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Tuesday, 19 November 2024
Tuesday, 19 November 2024
The roundup of news and trends that move our markets and shape our corporate agendas delivered straight to your inbox.
Subscribe hereGood morning, wonderful people. The only thing more packed than this morning’s issue are Riyadh’s roads on weekday afternoons. We have for you this morning news from UIHC’s IPO, EFG Hermes’ USD 300 mn Saudi-focused education fund, a passel of developments on Planet Startup, and a look at the real estate market in the week after Cityscape Global.
BUT FIRST- We’re delighted this morning to welcome Tas’heel Finance as our anchor sponsor of EnterpriseAM Saudi Arabia. Tas’heel is a fast-growing innovator in the Kingdom’s burgeoning digital financial services market. It’s the leading NBFI installment provider in the Kingdom and has built on its cornerstone partnership with electronics giant eXtra to include more than 300 retailers and service providers from Ikea to Saudi-German Hospital, Virgin Megastore, and Gold’s Gym. It serves hundreds of thousands of clients online and at in-person locations across the Kingdom, offering personal finance, installments, credit cards, and more.
Tas’heel is a company with ambitions that match ours: Led by a globally experienced management team, it aims to be the leading multi-product, multi-category digital financial services company in the Kingdom as well as Saudi’s largest provider of Shariah-compliant consumer finance solutions.
Please join us in welcoming the good people at Tas’heel to EnterpriseAM Saudi. Their support ensures your morning read is available without charge every weekday morning.
IPO WATCH-
#1- Our friends at Tas’heel kick off this morning the two-day retail subscription for their IPO on Tadawul’s main market. The United International Holding Company — which owns and operates the Tas’heel brand name — will offer 10% of the shares in its IPO to individual investors, who can place orders for up to 250k shares per buyer. The final allocation of shares will take place next Monday (25 November).
The institutional offering was a runaway success, selling out within minutes of opening last month as investors placed bids totalling more than SAR 131 bn, making the offering 132x oversubscribed.
REFRESHER- The financial services arm of United Electronics Company (eXtra) is taking a 30% stake to Tadawul and has priced the IPO at the top of its indicative range at SAR 132 apiece. The final pricing will see selling shareholders lock in SAR 990 mn in total proceeds, giving the firm a market cap of SAR 3.3 bn at listing. The offering will see eXtra pocket all of the proceeds after an estimated SAR 37 mn are put aside to cover IPO-related expenses, and SAR 190 mn go to repaying some of eXtra’s debt.
ADVISORS- Our friends at HSBC Saudi Arabia are quarterbacking the transaction as sole financial advisor and lead manager, while also acting as joint bookrunners and underwriters with the good folks at EFG Hermes KSA. Our friends at Baker McKenzie are international legal counsel to the bankers, while The Law Firm of Salah Al-Hejailan and Feshfields are advising UIHC.
#2- Multiple Saudi companies are said to be mulling listings on the Hong Kong Exchange in a bid to raise funds for infrastructure projects in Saudi Arabia, HKEX Chairman Carlson Tong Ka-shing told South China Morning Post, citing senior officials from Tadawul and the PIF who spoke with a Hong Kong delegation in Riyadh last month.
What he said: “It is a win-win situation for Saudi companies to list in Hong Kong as they can raise funds to diversify their economy, while Hong Kong and international investors can also access the Gulf economy,” explained Ka-shing.
BACKGROUND- Investors are increasingly active on the Riyadh-Hong Kong corridor. Bank Albilad rolled out the SAR 4.49 bn CSOP MSCI Hong Kong China ETF last month to become Saudi Arabia’s largest ETF to track Hong Kong-listed Chinese stocks. That mirrored Hong Kong’s move to list a Saudi-focused ETF on the Hong Kong exchange in November of last year.
#3- Qualified investors have until Thursday to subscribe to Arabica Star’s 25% stake offering on Tadawul’s parallel market, Nomu. The final allocation of shares is slated for Tuesday, 26 November.
WEATHER- Riyadh is looking at a high of 31°C and a low of 16°C today. Over in Makkah, the mercury will peak at 34°C and hit a low of 24°C. Meanwhile, Dammam is looking at a high of 31°C and a low of 20°C.
WATCH THIS SPACE-
#1- Global index provider FTSE Russell is set to increase Aramco’s investability weight in its Global Equity Index Series (GESI) to 2.38%, up from 1.85% as part of its December 2024 quarterly review, it said in a statement (pdf). The increased investability weight means greater visibility to international investors and could lead to more foreign capital inflows, supporting Aramco’s global market appeal. The statement has all the details on how Aramco’s weight will change in selected FTSE Russell headline indices.
IN CONTEXT- The update follows Aramco’s USD 12.4 bn secondary offering back in June, which redistributed some ownership to international and local investors, while the Saudi government retained a 97.62% stake.
