US security, nuclear, AI pact nearly a done deal?

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WHAT WE’RE TRACKING TODAY

Washington signals a security and nuclear pact with Riyadh is nearly over the line

Good morning, wonderful people. It’s another very busy news day with news from aviation, sports, capital markets, and more than a little bit of foreign policy.

UP FIRST- US officials have started talking up prospects of a security pact with Saudi Arabia — and are using the occasion to publicly put pressure on Israel. Secretary of State Antony Blinken told the powerful Senate Foreign Relations Committee yesterday that “the Saudis have been clear that [normalization] would require calm in Gaza and it would require a credible pathway to a Palestinian state. It may well be that in this moment Israel isn’t able or willing to proceed down that pathway.”

A senior US official has since given briefings to major global news outlets talking up prospects for a US-Saudi pact that would cover both defense and help developing a domestic nuclear energy industry. (We also expect to see an agreement on artificial intelligence and advanced technologies, though no report overnight has an update on that front.)

A bilateral agreement between Riyadh and Washington is “more or less complete” and “pretty much there,” the official told reporters.

For the record: “We now have a near final set of arrangements, which would be the bilateral elements of this deal, and we really believe the Saudi deal is pretty much there. But there are elements of it, including a credible pathway for the Palestinians and also some other elements, that would still have to be completed. The [war in Gaza] needs to recede to open up space for this,” the official said. Israel continues to pound Palestinian neighborhoods in both north and south Gaza this morning.

BACKGROUND- The pacts have been in the works for some time now, but got another big push a few days back after White House national security advisor Jake Sullivan touched down in Riyadh.

Read more: The story is getting prominent play from the Financial Times | Wall Street Journal | Reuters.

THE BIG STORY AT HOME-

#1- Crown Prince and Prime Minister Mohammed bin Salman reassured the public about King Salman’s health during yesterday’s cabinet meeting, state news agency SPA reports. The Crown Prince chaired the meeting after postponing a four-day visit to Japan due to the King’s health, as the King receives treatment at Jeddah’s Al Salam Royal Palace for inflammation in the lungs. The diagnosis comes after the King was admitted to the palace’s royal clinics for a medical checkup due to “high temperature and joint pain.”

#2- The Tadawul All Share Index is nearly 6% behind the MSCI Emerging Markets gauge this year — Saudi stocks are lagging behind other EM counterparts for the first time since the pandemic. (Bloomberg)

HAPPENING TODAY-

#1- There are two IPOs whose retail subscription periods wrap up today:

Fakeeh Care: The institutional tranche of healthcare provider Fakeeh Care’s 21.5% offering on the main market drew in strong demand, closing with a 119x oversubscription rate. Fakeeh has priced the transaction at the top of the range at SAR 57.50 per share, which would give the business a market cap of SAR 13.3 bn at the start of trading. The pricing means Fakeeh is set to raise SAR 2.9 bn from the offering.

Miahona: Water treatment outfit Miahona priced its IPO at the top end of its indicative price range at SAR 11.50 per share, valuing the IPO at SAR 555.5 mn. The institutional component of the offering attracted strong demand from investors. Vision Invest, the sole owner of Miahona, will offload a 30% stake on the main market Tadawul in a secondary share sale.

#2- It’s the second and penultimate day of the Airports Council International annual conference — better known as WAGA 2024. The conference kicked off at the Hilton Riyadh Hotel yesterday, hosting a meeting for the ACI Advisory Board, as well as a networking meeting, exhibition, and reception.

What to expect today: Riyadh Airports CEO Ayman Aboabah, General Authority for Civil Aviation (Gaca) President Abdulaziz Al Duailej, and International Civil Aviation Organization President Salvatore Sciacchitano will set the tone for today’s sessions with opening remarks.

The talking points: The day will include discussions of airport competitiveness, infrastructure, airline strategies for network expansion and partnerships, and the economic impact on regional growth and tourism, as well as the role of technology and innovation in enhancing passenger experiences. Panels will also examine the changes and economic impacts of air transport liberalization, with discussions on market reforms, regulatory shifts, economic outcomes, and geopolitical effects on airline operations and trade.

