Saudi’s 2034 Fifa World Cup bid book is out

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Saudi releases bid book for 2034 Fifa World Cup with opener and final seen unfolding in Riyadh

Good morning, wonderful people, and happy THURSDAY to you all. We have a data-heavy kind of morning for you to see you into the weekend, with 2Q snapshots of the economy (in contraction overall, but the private sector is growing), the banking sector (holding strong), and government spending (the deficit has widened).

And: Can you it’s the first day of August? We have only 41.8% of the year left in which to make budget / hit our business goals / deliver whatever your “north star” for ‘24 might be.

THE BIG STORY here at home: Officials have released the Kingdom’s bid book (pdf) for the 2034 Fifa World Cup, highlighting 15 stadiums across five cities, from Riyadh to Al Khobar, Jeddah, Abha, and Neom. The opening and final matches will be played in the capital city, Saudi Football Federation (SAFF) President Yasser Al-Misehal said.

Among the plan’s highlights: The 46k Neom stadium, which is “designed to stand out among the world’s most iconic landmarks.” Eight of the 15 tournament stadiums with 45k seats will be in Riyadh, the book says. Four of the 15 are existing facilities that will get extensive upgrades, including King Saud University Stadium, King Abdullah Sports City Stadium, King Khalid University Stadium and King Fahad Sports City Stadium.

A total of eight stadiums are still on the drawing board, among them the 92k-seat King Salman Stadium we noted earlier this week, which will be home to the World Cup final.

Ten cities will be home to 134 training facilities for participating teams, suggesting a big post-cup boom for domestic sports clubs could be in the offing.

The pitch: “Should Saudi Arabia be awarded the FIFA World Cup 2034, the competition would serve as a unique opportunity to celebrate the country’s commitment to environmental sustainability and human rights alongside its passion for football.”

BACKGROUND- Saudi is the sole bidder for the 2034 World Cup after Australia backed out. Fifa said last October it would accept bids only from countries in Asia and Oceania.

HAPPENING TODAY-

Opec+’s joint ministerial monitoring committee is expected to leave its oil output policy unchanged when it meets today, despite recent steep drops in oil prices, Reuters reported, citing five unnamed sources from the group. Last week, the newswire reported separately that the meeting would be a “pulse check” for the market after the oil cartel agreed to an extension of cuts at its last meeting in June.

REMEMBER- In its June meeting, the cartel left in place current production cuts of 3.66 mn barrels per day (bbl / d) until the end of this September, before beginning to phase out the cuts of 2.2 mn bbl / d over the course of a year from October 2024 to September 2025.

WATCH THIS SPACE-

#1- Jeddah’s Talal Attieh is getting ink in the Wall Street Journal after his New York-based Steel Atlas venture capital firm raised its maiden USD 10 mn fund. It will “match US and European startups with funders and deployment opportunities in Saudi Arabia,” the report says. The firm’s existing portfolio is heavy on climate-tech and industrial companies.

Among the LPs writing tickets: Entrepreneur Christian Angermayer’s private investment firm, Aperion; a fund of Tetra Pak’s Magnus Rausing; and investors with a focus on Saudi Arabia, per the Journal.

In the investment pipeline: “Developments in the nuclear and supply chain space” that Porter says the firm will announce “in the near future.”

Attieh is from the family that owns Attieh Steel. His personal track record includes investments in Flexport, Project44, General Fusion, and Alice Technologies. He ran the the venture arm of a multi-bn USD investment advisory firm in Los Angeles before founding Steel Atlas with Cameron Porter.

#2- JBS will open this fall a chicken nugget plant in Jeddah, the company said in a statement. Brazil’s JBS, a longtime investor in Saudi and one of the world’s largest meat processors, met with Industry and Mining Minister Bandar Al Khorayef during the minister’s tour of Brazil and Chile over the past two weeks.

What we know: The USD 50 mn plant will open in November and create some 500 jobs when it reaches full production capacity. It will ultimately quadruple JBS’ production capacity in the Kingdom. The company’s recently opened Dammam poultry plant employs 250 people and produces c. 10k tons of chicken meat each year. JBS also has eight distribution centers across the nation.

