United Pharmacies acquires Kunooz + GDI now owns 100% of Transcorp

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WHAT WE’RE TRACKING TODAY

Acwa joins Vitol-backed consortium for USD 3 bn gas-fired plant in South Africa

Good morning, wonderful people. Eyes will be on the night sky as we’ll know tonight if the coffee embargo starts tomorrow morning or on Thursday. Looking past the morning headaches, we are looking forward to the warmth of the first Maghrib feast, and we hope you are too.

Two M&A plays are leading this morning’s news well. United Pharmacies snapped up Kunooz’s entire portfolio, aiming to capitalize on its presence in high-density areas to compete with sector giants Nahdi and Al Dawaa. Meanwhile, Sisco-backed GDI finalized its full acquisition of Transcorp, adding its last‑mile and cold‑chain capabilities to Sisco’s full-stack platform. Let’s dive in.

WEATHER- A hazy kind of day: Winds raising dust and sand across most of the Kingdom are expected today, with possible nighttime and early morning fog along the western and southwestern coasts.

Riyadh: 25°C high / 13°C low;
Jeddah: 31°C high / 24°C low;
Makkah: 33°C high / 24°C low;
Dammam: 27°C high / 13°C low.

AND- Expect a drier, hotter Ramadan: Below-average rainfall and modestly higher temperatures — around 1°C above normal — are forecast in Makkah and Madinah during the holy month.

Watch this space

ENERGY — Acwa 🤝 Vitol in South Africa: Acwa is part of a consortium backed by commodity player Vitol to build a USD 3 bn gas-fired power plant and LNG import facility at the Durban port on South Africa’s east coast, a Vitol spokesperson told Reuters. The consortium also includes Vitol’s Vivo Energy and terminal operator VTTI.

How much capacity are we talking? Somewhere between 1-1.8 GW, according to a document seen by Reuters. No decision has been made on where the LNG shipments will come from, Vitol’s spokesperson said.

Not just power generation: The project will reportedly deliver “regasified LNG distribution through the Lilly gas pipeline, which links Secunda to Durban, LNG trucking to off-grid industrial and mining operations as well as LNG bunkering for shipping,” an unnamed source told the newswire.

IPO WATCH — PTC lines up Tadawul listing: Power Tower Company for Energy (PTC) tapped Yaqeen Capital to quarterback its main market IPO and listing process, according to a bourse filing. The move marks the latest industrial services player to seek a public float as the Kingdom’s infrastructure and renewable energy pipeline reaches critical mass.

About PTC: Founded in 2004, PTC is an engineering contractor focused on EPC and operations & maintenance work in the Kingdom’s power sector. The business sits squarely in the execution layer of grid expansion, transmission, and substation projects.

AVIATION — Riyadh’s King Khalid International Airport is undergoing its first major operational overhaul in 40 years, set to take place over the course of this week. The phased restructuring will see the Terminal Transition project — managed by Riyadh Airports Company — draw a line between domestic and international operations.

What’s happening? Terminals 1 and 2 will be dedicated exclusively to international flights operated by Saudi national carriers, while Terminal 5 will serve all foreign airlines. By the end of next week, Terminal 3 will be consolidated into Terminal 4 to handle all domestic routes for both national and foreign carriers.

Why it matters: The airport is trying to resolve the chronic bottlenecks that have plagued it since transit traffic jumped 20% last year. Separating Saudia, flynas, and Riyadh Air from foreign carriers should theoretically reduce the friction and bottlenecks going forward.

OIL — The Kingdom is pushing barrels back to Asia: Aramco will ship some 56-57 mn barrels to China next month, a sharp increase from around 48 mn barrels this month, Bloomberg reports, citing traders. Crude sales jumped after Saudi Arabia slashed the official selling price of its main grade to the lowest level in more than five years.

The spillover: Indian refiners are set to receive at least 1 mn barrels above their long-term contract volumes next month, down from at least 2 mn extra barrels this month. South Korean and Japanese refiners will also get more Saudi crude than usual, though the exact increases from the current month — when volumes are 9 mn barrels higher — remain unclear.

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The big story abroad

It’s an oddly calm morning in the global press, with headlines continuing to follow the tech selloff. Technology stocks are seeing hundreds of bns in losses amid a reality check over exorbitant AI spending and murky earnings visibility, with investors pulling back from equities of Big Tech giants. Microsoft’s market value saw the biggest dip compared to its peers, shedding some 17% YTD. Amazon, Nvidia, and Apple also saw their market value slip over the past month and a half. Meanwhile, more conventional equities — like Samsung and Walmart — have seen growth in their market value over the same period.

