{"id":99676,"date":"2025-08-14T00:00:00","date_gmt":"2025-08-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/08\/14\/its-back-to-school-season\/"},"modified":"2025-08-14T00:00:00","modified_gmt":"2025-08-14T00:00:00","slug":"its-back-to-school-season","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/08\/14\/its-back-to-school-season\/","title":{"rendered":"It\u2019s back-to-school season"},"content":{"rendered":"

Good morning, friends.<\/strong> We\u2019re rounding out the week with a rather busy Thursday issue, filled to the brim with updates from the Kingdom\u2019s busy IPO pipeline, a roundup of PIF\u2019s 2024 performance \u2014 courtesy of its annual report \u2014 and a look at the banking sector in 2Q 2025. Let\u2019s dive right in. <\/p>\n

WEATHER- Take care out there<\/strong>, folks:<\/strong> We\u2019re still in for more heavy rain, hail, strong winds, and potential flashfloods particularly in the southwestern parts of the country. Authorities are urging residents to be cautious, avoid driving on wet roads, and stay away from valleys and low-lying areas prone to flash flooding.<\/p>\n

Riyadh is expected to see a high of 46\u00b0C and a low of 35\u00b0C today<\/strong>, while Jeddah\u2019s mercury will go as high as 40\u00b0C and as low as 32\u00b0C. Makkah will see a 41\u00b0C high and 35\u00b0C low.<\/p>\n

PSAs- <\/p>\n

#1- <\/strong>Back-to-school season is right around the c<\/strong>orner:<\/strong> The new academic year is kicking off, with some schools starting their first semester next Sunday, 18 August, while students at public schools across 11 regions will return to class on Sunday, 24 August. Kids in Makkah, Madinah, Jeddah, and Taif will be back at school a week later on 31 August, the Saudi Gazette<\/a> reported. <\/p>\n

#2- <\/strong>Applications for the second batch of the Standard Incentives for the Industrial<\/strong> sector are<\/strong> now open <\/strong>until 9 November<\/strong>, the Industry and Mineral Resources Ministry said on X<\/a> on Tuesday. The program offers up to 35% of a project\u2019s initial investment cost \u2014 capped at SAR 50 mn \u2014 split evenly between construction and production phases, with support lasting up to seven years. Applications can be submitted via the S Senaei<\/a> platform.<\/p>\n

#3- <\/strong>Billboards are now required to match local architectural styles<\/strong> and be removed immediately when licenses expire, according to updated rules (pdf)<\/a> from the Municipalities and Housing Ministry, which came into effect yesterday. The new rules also stipulate that sites have to be restored to their original condition after billboards are removed. Advertisers and business owners in the Kingdom can know more about the new regulations on the Balady<\/a> platform.<\/p>\n

#4- Companies\u2019 unreasonably high or low basic wage will trigger a violation alert under the Wage<\/strong> Protection Program<\/strong>, Saudi Gazette<\/a> reported yesterday, citing a compliance guide from the Human Resources and Social Development Ministry. Alerts will also be issued if salary deductions exceed 50% of wages or if a basic wage is not recorded on the Mudad compliance platform for over 90 days.<\/p>\n

The enforcement process: <\/strong>Companies that delay wage protection file submissions will receive reminders and a final warning before an inspection request is automatically issued after 20 days.<\/p>\n

For delayed salary payments, employers have 10 days to justify the delay on Mudad<\/strong>, and employees have three days to accept or reject the explanation. Firms delaying payments for two months will face partial service suspension, while delays of three months will result in full suspension and allow employees to transfer to a new employer without their current employer\u2019s consent.<\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- <\/strong>A joint venture between Saudi Aramco and freight giant DHL is reportedly<\/strong> shopping for investors to back a USD 267 mn distribution center project in the Kingdom<\/strong>, Ashraq Business<\/a> reports, citing sources it says are familiar with the matter. The JV \u2014 Advanced Supply Management Operations (ASMO) \u2014 has reportedly presented the project to several family businesses in the Gulf, as well as Canadian investment management firm Brookfield Asset Management.<\/p>\n

The pitch: <\/strong>The JV is looking to offer potential investors permanent ownership in the Dammam-based facility, which will be developed on a build-to-order (BTO) model where future tenants secure spots pre-construction.<\/p>\n

