S&P Global gives its two cents on the Kingdom’s economy

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Russian-Ukrainian talks return to Jeddah on Sunday + Egypt’s Madinet Masr plans GCC expansion

Good morning. We wrap up the workweek as Ramadan is entering the last ten days, with a brisk issue that is heavy on news from mining and debt markets.

In this morning’s news well: S&P Global’s two cents on Saudi’s economy, the latest sukuk issuance from the Finance Ministry, and Emaar, the Economic City renews an SAR 1 bn loan with the PIF. We also have a flurry of earnings from Sipchem, Petro Rabigh, and others. Let’s dive in.

HAPPENING TODAY-

#1- Pakistani PM Shehbaz Sharif is in town after arriving in Jeddah yesterday for a four-day visit that is set to conclude this Saturday, 22 March, according to state media agency SPA. Sharif is scheduled to meet with Crown Prince Mohammed bin Salman during his trip and is looking to discuss bilateral relations, economic cooperation, and investment ties between Saudi Arabia and Pakistan, according to Samaa News. Sharif is also expected to discuss Gaza, the Middle East, and broader “issues concerning the Muslim world.”

#2- Saudi Arabia and China will face off today at 9:15pm in their 2026 World Cup qualifier at Al Awwal Park in Riyadh. The Green Falcons are just one point shy from a direct qualification spot, leveling on points with Indonesia, Bahrain, and China in Group C.

WEATHER- Thunderstorms continue across Riyadh. Makkah, and Madinah today.

Riyadh: 34°C daytime / 21°C overnight
Makkah: 34°C daytime / 26°C overnight
Madinah: 34°C daytime / 20°C overnight

HAPPENING NEXT WEEK-

Talks on a Russia-Ukraine ceasefire will return to Jeddah on Sunday, US Special Envoy to the Middle East Steve Wittkoff told Fox News in an interview (watch, runtime: 6:18), following US President Donald Trump’s phone call with Russia’s Vladimir Putin.

What came out of it? Witkoff said Putin agreed to a US-backed proposal — which includes a 30-day ceasefire covering energy, infrastructure, and targets in the Black Sea — and is hopeful it will bring the Ukrainians on board. This initial compromise, Washington hopes, will lead to a broader agreement.

MEANWHILE- The meeting will also cover shipping safety, and involve military personnel as well as experts in port and civil infrastructure, Interfax reported, citing a press conference by Ukrainian President Volodymyr Zelensky at the Presidential Palace in Helsinki.

IN CONTEXT- The Kingdom hosted talks between top US and Ukrainian officials in Riyadh earlier this month, after which Washington resumed military aid to Kyiv in exchange for agreeing to a 30-day ceasefire.

PSAs-

Schools will be off on 20-21 April in Jeddah, Makkah, and Taif as Formula 1 takes over the streets for the Saudi Arabian Grand Prix, which runs between 18-20 April, according to S audi Gazette.

WATCH THIS SPACE-

Egyptian real estate developer Madinet Masr is in talks with potential partners in Saudi Arabia and the UAE for its planned GCC expansion, CEO Abdallah Sallam told Zawya. Sallam didn’t name the companies involved in the talks or share a concrete timeframe for the developer’s first foray outside Egypt.

First stop is likely Riyadh, Sallam said, adding that “we are talking with three to four companies in Saudi Arabia…some of them have their own lands.”

PLUS- Egyptian investment bank Zilla Capital is looking into launching specialized funds in Saudi Arabia, including a pre-IPO fund, with USD 300 mn target capital over five years to invest in two to three companies annually, Managing Partner Marwan Younes told Zawya. Zilla has had its sight set on the Kingdom for some time now, with its chairman unveiling plans to launch its first project in KSA — an asset management company — back in September.

PIF-backed ultra-luxury hotel operator Aman Group is planning to raise up to USD 2 bn to expand in the Middle East and Africa, including 23 hotel projects and expanding Aman Residences, CEO Vladislav Doronin told Bloomberg. The company is in late-stage talks with bankers to structure the fundraising, targeting institutional and high net-worth investors, with completion expected by early 2026.

There’s lots in the pipeline: The company is pursuing a Middle East and Africa property expansion for Aman, including its Janu hotel line catering to younger travelers. The company is developing three Janu properties in the region, including hotels in historic Saudi locations in AlUla and Diriyah, and has sold around half of the three dozen mansions under construction in Riyadh’s Diriyah district for USD 35-39 mn each, Doronin added.