For a deeper dive into the market’s responses to AI, check out this morning’s Planet Finance, below.

And in the latest sign that 2026 is just not the greenback’s year: Fund managers are more pessimistic about the USD than at any point in the last ten years, following its 1.3% drop against a basket of other currencies in 2026. Confidence in US assets is waning, and the currency is still vulnerable to further losses, experts at asset management players said.

Kunooz’s Pharmacies are now United

United Pharmacies Group acquired 100% of Kunooz Pharmacies in a transaction valued at more than SAR 100 mn, CFO Mohammed Elmorsy tells EnterpriseAM. The acquisition involves the Makkah-based group absorbing Kunooz’s entire portfolio, which will be rebranded as United Pharmacies.

The details: United will finance about 30% of the transaction internally, with the rest financed through banks, Elmorsy tells us.

The rationale

United, established in 1990, wants to leverage Kunooz’s footprint in high-density urban areas as it looks to break the dominance of market incumbents Nahdi and Al Dawaa.

By the numbers: Elmorsy says the group is targeting a 13% market share by the end of 2026, rising to 15% by late 2027. The group plans to open 100 new branches across the Kingdom this year, bringing its total network to 600 stores, excluding the Kunooz acquisition and other transactions.

What’s next: A regional play

A prelude to cross-border expansion: Elmorsy says United plans on regional expansion, focusing on the UAE and Egypt within the next five years, shifting from domestic consolidation to regional export.

Sisco‑backed GDI finalizes Transcorp acquisition

Sisco expands its cold chain portfolio: Sisco-backed Green Dome Investments (GDI) closed a SAR 230 mn acquisition of Dubai-based Transcorp International, according to a Tadawul disclosure. Under the agreement, GDI — in which Tadawul-listed Sisco Holding owns a 31.7% equity stake — now owns 100% of Transcorp’s equity.

More details: The purchase was funded entirely through equity contributions from GDI’s shareholders — with Sisco roughly taking up SAR 77 mn of the total consideration. The transaction also marks the exit of Crescent Enterprises’ CE-Ventures, which invested in Transcorp in 2018.

Why it matters

Sisco is building a full-stack logistics platform: Following its SAR 132.6 mn acquisition of Port Services and Storage Company (PSS) in January, Sisco is pairing PSS’s heavy infrastructure with Transcorp’s last‑mile and cold‑chain capabilities. The firm is now in control of ports, warehouses, and smart delivery tech that are capable of moving temperature-sensitive goods across the GCC.

This is a scale play for the GCC logistics corridor. Transcorp brings a smart cold-chain network covering 50 cities across Saudi Arabia, the UAE, and Qatar.

What’s next?

Transcorp is merging its UAE and Qatar operations into GDI’s logistics arm Elite Co., expanding the unit’s presence in Saudi Arabia as the Kingdom’s logistics sector gears up for expansion. Elite Co. and Transcorp will now operate across five GCC markets, managing 1.5k vehicles, 27 warehouses, and serving 800 clients.

ADVISORS- Transcorp tapped PwC as its financial advisor and Addleshaw Goddard for counsel. Meanwhile, Elite Co. appointed FTI to serve as its financial advisor and Support Legal to provide counsel.

Medlog doubles down on Jeddah with a Modon integrated logistics zone

Medlog is planting a second flag in Jeddah: Medlog — the cargo subsidiary of Italy’s Mediterranean Shipping Company (MSC) — inked an investment agreement with the Saudi industrial regulator Modon to build an integrated logistics zone inside Jeddah’s Third Industrial City with an initial SAR 137 mn investment.

The details: The project — covering 100k sqm — will include container yards and warehouses, as well as integrated logistics solutions, including storage, distribution, handling, and customs clearance bundled on site. Once completed, the project is expected to handle nearly 60k TEUs a year by 2038.

Why it matters

Medlog is building capacity in two places in Jeddah — inside the industrial city and at the port. The Third Industrial City stands some 62km away from Jeddah Islamic Port, indicating that the firm is bridging its manufacturing floor and shipping lanes.

Not Medlog’s first western Saudi build: The logistics operator signed a separate SAR 175 mn agreement nearly two years ago with Mawani for an integrated logistics park at Jeddah Islamic Port, also sized 100k sqm.

