Trump, MbS friendship bolsters US-Saudi partnership, investments

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WHAT WE’RE TRACKING TODAY

THIS MORNING: All eyes on GCC-US summit

Good morning. It’s all about US President Trump’s historic visit to Riyadh in both the local and global press.

The visit had it all: a comprehensive partnership agreement spanning defense, security, minerals and more; a whopping USD 600 bn in investments committed from Riyadh in the US, set to increase to USD 1 tn; and a fiery speech that saw Trump lavishly praise the Kingdom’s transformation and diplomatic efforts, while taking direct shots at Iran and proxies.

What’s next? Trump is set to attend a summit with GCC leaders in Riyadh today — which will reportedly include brief meetings with Syrian President Ahmed Al Sharaa and Lebanon’s PM Joseph Aoun — before heading out to Qatar, and then the UAE tomorrow.

Topics expected to top the agenda include investment, arms transfers, and AI, in addition to regional issues like the Israeli-Palestinian conflict and the Iran-US negotiations over Tehran’s nuclear program.

The itinerary is still a work in progress: The Donald signalled that he might attend the Russia-Ukraine talks set to be held in Turkey on Thursday, which might see him push some meetings around to make room for a sit-down with Putin and Zelenskyy. The detour seems unlikely, but with Trump you can never say never.

** We have the details on everything Trump in today’s issue. Let’s dive in.

WEATHER- Dust storms are blowing on in Riyadh, Qassim, Hail, Madinah, Tabuk, Al-Jouf, and the Northern Borders, with thunderstorms expected in Najran, Jazan, and Asir.

Riyadh is expected to see a high of 40°C and a low of 27°C today, while Jeddah’s mercury will go as high as 41°C and as low as 29°C. Makkah will see a 44°C high and 30°C low.

PSAs-

Vacant properties are now subject to taxes: The amendments to the White Land Tax law have officially come into effect almost a month before planned, after its publication in Umm Al Qura’s Monday issue (pdf). The reforms are aimed at tackling land hoarding and improving housing supply across the Kingdom. Do you want to know more? Visit our explainer here.

IN CONTEXT- Saudi Arabia launched a set of real estate reforms aimed at expanding land availability, improving rental regulations, and reining in soaring property prices in Riyadh. A royal directive mandated the government to lift land freezes in the north of the capital and overhaul the White Land Tax Law, as well as introduce new rental regulations to balance the landlord-tenant relationship.

OIL WATCH-

Saudi Aramco is set to supply nearly 48 mn barrels of crude oil to China in June, the same as this month’s deliveries, Reuters reports, citing trade sources. The deliveries tally May’s — which represented a 35.5% m-o-m increase from April per our calculations — the highest since 2024 and the first allocation increase to China since the beginning of this year.

ALSO- Oil prices stabilized on Tuesday as Trump indicated progress in nuclear talks between the US and Iran over the weekend, Bloomberg reports. Brent crude futures settled just under USD 65 a barrel, while West Texas Intermediate closed just above USD 61 a barrel after inching up 1.5% in the previous session. Crude has fallen as US-China tensions eased amid the 90-day truce between the top two crude consumers — dropping over 10% since the US first announced its tariffs sweep back in April.

SPORTS-

The King’s Cup final between Al Ittihad and Al Qadisiyah will take place on May 31 at 9 PM at the Al Inma Stadium, Jeddah’s King Abdullah Sports City, state news agency SPA reports. French coach Laurent Blanc is aiming to line up a 10th tournament victory for his Jeddah-based side, while the Eastern Knights are attempting to obtain the trophy for the first time in the club’s history.

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***

Trump, MbS friendship bolsters US-Saudi partnership

From the moment Air Force One landed in King Khalid Airport early yesterday morning, the close relationship US President Donald Trump enjoys with Crown Prince and Prime Minister Mohammed bin Salman was on full display. MbS sidestepped protocols and was the first to welcome Trump himself on the lavender carpet, before they both headed to Al Yamamah Palace.

The warm relationship extended to the delegates. The two leaders spent close to an hour shaking hands and exchanging pleasantries with a long line of Saudi and US government officials and business leaders. US secretaries and White House advisors were present. Top executives from BlackRock, Citigroup, Google, Nvidia, Amazon, OpenAI, Boeing, and many more US companies were there. Elon Musk — richest man in the world and Trump’s close confidant — spent a little extra time chatting with MbS and The Donald, with wide smiles on everyone’s faces.

“We have the biggest business leaders in the world here. They’re going to walk away with a lot of checks for a lot of things that you’re going to provide,” Trump said to MbS during a side talk, claiming the agreements signed during his 24-hour stay would create an estimated 2 mn jobs in the US.

A COMPREHENSIVE PARTNERSHIP-

The summit soon moved on to the big announcement: a comprehensive strategic and economic partnership agreement that included a defense pact valued at a whopping USD 140 bn — touted as the largest in history. The pact will provide the Kingdom with a wide range of weapons and services from over a dozen American defense firms.