Panelists to look out for:

Majid Khan, Saudi Air Connectivity Program CEO;
Aimen Al Hosni, Oman Airports CEO;
Selahattin Bilgen, iGA Istanbul Airport CEO;
Deborah Flint, president and CEO Greater Toronto Airports Authority;
Juan Jose Salmon Balestra, Lima Airport Partners CEO;
Kashif Khalid, regional director for the Middle East & Africa at IATA;
Lorie Argus, Australia Pacific Airports Corporation CEO;
Serkan Kaptan, TAV Airports CEO.

WEATHER- Riyadh’s skies are still sunny with a daytime high of 42°C and a low of 28°C. Jeddah is looking windy with a high of 38°C and a low of 27°C,while Makkah is also getting some wind, albeit at higher temperatures with a high of 45°C and a low of 29°C.

WATCH THIS SPACE-

Mining giant Ma’aden has extracted lithium from seawater — though not at a commercially viable rate, CEO Robert Wilt told Reuters yesterday. “We are actually producing lithium from seawater now,” Wilt, who is also vice chairman of Manara Minerals — a JV between Ma’aden and the PIF — said. He did not provide further details on the extraction process, but highlighted efforts by Aramco to extract lithium from brine in its oilfields. “We are both working parallel paths. Ma’aden on extracting lithium from seawater. Aramco from brines where lithium has higher concentration,” he said, adding that Ma’aden was currently in talks with Aramco on “how we can join forces.”

REMEMBER- Industry and Mineral Resources Minister Bandar Al Khorayef said last month that Saudi will continue to source lithium from abroad as part of its plans for the nascent EV sector as securing domestic supplies were still at an early stage. “Lithium is a very important mineral that happens to be part of a very important part of the supply chain, especially for batteries,” he told Reuters at the time. “There are some signs which are encouraging, but we need to do more,” he said on producing lithium locally.

Why does it matter? Lithium is a critical component of both modern consumer electronics and the green transition, factoring into everything from rechargeable batteries for phones and computers to electric vehicles and grid storage.

Manara is aiming high when it comes to minerals: Manara Minerals completed earlier this month the acquisition of a minority stake in Brazilian miner Vale Base Metals. The transaction is worth an estimated USD 2.6 bn, based on a USD 26 bn enterprise value VBM had previously disclosed. It is eying a stake in Zambia's First Quantum Minerals copper mines Sentinel and Kansanshi, and is also about to close a USD 1 bn investment in Barrick Gold’s Reko Diq copper and gold mining project in Pakistan.

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THE BIG STORY ABROAD-

It’s a mixed bag on global front pages this morning with no single story captivating the attention of the business press.

#1- Iran will hold presidential elections on 28 June as the country looks to elect a new president following the death of Ebrahim Raisi in a helicopter crash. Vice President Mohammad Mokhber will serve as interim president in the meantime.

#2- US stocks hit another record high: The S&P 500 and tech-heavy Nasdaq Composite both hit fresh highs yesterday. US stocks have been closing in the green for the past couple of sessions following promising inflation data that reignited trader optimism that the Federal Reserve could start cutting interest rates this year.

#3- Pixar is laying off 14% of its workforce as the company adopts a quality over quantity mindset, a Disney spokesman told CNBC.

Over 30 MoUs signed at Saudi-Japan Vision 2030 business forum

Businesses from Saudi and Japan signed more than 30 MoUs at the Saudi-Japan Vision 2030 business forum, Reuters reports. The agreements span energy, manufacturing, and other sectors. The forum, which took place in Tokyo yesterday with over 300 industry officials and leaders from the two countries, went forward despite the absence of Crown Prince and Prime Minister Mohammed bin Salman.

Speaking of which: Crown Prince Mohammed bin Salman confirmed the Kingdom’s commitment to providing Japan with a stable supply of its crude during a virtual meeting with Japan’s Prime Minister Fumio Kishida, state news agency SPA reported yesterday. Kishida offered thanks and added that he expects Saudi to continue to play a leading role in the stability of the global oil market “including through further production increases,” according to a Japanese Foreign Ministry statement. The two leaders also discussed cooperation on clean energy — including green hydrogen and ammonia — and other fields.

THE AGREEMENTS-

SPPC + Marubeni: Saudi Power Procurement Company signed two power purchase agreements with a consortium led by investment conglomerate Marubeni to purchase power from the AlGhat (600 MW) and Wa’ad Alshamal (500 MW) wind projects, state news agency SPA reports.