#3- M&A WATCH- Spanish telecom player Telefonica — in which STC owns a 9.9% stake — is looking to sell its Colombian unit Coltel for USD 400 mn, Bloomberg reports. Telefonica is planning to offload Coltel to Millicom International, according to the business information service. It has also created a joint fiber-optic broadband operator in its home country with smaller rival Vodafone Spain.

REMEMBER-Stc’s acquisition of a stake in Telefonica prompted the Spanish government to embark on a plan to increase its stake in the telecom operator to 10% to ensure stc doesn’t become Telefonica’s single largest shareholder.

CAPITAL MARKETS-

Ashmore gets regulatory nod to list Shariah-complaint fund: Ashmore Investment Saudi Arabia, the Saudi arm of UK’s Ashmore Group, has received the green light from the Capital Market Authority for the public listing of its Sharia-compliant equity fund, according to a statement from the authority.

What’s Ashmore? The London-based investment management firm has a focus on emerging markets and has USD 49.5 bn in assets under management, according to its website.

TRADE TALKS-

Turkey wants to finalize trade talks with the GCC trade by the end of the year, the Turkish Trade Ministry was quoted as saying by Reuters. Talks earlier this week saw the two sides discuss goods trade, rules of origin, contracting, tourism and health, as well as services trade and steps to boost investments.

The next in-person meeting will be in Riyadh: “The sides have agreed to continue the talks through online meetings and to meet in Riyadh in the second half of the year for a second round of negotiations,” the Turkish ministry said.

BACKGROUND- The GCC embarked on talks with Turkey for a trade agreement earlier this week, headed by Saudi Arabia, after agreeing in March to initiate trade liberalization talks.

OLYMPICS-

Saudi Olympic swimmer Zaid Al Sarraj secured the first spot in the third heat of the 100-meter race, with a time of 51.21 seconds, according to the state news Agency (SPA). The 16-year-old still fell short of qualifying for the semi-finals, having ranked 53rd out of 79 swimmers. This was Al Sarraj’s first appearance at the Olympics.

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THE BIG STORY ABROAD-

The US Federal Reserve’s signal that it plans to cut interest rates in September is leading most front pages of the business press, as more earnings and escalations in regional tensions dominate others.

#1- The Fed held rates steady following its two-day meeting, in line with expectations, but Chair Jerome Powell set the stage for a September rate cut, saying it is on the table if inflation continues its downward trajectory and growth remains strong. (Reuters)

ALSO- Japan’s central bank hiked rates for the second time this year, in a bid to boost its currency and ease prices of imports. (CNBC)

The Bank of England will meet later today, capping a big week for rate-watchers. The expectation is that it will go for a quarter-point cut to 5%.

#2- Facebook parent Meta beat revenue expectations on the back of robust digital ad sales, which it said will help cover the rising costs of AI — flipping the script after Microsoft and Alphabet’s earnings and capital expenditure projections raised concerns around the commercial viability of AI.

IN OTHER BUSINESS NEWS- Boeing named aerospace veteran Kelly Ortberg as its new CEO as it looks to rebound from a series of losses and high-profile scandals amid an ongoing quality crisis. (Reuters)

MEANWHILE- The region is holding its breath following the killing of Hamas’ top political leader, Ismail Haniyeh, in Iran early yesterday morning, with fears that it will jeopardize ongoing ceasefire negotiations and spark retaliation from Hamas. (Reuters)

OLYMPICS-

We’re nearing the halfway mark of Olympics 2024, with day six of the competition seeing Simone Biles look to clinch her gold medal for the women’s all-around final; the athletics program kicks off; and four more swimming finals.