The package spans air force and space, maritime security, border security and land forces modernization, as well as communication technology. It also includes extensive training and support for the Saudi armed forces by developing service academies and the military’s medical capabilities.

The partnership also included:

a letter of intent to enhance joint cooperation on ammunition, training, maintenance, and support services for the Ministry of the National Guard;
an MoU on energy cooperation between the US Department of Energy and the Saudi Ministry of Energy;
a separate MoU on mining and mineral resources;
an MoU between the Interior Ministry and the FBI;
an amendment to the Air Transport Agreement now allows airlines to carry cargo between third countries without transiting through their home countries;
NASA and the Saudi Space Agency agreed to deploy a Saudi CubeSat on NASA’s Artemis II mission;
a cooperation MoU between justice ministries,
an MoU for cooperation on infectious disease control and biodiversity conservation;
cultural partnerships between the Royal Commission for AlUla and the Smithsonian Institution.

TRUMP HAILS A NEW REGION-

Trump picked Riyadh for his first international visit a second time around, except everyone seemed to note this is a different Riyadh than the one he landed in the first time in 2017. From highly-developed infrastructure, to towering skyscrapers, to the more intricate, highly-advanced digital services, signs of rapid social and economic transformation under Vision 2030 were unmistakable.

The President made sure to reiterate over and over how much he admired the results. During his speech at the Saudi-US Investment Forum, he showered the Crown Prince with praise for what he managed to accomplish, calling him a “friend” and an “incredible man,” who is “representing the best country in the world.”

Not only Riyadh is different this time around, though. The whole region has gone through big transformations that saw new leaders assume control in Syria after Assad’s fall, and in Lebanon after the escalation between Israel and Hezbollah severely weakened the militant group.

Trump laid the entire blame on Iran as the destabilizing force in the region, ranting about how it funded terrorism and bloodshed in Syria and elsewhere, before extending an “olive branch” and showing willingness to reach an agreement. If Tehran were to reject, the US would have “no choice” but maximum pressure by ramping up sanctions and targeting oil exports.

In contrast, he hailed Riyadh’s role as a broker for peace and stability in the region and beyond, commending its efforts in de-escalating conflicts from Ukraine and Sudan to India-Pakistan and Yemen, as well as its support for political solutions, energy market stability, and regional security. “Think of us as an unstoppable team,” he said to the audience, calling for Riyadh and the GCC to unite their efforts and push for resolving all conflicts.

BUT- The President opted to keep talk of normalization with Israel brief, as most analysts expected. He reiterated his “fervent hope” that Saudi Arabia would join the Abraham accords, but acknowledged that the Kingdom would do so in its “own time”.

Sanctions on Syria lifted: Perhaps the big announcement was the full cessation of the longstanding — and crippling — US sanctions on Syria “in order to give them a chance at greatness.” Trump is also set to “say hello” today with Syria’s new leader Ahmed Al Sharaa, while Secretary of State Mark Rubio will meet his Syrian counterpart in Turkey soon. He framed the rapprochement as a courtesy to the Crown Prince, who has been mounting a global campaign to shore up support for — and engagement with — the new government in Damascus.

The President also expressed support for Lebanon’s new leadership, calling it the first real opportunity in decades for stronger US partnership, and promised Secretary Rubio will lead discussions that will pave the way for supporting Lebanon in pursuing economic development, in a bid to overcome its crippling crisis.

The Kingdom commits USD 600 bn in US investments, to reach USD 1 tn

The Saudi-US summit saw the signing of 145 agreements totalling USD 300 bn, with the rest of the USD 600 bn package to be announced in the coming months. The Kingdom is set to eventually round out the figure to USD 1 tn in a second phase, Crown Prince Mohammed bin Salman said in his speech at the Saudi-US Business Forum.

By the numbers: Some 40% of the Public Investment Fund’s global investments are already in the US, while 1.3k US companies now operate in Saudi Arabia, making up nearly a quarter of foreign investment, with 200 setting up regional headquarters in the Kingdom, MbS added.

The White House was out with a fact sheet outlining details of the “first” investments to come out of the forum, spanning infrastructure, energy, technology, and defense.

PIF to order 30 Boeing jets for AviLease: The PIF placed an order for 20 Boeing 737-8 jets for its aviation leasing firm AviLease, with option for 10 more, according to a statement from Boeing. The White House fact sheet put the total value of the purchases at USD 4.8 bn.

On the tech front, Riyadh-based DataVolt plans to invest USD 20 bn in US-based AI data centers and energy infrastructure. Additional commitments from companies including Google, Oracle, Salesforce, AMD, and Uber total USD 80 bn in joint technology investments.

In infrastructure, US firms Hill International, Jacobs, Parsons, and AECOM are engaged in projects including King Salman International Airport, King Salman Park, The Vault, Qiddiya City, and more, generating an estimated USD 2 bn in US service exports.

