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Good morning, wonderful people. It’s a trade-heavy issue this morning as we prepare to slide into August.
BUT FIRST- Saudi athletes eye first medal at Paris Olympics: Ten athletes representing the Kingdom in Paris will be competing in four sports: athletics, swimming, taekwondo, and show jumping (equestrian). Seventeen-year-old swimmer Mashael Al Ayed will be the first athlete to compete, taking to the pool for the 200-meter freestyle today. Al Ayed is the first female swimmer to represent the Kingdom at the Olympics.
The bisht and nashal made it to the Seine, with the delegation embracing their heritage by wearing traditional dress at the (very rainy) opening ceremony on Friday (see photo above):
AND- The Public Investment Fund is one step closer to building the region’s largest telecom infrastructure operator after shareholders of telecom giant stc approved PIF’s acquisition of a controlling stake in stc-owned telecom tower and infrastructure operator Tawal, stc said a disclosure to Tadawul (pdf) on Thursday. The fund aims to acquire a 51% stake in Tawal at a cost of SAR 8.7 bn.
The goal: PIF is building what will become the region’s largest telecom infrastructure company. The PIF and stc will put Tawal and tower operator Golden Lattice Investment (Glic) under a new entity that will own and manage a portfolio of c. 30k towers across five countries. The new entity will have annual revenues in the USD 1.3 bn range, according to PIF. The transaction still requires regulatory approval.
WATCH THIS SPACE-
#1- Industry and Mineral Resources Minister Bandar Al Khorayef pitched senior execs from Brazil’s top miner, Vale, on doing business in Saudi Arabia, the ministry’s spokesman said in a post on X. Al Khorayef also met with Brazilian manufacturers interested in setting up shop here, without providing further details. Al Khorayef spoke separately about investment in petrochemicals with senior execs from Brazil’s state-run oil company, Petrobras.
BACKGROUND- Manara Minerals, a JV between Saudi Arabian Mining (Ma’aden) and the PIF, completed in May the acquisition of a minority stake in Brazilian miner Vale Base Metals for USD 2.6 bn.
IN CONTEXT- Al Khorayef led delegation to Brazil and will head to Chile to look at potential investments in mining and manufacturing. They met with government officials as well as execs from top mining, aviation and food companies.The delegation’s trip to South America wraps up on Tuesday, 30 July.
#2- Sukuk sales by regional issuers are set to fall in the summer months before picking up in 4Q 2024 as governments continue to pursue diversified funding for projects and look to plug budget deficits, Fitch Ratings said in a report. An expectation that interest rates could start to decline toward the end of the year and lower oil prices could also boost issuances in the final quarter.
REMEMBER- Sukuk and bond issuances by GCC countries grew 38% y-o-y to USD 75.5 bn in 1H 2024, with Saudi accounting for almost half of all sukuk and bond issuances out of the Gulf during the period, according to data from Kuwait Financial Centre (Markaz). Saudi debt sales led the market, raising USD 37 bn in 44 transactions to account for 49% of the total amount raised in the GCC, according to Markaz.
#3- Shareholders of Tadawul-listed Riyadh Development Co. will vote on establishing a joint venture with Riyadh Holding Co. to develop the Deira district in central Riyadh on Thursday, 15 August, according to a disclosure to Tadawul. Riyadh Development will own a 46.3% share in the new company via the in-kind contribution of its AlTameer Wholesale Center, whose value is estimated at SAR 675 mn.
#4- Sudanese paramilitary leader Gen. Mohammed Hamdan Dagalo plans to attend ceasefire talks in Switzerland mediated by Saudi and the US next month, he said in a post on X. “We are ready to engage in these talks constructively and look forward to them being a significant step towards peace, stability, and the establishment of a new Sudanese state based on justice, equality, and federal governance,” he said. The talks are set to begin on Wednesday, 14 August, with Egypt, the UAE, the African Union, and the UN as observers. The war in Sudan has displaced nearly 10 mn people since April 2023.