Background: Aman Group raised USD 900 mn from the Public Investment Fund and Cain International in 2022, which valued the company at USD 3 bn.

EY sees Saudi projects contributing to the “resilience of GCC banks” this year: The “implementation of economic transformation projects in the Kingdom” will underpin the overall resilience of GCC banks in 2025, EY said in a press release. The Kingdom’s planned megaprojects are also expected to “play a role in creating enormous business and lending opportunities for banks this year,” the statement reads.

The rationale: EY sees GCC banks continuing to “benefit from strong capital levels” in 2025, with credit growth set to be driven by a strong project pipeline “with aggregate contract awards driven by infrastructure development, especially in [Saudi] and the UAE.”

IN CONTEXT- Moody’s projected that Saudi banks’ credit will rise on the back of a heightened push for funding megaprojects, coupled with a growing appetite for homeownership. The agency sees the government’s wide-reaching economic transformation plans as providing ample business and lending prospects for the domestic banking sector.

DATA POINTS-

Consumer spending via point-of-sale (PoS) transactions in the Kingdom went up 4.0% w-o-w in the week ending Saturday, 15 March to c. SAR 13.6 bn, according to the Saudi Central Bank’s report (pdf). The number of weekly transactions also rose by 4.1% w-o-w to 193.1 mn.

The details: PoS transactions on jewelry saw the largest increase in terms of value, growing 31.1% w-o-w to SAR 419.2 mn, followed by clothing and footwear, whose value rose 22.8% to SAR 1.5 bn. Hotels came in a close third, with the value of transactions increasing 19.1% w-o-w to SAR 352.7 mn. In terms of volume, jewelry recorded the biggest hike during the week at 29.5%.

Riyadh once again had the highest value of PoS transactions at SAR 4.7 bn, followed by Jeddah at SAR 2.0 bn and Abha at SAR 142.8 mn.

OIL WATCH-

Saudi Aramco’s oil production costs in the Kingdom rose 11% y-o-y in 2024 to reach SAR 13.24 (USD 3.53) per barrel post-drilling, Aleqtisadiah reports, citing company data. The exploration and production sector’s capital expenditure per barrel of oil equivalent increased by 31% y-o-y to SAR 31.1 (USD 8.3). Aramco’s hydrocarbon production dropped 3% y-o-y to 12.4 mn barrels of oil equivalent per day last year, while liquid materials — including oil, LNG, and condensates — fell 4% y-o-y to 10.3 mn barrels per day.

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THE BIG STORY ABROAD-

Israel launched a limited ground operation in Gaza on Wednesday, with troops reoccupying areas outside population centers, the Israeli army said in a post on X. Troops have expanded their control over parts of the Netzarim Corridor, which runs east to west across the strip “in order to expand the security zone and to create a partial buffer between northern and southern Gaza.” Israeli Defense Minister Israel Katz issued a “final warning” just before the operation began, saying residents in battle zones would soon be evacuated again unless Hamas freed the remaining hostages and was removed from power.

The operation comes after Israel resumed strikes on Gaza earlier this week, killing hundreds of Palestinians and marking the deadliest day in the strip in over two months and the collapse of January’s ceasefire agreement. Hamas condemned the new ground operation as a “dangerous violation” of the ceasefire agreement. (Bloomberg | Reuters | BBC | New York Times)

AND- Fed keeps rates unchanged: The US Federal Reserve left interest rates unchanged on Wednesday, as policymakers grapple with heightened economic uncertainty amid the Trump administration’s tariff-heavy trade policies. We have the details in this morning’s Planet Finance. (Reuters | CNBC | Bloomberg | AP | BBC | CNN)

S&P Global Ratings gives its two cents on the Kingdom’s economy

S&P Global Ratings predicts a strong outing for Saudi Arabia’s economy in 2025, with analysts in the agency conducting a webinar —dubbed the Credit Outlook For Saudi Arabia — where they discussed S&P’s recent decision to upgrade Saudi Arabia's long-term foreign and local currency issuer credit rating to A+ from A with a stable outlook.

Refresher: S&P Global Ratings revised the Kingdom’s credit rating on the back of its progress in economic diversification, expansion of the non-oil sector to 70% of GDP, and development of the domestic capital market. S&P expects these factors to offset the risks associated with rising sovereign and external debt “to pursue Vision 2030 goals and debt servicing costs.”

