Saudi is playing a make-or-break role in COP28 talks, setting Europeans on edge

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WHAT WE’RE TRACKING TODAY

It’s going to be a big week for news out of COP28 — and China

Good morning, friends. It’s going to be a huge week for KSA — in Dubai. That’s where Saudi officials are already locking horns with leaders of western economies on a final agreement at COP28.

As we reported last week, Saudi is leading the Arab world’s push-back against any agreement that includes a call for a phaseout of hydrocarbons. That’s not going over well with negotiators from the European Union, the United States, and many small island nations.

Today is key: It’s the next-to-last official day of COP28. Pundits expect marathon negotiations over the next 36 or more hours — and it’s not impossible talks will stretch past tomorrow’s deadline.

^^ Scroll down to this morning’s news well for the full rundown on what you need to know.

Need even more on COP? Enterprise Climate has got your back.

HAPPENING THIS WEEK-

You can expect a lot of news out of Beijing, where a China-Saudi investment conference will get underway tomorrow as part of a visit by Investment Minister Khalid Al-Falih. More than 700 people are set to attend, including investors, business leaders, and policymakers from both countries.

On the agenda: Two-way investment in everything from finance, tourism, AI, and logistics to agriculture, mining, energy, and manufacturing. The conference is being co-hosted by the Investment Ministry and a wing of the China Chamber of Commerce.

We’re pushing hard on ties with Asia: Al Falih was just in Hong Kong for the Asia Future Investment Initiative Priority Summit, where he talked up deeper cooperation between the Kingdom and Asian economies. Earlier this month, the first Hong Kong-traded ETF of Saudi equities started trading. (We have more in this morning’s news well and Diplomacy roundups, below.)

AND- The Operational Excellence Conference (Opex KSA) takes place tomorrow and Wednesday at the Four Seasons in Riyadh.

WHISPERS-

#1- Is the PIF angling for majority control of Heathrow Airport? That’s the word from The Times of London, which reports that at least one other shareholder is edging toward an agreement to sell its shares after PIF and Paris-based equity firm Ardian agreed to buy a 25% stake held by Spanish infrastructure company Ferrovial.

Who’s selling? The Times thinks it’s unlikely to be sovereign wealth funds from Qatar, China, or Singapore. But pension funds from Quebec, Australia, and the UK’s Universities Superannuation Scheme could be in the market. The current shareholder agreement gives all parties the right to sell to PIF at the same price as Ferrovial, the Financial Times adds.

#2- Is PIF about to add another player to its Liv / PGA / European Tour consortium? That’s the word from Bloomberg and CNBC, which say that a consortium led by US sports stalwart Fenway Sports Group has gotten the green light to join the party. Talks on the lash up continue this week ahead of a 31 December deadline for an agreement.

WATCH THIS SPACE-

#1- The US believes Saudi-Israel normalization is still possible despite the war in Gaza, Reuters reports, citing statements by US Energy Envoy Amos Hochstein during an industry event in the UAE. “I think that not every road is a straight road and sometimes it goes in different directions first. But the goal is still the same,” he said. The Kingdom pulled the brake nearly two months ago on a US drive to see us normalize relations.

#2- Fly directly to Tehran? Saudi Arabia and Iran will hold formal talks this week on a possible resumption of direct, scheduled flights between Tehran, Riyadh and other cities, Reuters, reported yesterday, citing statements by an Iranian official to state-affiliated news agency ILNA. The two countries restored diplomatic ties back in March.

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THE BIG STORY ABROAD-

Eyes around the region have turned to the border between Egypt and Gaza, where tens of thousands of refugees are being pushed by Israel’s drive into southern Gaza. UN and Arab officials have warned that “the developments we are witnessing point to attempts to move Palestinians into Egypt” and that conditions on the border could “increase pressure for mass displacement into Egypt.” (LA Times | Reuters | UN remarks)

ALSO- Lebanon has called for a nationwide strike in support of Gaza as activists around the world called for “a global strike on Monday to demand an immediate ceasefire.”

MORNING MUST-READ-

AI nerds and even the simply curious should read Inside OpenAI’s crisis over the futureof Artificial Intelligence. Not the greatest headline ever written, but the deeply reported piece is a must-read if you want to get not just into why Sam Altman got sacked, but think through what “cracks at the heart of the AI movement” the brawl exposed.