Highlights from yesterday: Novak Djokovic and Carlos Alcaraz have each made it through to the quarter-finals in the men’s singles, potentially setting themselves up for a golden showdown, while Rafael Nadal is out of the competition after losing alongside Alcaraz in the men’s doubles yesterday. In swimming: The US’ Katie Ledecky brought home another gold for the 1.5k meters freestyle; while French Leon Marchand brought home two golds, putting France second to the top on the medals table.

The medal standings now at the Paris Olympics:

China (9 gold, 19 overall)
France (8 gold, 26 overall)
Japan (8 gold, 15 overall)
Australia (7 gold, 16 overall)
Great Britain (6 gold, 17 overall)

Want to see when your favorite sport is on? Check out the official schedule here.

CIRCLE YOUR CALENDAR-

The Crawford vs Madrimov boxing showdown will take place on Saturday, 3 August at the Los Angeles BMO Stadium. The event is the highlight of the Los Angeles Riyadh Season Card which features five other bouts. You can check them out here.

Aramco is set to release its 1H 2024 results on Tuesday, 6 August, according to its website. You can tune into the audio webcast of its earnings call here. The oil giant’s net income dipped a bit more than 14% in 1Q 2024 to SAR 102.3 bn.

Small and medium enterprises regulator Monsha’at will hold a franchise tour of five cities on 12-13 August (Monday and Tuesday). The tour, which starts in Khobar and includes stops in Abha, Qassim, Hail and Jeddah, will showcase success stories in the sector. The tour then picks up with seven stops scheduled for an installment next year.

Cybersecurity training event SANS Riyadh Cyber Leaders August 2024 will run from Sunday, 18 August to Thursday, 22 August at the Hyatt Regency Riyadh Olaya.

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 Middle East LPG Expo – Saudi Arabia 2024 will open on Tuesday, 10 September, bringing together upwards of 4k liquified petroleum gas (LPG) experts to discuss the future of the fuel gas in clean energy. Saudi accounts for 50% of demand for LPF in the Middle East and Africa.

The TotalEnergies CAF Super Cup Final 2024 between Egyptian rivals Al Ahly and Zamalek will be held in Riyadh on Friday, 27 September. The venue and kick-off time of the match will be announced at a later date.

This year’s edition of security-focused expo Intersec Saudi Arabia will run from Tuesday, 1 October to Thursday, 3 October at the Riyadh International Convention and Exhibition Center.

International food and beverage expo InFlavour is returning to Riyadh on Tuesday, 1 October. The three-day event — which will be organized in collaboration with the Environment, Water and Agriculture Minister, Tahaluf, Pepsico, Al Rabie, Arasco and Nadec — will take place in Riyadh’s Front Exhibition and Conference Center.

Saudi GDP shrinks for a fourth consecutive quarter, albeit at a slower pace

Saudi GDP dipped 0.4% y-o-y in 2Q 2024, marking the fourth consecutive quarter of contraction, according to preliminary figures from state statistics agency Gastat (pdf. The second quarter saw the slowest rate of contraction in the series. The downturn came on the back of lower oil activity, which recorded an 8.5% y-o-y decline. Oil activity accounts for c.40% of GDP and about 75% of government revenues. Bloomberg also had the story.

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Non-oil activity was up 4.4% y-o-y and government activity was also up 3.6% y-o-y during the quarter.

REMEMBER- The Kingdom cut oil production by 500k barrels per day in April 2023 in a bid to arrest falling oil prices. That figure became a 1 mn bpd voluntary cut by June. Though originally seen ending in December 2023, the government extended the 1 mn bpd cut through 1Q 2024 and now seems poised to continue it through June 2024, maintaining production at 9 mn bpd.

Compared to 1Q: GDP climbed 1.4% compared to the previous quarter, with growth buoyed by government activity — which rose 3.2% q-o-q — and non-oil activity (up 1.4% q-o-q). Oil activity was also up 1.3% compared to the previous quarter.

Saudi records budget deficit in 2Q 2024

The state budget closed with a SAR 15.3 bn deficit in 2Q 2024, widening from SAR 12.4 bn in the previous quarter, according to the Finance Ministry’s quarterly budget performance report (pdf). Total government revenues grew 12% y-o-y to SAR 353.6 bn during the quarter, driven by an 18% increase in oil revenues and 4% in non-oil revenues.

