Saudi is looking to Asian investors for FDI push

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WHAT WE’RE TRACKING TODAY

THIS MORNING: PIF plans new freight airline to take on rival Gulf airlines

Good morning, friends, and happy almost-THURSDAY. We have a rather busy issue this morning, packed with stories on investments, M&A, construction, and energy. The Kingdom’s push to lure in more FDI and equity investments leads our news well this morning, along with news of shipping outfit Bahri pushing ahead with its fleet modernization plan with a big USD 1 bn agreement that will see it buy nine oil tankers.

⚠️ WEATHER WARNING- Thunderstorms are still in the cards across the country today and tomorrow, the General Directorate of Civil Defense said in a warning on X. Makkah is in for the most severe conditions, including heavy rainfall, flash floods, hail, and sandstorms. Meanwhile, Riyadh, Madinah, Baha, Asir, and Jazan are also forecasted to get varying degrees of rainfall.

PSA-

#1- More properties will be eligible for registration on the Real Estate Registry (RER) system next month in Riyadh and Qassim. Initial applications can be submitted through the Real Estate Registry online portal, which provides a set of services including deed transfers. Registration requires a valid title deed.

In Riyadh: The owners of a select 4.9k properties in Riyadh’s Taiba neighborhood will be able to submit their applications for registration with the RER from Sunday, 1 September until Thursday, 5 December, the General Real Estate Authority said in a statement.

For Qassim residents: Applications will be open for 30.8k properties in 11 neighborhoods in Qassim from Sunday, 29 September until 2 January 2025, the authority said in a separate statement.

#2- The Hajj and Umrah Ministry has launched a direct Umrah program that aims to enable Umrah service providers to serve pilgrims directly, eliminating middlemen, state news agency SPA reported on Monday, without providing further information.

WATCH THIS SPACE-

#1- The PIF is reportedly in early talks with Boeing and Airbus for air freighters as it looks to build a new cargo airline, Bloomberg reported citing people it says are familiar with the matter. The new freight airline would serve flagship carrier Saudia as well as the sovereign wealth fund’s airline startup Riyadh Air as the Kingdom looks to establish itself as a “logistics hub to rival Dubai and Doha,” the business information service says. PIF has also tapped aircraft lessors for the potential acquisition, the sources also said. Reuters also picked up the story.

What we don’t know: Bloomberg’s sources noted that the PIF is reportedly interested in acquiring Boeing 777 and Airbus A350 freighters, but provided no additional details on the size or value of a potential order. The number of aircraft the fund purchases could be affected by the amount in Dubai’s Emirates and Qatar Airways’ fleets, which number at 14 and 28. Saudia’s current cargo operations will also be included in this new venture, the sources said.

It’s part of a big Saudi push into air transport that will see the launch of Riyadh Air as a new national flag carrier that will make Riyadh its home base while current national carrier Saudia relocates to Jeddah’s King Abdulaziz International Airport. PIF-owned Riyadh Air, announced in March 2023, will start operations in 2025 and has a target of operating flights between 100 destinations by 2030. Saudia would shift focus on transporting pilgrims to holy sites, while Riyadh Air will focus on tourists, including international transit passengers. Saudia placed earlier this year a USD 19 bn order with Airbus for 105 narrow-body aircraft in what stands as the largest order made in Saudi aviation history.

REMEMBER- PIF wants to acquire Saudia in whole or in part and aims to take a stake in Saudi-owned budget carrier Flyadeal as part of the transaction.

#2- Saudi’s steel industry is poised for growth in the medium term, driven by the country’s giga-projects, according to a report by Glasgow Research & Consulting. Demand for steel is expected to have a compound annual growth rate of 3.9% from 2023 to 2026.

Localizing the industry + capping our import bill: The Kingdom is looking to meet 99% of domestic steel demand through local manufacturing by 2030, up from 67% in 2019, the report reads.

DATA POINTS-

National carrier Saudia had the fewest complaints among the country’s airlines in July, with 25 complaints per 100k passengers and a perfect 100% on-time resolution rate, according to the General Authority for Civil Aviation. This is the fifth consecutive month that Saudia has had the lowest number of complaints. Flynas followed closely with 27 complaints, while Flyadeal had 34 complaints.