FISCAL POLICY-

#1- The kingdom has lined up a USD 11 bn syndicated loan, Al Jadaan confirms:Finance Minister Mohamed Al Jadaan confirmed news first reported by Bloomberg last month that the Kingdom has secured a USD 11 bn syndicated loan from 14 banks. “Acquiring debt is not worthy of news since it’s the day-to-day business of the debt unit,” Al Jadaan told Al Arabia (watch, runtime: 13:26), adding that the ministry will keep taking advantage of favorable market conditions to take on more debt even if it is “not needed today.” SPA also confirmed the news yesterday.

#2- Tax incentives for relocated HQs, not their for local arms:The 30-year tax breaks announced last week for foreign companies that relocate their regional headquarters to the Kindom will apply only to HQ activities. Their “producing units [in the kingdom] will be subject to tax,” Al Jadaan said during the same interview.

DATA POINT-

The economy shrank again in 3Q on oil supply cuts:Total output contracted 4.4% y-o-y in 3Q 2023 as activity in the oil industry maintained a downward trend, declining by 17%, according to figures from the General Authority for Statistics (pdf). But the non-oil economy continued to grow, rising 3.5% in the same period.

FIRSTS-

A women’s under-20 football national team: The Saudi Arabian Football Federation (SAFF) is for the first time forming a Women’s U20 national team, it said in a statement (pdf). “This initiative is part of the SAFF's broader strategy to create sustainable and clear career paths for aspiring women footballers, reflecting a commitment to the growth of the sport at all levels,” it said.

CIRCLE YOUR CALENDAR-

There’s so much entertainment on offer this week that it’s hard to begin thinking of where to start:

The FIFA Club World Cupwill kick off for the first time in the kingdom tomorrow, running through Friday, 22 December in Jeddah. You can buy tickets here.

The Jeddah Book Fair will run until Saturday, 16 December,with over 1k publishing houses set to attend.

The Fintech Tour will continue until Wednesday, 13 December. The fintech-focused gathering includes more than 15 events, presentations, and meetups involving key local and international speakers in eight cities across the country.

The International Arabian Horse Show kicks off on Wednesday, 13 December and continues through Saturday, 16 December at the King Abdulaziz Center for Purebred Arabian Horses’ headquarters in Riyadh.

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

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

Riyadh will host theTurkish Super Cup finalbetween Galatasaray and Fenerbahçe on Friday, 29 December at Alawwal Park Stadium as part of the Riyadh Season.

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

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Prepare for acrimony as Saudi plays make-or-break role in COP28 talks

Saudi is leading a group of oil producers pushing back on a phaseout of fossil fuels in what US and European leaders are turning into a “make-or-break” moment in the battle against climate change.

The issue: One draft agreement making the rounds in Dubai, backed by some 80 countries including the US and the European Union, calls for a “phaseout” of all oil, natural gas, and coal. It would be the first time in 30 years that the COP process would call for a phaseout.

The Kingdom is leading a faction of oil-producing countries that are having none of that, as we’ve reported since COP28 kicked off. Saudi and other Arab producers argue that tackling climate change is about reducing emissions, not about the mix of energy sources on which economies rely. OPEC is fully on side, with its chief having said in a letter last week that its members will “reject any test or formula that targets energy, i.e. fossil fuels, rather than emissions.”

AND- Saudi negotiators are also said to be pushing back on the idea of tripling global renewable energy capacity by 2030.

Talks are now said to have become heated in the negotiating rooms as Saudi officials use procedural tactics to slow discussions.

Pushing back on a double standard: The Kingdom is using proceeds from oil production to fund the growth and diversification of the non-oil economy. We’re now being told to dial-back our ambitions. This comes as oil production in the US is surging — and after European countries turned on coal-fired power plants when Russia’s invasion of Ukraine upended the continent’s energy markets.

Cry “Havoc,” and let slip the insults of Europeans: Saudi is lobbying the UAE to curb the Western push against hydrocarbons — prompting a furious backlash from European Union negotiators. Officials from EU nations are calling diplomacy by Saudi and OPEC countries at COP28 “out of whack” and “unhelpful” — even “disgusting.”

A possible compromise? Some are trying to build consensus on the idea of phasing out fossil fuels for power plants and other facilities that don’t have carbon capture and sequestration technology. China and the US — the world’s two largest emitters of greenhouse gasses — are also pushing for a compromise.

