{"id":93352,"date":"2025-01-14T00:00:00","date_gmt":"2025-01-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/01\/14\/future-minerals-forum-kicks-off-today\/"},"modified":"2025-01-14T00:00:00","modified_gmt":"2025-01-14T00:00:00","slug":"future-minerals-forum-kicks-off-today","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/01\/14\/future-minerals-forum-kicks-off-today\/","title":{"rendered":"Future Minerals Forum kicks off today"},"content":{"rendered":"

Good morning, wonderful people.<\/strong> It\u2019s a somewhat busy day here in the Kingdom, led in large part by capital markets and forward-looking views on the Saudi economy. Expectations on non-oil GDP growth and the IPO pipeline lead this morning\u2019s news well, with twin forecasts from Al Rajhi Capital and Century Financial. <\/p>\n

HAPPENING TODAY-<\/p>\n

<\/a> The <\/strong>Future Minerals Forum<\/a><\/strong> kicks off in just a couple of hours at Riyadh\u2019s <\/strong>King Abdulaziz <\/strong>International Conference Center.<\/strong> The highly-anticipated event is set to host some 14k participants from over 178 countries, bringing together government officials, senior execs, industry experts, investors, and other stakeholders to hold discussions on sustainability, advanced technologies, and mining value chains. The event will run until Thursday, 16 January. <\/p>\n

AND- <\/strong>The forum will feature an invite-only ministerial roundtable and a mineral exploration hub, where discussions on mining and development trends will take place. You can find out more from the event\u2019s detailed brochure (pdf)<\/a>. <\/p>\n

WEATHER- <\/strong>Another chilly day in Riyadh, with a high of 18\u00b0C and a low of 7\u00b0C. In Makkah, temperatures will peak at 32\u00b0C before dipping to 17\u00b0C. Meanwhile, Jeddah will get a high of 32\u00b0C and a low of 22\u00b0C.<\/p>\n

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PSAs- <\/p>\n

The new regulations for joint Saudi-Foreign business councils and customs consulting <\/strong>profession licensing controls are up for public discussion on <\/strong>Istitlaa<\/a><\/strong>, along with proposed regulations, the National Competitiveness Center said in a post on X<\/a>.<\/p>\n

WATCH THIS SPACE-<\/p>\n

#1- Riyad Capital IPO moving forward?<\/strong> PIF-backed lender Riyad Bank has reportedly tapped JPMorgan Chase to work on the IPO of its investment banking arm Riyad Capital, Bloomberg Law<\/a> reports, citing people with knowledge of the matter. The PIF owns a 21.8% stake in Riyad Bank, while the government holds a 10.4% stake.<\/p>\n

Riyad Capital could go public \u201cas early as mid-2025\u201d and the firm could be valued at USD<\/strong> 2.5 bn<\/strong> at the time of the transaction, although the size, value, and exact timeline of the IPO remain undecided. <\/p>\n

The first spin-off of its kind:<\/strong> An IPO would see Riyad Capital operate as a distinct unit from its parent company, making Riyad Bank the first local lender to spin-off its investment banking unit. Riyad Bank first disclosed its plans for the IPO last April<\/a>.<\/p>\n

<\/a> #2- The Kingdom is getting ready to enrich, sell uranium:<\/strong> Saudi Arabia is looking to monetize all of its mineral resources, including uranium, and eventually expand its nuclear program to include the radioactive heavy metal, Energy Minister Prince Abdulaziz bin Salman said at a conference in Dharan, according to Reuters<\/a>. \u201cWe will enrich it, we will sell it and we will do a \u2018yellowcake,\u2019\u201d he said. Enriching uranium for nuclear power comes as the government looks to diversify its energy mix.<\/p>\n

SOUND SMART- In industry speak, yellowcake refers to a powdered concentrate of<\/strong> uranium ore<\/strong>, which is used to prepare uranium fuel for nuclear reactors used in power generation. <\/p>\n

REMEMBER- <\/strong>The Kingdom submitted a request to the International Atomic Energy Agency back in September 2024<\/a> to implement a stricter nuclear oversight program \u2014 the Comprehensive Safeguards Agreement \u2014 allowing for more thorough inspections into domestic nuclear facilities to ensure they are used only for peaceful purposes.<\/p>\n

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<\/a> #3- Ma\u2019aden and Alba scrap merger talks: <\/strong>Saudi Arabian Mining Company (Ma\u2019aden) and Aluminum Bahrain (Alba) have terminated discussions on a potential merger via share swap after kicking off due diligence<\/a> in November, Ma\u2019aden said in a filing to Tadawul<\/a>. No reason was provided for the discontinuation of discussions. <\/p>\n

