Good morning, friends, and happy Thursday to you all. We have a blockbuster issue for you this morning, leading off with news that Savola is divesting Almarai (where its investment is up >100x since it first bought into the dairy giant) to focus on fresh growth going forward.

^^ We have the rundown on Savola, the latest on IPOs by Modern Mills and Avalon, a wrapup of the PIF’s private-sector conference — and more — in this morning’s news well, below.

Up first:

#1- Oil giant Aramco is in talks with Indian firms on potential investments, Reuters reported yesterday, citing statements by Aramco’s Senior VP Faisal Al Faqeer during India Energy Week in Goa. “Hopefully we will see some announcements soon on investment in Indian companies,” he said, without providing further details on the investments.

India is the world’s third-largest importer and consumer of oil and has been pushing for years to bring Aramco on side for its planned strategic reserve program.

#2- Some of the Kingdom’s fresh produce will be making its way to Europe.Dava Agricultural signed a first-of-its kind agreement with Dutch fruit and vegetable trader Lehmann & Troost to sell vegetable crops grown through hydroponic farming to the Netherlands and beyond in Europe, state news agency SPA reported yesterday. The surplus produce includes tomatoes, cherry tomatoes and bell peppers.

Hydroponic farming? It is a farming technique where plants are grown using water-based mineral nutrient solutions rather than soil. It helps provide fresh produce in regions with extreme drought and low soil quality.

#3- Bahrain’s Crown Prince Salman bin Hamad Al Khalifa was in town for talks with Crown Prince and Prime Minister Mohammed bin Salman, SPA reported yesterday. They two chaired the Saudi-Bahraini Coordination Council and inked a number of MoUs in energy, economy, and capital markets.

THE BIG STORY ABROAD-

As has been the case most of this week, there’s no single big story abroad that has captured the imaginations of the business or mainstream press. Among the stories you need to know about this morning — or might simply find interesting:

Republican Nikki Haley lost to “none of these candidates” in what the New York Times calls an “irrelevant” Nevada primary, but she’s still staying in the race in a bid to “broaden voters’ imagination of what’s possible, both for her prospects in the 2024 Republican presidential primary, and for the nation.”

The S&P hit a record highas strong earnings continued and tech stocks rallied. Among those reporting earnings: Uber posted an operating profit for the first time on a full-year basis (you can check out its earnings here).

AND- Cairo is playing host today to a fresh round of ceasefire talks, but Israeli PM Benjamin Netanyahu tried to pour cold water on the conversation, dismissing Hamas’ goal of a long ceasefire as “delusional.” US Secretary of State Antony Blinken is still pushing Israel to play ball.

MORNING DISTRACTIONS-

  • Finance meme lord Litquidity is a 32-year-old former banker named Hank Medina who did time at Jeffries and Deutsche Bank. Medina sat down for his first-ever interview courtesy the Financial Times. Don’t know him? Check out his IG.
  • Aussie businesses that call or email employees after hours could face penalties under proposed legislation that would give staff the right to “refuse to monitor, read or respond to contact, or attempted contact, from an employer outside of the employee’s working hours unless the refusal is unreasonable.” (Bloomberg)

DATA POINTS-

Exports declined 15.6% y-o-y to SAR 95 bn in November 2023 due to a 19.4% decrease in oil sales, according to a Gastat report (pdf). Non-oil exports fell 0.7% y-o-y to SAR 22.6 bn in the same period. Meanwhile, imports rose 3.7% y-o-y to SAR 67 bn in November 2023.

CIRCLE YOUR CALENDAR-

Filipino exporters are coming to town: A business-matching tour will kick off on Saturday, 10 February, where a group of Filipino exporters of food, beverage and personal care products will tour Riyadh, Jeddah, and Dammam to market their businesses, Arab News reports.

The Saudi Capital Market Forum will open on Monday, 19 February and wrap up on Tuesday. Held under the theme “Powering Growth,” the event will bring together members of the global financial landscape for discussions on the capital markets and investment strategies.

The Diriyah Contemporary Art Biennale will kick off in Diriyah on Tuesday, 20 February and wrap up on Friday, 24 May. Headlined After Rain, it will be led by German curator Ute Meta Bauer and features 92 artists from 43 countries. It will see several new commissions, including a joint project documenting “Saudi futurism” since the 1940s by local artist Ahmed Mater and Berlin-based photographer Armin Linke.

The Future Investment Initiative (FII) will host a two-daypriority summit in Miami startingThursday, 22 February.

Leave a comment

Your email address will not be published. Required fields are marked *