Airports’ performance: Riyadh’s King Khalid International Airport had the lowest complaint rate among major international airports with annual passenger traffic above 6 mn people. The airport logged 0.4 complaints per 100k passengers, for a total of 14 complaints in July. Among airports with less than 6 mn in annual passenger traffic, Hail International fared best, with 1 complaint per 100k passengers (and one complaint throughout the month).

SPORTS-

#1- We’re going to see a very different Al Ettifaq next season: Al Ettifaq — which struggled last season, ending in sixth place in the Saudi Pro League — completed 26 transfers (outgoing and incoming) during the summer transfer window, writes Express. The club secured the signatures of some high-profile European talent, including France’s Moussa Dembele, Seko Fofana (on loan from Al Nassr), former PSG and Liverpool footballer Georginio Wijnaldum, and Demarai Gray, who was most recently at Everton.

#2- FROM THE RUMOR MILL- Al Hilal has drawn up a three-man shortlist including Manchester City defenders Kyle Walker and João Cancelo, along with Bayer Leverkusen defender Jeremie Frimpong, to boost its defense squad, the Guardian reports. The move comes as the club’s current right back Saud Abdulhamid mulls interests from Reims and Roma.

#3- MOVES- Burnley FC winger Johann Berg Gudmundsson is reportedly very close to closing a transaction that would see him join the Saudi Pro League, Belgian sports journalist Sacha Tavolieri said on X. “Icelandic right winger made his medical tests today in order to complete his move to the Saudi Pro League. Told this [agreement is] imminent now.”

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THE BIG STORY ABROAD-

The US is reminiscing about 2008: Former US President Barack Obama took the stage at the Democratic National Convention (DNC) in his hometown of Chicago just a few minutes before we hit “send” on this morning’s issue, as he endorses Democratic nominee Kamala Harris. Some are drawing parallels between Obama’s “hard-fought” presidential election bid in 2008, “with party faithfuls hoping that Harris’ race against Donald Trump will assemble the same broad coalition that could deliver a commanding win.” The story is emblazoned across the front pages everywhere in the international press this morning (Reuters | Bloomberg | Politico | Financial Times | Wall Street Journal | New York Times | Washington Post)

MEANWHILE- US Secretary of State Antony Blinken wrapped up his tour of the Middle East without clearly securing a ceasefire agreement between Hamas and Israel. Blinken, who was in Cairo and Doha yesterday, secured Israeli Prime Minister Benjamin Netanyahu’s agreement to a bridge proposal that would ensure a ceasefire in Gaza, but Hamas has yet to formally accept or reject the terms of the proposal. Ceasefire talks are still scheduled to happen in Egypt this week, although it remains unclear when. (Reuters | Bloomberg)

AND- Morgan Stanley International Chairman Jonathan Bloomer and British tech b’naire Mike Lynch are both missing and presumed to be dead after a yacht hit a storm and sank off the coast of Italy earlier this week. Four others onboard the yacht are also missing, while one — a chef on board the yacht — was found dead, and 15 passengers were rescued. (CNBC | Financial Times)

CIRCLE YOUR CALENDAR-

The five–day Tourism Week organized by Monsha’at will get underway next Sunday, 25 August, at the Enterprise Support Centers in Riyadh, Jeddah, Al Khobar, and Madinah. You can check out the agenda here, and register here.

The EFG Hermes London Conference returns: EFG Hermes will hold its annual conference in London on 9-12 September, giving investors “unique and unparalleled access to leading equities in MENA and key frontier emerging markets.”

The Crown Prince Camel Festival runs until Tuesday, 10 September at the Taif Camel Racing Track, featuring 610 rounds of racing and a purse of SAR 56 mn.

The New Global Sport Conference 2024 is happening on Saturday and Sunday, 24-25August, bringing together top figures from sports, esports, gaming, entertainment, and technology. This year’s theme is the Future of Fandom, highlighting fans’ role in building brand equity and revenue.

The eight-week Esports World Cup runs until Sunday, 25 August Riyadh’s Boulevard City. The world’s top esports clubs are competing for a pool of USD 60 mn — the largest purse in esports.

The two-day Kingdom Business and Luxury Travel Congress will kick off on Wednesday, 25 September, at the Crowne Plaza Riyadh RDC Hotel and Convention.