Why it matters so much: Under UN rules any one of the 198 countries attending can prevent the adoption of a final text. Saudi foil Fatih Birol, the head of the International Energy Agency, is demanding delegates reach a consensus on an “orderly and just decline in fossil fuels in line with our international climate goals” before the summit wraps up, he told the Financial Times.

Why today is so big: It’s the next-to-last (official) day of COP28, and talks are set to kick into high gear. You can expect marathon overnight negotiations — and the prospect of overtime.

Also likely to get lots of attention today: adaptation. Some developing countries think text on funding for climate adaptation is “weak.” The UN Environment Program has already identified an adaptation funding gap of around USD 387 bn.

Gov’t makes a strategic pivot that will see some projects miss the initial 2030 deadline

Pacing out growth to deliver fiscal sustainability, boost efficiency: The government will strategically slow the execution of some of its economic transformation projects, seeing some conclude past their initial 2030 deadlines, Finance Minister Mohamed Al Jadaan said at the annual budget forum on Thursday (watch,runtime: 37:10). “Certain projects can be expanded for three years — so it’s 2033 — some will be expanded to 2035, some will be expanded even beyond that and some will be rationalized,” Al Jadaan explained.

SOUND SMART- Growing while managing inflation + import bill: The rapid execution of Vision 2030 mega projects, aimed at strengthening and diversifying the non-oil economy at home, shouldn’t come at the expense of spiraling inflation, the minister suggested. Focusing on delivery “in a short span of time” fuels inflation and encourages more imports to cover the resources that the economy can’t currently provide, Al Jadaan said.

Not pulling the plug, just recharging: More time is needed to “build factories, build sufficient human resources,” said Al Jadaan, suggesting that the government will need to ramp up investment and double-down on building capacity before it breaks ground on some of the planned projects.

What we don’t know: While the minister didn’t specify which industries and projects will be pushed back, he mentioned they are “largely projects in the pipeline which have not been announced yet — are given a longer executional timeframe.” The Economy and Planning Ministry is currently reviewing the priority list to decide which projects will see their timelines stretched, according to Al Jadaan.

SOUND SMART- Officials don’t want government borrowing to soak up liquidity the private sector needs to grow.Access to debt for both private companies and citizens is key to growth, Al Jadaan suggested, noting that the government has no interest in crowding them out. Policymakers have also considered the delay in terms of how much international debt the Kingdom wants to take on, emphasizing the need to stay below a sustainable debt ceiling measured against both GDP and non-oil GDP, the minister added.

Running on a deficit to fund growth: “We intentionally decided to spend more and cause the deficit. If you spend that money right, on productive assets, then it’s money well spent,” Al Jaadan said in a live FY 2024 budget broadcast on Wednesday. Al Jadaan revealed a targeted deficit of SAR 79 bn (1.9% of GDP) in the next fiscal year — and is signaling it will continue to run deficits to support the “government's strategic expansionary spending.”

REAX- A calculated move: Extending the timeline for some projects that were initially planned for execution by 2030 is a calculated move by Crown Prince and Prime Minister Mohammed bin Salman who is “open to advice from other parts of the system,” Bloomberg reports, quoting Ayham Kamel, head of Middle East and North Africa research at the Eurasia Group.

One pundit cheered the move in light of lower oil receipts: “It’s fiscally positive, especially against the background of relatively lower current oil income. There are also inevitable logistical bottlenecks that were bound to delay some projects,” the business information service quotes Steffen Hertog, an associate professor at the London School of Economics, as saying.

American-European consortium snags project management contract for USD 7 bn Saudi land bridge megaproject

Saudi Railway awards project management contract for USD 7 bn land bridge: The Saudi Railway Company (SAR) has awarded a consortium that includes US-based construction management firm Hill International, Italian consulting firm Italferr, and Spanish engineering firm Sener the contract to manage the construction of the USD 7 Riyadh-Jeddah land bridge megaproject, Meed reported last week.

Refresher: The project is set to connect the Kingdom’s Red Sea coast to the coast of the Arab Gulf. SAR received bids for the contract in October 2022, with the consortium beating rival nids from Systra and a consortium of Parsons and Egis, the International Railway Journal (IRJ) reported last week.