#2- Egypt’s Mountain View expands into Saudi market with SAR 1.2 bn investment: Real estate developer Mountain View has entered the Saudi market with a SAR 1.2 bn investment that will see the developer build 500 housing units in the Kingdom, Argaam reports.
We saw this coming: Back in September, Mountain View announced that it would be introducing its first project — developed in partnership with local developers Maya Real Estate Development and Investment and Al Saedan Real Estate — to the Kingdom by November.
#3- Financial services providers can now manage transactions on omnibus accounts for the Saudi debt market after the Saudi Securities Depository Center (Edaa) kicked off omnibus accounts for debt securities, according to an announcement on Tadawul. The launch follows the Capital Markets Authority’s (CMA) approval of new omnibus regulations which took effect on Thursday, with the updated guidelines looking to increase efficiency and streamline investor access to Saudi securities by consolidating accounts. The CMA had drafted the amendments earlier this year.
Uh, Enterprise? What are omnibus accounts? An omnibus account is a shared investment account that pools together the assets and trades of several customers, allowing brokers to execute, and clear trades on behalf of clients. Omnibus account transactions are executed in the broker’s name, which allows individual investors to maintain anonymity.
#4- Nomu-listed Banan Real Estate received regulatory approval from the Saudi Exchange to transition to the main market, according to a statement. The SAR 200 mn company will continue to trade on Nomu until the transfer document is published. Trading will then halt for up to five sessions before listing on the main market. Tadawul hasn’t given dates for the move.
#5- Nomu-listed food delivery app Jahez International also lined up approval to transfer to the Tadawul main market, according to a statement. The SAR 104.9 mn company will continue trading on Nomu until the transfer is finalized. The exact dates will be announced once the process is finalized.
#6- Yaqeen Capital received approval from the Capital Market Authority for the public offering of its Opportunistic Fund, according to a statement from the authority. No further details about the offering were provided.
NEWS TRIGGERS-
A handful of news triggers coming up in the next few weeks:
DATA POINTS-
#1- Loans handed out to MSMEs in the Kingdom increased 17% y-o-y in 2Q 2024 to SAR 307.4 bn, Argaam reported, citing data from the Saudi Central Bank (Sama). Medium-sized firms had the lion’s share of credit at SAR 167.3 bn, followed by small enterprises at SAR 106.4 bn, and micro enterprises at SAR 33.7 bn.
#2- Waqf investment funds saw their assets under management (AUM) grow 29.3% y-o-y in 9M 2024 to SAR 1 bn, with five new funds receiving licenses during 3Q, bringing the total number of licensed funds to 34, the General Authority of Awqaf said in a post on X.
#3-The Interior Ministry’s Absher platform processed over 6.35 mn digital transactions in October, according to a press release. ِThe Absher Individuals app saw 3.8 mn operations, topped by residency permit issuances and renewals (314.1k transactions), while the Absher Business platform saw 2.5 mn operations.
OIL WATCH-
Saudi’s oil exports hit a three-month high in September, notching up 80k bbl / d m-o-m, to 5.751 mn bbl / d, according to the latest figures from the Joint Organizations Data Initiative. Meanwhile, production notched down 17k bbl / d at 8.98 mn bbl / d. The story got ink from Reuters.
SPORTS-
⚽ The Green Falcons will face Indonesia today at 3:00 PM (Saudi Arabia time) at the Gelora Bung Karno Stadium, Jakarta, in a key match for the 2026 World Cup group qualifiers. Currently, the Saudi national team sits in third place with 6 points, trailing Australia on goal difference. The top two teams in the group will automatically qualify for the 2026 World Cup in North America, while the third and fourth-placed teams will move on to a subsequent round of qualifier.
The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.
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THE BIG STORY ABROAD-
COP29 climate talks in Baku are in disarray and multiple Western media outlets are portraying Saudi Arabia as spoiler-in-chief. Ministers leading the talks, including top officials from Germany, Australia, and South Africa, have flown into Azerbaijan in a bid to put things back on track.
The key sticking points in this final week of talks: Saudi leads a group of countries that don’t want the final agreement to include steps outlining how countries will transition away from fossil fuels and embrace greener energy. Saudi, the UAE and China are also resisting pushes to contribute to a fund to help developing countries transition — backers want a USD 100 bn goal (agreed a decade ago) to be bumped up to USD 1 tn, the Financial Times notes.
The flavor in the western press: “Saudi Arabia is a ‘wrecking ball’ in global climate talks,” blares the headline in the New York Times. Bloomberg has a similar take.
MEANWHILE- Eat the rich: The G20, meeting in Rio, has pledged to impose taxes on the super-rich — and repeated a demand that the climate finance pool be expanded to “tns” not “bns” of USD. The call to tax bn’aires incomes by 2%, pushed by Brazil, is short on specifics.
WORTH READING- The Wall Street Journal’s portrait of the incoming Trump administration’s “point man” on the Middle East, real estate baron Steve Witkoff.