“We expect strong non-oil growth momentum to continue, driven by government measures to spur investment and consumption. While we acknowledge the risks associated with lower oil revenue and rising government and external debt, we believe that the recalibration of infrastructure spending will maintain a strong sovereign balance sheet and external position,” S&P Global Ratings Head of Analytics Hina Shoeb said at the start of the webinar.

There are some weaknesses to the Kingdom’s credit, including:

Reliance on the oil sector — which, despite being on the decline, still exposes the fiscal and external positions to volatility in prices.
Higher fiscal deficits: S&P sees the budget deficit increasing to over 4.0% of GDP over 2025-2028, from about 1.0% in the past four years.
Rising external financing needs: The agency expects elevated levels of debt issuance across all the sectors to double external debt to GDP by 2028 compared to levels seen in 2022.

“We are expecting increasing oil production to have an impact on oil revenue, but this will be more than offset by the lower oil prices,” S&P’s Zahabia Gupta said during the webinar. “The government can manage this by reducing some of the capex spending they had in mind — and they are expecting spending to be lower this year than it was last year. However, we expect spending levels to be unchanged from last year, and we see it increasing slightly over the next few years as well, but we will be looking to see how the policy responses change as a result.” Gupta added.

FDI will rise — but it may not do so at the rate the gov’t is aiming for: S&P sees the Kingdom’s FDI numbers to “gradually pick up,” but there are also some constraints that authorities are trying to fix, Gupta said. “This includes issues on the regulatory framework, infrastructure, the rule of law, and payment culture. These issues create some hesitation for investors, but things are changing very quickly in the country. But still, it will stay below the levels that the government is expecting.”

Remember: The Kingdom is targeting USD 100 bn in foreign direct investment per year as part of Vision 2030, after averaging USD 17 bn per year between 2017-2022 and managing to bring in an estimated USD 19 bn in 2023.

Debt issuances could begin to slow down: “The total amount of debt issuances are going to moderate moving forward, because the fiscal headroom will also reduce gradually, and the authorities will be focused on not increasing their debt servicing costs,” Gupta said.

Remember: The Kingdom topped the GCC in terms of bond and sukuk issuances, raising USD 79.5 bn from 79 primary bond and sukuk issuances in 2024 — a 51.2% y-o-y increase from USD 52.5 bn in 2023. Saudi Arabia accounted for 53.7% of the GCC’s total primary issuances volume at USD 147.9 bn last year.

FinMin wraps up SAR 2.64 bn March sukuk issuance

The Finance Ministry closed its March sukuk issuance, raising SAR 2.64 bn from fixed-income investors, down from SAR 3 bn raised in February, according to a National Debt Management Center statement (pdf). This is part of the government’s SAR-denominated sukuk program.

March’s issuances shifted toward smaller tranches and slightly shorter maturities compared to February. Yields remained mostly steady across the board, with a slight uptick for longer-term debt.

The issuance was structured in four tranches:

A two-year tranche valued at SAR 364.2 mn with a 4.76% yield;
A four-year tranche valued at SAR 315.9 mn with a 4.82% yield;
A seven-year tranche valued at SAR 1.46 bn with a 4.85% yield;
A 14-year tranche valued at SAR 500 mn with a yield of 4.99%.

IN CONTEXT- The Kingdom’s borrowing plan for FY 2025 outlined a requirement for some SAR 139 bn in new public debt. The targeted amount is intended to bridge an anticipated SAR 101 bn budget deficit penciled in for the new fiscal year, in addition to covering some SAR 38 bn required to meet principals’ repayments for loans maturing during the period. The government expects the budget shortfall to come in at 2.3% of GDP in the current fiscal year and to “continue at similar levels over the medium term.”

Emaar, the Economic City renews SAR 1 bn loan from PIF

Emaar renews SAR 1 bn shareholder loan from PIF: Emaar, the Economic City (EEC) inked a binding amendment and restatement agreement with the Public Investment Fund (PIF) for a SAR 1 bn convertible shareholder loan to cover project costs, according to a disclosure to Tadawul. The PIF first granted the loan to EEC in February 2023, which the construction company fully drew down.

New expiry + terms: The loan will now expire in May 2026, with the repayment structured as a single bullet payment due in March 2027. As collateral, EEC pledged real estate valued at no less than SAR 1.5 bn, along with promissory notes securing both the principal and commission.

Tied by a conversion clause: The fund, which currently owns 25% of EEC, retains the right to convert outstanding loan balance into shares — but the move would be subject to regulatory and shareholder approvals.