The three-day Global Logistics Forum will kick off on Saturday, 12 October at Riyadh’s King Abdullah Financial District.

Saudi eyes Asian investors to boost foreign investments + equity markets

Saudi is looking east to unlock FDI + equity investments in the domestic economy: Tadawul is ramping up its efforts to attract equity investments from Asia, focusing on the significant potential of flows from Chinese, Indian, and other Asian investors, Chief Strategy Officer Lee Hodgkinson said on Bloomberg’s Tiger Money (listen, runtime: 38:00). These investments would not only boost exchange liquidity, but also benefit listed companies, he explained. Bloomberg also has a rundown of the podcast episode.

The rationale: Saudi’s prime location, along with favorable time zones and a fresh, no-legacy approach, positions Riyadh as an appealing partner for Chinese and Asian investors, Hodgkinson added. Despite Riyadh’s strong trade and investment ties with the US, “I think the other interesting factor is just the sort of sheer size of investment that can come from Chinese investors, from Indian investors, and from Asian investors,” he explained.

ETFs are at the front and center of Tadawul’s Asian push: ETFs “provide a really good structure” for engaging with Asia-based investors, Hodgkinson noted. “What we’ve done with our colleagues in China is to really begin the process of awakening and marketing the Saudi equity story to Chinese investors via these ETFs.”

IN CONTEXT- The Saudi exchange has nine ETFs with USD 54 mn in assets under management— two are tracking US equities, and the rest is tracking Saudi companies, Hodgkinson said. Two exchange-traded funds (ETFs) tracking Saudi stocks made their debut in Shanghai and Shenzhen last month. The China Southern Asset Management CSOP Saudi Arabia ETF QDII listed in Shenzhen after raising CNY 634 mn (USD 87 mn) ahead of listing, while the Huatai-PineBridge CSOP Saudi Arabia ETF QDII listed in Shanghai after drawing in CNY 590 mn ahead of listing.

The Investment Ministry is also hoping to lure in more money from Asia as the new investment law comes into effect, Assistant Investment Minister Ibrahim Al Mubarak said in an interview with CNBC (watch, runtime: 2:30). Despite being Saud’s largest trade partner, the Kingdom has yet to see “more on the FDI side” from China, Al Mubarak said. While retaining existing investors is a sign of confidence in the economy, the fact that they are the ones injecting the majority of our FDI figure, makes the case for the fresh investment law which looks to attract new foreign investors, he said.

Where things currently stand: FDI in the Kingdom clocked in at some USD 20 bn last year, up 150% from 2016, Al Mubarak noted, adding that studies show that some 60% of new investments are coming from already-existing investors.

Big potential for investors in the local debt + equity capital markets: Saudi Arabia’s debt-to-GDP ratio is among the lowest in the G20 and debt capital markets are “underserved,” presenting valuable prospects for private sector players in the financial sector, Al Mubarak explained. He also went on to highlight that Saudi’s equity capital market represents 78% of the region’s by volume and is the ninth globally.

Saudi National Housing offers USD 200 bn worth of infrastructure and housing projects to Egyptian firms

Egyptian construction companies are about to have a lot of business here: The National H ousing Company (NHC) is set to launch a limited tender for Egyptian construction companies to bid on USD 200 bn worth of housing and infrastructure projects in the kingdom, a source with knowledge of the matter told EnterpriseAM Egypt. The NHC met with 16 local companies and the Egyptian Housing Ministry earlier this week to present the initiative, which includes infrastructure projects in Makkah, Tabuk, and Jazan.

Who’s in the running? Leading Egyptian construction players, including Orascom Construction, Hassan Allam Construction, Arab Contractors, Petrojet, Nasr General Contracting, and Alshams for Contracting participated in the talks. The meeting reportedly touched on the companies’ experience implementing large infrastructure projects and their ability to follow through on a contract.

There’s still a few hurdles to be crossed before contracts can be inked: The Central Bank of Egypt is yet to give banks the greenlight to issue letters of guarantee in USD or SAR, a crucial step for Egyptian firms to enter the Saudi market and secure foreign currency, the source explained. Discussions are also underway to establish a risk fund at the central bank to facilitate the issuance of guarantees for these companies. In addition to the guarantees, the NHC has proposed increasing the issuance commission as an incentive for banks to facilitate the process.

