{"id":87366,"date":"2024-06-27T00:00:00","date_gmt":"2024-06-27T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/06\/27\/mizuho-japans-second-largest-bank-will-make-riyadh-its-regional-headquarters\/"},"modified":"2024-06-27T00:00:00","modified_gmt":"2024-06-27T00:00:00","slug":"mizuho-japans-second-largest-bank-will-make-riyadh-its-regional-headquarters","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/06\/27\/mizuho-japans-second-largest-bank-will-make-riyadh-its-regional-headquarters\/","title":{"rendered":"Mizuho, Japan\u2019s second-largest bank, will make Riyadh its regional headquarters"},"content":{"rendered":"

Good morning, friends. We made it through another workweek together<\/strong> and our reward is a nice, relaxing weekend. We have a packed issue to send you into the final workday of the week, with plenty of investment and M&A news and yet another miller set to IPO. <\/p>\n

BUT FIRST, a look at what\u2019s happening today <\/strong>and into the weekend:<\/p>\n

<\/a> #1- Leaf Global Environmental Services shares begin trading on the Nomu parallel <\/strong>market <\/strong>today<\/strong>, Tadawul said in a statement<\/a>. The Jeddah-based environment consultant is selling a 30% stake<\/a> in an offering that was 1.25x oversubscribed, according to Argaam<\/a>. Leaf Global\u2019s shares will debut at SAR 50.0 apiece.<\/p>\n

ADVISORS-<\/strong> Al Khair Capital is quarterbacking the transaction as financial advisor and lead manager.<\/p>\n

Speaking of IPOs: Shares of Riyadh-based advisor, brokerage house, and asset manager <\/strong>Yaqeen Capital closed in red<\/strong> on their first day of trading on parallel market Nomu. Yaqeen shares dropped 19.4% to SAR 32.30 at yesterday\u2019s close. The firm, itself a top advisor on Nomu IPOs, took a 20% stake<\/a> to market.<\/p>\n

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#2- A Saudi delegation is in Washington for a meeting of the Saudi-US Trade and Investment <\/strong>Council<\/strong>, which kicked off on Sunday and wrap up tomorrow. The delegation, led by Saudi General Authority of Foreign Trade (SGAFT) Deputy Governor Abdulaziz Alsakran, also includes reps from the Public Investment Fund as well as the commerce, energy, investment, education, tourism, and industry ministries. Some 20 Saudi agencies are there.<\/p>\n

<\/a> #3- Our friends at the US Chamber of Commerce <\/strong>are hosting tomorrow a Friday a private-sector meeting on the sidelines of the government-to-government TIFA meeting. We\u2019ll have more on that next week. <\/p>\n

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#4- A Saudi delegation is at the <\/strong>2024 Global Logistics Forum<\/a><\/strong>, which is on its last day <\/strong>today in Shanghai.<\/strong> The delegation includes representatives from the transport and logistics services and investment ministries, the Transport General Authority, Mawani, and Saudi Arabia Railways, among several others. <\/p>\n

#5- The World Economic Forum\u2019s \u201cannual meeting of the new champions\u201d <\/strong>continues this morning. You can live stream select public sessions here<\/a>, with topics including Chinese innovation, healthcare analytics, and US-China relations.<\/p>\n

#6- The <\/strong>Mechanical Circulatory Support Conference<\/a><\/strong> kicks off today in Riyadh<\/strong> at the King Salman Auditorium at King Faisal Specialist Hospital and Research Centre. The event, which wraps this Saturday, brings together medical professionals from around the world in over 20 interactive scientific meetings, discussion sessions, and workshops. <\/p>\n

#7- In Geneva? Love camels? <\/strong>A Saudi exhibition on camels and their contribution to food security and economic growth runs in Geneva over the weekend, state news agency SPA<\/a> writes. The four-day exhibition is organized by the Kingdom\u2019s permanent mission to Geneva, which is working with Bolivia to bring the show to life.<\/p>\n

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WEATHER- Riyadh and Makkah are looking at a daytime high of 45\u00b0C today and a <\/strong>nighttime low of 30\u00b0C. <\/strong>Meanwhile in Madinah, the mercury will peak at 46\u00b0C before dropping to a balmy 29\u00b0C. <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- Mizuho is coming to town: <\/strong>Japan\u2019s second-largest bank, Mizuho, is set to open its regional headquarters in the Kingdom after receiving a license from the Investment Ministry, Bloomberg<\/a> reports. The report did not include details of how large an operation Mizuho is looking to plant here. <\/p>\n

Mizuho currently runs its Saudi business out of Dubai<\/strong> and has taken pieces of debt capital market transactions for clients including the Public Investment Fund (PIF), the Finance Ministry, and Aramco, among others. It has had an investment banking license in Riyadh since 2009.<\/p>\n

BACKGROUND-<\/strong> Earlier this year, the government rolled out tax incentives<\/a> for foreign companies that relocate their regional headquarters to the Kingdom \u2014 and state institutions are helping with the push<\/a>. The incentives are part of a plan that is a cornerstone of Crown Prince and Prime Minister Mohammed bin Salman\u2019s drive to build a diversified, globally significant non-oil economy, and has been in the works since February 2021. <\/p>\n

It\u2019s helping <\/strong>turbocharge<\/a><\/strong> real estate prices<\/strong>, which continue to drive inflation as dozens of big global companies including Goldman Sachs<\/a>, Merck<\/a>, and EY<\/a> name Riyadh their regional headquarters.<\/p>\n

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<\/a> #2- <\/strong>The Kingdom is looking to attract some 5 <\/strong>mn Chinese<\/strong> tourists by 2030<\/strong>, up from 100k visitors from the country last year, Saudi Tourism Society Chairman Emad Monshi told Asharq Business (watch, runtime: 7:48<\/a>) on Tuesday. China spends over USD 250 bn on tourism-related activities every year, he added. <\/p>\n

IN CONTEXT- Earlier this week, China added Saudi to its list of countries with an <\/strong>\u201capproved <\/strong>destination status.\u201d <\/strong>The ADS<\/a>label<\/a>, which comes into effect on Monday, 1 July, means that Saudi is now on the list of countries to which Chinese tour agencies can organize group trips. The Saudi Tourism Authority has also worked to facilitate visas, improve air connectivity, and ensure Chinese tourists will be able to access travel information on Visit Saudi<\/a> in Mandarin, Tourism Minister Ahmed Al Khateeb said.<\/p>\n

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#3- The General Authority for Competition (GAC) took legal action last year against 107 <\/strong>car distributors it said had engaged in market manipulation<\/strong>, it said in its annual report (pdf)<\/a>. Seventeen companies made requests to settle the charges. The authority accused the distributors of offenses including price-fixing and bids to lock some distributors out of specific geographical areas. <\/p>\n

BACKGROUND-<\/strong> GAC has been cracking down<\/a> on car distributors and dealerships whose practices the authority claims had been driving up the price of cars. That drive may be working: New vehicle prices fell 4.1% y-o-y in April<\/a>, the latest month for which inflation figures are out. <\/p>\n

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#4- <\/strong>International flight bookings to Saudi climbed 57% y-o-y in the days following the Eid <\/strong>Al <\/strong>Adha holiday<\/strong>, at an average cost of USD 207 a seat, online travel platform Wingie<\/a> reports. Travelers from Egypt, Turkey, Germany, India, and the UAE are the big drivers of demand as the Kingdom gears up to host some of its biggest summer events this season, Wingie said. <\/p>\n

What are people coming in for?<\/strong><\/p>\n