Locally made manga: Manga Arabia — a subsidiary of media giant Saudi Research and Media Group’s (SRMG) — launched Manga International as part of its international expansion with Japan as its official headquarters, state news agency SPA reported. SRMG CEO Jomana Al Rashid said the move comes under efforts to expand overseas through partnerships with leading global manga publishers and communicate the Saudi and Arab culture through manga comics.

ALSO- The agreements signed include MoUs between Aramco and Japanese refiner Eneos Holdings and leading Japanese banks Sumitomo Mitsui and Mizuho along with renewables giant Acwa Power, according to Reuters, which provided no further details. Marubeni also plans to set up a wind farm project in Saudi, the newswire reports, citing a statement from the Japanese Trade Ministry.

Pitching more investments in Saudi from Japan: Investment Minister Khaled Al Falih highlighted the importance of the Kingdom’s booming non-oil sector, saying that it has “doubled and is looking for an accumulated investment of over USD 3 tn that offers big chances to the Japanese,” Arab News reported. Saudi has a “bubble of projects as it will host Expo 2030 in Riyadh,” Al Falih said, highlighting potential investments for Japanese companies on the back of Saudi hosting the 2034 World Cup and the 2029 Asian Winter Games in Neom.

Some 102 agreements worth SAR 75 bn signed at Future Aviation Forum

Companies and international institutions signed 102 agreements worth a combined SAR 75 bn at the Future Aviation Forum during the first two days of the industry event, Mubasher reports, without providing a breakdown of the specific agreements. Here’s what we know:

#1- The General Authority for Civil Aviation (Gaca) signed air service agreements yesterday with Kiribati, Grenada, Malawi, Romania, Belize, Sao Tome and Principe, Lithuania, El Salvador, and Albania, according to Mubasher. Gaca had signed similar agreements with Mozambique, Eswatini, Cambodia, Brunei, and Dar es Salaam on Monday.

#2- US-based electric aircraft maker Joby Aviation plans to expand into the Saudi market after it signed a MoU with Aramco aviation subsidiary Mukamalah, according to a statement. Mukamalah, which operates the world’s largest fleet of corporate aircraft, will introduce Joby’s eVTOL to the Saudi market,

About Joby: Operating since 2009, Joby works to provide electric air taxis for commercial use. Its aircraft is designed to carry up to 5 passengers, including the pilot, and can move at speeds of up to 321 km/h.

#3- Al Hokair + Tibah Airports: Tadawul-listed Al Hokair Tourism and Development Group signed an MoU with Tibah Airports Company which could see Al Hokair provide catering, entertainment, F&B services at Tibah’s Prince Mohammed International Airport in Madinah, it said in a disclosure to Tadawul. Neither side put a value on the contract.

#4- Saudia + Riyadh Air: Saudi’s two national airlines will work together on pilot, crew, and other aviation employee training, after PIF-owned Riyadh Air signed an MoU with the Saudia Group-affiliated Saudi Academy, state-run SPA reports.

BACKGROUND- The PIF has been reportedly in talks to acquire Saudia, Saudi’s national flag carrier, as a prelude to combining the business with Riyadh Air. Saudia will bid adieu to Riyadh by 2030 to make way for Riyadh Air and will instead base itself out of Jeddah’s King Abdulaziz International Airport.

ALSO FROM THE FORUM-

#5- Industry and Minerals Minister Bandar Alkhorayef had one-on-one meetings with officials from some of the biggest names in aviation, including a sit-down with Boeing CEO David Calhoun, as well as the heads of China’s Comac and Empire Airlines to discuss avenues of cooperation in aircraft manufacturing, the ministry said on X.

#6- Gaca plans to add two new private logistics zones at airports in the Kingdom, the authority’s vice-president for economic policies and logistics, Awad Al Sulami, told Argaam on the sidelines of the forum. The authority will announce the new zones “in the coming period,” Al Sulami said, without providing further details. The new zones would be added to the Kingdom’s current roster of special logistics zones, including the Special Integrated Logistics Zone at King Khalid International Airport in Riyadh, according to Al Sulami.