There are plenty of Egyptian companies already developing projects in the kingdom with the NHC: Talaat Moustafa Group began selling units in May for its first development both in Saudi Arabia and outside of Egypt. The mixed-use SAR 65 bn Benan City project in Riyadh that was developed in partnership with the NHC will be fully built out over eight years and eventually house 27.8k residential units, along with a sports club and health, educational, and commercial services. Al Ahly Sabbour also has a Riyadh real estate project in the works. Our friends at Hassan Allam Construction Saudi were also awarded a contract last month to develop Port of NEOM’s Container Terminal 1 and a related marine services area.

REMEMBER– The Saudi real estate industry is under pressure to keep up with demand as the country’s population is on track to grow, with the share of expats rising to 50% from a current 42% by 2030, S&P Global said earlier this year. Supply — particularly in Riyadh and Jeddah — remains tight, causing inflation to accelerate as rent prices rise. Saudi has some USD 103.1 bn-worth of active building projects, with around 900 projects worth a combined USD 50 bn currently in the construction phase.

Dallah Healthcare to acquire a majority stake in one Ayyan Investment subsidiary + full ownership of another

Dallah Healthcare to acquire two Ayyan subsidiaries via noncash share transfer: Dallah Healthcare inked a binding SAR 660 mn share purchase and subscription agreement with Ayyan Investment to acquire two of Ayyan’s subsidiaries, according to disclosures to Tadawul (here and here). Both transactions are pending regulatory approvals, and shareholders’ approvals from both parties. The two companies are listed on Tadawul’s main market.

Transaction size + valuations: Dallah will acquire Ayyan’s 97.4% stake in Al Ahsa valued at SAR 409 mn, in addition to acquiring 100% of Ayyan’s Al Salam Medical valued at SAR 251 mn, “by way of a capital increase by issuing new shares in Dallah to Ayyan,” the statements read.

The agreement will see Dallah issue 3.9 mn new shares to Ayyan valued at SAR 660 mn. If the transactions go through, Dallah’s existing shareholders will keep a 96.2% stake in the company, while Ayyan’s shareholders will hold the balance. Ayyan has another 100% owned subsidiary, Al Ahsa Food Industries.

The fine print: “There may also be a cash consideration payable to Ayyan or Dallah based on certain conditions specified in the share purchase and subscription agreement,” according to the disclosures.

Al Ahsa + Al Salam closed 1H of this year in the red: Al Ahsa’s net income rose to SAR 7.1 mn in 2023, up from SAR 4.1 mn in the previous year, according to Ayyan data (pdf). Meanwhile, Al Ahsa reported a net loss of SAR 8.4 mn in 1H of this year. Al Salam reported a net loss of SAR 218.4 mn in 2023, up from a SAR 53.2 mn net loss in the previous year. It also posted a net loss of SAR 95.9 mn in 1H of this year.

REMEMBER- Ayyan’s accumulated losses by 1H 2024 hit 44.9% of the company’s capital. This places the company under the purview of Article 4 of the CMA’s guidelines for listed companies with accumulated losses, flagging the company’s stock until a remedial plan is announced. Ayyan Investment has raised over SAR 47.1 mn from its rump share offering earlier this month, which was 6.48x oversubscribed.

Market reax: Ayyan’s share price dropped 3.7% to SAR 17.4 per share at yesterday’s close, while Dallah’s share price dipped 1% to SAR 163.6 per share.

IN OTHER M&A NEWS-

Almunajem Foods secures approval for upping its stake in Balady Poultry: Tadawul-listed Almunajem Foods and Balady Poultry Trading received the go-ahead from the General Authority for Competition for a share purchase agreement that will see Almunajem acquire an additional 23% of Balady Poultry, according to two separate filings to the exchange (here and here). The transaction was valued at SAR 181.3 mn and will bring Almunajem’s total ownership in the company up to 40%.