Mobily’s, Yamama Cement’s bottom line up, Solutions’ down in 2025

Mobily

Etihad Etisalat Co. (Mobily) logged a bottom line of SAR 3.5 bn in 2025, up 11.6% y-o-y, according to a disclosure to Tadawul. Revenue increased 7.9% to SAR 19.6 bn, thanks to “healthy growth in the overall subscriber base,” while capital expenditure more than doubled to SAR 5.8 bn during the year, compared to SAR 2.6 bn in 2024.

ALSO- Mobily will distribute SAR 1.2 bn in interim dividends for 2H 2025 at SAR 1.60 per share on 9 March, a separate disclosure said.

Solutions by STC-

Solutions by STC posted a 5.9% y-o-y decline in net income to SAR 1.5 bn in 2025, weighed down by higher revenue costs and increased zakat and tax charges, it said in a disclosure to Tadawul. Revenue, however, climbed 5.5% y-o-y to SAR 12.7 bn, supported by a 10.4% increase in IT services, a 3.2% rise in core ICT services, and 2.8% growth in digital services.

Dividends: Solutions’ board recommended a SAR 953 mn dividend payout for 2025 at SAR 8.00 per share, it said in a separate disclosure.

Market reax: The company’s share price fell 8% to SAR 207.80 apiece.

Yamama Cement-

Yamama Cement saw its net income jump 14.8% y-o-y to around SAR 482.9 mn last year, it said in a disclosure to Tadawul. Revenues rose 21.3% y-o-y to SAR 1.4 bn during the year. Growth in both top and bottom lines was primarily driven by higher sales volume, despite a decrease in the average selling price, the company said.

ALSO- The company’s board recommended the distribution of around SAR 203k in dividends for 2025 at SAR 1.00 apiece to shareholders, it said in a separate disclosure. The dividend payment date will be finalized following General Assembly approval.

Olayan invests in Breadfast, Aramco gets LNG from Catarus, Cashin raises Series A funding

Olayan steps into Egypt’s e-commerce market with Breadfast investment

Riyadh’s Olayan Financing took part in the Egyptian online grocery platform Breadfast’s USD 50 mn pre-Series C funding round, Breadfast co-founder and CEO Mostafa Amin told Bloomberg. Other participants include Mubadala, SBI Investment, Y Combinator, the World Bank’s IFC, Novastar Ventures, 4DX Ventures, and the European Bank for Reconstruction and Development.

Where will the money go? The funds will be deployed in developing the firm’s infrastructure and business units. The company is also mulling utilizing the fresh capital in a potential expansion in other North and West African countries.

REMEMBER- Breadfast secured USD 10 mn in a Series B2 round in August 2025, which saw participation from the European Bank for Reconstruction and Development and Novastar Ventures. That round pushed the company’s valuation to around USD 400 mn.

What’s next? The company aims to have a more sizable funding round in 1H 2026, with ongoing discussions currently taking place with growth investors for a Series C. It also targets close to 3% of Egypt’s USD 100 bn grocery market in the next three years, with plans to have a global IPO in the future.

Aramco secures offtake from US LNG project

Aramco locked in a 20-year LNG supply contract with US-based gas producer Caturus for 1 mtpa of LNG from the proposed Commonwealth LNG export project in Louisiana. The project — slated to launch operations in 2030 — is expected to generate nearly USD 3.5 bn in annual export revenues.

Why it matters: The agreement highlights Aramco’s aggressive expansion into the US LNG market — where capacity is projected to nearly double over the next four years. The move follows previous agreements with other US entities, such as NextDecade’s Rio Grande LNG project. It also underscores a surge in commercial activity in the US LNG sector following the lifting of a pause on new export permits last year.

BACKGROUND- A long list of companies –– including Switzerland’s Glencore and Mercuria, Japan’s Jera, Malaysia’s Petronas, and local firm EQT –– have already signed offtake agreements for the project. The US has been striving to cement its position as the world’s largest exporter of LNG, surpassing previous leaders Qatar and Australia.

Cashin raises Series A funding

Local fintech firm Cashin closed a SAR 60 mn Series A funding round led by Impact46, it said in a LinkedIn post. Founded by Omar Al-Rammah (LinkedIn) and Abdulkarim Zrik (LinkedIn), the firm provides digital financial and operational management systems for fuel and energy stations.

Cybersecurity startup locks in USD 2.4 mn in seed round

Homegrown cybersecurity startup Solidrange raised USD 2.4 mn (c. SAR 9 mn) in a seed round led by Riyadh-based Sharaka Capital, according to a press release. The round saw participation from Sadu Capital, SEEDRA Ventures, and Tali Ventures. The capital will drive regional growth, fuel R&D, and further embed AI throughout the company’s product suite.

