{"id":103859,"date":"2026-01-08T00:00:00","date_gmt":"2026-01-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/?p=103859"},"modified":"2026-01-08T04:13:08","modified_gmt":"2026-01-08T04:13:08","slug":"saudi-pakistan-in-talks-to-convert-loans-to-military-equipment-supply-agreement","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/08\/saudi-pakistan-in-talks-to-convert-loans-to-military-equipment-supply-agreement\/","title":{"rendered":"Saudi, Pakistan in talks to convert loans to military equipment supply agreement"},"content":{"rendered":"

Good morning and a very happy THURSDAY to you all.<\/strong> The first full workweek of the year is coming to a close with a rather busy issue, led by a healthy mix of politics and diplomacy, debt, and more. <\/p>\n

After the government kicked off its 2025 borrowing earlier this week, Saudi corporates<\/strong> are getting into the game<\/strong> as well with international debt sales and programs. Riyad Bank and Al Rajhi Bank each kicked off international debt issuances \u2014 both of which are set to close today \u2014 while stc rolled out a USD 5 bn sukuk program. <\/p>\n

ALSO-<\/strong> We\u2019re rounding out our Year in Review coverage with a rundown of the 2025 macroeconomic mix for Saudi Arabia. <\/p>\n

^^ We have these stories and more in this morning\u2019s news well, below.<\/p>\n

WATCH THIS SPACE-<\/p>\n

YEMEN \u2014 The Saudi-backed Presidential Leadership Council (PLC) expelled the leader of the <\/strong>Southern Transitional Council from Yemen\u2019s internationally recognized government<\/strong> after he failed to show up to talks planned in Riyadh that aimed to find a resolution to the escalation in the country\u2019s south, the Washington Post<\/a> reports. <\/p>\n

PLC also referred Aidarous Al Zubaidi to the public prosecutor on charges of high <\/strong>treason and armed rebellion<\/strong>, according to state news agency SPA<\/a>. Al Zubaidi was set to visit<\/a> Riyadh for talks after PLC Chairman Rashad Al Alimi urged Riyadh to host a conference bringing together all Yemeni factions \u2014 including the STC \u2014 to resolve the crisis in the south. He was reported to have fled<\/a> to an unknown location, although STC officials insisted their leader remained in the southern capital to oversee operations, Reuters<\/a> reported. Shortly after, the coalition launched strikes in Dhale \u2014 Al Zubaidi\u2019s home region. <\/p>\n

Yemen\u2019s Saudi-backed government took back control of most of the key parts of <\/strong>southern Yemen<\/strong>, after the STC \u2014 which has in the past been backed by the UAE \u2014 had earlier seized the areas. <\/p>\n

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<\/a> DIPLOMACY \u2014 Saudi Arabia is reportedly in talks with Pakistan to convert USD 2 bn of <\/strong>its loans to Islamabad into a military equipment supply agreement<\/strong>, Reuters<\/a> reports, citing two unnamed Pakistani sources. The sources indicate that several options are currently on the table, including Pakistan providing JF-17 Thunder fighter jets \u2014 which it developed with China and manufactures domestically. The exact value of the potential agreement remains unclear, with one source suggesting the total value \u201cwas worth USD 4 bn, with an additional USD 2 bn to be spent on equipment over and above the loan conversion.\u201d <\/p>\n

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<\/a> ENTE<\/strong>RTAINMENT \u2014 Qiddiya is planning to roll out a new asset every quarter \u2014 and <\/strong>Aquarabia<\/a><\/strong> is slated<\/strong> for March<\/strong>, Managing Director of Qiddiya Investment Company Abdullah Al Dawood said (watch, runtime: 1:37:18<\/a>). The water park is slated to open its doors on 19 March to capture Eid Al Fitr traffic, following the commercial launch of Six Flags Qiddiya City last week<\/a>. <\/p>\n

The accelerated timeline serves as the runway for Qiddiya\u2019s <\/strong>three-stage masterplan<\/a><\/strong>.<\/strong> Phase 1 is racing toward a 2023 completion date, focusing on \u201cactive\u201d entertainment, including the speedway, the National Tennis Center, golf courses, and some 15 hotels. The subsequent phases are expected to pivot toward cultural and niche assets, where the second phase will add a performing arts center, Dragon Ball Park, an esports arena by 2030. The third phase will align with the 2034 World Cup and the Asian Games.<\/p>\n

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<\/a> CAPITAL MARKETS \u2014 ASG Plastic Factory is looking to graduate to the big<\/strong> leagues<\/strong>, with its board approving a transition from Tadawul\u2019s parallel market Nomu to the main market yesterday, according to a disclosure<\/a>. The move, which sees Estidamah Capital appointed as financial advisor, is a strategic play for deeper liquidity and a broader investor base.<\/p>\n

What it takes: <\/strong>To transition from Nomu to the main market, a company must have been listed on Nomu for at least two years and satisfy all main market listing conditions \u2014 except for market capitalization, where a lower threshold of an average SAR 200 mn over the past six months applies. <\/p>\n

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DATA POINTS-<\/p>\n

SAR 17 bn \u2014 that\u2019s the total value of c<\/strong>onsumer spending via point-of-sale (PoS) in the<\/strong> Kingdom in the week ending 3 January<\/strong>, up 30.6% w-o-w, according to the Saudi Central Bank\u2019s latest weekly report (pdf)<\/a>. New year festivities and the resumption of the academic term appear to be the drivers for the jump, also pushing the number of transactions up 15.7% w-o-w to 255.4 mn.<\/p>\n

The breakdown:<\/strong> <\/p>\n