IsDB Group commits bns in development financing for Algeria, Senegal

The IsDB Group committed bns in development financing yesterday, with USD 3 bn for Algeria over the next three years, as well as as EUR 2 bn funding over five years headed Senegal’s way.

#1- Algeria to receive over USD 3 bn from IsDB: The Islamic Development Bank (IsDB) announced to a cooperation framework with Algeria, committing over USD 3 bn in development financing for vital projects in the country over the next three years, state news agency SPA reports.

Use of funding: The financing, which was announced yesterday during the IsDB Group’s annual meetings in Algiers, will support railway development, alongside projects in infrastructure, health, and renewable energy, said IsDB Group Chairman Muhammad Al Jasser.

ICYMI- The Islamic Development Bank (IsDB) raised USD 1.75 bn in its first global sukuk sale of 2025 in March, part of its USD 25 bn Trust Certificate Issuance Program, pushing its total issuance volume beyond USD 50 bn with broad investor participation from regions including the Middle East, Europe, Asia, and offshore US accounts.

#2- Senegal secures EUR 2 bn ITFC funding for sustainable development: The International Islamic Trade Finance Corporation (ITFC) — an IsDB group member — has signed a five-year framework agreement with the Republic of Senegal valued at EUR 2 bn, SPA reported separately. The funding is dedicated to financing sustainable development across Senegal’s various economic, health, and cultural sectors and projects.

REMEMBER- Early this year, the IsDB pledged USD 4.7 bn for the Mission 300 initiative, which aims to accelerate the deployment of electricity across Sub-Saharan Africa to 300 mn people by 2030.

Naif Alrajhi partners with TGCC: Naif Alrajhi Investment partnered with Morocco’s largest construction company Travaux Généraux de Construction de Casablanca (TGCC) to jointly develop construction and real estate projects in the Kingdom through the latter’s Saudi subsidiary TGCC Middle East, Alrajhi said in a statement yesterday.

Part of a broader Gulf-expansion plan, TGCC’s Saudi expansion aims to tap into the country’s booming real estate market and support its ongoing transformation, CEO Mohammed Bouzoubaa told Asharq Business. Additional details regarding the value of investments and timelines were not disclosed.

By the numbers: TGCC currently operates in six African countries, where it delivered around 1k projects over the past three decades, Asharq Business reported. It posted a net income of USD 56 mn in 2024, up 44% y-o-y, with an order backlog surpassing USD 1 bn by the end of last year.

Not the first foreign investment in the Kingdom’s booming real estate sector: Egypt’s Talaat Moustafa Group is leading the SAR 31.4 bn Banan project in Riyadh, while Palm Hills is developing integrated, multi-use urban projects and 15 international schools in the Kingdom. A Chinese consortium is also planning a USD 2.8 bn development of 100k housing units across the country.

Total equity capital raised on the Saudi Exchange jumped 263% y-o-y to nearly SAR 72 bn last year, as the main and parallel markets saw a flurry of public and private offerings, buoyed by regulatory reforms, streamlined listing procedures and greater investor participation, according to the Capital Market Authority’s (CMA) 2024 report (pdf).

The breakdown: A total of 40 companies were listed last year, netting a combined SAR 13.2 bn — including 13 main market listings and 27 Nomu debuts. Private placements raked in more than SAR 4 bn, in addition to proceeds from eight rights issues, one non-rights capital increase, three direct listings on Nomu, and one newly-listed real estate investment fund.

Small caps + small investors: Out of 60 CMA-approved IPO and listing requests last year — up 36.4% y-o-y — nearly two-thirds were eyeing Nomu debuts, signaling continued momentum in SME listings. A total of 7.5 mn individual subscriptions were recorded across main market IPOs over the same period, reflecting higher participation from retail investors.

AND- Global investors are buying it: Foreign investment in the Kingdom’s capital market surged 10.1% y-o-y to SAR 218 bn in 2024. Total foreign ownership reached SAR 423 bn by year-end, accounting for 11% of free-float shares on the main market.

The debt market is also booming: The total value of listed sukuk and debt instruments hit SAR 663.5 bn last year, up from SAR 549.8 bn in 2023, marking a 20.6% y-o-y increase. Debt offerings raised some SAR 40.43 bn over the same period, up from SAR 29.95 bn the previous year, with private offerings accounting for SAR 39.43 bn of the total.

ASSET FLOWS-

Total assets under management (AUM) across public and private funds hit a record SAR 1.1 tn in 2024, up 20.9% y-o-y, as more capital flowed into professionally managed funds — signaling stronger institutional activity. Investment funds’ assets were up 25.2% y-o-y to SAR 699.1 bn over the same period.