Aramco awards a new EPCI contract to Italy-based contractor Saipem in the Marjan oil, gas field

Aramco taps Saipem for EPCI works in Marjan oil + gas field: Saudi Aramco has reportedly awarded a contract to Milan-based contractor Saipem for engineering, procurement, construction, and installation (EPCI) works with investments between USD 2 bn and USD 2.5 bn for multiple structures at the Marjan oil and gas field, according to a Meed exclusive. The involved parties have not disclosed any information about the reported contract.

What’s the job? The contract includes installing eight slipover jackets, three production deck modules, the upgrading of auxiliary platforms, laying subsea pipelines and cables spanning a 166 km area, and demolishing existing units, according to the project tracking platform.

This has been in the works since January: Meed cites unnamed sources as saying that technical and commercial bids for the project were submitted back in January. Saipem, along with other contractors including Lamprell, Larsen & Toubro Energy Hydrocarbon, Subsea 7, and NMDC Energy participated were among the bidders, the sources added.

Marjan is set to boost Aramco’s oil production capacity: The oil giant reported in its 1Q results that the Marjan crude oil increment is expected to add crude oil production capacities of 300k bbl / d and are on track and forecasted to be onstream by next year.

The latest we heard of Marjan: Last week, it was reported that China Offshore Oil Engineering completed a 24-storey offshore oil and gas platform that is set to be transported to the Marjan oil field at the end of this month.

REMEMBER- Saipem landed two offshore projects worth a combined USD 500 mn from oil giant Aramco last month for EPCI works in the Abu Sa’fah oil field and to introduce production maintenance programs for the Berri and Manifa fields.

Long-standing partners: Saipem said earlier this year that it is forecasting a 20% fall in average annual orders from Aramco until 2027 on the back of the oil giant’s decision to shelve plans of investment in new production capacity. However, it said Aramco’s suspension would not significantly impact its 2024 targets.

Bahri pushes with fleet modernization with USD 1 bn agreement for nine oil tankers

Bahri to acquire nine oil tankers for USD 1 bn: Shipping giant Bahri inked an agreement to acquire nine very large crude carriers (VLCCs) from global shipping outfit Capital Maritime and Trading Corporation for SAR 3.75 bn (c.USD 1 bn), according to a disclosure on the Saudi Exchange (Tadawul) yesterday. The VLCCs will be used by Bahri’s oil transport business to transport crude oil cargoes to its customers. The national shipping company is partly owned by the Public Investment Fund (Saudi’s sovereign wealth fund) and oil giant Aramco.

Ironing out the details: Capital Maritime and Trading Corporation will deliver the VLCCs to Bahri in multiple batches before the end of 1Q 2025. The Saudi firm will pay 10% of the total amount upon signing the purchase agreement, while the remaining 90% will be paid upon delivery of the vessels. The transaction will be financed by a combination of banking facilities and internally generated funds by Bahri, according to the disclosure.

About the vessels: The majority of the nine oil tankers are built in South Korea, Bahri said. The vessels are scrubber-fitted and equipped with high energy efficiency and low emission features to decrease environmental impacts. The average deadweight tonnage of each VLCC is around 311.5k.

Why this matters: Bahri says that the agreement will contribute to its fleet modernization plans, and will enable the company to phase out its older vessels. Bahri currently operates a fleet of 40 VLCCs with a 2.2 mn barrels capacity, according to the company’s website.

Bahri is all in for S. Korea VLCCs: Bahri reportedly bought four modern VLCCs in May from South Korean SM Group subsidiary Korea Line Corporation. No order ticket has been disclosed, but the four-year-old ships could have cost around USD 116 mn each.

Ambitious plans: Bahri said last month following its 2Q 2024 earnings that it plans to generate further growth through strategic fleet expansion and upgrades. Bahri and Saudi investment holding firm Aljan & Bros renewed earlier this year an MoU to discuss establishing a joint venture (JV) in vessel building. Bahri is also partnering with the Saudi Port Authority to establish a 95k sqm logistics center at Jeddah Islamic Port, which is expected to offer services including container maintenance, repair, cleaning, bonded storage, and haulage.