Background:<\/strong> The now-terminated transaction would have seen Ma\u2019aden swapping stakes in its subsidiaries \u2014 Ma\u2019aden Aluminium Company, Ma\u2019aden Bauxite and Alumina Company, and related marketing rights\u2014 for new shares in Alba amounting to a 51% stake. The story also got ink in Bloomberg<\/a>.<\/p>\n

Still going ahead: <\/strong>Ma\u2019aden inked a separate share purchase agreement in September to acquire Sabic\u2019s entire 20.6% stake<\/a> in the Bahraini aluminium smelter.<\/p>\n

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#4- <\/strong>France\u2019s <\/strong>Engie SA<\/a><\/strong> is gearing up to compete in Saudi Arabia\u2019s sixth round of<\/strong> renewable <\/strong>energy tenders<\/strong>, in a bid to secure four solar projects with a combined capacity of 3 GW, as well as wind projects totaling 1.5 GW, Engie\u2019s MD Francois Xavier Boul tells Bloomberg<\/a>. Despite Engie already operating in the Gulf, it faced \u201caggressive\u201d competition, recently losing a bid last year for 3.7 GW solar contracts in Saudi Arabia. The utility firm is also looking to expand its footprint in the UAE and Egypt, it added.<\/p>\n

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#5- Saudi Arabia is expected to add 4-5 mn sq ft of office space to its commercial real<\/strong> estate sector <\/strong>in 2H 2025<\/strong> to meet growing demand, CBRE Head of Consulting for Saudi Arabia Elias Bou Habib told Bloomberg (watch, runtime: 5:48)<\/a>. Despite the anticipated influx of new office space, demand and rental prices are expected to remain robust.<\/p>\n

IN CONTEXT- <\/strong>Business relocations to Saudi regional headquarters have spiked office space demand, resulting in 98% occupancy rates and driving rents up 20% on an annual basis, Habib said. Riyadh saw a 31% increase in real estate transactions in 2024, with villa prices up 5% and apartment prices rising 4%, driven by population growth and an influx of expatriates, he added.<\/p>\n

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#6- Saudi Arabia is among 120 countries that will be affected by new rules limiting US<\/strong> exports of AI chips<\/strong>, Reuters<\/a> reports. The limits will also apply to the UAE, Israel, Singapore, and several others, while arms-embargoed countries \u2014 such as Russia and China \u2014 are now banned from receiving any chips at all. Some 18 countries \u2014 including the UK, the Netherlands, Japan, and South Korea \u2014 are exempt from these restrictions<\/p>\n

#7- Yanbu and Riyadh Cement project production cost hikes as fuel prices go up: <\/strong>Yanbu Cement estimated that Aramco\u2019s latest fuel hike<\/a> will drive a 10% increase to its production cost, while Riyadh Cement estimated a 9.6% increase, according to separate disclosures to Tadawul (here<\/a> and here<\/a>).<\/p>\n

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

Gaza ceasefire breakthrough?<\/strong> Israel-Hamas ceasefire talks in Doha are nearing fruition, officials involved with the talks say, with US President Joe Biden saying they are \u201con the brink\u201d of a breakthrough. A draft agreement for the exchange of prisoners and the gradual withdrawal of Israeli troops from Gaza was presented to both sides yesterday, with another round of talks taking place today in Doha. Officials from both sides have confirmed that talks are progressing well. (Bloomberg<\/a> | Reuters<\/a> | FT<\/a> | Semafor<\/a>)<\/p>\n

The goal is now to reach an agreement before US president-elect Donald Trump\u2019s inauguration next week<\/strong>, officials said. Vice President-elect JD Vance said he hopes an agreement could be struck toward the final days of Biden\u2019s administration. <\/p>\n

Meanwhile, the US\u2019 new AI export caps are getting plenty of attention:<\/strong> The US imposed export controls on chips used for AI, giving 20 close allies access to chips and restricting access to 120 countries, including China, Iran, and Russia. <\/strong><\/p>\n

The semiconductor industry is not happy with the new export control regime, and neither is the EU.<\/strong> The European Commission said it is \u201cconcerned\u201d about the new measures, while industry leaders like Nvidia criticized<\/a> the move as potentially harmful to \u201cAmerica\u2019s global competitiveness.\u201d (FT<\/a> | Reuters<\/a> | WSJ<\/a>) <\/p>\n

Also getting attention: <\/strong><\/p>\n