Speaking to Trump II: It’s still unclear who will run Treasury and the National Economic Council, though Bloomberg suggests we may have some clarity here before the week is out.
CLOSER TO HOME- Oman’s state energy company, OQ, is looking to raise as much as USD 490 mn from the IPO of its methanol and liquefied petroleum unit. Cornerstone investors for up to 30% of the offering are reportedly in place.
Saudi Omani Investment is stepping up as an anchor investor: The wholly-owned PIF subsidiary Saudi Omani Investment, along with Gulf Investment Corp., Falcon Investments, and Oman’s Social Protection Fund will be among the cornerstone investors. The subscription period for the offering runs 24 November through 1 December, with trading on the Muscat Stock Exchange to start around 15 December.
CIRCLE YOUR CALENDAR-
The Black Hat MEA 2024 cybersecurity conference and exhibition will take place between 26-28 November at the Riyadh Exhibition & Conference Center in Malham. The event will gather cybersecurity professionals and technology developers. Speakers include information security leaders from Bayer, SoftBank Investment Advisors, the US Intelligence Community, the CIA, and Knostic.
The two-day Saudi Green Initiative Forum will kick off on Tuesday, 3 December, according to a statement. The forum will coincide with COP16 of the United Nations Convention to Combat Desertification, which will be held in Riyadh between 2 and 13 December.
The two-day Zakat, Tax and Customs Conference 2024 begins on 4 December at the King Abdullah Financial District.
The Red Sea International Film Festival will run from 5-14 December in Jeddah.
The two-day Impact Makers Forum (ImpaQ) is set to open its doors on 18 December, bringing together media influencers, industry experts, and digital content creators in Riyadh’s Mayadeen Hall.
The Fortune Global Forum is coming to Riyadh in December 2025, according to a press release. The forum serves as a platform for the leaders of the world's largest companies, policymakers, and other influential figures to discuss global economic and business trends, challenges, and opportunities.
Aramco + Sinopec break ground on USD 9.82 bn Fujian petrochems complex: Saudi Aramco and China’s state-owned refining giant Sinopec have kicked off construction work at a refinery and petrochemical complex in southeast China’s Fujian province, with operations expected to begin in 2030, according to a press release. The new refining hub is estimated to cost USD 9.82 bn, Reuters reports. Aramco and Sinopec inked a preliminary agreement for the greenfield project back in 2022.
(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)
Who owns what: Aramco and Sinopec will each hold a 25% stake in the venture, while Fujian Petrochemical — a JV between Sinopec and the Fujian government — will hold the remaining 50%.
Project profile: The new refining hub is situated in Zhangzhou city’s Gulei industrial park and includes a 320k bbl / d refinery, ethylene and paraxylene plants, and a 300k-ton crude oil terminal. Once operational, the facility is expected to supply some 5 mn tons of petrochemical feedstocks a year. The initiative is separate from another USD 6.4 bn Sabic refining complex that is also situated in Gulei industrial park, Reuters explained.
Aramco is doubling down on downstream assets in China: The state-owned oil giant is “recalibrating” its petrochemicals portfolio and shifting its focus towards Asia, with the firm pursuing several downstream oil investments in China that look to lock in demand for Saudi crude in the long run. Aramco also sees demand for plastics and other petroleum derivatives growing in Asia and is angling for a larger market share in those markets. Saudi Aramco has set its sights on supplying 1 mn bbl / d of crude to China to supply petrochem investments, Aramco's downstream president Mohammed Al Qahtani said.
Also from Aramco + China: Aramco inked agreements with Rongsheng Petrochemical and Hengli Group in September, advancing plans to expand the Saudi Aramco Jubail Refinery with Rongsheng and acquire a 10% stake in Hengli Petrochemical.
Our friends at EFG Hermes have launched a USD 300 mn fund that aims to build an “institutional, world-class K-12 operator” in the Kingdom, it said in a statement (pdf). The firm’s Saudi Education Fund “aims to capitalize on the clear market opportunity that is evidenced by the growing student population in private schools, which is expected to more than double,” the statement added.
The gameplan: SEF plans to deploy USD 300 mn over the next three years, with a primary focus on the Kingdom, alongside its ventures in the UAE and Bahrain, EEP CEO Ahmed Wahby said. Spark Egypt for Training and Development, led by the EEP team, is set to manage and oversee the new fund’s activities, he added.
The fund is acquiring four schools in Saudi Arabia: SEF has acquired seven schools from GFH Financial Group under the Britus Education brand. Four of the schools are in the Kingdom, including Britus International Schools Al Olaya, Education Gate International School Al Rawdah, Education Gate International School Almurabba, and Bright Life International School. This is in addition to two schools in the UAE and one in Bahrain. Together, the schools can accommodate 12k students, with 8k already enrolled. The acquisition is subject to regulatory approvals.
