{"id":90800,"date":"2024-10-23T00:00:00","date_gmt":"2024-10-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/10\/23\/blackrock-to-develop-mortgage-backed-securities-market-in-saudi\/"},"modified":"2024-10-23T00:00:00","modified_gmt":"2024-10-23T00:00:00","slug":"blackrock-to-develop-mortgage-backed-securities-market-in-saudi","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/10\/23\/blackrock-to-develop-mortgage-backed-securities-market-in-saudi\/","title":{"rendered":"BlackRock to develop mortgage-backed securities market in Saudi"},"content":{"rendered":"

Good morning, wonderful people.<\/strong> It\u2019s shaping up to be a rather busy Wednesday as we race towards the weekend, with plenty of updates both here at home and on the global stage. <\/p>\n

BUT FIRST- The government has tapped BlackRock to \u201cdevelop a market for <\/strong>mortgage-backed securities\u201d<\/strong> in a bid to make housing more affordable, BlackRock CEO Larry Fink said, according to Bloomberg<\/a>. \u201cSpreads are much wider than if there was a securitization market,\u201d Fink said. \u201cIt would be much narrower and the homeowners would benefit, so the cost of home ownership would go down.\u201d The fund manager chief did not provide further details. <\/p>\n

<\/a> SEPARATELY- <\/strong>PIF-backed Lucid\u2019s follow-on public offering raised USD 1.75 bn<\/strong>, coming in above the USD<\/a>1.67 bn<\/a> figure initially expected, Lucid CEO Peter Rawlinson tells Reuters<\/a>. The figure includes proceeds from PIF\u2019s purchase of an added 374.7 mn shares<\/a> in the luxury EV maker in a private placement. <\/p>\n

Use of proceeds: <\/strong>The transaction gives Lucid cashflow runway \u201cwell into 2026,\u201d Rawlinson said. The raised funds will support product development, a new plant in Saudi, and expansion works at the firm\u2019s Arizona facility.<\/p>\n

HAPPENING TODAY-<\/p>\n

<\/a> Finance Minister Mohammed Aljadaan is leading the Saudi delegation at the annual <\/strong>IMF \/ World Bank meeting,<\/strong> underway in Washington, DC, through 26 October, state news agency SPA<\/a> reports. Aljadaan will chair the International Monetary and Financial Committee (IMFC) session, focusing on global economic dynamics and the IMF\u2019s strategic role in supporting member states.<\/p>\n

The delegation includes Saudi Central Bank Governor Ayman Alsayari<\/strong>, Vice Minister of Finance Abdulmuhsen Alkhalaf, Deputy Minister for International Affairs Khalid Bawazier, and Ryadh Alkhareif, who serves as deputy chair of the International Monetary and Financial Committee.<\/p>\n

On the agenda: <\/strong>Aljadaan and Alsayari will also participate in the G20 Finance Ministers and Central Bank Governors meeting, chaired by Brazil, where discussions will address global economic headwinds and explore avenues for deeper multilateral cooperation.<\/p>\n

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WEATHER- Riyadh <\/strong>is looking at a high of 34\u00b0C and a low of 22\u00b0C today. Over in Jeddah<\/strong>, the temperature will peak at 36\u00b0C before dropping to 28\u00b0C. Meanwhile, Madinah <\/strong>will see a high of 37\u00b0C and a low of 24\u00b0C.<\/p>\n

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PSA- <\/p>\n

The Industry and Mineral Resources Ministry is accepting bids for seven new <\/strong>mining<\/strong> exploration licenses across Makkah and Riyadh<\/strong>, covering an area of nearly 1.1k sq km, it said in a post on X<\/a>. Bidding through the ministry\u2019s Taadeen platform<\/a> is open to both local and international investors, and is set to run until mid-November. The sites have reserves of key minerals including gold, copper, zinc, and silver. <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- <\/strong>Saudi eyes stake in Doha-based BeIN Sports: <\/strong>The Kingdom has reportedly been engaged in intermittent talks to secure a stake in Qatar\u2019s global media group BeIN Sports \u2014 the Premier League rights-holder for the Middle East and Africa \u2014 since it took over Newcastle in 2021, the Telegraph<\/a> reports.<\/p>\n