HAPPENING TODAY-
Bookbuilding for ASG Plastic Factory’s IPO on Nomu starts today as the plastics manufacturer looks to take a 10.6% stake to Tadawul’s parallel market at a price range of SAR 40-44. The subscription period, which is open only to qualified investors, runs until Monday, 5 August. The final allocation of shares will take place on Sunday, 11 August.
WEATHER- Riyadh will see a daytime high of 44°C and an overnight low of 31°C. It’s almost as hot in Makkah, where the mercury will peak at 43°C during the day before dropping to 32°C at night. Meanwhile, Jeddah will see a high of 41°C and a low of 32°C.
PSAs-
#1- Nearly 13k Toyota and Land Cruisers and Lexus LX600 and LX500 SUVs are being recalled over manufacturing defects that could lead to engine failure, the Commerce Ministry said in a post on X. The vehicles are from the 2022 and 2023 model years. You can tell if your vehicle is affected by going to recalls.sa and typing in your VIN number. Toyota distributor Abdul Latif Jameel will set things right without charge.
#2- Riyadh Municipality is once again reminding firms of a Tuesday, 30 July deadline for prequalification documents for tenders related to its parks and recreation projects, state news agency SPA reported. The tenders are part of a forestation project that aims to aims to plant 7.5 mn trees across the capital and raise vegetation cover to 9% of total area.
#3- The next round of invoicing: Companies that had more than SAR 5 mn in revenues subject to VAT in 2022 or 2023 will have to integrate their e-invoicing solutions with Zatca’s Fatoora platform from 1 February, 2025, Zatca said in a statement. It’s the latest phase of a e-invoicing rollout that began in late 2021.
#4- Expats can ask for copies of employment and experience certificates without charge through the Human Resources Ministry’s Qiwa platform, the Saudi Gazette writes. The service allows foreign residents to request certificates detailing their current job or past posts they’ve held in the Kingdom.
DATA POINTS-
#1- More people are using the railway system: The number of travelers using passenger trains grew 13% y-o-y to 9.3 mn across the Kingdom in 2Q 2024, the Transport General Authority said in a post on X. Meanwhile, cargo transported on freight trains rose 9% over the same period to 6.9 mn tons.
#2- King Abdul Aziz Port in Dammam saw 28.8% y-o-y growth in cargo throughput in June, hitting 24.9 mn tons, compared to 19.4 mn tons in the same month last year, according to a statement from the Saudi Ports Authority (Mawani). Exported containers increased 39.1% to 624.7k TEUs, while imported containers rose 34.7% to 872.4 TEUs. Meanwhile, transshipment containers volume increased 87.9% y-o-y to 37.8k TEUs.
OIL WATCH-
The Kingdom purchased fuel oil from Kuwait in July for the first time since May 2022 to cope a summertime surge in demand for electricity, Reuters reports, citing shipping analytics firms Kpler and Vortexa.
By the numbers: Saudi imported c. 37k barrels per day of fuel oil from Kuwait and is on track to buy more in August Aramco Trading was awarded a tender to purchase 130k tons of very low sulfur fuel oil from Kuwait’s Al Zour refinery, trade sources said.
IN CONTEXT- Russia is Saudi’s preferred supplier of fuel oil, but has been supplying more and more to Chinese and Indian buyers, prompting Saudi to buy from Kuwait.
SPORTS-
French winger Moussa Diaby has finalized his move to Al Ittihad, joining in from English Premier League side Aston Villa, according to a statement from the club. Diaby joined the Jeddah side under a five-year contract for a reported fee of EUR 60 mn. He joins fellow compatriots Karim Benzema and new signing Houssem Aouar, with Al Ittihad reportedly keeping tabs on Man City’s Ederson as they look for a new goalkeeper, according to sports journalist Fabrizio Romano.
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THE BIG STORY ABROAD-
It’s a mixed bag on global front pages this morning with no single story capturing the attention of the business press.