About Britus: Britus Education is a Manama-based network of schools offering affordable, high-quality education to students across the Kingdom, Bahrain, the UAE and Tunisia, according to its webpage. The operator provides a wide range of international curricula including the British Curriculum, US Common Core curriculum, IB Diploma Programme and the Egyptian curriculum.
Same play, new stage: “Drawing on the expertise and insights we've gained over the past five years while establishing Egypt’s premier K-12 operator, Egypt Education Platform (EEP), we are poised to deliver exceptional educational services to our new student populations. Through this investment, we are committed to ensuring that Britus Education flourishes and adapts to the dynamic needs of students and communities throughout the region,” said Karim Moussa, Co-CEO of EFG Hermes.
What’s EEP? Launched in 2018 under EFG Hermes' first education fund, the platform has built a diverse portfolio of 25 assets in Egypt, including 23 schools and pre-schools offering five curricula with a capacity of 25k students, an educational content business (Selah El Telmeez) serving 3-4 mn students annually, and a transportation service (Option Travel) catering to over 3k students daily.
ADVISORS- PwC Middle East acted as the financial and tax advisor to SEF, with White & Case providing counsel.
What’s next for real estate developers in Saudi Arabia? With Cityscape Global now in the rearview mirror, we sat down with our friend Tamer Elfiky (LinkedIn) to talk over market dynamics and what’s next for the industry as more developers — Saudi, Egyptian, and others — look to Saudi Arabia as the next great regional growth market.
Tamer is an insider’s insider: He was a partner and head of operations in Egypt for Knight Frank MENA and was previously a senior exec at both Savills Middle East and at high-end Egyptian developer Sodic. Today, he is the co-founder of Ctrl+, a regional real estate marketing consultancy. Edited excerpts from our conversation follow:
ENTERPRISE- Now that you’ve had time to digest it, what stands out after last week’s event?
TAMER ELFIKY- The energy was palpable — buzzing with excitement and curiosity. Cityscape felt more like a festival of ideas than an exhibition. The halls were packed with developers. The majority of them were Saudi, but Egyptian players were well-represented, as were others from the region and beyond.
The market dynamics will be challenging for some: What really stood out was how locals gravitated toward familiar names, the big Saudi players they trust. Newer foreign entrants, including those from Egypt, faced a more reserved welcome, but the interest in homegrown offerings was undeniable.
E: On the issue of “big Saudi players they trust” — is it fair to say there are no undisputed “champions” of the Saudi market the way there are in the UAE and Egypt?
T: That’s actually spot on. Unlike the UAE, where giants like Emaar dominate, or Egypt, where TMG and SODIC are household names, the Saudi market is more diffuse. There isn’t that one private-sector developer everyone sees as the go-to. Trust here tends to rest on familiarity and family legacies. State-backed entities like Roshn and NHC are solid and respected, but they don’t carry that same private-sector “star power.” There’s definitely room for a standout to emerge as the market matures.
E: There was a lot of focus on megaprojects including Neom and Roshn. As a market insider, what’s your take?
T:The mega projects were the showstoppers, no doubt. They’re bold, massive in ambition, with virtual showcases and enormous models that felt almost like science fiction brought to life. They scream “Future” and reflect Saudi’s determination to redefine itself. But here’s the thing: They’re still aspirational at this stage, not quite where investors can jump in. The allure is there, but so is the distance between vision and reality for most who want to invest now.
E: How are the megaprojects and the drive to grow Riyadh’s population changing market dynamics?
T: It’s a double-edged sword. The influx of expats drawn by these ambitious projects and the spotlight on Saudi real estate have driven up rents, making it tough for middle-income and affordable housing seekers in Riyadh. There’s some nervousness about competing with foreign investors as the rules evolve. But that’s just one side of the coin. Many Saudis are genuinely excited — Vision 2030’s push to turn renters into homeowners is pivotal, and the next decade will be about whether locals can keep up with fast-changing market dynamics.
E: How do foreign investors see the megaprojects?
T:From a Western and European lens, Saudi’s mega projects look ambitious, maybe even audacious — there are echoes of Dubai’s rise a couple of decades back. For professionals in engineering and project management, these are opportunities with serious upside. But there’s a touch of skepticism around whether these projects can be sustained at such a scale. Here in the region, and in Egypt in particular, developers are looking at Saudi megaprojects with excitement tempered by caution. The potential is clear, but there’s also a watchful eye on what this could mean for the balance of power in the region.
E: Outside of the megaprojects, who are the developers getting traction today?
T: Saudi developers such as Dar Wa Emaar, Osos, Ajlan — and even Egypt’s TMG — are doing the quiet, crucial work that often gets overlooked. They’re focused on practical housing solutions, addressing real local needs and bringing regional expertise into play. There are definite opportunities for Emirati and Egyptian players, given their deep expertise in real estate marketing. They may not have the glitter of a Neom, but they’re foundational to sustaining the market and deserve more recognition.
