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TECH-
Al Moammar Information Systems to study feasibility of cloud-based AI: Tadawul-listed Al Moammar Information Systems (MIS) has signed an MoU with Saudi Fransi Capital to explore the feasibility of Saudi-based, cloud-hosted artificial intelligence, it said in a disclosure to Tadawul. The MoU enters into force within six months of its signing date, MIS said, without disclosing financial details on the plan.
The details: MIS will conduct a study on the market for cloud-hosted AI services and recommend a business model to that end. Saudi Fransi Capital will assess funding options and implementation strategies for the plan either through a joint venture, a private equity fund or a combination of both. MIS “will be Saudi Fransi Capital’s lead technical and commercial partner and collaborator if and when this venture is launched,” it said.
M&A WATCH-
Sarco is seeking to acquire Golden Compass, Gesico: Oil refineries operator Saudi Arabian Refineries Company (Sarco) has signed two non-binding MoUs to acquire 100% of the mining consultancy firm Golden Compass and the sodium methylate manufacturer Gesico, Sarco said in separate disclosures to Tadawul (here and here). The acquisitions are set to take place via share swap after funneling additional capital into both companies, Sarco said, without disclosing how much capital it plans to allocate for the transactions.
About the companies: Golden Compass offers exploration, mining, drilling, and consulting services for companies in the mining sector, with offices located in Saudi Arabia and Australia. Gesico is a joint venture between Saudi FTCP Group and German Desatec GmbH that manufactures Sodium Methylate at its factory in Dammam. The catalyst is used to manufacture fuels, pharma products, and laboratory chemicals, among others.
TRADE-
Amendments to the rules of returned goods custom duties exemption: Businesses in the import / export industry can now export goods (which they have previously imported) for repair work and re-import them back into the country without having to pay custom duties, according to the new amendments (pdf). The same applies on goods of national origin that have been returned to the Kingdom by a foreign importer.
Why does it matter? This contributes to the Kingdom’s price competitive advantage in transactions with local importers / exporters, allowing for lower operational costs and encouraging the repair and reuse of products rather than disposal. This is the latest push part of the Kingdom’s ambition to become a major regional and international logistics hub as it better facilitates trade with the rest of the world.
DEBT WATCH-
Nomu-listed Pan Gulf Marketing (PGM) has obtained one-year Sharia-compliant bank facilities worth SAR 100 mn from the National Bank of Dubai to finance its working capital, according to a disclosure to Tadawul. No further details were provided. PGM listed on the parallel market in February after taking a 12% stake to market.
Nomu-listed National Building and Marketing (NBM) signed an agreement to raise the Shariah-compliant banking facilities limit provided by Alinma Bank by SAR 50 mn, according to a disclosure to Tadawul. This brings the total facilities made available to NBM by the bank to SAR 135 mn. NBM secured the revolving financing last week to finance its working capital.
