{"id":97239,"date":"2025-05-21T00:00:00","date_gmt":"2025-05-21T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/05\/21\/pif-rumored-to-be-planning-project-paradise-budget-no-longer-driven-by-oil-economy-minister-says\/"},"modified":"2025-05-21T00:00:00","modified_gmt":"2025-05-21T00:00:00","slug":"pif-rumored-to-be-planning-project-paradise-budget-no-longer-driven-by-oil-economy-minister-says","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/05\/21\/pif-rumored-to-be-planning-project-paradise-budget-no-longer-driven-by-oil-economy-minister-says\/","title":{"rendered":"PIF rumored to be planning \u201cProject Paradise\u201d + Budget no longer driven by oil, Economy Minister says"},"content":{"rendered":"

Good morning<\/strong>, wonderful people. Business is back to taking a breather in this morning\u2019s issue after last week\u2019s flurry of activity.<\/p>\n

In today\u2019s (light) issue: <\/strong>The IsDB Group has committed bns in development financing for Algeria and Senegal, while Naif Alrajhi and Morocco\u2019s biggest developer TGCC are set to collaborate on construction projects.<\/p>\n

ALSO- <\/strong>Lunate and Brookfield have launched a USD 1 bn JV to invest in Saudi and UAE real estate. Meanwhile, the Kingdom\u2019s capital markets are seeing significant growth, with assets under management surpassing SAR 1 tn for the first time.<\/p>\n

HAPPENING TODAY-<\/p>\n

#1- <\/strong>Alinma Bank st<\/strong>arted receiving subscriptions for its USD-denominated sustainable <\/strong>additional<\/strong> tier 1 (AT1) securities yesterday<\/strong>, running through 23 May, according to a disclosure to Tadawul<\/a>. The offering comes under the lender\u2019s USD 1 bn AT1 capital issuance program and features a minimum subscription rate of USD 200k, with the perpetual certificates callable after 5.5 years<\/a>. Certificates will be listed on the London Stock Exchange\u2019s International Securities Market.<\/p>\n

ADVISORS- <\/strong>Alinma enlisted Alinma Capital, Abu Dhabi Islamic Bank, Emirates NBD, Goldman Sachs, JP Morgan, and Standard Chartered as joint lead managers.<\/p>\n

\n

\n

#2- <\/strong>Qualified in<\/strong>vestors can subscribe to Anmat\u2019s <\/strong>Nomu IPO<\/strong> starting today<\/strong>, with as little as 100 shares and a maximum of 2 mn shares each, according to the offering\u2019s prospectus<\/a>. The company is floating some 5 mn new shares, representing 11.63% of its post-IPO capital, with the subscription window wrapping up on Tuesday, 27 May.<\/p>\n

ALSO- The subscription period for Al Kuzama\u2019s 422.4k shares <\/strong>Nomu IPO<\/a><\/strong> wraps up <\/strong>today<\/strong>. Qualified investors can subscribe to a minimum of 10 shares and a maximum of 197.1k shares each.<\/p>\n

\n

\n

WEATHER- Winds wi<\/strong>ll keep on blowing through most of the Kingdom<\/strong>, kicking up dust and limiting visibility in parts of the Eastern Province, Riyadh, Qassim, Madinah, Makkah, Al-Baha, Asir, Jazan, and Najran. Riyadh <\/strong>is expected to see a high of 43\u00b0C and a low of 28\u00b0C today, while Jeddah\u2019s <\/strong>mercury will go as high as 35\u00b0C and as low as 28\u00b0C. Makkah <\/strong>will see a 43\u00b0C high and 32\u00b0C low.<\/p>\n

\n

HAPPENING TOMORROW-<\/p>\n

The <\/strong>Saudi Fashion Awards<\/strong> will be held tomorrow in Riyadh<\/strong>, the Fashion Commission said in a post on X<\/a>. The event will feature expanded categories and a judging panel of international industry figures, recognizing stylists, designers, models, and photographers.<\/p>\n