#7- A strong aviation sector is crucial to grow the country’s tourism industry, Gaca Executive Vice President for Strategy and Business Intelligence Mohammed Al Khuraisi said at the forum. “To have successful tourism, you need to have a robust aviation sector. And by that we mean airport capacity, more fleet, more connectivity, better services, etc,” he said.

#8- PIF-owned commercial chopper operator The Helicopter Company is looking to grow its footprint in Saudi and in global markets, with plans to eventually IPO, the company’s CEO, Arnaud Martinez, told Arab News on the sidelines of the forum. “Once you secure the market, it’s a healthy move to go and see what’s going on in other countries, other continents, and other bids. That’s what PIF does; we invest, we create something that the Kingdom needs, we grow the business, then you go on, you grow, you go over the borders, and then you go on an IPO journey,” he said.

PIF becomes WTA’s first-ever naming partner under “multi-year partnership”

More tennis success for PIF: The Public Investment Fund (PIF) will become the Women Tennis Association’s (WTA) first-ever naming partner of the WTA Rankings under a “multi-year partnership,” PIF said in a statement. WTA Rankings are the highest official rankings for women’s professional tennis players. Neither party said how much PIF would pay for the naming rights.

Ironing out the details: The PIF WTA Rankings will track women players’ performance and the “PIF will work with the WTA to celebrate and support players’ progress and their inspirational unique stories.” The partnership will also see the fund working together with the WTA to expand existing initiatives to help elevate the sport.

What they said: “Through our partnership with WTA, PIF will continue to be a catalyst for the growth of women’s sport. We look forward to working with the WTA to increase participation and inspire the next generation of talent,” PIF’s Head of Corporate Brand Mohamed AlSayyad said.

Saudi has been serving aces recently: The partnership with the WTA comes weeks after Riyadh was named host of the WTA tennis finals from 2024-2026, ending months of speculation on the fate of the women’s tennis flagship tour event after some in the tennis industry mounted a campaign against Saudi's bid for the rights. The tournament, which will run from 2-9 November in Riyadh, will feature the top women singles players as well as doubles matchups with a record purse of USD 15.25 mn on offer.

AND- PIF signed a “multi-year strategic partnership” with the men’s ATP Tour in February to become the official naming partner of ATP rankings and partner in ATP Tour events, including Indian Wells, Miami, Madrid, Beijing, and Italy’s Nitto ATP Finals. It also includes the Next Gen ATP Finals, which Jeddah will host until 2027.

Expect some men’s action before the WTA finals: Six of the world’s top-ranked men’s tennis players will be in town in October to compete in the first-ever “Six Kings Slam.” Rafael Nadal, Novak Djokovic, Carlos Alcaraz, Jannik Sinner, Daniil Medvedev, and Holger Rune will all be here for the tournament in Riyadh. Nadal was named ambassador for the Saudi Tennis Federation recently.

Dell sees Saudi fueling the future of AI centers. PLUS: IBM is helping us train AI models in Arabic

Global tech player Dell sees Saudi becoming a prime location for AI-related ventures, CEO Michael Dell told Asharq Alawsat on the sidelines of the annual Dell Technologies World event in Las Vegas. Saudi’s “abundant and inexpensive” energy makes it a good hub to host power-intensive AI training data centers, he said.

In Dell’s words: “These training centers require a lot of energy, and there is no doubt that energy is available [in Saudi Arabia],” he said, adding that “just as artificial intelligence goes where there is data, it will go where there is energy.”

SOUND SMART- Energy is the only common denominator for gauging data center capacity, which is why energy-intensive facilities are quantified in MW. Data centers are home to thousands of servers as well as networking equipment and cooling systems, all of which consume massive amounts of energy. There are currently 24 operational data centers in Saudi with a combined capacity of 123 MW, and another 37 facilities in the pipeline.

IN CONTEXT- The Kingdom is cooking up a world-scale AI play that could see the new technology contribute as much as USD 135 bn to the local economy by 2030, a recent report from PwC showed. Additionally, the Public Investment Fund is looking to set up a USD 40 bn AI-focused fund that would make it the world’s largest investor in artificial intelligence.

“A lot of new skills” will be needed to drive AI growth, Dell said, adding that his company is helping Saudi develop talent. “There will be a lot of new skills required in the Kingdom,” the CEO said without providing any further detail on the cooperation.