BACKGROUND-<\/strong> ASMO was initially set up in 2023<\/a> to develop new end-to-end procurement and logistics hubs in the Kingdom before expanding across the region. ASMO launched operations at its first warehouse in Riyadh back in January<\/a> \u2014 its first project in a network planned across six locations in the Kingdom.<\/p>\n

Warehousing, distribution, and fulfillment spaces in the Kingdom are expected to be in <\/strong>hot <\/strong>demand<\/strong>, as the country\u2019s e-commerce and B2C markets continue their upward trend. In 1Q 2024, Saudi Arabia was ranked among<\/a> the top 10 fastest-growing e-commerce markets, standing at 41.3k existing registrations, up 6% y-o-y.<\/p>\n

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<\/a> #2- <\/strong>Paramount is the \u201cfront-runner\u201d to securing rights to newly launched Zuffa <\/strong>Boxing<\/strong>, Front Office Sports<\/a> reported on Tuesday, citing unnamed sources it says are familiar with the matter. Under the arrangement, US-based media conglomerate TKO Group Holding<\/a>, Zuffa\u2019s parent company, would handle two to three major fights in the Kingdom annually, including the Canelo \u00c1lvarez\u2013Terence Crawford fight on Netflix on 13 September. The talks follow Paramount\u2019s recent seven-year, USD 7.7 bn rights agreement to air UFC events.<\/p>\n

REFRESHER- <\/strong>PIF\u2019s entertainment and investments arm Sela, Saudi General Entertainment Authority Chairman Turki Al Alshikh, and TKO Group Holdings entered a multi-year partnership in March<\/a> to launch a new boxing venture that will serve as a platform for top boxers and emerging talent.<\/p>\n

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#3- <\/strong>The Sports Boulevard Foundation<\/a><\/strong> has invited bids to build its 130 m Global Sports <\/strong>Tower in Riyadh<\/strong>, Meed<\/a> reported on Tuesday. The tender was released on 31 July with submissions due by 30 September. Located in the Athletics District of the 135 km Sports Boulevard development, the tower will house over 30 sports facilities, including a 98 m indoor climbing wall (the world\u2019s tallest) and a 250 m running track.<\/p>\n

REMEMBER- <\/strong>The first phase of Sports Boulevard opened its doors in February<\/a>, marking a 40% completion rate for the project. The phase includes Wadi Hanifa, the Promenade, Al Rimal Sports Park, as well as the internal track at the Princess Nourah University.<\/p>\n

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<\/a> #4- <\/strong>PIF subsidiary Expo 2030 Riy<\/strong>adh Company (ERC) is expected to issue the tender for<\/strong> initial infrastructure works on the Expo 2030 site by September<\/strong>, Meed<\/a> reported on Monday. The works will be divided into three packages covering major utilities and civil construction. ERC had received contractors\u2019 interest<\/a> on 24 July for Expo 2030\u2019s initial infrastructure works after the expression of interest was issued on 17 July.<\/p>\n

REMEMBER-<\/strong> US engineering firm Bechtel was appointed as Expo 2030 project manager last<\/a>month<\/a> to oversee infrastructure works across the 6 sq km site, including roads, utilities, and public spaces, as well as transforming the venue into a sustainable urban district.<\/p>\n

IN CONTEXT- <\/strong>PIF launched the ERC last June<\/a> to manage the construction and operation of the Expo 2030 facilities, which is forecast to contribute approximately USD 64 bn to the Kingdom\u2019s GDP during its development and another USD 5.6 bn while operational.<\/p>\n

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DATA POINTS-<\/p>\n

#1- <\/strong>Consumer spending via point-of-sale (PoS) transactions in the Kingdom fell 12.3%<\/strong> w-o-w<\/strong> in<\/strong> the week ending 9 August<\/strong>, reaching nearly SAR 13.7 bn, according to the Saudi Central Bank\u2019s weekly report (pdf)<\/a>. The number of weekly transactions also dropped 6.4% w-o-w to around 228.5 mn during the week.<\/p>\n

The details:<\/strong> Food and beverages made up the bulk of consumers\u2019 spending during the week in terms of value, despite dipping 17.8% w-o-w to just above SAR 1.9 bn. Restaurants and caf\u00e9s came in second place, falling 7.9% w-o-w to just under SAR 1.8 bn, followed by transportation, and professional and business services, each of which came in just above SAR 1 bn. <\/p>\n