Additional investments include USD 5.8 bn from Shamekh IV Solutions in US healthcare, with plans for a high-capacity IV fluid facility in Michigan. The Kingdom will also purchase USD 14.2 bn in GE Vernova gas turbines.

Sector-specific funds were also established, with a “strong emphasis” on deploying capital into the US, including the Energy Investment Fund, valued at USD 5 bn, and the Enfield Sports Global Sports Fund, valued at USD 4 bn.

ALSO FROM THE SAUDI-US BUSINESS FORUM-

BWI signs USD 15 bn agreements: Global investment platform Burkhan World Investments signed three MoUs in critical minerals, AI, semiconductors and defense tech worth USD 15 bn during the forum, the US-based company said in a statement.

#1- A critical minerals USD 9 bn MoU with Saudi-based Grand Mines Mining will see the launch of a new company for mining investment and operations in the Kingdom. The newly-launched company will focus on exploration, development and processing of lithium, cobalt and rare earth minerals.

#2- A USD 1 bn MoU with Watad Digital will launch an investment platform for AI tech, chip design, and high-performance computing, geared for supporting local startups and global R&D partnerships.

#3- An MoU with Riyadh-based Advanced Aircraft Technology — as well as unnamed global private sector partners — will launch a USD 5 bn dual purpose defense innovation fund dubbed BMI Nexus, aiming at co-investing AI-powered defense systems, autonomy, advanced sensors, cybersecurity, space technologies, and next-generation materials.

An innovation hub will also be established to support over 320 deep tech firms in Saudi and abroad with “physical infrastructure, operational support, and access to regional markets,” the statement said.

IN ENERGY- Aramco plans to invest USD 3.4 bn on expanding its Motiva refinery in Texas, CEO Amin Nasser said during the forum. The facility — the largest fuel-making plant in the US — will integrate petrochemicals production with fuel output.

The Saudi oil giant is also set to ink MoUs with US utility firm Sempra and LNG producer NextDecade to supply 6.2 mn tons of liquefied natural gas to Aramco annually, Nasser added.

In parallel, the company signed two 20-year agreements for LNG supplies from separate facilities in Texas, as part of a broader push to access 7.5 mn tons annually from its international projects by 2030, Nasser said. Bloombergand Reutersalso had the story.

AND IN DEFENSE- PIF-owned National Security Services Company (Safe) signed two agreements worth USD 450 mn on the sidelines of the forum, including a USD 350 mn agreement with US-based defense contractor Leidos, CEO Turki Al Thonayan told CNBC Arabia. Another USD 100 mn agreement was put in place with Smart Solutions.

ALSO- Life Shield + Colt ink USD 500 mn agreement: Local firm Life Shield signed a USD 500 mn agreement with US-based firearms manufacturer Colt’s Manufacturing to produce and localize the production of light and medium weapons in the Kingdom, Al Arabiya reports.

BUT- Some are waving red flags: Trump’s push for USD 1 tn in Saudi investment may clash with the Kingdom’s own transformation plans, which Bloomberg estimates could cost nearly USD 2 tn, including gigaprojects like Neom and major events like the World Expo 2030 and the FIFA World Cup in 2034. Rising deficits, falling oil revenues, and mounting borrowing might curb the Kingdom’s ability to meet targets, Bloomberg argued.

WORTH MENTIONING-

BlackRock’s CEO Larry Fink said the company started developing financial products tailored to the Kingdom amid its transformation into a “strong destination for capital.” Fink told investors to expect heightened market volatility over the next 90 days due to uncertainty around Trump’s trade policies.
Blackstone’s infrastructure fund with the PIF delivered a 17.5% return, outperforming its original 9% target, said Blackstone CEO Stephen Schwarzman. The firm will focus on securing multiple sites for data centers over the next five years.

PIF’s AI powerhouse Humain starts strong, securing USD bns in agreements

Newly launched AI venture Humain was the star of the show, signing multi-bn agreements with US tech giants, including Nvidia, AMD, Groq, Global AI and Amazon. The Public Investment Fund named Tareq Amin (LinkedIn), former CEO of Aramco Digital, as Humain’s chief executive.

#1- Amazon: Humain and Amazon Web Services (AWS) will jointly invest over USD 5 bn to establish an AI Zone in the Kingdom, according to an emailed statement seen by EnterpriseAM. The zone will host AWS’s advanced infrastructure, including AI servers, cloud services like Bedrock and SageMaker, and support for Arabic large language models.

The collaboration includes plans to expand AI training programs in the Kingdom, with 100k citizens and 10k women set to receive cloud and AI skills through AWS initiatives, the statement said.

#2- AMD: Humain and AMD will invest up to USD 10 bn over five years to deploy 500 MW of AI infrastructure, creating a global, open, and scalable computer network spanning Saudi Arabia to the US, AMD said in a press release. Initial deployments are already underway, with multi-exaflop capacity targeted by early 2026. The platform will support enterprise, startup, and sovereign AI workloads.

