mobility Technology Forum, The Arena, Riyadh.

19-20 May (Monday-Tuesday): Tech-ecO-System Summit (ToSS), Riyadh.

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

31 May-5 June (Saturday-Thursday): Hajj.

JUNE

6-9 June ( Friday-Monday): Eid Al Adha.

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

26 June (Thursday): 2024-2025 academic year ends.

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

JULY

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

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

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

AUGUST

5-17 August (Tuesday-Sunday): Fiba Asian Cup.

SEPTEMBER

15-17 September (Sunday-Tuesday): Money 20/20 Middle East, Riyadh.

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

23 September (Tuesday): Saudi National Day.

OCTOBER

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

NOVEMBER

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

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

27-30 November (Thursday-Sunday): The World Rally Championship (WRC), Jeddah.

DECEMBER

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

4-13 December (Thursday-Saturday): Red Sea International Film Festval, Jeddah.

December: The Fortune Global Forum 2025, Riyadh.

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

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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