E: What could these changes mean for the region as a whole?
T: Saudi’s ambitions are shaking up the regional real estate scene. The kingdom’s push to become a hub for tourism, investment, and real estate could start drawing attention away from traditional heavyweights. For a place like the UAE, with an economy so intertwined with its expat community, this is worth watching. But for Egypt, which has a strong local population, the impacts might be more manageable. It’s a balancing act for everyone.
However you look at it, Cityscape Global 2024 was a clear statement of intent from Saudi Arabia, but it was far from being “global.” The kingdom is playing a high-stakes game, but it’s also a delicate one: Aligning grand ambitions with the practical realities of affordability, sustainability, and local needs is no small feat. The coming years will show whether Saudi can turn its visions into reality that benefits not just itself, but the region as a whole.
Homegrown VC firm Merak Capital launched a SAR 306 mn gaming fund and accelerator program, dubbed Exel, targeting early-stage gaming startups looking to scale to international markets, according to a press release. The fund will zero-in on game development studios, technologies, publishing platforms, and other services within the gaming sector. It’s interested in both Saudi-based companies and international startups that have relocated to the Kingdom.
(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)
What’s on the table? Merak will make equity investments, offer mentorship, assistance with relocation, and other support to help Saudi gaming startups grow at home and abroad, the statement said. The accelerator component includes a virtual bootcamp, a 14-16 week core accelerator, followed by a demo day and post-program assistance.
Exel plans to run 15-20 early-stage startups through the first round of the program. “The first batch of the accelerator will aim to create more than 120 jobs in the Saudi gaming industry, and the graduates are envisioned to contribute more than SAR 100 mn to domestic GDP,” Exel VP and Leader Faisal Sedrani said.
Saudi is big on gaming: The local gaming sector is expected to rake in some USD 998.2 mn (SAR 3.7 bn) in revenues this year, at an estimated 11% y-o-y growth, on the back of a largely youthful population and rising incomes. Meanwhile, PIF-backed Savvy Games appears to be taking off as the Kingdom doubles down on efforts to diversify its economy and boost non-oil income.
Homegrown social networking platform Bubbl closed a SAR 1.3 mn (USD 350k) pre-seed funding round led by angel investor Abdullah Al Dosari (LinkedIn), according to a press release. The raised funds will go towards expanding the platform’s user base to 1 mn daily active users. No further details were disclosed on the identity of other investors contributing to the round, or on whether the investments are debt or equity based.
About Bubbl: Founded in March by Ayah Alhmmoud (LinkedIn), Bubbl is an iPhone widget that allows live conversation between close circles of friends, with each user limited to 20 connections, according to its website. The platform currently has 60k active daily users, with 80% based in Saudi and 98% accessing the service via iPhones. The app has also reached upwards of 10 mn users via social media marketing campaigns.
President-elect Donald Trump recently engaged with key figures from both sides of a potential PGA Tour-LIV Golf merger, highlighting his involvement in the ongoing negotiations shaping the future of professional golf,the Washington Post reports citing sources it says are familiar with the matter. On Friday, Trump played golf with PGA Tour Commissioner Jay Monahan in Florida. The next day, he attended a UFC fight in New York, where he met PIF Governor Yasir al-Rumayyan, alongside Elon Musk.
The president-elect is confident that he can broker an agreement between the rival tours, saying earlier this month on Jim Gray and Bill Belichick’s “Let’s Go” Podcast that it would take him “the better part of 15 minutes” to square away an agreement (listen, runtime: 24:16). Nevertheless, the incoming president has said that he has larger priorities on his immediate agenda.
(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)
The General Authority for Competition tapped Fahad Alshathri (LinkedIn) as its new CEO, it said in a statement. Alshathr held senior executive roles at Saudi Central Bank (Sama), the Social Development Bank, the Arab Fund for Economic and Social Development, and the International Monetary Fund.
(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)
HOSPITALITY-
Turkey-based real estate and hospitality outfit FTG Group is set to co-fund a SAR 1.4 bn multi-use resort with the Tourism Development Fund in the Eastern Province, according to a post on X, and a Zawya report. The resort will be operated by French hospitality provider Accor under the Rixos brand. There’s no publicly available information about the ownership structure, funding breakdown, and the project’s timeline.
About the resort: The resort will span 262k sqm, and feature 400 hotel units , 41 villas, and a variety of dining and entertainment options. It will be the Eastern Province’s first all-inclusive coastal destination, offering a comprehensive experience for visitors
(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)
RENEWABLES-
Acwa Power sealed SAR 15 bn worth of power purchase agreements with the Saudi Power Procurement Company for two large-scale combined cycle gas turbine power plants, it said in a filing to Tadawul. The 25-year contracts were awarded under a “development, financing, build, own and operate” model.