Who’s doing what: Humain will handle the delivery of hyperscale data centers, sustainable energy systems, and global fiber networks, while AMD will provide its full AI compute portfolio, including Instinct GPUs, EPYC CPUs, and other types of hardware.

#3- Nvidia: Humain and Nvidia will jointly develop 500 MW of AI data centers over five years, starting with a supercomputer that will comprise of 18k GB300 Grace Blackwell chips provided by Nvidia, the US chipmaker said in a press release. The value of the project was not disclosed.

The project will include deploying Nvidia’s Omniverse platform for digital twin and robotics applications, as well as launching large-scale training programs to grow Saudi Arabia’s AI talent pool.

#4- Cisco: The global networking firm announced an initiative with Humain to build open, scalable, and cost-efficient AI infrastructure, according to a statement. The initiative will be “the cornerstone in a wider set of new investments in research, talent and innovation,” the statement said without disclosing the value of investments.

The company plans to work on AI-driven digital infrastructure for Riyadh Expo 2030 and the 2034 World Cup, in addition to establishing an AI institute at King Abdullah University of Science and Technology, and provide free AI and cuberecurity training for 500k learners over the next five years.

What about Global AI? Humain inked a multi-bn USD AI collaboration agreement with US-based Global AI partner, Bloomberg said, citing a source familiar with the matter. The agreement will grant Humain access to Global AI’s US data centers and eventually a center in Saudi Arabia, subject to US approval. Global AI is currently building a data center in New York, set to launch in June, and plans to build more data centers in the US and the kingdom.

.. and Groq? The PIF is tapping US chipmaker Groq to handle inference operations for Humain, Semafor reports, citing two sources it says in the know. The agreement aims to utilize Groq’s claimed superior inference capabilities, compared to Nvidia chips.

REMEMBER- Grog is working on building the world’s largest AI inference node in Saudi: Groq, a California-based startup, has previously partnered with Aramco Digital to invest USD 1.5 bn in building the world’s largest AI inference node in the Kingdom. The facility will host Groq’s language models, onboard developers, and support high-volume token processing.

We knew a big push was coming: Hours before official announcements, the Trump administration was said to be finalizing agreements that would allow Saudi Arabia to purchase advanced AI chips from US companies like Nvidia and AMD. A similar arrangement with the UAE is expected to follow that will include UAE’s G42. The decision marks a sharp departure from the Biden administration’s tighter controls, which aimed to prevent potential tech transfers to China.

The announcements come amid US concerns about sensitive tech finding its way to China, our biggest trading partner. One proposal being discussed would give the US oversight over data centers using American chips, though the specifics are still being worked out, sources familiar with the matter told Bloomberg,

The two sides are also exploring data embassies — a system that would let data centers operate under foreign legal protections — to attract global partners while maintaining security standards, the sources said.

No AI restrictions between friends: White House AI and crypto adviser David Sachs said that US restrictions on AI and semiconductor technologies do not apply to strategic partners like Saudi Arabia, stressing the need for global cooperation to keep the US at the forefront of the sector. Sachs still voiced concerns about semiconductor diversion to China, but advocated for measures that don’t hinder legitimate sales to compliant partners.

DATA POINT- Tech and AI are non-oil pillars for the Kingdom: Venture capital investment in Saudi Arabia grew 49% from 2020 to 2024, surpassing USD 1 bn in 2023, MAGNITT’s Farah Al Nahlawi told Al Arabiya. In 1Q 2025, Saudi tech investments made up 58% of the region’s total, with AI contributing 10% of Saudi venture capital in 2024.

OTHER TECH ANNOUNCEMENTS-

Elon Musk confirmed Starlink has been approved for maritime and aviation use in Saudi Arabia, and floated the introduction of self-driving vehicles and taxis to the Kingdom.
Self-driving cars are to launch in Saudi Arabia this year, said Uber CEO Dara Khosrowshah i at the forum.
Homegrown workforce management solutions startup WakeCap raised USD 28 mn in new funding during the forum, Al Arabiya reported.

Saudi-Chinese forum wraps up with 57 agreements worth SAR 14 bn signed in Beijing

The Saudi-Chinese Forum for Product Export and Agricultural Sustainability wrapped up in Beijing with 57 agreements and MoUs worth over SAR 14 bn (USD 3.7 bn) inked between Saudi and Chinese entities, Al Riyadh reports.

Who’s involved? Some 36 Saudi entities — both public and private — met with their Chinese counterparts. The parties signed 26 agreements focused on exporting Saudi products to the Chinese market, solidifying an expanding trade corridor between the two economies. The agreements span agriculture, water, environment, fisheries, and livestock.