ALSO IN TECH- The Saudi Data and Artificial Intelligence Authority said its Arabic text generation model ALLaM was integrated into leading global technology company IBM’s watsonx platform, according to a post on X. ALLaM isa Saudi’s first locally developed AI system to answer inquiries in Arabic. IBM said the addition of ALLaM to its AI specialized platform would help it understand multiple dialects of the Arabic language, its CEO Arvind Krishna told Reuters.

REMEMBER- IBM has a big appetite for the Saudi AI story, with some USD 250 mn in planned investments to launch the first MENA software lab in Saudi, it said during Leap 2024 in March.

Saudi shows most improvement in WEF travel and tourism development index in the region since 2019

The Kingdom ranked #41 in the World Economic Forum’s Travel andTourism Development Index for 2024(pdf), moving up nine spots from #50 in the previous edition. Saudi, along with the UAE, were the only high-income economies to rank among the index’s top 10 most improved scores between 2019 and 2024. Saudi showed the most improvement in the index and ranking in the region since 2019.

Methodology: The index compiles air travel data, labor statistics, telecommunication, environmental, tourism figures, health data and economic data on 119 countries from IATA, ICAO, the World Bank, Unesco, UN Tourism, the World Trade Organization, World Health Organisation, and others.

In context: The Tourism Ministry recently doubled its target for 2030, aiming now to host 150 mn tourist trips after it hit its target last year ahead of schedule. The new 2030 target envisages 80 mn trips by domestic travelers and 70 mn by international travelers.

Neft Alsharq kicks off its IPO book-building process next week with a price range that could raise up to SAR 18 mn

Car oil manufacturer Neft Alsharq is guiding on a price range of SAR 3.00-3.60 per share for its IPO on parallel market Nomu, according to a filing to the exchange. The offering represents 20% of the company’s shares post-listing.

Background: The company is taking a 20% stake to market in an offering that is only open to qualified investors. Investors can place orders for a maximum of 1.2 mn shares, and a minimum of 100 shares each.

Proceeds + market cap: At the top of the range, the offering would see the company raise SAR 18 mn and lock-in a market cap of 90 mn at the start of trading, according to our calculations. Some SAR 2 mn of the proceeds will be channeled towards covering the offering’s expenses, while the rest is earmarked to support the company’s growth and working capital needs.

The timeline: Qualified investors can place orders from Sunday, 26 May, through Sunday, 2 June. The final allocation of shares is slated for Thursday, 6 June.

ADVISORS- Yaqeen Capital is serving as the financial advisor and lead manager on this IPO with RSM as the legal accountant. The receiving agents are Alistithmar Capital, Alnima Investment, SNB Capital, AlJazira Capital, Riyad Capital, ANB Capital, Albilad Capital, AlRajhi Capital, Derayah, and Saudi Fransi Capital.

Mohammed Hadi Al Rasheed shares begin trading on Nomu tomorrow

Trading of shares in Riyadh-based construction and mining firm Mohammed Hadi Al Rasheed will begin on parallel market Nomu tomorrow, according to a Tadawul statement. The company is wrapping up an IPO that saw it sell a 12% stake on the parallel market in a secondary share sale.

What to expect on Thursday: Shares will be allowed to trade within a ±30% band on each of the first three days before being capped at no more than 10% up or down after that before circuit breakers kick in. (All shares on Tadawul are subject to the 10% up-or-down rule.)

ADVISORS- Yaqeen Capital is quarterbacking the transaction as lead manager and financial advisor, while RSM is acting as legal council. The underwrites include Derayah, Al Jazira Capital, Albilad Capital, SNB Capital, Alinma Investment, Alistithmar Capital, Riyad Capital, and ANB Capital.

We have a solid IPO pipeline for Nomu: The parallel market’s pipeline this year includes schools operator Horizon Educational, which wrapped up its book-building process earlier this month. Riyadh-based advisor Yaqeen Capital (itself a top advisor on Nomu IPOs, including Mohammed Hadi Al Rasheed’s) recently extended the subscription period for its IPO on Nomu until tomorrow from an initial deadline of Sunday, 12 May. The final allocation of shares is slated for Tuesday, 28 May and refunds are scheduled for Monday, 3 June. Bookbuilding for Leaf Global Environmental Services’ offering will begin next Sunday. Medical supplies outfit Qomel rang the bell on Nomu earlier this month to mark the first day of trading on its shares.