The details: Rumah-1 in Riyadh and Al-Nairyah-1 are located in the Eastern Province, and will each boast a production capacity of 1.8 MW. ACWA Power owns a 35% stake in both projects, while Saudi Electricity Company and Korea Electric Power Corp. (KEPCO) are also shareholders.
M&A WATCH-
#1- Malath Cooperative Ins. and Liva Ins. lined up a non-objection decision from the General Authority for Competition for their potential merger, according to two disclosures to Tadawul (here and here).
Background: The companies signed a non-binding MoU in August to conduct due diligence for the merger. In September, Malath appointed Alinma Investment as its financial advisor, while Liva tapped SNB Capital. Once a final agreement is reached, the transaction will be subject to the shareholders’ approval, in addition to clearance from the Ins. Authority, the Capital Market Authority, and the Saudi Exchange.
#2- Gulf Union Al Ahlia Cooperative Ins. and Gulf General Cooperative Ins. also received a non-objection decision from the General Authority for Competition for their potential merger, according to two disclosures to Tadawul (here and here).
Remember: The two companies signed a non-binding MoU in August to explore a merger through a share-swap agreement where Gulf Union Al Ahlia would acquire 100% of Gulf General. Gulf Union Al Ahlia tapped Al Jazira Capital as its financial advisor, while Gulf General appointed Alinma Investment.
REAL ESTATE-
#1- Built Industrial secures a mixed-use development contract: Ladun Investment’s construction arm Built Industrial landed a SAR 645.7 mn contract with a Saudi Fransi Capital-managed fund for The Point Abha, a 75k sq m mixed-use development along the King Fahd Road in Abha, according to a disclosure to Tadawul.
The details: The development will include a shopping center, hotel, entertainment facilities, administrative buildings, open plazas, and gardens. The three-year agreement was signed with the Real Estate Development Fund, which is owned by the Tourism Development Fund and the Red Sea Asir Company.
#2- Dar wa Emaar to add commercial centers to its development North of Riyadh: Real estate developer Dar wa Emaar partnered with the National Housing Company (NHC) to build integrated commercial centers at its Saraya Al Jiwan development North of Riyadh, according to a LinkedIn post. The centers will be established within the Khuzam district. No timeline or investment ticket was disclosed.
#3- Anb Capital tapped Saudi Thawra to create a SAR 2 bn real estate investment fund, anb said in a statement. The fund, which will be managed by anb Capital, will develop infrastructure projects over a 4.2 mn sq m area in Eastern Riyadh, with a focus on Al Sharq district. The infrastructure will lay the groundwork for future residential and mixed-use developments in the area. No timeline was disclosed.
CONSTRUCTION-
Turkish construction companies are scrambling to land Neom Bay Airport contract, with Limak, IC Ictas, and one of either YDA Group or Tav Construction reportedly among the contenders for the USD 1 bn airport, Türkiye Today reports. IC Ictas and Limak have both completed the preliminary application stages for the tender, according to the Turkish outlet.
IC Ictas is no stranger to the Kingdom, having worked already on terminal projects at King Khalid International Airport.
MEDIA-
Saudi state news agency SPA signed a cooperation agreement with its Chinese counterpart Xinhua to exchange knowledge on the use of AI and advanced tech in content creation, among other areas, according to statements from both agencies (here and here). The agreement also includes launching training programs for their journalists.
International investor interest in the MENA startups is heating up: MENA startups have witnessed a surge in international investor activity in 9M 2024, with the region’s 28% y-o-y increase in unique investors positioning it as the fastest growing arena for international venture capital across Southeast Asia, Africa, and the Middle East during the first nine months of the year, according to Magnitt’s latest International Investor Evolution Report.
(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)
The broad strokes: The MENA region’s overall growth in investor activity was driven by a 60% y-o-y increase in international investors in the region’s startups — particularly those from the US and UK, the report writes. International venture capitalists also doubled their capital share in the region during 9M 2024 compared to the same period last year, reaching 37% of deployed capital. The growth was also driven by higher interest investing in early-stage startups, with series A transactions capturing 50% of international capital share in 9M 2024, up from just 15% in 9M 2023. Moreover, the MENA region has seen international venture capitalists’ share of participation rise from 28% in 2020 to 51% in 2024, according to a separate Magnitt press release (pdf).
Within the region, Egypt and the UAE led this investor influx: Egypt saw a 32% y-o-y increase in unique investors in 9M 2024, underpinned by a 79% y-o-y rise in local venture capitalists and significant contributions from the UK. The UAE also made significant strides in attracting international venture capital, with the report noting that the UAE saw a 24% y-o-y increase in unique investors during 9M 2024 — largely driven by a doubling of US-based participants.
Despite recent gains, the region continues to lag behind on aggregate: Recent progress notwithstanding, MENA startups continue to lag behind Southeast Asia and Africa in terms of total venture capital deployed, with the region registering USD 947 mn in deployed capital to Africa’s USD 1.2 bn and Southeast Asia’s USD 11.7 bn in 9M 2024.