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On a 1H basis: The Kingdom recorded a budget deficit of SAR 27.7 bn in 1H 2024, with expenditures coming in at SAR 674.8 bn and total government revenues closing at SAR 647 bn in the first half of the year. Public debt stood at SAR 1.15 tn during the six-month period, split into SAR 680.3 bn domestically and SAR 468.9 bn externally.

BACKGROUND- It’s the name of the game: Policymakers have accepted small deficits as the price of continuing to invest in 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,” Finance Minister Mohamed Al Jadaan said in December during the FY 2024 budget forecast. He signaled the treasury will continue to run deficits to support the “government’s strategic expansionary spending” even as it paced out some components of select gigaprojects. Some officials have taken to calling gigaprojects modular and Neom has gone on a drive to underscore to contractors and bankers that everything is on track.

THE BREAKDOWN-

Total expenditures for 2Q 2024 rose 15% y-o-y to reach SAR 368.9 bn, with most sectors seeing considerable growth in public spending aside from grants, which fell 50%. Subsidies saw the biggest increase at 68% y-o-y to SAR 13 bn. Employee compensation accounted for the lion’s share of public spending at SAR 139.8 bn.

The Kingdom’s top expenditures in 1H: Money spent on employee compensation clocked in at SAR 139.8 bn — the largest line item during the period — followed by goods and services usage at SAR 75.6 bn and non-financial assets (Capex) at SAR 64.9 bn. Total expenditure rose 12% y-o-y to SAR 674.8 bn in the first half of this year.

Where the Saudi banking sector stood at the end of 2Q 2024

Bank credit across all segments of the market rose 11.4% y-o-y to SAR 2.8 tn in 2Q 2024, according to EnterpriseAM Saudi calculations based on the latest Sama monthly statistical bulletin (pdf).

The segments leading the charge: Personal loans accounted for almost 47% of all credit handed out by local banks in 2Q and grew 7% y-o-y to SAR 1.3 tn. Corporate credit to the real estate sector rose 26.1% y-o-y to SAR 286.3 bn in 2Q, borrowing by the wholesale and retail sector climbed 8.4% y-o-y to SAR 195.9 bn. Manufacturers were extended SAR 175.2 bn in credit, up 1.2% y-o-y.

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Mortgage finance: New residential mortgages financed by banks in 2Q rose 8.3% y-o-y to SAR 18.3 bn. Mortgage financing for houses was up 4.4% y-o-y to SAR 12.2 bn, while that of apartments grew 22.4% to SAR 5.2 bn, and land mortgages fell 5.2% y-o-y to SAR 942 mn in 2Q 2024.

Consumer loans saw little change at SAR 452 bn in 2Q 2024, inching up 1.9% from the same quarter last year. Car loans accounted for the lion’s share at SAR 11.8 bn, followed by home improvement at SAR 10.1 bn, furniture and durable goods (SAR 8 bn), education (SAR 8 bn), tourism (SAR 991 mn), and healthcare at (SAR 493 mn).

Total credit card loans rose 20.6% y-o-y to SAR 30 bn in 2Q.

Commercial banks in Saudi saw their cumulative net income reach SAR 42.4 for 1H 2024, up from SAR 38.1 bn in 1H 2023. Net income in the sector grew 104.3% on a quarterly basis from SAR 20 bn in the preceding quarter. Also, total assets owned by commercial banks in 2Q 2024 increased by 10.2% amounting to SAR 4.2 tn, while total liabilities grew 2.6% to SAR 4.2 tn over the same period.

Bank lending to the private sector in 2Q 2024 increased by SAR 273.5 bn y-o-y to SAR 2.7 tn, while total bank credit grew by SAR 255 bn to SAR 2.6 tn over the same period.