\n

PSAs- <\/p>\n

Statistics grad<\/strong>uates ha<\/strong>ve until tomorrow to apply for the General Authority for Statistics\u2019 <\/strong>(Gastat) <\/strong>Saudi Statisticians program<\/a><\/strong>.<\/strong> The program includes a 12-month training period, followed by fully funded postgraduate studies in statistics or data science at leading international universities, with comprehensive financial support, state news agency SPA<\/a> reports. Interested applicants can apply and find more details here<\/a>.<\/p>\n

FROM THE RUMOR MILL-<\/p>\n

<\/a> <\/strong>The Public<\/strong> Investment Fund (PIF) is planning for a USD 100 bn <\/strong>mixed-use \u201cProject <\/strong>Paradise\u201d in Riyadh\u2019s southwest<\/strong>, Arabian Gulf Business Insight<\/a> reports, citing sources it says are in the know. The fund is reportedly pulling back spending on some flagship projects and shifting toward others designed for faster commercial returns, the sources said.<\/p>\n

The project is still in the early stages with no finalized design<\/strong>, but concepts include a golf course, residential, entertainment, and commercial zones, and a potential artificial lake in Wadi Laban reservoir. Nothing official from the PIF was out regarding the project.<\/p>\n

ICYMI- Not the only Riyadh-based mixed-use development in the pipeline:<\/strong> The PIF\u2019s subsidiary Tower District Real Estate Development Company received bids<\/a> from multiple consultancy firms for a new business district on the outskirts of Riyadh, including the world\u2019s next tallest tower.<\/p>\n

\n

WATCH THIS SPACE-<\/p>\n

<\/a> <\/strong>Egypt\u2019s Mor<\/strong>pho Investments backs Agriventures<\/strong>: <\/strong>Egypt-based private equity firm Morpho Investments invested in Agriventures, a berry-focused precision agriculture company, to support its expansion into Saudi Arabia and Oman, according to a press release<\/a>. The funding is intended to help Agriventures secure exclusive rights to grow, sell, and market berries in both countries.<\/p>\n

The company is still in discussions regarding the exact locations<\/strong>, with three sites under consideration in Saudi Arabia and two in Oman, Morpho\u2019s co-Managing Partner Ihab Rizk told EnterpriseAM. The company\u2019s products are expected to be available for both local markets and export, Bloomberg<\/a> reports.<\/p>\n

What\u2019s next? <\/strong>The firm will kick off the second close of Morpho Fund I in 4Q 2025, aiming to raise an additional USD 45 mn to hit the USD 100 mn mark, co-Managing Partner Ayman Soliman told us. The company also intends to broaden its limited partner base after 3Q 2025, with a focus on attracting investors from across the MENA region.<\/p>\n

ICYMI-<\/strong> Morpho Investments\u2019 inaugural fund<\/a> reached a first close of USD 55 mn earlier this week. Soliman was the founding CEO of the Sovereign Fund of Egypt (SFE), prior to that he held roles at Gemini Holding and EFG Hermes, and Rizk was the investment director of education, agriculture, and food at the SFE.<\/p>\n

\n

\n

<\/a> <\/strong>Fragrance reta<\/strong>iler Dkhoun National Trading's share price <\/strong>dropped 19.8%<\/a><\/strong> on its Nomu<\/strong> debut yesterday <\/strong>to close at SAR 97.10 apiece. The company\u2019s IPO was 119.2% oversubscribed<\/a> after it took a 20% stake to market in a secondary share sale.<\/p>\n

ADVISORS- <\/strong>Dkhoun tapped Saudi Kuwait Finance House to be the financial advisor and lead manager on the transaction. Receiving agents<\/strong> included SNB Capital, Al Rajhi Capital, Saudi Fransi Capital, Alinma Investment, Riyad Capital, AlJazira Capital, Albilad Investment, Alistithmar Capital, AlArabi Investment, Alawwal Investment, Derayah Financial, Yaqeen Capital, Alkhabeer Capital, Sahm Capital, and GIB Capital.<\/p>\n

\n

\n

Ivanhoe M<\/a><\/strong>ines<\/a><\/strong> is deploying its I-Pulse exp<\/strong>loration tech in Saudi Arabia through its <\/strong>partnership with Ma\u2019aden<\/strong>, Ivanhoe Mines head Robert Friedland told Bloomberg (watch, runtime: 7:50<\/a>). This technology \u2014 which resembles CAT scans or MRIs for the Earth \u2014 non-invasively identifies mineral deposits, making exploration more efficient and less disruptive. Specific costs and discovery timelines were not disclosed<\/p>\n