All part of a capital optimization strategy: Last year, EEC transferred its SAR 2.9 bn loan from the Finance Ministry to the PIF as part of a broader capital optimization plan, granting the company a one-year grace period until June 2025. The restructuring also included a SAR 1.1 bn shareholder loan from PIF, with both loans set to be fully converted into equity, increasing PIF’s stake in EEC.

ALSO- EEC’s board proposed a 49.7% capital reduction last year to offset SAR 5.6 bn in accumulated losses in 1H 2024, followed by a SAR 3.9 bn capital increase to cover liabilities, while also working to reschedule SAR 3.8 bn in loans with major Saudi banks under a single term sheet.

Industry Ministry awards four exploration licenses for multi-mineral belts

The Industry and Mineral Resources Ministry awarded its maiden multi-mineral belt licenses for the Jabal Sayid and Al Hajar mineralized belts, according to a post on X from the ministry’s spokesperson. The awardees are expected to spend some SAR 366 mn over the next three years, while funneling SAR 22 mn into local communities.

The details: The tender saw 14 bids from several pre-qualified local and international companies. The concessions are expected to carry copper, zinc, gold, silver, and lead deposits over a 4.8 sq km total area.

The awardees:

A consortium of China’s Norin Mining and Aljan & Bros landed a license to explore the southern Al Hajar site, with a SAR 209 mn investment ticket, while committing SAR 11.2 mn for local development;
A consortium of ARTAR, Gold & Minerals Ltd., and Jacaranda pledged a SAR 62 mn for the exploration of the northern Al Hajar site, along with SAR 4.2 mn for local development;
India’s Vedanta landed a license for the 2.9 sq km Jabal Sayid 1, committing SAR 33 mn for exploration, plus SAR 3 mn for developing the local community;
A consortium of Aljan and China’s Zijin Mining won the exploration rights for Jabal Sayid 2, with a SAR 62 mn investment ticket, in addition for SAR 4 mn for local infrastructure.

REMEMBER- The ministry launched a SAR 685 mn incentive package last year as part of a joint effort with the Investment Ministry to expand the sector and tap reserves of gold, phosphate, and other minerals. The goal is to attract local and foreign mining investors as part of a push to become a global hub for metals critical for the energy transition and become an EV manufacturing hub.

Reuters also had the story.

Sipchem’s net income down 63.7% in 2024 + a flurry of full-year earnings

SIPCHEM-

SaharaInternational Petrochemical (Sipchem) saw its net income drop 63.7% y-o-y to SAR 426.1 mn in FY 2024, hit by higher feedstock and raw material costs, as well as lower gains from joint ventures and associates, it said in a disclosure to Tadawul. Revenues fell 7.3% y-o-y to SAR 7.1 bn during the same period, impacted by lower sales volumes and an 8% drop in product prices.

ALSO- The executive board opted to halt production at its Ethyl Acetate plant in Jubail Industrial City until further notice, according to a separate disclosure. Sipchem expects the move to strengthen its financial structure while other facilities compensate for paused operations.

Plant shutdowns affected Spichem in 4Q: Sipchem’s earnings in the fourth quarter were set back SAR 130 mn from the month-long shutdown of its Samapco plant, including SAR 30 mn in maintenance costs, CEO Abdullah Al Saadoon told AlArabiya.

Trade wars bode well for Sipchem? Al Saadoun remainsoptimistic about market recovery, pointing to rising product prices and an improving supply-demand balance. He expects newly tariff hikes between the US and the EU to have a positive impact on the company’s performance, enhancing Sipchem's competitiveness with US products in European markets, which represent 22% of the company’s total sales.

REMEMBER- The Khobar-based petrochemical firm is looking to double its production capacity over the next seven years as it grows offshore sales. Sipchem is eyeing new markets in Europe, India, South Asia, and the broader Middle East, CEO Abdullah Al Saadoon said back in July.

PETRO RABIGH-

Rabigh Refining and PetrochemicalCompany reported a net loss of SAR 4.5 bn in FY 2024, slightly narrowing from a SAR 4.7 bn loss in 2023, it said in a disclosure to Tadawul. Meanwhile, revenue dropped 11.8% to SAR 39.3 bn.

The bottom line for Aramco-Sumitomo Chemical JV remained in the red on the back of lower sales and product margins, in addition to unplanned facility shutdowns and increased feedstock costs, reads the disclosure.

REMEMBER- Petro Rabigh cleared its books with Aramco and Sumitomo last January when the two companies bailed their JV from two revolving shareholder loans worth a combined USD 1.5 bn. The move was part of a binding sale and purchase agreement which saw Aramco acquire an additional 22.5% stake in the JV.