Gov’t approves the establishment of an HQ for the Arab Confederation for Institutes of Internal Auditors in the Kingdom

Cabinet approved a handful of decisions and agreements in its weekly meeting yesterday, according to state news agency SPA:

A framework agreement with the Arab Confederation for Institutes of Internal Auditors to establish its headquarters in Saudi Arabia;
A mutual visa exemption agreement with Cyprus for diplomatic, special, and service passport holders;
An MoU on direct investment with the UK, and Northern Ireland;
An MoU for nuclear regulatory cooperation with the Czech Republic;
A customs cooperation agreement with Tunisia;
A competition and antitrust cooperation agreement with Iraq;
An anti-corruption cooperation MoU with Malaysia;
A social ins. cooperation MoU with Jordan;
A one-year extension of the indicative period for the unified law on organic inputs and products in GCC countries;
An MoU for geological research cooperation with Mauritania.

PIF has it eyes set on domestic growth

The Public Investment Fund’s performance last year is leading the conversation on Saudi in the foreign press: The Financial Times came out with a piece on how the PIF is transitioning from a major global investor to focusing more on domestic projects, signaling a shift away from being a straightforward source of capital. With falling oil revenues and rising domestic development needs, the PIF is now placing more emphasis on ramping up local employment, along with reinvestment in the kingdom. Meanwhile, CNBC took note of some of the most significant KPIs mentioned in the fund’s annual report for 2023 (watch, runtime: 1:00).

Four firms contracted to develop King Salman International Airport. Plus: Investment, debt, infrastructure, financial services news

AVIATION-

Four firms contracted to develop King Salman International Airport: PIF subsidiary King Salman International Airport Development Company (KSIADC) has inked a strategic partnership agreement with four international and local firms for the development of the planned King Salman International Airport in Riyadh, state news agency SPA reports. The airport is an expansion of the capital’s King Khalid International Airport.

Who’s involved: International architecture firm Foster + Partners will draft the airport’s master plan, which will include several terminals and six runways. Engineering outfit Jacobs will consult on the airport’s runways and master plan. Consulting and construction company Mace will oversee planning and construction, while Saudi-based aviation operations solutions firm Nera will manage airspace design to streamline air traffic and boost capacity.

There’s a rough timeline for the project: Officials said in late June that they plan to open the airport’s private aviation terminal in 2026. The airport plans to introduce a new runway in 2027, a passenger terminal in 2028, and its “iconic terminal” by 2030, the airport’s acting CEO Marco Mejia said. Construction is set to continue until 2034, he added.

REFRESHER- Unveiled in November 2022, the airport is poised to be one of the world’s largest airports with an area spanning 57 square kilometers with six parallel runways. It is set to accommodate up to 120 mn passengers by 2030 and 185 mn travelers by 2050.

INVESTMENT WATCH-

Healthcare provider Al Modawat Specialized Medical is set to establish a healthcare-focused investment arm in Egypt, a disclosure to Tadawu l showed. Al Modawat will own 100% of the potential company. Information about the potential investment size and the timeline wasn’t disclosed.

ALSO FROM CAIRO- Egypt-based Biogrand to set up a SAR 25 mn fertilizers plant in the Kingdom: Fertilizer producer Biogrand plans to set up a SAR 25 mn (c. USD 6.7 mn) fertilizer factory here at home by the end of February 2025, CEO Esmael Taha told Al Mal. The factory will be established in partnership with unnamed Saudi investors and split its output evenly between the Saudi market and exports to Jordan, Iraq, Libya, and Algeria

INFRASTRUCTURE-

RSI subsidiary lands SAR 167 mn utility installation contract: Red Sea International (RSI) subsidiary Fundamental Installation for Electric Work (First Fix) has inked an SAR 167 mn 36-months contract with Modern Building Leaders for MEP works, according to a filing to Tadawul.

DEBT WATCH-

Al Jouf Cement obtained a SAR 150 mn Shariah-compliant loan from Al Rajhi Bank, according to a disclosure to Tadawul. The eight-year credit facility will be used to pay off a portion of an outstanding debt and finance future activities.

FINANCIAL SERVICES-

The Cultural Development Fund inked five agreements with major local banks to launch a new financing solution aimed at supporting and sustaining the cultural sector, it said in a statement on Linkedin. The lenders include Al Rajhi Bank, Alinma Bank, BSF, Arab National Bank, and Bank Aljazira. No further information was provided.