Riyadh had the highest value of PoS transactions at about SAR 4.6 bn<\/strong>, followed by Jeddah at around SAR 1.9 bn.<\/p>\n

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#2- Commercial ins. prices fell 5% in India, the Middle East, and Africa (IMEA) in 2Q 2025<\/strong>, with Saudi Arabia and the UAE seeing sharper drops on the back of strong reins. capacity, according to Marsh\u2019s 2Q 2025 IMEA Ins. Market Index<\/a>. Globally, commercial ins. prices fell 4% \u2014 the fourth straight quarterly drop. <\/p>\n

The breakdown: <\/strong>Property ins. rates in the UAE and Saudi saw the sharpest falls, supported by competition from regional players and multinational reinsurers. Casualty ins. rates were stable in the UAE, while financial and professional lines dropped 15-20% in both countries. Financial institutions in the Middle East saw reductions of 10-15% thanks to increased London and Dubai capacity. Cyber ins. fell 5% overall, with some Middle East clients seeing over 15% of declines on news excess and primary layer capacity. <\/p>\n

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#3- <\/strong>The Kingdom has imported 2.4 mn video game consoles since the beginning of 2024<\/strong>, including 1.7 mn units in 2024 and 684.5k units YTD, state news agency SPA<\/a> reported yesterday. China topped the list of suppliers in both years, followed by Japan, the US, Hong Kong, Vietnam, and the UK. Smart devices were in the lead, capturing 24.2% of all users, followed closely by PlayStation at 23.8%. Other platforms trailed behind, with Xbox at a 2.8% share, Nintendo Switch at 0.9%, and Steam at 0.8%.<\/p>\n

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OIL WATCH-<\/p>\n

The International Energy Agency (IEA) expects global oil demand to grow by 700k bbl\/d<\/strong> in 2026<\/strong>, according to the IEA\u2019s August oil market report<\/a>. The agency kept its 2025 demand forecast unchanged at 104.4 mn bbl\/d, with growth of 680k bbl\/d, despite weaker-than-expected consumption in China, India, Egypt, and Brazil in recent months. <\/p>\n

REMEMBER- Opec is more bullish on demand next year:<\/strong> Opec raised its forecast<\/a> for oil demand growth in 2026 to 1.4 mn bbl \/ d \u2014 100k bbl \/ d higher than previously expected \u2014 on the back of strong economic activity in its monthly outlook earlier this week. <\/p>\n

Global oil supply<\/strong> was flat in July<\/strong> at 105.6 mn bbl\/d, as a 230k bbl\/d fall in Opec+ output to 42.72 mn bbl\/d was offset by gains from non-Opec+ producers. Higher Opec+ targets for September are set to lift global supply growth to 2.5 mn bbl\/d this year and 1.9 mn bbl\/d in 2026, with non-Opec+ accounting for half. <\/p>\n

This means it\u2019s on track for a surplus: <\/strong>\u201cWhile oil market balances look ever more bloated as forecast supply far eclipses demand towards year-end and in 2026, additional sanctions on Russia and Iran may curb supplies from the world\u2019s third and fifth largest producers,\u201d the Paris-based agency said.<\/p>\n

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SPORTS-<\/p>\n

#1- RSL fixtures are here:<\/strong> The 2025-26 Roshn Saudi League season will kick off on Thursday, 28 August, with 306 matches scheduled over 34 rounds, according to a press release<\/a>. <\/p>\n

Al Ittihad and Al Hilal set for early showdowns: <\/strong>Defending champions Al Ittihad will start away to Al Okhdood, then face Al Fateh, Al Nassr, and promoted Al Najma, before hosting Al Hilal in the first Classico in Round 6. Al Hilal begin with a derby against Al Riyadh, meet Al Qadsiah in Round 2, visit Al Ahli in Round 3, and play Al Ittihad in Round 6. <\/p>\n

Al Nassr and Al Ahli brace for big matches:<\/strong> Al Nassr will open the season in an away game with last season\u2019s surprise Al Taawoun, visit Al Ittihad in Round 4, host Neom in Round 8, and face a tough late-season run against four top sides. Al Ahli will host Neom in their opener, meet Al Hilal in Round 3, and take on Al Ittihad in the Sea Derby in Round 8.<\/p>\n

Key derby dates:<\/strong><\/p>\n