Who else is involved? The Saudi China Landbridge consortium — led by SAR, China Civil Engineering Construction Company (CCECC), and Al Ayuni as a local partner — signed an MoU to implement the project in October 2018. Thales, WSP, Aldhabaan & Partners, the local partner of British law firm Eversheds & Sutherland, ALG Infrastructure, and Calx Consultancy are also involved.

About the project: Construction work on the project will include a mixture of upgrades and new line construction which are expected to take seven years to complete, according to IRJ. When it’s done, the new railway will include six lines:

Work on the first line will involve upgrading and adding a 10km extension to the Jubail Industrial city’s internal network;
Work on the second line will add a 35km extension to the Jubail-Dammam railway line;
The third line will involve revamping and adding an 87km extension tothe Dammam Riyadh line;
The fourth line, known as Riyadh bypass, will include polishing up an already-existing network in the city — which connects the northside of the capital to the southside — and is composed of a 67 km track and a separate 35 km spur;
The fifth track will link Riyadh to Jeddah via a 920 km railway line, and Jeddah to King Abdullah Port via 146 km of track, in addition to stations in Jamuma, Al Muwayh and in Al Dawadmi;
The 172 km sixth line will link King Abdullah Port to Yanbu Industrial city.

The project also includes the development of seven logistics centers: Jubail Industrial City Logistics Centre, Damman Logistics Dry Port, a relocated Riyadh Dry Port, King Khalid Airport Logistics Centre in Riyadh, Jeddah Logistics Dry Port, King Abdullah Port Logistics Centre and Yanbu Industrial City Logistics Centre.

It has been in the works for decades: Plans to develop the Saudi Landbridge project were originally announced in 2004 but were suspended in 2010. Though it was revived in 2011, progress has been relatively slow since then. It remains one of the kingdom’s most anticipated infrastructure projects, with Crown Prince and Prime Minister Mohammed bin Salman confirming the government’s commitment in June 2021 in tandem with the launch of the National Transport and Logistics Strategy.

What’s next: SAR could kick off work on the project, which includes constructing the new 950-km railway between Riyadh and Jeddah, early next year, according to IRJ. The negotiations on the final cost and financing structure are also in their final stages, it added.

Cenomi Retail is selling 100% of it fashion subsidiary to Abdullah Al Othaim for SAR 120 mn

Cenomi Retail is selling its fashion subsidiary to Abdullah Al Othaim: Cenomi Retail, the kingdom’s largest franchise retailer, has inked an SAR 120 mn agreement to sell 100% of its wholly owned subsidiary Innovative Outfit Trading Company to Abdullah Al Othaim Fashion Company, Cenomi said in a statement (pdf). The buyer is a subsidiary of malls operator Abdullah Al Othaim Investment.

What we know: Abdullah Al Othaim Fashion will acquire Innovative Outfit Trading along with the franchise rights for the brands and their corresponding 244 stories and assets for SAR 120 mn. Al Othaim Fashion will adjust the sale price for the value of the inventory on hand at Innovative Outfit when the transaction closes in 1Q 2024, the statement said. The transaction still needs approval from the General Authority for Competition (GAC).

Al Othaim is picking up the rights to 18 fashion brands, including Flormar, Oxxo and Monsoon, among others, as it looks to diversify its revenues beyond mall operations. Abdullah Al Othaim Investment company is the kingdom’s second largest mall operator and runs entertainment centers in the kingdom, GCC and Egypt. It has plans to enter the hospitality, sports, and artificial intelligence sectors.

Cenomi Retail is playing chess, not checkers: Cenomi Retail is in the midst of a turnaround bid that it says will see it focus on a subset of brands in fashion, electronics, and food and beverages. Cenomi Retail is the largest franchise retailer in the Kingdom and the only listed business of its type in the region. It was founded in 1990 by Fawaz AlHokair and is now active in 11 countries where it operates 1.8k stores across 100 malls.

By the numbers: The brands contributed a total of SAR 248 mn to Cenomi’s top line in 9M 2023, accounting for 5.7% of the company’s top line in the period.

Lendo lands USD 28 mn series B + SaaS startup Blink closes USD 2.1 seed round

Lendo closes a series B investment round:Shariah-compliant fintech company Lendo has secured SAR 105 mn (USD 28 mn) in series B funding led by the Public Investment Fund subsidiary Sanabil Investments, with participation from Shorooq Partners, AB Ventures, among others, it said in a press release (pdf) yesterday. This brings the company’s total funds raised to date to USD 63.2 mn.