Investors sharply increase holdings in equity markets as recession fears fade

Market confidence returns as investors pile back into equity markets: Investors who had exited equity markets following US recession fears earlier this month have “sharply increased their holdings” in equity markets since last week’s rebound in global stock markets, the Financial Times reports, citing data from Deutsche Bank. Investors piled into big tech stocks, index options, and both cyclical and non-cyclical stocks, the bank said in a note seen by the FT.

The data represents what appears to be a “full recovery” for the US equity markets in just two weeks, US stock exchange operator Cboe Global Markets’ Mandy Xu said. The rebound follows a “brutal” sell-off that took place during the first week of August, which saw some indices hit multi-year lows and wiped USD tns from global stock markets.

Remember: Global stocks saw their best week in nine months last week after better-than-expected US inflation figures helped calm recession fears triggered by “alarming” US economic data.

Confidence in the US economy seems to be stronger than ever, despite many analysts just days ago warning of a looming recession. Some, including the Bank of America, argue that “this month’s ructions across markets have simply served to reinforce investor conviction in a Goldilocks macro environment” of stable inflation, sustainable economic growth, and healthy employment levels.

MARKETS THIS MORNING-

Asian markets are in the red this morning, carrying on yesterday’s losses seen on Wall Street and in Europe. Hong Kong’s Hang Seng is down 1.4%, Japan’s Nikkei is down 0.8%, and Korea’s Kospi is down 0.2%.

TASI	12,104	+0.7% (YTD: +1.1%)
MSCI Tadawul 30	1,506	+0.9% (YTD: -2.9%)
NomuC	25,991	+0.8% (YTD: +6.0%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	6.5% repo	5.5% reverse repo
EGX30	29,915	+2.0% (YTD: +20.2%)
ADX	9,317	+0.1% (YTD: -2.7%)
DFM	4,255	+0.4% (YTD: +4.8%)
S&P 500	5,597	-0.2% (YTD: +17.3%)
FTSE 100	8,273	-1.0% (YTD: +7.0%)
Euro Stoxx 50	4,858	-0.3% (YTD: +7.4%)
Brent crude	USD 77.20	-0.6%
Natural gas (Nymex)	USD 2.20	-0.1%
Gold	USD 2,554.40	+0.5%
BTC	USD 59,291.00	+0.3% (YTD: +40.7%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.7% yesterday on turnover of SAR 8.8 bn. The index is up 1.1% YTD.

In the green: Red Sea International (+10.0%), Zamil Industrial Investment (+9.9%) and Buruj Cooperative Ins. (+9.0%).

In the red: Cenomi Retail (-5.7%), Ayyan Investment (-3.7%) and Ataa Educational Company (-2.7%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.8% yesterday on turnover of SAR 63.7 mn. The index is up 6.0% YTD.

In the green: Mayar Holding (+15.5%), ASG Plastic (+13.3%) and United Mining Industries (+7.7%).

In the red: Mohamed Hadi Al Rasheed (-9.8%), Riyadh Steel (-8.3%) and Almuneef (-7.0%).

Saudi looks to strengthens ties with Uruguay

Saudi and Uruguay signed several MoUs as the two countries wrapped the inaugural two-day session of a joint committee in Montevideo yesterday, according to state news agency SPA. The agreements include an MoU to create a joint business council, along with plans to strengthen collaboration in economic, trade, agricultural, cultural, and sports sectors, with the goal of increasing trade and investment between the two countries.

CALENDAR

AUGUST

4 July-25 August: (Thursday-Sunday): Esports World Cup, Boulevard Riyadh City, Riyadh.

10 August – 10 September (Saturday-Tuesday): Crown Prince Camel Festival,Taif Camel Racing Track.

18-22 August (Sunday-Thursday): SANS Riyadh Cyber Leaders August 2024, Hyatt Regency Riyadh Olaya.

24-25 August (Saturday-Sunday): New Global Sport Conference 2024 (NGSC24), Four Seasons Hotel Riyadh.

25-29 August (Sunday-Thursday): Tourism Week, Enterprise Support Centers in Riyadh, Jeddah, Al-Khobar, and Madinah.

27-29 August (Tuesday-Thursday): Saudi Fashiontex Expo, Riyadh.

SEPTEMBER

2-4 September (Monday-Wednesday): Saudi Warehousing & Logistics Expo, Riyadh.