2P renews + increases facility from SNB

Perfect Presentation for Commercial Services (2P) renewed and increased a shariah-compliant facility from Saudi National Bank (SNB), it said in a disclosure to Tadawul. The SAR 200 mn facility will go toward issuing letters of guarantees, letters of credit, and invoice financing for newly awarded projects.

Markets caught between AI hype and AI fear

Wall Street is wrestling with two competing fears about AI — and both are weighing on markets. Investors are selling companies they believe could be displaced by AI while simultaneously doubting that the hundreds of bns of USD big tech is pouring into the technology will generate meaningful returns anytime soon, Bloomberg reports. But Nomura International Wealth Management CIO Julia Wang argues that these two contradicting fears “can’t be true at the same time.”

The first fear is straightforward: AI may wipe out swaths of corporate America. Each new product launch from AI firms has triggered waves of selling in sectors ranging from wealth management and ins. brokering to software, logistics, and juridical services. Investors are scrambling to reassess which business models are at risk. Every new AI tool is being treated as another piece of evidence that change might arrive faster — and hit harder — than expected.

Investors’ second fear is that AI’s biggest champions are overspending without offering a clear timeline for returns. Microsoft, Amazon, Meta, and Alphabet are expected to spend more than USD 600 bn in capital expenditures in 2026 alone, reshaping their cashflow profiles. Microsoft and Meta have each lost 16% of their market value since 28 January, while Alphabet — widely seen as the frontrunner in the AI race — is trading 11% below its recent peak.

What has shifted is the market’s patience. For years, investors accepted that hyperscalers could spend heavily today to dominate tomorrow. Now, they are demanding clarity on when and how that payoff will materialize. “Investors were comfortable saying, ‘so long as it happens in the future, I’m comfortable with Microsoft or Amazon or Alphabet spending the money.’ Now they want to know more immediately when the payback will come — and we don’t have a clear picture,” Ameriprise Advisor Services’ Anthony Saglimbene said.

The consequences of that spending are already rippling through the real economy. Data center construction is tightening supplies of key components like memory chips, creating knock-on pressures across electronics, automotive, and telecom supply chains. “What is ahead of us between now and the end of this decade, in terms of demand, is bigger than anything we’ve seen in the past, and, in fact, will overwhelm all other sources of demand,” Lam Research Corp’s CEO Tim Archer told Bloomberg in a separate report.

And investors are raising questions about hyperscaler balance sheets. “This level of capex will consume almost 100% of hyperscalers’ cashflow from operations compared with a 10-year average of 40%,” wrote UBS Wealth Management’s Ulrike Hoffmann-Burchardi in a note to clients. “That spending is now increasingly being funded by external debt or equity financing,” she added.

Until investors can reconcile those competing narratives — that AI is both transformative and potentially overhyped — markets are likely to remain unsettled. “When the market finally feels these companies aren’t going out of business, it will realize AI is a tool that can lead to greater profitability,” said Saglimbene. “But we’re going to be in a period of volatility for the foreseeable future,” he added.

MARKETS THIS MORNING-

A lot of the Asia-Pacific markets we follow are closed today for the Lunar New Year. Of the few that are open, Japan’s Nikkei is in the red as investors continue to react to the country’s softer-than-expected 4Q 2025 growth.

TASI	11,184	-0.4% (YTD: +6.6%)
MSCI Tadawul 30	1,505	-0.4% (YTD: +6.6%)
NomuC	23,764	-1.4% (YTD: +2.0%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	4.25% repo	3.75% reverse repo
EGX30	51,494	-1.6% (YTD: +23.1%)
ADX	10,623	-0.1% (YTD: +6.3%)
DFM	6,702	-0.4% (YTD: +10.8%)
S&P 500	6,836	+0.1% (YTD: -0.1%)
FTSE 100	10,474	+0.3% (YTD: +5.5%)
Euro Stoxx 50	5,979	-0.1% (YTD: +3.2%)
Brent crude	USD 68.59	+1.2%
Natural gas (Nymex)	USD 3.24	+0.8%
Gold	USD 5,046	+2.0%
BTC	USD 68,791	-0.2% (YTD: -21.5%)
Sukuk/bond market index	923.15	0.0% (YTD: +0.4%)
S&P MENA Bond & Sukuk	153.28	+0.3% (YTD: +0.9%)
VIX (Volatility Index)	21.20	+2.9% (YTD: +41.8%)

THE CLOSING BELL: TADAWUL-

The TASI is down 0.4% yesterday on turnover of SAR 4.1 bn. The index is up 6.6% YTD.