Exchange-Traded Funds (ETFs) witnessed a 935% surge in total asset value to SAR 6.7 bn in 2024. The number of subscribers in ETFs increased by 39.8% y-o-y to 23.8k. Meanwhile, Real Estate Investment Trusts (REITs) saw their asset value increase by 5.8% y-o-y to SAR 29.3 bn, while their subscribers declined by 6.7% y-o-y to 513.6k.

Total assets of managed private portfolios climbed by 13% y-o-y to SAR 353.9 bn during last year. Local equities were the largest asset category, reaching SAR 166.8 bn, up 18.6% y-o-y, followed by other investment instruments at SAR 126.8 bn, and investment funds at SAR 28.3 bn.

MORE HIGHLIGHTS FROM THE REPORT-

• The number of licensed financial institutions rose to 186 in 2024, with the CMA issuing 25 new licenses across the sector last year. The regulator also approved 46 fintech sandbox licenses, spanning robo-advisory, digital fund distribution, social trading models, and debt investment tools.
• The Kingdom ranked first among G20 countries in equity market capitalization, shareholder rights and VC strength, and second globally in equity market development.

Lunate and Brookfield form a USD 1 bn JV to invest in real estate: Abu Dhabi-based asset manager Lunate partnered with Brookfield Asset Management to launch a USD 1 bn joint venture (JV) focused on residential real estate in the Middle East, according to a press release.

The new venture will focus on developing high-quality build-to-sell and opportunistic buy-to-sell residential assets, across Saudi Arabia and the UAE. The JV will establish a dedicated team to oversee these developments.

Lunate will contribute “a significant cornerstone investment to the JV” and will tap into its regional network to support fundraising and commercialization, according to the statement.

It’s not the first time the two firms have linked up: In April 2024, Lunate acquired a 24.5% stake in ICD Brookfield Place from Brookfield. While financial terms were not disclosed, Bloomberg previously valued the tower at USD 1.5 bn.

The story also got ink from Bloomberg.

Local spacetech startup SARsatX raised USD 2.6 mn in a seed funding round led by Neom’s cognitive technology arm Tonomus, with the participation of Wa’ed Ventures, Access Bridge Ventures, and KAUST Innovation Ventures, it said in a press release.

Where will the money go? The funding will be allocated to develop the company’s Earth observation analytics capabilities and accelerate the integration of advanced data insights into satellites.

Not the first backing for SARsatX: The company received backing from Egypt-based, early-stage venture capital firm Flat6Labs in mid-2024, after participating in Cycle 3 of the Riyadh Seed Program. It also received a USD 800k grant from NTDP in 2023 and another USD 55k grant from the KAUST Innovation Fund in 2020.

Going global? SARsatX participated in the 2025 Mobile World Congress held in Barcelona in March, supported by the “Tomoh” program run by Monsha’at in collaboration with the Saudi Export Development Authority, hoping to strike new partnerships in Europe.

About SARsatX: Founded by Ahmed Alzubairi (LinkedIn) and Muhannad Almutiry (LinkedIn) as a spin-off from KAUST’s Taqadam Accelerator in 2019, SARsatX specializes in advanced Earth observation analytics and providing near real-time satellite data to support various applications, including deforestation monitoring, oil leak detection, disaster response, urban development, and border security.

IN OTHER STARTUP NEWS-

#1- San Francisco-based predictive procurement platform Arkestro landed a USD 36 mn strategic investment led by Aramco Ventures and Altira Group with participation from existing investors NEA, KDT, and Activant, Aramco Ventures said in a press release.

Use of proceeds: The fresh funds will go toward accelerating Arkestro’s innovation in AI-powered procurement technology and supporting its global expansion.

About Arkestro: Arkestro’s platform uses AI, behavioral science, and game theory to accelerate procurement, enhance supplier collaboration, claiming to deliver 18.8% average cost savings per USD 1 mn in spending.

#2- Homegrown E-commerce SaaS startup Ziadah closed its seed funding round with the support of an unnamed angel investor, according to a press release. No further details on the funding round were disclosed.

About Ziadah: Founded in 2024 by Ali Al Dihnayn (Linkedin) and Mahmoud Omar (Linkedin), Ziadah provides online retailers with tools that analyze shoppers' behavior and integrate the data with e-commerce platforms.

INFRASTRUCTURE-

#1- US multinational infrastructure consulting firm Aecom is now a key partner in the upgrade of Riyadh’s King Fahad Sport City, it said in a press release. The firm was contracted by the Sports Ministry to bring the facilities up to the Fifa standards ahead of the AFC Asian Cup in 2027 and the 2034 Fifa World Cup.