MARKETS THIS MORNING-
Asian markets are kicking the day off in the green during early trading this morning, with Japan’s Nikkei up 0.5%, followed by Hong Kong’s Hang Seng and Korea’s Kospi both at 0.3%. Over in China, the Shanghai index is down 0.4%.
TASI | 11,830 | +0.2% (YTD: -1.1%) | |
MSCI Tadawul 30 | 1,487 | 0.1% (YTD: -4.10%) | |
NomuC | 29,596 | +0.4% (YTD: +20.7%) | |
USD : SAR (SAMA) | USD 3.75 Sell | USD 3.75 Buy | |
Interest rates | 5.25% repo | 4.75% reverse repo | |
EGX30 | 30,864 | -1.2% (YTD: +24.0%) | |
ADX | 9,387 | -0.6% (YTD: -2.0%) | |
DFM | 4,713 | -0.6% (YTD: +16.1%) | |
S&P 500 | 5,893.62 | +0.4% (YTD: 23.6%) | |
FTSE 100 | 8,109 | +0.6% (YTD: +4.9%) | |
Euro Stoxx 50 | 4,790 | -0.1% (YTD: +6.0%) | |
Brent crude | USD 73.22 | +3.1% | |
Natural gas (Nymex) | USD 2.94 | +4.3% | |
Gold | USD 2,612.30 | +1.6% | |
BTC | USD 90,387.30 | +0.5% (YTD: +104.6%) |
THE CLOSING BELL: TADAWUL-
The TASI rose 0.2% yesterday on turnover of SAR 5.5 bn. The index is down 1.1% YTD.
In the green: Zoujaj (+9.1%), Ardco (+5.8%) and Amak (+4.4%).
In the red: East Pipes (-3.8%), APC (-3.7%) and AWPT (-3.3%).
THE CLOSING BELL: NOMU-
The NomuC rose 0.4% yesterday on turnover of SAR 221.4 mn. The index is up 20.7% YTD.
In the green: Shalfa (+14.0%), Sure (+13.2%) and Alnaqool (+12.2%).
In the red: Alqemam (-12.0%), NGDC (-5.9%) and Horizon Educational (-5.7%)
NOVEMBER
3-23 November (Sunday-Sunday): NEOM Beach Games, Neom.
11-22 November (Monday-Friday): The Diplomatic Conference to Conclude and Adopt a Design Law Treaty, Riyadh.
18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Dammam.
19-20 November (Tuesday-Wednesday): The two-day retail subscription of United Holding International Company’s Tadawul IPO.
19-20 November (Tuesday-Wednesday): The Women's Economic Forum 2024, Dammam.
20 November (Wednesday): Invest in Health Forum, Najran
20-21 November (Wednesday-Thursday): The Saudi Rail Conference and Exhibition, Riyadh International Convention and Exhibition Center, Riyadh.
20-21 November (Wednesday-Thursday): King Abdullah Financial District (KAFD) Leadership Conference, Kafd Exhibition Center, Riyadh.
19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam.
21 November (Thursday): Final allocation for Multi Business Group’s (MBG) Nomu IPO.
22 November (Friday): Submission deadline for UNCCD Young Researchers Award at COP16.
23 November (Saturday): 600, Jeddah Yacht Club and Marina.
24 November (Sunday): Balance of trade for September.
25 November (Monday):The final allocation of shares of United Holding International Company’s IPO on Tadawu.
25 November (Monday): Refunds for Multi Business Group’s (MBG) Nomu IPO.
25-27 November (Monday-Wednesday): World Investment Conference, Riyadh.
25 November-1 December (Monday-Sunday): Offering period for Digital Research Company’s (DRC) Nomu IPO.
26 November (Tuesday): Saudi Aramco 3Q 2024 dividend distribution.
26-28 November (Tuesday-Thursday): Black Hat MEA 2024, Riyadh Exhibition & Conference Center, Malham
26-28 November (Tuesday-Thursday): Future Power Expo, Riyadh.
26-28 November (Tuesday-Thursday): Saudi Electricity Expo, Riyadh.
28 November-14 December (Thursday-Saturday): Noor Riyadh, Riyadh.
29 November-2 December 2024 (Sunday-Wednesday): World Sailing Youth Match Racing World Championship, Jeddah Yacht Club and Marina.
DECEMBER
1 December (Sunday): Opec+ Joint Ministerial Monitoring Committee meeting.
1 December (Sunday): Dallah Healthcare 3Q 2024 dividend distribution.
2-4 December (Monday-Wednesday): Emmanuel Macron expected to visit Riyadh.
2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh.
2-13 December (Monday-Friday): Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification, Riyadh.
3 December (Tuesday): Riyad Bank PMI for November.
3-4 December (Tuesday-Wednesday): Saudi Green Initiative (SGI), Riyadh.