Saudi’s international reserve assets recorded SAR 1.8 tn in June, growing 5.5% y-o-y to their highest level in 19 months, according to the data. The bulk of the assets (95%) are international currency holdings — which includes currency and deposits abroad as well as investments in foreign securities — amounting to SAR 1.7 tn. Special drawing rights, the IMF’s reserve position, and monetary gold follow.

Roshn Group is adding another two stadiums to Riyadh’s roster

PIF-owned real estate player Roshn Group is developing two new stadiums in Riyadh and Khobar, according to two separate statements (here and here). No details on the investment ticket on either stadium were provided.

One for Riyadh: In Riyadh, Roshn will develop a 45k-seat stadium spanning 450k sqm, with the project set to include a range of mixed-use spaces, including restaurants, shops, lodging venues, and additional sports facilities. The new stadium will include features meant to improve sustainability, including integrated solar panels, a roof design boosting natural ventilation and sunlight, and advanced water management tech, the release said.

And one for Khobar: Roshn will develop a separate multifunctional 47k-seat stadium with Saudi Aramco, named Aramco Stadium, in Khobar, which will “cater to both entertainment and sports activities.” The stadium is expected to be constructed and operational in 2026 “and will host both national and international events, including the 2027 AFC Asian Cup that will take place in Saudi Arabia in January of that year,” according to the statement.

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The Kingdom has been on a stadium buildout drive: As Saudi looks to bid to host the 2034 World Cup, the country has been developing several new stadiums over the past few weeks. These include a new flagship 92k-seater King Salman for Riyadh announced earlier this week, a 45k-seat Mohammed bin Salman Stadium in Qiddiya, and the 45k-seat New Murabba Stadium in Riyadh. Saudi is now the sole bidder for hosting the 2034 FIFA tournament, after Australia pulled out of the running late last fall. The Kingdom is set to submit its letter of intent to FIFA later this year at a ceremony in Paris, with results expected in December.

BinDawood completes Jumeirah Trading takeover

BinDawood has closed its SAR 186.5 mn acquisition of Jumeirah Trading, it said in a disclosure to Tadawul yesterday. The Tadawul-listed holding company now holds 100% of Jumeirah as it looks to expand its distribution reach, reduce supply chain risk, and improve margins through vertical integration.

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BACKGROUND- BinDawood lined up a no-objection decision from the General Authority for Competition last month, after the takeover was approved by its BoD back in May.

What’s Jumeirah? It is engaged in the wholesale, retail and distribution of food, household products, toys, and luggage across Saudi. Its net income nearly doubled y-o-y in 2023 to report SAR 22.2 mn, while its revenues were up 28.7% y-o-y last year to SAR 142.9 mn.

Awqaf Authority can now invest funds from real estate

The Awqaf Authority now has the authority to invest any funds from real estate assets placed under its control after being seized or stalled, according to the state news agency (SPA). The statement does not provide any further information on the decision or the value of the funds at the authority’s disposal.

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The Council of Ministers also signed off on a raft of agreements, including:

A headquarters agreement with UN Habitat;
A tourism cooperation MoU with Tunisia;
A cooperation memorandum between the Small and Medium Enterprises General Authority (Monsha’at) and Jordan’s Enterprise Development Corporation;
An MoU on increasing investments with Costa Rica; and
An MoU on economic and planning cooperation with Bahrain.

Bupa Arabia Cooperative, SPPC, Saudia Dairy, Nahdi Medical, and Makkah Construction report 2Q 2024 earnings

BUPA ARABIA COOPERATIVE INS.-

Bupa Arabia for Cooperative Ins.’ net income rose 9% y-o-y to SAR 404.6 mn in 2Q 2024, according to a disclosure to Tadawul. Revenues for the quarter were up 17.4% y-o-y to SAR 4.6 bn, boosted by growth in the number of beneficiaries and better returns from investments. These gains were partially offset by higher operating expenses needed to support growth, as well as a downtick in other revenue streams.

On a 1H basis: Net income was up 22% y-o-y to SAR 675.8 mn in 1H 2024, while revenues increased 17% y-o-y to SAR 8.9 bn.