DAR AL ARKAN-

Dar Al Arkan Real Estate Development’s net income rose 32.1% y-o-y to SAR 806.8 mn in FY 2024, it said in a disclosure to Tadawul. The growth was driven by higher lease revenues and increased non-operating income from murabaha deposits, helping offset higher operating and finance costs and a decline in associates’ income. Meanwhile, revenue grew 38.9% y-o-y to SAR 3.8 bn over the same period.

LOOKING AHEAD- Dar Al Arkan is exploring further listings for its international arm Dar Global beyond the London Stock Exchange, with potential targets including the New York Stock Exchange, Chairman Yousef Al Shelash said in January.

NATIONAL SHIPPING COMPANY-

The National Shipping Company for Saudi Arabia (Bahri) reported a 34% y-o-y increase in net income to SAR 2.17 bn in FY 2024, pushed by improvements in operational performance and return on equity investments, according to a disclosure to Tadawul. Revenue grew 8% y-o-y to SAR 9.48 bn during the same period, buoyed by higher global shipping rates and increased activity across several business units.

Dividends: The BoD recommended distributing SAR 738.3 mn in dividends for FY 2024 at SAR 1 per share, it said in a separate disclosure. The distribution date is yet to be announced.

ALSO- The company’s board proposed a capital hike to SAR 9.23 bn through a bonus share issuance at a rate of one share for every four shares held, according to another disclosure. The hike will be financed by tapping SAR 1.85 bn from retained earnings.

TAIBA INVESTMENTS-

Taiba Investments’ net income rose 205.6% y-o-y to SAR 333.7 mn in FY 2024, while revenue increased by 145.2% y-o-y to SAR 1.32 bn, according to a disclosure to Tadawul. Growth was fueled by higher occupancy rates related to religious pilgrimage, an increase in the number of events and conferences held in Riyadh, and Dur Hospitality’s post-acquisition footprint expansion.

ALSO- The company’s board suggested distributing SAR 195.3 mn in dividends for FY 2024 at SAR 0.75 per share, it said in a separate disclosure. The distribution date is yet to be announced.

UNITED COOPERATIVE ASSURANCE-

United Cooperative Assurance racked up a net loss of SAR 15.1 mn in FY 2024, compared to a net income of SAR 5.3 mn in 2023, it said in a disclosure to Tadwul. The decline was driven by a 39% drop in net ins. service results due to higher expenses and a 98% fall in ins. pool surplus share. The losses were partially offset by a 43% increase in net investment returns. Meanwhile, ins. revenues fell 1.2% y-o-y to SAR 1.05 bn.

QASSIM CEMENT-

Qassim Cement’s net income grew 112.3% y-o-y in FY 2024 to SAR 301.3 mn, while revenue increased 65.8% y-o-y to SAR 967.6 mn, according to a disclosure to Tadawul. Growth was supported by higher sales volume and average pricing, in addition to the operational integration of the fully acquired Hail Cement.

ALSO- The board greenlit the distribution of SAR 87.8 mn in dividends for 4Q 2024 at SAR 0.80 per share on 15 April, it said in a separate disclosure.

GULF UNION ALAHLIA COOPERATIVE INS.-

Gulf UnionAlahlia Cooperative Ins. Company reported a 65.1% y-o-y decline in net income to SAR 43.6 mn in FY 2024, weighed down by higher ins. services expenses and a smaller surplus from ins. pools, according to a disclosure to Tadawul. Meanwhile, ins. revenues grew 28.9% y-o-y to SAR 804.8 mn, driven by solid performance across the health, car, and property and casualty ins. segments.

BAWAN-

Bawan’s net income declined 22.1% y-o-y to SAR 106 mn in FY 2024, while revenue dropped 9.9% to SAR 3 bn, according to a disclosure to Tadawul. The fall came on the back of lower prices of wood products, declining sales of metal products, and increasing operational and Zakat expenses. These factors were partially offset by increased sales of plastic and electric products.

THE MEDITERRANEAN AND GULF-

The Mediterranean and Gulf Ins. and Reins. (MedGulf) reported a 49.4% y-o-y decline in net income to SAR 102 mn in FY 2024, driven by higher reins. expenses and weaker investment returns, it said in a disclosure to Tadawul. However, ins. revenues grew 6.6% y-o-y to SAR 3.55 bn on the back of overall growth in the business volume.