The company’s name speaks for itself: Lendo is a peer-to-peer debt crowdfunding platform that connects SMEs with lenders. Companies in the kingdom that have been in the market for at least one year with a turnover of not less than SAR 2 mn can apply for loans on Lendo after they pass a due diligence screen.

The funds will drive expansion: “We are going to expand into new markets, support new and current customers and launch new Shariah-compliant products,” said Lendo’s co-founder and CEO, Osama Alraee. Lendo claims that its customer base has grown 3x y-o-y, without giving a figure.

An IPO next? Alraee mentioned plans for an IPO without disclosing a timeframe.

Lendo was profitable in the third quarter of this year, according to the company’s financial statements (pdf), turning in a bottom line of SAR 588k compared with a net loss of SAR 1 mn in the same quarter last year. For 9M 2023, it has losses of SAR 1 mn on its bottom line. As you’d expect from a venture-backed company, Lendo has seen losses widen as it has grown: It lost SAR 5.2 mn in 2022 and SAR 797k in 2021.

BLINK SEED ROUND

Saudi-basedSaaS Startup Blink has closed a USD 2.1 mn seed funding round with participation from 500 Global and Global Founders Capital, alongside existing investors including Orbit Startup / SOSV, it said in a statement on Friday. Blink plans to use the funds in a quest to accumulate additional market share.

Meet Blink: The SaaS company builds online-ordering websites and mobile apps with a toolkit that includes analytics, fleet management, tracking, and engagement tools. It aims to help restaurants rely less on delivery apps that eat up margins by an average of 20%. It currently operates in the MENA region, Afghanistan, and Pakistan, according to Forbes Middle East.

JADA + eWTP

PIF’s Jada Fund of Funds Company has committed fresh capital to the eWTP Arabia Technology Innovation Fund II, eWTP said on Friday. Neither party said how much Jada committed this time around, but Al Arabiya says that the cash brings Jada’s total commitment to the fund to USD 200 mn. Alibaba-backed VC eWTP is raising USD 1 bn in fresh capital in a round expected to close early in 2024, Bloomberg says. “We have a few funds from different pockets of the PIF. We are a strategy partner with Saudi Aramco and we are working very closely,” Bloomberg quotes eWTP Founder and Managing Partner Jessica Wong as saying.

The Hong Kong iteration of Davos in the Desert took place over the weekend with finance, business magnets flocking into the FII Priority summit

World business and finance leaders convened in Hong Kong for the FII Priority summitover the weekend. Public Investment Fund (PIF) chief Yasir Al Rumayyan, wearing his hat as chairman of the Future Investment Initiative (FII), led a Saudi delegation to Hong Kong in what we see as the latest move in the Kingdom’s drive into Asia.

The gathering got plenty of attention in the global business press, including from the Financial Times, which quotes FII head Richard Attias as saying that both the chair and CEO of the Hong Kong Exchange have “close friends’ at the FII and have been “extremely active” in visiting Saudi Arabia.

Talking up ties: Beijing’s relationship with Riyadh “is going to be an amazing connection that has been underdeveloped in the past,” Hong Kong Exchange Chair Laura Cha said at the conference on Thursday. “The Middle East is rising in terms of geopolitical importance as well as in terms of economic development,” Cha added.

An Aramco offering in Hong Kong? Chinese officials are reportedly eyeing an offering by oil giant Aramco in Hong Kong in a bid to boost the attractiveness of the market, according to the FT. Their hopes come just days after the first exchange-traded fund tracking the Tadawul started trading in Hong Kong, as we recently reported.

Expect a lot of traffic in the China-Saudi air corridor in the new year: “We also see Saudi investors interested in Hong Kong and China equities, but they have limited knowledge of the market. We’re going to try to bring Hong Kong and China to Saudi and the Middle East in the new year.” CSOP CEO Ding Chen told Bloomberg TV last month.

Edelman KSA recruits two new people on their team

Edelman, which bills itself as the world’s biggest PR firm, has named Elie Azzi (Linkedin) as its new general manager for its operations in the Kingdom, PRovoke Media reported last week. Azzi, who is set to join Edelman from Ogilvy in January, has been Ogilvy’s head of PR in Riyadh since November 2021. Prior to his post in Riyadh, Azzi was the lead on PR in Lebanon and Iraq. He also held senior positions across the region at Havas and Porter Novelli. He will succeed Kenana Dahlan (LinkedIn), who has moved on to be a chief advisor to the government in Riyadh, according to her Linkedin account.