#1- Harris wants the votes of crypto bros: US Vice President and Democratic candidate Kamala Harris’s campaign advisers have contacted a number of crypto firms to attempt to “reset” relations between the party and the crypto sector at large, as the Harris campaign looks to mend relations with the industry following its criticism of the Biden administration, Financial Times reports, citing four people familiar with the matter. Harris’s embrace of the industry comes as prominent crypto groups are largely expected to be an important source for funding in the upcoming US presidential elections.
The sector already has a favorite candidate: Republican nominee Donald Trump enjoys a high level of support from the crypto industry — he was the keynote speaker at the BTC 2024 gathering, where he promised to fire the head of the US Securities and Exchange Commission if he returns to the White House.
Silicon Valley grandees including Andreessen Horowitz’s namesake partners have also lined up behind Trump, the Verge notes.
#2- An odd remark from Trump raises eyebrows: The Republican candidate told attendees during a conservative Christian event that they “don’t have to vote again” if they vote for him in November. He promised to “fix” all Christian-related concerns if he secures a second term so that Chritians will not need to be politically engaged again.
#3- New UK Finance Minister Racher Reeves is promising the most “pro-growth, pro-business” treasury that the country has seen to date.
#4- The 2024 Paris Olympics are in full swing: China secured the first gold medals of the 2024 Paris Olympics in mixed air rifle shooting and women synchronized diving. Australia currently leads the medal table with three gold and two silver medals. Stay up to date with who secured what with Bloomberg’s tracker.
CIRCLE YOUR CALENDAR-
The International Chemistry Olympiad — a competition for the world’s brightest chemistry students — will wrap up on Tuesday, 30 July. The annual event is held in King Saud University in Riyadh with teams of four students and two mentors from institutions around the world undergoing practical and theoretical assessments in chemistry.
The Crawford vs Madrimov boxing showdown will take place on Saturday, 3 August at the Los Angeles BMO Stadium. The event is the highlight of the Los Angeles Riyadh Season Card which features five other bouts. You can check them out here.
Aramco is set to release its 1H 2024 results on Tuesday, 6 August, according to its website. You can tune into the audio webcast of its earnings call here. The oil giant’s net income dipped a bit more than 14% in 1Q 2024 to SAR 102.3 bn.
Small and medium enterprises regulator Monsha’at will hold a franchise tour of five cities on 12-13 August (Monday and Tuesday). The tour, which starts in Khobar and includes stops in Abha, Qassim, Hail and Jeddah, will showcase success stories in the sector. The tour then picks up with seven stops scheduled for an installment next year.
Cybersecurity training event SANS Riyadh Cyber Leaders August 2024 will run from Sunday, 18 August to Thursday, 22 August at the Hyatt Regency Riyadh Olaya.
The eight-week Esports World Cup runs until Sunday, 25 August Riyadh’s Boulevard City. The world’s top esports clubs are competing for a pool of USD 60 mn — the largest purse in esports.
The two-day Middle East LPG Expo – Saudi Arabia 2024 will open on Tuesday, 10 September, bringing together upwards of 4k liquified petroleum gas (LPG) experts to discuss the future of the fuel gas in clean energy. Saudi accounts for 50% of demand for LPF in the Middle East and Africa.
The TotalEnergies CAF Super Cup Final 2024 between Egyptian rivals Al Ahly and Zamalek will be held in Riyadh on Friday, 27 September. The venue and kick-off time of the match will be announced at a later date.
This year’s edition of security-focused expo Intersec Saudi Arabia will run from Tuesday, 1 October to Thursday, 3 October at the Riyadh International Convention and Exhibition Center.
International food and beverage expo InFlavour is returning to Riyadh on Tuesday, 1 October. The three-day event — which will be organized in collaboration with the Environment, Water and Agriculture Minister, Tahaluf, Pepsico, Al Rabie, Arasco and Nadec — will take place in Riyadh’s Front Exhibition and Conference Center.