In the green: Maharah (+7.3%), Arabian Cement (+6.3%) and SRMG (+4.3%).

In the red: Solutions (-8.0%), Jahez (-5.6%) and Al Rajhi Takaful (-4.5%).

THE CLOSING BELL: NOMU-

The NomuC fell 1.4% yesterday on turnover of SAR 19.3 mn. The index is up 2% YTD.

In the green: Future Vision (+15.4%), Bena (+9.8%) and NBM (+9.8%).

In the red: Mulkia (-13.5%), First Avenue (-7.7%) and Wsm (-7.6%).

CORPORATE ACTION

The Capital Market Authority approved Al Rajhi Bank’s request to increase its capital by 50% to SAR 60 bn through issuing one bonus share for every two shares held. The capital hike will be paid from the bank’s retained earnings, coinciding with the issuance of 2 mn shares.

CALENDAR

FEBRUARY

15-17 February (Sunday-Tuesday): The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh Front Exhibition & Conference Center.

16 February (Monday): King Salman Stadium design-and-build contract prequalification submission deadline.

18 February (Wednesday): First day of Ramadan (TBC).

22 February (Sunday): Founding Day.

26 February (Thursday): Title deed registration deadline for 142.8k properties across 104 neighborhoods in Hail.

MARCH

12 March (Thursday): Deadline for real estate registration for 253.2k properties in 499 neighborhoods across Riyadh, Qassim, Makkah, and Hail.

18-23 March (Tuesday-Monday): Eid Al-Fitr holiday (TBC).

21 March (Saturday): Fanatics Flag Football Classic, Kingdom Arena, Riyadh.

25-27 March (Wednesday-Friday): Future Investment Initiative Institute, Faena Hotel, Miami Beach.

31 March (Tuesday): Zatca’s 23rd E-invoicing integration wave deadline.

APRIL

6 April (Monday): Procurement and Supply Chain Futures Forum, Al Faisaliah Hotel, Riyadh.

6-7 April (Monday-Tuesday): Real Estate Supply Chain Forum, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

12-15 April (Sunday-Wednesday): Saudi Print & Pack, Riyadh International Convention & Exhibition Center.

12-15 April (Sunday-Wednesday): Riyadh International Industry Week, Riyadh International Convention & Exhibition Center.

12-15 April (Sunday-Wednesday): Saudi Plastics & Petrochem, Riyadh International Convention & Exhibition Center.

12-15 April (Sunday-Wednesday): Saudi Smart Logistics, Riyadh International Convention & Exhibition Center.

13-16 April (Monday-Thursday): Leap Tech Conference, Riyadh Exhibition & Convention Center – Malham.

20-22 April (Monday-Wednesday): The Future Hospitality Summit, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

20-22 April (Monday-Wednesday): Saudi Paper and Packaging Expo, Riyadh International Convention & Exhibition Center.

20-22 April (Monday-Wednesday): Sports Investment Forum (SIF), Riyadh

22-23 April (Wednesday-Thursday): The World Economic Forum’s Global Collaboration and Growth Meeting, Jeddah.

27-29 April (Monday-Wednesday): Aluminum Arabia, The Arena, Riyadh.

28 April (Tuesday): GC Summit Saudi Arabia, Riyadh.

MAY

3-9 May (Sunday-Sunday): The Global Sustainability Expo, The Arena Riyadh Venue.

5-6 May (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh.

24-28 May (Sunday-Thursday): Eid al-Adha holiday.

JUNE

21-24 June (Sunday-Wednesday): Saudi Food Exhibition and Conference, Riyadh Front Expo.

SEPTEMBER

15-17 September (Tuesday-Thursday) The Global AI Summit, King Abdulaziz International Convention Center, Riyadh.

23 September (Wednesday): Saudi National Day.

OCTOBER

12-15 October (Monday-Thursday): World Energy Congress, Riyadh.

Signposted to happen sometime in 2026:

2H: Sabic’s USD 6.4 bn Fujian project in China to start production;
November: The UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia;
November: The Esports Nations Cup, Riyadh;
The Intervision international music competition will take place in Saudi Arabia;
6 July-23 August (Monday-Sunday): Esports World Cup, Riyadh.

Signposted to happen sometime in 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.

Signposted to happen sometime in 2Q 2027:

The Hail Region Water Networks Project is expected to be completed.

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