We saw it coming: Aecom was reportedly among a group of international companies looking to land some project management consultancy contracts in the Kingdom. The company has already been involved in the expansion of King Khaled International Airport, as well as the development of King Abdullah port and Jeddah’s drainage system.

#2- The National Water Company (NWC) completed 18 capital and operational projects in Makkah and at the Holy Sites worth SAR 400 mn to boost water coverage rates and overall network efficiency ahead of the upcoming Hajj season, it said in a statement.

The breakdown: The projects involved the construction and rehabilitation of water storage facilities — including a 190k sqm steel tank — along with replacing pumps, installing meters, sensors, pipelines, and valve rooms, and upgrading networks.

BANKING-

Fitch Ratings assigned the Saudi Export-Import Bank’s (Saudi Exim) long-term foreign and local currency issuer default ratings (IDR) at A+ with a stable outlook, the credit rating agency said in a note. It also assigned the bank’s short-term IDR at F1+. The ratings reflect Saudi Exim’s government-ownership — through the National Development Fund — along with Fitch’s view of “virtually certain” government support.

ALSO- Saudi Exim and the Jordanian Housing Bank for Trade and Finance (HBTF) signed a USD 10 mn credit line agreement to boost Saudi non-oil exports into Jordanian markets and foster trade relations, state news agency SPA reports.

HOSPITALITY-

CIMC Modular Building Systems (CIMC MBS) agreed to build the Earth Riyadh Hotel in the Kingdom, marking the Chinese firm’s entry into the Middle East, according to a press release. Scheduled for completion in 2026, the Earth Riyadh Hotel will be a three-story, four-star boutique hotel in the Al Maather district, spanning 11k sqm and featuring 86 rooms.

Efficiency in mind: CIMC MBS will implement a modular approach in the construction — with module design, offsite manufacturing, and on-site installation — which is projected to cut the construction timeline by half and improve resource and energy efficiency, compared to traditional methods.

EXPANSION-

New York-based live entertainment company RWS Global is opening a new headquarters in Riyadh to strengthen its presence in the Middle East, according to a statement. The move aims to make the company “more available” for regional clients, after a decade of operating in the region, particularly in the Kingdom and Abu Dhabi, said RWS Global Chairman & CEO Ryan Stana.

Emerging market stocks are once again whetting the appetite of investors, with previously sidelined emerging market ETFs — exchange traded funds — seeing their fourth consecutive week of inflows, reports Bloomberg. Recent inflows pushed EM ETFs into the green YTD for the first time since April, with USD 1.8 bn worth of inflows pushing the collection of ETFs to a net positive of USD 880.4 mn

“After years of being unloved and overlooked, EM equities are seeing significant demand as allocators step up their need for geographical diversification,” said Global X portfolio manager Malcom Dorson. Moody’s downgrading the US’ sovereign credit rating by one notch to AA1 has added “fuel to the fire, and we think this rally is sustainable,” he added.

Growing risk appetite drove the Avantis Emerging Markets Equity EFT to record inflows upwards of USD 1 bn last week — marking its best ever week and accounting for more than half of EM ETFs listed stateside.

But zooming into which EM assets have become the most attractive, China is the clear front runner, with inflows reaching USD 669.1 mn last week following a temporary trade war truce between the US and the world’s factory. With trade war concerns at bay — for now at least — traders are now pricing in a much lower possibility of a coming global recession, which is good news for emerging market stocks.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning. The Shanghai Composite is up 0.1%, the Hang Seng and Kospi are both in the green, looking at gains of 0.4% and 0.7%, respectively. Meanwhile, Japan’s Nikkei is down 0.2%.

THE CLOSING BELL: TADAWUL-

The TASI rose 0.3% yesterday on turnover of SAR 4.9 bn. The index is down 5.0% YTD.

In the green: MBC Group (+6.0%), NGC (+4.5%) and Zamil Indust (+4.2%).

In the red: Go Telecom (-4.6%), Sadafco (-2.7%) and Chubb (-2.5%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.1% yesterday on turnover of SAR 22.1 mn. The index is down 12.5% YTD.

In the green: HKC (+10.8%), NBM (+10%) and Naseej Tech (+7.9%).

In the red: Dkhoun (-19.8%), Alshehili Metal (-5.2%) and Paper Home (-3.5%).

CORPORATE ACTIONS-

National Medical Care’s general assembly approved a SAR 89.4 mn dividend distribution for FY 2024 at SAR 2 per share, starting Monday, 2 June, it said in a disclosure to Tadawul.