REMEMBER- Buruj Cooperative Ins. secured the green light for a potential merger with MedGulf from the General Authority for Competition. The move would see MedGulf’s capital upped to allow for the issuance of new shares to the shareholders of Buruj. The move is still pending other regulatory and shareholders’ approvals before any binding agreement can be signed.

RIYADH CEMENT-

RiyadhCement’s net income increased 64.5% y-o-y to SAR 310.4 mn in FY 2024, driven by healthier results and a SAR 25 mn zakat refund, it said in a disclosure to Tadawul. Meanwhile, revenue was up 22.7% y-o-y at SAR 789.4 mn during the period on the back of higher selling prices.

AL AKARIA-

Saudi Real Estate Company (Al Akaria) saw its net income grow 218% y-o-y to SAR 215.1 mn in FY 2024, buoyed by a nearly threefold increase in returns from public and private partnerships, in addition to rising operating income and falling zakat expenses, it said in a press release (pdf). Meanwhile, revenues were up 9.6% y-o-y at SAR 1.9 bn over the same period, driven by higher real estate sales, returns from infrastructure projects, and rental revenues.

Looking ahead: Al Akaria expects Fai Sedra-1 project, which features 138 residential units, to roll out in 1Q 2026, acting CEO Khalid Alsehaibany said. He added that the company is currently looking to tap a contractor for Fai Sedra-2, which features 310 residential units and is expected to be completed in 2027.

ACIG-

Allied Cooperative Ins. Group (Acig) reported a net loss of SAR 16.5 mn in FY 2024, compared to a net income of SAR 63.4 mn in the previous year, due to lower ins. revenue, it said in a disclosure to Tadawul. Revenues dropped 9.4% y-o-y to SAR 883.4 mn, weighed down by declining car and health ins. sales.

MIDDLE EAST SPECIALIZED CABLES-

Middle East Specialized Cables' (MESC) net income increased 86.1% y-o-y to SAR 91 mn in FY 2024, driven by a higher sales volume and other income streams, as well as lower financing costs, it said in a disclosure to Tadawul. At the same time, revenue climbed 23.4% y-o-y to SAR 1.14 bn, boosted by higher sales orders across all sectors — particularly oil and gas — and a rise in qualified bids.

Saudi Arabia made up nearly half of Forbes Middle East’s 40 most influential asset managers in its latest ranking

The Kingdom dominated the asset management scene in 2024, accounting for nearly half of Forbes Middle East Top 40 asset managers. We crowded the ranking with 19 firms driven by the “strength of its stock exchange,” while the UAE and Kuwait followed with six entries each. Collectively, Middle Eastern firms managed over USD 439 bn in assets in 2024, including equities, debt funds, discretionary portfolios, and real estate.

THE TOP TEN-

#1- SNB Capital CEO Rashad Sharif retained the top spot, managing asses worth USD 63.7 bn in 2024. The firm also oversaw Aramco’s USD 12.4 bn secondary offering, one of the largest in the Europe, the Middle East and Africa region since 2000.

#3- Al Rajhi Capital CEO Waleed Al Rashed AlHumaid led the firm to increase Aum by 61% y-o-y to USD 32.9 bn in 2024. The firm also acted as a joint bookrunner for Aramco’s offering.

#4- Jadwa Investments CEO & MD Tariq Al Sudairy fell short from the podium after leading an Aum growth of 36.5% y-o-y to USD 22.8 bn in 2024. The firm announced the closing of its first regional blind-pool private equity fund GCC Private Equity Fund 1 last November.

#5- Riyad Capital CEO Abdullah Abdulrahman Alshwer led the firm to USD 24.9 bn in Aum, securing the fifth spot after launching the Riyad SAR Liquidity Fund, the Riyad Monthly Distributions Multi-Asset Fund, and the 1957 Ventures fund to target the fintech industry.

#6- Alinma Capital CEO and MD Mazin Baghdadi secured the sixth spot, after Alinma Capital — previously Alinma Investment — oversaw Aum worth USD 24 bn in 2024. It also launched the USD 365.3 mn Alinma-Al Nahdi Real Estate fund to develop land in the Eastern Province.