And from Edelman: Edelman KSA has also appointed Sarah Alarrak (Linkedin) as the business’s strategic communications advisor to help grow the agency’s client base. She last served as the Sports Ministry’s multilateral relations manager

So much chatter…

It’s a mixed bag for Saudi Arabia in the international press this morning.

Leading the conversation: Saudi’s objection to calls for the phasing-out of hydrocarbons in a draft agreement at COP28. European politicians are literally sneering over the pushback from Saudi and Arab producers, with Germany’s climate envoy saying it smacks of “panic” and another diplomat calling it “disgusting.”

The chattering class in England is a tizzy after the Financial Times reported that the Crown Prince and Prime Minister Mohamed bin Salman pushed back plans to visit London. The postponement came just days before Russian President Vladimir Putin touched down in Riyadh. Saudi officials are downplaying the report, while some in the UK are using the delay to make hay at home.

More companies are setting up their regional headquarters in the kingdom, with the latest being asset and wealth manager Northern Trust, which became the one of the first leading global financial institutions to set up its regional HQ in Riyadh, Bloomberg writes.

Surprising nobody, the Guardian is still talking smack about Heathrow and football.

Speaking of sports: There’s speculation that Barcelona’s Marcos Alonso and Liverpool’s Mo Salah may be Saudi-bound — and golf’s Jon Rahm is making headlines for “defecting” to PIF-backed Liv Golf. The PGA and European Tour are still in talks with Liv over a merger.

Direct flights to Poland + Jeddah’s new routes. PLUS: Coffee, Neom, fertilizers, Jazan, JeelPay

AIRLINES-

#1- We might be seeing flights between the kingdom and Poland for the first time next year: The Saudi Air Connectivity Program (ACP) signed an agreement with LOT Polish Airlines to open direct flights for the first time, SPA reported last week, citing a statement by the ACP. Flights three times a week between Warsaw and Riyadh could begin as early as June 2024. ACP expects the route to drive tourism and trade, noting that 43% more Polish travelers have visited Saudi Arabia this year compared to last.

#2- Saudi Arabia has committed USD 1.5 mn to a new regional aviation monitoring agency known as the Regional Aviation Safety Monitoring Organization for the Middle East and North Africa (MENA RSOO), the General Civil Aviation Authority (GACA) said last week in a statement.

LOGISTICS-

Jeddah Islamic Port will serve new destinations in a partnership with Ocean Network Express (ONE), the world’s sixth-largest container line, the Saudi Ports Authority (Mawani) said last week. The tie-up will link Jeddah Islamic Port to 11 regional and global ports, including Pakistan’s Port Qasim and India’s Mundra, Hazira and Nhava Sheva ports. It will also link the port to Spain’s Algeciras, as well as to ports in New York, Savannah, Norfolk, Charleston, and Jacksonville in the United states and Damietta in Egypt. Regular weekly sailing will begin in May 2024 with a fleet of nine vessels from the port, it said.

RETAIL-

A new Saudi coffee — by Vienna’s Bieder & Maier: Cenomi Retail signed an agreement with Vienna-based coffee company Bieder & Maier to bring in Vienna coffee houses to the kingdom, a Cenomi said in a statement. Bieder & Maier will create a new “Bieder & Maier Premium Saudi Blend” from Arabica beans sourced in Jazan region and market the coffee in both Austria and Saudi Arabia. The partnership is backed by both the Investment Ministry and PIF subsidiary Saudi Coffee Company (SCC).

NEOM-

Neom launches Topian, a food company with a focus on sustainability. In collaboration with the Ministry of Environment, Water and Agriculture (MEWA), Topian will focus on climate-resistant agriculture, regenerative aquaculture, and sustainable food supply, according to a statement from Neom yesterday.

FERTILIZERS-

Russia and Saudi Arabia should create a joint fertilizer company, Russian President Vladimir Putin told Crown Prince Mohammed bin Salman in statements picked up by Tass last week. His statements came as he introduced Prince Mohamed to Russian fertilizer tycoon Dmitry Mazepin who was among Putin’s delegation. “[He] is dealing with fertilizers,” Putin told the Crown Prince. “There is a chance to make a large joint company,” he added.