Cabinet gives the greenlight for energy MoU with Pakistan

Cabinet mandated the energy minister to discuss and sign an energy MoU with Pakistan, state news agency SPA reported yesterday. No further details were disclosed.

This could be paving the road for more: Pakistani officials said earlier this month that their country plans to have a number of “major agreements” ready for signing ahead of a Saudi delegation visit to Islamabad. Their statements come amid speculation on when Crown Prince and Prime Minister Mohammed bin Salman would visit Pakistan after a delegation of senior Saudi officials attended a two-day investment conference in the South Asian country.

REMEMBER- Crisis-hit Pakistan is seeking a USD 5 bn investment package from Saudi that was discussed during a meeting between the Crown Prince and Pakistan’s prime minister last month. Saudi has been among key supporters of Pakistan, extending the term of a USD 3 bn in deposit at the State Bank of Pakistan for an additional year to mature in December 2024. This is in addition to USD 2 bn in financial assistance from the Kingdom last year to shore up the country’s finances.

Also approved at yesterday’s Cabinet meeting:

Mandating the environment, water and agriculture minister to discuss and sign an MoU with Tajikistan on environment preservation;
Mandating the transport and logistic services minister to discuss and sign an MoU with Costa Rica on air transport services;
Mandating the interior minister to discuss and sign a MoU with Qatar in training and research activities;
An MoU for logistics services with Djibouti;
A cooperation agreement between the Presidency of State Security and Pakistan’s military intelligence agency on combating terrorism and financing;

US-based network systems company Ciena appoints a new MD for its Saudi arm

NYSE-listed software companyCiena tapped Chris Bayly (LinkedIn) as managing director for Saudi Arabia, it said in a press release. Bayly boasts 30 years of experience and has held leadership positions at Aqua Comms, Colt Technology Services, APTelecom, and Global Cloud Xchange. Ciena has been operational here for 15 years.

Saudi in Japan gets the foreign media’s attention

The Saudi-Japan Vision 2030 business forum dominated coverage of Saudi in the foreign press with ink from Bloomberg and Reuters among others.

Meanwhile, the Kingdom is investing in homegrown sports talent and rather than opting for the naturalization route favored by other Gulf nations, Saudi Olympic Committee Media Chief Abdulaziz Albaqous told Reuters. “Naturalization is an issue that is ultimately subject to circumstances and the stage you have reached,” Albaqous said. “But we prefer to invest in the future, in the generation that already exists to produce champions through a successful sports system,” he said.

Separately, work appears to be underway at Saudi’s first (and the region's largest) water theme park, Aquarabia which was unveiled earlier this month, according to satellite imagery obtained by Newsweek. The park, which is a part of Qiddiya, will be home to 22 water games and attractions, including the world’s first double water loop and roller coaster with the highest jump among other record-breaking water games. It is set to complement Qiddiya’s Six Flags Theme Park.

Amaala is getting an off-grid energy storage project courtesy of L&T and Sungrow. Plus: debt, commodities and construction

RENEWABLES-

Global firms partner for off-grid energy storage project in Amaala: Larsen & Toubro’s (L&T) construction arm is partnering with China-based PV inverter and energy storage system provider Sungrow to deploy 165 MW inverters and 160-760 MWh of battery energy storage systems at an off-grid project in tourism megaproject Amaala, according to a joint statement. The resort’s renewable supply system will have the capacity to generate up to 410k MWh per annum, which is enough to power 10k homes for an entire year.

Background: The Amaala facility will be home to an optimized off-grid renewable energy system supplying solar power with a 700 MWh battery energy storage facility to fully power Amaala’s desalination and wastewater plants. Amaala will be fully powered by solar energy saving c. 500k tons of CO2 emissions per year.

COMMODITIES-

Mawani and global transportation company G4 Logistics have signed a SAR 200 mn agreement to set up silos and warehouses for grain storage at the King Abdulaziz Port in Dammam, the Saudi Ports Authority said on X. The project will cover an area of 100k sqm, the authority said, without providing a timeline.