DIVIDENDS- The company’s general assembly approved the distribution of SAR 600 mn in dividends at SAR 4 per share for FY 2023, according to a separate disclosure on Tadawul. The general assembly also signed off on buying back 860k shares for the company’s employee stock ownership program, financed through its own resources.

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SAUDI PRINTING AND PACKAGING COMPANY-

Saudi Printing and Packaging (SPPC) reported deeper losses in 2Q 2024, growing to SAR 71.1 mn from SAR 20.1 mn in 2023, on the back of a SAR 30.5 mn writedown in printing sector assets and lower revenues in printing and packaging segments, SPPC said in a disclosure to Tadawul. Revenues fell 9.1% y-o-y to SAR 174.5 mn as falling raw material prices stunted selling prices for the packaging sector, and the company did not secure planned printing projects. SPPC’s 1H 2024 net losses hit SAR 93.7 mn, widening from SAR 34.5 mn in 1H 2023, while revenues fell 10.3% y-o-y to SAR 361.4 mn, the disclosure read.

Parent company SRMG has been taking hits on the back of SPPC’s losses: Saudi Research Media Group (SRMG) — which owns 70% of SPPC — saw its net income drop 14% y-o-y to SAR 560 mn in FY 2023 due to losses incurred by SPPC. The company announced in May that it would move to restructure 26 wholly-owned subsidiaries via voluntary liquidation, deregistration, or turning them into branches, in a bid to streamline operations.

SAUDIA DAIRY AND FOODSTUFF-

Saudia Dairy and Foodstuff (SADAFCO) saw its net income rise 18.7% y-o-y to SAR 127.8 mn in 2Q 2024, on the back of double-digit growth in e-commerce, exports, and out of home segments, as well as better margins thanks to lower raw materials prices, the company said in a disclosure to Tadawul. Revenues were up 6.3% to SAR 722.2 mn during the period. On a 1H basis, SADAFCO reported a 28.7% y-o-y increase in net income to SAR 254 mn, while its top line saw a 6.9% y-o-y uptick to SAR 1.4 bn.

NAHDI MEDICAL-

Nahdi Medical’s net income fell 6.5% y-o-y to SAR 247.7 mn in 2Q 2024, despite revenues rising 10.8% y-o-y to SAR 2.5 bn, according to an earnings release (pdf). Net income also dropped 5.6% y-o-y to SAR 480.7 mn for 1H 2024, while revenues saw a 9.1% uptick to SAR 4.7 bn.

Why the numbers moved the way they did: The company attributed the fall in net income to outlays for strategic investments, including new openings, a drive to step up it healthcare business, expansion in the UAE, and boosts to digitalization as it looks to support sales growth, according to a disclosure to Tadawul. Revenue growth was supported by strong retail sector performance, ongoing pharma growth, and investments into front shop categories, with healthcare and UAE businesses seeing revenues more than doubling, the disclosure said.

DIVIDENDS- Nahdi’s board approved the distribution of SAR 325 mn in dividends at SAR 2.5 per share for 1H 2024, it said in a separate disclosure to the Exchange. The distribution date is set for Sunday, 25 August 2024.

MAKKAH CONSTRUCTION AND DEVELOPMENT-

Makkah Construction and Development logged SAR 143 mn in net income in 2Q 2024, up 16.3% y-o-y, with the uptick attributed to stronger revenues, it said in a disclosure to Tadawul. Revenues for the second quarter were up 68.3% y-o-y to SAR 350 mn, on the back of a SAR 134 mn boost from Hajj services and a seasonal hike in hotel earnings in Makkah due to Hajj.

On a 1H basis: The construction company’s net income increased 36.9% y-o-y to SAR 256 mn in 1H 2024, with revenues up 54% at SAR 536 mn. Earnings on a murabaha deposit, a surge in commercial mall rental proceeds, and better returns from hotels contributed to the bottom line growth, the disclosure added.