INVESTMENT-

The private sector snaps projects worth SAR 9 bn in Jazan: Private companies were awarded 53 contracts worth a combined SAR 9 bn in Jazan in a ceremony held yesterday by the Emir of Jazan region, Prince Mohamemed Bin Nasser Bin Abdulaziz, Saudi state news agency SPA reports. Some 11 of these projects are in the services sector, 24 in infrastructure, and 18 in housing. Information about the winning bids wasn’t made public.

TELECOM-

Telecom giant STC has joined regional peers in what it says is a bid to become more sustainable by setting up an innovation hub with in partnership with the GCC Telco Alliance, which counts as members e&, Zain, Beyon, Omantel, du, Ooredoo. The hub will look into how operators can better harness renewable energy, among other ideas, it said in a statement.

BNPL-

JeelPay has landed a permit from SAMA to offer buy now, pay later services. JeelPay becomes the seventh BNPL provider in the kingdom.

ENVIRONMENT-

KSRelief has committed some USD 8 mn to a UN-salvage operation that’s working to avert the remaining threat of an oil spill from rusting supertanker Safer off Yemen, the SPA reports. This contribution represents 40% of the USD 20 mn required to completely turn the page on that threat. The UN removed more than 1 mn barrels of crude oil from Safer at a cost of USD 140 mn back in August, averting the worst of the possible catastrophe.

India’s stock market poised to overtake Hong Kong as leading trading center

India’s stock market is on track to eclipse Hong Kong: Recent surges in Indian share prices have put the country’s stock exchange on track to surpass Hong Kong and become one of the world’s largest trading centers, according to the Financial Times. The National Stock Exchange of India’s total market cap stood at USD 3.7 tn at the end of October, and with strong earnings and growth projections pushing share prices higher in the weeks since, the Mumbai-based market is poised to take the place of the Hong Kong stock exchange (October market cap: USD 3.9 tn) as the world’s seventh-largest exchange.

The hometown angle: Egypt is looking to raise (debt) finance in the Indian capital markets for the first time ever next year with an INR-denominated bond sale.

BIG US M&A NEWS-

US health ins. firm Cigna pulled out of a planned merger with Humana — a transaction that would’ve created a USD 140 bn ins. giant. (Financial Times)
An investor consortium has submitted a USD 5.8 bn bid for American department store company Macy’s. (Wall Street Journal)

TASI	11,296.72	+0.6% (YTD: +7.8%)
MSCI Tadawul 30	1,448.38	+0.6% (YTD: -13.8%)
USD : SAR (SAMA)	3.75	-
Interest rates	6% repo	5.5% reverse repo
EGX30	24,189.83	-2% (YTD: +65.7%)
ADX	9,400.75	-0.7% (YTD: -7.9%)
DFM	3,951.52	-0.1% (YTD: +18.5%)
S&P 500	4,604.37	+0.4% (YTD: +19.9%)
FTSE 100	7,554.47	+0.5% (YTD: +1.4%)
Euro Stoxx 50	4,523.31	+1.1% (YTD: +19.2%)
Brent crude	USD 75.84	+2.4%
Natural gas (Nymex)	USD 2.58	-0.2%
Gold	USD 2,014.50	-1.6%
BTC	USD 43,785.98	-0.5% (YTD: +154.5%)

THE CLOSING BELL-

The TASI rose 0.6% yesterday on turnover of SAR 5 bn. The index is up 7.8% YTD.

In the green: Amiantit (+9.9%), Naseej (+9.8%) and Maharah (+8.4%).

In the red: APC (-2%), Saptco (-1.9%) and Bindawood (-1.9%).

Asian markets are largely up this morning as investors welcome Chinese inflation falling at its fastest pace since 2020, according to CNBC. Equities futures suggest Europe will largely open in the green later today, while Wall Street could be looking at a mixed open.

CORPORATE ACTIONS-

Tadawul-listed Northern Region Cement Company has agreed to sell its assets in Iraq in a transaction worth USD 44 mn.

Industrial investment firm Alujain Corporation said it has closed the acquisition of shares of its subsidiary National Petrochemical Industrial Company (NAPTET), bringing its ownership in NAPTET to 97.6% from 88.6%, according to a disclosure to Tadawul yesterday.