Other managers who made the list:

#12- Alistithmar Capital (ICAP) CEO Khaled Abdulaziz Alrayes
#13- Sedco Capital CEO Abdulwahhab Abed
#14- SAB Invest CEO Ali Almansour
#15- BSF Capital CFO Salam AlKhunaizi
#19- Albilad Capital CEO Zaid Mohammed Almufarih
#20- Aljazira Capital CEO Naif Almesned
#21- anb Capital Khalid Al-Ghamdi
#22- Sidra Capital VC Ghassan Soufi
#25- Areeb Capital CEO Khalid Al Jabri
#26- Bloominvest Saudi Arabia CEO Abdullah Saud AlRashoud
#27- Derayah Financial CEO Mohammed AlShammasi
#28- AlKhair Capital CEO Abdullah Al Shilash
#29- Alpha Capital CEO Fahad Khalid AlSaud
#33- Alkhabeer Capital Ahmed Ghouth.

The Saudi German Health (SGH) received accreditation for 18 new Centers of Excellence across its hospitals in Saudi Arabia, raising the number of Australian Council on Healthcare Standards International (ACHSI) credited centers to 30, according to a press release. The newly accredited healthcare institutions specialize in emergency medicine, diagnostics, interventional radiology, and outpatient surgeries.

Acwa eyes Malaysian investments

CLIMATE-

Acwa eyes Malaysian investments: Acwa Power is conducting feasibility studies with Malaysia’s Uem Lestra Berhad to establish independent water and power facilities in Malaysia, Acwa said in a statement on Tuesday. The studies will evaluate the implementation of seawater reverse osmosis technology desalination plants with a daily capacity between 200k-400k cubic meters of water. The pair will also explore incorporating large-scale solar farms — either on the ground or floating — linked to battery energy storage systems, combined cycle gas turbine solutions, or a combination of both.

REMEMBER– Acwa Power had plans last year to invest USD 10 bn in Malaysia over the next decade. The proposed “energy projects” in Malaysia were to be implemented with Malaysian integrated renewable energy provider Cypark Resources.

CAPITAL MARKETS-

Wealth management firm Merill Lynch KSA secured approval to provide market-making services for 20 listed securities split evenly between Tadawul’s main market and Nomu, effective today, the Saudi Exchange said in a statement. The firm will maintain specific obligations for each stock The firm will adhere to the market-maker obligations on each stock, including minimum quote presence, size requirements, and spread caps.

On the main market: Merrill Lynch will serve as market maker, with spreads mostly capped at 0.75%, for Naseej International Trading, the National Company for Glass Industries (Zoujaj), the National Company for Learning and Education, Al Hassan Ghazi Ibrahim Shaker, Sustained Infrastructure Holding, Theeb Rent a Car, Saudia Dairy and Foodstuff Company (SADAFCO), Dallah Healthcare, Gulf Insurance Group, and Aldawaa Medical Services.

On the parallel market: Lynch will also act as a market maker, with spreads generally capped at 5%, for Atlas Elevators General Trading and Contracting, Shams Tourism, Riyadh Steel, Sure Global Tech, Ladun Investment, MOBI Industry, Molan Steel, Fesh Fash Snack Food Production, Yaqeen Capital, and Lana Medical on Nomu.

E-COMMERCE-

Alshaya Group’s brands joined the GCC marketplace of Trendyol, a Turkish e-commerce platform, according to a press release. American Eagle, Bath & Body Works, and H&M are now available on Trendyol for shoppers in Saudi Arabia, with more brands to come.

About Trendyol: Istanbul-based e-commerce platform Trendyol was founded in 2010 and connects customers with local and global brands. The Kingdom currently accounts for 80% of the platform's orders during peak periods in the Gulf.

ART-

Manga Productions partnered with Sela to attract Japanese entertainment to Riyadh Season: Misk ’s subsidiary Manga Productions inked a partnership agreement with the PIF’s entertainment and investments arm Sela to collaborate on attracting Japanese entertainment brands to Riyadh Season, state news agency SPA reports.

AI-

Aramco-backed Norwegian software firm, Cognite, launched an AI services hub in South Indian Bengaluru and plans to invest “mns of USD,” as it eyes India as “an alternative to China,” CEO Girish Rishi and CSO Hakon Bjerke told Reuters yesterday. Cognite is also pursuing potential contracts in cement and automotive with major Indian conglomerates and plans to ramp up investments in the country. No further details were disclosed.

Fed holds rates steady, warns of rising inflation and slower economic growth

The US Federal Reserve held interest rates steady for the second time at the 4.25%-4.50% range, in line with expectations, it said in a statement following its meeting yesterday. This marks its first interest rate meeting since US President Donald Trump’s tariff-focused economic agenda took hold. The Fed previously opted to keep interest steady in January, hitting pause on a cutting spree which saw interest rates drop 50 bps in September, and 25 bps in November and December.