#2- <\/strong>Abeer Medical Group is eyeing a Tadawul IPO in the next five years<\/strong>,<\/strong> Argaam<\/a> quotes Chairman Mohammed Alungal as saying. The Jeddah-based group \u2014 which currently operates some 22 clinics, pharmacies and optical stores around the country \u2014 is looking to expand to 60 clinics and add five new hospitals to its portfolio, he said.<\/p>\n

#3- <\/strong>The Saudi-Portuguese Business Council is pushing for a new direct flight <\/strong>between <\/strong>the <\/strong>two countries<\/strong>, the Federation of Chambers of Commerce post said on X<\/a>. Discussions are already underway between the General Authority for Civil Aviation (GACA) and Saudia Airlines to kick off the new route. <\/p>\n

#3- The Gulf Cooperation Council (GCC) is currently in talks with India over terms of<\/strong> references for a freetrade agreement <\/strong>ahead of initiating formal talks, the GCC secretariat told Aleqtisadiah<\/a>. The GCC has agreed<\/a> on terms of reference with Japan and Malaysia.<\/p>\n

#4- US-<\/strong>based AI chip startup <\/strong>Kneron<\/a><\/strong> is looking to set up a regional <\/strong>office in the Kingdom<\/strong>, Bloomberg<\/a> reports, citing an investor presentation it saw. The regional office comes as part of a plan for the Taiwanese-US firm to raise USD 300 mn from an upcoming funding round, which would also push the company\u2019s valuation to around USD 1 bn, the business information service reported, citing people familiar with the matter. Kneron also plans to launch a research and development lab here at home.<\/p>\n

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DATA POINTS-<\/p>\n

Consumer spending via point-of-sale transactions in the Kingdom fell 7.5% w-o-w for the<\/strong> week ending 19 October at SAR 11.4 bn, <\/strong>according to the Saudi Central Bank (Sama)\u2019s weekly POS report (pdf)<\/a>. Meanwhile the number of transactions was down 4.9% at 198.2k.<\/p>\n

The breakdown:<\/strong> Restaurants and cafes saw the highest spending during the week, despite falling 4.4% w-o-w at SAR 1.77 bn, followed by food and beverages at SAR 1.74 bn, down 4.4%. Meanwhile, Riyadh had the highest value of PoS transactions at SAR 3.99 bn, followed by Jeddah at SAR 1.6 bn.<\/p>\n

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SPORTS-<\/p>\n

Al Hilal triumphs over Al Ain in 9-goal thriller: <\/strong>Al Hilal dispatched the UAE\u2019s AFC Champions League Elite title holders Al Ain on their own turf in a 5-4 victory that featured two hat tricks \u2014 one from Al Ain\u2019s Soufiane Rahimi and another from our own Salem Aldawsari, according to Reuters<\/a>.<\/p>\n

ALSO- Neymar made a comeback as a substitute in the 77th minute<\/strong>, following a year on the sidelines due to an ACL tear.<\/p>\n

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THE BIG STORY ABROAD- <\/p>\n

It\u2019s a mixed bag on the front pages of the foreign press today<\/strong>, with more talk of a potential ceasefire in the region continuing as US Secretary of State Antony Blinken touches down in Jerusalem for a meeting with Prime Minister Benjamin Netanyahu, more US elections news, and a smattering of business updates. <\/p>\n

Blinken and Netanyahu agreed that the killing of Hamas Leader Yahya Sinwar over the weekend opens up possibilities for the end of the war in Gaza<\/strong>, though the meeting seemed to yield no clear plans for what\u2019s to come, Bloomberg<\/a> reports. <\/p>\n

Israel <\/strong>confirmed<\/a><\/strong> for the first time that it had killed Hezbollah\u2019s suspected successor<\/strong>, Hashem Safieddine, in airstrikes on Lebanon earlier this month, along with another Hezbollah commander. (Financial Times<\/a> | NY Times<\/a> | The Guardian<\/a>) <\/p>\n

OVER IN THE US- It\u2019s not a great time for The Donald<\/strong>, who just two weeks ahead of elections is still behind in polls<\/a> that put rival Kamala Harris marginally in the lead. A Republican appeal of a decision blocking a new rule that would have required poll workers to hand-count ballots was also blocked<\/a> by a top Georgia court. Meanwhile, Trump is accusing the UK Labor Party of \u201cforeign interference\u201d and aid of Harris\u2019 campaign. (BBC<\/a> | FT<\/a> | The Guardian<\/a>) <\/p>\n

IN BUSINESS NEWS-<\/strong> A few headlines are getting attention: <\/p>\n