Shareholders of Development Works Food (DWF) have rejected the board’s recommendation to go ahead with a SAR 216 mn capital increase via rights issue.

Dar Almarkabah’s Board of Directors has dismissed board member Iyad Muhammed Amin Bakhsh at the request of a shareholder that owns over 10% of the company’s capital.

Acwa Power said Al Rajhi Holding — one of its major shareholders with a 11.2% stake — is restructuring how it holds its Acwa shares.

Saudi Investment Minister explores enhanced trade and tech collaboration with China

Saudi Arabia and China are talking about expanding trade and investment ties after a meeting yesterday in Beijing between Investment Minister Khalid Al Falih and China’s commerce and industry ministers, Reuters reports. Commerce Minister Wang Wentao said the two sides will cooperate on energy, resources, infrastructure and technology. Beijing is also open to working with the kingdom to develop e-vehicles, aircraft, photovoltaics and artificial intelligence and cooperate to preserve global industry supply chains, China’s Industry and Information Technology Minister, Jin Zhuanglong told Al Falih.

AND- The Kingdom and Hong Kong signed a MoU to promote direct investment between the two countries, according to SPA.

ALSO- Officials are discussing how to boost trade with Vietnam and Bangladesh.

CALENDAR

DECEMBER

4-7 December (Monday-Thursday): FIABCI Global Leadership Summit, Riyadh.

5 December (Tuesday): Taxcom Middle East, Riyadh.

5-6 December (Tuesday-Wednesday): Education Investment Saudi, Riyadh.

6 December (Wednesday): Book-building process for MBC institutional investors wraps up.

6-7 December (Wednesday- Thursday): Collection and Recovery Middle East Summit, Riyadh.

7 December (Thursday): Disney’s Lang Lang Musical Show, King Abdulaziz Center for World Culture, Riyadh

12 December (Tuesday): Announcement of the final MBC share price.

13-16 December (Wednesday-Saturday): The 6th International Arabian Horse Show, Riyadh.

16 December (Saturday): end of Noor Riyadh show, segment “The Bright Side of the Desert Moon, Riyadh.

18-20 December (Monday-Wednesday): Smart Grid Conference, Riyadh.

19-20 December (Tuesday- Wednesday): Saudi Airport Exhibition, Riyadh.

19-21 December (Tuesday-Thursday): International Digital Signage Expo 2023, Riyadh.

29 December (Friday): Turkish Super Cup, Awal Park Stadium, Riyadh.

2024

JANUARY

9-11 January (Tuesday-Thursday): Future Minerals Forum, Riyadh.

14-17 January (Sunday-Wednesday): The International Exhibition for construction and building materials (Saudi Projects), Jeddah.

28-31 January (Sunday-Wednesday): Saudi Franchise Expo 2024, Jeddah.

FEBRUARY

4-6 February (Sunday-Tuesday): SIMEC International Expo, Riyadh.

5-7 February (Monday-Wednesday): Saudi HORECA 2024, Jeddah.

12-14 February (Monday-Wednesday): The International Petroleum Technology Conference (IPTC), Riyadh.

22 February (Thursday): Founding Day (national holiday)

26-29 February (Monday-Thursday): Big 5 Construct Saudi, Riyadh.

26-29 February (Monday-Thursday): FM EXPO SAUDI, Riyadh.

26-29 February (Monday-Thursday): Stone and Service Saudi Arabia, Riyadh.

MARCH

2 March (Friday): end of Noor Riyadh show, segment “Refracted Identities, Shared Futures”, Riyadh.

4-6 March (Monday-Wednesday): International Conference on Sand and Dust Storms in the Arabian Peninsula, Riyadh.

4-7 March (Monday-Thursday): LEAP 2024, Riyadh.

11 March (Monday): Flag Day (national holiday)

Signposted to happen sometime in March:

Ramadan

APRIL

Signposted to happen sometime in April:

Eid Al-Fitr (national holiday)

MAY

19-21 May (Sunday-Tuesday): Saudi Energy Convention, Riyadh.

21-23 May (Tuesday-Thursday): The Saudi Food Show, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

5 June (Wednesday): World Environment Day.

Signposted to happen sometime in June:

Eid Al-Adha (national holiday)

SEPTEMBER

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

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

DECEMBER

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

Signposted to happen sometime in 2024:

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