The rationale: While economic activity was expanding gradually and unemployment rate lows had steadied, “inflation remains somewhat elevated” and "uncertainty around the economic outlook has increased,” the Fed’s statement said. The Fed lowered its GDP growth forecast for the US to 1.7%, down from 2.1%. “Inflation has started to move up now, we think, partly in response to tariffs, and there may be a delay in further progress in the course of this year,” Fed Chair Jerome Powell said at a presser.

Going forward: The Fed will continue to assess data and the balance of risks, it said, with most policymakers still expecting two rate cuts this year.

Market reax: US stocks rose on the news, with the Nasdaq up 1.4% and the S&P gaining 1.1%, ending a streak of losses from earlier this week on the back of a sell-off in tech stocks. At the same time, investors ramped up bond purchases, reflecting concerns around economic growth.

ALSO- China’s central bank also kept key interest rates unchanged, as the country looks towards stabilizing its currency and shoring up growth.

The Bank of England (BoE) is also expected to hold interest rates at 4.5% on Thursday, as inflationary pressures persist and economic growth slows, CNBC reports. Governor Andrew Bailey warned earlier this month that Trump’s trade tariffs pose a risk to the UK economy, while the BoE projects inflation will temporarily rise to 3.7% — well above its 2% target — driven by higher energy prices.

MARKETS THIS MORNING-

Asian markets are mixed following the interest rate moves yesterday, with China’s CSI 300 dipping 0.2%, and Hong Kong’s Hang Seng index falling 1.4%. South Korea’s Kospi was up 0.3%, while Japan’s stock markets were closed for a holiday. Over on Wall Street, futures are pointing to a strong open after yesterday’s rally.

TASI	11,709	-0.7% (YTD: -2.7%)
MSCI Tadawul 30	1,484	-0.6% (YTD: -1.7%)
NomuC	30,683	-0.1% (YTD: -2.5%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	31,348	-0.8% (YTD: +5.4%)
ADX	9,438	-0.3% (YTD: +0.2%)
DFM	5,117	-0.6% (YTD: -0.8%)
S&P 500	5,692	+1.4% (YTD: -3.0%)
FTSE 100	8,707	0.0% (YTD: +6.5%)
Euro Stoxx 50	5,507	+0.4% (YTD: +12.5%)
Brent crude	USD 70.78	+0.3%
Natural gas (Nymex)	USD 4.20	-1.0%
Gold	USD 3,058	+0.6%
BTC	USD 85,822	+4.2% (YTD: -8.3%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.7% yesterday on turnover of SAR 4.6 bn. The index is down 2.7% YTD.

In the green: UIHC (+3.5%), Albaha (+2.8%) and Rasan (+2.6%).

In the red: Medgulf (-10.0%), ACIG (-10.0%) and Derayah (-4.8%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.1% yesterday on turnover of SAR 30.2 mn. The index is down 2.5% YTD.

In the green:Naas Petrol (+9.6%), Enma Alrawabi (+7.0%) and Knowledgenet (+6.3%).

In the red: Neft Alsharq (-9.7%), Alnaqool (-9.5%) and Obeikan Glass (-8.6%).

CORPORATE ACTIONS-

Arabian Mills’ board recommended a dividend payout of SAR 30.3 mn for FY 2024 at SAR 0.59 per share, it said in a disclosure to Tadawul. The distribution date is yet to be announced.

CALENDAR

MARCH

1-30 March: Ramadan.

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

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

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

APRIL

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

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

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

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

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

14-16 April (Monday-Wednesday): Umrah and Ziyarah Forum, King Salman International Convention Center, Madinah.

17-23 April (Thursday-Wednesday): 11th edition of the Saudi Film Festival, Dhahran.

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

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

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

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

25 April- 3 May (Friday-Saturday): AFC Champions League Elite Finals, Jeddah.

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

MAY

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

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

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

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

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

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

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

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

JUNE

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

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

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

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

JULY

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

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

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

AUGUST

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

SEPTEMBER

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

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

23 September (Tuesday): Saudi National Day.

OCTOBER

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

NOVEMBER

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

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

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

DECEMBER

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

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

December: The Fortune Global Forum 2025, Riyadh.

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

2026

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

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

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

2027

The World Water Forum takes place in Riyadh.

The Ocean Race finishes in Amaala on the Red Sea.

Riyadh-Kudmi transmission line to be completed.

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