Why Saudi? <\/strong>Friedland considers Saudi Arabia a strategic \u201ccenter of the world,\u201d ideal for broader exploration into Africa and Asia. Ivanhoe currently has an ongoing partnership with the Kingdom for the exploration of 15k sq kms for copper, gold, and other raw materials.<\/p>\n

REMEMBER-<\/strong> The Ma\u2019aden-Ivanhoe Electric JV (Ma\u2019aden Ivanhoe Electric Exploration and Development) began exploring 48.5k sq km in Saudi Arabia in December 2023<\/a>. The partnership grants Ma\u2019aden access to Ivanhoe\u2019s proprietary technology for locating metals like copper, nickel, gold, and silver, and follows Ma'aden's earlier USD 127.1 mn investment for a 9.9% stake and a board seat in Ivanhoe Electric.<\/p>\n

\n

\n

<\/a> <\/strong>Flying taxi app<\/strong> coming to the Kingdom:<\/strong> The Transport Ministry and local air transport firm FlyNow Arabia<\/a> are collaborating to launch the Kingdom\u2019s first flying taxi application for freight and passenger transportation, FlyNow CEO Yvonne Winter told Aleqtisadiah<\/a>.<\/p>\n

The firm aims to deploy a pilot version project<\/strong> at King Abdullah University of Science and Technology (KAUST) this year, Winter added, without specifying a date. The new application is set to transport goods for up to 1 mn miles in its initial phase, before moving on to transport passengers across the Kingdom\u2019s cities.<\/p>\n

Flying taxis?<\/strong> FlyNow has several selections, including cargo transport with 200 kg payload capacity, a flight range of 50 km with a 130 km\/h speed, and air taxis for two individuals.<\/p>\n

\n

SETTING THE RECORD STRAIGHT-<\/p>\n

T<\/strong>he State<\/strong> Properties General Authority dismissed rumors circulating on <\/strong>social media <\/strong>about the distribution of residential lands in Riyadh<\/strong>, it said in a post on X<\/a>, adding that significant announcements will only be made through official channels. The chatter implied that the government was selling residential land plots at discount prices while ignoring eligibility conditions. <\/p>\n

\n

OIL WATCH-<\/p>\n

Saudi to ramp<\/strong> up c<\/strong>rude burn this summer: <\/strong>Saudi Arabia is expected to burn more crude oil for energy this summer than the last on the back of increased fuel oil prices and eased Opec+ supply controls, Reuters<\/a> reports, citing Wood Mackenzie forecasts. The Kingdom could consume 465k - 470k bpd of crude this year for power generation, which is a 10k-15k increase from 2024, Wood Mackenzie estimates. <\/p>\n

Putting worries at bay: <\/strong>The hike could settle concerns over the global oversupply of crude and lower prices after the group decided to increase production in April, May, and June. The drop in prices and higher gains for refiners producing high-sulphur fuel oil from Dubai crude \u2014 at a record USD 4.45 per barrel \u2014 are likely to sway power generation demand from fuel oil to crude burn, Wood Mackenzie senior analyst Priti Mehta told Reuters. <\/p>\n

REMEMBER-<\/strong>Opec+ agreed to accelerate oil production increments<\/a> for the second month in a row, adding 411k barrels per day in June, after years of cutting production. That\u2019s three months' worth of supply increments that will be delivered all at once next month. The oil group could ramp up production rates to as much as 2.2 mn bbl \/ d<\/a> by November. <\/p>\n

<\/a> <\/strong>NO WORRIES- Saudi Arabia\u2019s fully prepared<\/strong>: <\/strong>The Kingdom has lined up multiple strategies including \u201clong-term fiscal planning and medium-term frameworks,\u201d to adapt to different scenarios for oil prices, Economy and Planning Minister Faisal Al Ibrahim said at the Qatar Economic Forum (watch, runtime: 27:49)<\/a> yesterday. <\/p>\n