The highlights:

Water and sustainability tech: Saudi and Chinese players agreed to swap know-how on water recycling, roll out human capital development programs, build marine algae farms, and produce biofuels and fertilizers. Agreements also included the use of cloud computing to enhance water treatment processes.
Infrastructure: One agreement will create a smart city in Saudi Arabia dedicated to food security, featuring a network of factories, research labs, and logistics hubs designed to power the Kingdom’s agri-supply chain.
Industrial development: Another agreement greenlights an industrial city in the Jazan region, focused on basic and transformational industries. The aim? To strengthen supply chains and open doors for agri-linked manufacturing and investment.
Animal production: Private sector players from both countries are partnering on animal production projects — from building modern poultry farms and developing the sheep sector to recycling bee and wool waste, and rolling out genetic development projects for shrimp strains and vertical farming initiatives.
Agri-food exports are also a core component of the agreements. New agreements will put more Saudi goods on Chinese shelves, with companies signing contracts to export dates, fruits, vegetables, and bottled water, reflecting efforts to expand Saudi Arabia’s footprint in one of its most important export markets.

China is Saudi Arabia’s top trading partner, making up 18% of the Kingdom’s foreign trade, with total trade between the two surpassing USD 107 bn, Environment Minister Abdulrahman bin Abdulmohsen Al Fadhly said at the forum. The Kingdom’s merchandise exports to China made up 15.2% of total exports in 2024. By January 2025, that share grew to 16.2%.

Red Sea Int’l + Bank Albilad are gearing up for sukuk issuances

#1- Bank Albilad is gearing up to issue USD-denominated additional tier 1 (AT1) sukuk through a private placement to shore up its capital base, according to a bourse filing. The issuance will be conducted under the bank’s USD 2 bn AT1 capital sukuk program. The final value and terms of the sukuk will be determined based on market conditions at the time of issuance.

SOUND SMART- AT1 sukuk are perpetual, high-yield instruments that count toward a bank’s core capital, offering loss-absorbing features. They are typically used by GCC banks to optimize capital structure, comply with Basel III requirements, and fund future expansion.

ADVISORS: The bank enlisted our friends at HSBC as joint lead managers on the transaction, alongside Albilad Capital, Goldman Sachs International, and Emirates NBD.

#2- Tadawul-listed and modular building solutions firm Red Sea International Company is set to debut a SAR 100 mn murabaha sukuk under its murabaha sukuk program, the company said in a regulatory filing. The offering will be made available to investors via the debt instrument platform operated by Tarmeez Capital Financial Company, which is acting as the sole lead arranger. The prospectus will be published on Tarmeez’s website at a later date.

The proceeds will be earmarked to ramp up working capital and fund capital expansions tied to the company’s operational activities and investments, in line with a financing study it recently conducted.

SOUND SMART- A murabaha sukuk offering is basically a shariah-compliant bond where investors fund the purchase of goods or assets, which are then sold to a buyer at a premium. The buyer pays back over time, and that premium becomes the investor’s return. Since it’s based on a sale and not interest, it follows Islamic finance rules.

Axelerated Solutions priced its Nomu IPO at SAR 27 apiece

Axelerated Solutions priced its Nomu IPO at SAR 27 apiece, according to a disclosure to Tadawul. This could see the company raise SAR 81 mn and give it a market cap of SAR 756 mn at listing, according to our calculations. The IT services firm is floating 10.7% of its post-IPO capital.

What’s next: Qualified investors will be able to put in their orders starting tomorrow and until Wednesday, 21 May. They can book up to 1.4 mn shares each, with the minimum limit set at 100 shares. The final allocation is slated for Monday, 26 May.

Use of proceeds: Some SAR 3.8 mn of the proceeds will be used to cover IPO-related expenses, while the remainder is earmarked to support the firm’s expansion across the Kingdom.

ADVISORS- Value Capital is quarterbacking the transaction as its lead manager and financial advisor, with PKF acting as accountant. Receiving agents include SNB Capital, Al Rajhi Capital, BSF Capital, and Alinma Investment, among others.

OTHER NOMU IPOs TO WATCH FOR IN 2025:

Asas Makeen for Development and Real Estate Investment priced its Nomu IPO at SAR 80 apiece;
Hawiya Auctions priced its Nomu IPO of a 12% stake at SAR 13 per share;
Al Khaldi Logistics, Multi-sector operator Anmat, restaurant operator Al Kuzama Trading, and school operator Dome International were the latest to issue prospectuses for the move;
Qudra for Communications and IT, the National Signage Industrial Company, Naf for Feed Industry, medical equipment supplier Wajd, and property developer Hammad Mohammed Bin Saedan Real Estate were given the CMA’s all-clear to list on the parallel market.

Dkhoun’s Nomu IPO sees strong investors demand

Fragrance retailer Dkhoun National Trading’s Nomu IPO was 119.2% oversubscribed, with the company pricing the offering at SAR 121 apiece, according to a disclosure to Tadawul. Dkhoun is taking a 20% stake to market.