PIF’s strategy + performance management system lands performance excellence accolade

The Public Investment Fund’s (PIF) Strategy and Performance Management System earned the KPI Institute’s highest level of accreditation, according to a press release. The system was granted a Level 5: Optimized accreditation, along with the Performance Excellence Award from the KPI Institute.

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Naqi Water to procure new production line for Jazan factory

MANUFACTURING-

Naqi Water secures a production line for its new Jazan factory: Bottled water company Naqi Water signed a SAR 20.1 mn contract with the Middle East Factory for Machines (MECO) to procure a production line for its new factory in Jazan, according to a disclosure to Tadawul. The line — whose annual production capacity is 350 mn bottles — will be self-funded by Naqi.

REMEMBER- Naqi signed a 20-year land lease contract in May to build its factory in Jazan Industrial City.

AVIATION-

Privately-owned Bangladeshi carrier US-Bangla Airlines will operate a daily flight between Dhaka and Jeddah starting today, after receiving the go-ahead from the Saudi General Authority of Civil Aviation, state news agency SPA reports.

PHARMA-

Spimaco to locally manufacture + distribute drug for macular degeneration: Saudi Pharma Industries (Spimaco) will locally manufacture and distribute ALT-L9 — a drug used for treating wet age-related macular degeneration, an eye disorder that can cause blurred vision — under a 10-year agreement with South Korean biopharma company Altos Biologics, according to a disclosure to Tadawul. The agreement gives Spimaco exclusive distributor rights.

The contract was valued at 2.51% of Spimaco’s revenues in 2023, which is around SAR 41.5k, based on our math.

IN CONTEXT- Altos Biologics, the eye disease-focused subsidiary of Alteogen, filed a marketing authorization application to the European Medicines Agency for the Alteogen-developed ALT-L9 last month.

DEBT WATCH-

Qomel renews credit facility with SNB: Tadawul-listed pharma player Qomel has renewed a Shariah-compliant credit facility worth SAR 67.6 mn with Saudi National Bank (SNB), it said in a disclosure to Tadawul. The new facility will run for one year, read the disclosure.

Saudi and the UAE lead EY’s regional M&A league table

Saudi Arabia and the UAE were the top inbound M&A destinations in the GCC in 1H 2024, accounting for 152 inbound transactions at a disclosed value of USD 9.8 bn, according to the the latest EY MENA M&A Insights report. The GCC giants were also leading bidders, as sovereign wealth funds including the Public Investment Fund and the UAE’s Abu Dhabi Investment Authority (ADIA) and Mubadala doubled down on economic diversification plans.

Overall: The M&A count inched up 1% y-o-y at 321 transactions in the first half, while aggregate transaction value rose 12% to USD 49.2 bn, the report showed.

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Saudi was home to the highest number of inbound M&As and was also the most-frequent bidder during the period.

The UAE was responsible for the largest transaction, with Mubadala’s USD 12.4 bn acquisition of Truist Ins. topping the list. Mubadala and ADIA were together responsible for the second-largest M&A transaction as the pair put down USD 8.3 bn for the Chinese mall unit of Dalian Wanda in April.

Saudi and Emirati countries have appetite — for each other: The first half of 2024 saw 94 transactions involving UAE companies on one side and the Kingdom on the other, accounting for 61% of intra-regional dealflow. Intra-regional transactions were worth c. USD 6.4 bn during the period, up 13% compared to the first half of 2023.

Inter-regional M&A activity accounted for 166 (52%) of 321 total transactions. Inter-regional activity also accounted for the lion’s share (87%) of transaction value at USD 42.8 bn, a 15% y-o-y increase.

GCC-based investors preferred the US as a destination for outbound M&A, closing 19 transactions Stateside worth some USD 16.6 bn. Europe accounted for 80% of inbound activity by volume, but companies in the United States were responsible for 98% by total value in USD terms.

MARKETS THIS MORNING-

The Nikkei tumbled more than 3% at the opening bell and is holding steady there after the Bank of Japan yesterday raised its interest rate target to 0.25%, the highest level since 2007, on the eve of the global financial crisis.