3-5 December (Tuesday-Thursday): The International Business Exchange – IBEX EVENTS, Riyadh.
4 December (Wednesday): Final allocation for Digital Research Company’s (DRC) Nomu IPO.
4-5 December (Wednesday-Thursday): Zakat, Tax and Customs Conference, Riyadh.
5-8 December (Thursday-Sunday): World Sailing Women’s Match Racing World Championship, Jeddah Yacht Club and Marina.
5-14 (Thursday-Sunday): Red Sea International Film Festival, Jeddah.
8 December (Sunday): Refunds for Digital Research Company’s (DRC) Nomu IPO.
10-12 December (Tuesday-Thursday): CPHI Middle East, Riyadh Front Exhibition & Convention Center, Riyadh
11 December (Wednesday): Billboard Arabia Music Awards (BBAMAs), King Abdullah Financial District, Riyadh.
11 December (Wednesday): FIFA Congress, which will decide the hosting countries for the FIFA World Cup 2030 and 2034
12-14 December (Thursday-Saturday): Soundstorm by MDLBEAST music festival.
15-19 December (Sunday-Thursday): Internet Governance Forum, King Abdulaziz International Conference Center, Riyadh.
17-18 December (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.
18-19 December (Wednesday-Thursday): Impact Makers Forum (ImpaQ), Mayadeen Hall, Riyadh.
23-26 December (Monday-Thursday): Aqarat Expo, Riyadh.
31 December (Tuesday): Last day for taxpayers to benefit from Zatca’s fines and penalties waiving initiative.
State budget approval and release.
2025
1Q: BinDawood Holding expected to close 100% acquisition of Zahrat Al Rawdah Pharma
1Q: Roshn expected to raise SAR 2.6 bn from international bank
Saudi and Turkey plan to raise their bilateral trade volume to USD 10 bn
JANUARY 2025
1-17 January (Wednesday-Friday): 2025 Dakar, Bisha and Shubaytah.
14-16 January (Tuesday-Thursday): Future Minerals Forum, King Abdulaziz International Conference Center, Riyadh.
27-29 January (Monday-Wednesday): Real Estate Future Forum, Four Seasons Hotel, Riyadh.
28-29 January (Tuesday-Wednesday): Federal Open Market Committee meeting.
28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Riyadh.
29-30 January (Wednesday-Thursday): Global Labor Market Conference, Riyadh.
FEBRUARY 2025
1 February (Saturday): UFC event, The Venue, Riyadh.
4-5 February (Tuesday-Wednesday): The RLC Global Forum, Riyadh.
6 February (Thursday): Property registration deadline for owners in several districts of seven Qassim cities.
6-8 February (Thursday-Saturday): Liv Golf season opener, Riyadh Golf Club, Riyadh.
8 February (Saturday): Sotheby’s first auction in the Kingdom, Diriyah.
10-13 February (Monday-Thursday): Leap 2025, the Kingdom’s premier tech investment conference.
14-15 February (Friday-Saturday): Formula E, Diriyah.
16-17 February (Sunday-Monday): AlUla Conference for Emerging Market Economies, AlUla.
19-21 February (Wednesday-Friday): Saudi Media Forum, Riyadh.
22 February (Saturday): Founding Day.
MARCH 2025
1-30 March: Ramadan.
18-19 March (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.
31 March- 3 April (Monday-Thursday): Eid Al Fitr.
APRIL 2025
7-9 April (Monday-Wednesday): Sports Investment Forum (SIF), Riyadh.
MAY 2025
6-7 May (Tuesday-Wednesday): Federal Open Market Committee meeting.
31 May-5 June (Saturday-Thursday): Hajj.
JUNE 2025
6-9 June ( Friday-Monday): Eid al-Adha.
16-17 June (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.
26 June (Thursday): 2024-2025 academic year ends.
JULY 2025
31 July (Thursday): Deadline for companies with SAR 2.5 mn or more in 2022/2023 revenues to integrate e-invoicing solutions with Fatoora.
29-30 July (Tuesday-Wednesday): Federal Open Market Committee meeting.
SEPTEMBER 2025
17-18 September (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.
23 September (Tuesday): Saudi National Day.
OCTOBER 2025
28-29 October (Tuesday-Wednesday): Federal Open Market Committee meeting.
NOVEMBER 2025
24-26 November (Monday-Wednesday) The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh Front Convention & Exhibition Centre, Riyadh.
DECEMBER 2025
December: The Fortune Global Forum 2025, Riyadh.
9-10 December (Tuesday-Wednesday): Federal Open Market Committee meeting and Summary of Economic Projections.
2026
UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.
26-29 October (Monday-Thursday): World Energy Congress, Riyadh.
2027
The World Water Forum takes place in Riyadh.
The Ocean Race finishes in Amaala on the Red Sea.
Riyadh-Kudmi transmission line to be completed.