2-4 September (Monday-Wednesday): Saudi Wood Expo, Riyadh.

3-5 September (Tuesday-Thursday): 24 Fintech, Front Exhibition & Conference Center, Riyadh.

9-11 September (Monday-Wednesday): International Manufacturing Congress, Riyadh.

9-12 September (Monday-Thursday): EFG Hermes London Conference, Emirates Stadium, London.

10 September (Tuesday): Saudi Arabia Investors Forum, Riyadh.

10-11 September (Tuesday-Wednesday): SkyMove MENA, Riyadh.

10-11 September (Tuesday-Wednesday): Middle East LPG Expo – Saudi Arabia 2024, Intercontinental Hotel, Riyadh.

10-12 September (Tuesday-Thursday): Saudi Sports Show, Riyadh.

10-12 September (Tuesday-Thursday): Global AI Summit, Riyadh.

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

16-19 September (Monday-Thursday): Foodex Saudi, Riyadh.

17-19 September (Tuesday-Thursday): EV Auto Show, Riyadh.

17-19 September (Tuesday-Thursday): Hotel & Hospitality Expo, Front Exhibition & Conference Center, Riyadh.

18-19 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam.

18-19 September (Wednesday-Thursday): IDC Saudi Arabia CIO Summit 2024, Riyadh.

24-26 September (Tuesday-Thursday) Saudi Infrastructure Expo, Riyadh International Convention and Exhibition Center, Riyadh.

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

25-26 September (Wednesday-Thursday): Kingdom Business and Luxury Travel Congress, Crowne Plaza Riyadh RDC Hotel and Convention.

27 September (Friday): CAF Super Cup Final 2024, Riyadh.

29 September-1 October (Sunday-Tuesday): Jeddah Construct Expo, Jeddah.

29 September (Sunday): Start of Digital Chip Design Technologies training program.

OCTOBER

1-3 October (Tuesday-Thursday): Intersec Saudi Arabia 2024, Riyadh.

5-7 October (Saturday-Monday): Middle East Education & Training Exhibition 2024, Jeddah.

12 October (Saturday): Riyadh Season.

12 October (Saturday): Shakur Stevenson x Joe Cordina, Riyadh.

12-14 October (Saturday-Monday): Global Logistics Forum, Riyadh.

15-16 October (Tuesday-Wednesday): Solar & Storage Live KSA, Riyadh.

16-17 October (Monday-Tuesday): Global Airport & Aviation Forum, Jeddah.

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh.

21-22 October (Monday-Tuesday): Aussie Expo, King Abdullah Financial District Conference Center, Riyadh.

21-23 October (Monday-Wednesday): Global Health Exhibition 2024, Riyadh.

29-31 October (Tuesday-Thursday): Future Investment Initiative Conference, Riyadh.

31 October (Thursday): No-visa travel for Saudis to Montenegro on charter flights expires.

NOVEMBER

2-9 November (Saturday- Saturday): WTA Finals, Riyadh.

4-7 November (Monday-Thursday): Saudi Build, Riyadh.

26-28 November (Tuesday-Thursday): Saudi Electricity Expo, Riyadh.

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh.

11-14 November (Monday-Thursday): Cityscape Global, Riyadh.

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Dammam.

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam.

25-27 November (Monday-Wednesday): World Investment Conference, Riyadh.

26-28 November (Tuesday-Thursday): Future Power Expo, Riyadh.

DECEMBER

1 December (Sunday): Opec+ to meet.

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh.

3-5 December (Tuesday-Thursday): The International Business Exchange – IBEX EVENTS, Riyadh.

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

11 December (Wednesday): FIFA Congress, which will decide the hosting countries for the FIFA World Cup 2030 and 2034

23-26 December (Monday-Thursday): Aqarat Expo, Riyadh.

Signposted to happen sometime in 2024:

The AFC Champions League Elite

2025

JANUARY 2025

28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Riyadh.

FEBRUARY 2025

10-13 February (Monday-Thursday): Leap 2025, the Kingdom’s premier tech investment conference.

14-15 February (Friday-Saturday): Formula E, Diriyah.

JUNE 2025

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

2026

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

2027

The World Water Forum takes place in Riyadh.

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