Markets are otherwise mixed. The ASX 200 and the Kospi are in the green this morning, as is the Shanghai Composite, while the Hang Seng is down 0.3%.

European equities futures are mixed this morning, but punts on major Wall Street benchmarks were all up slightly in overnight trading as investors welcomed the Fed’s signal yesterday that it is essentially on track to start cutting interest rates in September.

TASI	12,110	+0.4% (YTD: +1.2%)
MSCI Tadawul 30	1,520	+0.6% (YTD: -2.7%)
NomuC	26,651	-0.1% (YTD: +8.8%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	6.5% repo	5.5% reverse repo
EGX30	29,379	+1.2% (YTD: +18.0%)
ADX	9,339	-0.6% (YTD: -2.5%)
DFM	4,268	-0.4% (YTD: +5.1%)
S&P 500	5,522	+1.6% (YTD: +15.8%)
FTSE 100	8,368	+1.1% (YTD: +8.2%)
Euro Stoxx 50	4,873	+0.7% (YTD: +7.8%)
Brent crude	USD 80.72	+2.7%
Natural gas (Nymex)	USD 2.04	+0.3%
Gold	USD 2,492	+0.8%
BTC	USD 64,740	-2.4% (YTD: +52.9%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.4% yesterday on turnover of SAR 6.4 bn. The index is up 1.2% YTD.

In the green: Arabian Pipes (+8.1%), Saudia Dairy and Foodstuffs (+4.8%) and Makkah Construction and Development (+4.3%).

In the red: Al Baha Investment and Development (-7.7%), Al Taiseer Group (-6.7%) and Arabian Cement (-4.8%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.1% yesterday on turnover of SAR 46.8 mn. The index is up 8.8% YTD.

In the green: Mohammed Hadi Al Rasheed and Partners (+19.0%), Alqemam for Computer Systems (+7.5%) and Neft Alsharq (+6.0%).

In the red: Mayar Holding (-13.4%), Ghida Alsultan for Fast Food (-9.9%) and Mulkia Investment (-9.8%)

CORPORATE ACTIONS-

Alkhabeer Capital will distribute SAR 14.8 mn in dividends for 2Q 2024 at SAR 0.1 apiece, it said in a disclosure to Tadawul. Distributions will be made within 40 business days after the entitlement date, set for Tuesday, 13 August.

Middle East Pharma Industries will distribute SAR 15 mn in dividends for 1H 2024, at SAR 0.75 per share, it said in a disclosure to Tadawul. The payments are scheduled for Sunday, 15 September.

Al Jouf Cement scrapped its previous recommendation to hike its capital through priority rights shares, it said in a disclosure to Tadawul. This decision follows improvements in financial flows due to loan rescheduling with Alinma Bank and SAB, boosted sales, and cost-cutting measures. The initial plan aimed to settle debts and distribute profits to shareholders.

Tadawul-listed Arriyadh Development will distribute SAR 44.4 mn in dividends at SAR 0.25 per share for 1H 2024, it said in a disclosure to Tadawul. Distribution is set for Thursday, 19 September.

Al Rajhi Capital will distribute SAR 35.8 mn in dividends to all unitholders of its Al Rajhi REIT Fund for 2Q 2024, it said in a disclosure to Tadawul. Unitholders will receive the dividends on Thursday, 29 August.

Savola Group has landed regulatory approval for a SAR 6 bn capital hike, according to a statement from the Capital Market Authority.

CALENDAR

JULY

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

AUGUST

3 August (Saturday): Riyadh Season Card featuring Terence Crawford vs. Israil Madrimov, Los Angeles BMO Stadium.

4 August (Sunday): Last day to apply to the Digital Government Authority (DGA) awards.

12-13 August (Monday-Tuesday): Monshaat Franchise Tour, Al-Khobar.

12-15 August (Monday-Thursday): The Saudi Food Expo, Riyadh.

18 August (Sunday): New academic year begins.

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

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.

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).

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

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

OCTOBER

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

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

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.

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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