\u201cOur budgets are no longer driven by oil, they\u2019re driven by priority,\u201d<\/strong> Al Faisal added, noting that Opec+ discipline remains essential as the Kingdom and other GCC nations restructure their economies to attract steady investment and ensure stability.<\/p>\n

Gigaprojects are also moving ahead<\/strong> as Saudi Arabia focuses on diversification and talent development, with Expo 2030 and the World Cup now top priorities, Faisal added when asked if the Kingdom has room to cut back on its pipeline of big project.<\/p>\n

\n

DATA POINTS-<\/p>\n

Consumer spending v<\/strong>ia point-of-sale (PoS) transactions in the Kingdom was down 5.5% <\/strong>w-o-w in the week ending Saturday, 17 May,<\/strong> reaching SAR 12.4 bn, according to the Saudi Central Bank\u2019s report (pdf)<\/a>. The number of weekly transactions also fell 1.6% w-o-w to SAR 217.6 mn.<\/p>\n

The details:<\/strong> Food and beverages made up the biggest chunk of spending in terms of value over the week, but experienced a 4.7% fall w-o-w to SAR 1.8 bn. Restaurants and caf\u00e9s came in second place, but also fell by 7.2% w-o-w to SAR 1.8 bn. This was followed by gas stations spending, which fell by 1.7% w-o-w to just over SAR 929.7 mn, and healthcare, which fell 4.8% to SAR 790.2 mn.<\/p>\n

Riyadh had the highest value of PoS transactions at SAR 4.5 bn<\/strong>, followed by Jeddah at SAR 1.7 bn.<\/p>\n

\n
\n
\n
\n

Get Enterprise<\/b> daily <\/h4>\n<\/p><\/div>\n

The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n

Subscribe here<\/a> <\/div>\n<\/p><\/div>\n<\/p><\/div>\n

***<\/strong>You\u2019re reading EnterpriseAM Saudi<\/strong>, your essential daily roundup of business, economics, and must-read news about Saudi, delivered straight to your inbox. We\u2019re out Sunday through Thursday by 7am Riyadh time.<\/p>\n

EnterpriseAM Saudi is available without charge <\/strong>thanks to the generous support of our friends at Tas\u2019heel.<\/p>\n

Want to send us a story idea<\/strong>, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on saudi@enterpriseAM.com<\/a>.<\/p>\n

DID YOU KNOW <\/strong>that we also cover Egypt<\/a>, the UAE<\/a>, the MENA logistics<\/a> and climate<\/a> industries?<\/p>\n

Were you forwarded this email? <\/strong>Tap or click here<\/a> to get your own copy of EnterpriseAM Saudi delivered every weekday.
***<\/strong><\/p>\n

\n

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

In a rare public rebuke by Israel\u2019s allies<\/strong>, the British government announced it will not move<\/a>forward<\/a> with discussions on free trade with Tel Aviv. The statement cited \u201cegregious policies\u2019 by PM Netanyahu, including the weeks-long blockade of aid and escalation of military offensive in the Gaza Strip, as well as the situation in the West Bank.<\/p>\n

The EU followed with an announcement that it intends to<\/strong>review its trade agreement with<\/a><\/strong>Israel<\/a><\/strong>, a move supported by a majority of member states due to the \u201ccatastrophic\u201d situation in Gaza. The looming famine has not yet been improved by Israel\u2019s easing of the blockade, as the United Nations said yesterday<\/a> no aid has been distributed yet despite some 100 trucks entering the enclave.<\/p>\n

The global backlash is apparently not deterring Israel<\/strong>: US intelligence shows Tel Aviv is making preparations to strike Iranian nuclear facilities, unnamed US officials told CNN<\/a>. The potential strike would be a huge break with US President Trump\u2019s policy of negotiating an agreement with Tehran.<\/p>\n

OVER IN THE US- <\/strong>Elon Musk \u2014 one of the biggest backers of the US Republican Party \u2014 signalled yesterday he will pull back from political spending<\/a> and focus on Tesla. The EV maker saw a dip in sales amid a backlash to Musk\u2019s close involvement in White House policymaking under President Trump.<\/p>\n

Also worth reading this morning-<\/strong><\/p>\n