Proceeds + market cap: The IPO price could see the company raise SAR 48.4 mn in proceeds and give it a market cap of SAR 242 mn at listing, according to our calculations. The selling shareholders will receive all the proceeds from the offering after deducting SAR 1.35 mn to cover the offering-related expenses, but they won’t be able to execute any transactions on their shares for 12 months from the first day of trading.

ADVISORS- Dkhoun tapped Saudi Kuwait Finance House to be the financial advisor and lead manager on the transaction. Receiving agents include SNB Capital, Al Rajhi Capital, Saudi Fransi Capital, Alinma Investment, Riyad Capital, AlJazira Capital, Albilad Investment, Alistithmar Capital, AlArabi Investment, Alawwal Investment, Derayah Financial, Yaqeen Capital, Alkhabeer Capital, Sahm Capital, and GIB Capital.

Cenomi Centers and Retail post 1Q earnings

CENOMI CENTERS-

Cenomi Centers reported a 20.0% y-o-y increase in net income in 1Q 2025 to SAR 222.7 mn, according to its earnings release. The Saudi mall operator’s bottom line was supported by a favorable base effect, with 1Q 2024 net income “impacted by the one-time write-off of non-amortized financing cost associated with a historical Islamic facility and 2024 Sukuk.”

The company also reported SAR 590.6 mn in total revenue, rising 0.8% y-o-y, with EBITDA for the quarter coming in at SAR 357.4 mn, up 10.6% y-o-y. The improvement was supported by an 8.8% rise in media sales and a 7.4% increase in operating income.

Cenomi Centers saw the “strongest footfall performance for any first quarter” in 1Q 2025, recording 34.7 mn customer visits, rising 9.7% y-o-y. When adjusted to exclude Mall of Dhahran, Cenomi Centers’ overall footfall was up 15.8% y-o-y. The Mall of Dhahran was handed over in early February. Like-for-like occupancy rose 0.6 percentage points y-o-y to 93.1%.

Dividends: Cenomi Centers' board approved a dividend distribution of SAR 178.125 mn for Q4 2024 at SAR 0.375 per share. The dividend is scheduled to be distributed on 3 July.

CENOMI RETAIL-

Cenomi Retail reported a net income of SAR 1.8 mn in 1Q 2025, reversing a net loss of SAR 151.7 mn in the same period last year, according to a disclosure to Tadawul. Group revenues rose 11.2% y-o-y to SAR 1.3 bn, supported by strong domestic retail performance and growing international sales, as well as “favorable seasonal dynamics” in Saudi Arabia thanks to Ramadan driving higher sales.

International locations: Saudi retail revenues climbed 10% y-o-y to SAR 953.4 mn, with revenue per store nearly doubling due to portfolio optimization. International sales grew 21.8% led by Uzbekistan and other CIS markets. Online revenues jumped 21.8% to SAR 111.2 mn, contributing 8.3% to total sales.

Shrinking debt: The company trimmed its total debt by SAR 216.6 mn to SAR 1.6 bn.

ARABIAN DRILLING-

Arabian Drilling’s net income dipped 48.6% y-o-y to SAR 75 mn in 1Q 2025, weighed down by rig suspensions since 2024 despite a land plot sale and insurance recoveries compensating, according to an earnings release. Meanwhile, revenue slipped 5.8% y-o-y to SAR 911 mn over the same period, due to rig suspensions, which was offset by operating 11 new unconventional land rigs.

AL MAWARID MANPOWER-

Al Mawarid Manpower Company reported a 13.4% y-o-y rise in net income to SAR 29.9 mn in 1Q 2025, while its revenue climbed 34.0% y-o-y to SAR 588.7 mn, according to a disclosure to Tadawul. Both were mainly driven by higher workforce deployment across corporate and individual segments.

LAZURDE-

Jewelry maker Lazurde posted a 52.5% y-o-y decline in net income to SAR 13.3 mn in 1Q 2025 amid the absence of a one-off FX gain recorded in the same quarter last year, according to a disclosure to Tadawul. Revenue rose 35.6% y-o-y to SAR 721.2 mn during the same period, supported by growing sales at existing and new stores in both the Kingdom and Egypt.

NATIONAL GAS AND INDUSTRIALIZATION COMPANY-

The National Gas and Industrialization Company (Gasco) clocked a 21.2% y-o-y drop in net income in 1Q 2025, coming in at SAR 61.9 mn, according to a disclosure to Tadawul. The decline came on the back of rising operating expenses and lower investment and finance income. Revenue grew 18.5% y-o-y to SAR 837.6 mn thanks to higher gas sales volume and prices.

AL BABTAIN POWER AND TELECOMMUNICATION-

Al Babtain Power and Telecommunication saw its net income rise 6.8% y-o-y to SAR 88.2 mn in 1Q 2025, supported by higher productivity, stronger cost control, and bigger margins, according to a disclosure to Tadawul. However, revenue declined 9.8% y-o-y to SAR 631.2 mn during the same period as the company completed several projects in the poles and lighting sector, as well as the renewable energy sector.