DEBT WATCH-

The National Debt Management Center closed its May issuance of SAR-denominated sukuk at SAR 3.2 bn, it said in a statement yesterday. The issuance was divided into two tranches, with the first SAR 71 mn tranche maturing in 2029 and the second SAR 3.2 bn tranche maturing in 2036.

CONSTRUCTION-

Sumou Holding subsidiary set to bring Thai sustainable construction tech home: Buna AlMamlaka (Buna) — a subsidiary of local real estate player Sumou Holding — signed an MoU with Thailand’s SCG International to bring sustainable construction technologies to the local market, according to a statement by SCG International. The partnership will see the introduction of some of the Thai cement supplier’s green construction technologies, including the ultra high-performance concrete and its ready mix concrete technology. The agreement comes as SCG International looks to expand its footprint across South Asia, the Middle East and Africa. No financial details were disclosed.

ELECTRICITY-

Keir International was awarded a SAR 77 mn high-voltage transmission line project from the Saudi Electricity Company, it said in a disclosure to Tadawul. The project will see Keir set up a ground line between two stations at Wadi Ad-Dawasir in the southern region and carry out underground cable works, substations, communications and protection works. No timeline for the project was given.

Crypto gains on ETF optimism

Ether jumps on exchange-traded funds speculation: ETH approached its biggest two-day gain in nearly two years as traders await US regulators' decision on spot exchange-traded funds (ETFs) for ETH, Reuters reported.

** Tap or click the headline above to read this story with all of the links to our background and outside sources.

The numbers: The crypto market’s second-largest player was up 7.3% yesterday to sit at USD 3.7k as of midnight. BTC also neared its all-time high on Tuesday, closing at USD 79.7k. BTC has surged 65% in 2024, closely trailed by ETH, which has gained 63%.

Driving the rally: Investors are keeping a close eye on the US Securities and Exchange Commission's (SEC) decision regarding ETH ETFs, expected this week, the Financial Times writes. “The political dynamics around crypto in Washington were shifting, after 18 months of regulatory crackdowns and Democrat-led blocks to regulation,” Bernstein analyst Gautaum Chhugani.

Remember: Investors poured some USD 900 mn into BTC ETFs in the three days after the SEC greenlit the funds.

Also worth knowing about this morning:

Our friends at EFG Hermes have acquired an undisclosed minority stake in the Danish digital wealth manager Kenzi Wealth. EnterpriseAM Egypt has more.
Blackstone will grant equity to rank-and-file employees of the companies in which it invests in the United States going forward. The private equity giant’s plan is “part of a broader movement in the buyout industry to expand ownership beyond management ranks. (Wall Street Journal)

MARKETS THIS MORNING-

Asian markets are largely unchanged in early trading this morning. Alone among major benchmarks, Japan’s Nikkei is down (-0.75%) while the Hang Seng, Kospi, and Shanghai Composite are all holding their ground. European and US futures were also pretty much flat overnight after US shares notched fresh highs again yesterday.

One weird thing: With all of these fresh highs being hit, there are virtually no headlines out there with random pundits called upon to declare that a correction is in the cards. Heck, even the so-called “fear index” — the Vix, or volatility index — is trading at a five-year low.

TASI	12,122	0.00% (YTD: +1.3%)
MSCI Tadawul 30	1,520	+0.4% (YTD: -2.0%)
NomuC	26,933	-0.4% (YTD: +9.8%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	27,225	0.0% (YTD: +9.4%)
ADX	9,009	-0.3% (YTD: -5.9%)
DFM	4,075	+0.2% (YTD: +0.4%)
S&P 500	5,321	+0.3% (YTD: +11.6%)
FTSE 100	8,416	-0.1% (YTD: +8.8%)
Euro Stoxx 50	5,047	-0.5% (YTD: +11.6%)
Brent crude	USD 82.88	-1%
Natural gas (Nymex)	USD 2.66	-0.3%
Gold	USD 2,448	0.00%
BTC	USD 70,093	+0.6% (YTD: +66.6%)

THE CLOSING BELL: TADAWUL-

The TASI was flat yesterday on turnover of SAR 5.4 bn. The index is up 1.3% YTD.

In the green: Al Rajhi Takaful (+9.9%), Retal (+5.3%) and Medgulf (+4.7%).