BUDGET SAUDI-

The United International Transportation Company (Budget Saudi) posted an 18.1% y-o-y increase in net income to SAR 82.8 mn in 1Q 2025, supported by a stronger revenue base, operational efficiency, and cost control measures, according to a disclosure to Tadawul. Revenue climbed 30.4% y-o-y to SAR 543.4 mn during the same quarter, boosted by an expanded fleet and higher utilization rates across both the short- and long-term rental segments, as well as the positive impact of the newly consolidated subsidiary Autoworld.

Red Sea Film taps Faisal Baltyuor as CEO

Red Sea Film Foundation appointed Faisal Baltyuor (LinkedIn) as its new CEO, according to a post on LinkedIn. Starting June 1, the Saudi film industry pioneer will oversee the Jeddah-based Red Sea Film Festival, the Red Sea Fund, and its year-round Red Sea Labs. Baltyuor was previously head of Ithra Cinema and CEO of Muvi Studios. He also founded the film distribution company CineWaves Films.

Modon inked SAR 350 mn worth of contracts at the Saudi Food Show

FOOD-

Modon doubles down on food industry investments: The Saudi Authority for Industrial Cities and Technology Zones (Modon) signed a total of 10 industrial, investment, and logistics contracts worth SAR 350 mn on the sidelines of the Saudi Food Show, a post on X announced.

In CONTEXT- Modon is the key strategic partner of this year’s Saudi Food Show, but its support for the F&B industry dates back to 2023 when it signed agreements worth USD 285 mn to localise the Kingdom’s F&B industry.

STARTUP WATCH-

Egypt-based Flat6Labs added T-Gate to its investment portfolio, after the homegrown tech startup participated in the fifth cycle of Flat6Labs’ Riyadh Seed Program, competing with more than 20 startups for prizes — including a three-year funding — the company said in a post on LinkedIn.

About T-Gate: T-Gate is a middleware that connects food and beverage outlets with service providers, delivery apps, and point-of-sale systems, aiming to streamline communication between food tech businesses and other industry players.

REFRESHER- Flat6Labs invested a total of SAR 5 mn in 10 Saudi startups in the fourth cycle of its Riyadh Seed Program last December, with each startup receiving SAR 500k in direct investments.

US stocks extend rally on softer inflation data

US equities rallied Tuesday on the back of a softer-than-expected April inflation reading and a tariff truce between the US and China. The S&P 500 closed higher for the second straight session, wiping out year-to-date losses — the benchmark is now up 0.1% for the year. The rebound comes as a welcome reversal from the steep market sell-off triggered by the announcement of US President Donald Trump’s “Liberation Day” tariffs on 2 April, which had dragged the S&P down as much as 15% YTD.

Inflation slowed, and tariff pressure eased: Annual inflation slowed to 2.3% in April, down from 2.4% in March, and slightly below forecasts. Consumer prices climbed 0.2% m-o-m in April — also below forecasts — up from a 0.1% drop in March, according to data from the US Bureau of Labor Statistics. “There was nothing in CPI to throw it off,” BMO Private Wealth’s strategist Carol Schleif told Reuters. The CPI data landed just a day after Washington and Beijing announced they would temporarily pause their trade war for 90 days, dialing back trade tensions that have weighed on markets for months.

Market reax: The S&P 500 rose 0.7%, notching a YTD gain for the first time since February. The tech-heavy Nasdaq inched up 1.6%, while the Dow Jones fell 0.6%, dragged by a 17.8% drop in UnitedHealth.

Sentiment shifts fast, but some remain cautious: The truce between the US and China on the tariffs front was akin to going “from iceberg to 80 degrees spring day overnight” said Schleif, pointing out that the news would help retailers stack up imports ahead of the holidays and the new academic year. “There’s been an instant reversal in the prevailing trends of the last several months,” Putnam Investments’ Shep Perkins told the Financial Times, calling the truce a “big positive surprise.”

Still, others warned the rebound may be overblown: “Relief from policy-inflicted stress may be bullish at the margin, but it does not strengthen the economy or reverse the global slowdown that was already under way,” said BCA Research’s Felix-Antoine Vezina-Poirier, warning that a global 10% tariff would remain a “stagflationary drag.”

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning. Japan’s Nikkei is down 0.6% and the Shanghai Composite is down 0.1%, while the Hang Seng (1.2%) and Korea’s Kospi (0.7%) are in the green.

TASI	11,532	+0.4% (YTD: -4.2%)
MSCI Tadawul 30	1,475	+0.4% (YTD: -2.3%)
NomuC	27,929	+2.1% (YTD: -11.3%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.0% repo	4.5% reverse repo
EGX30	31,693	+0.4% (YTD: +6.6%)
ADX	9,631	-0.1% (YTD: +2.3%)
DFM	5,363	+0.5% (YTD: +4%)
S&P 500	5,887	+0.7% (YTD: +0.1%)
FTSE 100	8,603	-0.02% (YTD: +5.3%)
Euro Stoxx 50	5,416	+0.4% (YTD: +10.6%)
Brent crude	USD 66.63	+2.6%
Natural gas (Nymex)	USD 3.61	-0.9%
Gold	USD 3,260	+0.4%
BTC	USD 103,987	+1.2% (YTD: -1.2%)
Sukuk/bond market index	912.71	-0.1% (YTD: +1.2%)
S&P MENA bond & sukuk	143.04	-0.3% (YTD: +2.2%)
VIX (Fear gauge)	18.22	-0.9% (YTD: +5%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.38% yesterday on turnover of SAR 5.4 bn. The index is down 4.2% YTD.

In the green: Sarco (+9.9%), Zamil Industrial (+7.7%) and Artex (+4.4%).

In the red: Gulf General (-6.5%), Alkhaleej Trading (-5.1%) and Saudi Re (-3.8%).

THE CLOSING BELL: NOMU-

The NomuC rose 2.14% yesterday on turnover of SAR 65.2 mn. The index is down 11.3% YTD.

In the green: AME (+12.8%), United Mining (+10%) and Albattal Factory (+9.4%).

In the red: iOud (-13.7%), Munawla (-6.3%) and Almohafaza for Education (-6.3%).

CALENDAR

MAY

Second week of May: World Intellectual Property Organization (WIPO) Global Awards 2025 announces finalists.

12-14 May (Monday-Wednesday): 2025 Saudi Giga projects Summit, Riyadh.

12-14 May (Monday-Wednesday): Saudi Food Show 2025, Riyadh Front Exhibition and Conference Centre, Riyadh.

12-15 May (Monday-Thursday): Riyadh International Industry Week, Riyadh International Convention & Exhibition Center.

15-21 May (Thursday-Wednesday): Axelerated Solutions’ Nomu IPO subscription period.

17 May (Saturday): Hail investment Forum 2025, Al Roshan Expo, Hail.

18 May (Sunday): Conclusion of the bookbuilding period for institutional investors in Flynas’ Tadawul IPO.

18-22 May (Sunday-Thursday): Al Kuzama’s Nomu IPO subscription period.

19-25 May (Monday-Sunday): Asas Makeen’s Nomu IPO subscription period.

19-26 May (Monday-Monday): Dome International’s Nomu IPO subscription period.

22-27 May (Thursday-Tuesday): Anmat’s Nomu IPO subscription period.

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

26-29 May (Monday-Thursday): Hawyia Auctions Nomu IPO offering period.

27-28 May (Tuesday-Wednesday): Aseer Investment Forum, King Khalid University in Al Faraa, Abha.

27 May-1 Jun (Tuesday-Sunday): Al Khaldi’s Nomu IPO subscription period

29 May (Thursday): 2024-2025 academic year ends.

30 May (Friday) King’s Cup final (Al-Ittihad vs Al-Qadisiyah), Al-Inma Stadium, King Abdullah Sports City, Jeddah.

JUNE

4-9 June (Wednesday-Monday): Hajj.

6-10 June (Friday-Tuesday): Eid Al Adha.

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

24-25 June (Tuesday-Wednesday): Tech-ecO-System Summit (ToSS), Riyadh.

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

JULY

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

7 July-24 August (Monday-Sunday): Esports World Cup, Riyadh.

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

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

AUGUST

7 July-24 August (Monday-Sunday): Esports World Cup, Riyadh.

5-17 August (Tuesday-Sunday): 2025 Fiba Asia Cup, Jeddah.

SEPTEMBER

15-17 September (Monday-Wednesday): Money 20/20 Middle East, Riyadh.

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

23 September (Tuesday): Saudi National Day.

OCTOBER

1-3 October (Wednesday-Friday): Saudi Green Building Forum, Riyadh.

7-8 October (Tuesday-Wednesday): Global EV & Mobility Technology (GEMTECH) Forum, Riyadh.

17 October (Friday): Saudization for private healthcare roles enters its second phase.

22-23 October (Wednesday-Thursday): Private Capital Forum, Riyadh.

25-27 December (Saturday-Monday): The Fortune Global Forum 2025, Riyadh.

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

NOVEMBER

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

23-26 November (Sunday-Wednesday): Saudi Food Exhibition and Conference, Riyadh.

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

27-30 November (Thursday-Sunday): World Rally Championship Saudi Arabia 2025, Jeddah.

30 November (Sunday): Zatca 21st E-invocing integration wave deadline.

DECEMBER

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

1-4 December (Monday-Thursday): 61st ISOCARP World Planning Congress, Riyadh.

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

31 December (Wednesday): Zatca 22st E-invoicing integration wave deadline.

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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