In the red: Al Baha (-7.1%), Al Babtain (-4.5%) and Al Saif Gallery (-4.2%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.4% yesterday on turnover of SAR 36 mn. The index is up 9.8% YTD.

In the green: Riyadh Steel (+16.7%), Quara (+5.4%) and Future Care (+4.7%).

In the red: Naseej Tech (-9.7%), Nofoth (-9.1%) and Pro Medex (-6.6%)

CORPORATE ACTIONS-

The board of petrochemicals giant Sabic approved the distribution of SAR 5.1 bn in dividends for the first half of 2024 at SAR 1.70 per share, it said in a disclosure to Tadawul.

Tadawul-listed Taiba Investment approved the distribution of a SAR 169.3 mn dividend for 2023 at SAR 0.65 a piece, it said in a statement (pdf).

The Arab National Bank is set to increase its capital to SAR 20 bn through the capitalization of SAR 5 bn from retained earnings, by issuing one new share for every 3 shares owned to enhance the bank’s solvency, according to its statement (pdf).

The board ofAmlak International Finance greenlit a capital hike to SAR 1 bn through capitalizing SAR 101.9 mn from statutory reserves and SAR 11.3 mn from retained earnings, and by granting one new share for every eight shares owned, it said in a statement (pdf).

Saudi and Qatar mull strengthening security cooperation

Saudi and Qatar discussed boosting security cooperation during a meeting of the security and military committee set up under the Saudi-Qatari coordination council, according to the Saudi Gazette. The meeting in Riyadh was co-chaired by Interior Minister Prince Abdulaziz bin Saud bin Naif bin Abdulaziz and Qatar’s Deputy Prime Minister and State Minister for Defense Khalid bin Mohamed Al Attiyah.

CALENDAR

MAY

20-22 May (Monday-Wednesday): Future Aviation Forum, Riyadh.

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

21-23 May (Tuesday-Thursday): WAGA 2024, Riyadh.

25 May (Saturday): Bidding deadline for Duba’s seawater reverse osmosis desalination plant in Tabuk.

26-27 May (Sunday-Monday): Bookbuilding for retail investors in Smasco IPO.

27-28 May (Monday-Tuesday): Smart Data & AI Summit Saudi, JW Marriott Hotel, Riyadh.

29 May (Wednesday): Sanabil 500 MENA seed accelerator demo day, Four Seasons Hotel, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

1 June (Saturday): OPEC+ meeting.

2-3 June (Sunday-Monday): Global Project Management Forum, Riyadh.

4-7 June (Tuesday-Friday): Saudi Sports Show, Riyadh.

4-7 June (Tuesday-Friday): Aqarat Expo, Riyadh.

5 June (Wednesday): World Environment Day.

5 June (Wednesday): The Optimism Forum, Cairo, Egypt.

5 June (Wednesday): Digital Transformation Summit, Riyadh.

14-22 June (Friday-Saturday): Banks and capital markets closed for Eid Al Adha holiday.

AUGUST

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

SEPTEMBER

10-12 September (Tuesday-Thursday): Global AI Summit, Riyadh.

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

17-19 September (Tuesday-Thursday): EV Auto Show, Riyadh.

18-19 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam.

24-26 September (Tuesday-Thursday) Saudi Infrastructure Expo, Riyadh International Convention and Exhibition Center, Riyadh.

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

OCTOBER

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh.

31 October (Thursday): No-visa travel for Saudis to Montenegro on charter flights expires.

NOVEMBER

2-9 November (Saturday- Saturday): WTA Finals, Riyadh.

26-28 November (Tuesday-Thursday): Saudi Electricity Expo, Riyadh.

11-14 November (Monday-Thursday): Cityscape Global, Riyadh.

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Dammam.

25-27 November (Monday-Wednesday): World Investment Conference, Riyadh.

26-28 November (Tuesday-Thursday): Saudi Electricity Expo, Riyadh.

DECEMBER

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

11 December (Wednesday): FIFA Congress, which will decide the hosting countries for the FIFA World Cup 2030 and 2034

Signposted to happen sometime in 2024:

The AFC Champions League Elite

2025

FEBRUARY 2024

10-13 February (Monday-Thursday): Leap 2025, the Kingdom’s premier tech investment conference.

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