Good morning, ladies and gentlemen. With French President Emmanuel Macron wrapping up his visit to Riyadh, we have the rundown on the biggest business headline announced during his trip, with TotalEnergies and EDF Renewables landing contracts for three solar parks in Saudi. We also have news of the strongest non-oil economy growth in over a year.

HAPPENING TODAY-

#1- Institutional investors will be able to place their orders for the IPO of Almoosa Health starting today before the bookbuilding wraps up next Tuesday, 10 December. The healthcare provider will take a 30% stake to Tadawul’s main market. Part of the proceeds — after deducting an estimated SAR 52.4 mn in offering expenses — will be distributed to the selling shareholders, while the remaining will fuel the company’s growth plans and to repay outstanding debt.

ADVISORS- Our friends at EFG Hermes will act as underwriters and bookrunners on the transaction, alongside Banque Saudi Fransi Capital, which is also acting as the lead manager and financial advisor. PwC will act as financial due diligence advisor as well as market consultant, while Latham and Watkins is providing counsel. Moelis is advising the selling shareholders.

#2- The final allocation of shares for Digital Research Company’s (DRC) Nomu IPO is set to take place today. DRC priced its Nomu IPO at SAR 83 per share, which will see selling shareholders lock in some SAR 28 mn in total proceeds, giving the firm a market cap of SAR 140.1 mn at listing. The market research, data analytics, and consulting firm is offering a 22.5% stake on Nomu.

ADVISORS- Value Capital is quarterbacking the transaction as financial advisor and bookrunner. Receiving agents include SNB Capital, Al Rajhi Capital, BSF Capital, Alnima Investment, Riyad Capital, Aljazira Capital, Alistithmar Capital, Albilad Capital, ANB Capital, SAB Invest, Derayah, Yaqeen Capital, Alkhabeer Capital, and Sahm Capital.

#3- The Saudi-French Innovation Summit opens its doors at Crowne Plaza Riyadh today, according to Aleqtisadiah. The event will bring together over 50 French companies and 300 industry leaders, entrepreneurs, and investors from both nations to probe potential partnerships and investments in the tech sector.

#4- The two-day Zakat, Tax and Customs Conference will get underway in Riyadh in a few hours. The conference will focus on using digitization and artificial intelligence (AI) to improve Zakat, tax, and customs management, with the aim of supporting economic sustainability, security enhancement, and digital transformation. Key discussions will include balancing cooperation and competition, improving transparency, and driving efficiency through technological innovation in these fields.

WEATHER- Riyadh will be cloudy with a high of 26°C and a low of 14°C. Makkah is also getting some clouds, with temperatures peaking at 29°C and dropping to 21°C. Meanwhile, Dammam will have a high of 24°C and a low of 15°C.

PSAs-

#1- Property owners in 11 Riyadh districts must wrap up the registration of their properties by the end of the day tomorrow through the Real Estate Registry website, the Real Estate General Authority said in a statement. The districts are Al Mathar Ash Shamali, Al Murabba, Al Malaz, Al Olaya, An Namudhajiyah, Al Zahra, Al Nasiriyyah, Al Mutamarat, Ad Dhubbat, Taibah, and Dahiat Namar. Missing the deadline may result in fines.

#2- Drivers can now report road accidents using the Najm app under a new service launched by the Ins. Authority to facilitate the processing of auto ins. claims, according to state news agency SPA.

WATCH THIS SPACE-

#1- Shares of Arabica Star will begin trading on Nomu tomorrow at SAR 64 apiece, according to a Tadawul statement. Trading on the first three days will be subject to a price fluctuation limit of ±30%, after which the daily limit will be capped at ±10%, and a static price fluctuation limit of ±10% will be removed.

REFRESHER- The coffee shop and restaurant operator is taking a 25% stake to the parallel market in an offering that was 16.1x oversubscribed. Arabica Star’s final share pricing of SAR 64 sees it raising SAR 17.6 mn in proceeds and gives it a market cap of SAR 70.4 mn at listing, according to EnterpriseAM Saudi calculations.

#2- Nomu-listed AME for Medical Supplies is edging closer to making the jump to Tadawul’s main market, after its board signed off on the transition, it said in a filing to the exchange. The company tapped Aldukheil Financial Group as its financial advisor for the move, which now hinges on regulatory approval.

About AME: Established in 2005, the Jeddah-based company distributes medical products, supplies, and equipment primarily used in the fields of cosmetic and plastic surgery, according to its website. It has been trading on Nomu since January 2022, debuting with a capital of SAR 70 mn.

#3- The Industry and Mineral Resources Ministry earmarked five sites for setting up mining complexes in Riyadh, Makkah, and Asir, according to a post on X. The sites are located in Wadi Jawwah (1 sq km), Ad Dilam (2.5 sq km), and South Al Quwaiiyah (23.1 sq km) in Riyadh; Shabarqan (5.3 sq km) in Makkah; and East Al Dahou (2.2 sq km) in Asir.

#4- Saudi Arabia plans to draw SAR 400 bn in investments to its mining sector next year under the 2025 draft budget, Mubasher reports. The Industry and Mineral Resources Ministry also plans to offer industrial plots for investors in Jubail and Yanbu, with projected investments of SAR 29.9 bn.

#5- Almarai’s seafood and red meat production facilities are expected to be operational within two years, CEO Abdullah Albader told Bloomberg. The Kingdom’s largest dairy producer is also committing USD 1.8 bn to boost poultry output by up to 70% by 2026, as it targets 450 mn birds a year. The new ventures come as part of a SAR 18 bn five-year investment by the outfit to diversify its food portfolio and play into Saudi’s plan to promote food security and reduce reliance on food imports which currently account for some 80% of the Kingdom’s food needs.

DATA POINTS-

#1- The assets managed by the General Organization for Social Ins. (Gosi) have reached over SAR 1.2 tn, Finance Minister Mohammed Al Jadaan was quoted as saying at the Regional Social Security Forum for Asia and the Pacific by local media (here and here).

#2- Mortgage loans handed out by Saudi commercial banks — both retail and corporate — went up 13.3% y-o-y in 3Q 2024 to SAR 846.5 bn, data from the Saudi Central Bank (Sama) showed. Retail mortgage loans grew 11% to SAR 656.9 bn, while corporate mortgage loans jumped 21.9% to SAR 189.6 bn during the period.

#3- The Kingdom’s hydrogen output accounts for 10% of the global production target, Mubasher quotes Industry and Mineral Resources Minister Bandar Al Khorayef as saying. The value of the kingdom’s mineral resources currently stands at USD 1.5 bn, he added.

#4- Saudi Arabia has handed out USD 6 bn in support to over 60 countries having water sector crises, Crown Prince Mohamed bin Salman was quoted as saying at Riyadh’s One Water Summit by Mubasher.

OIL WATCH-

Opec+ crude production was up 120k bbl / d in November at an average of 27 mn bbl / d, according to a Bloomberg survey. Libya led the increase, boosting its output by 110k bbl / d to 1.14 mn bbl / d following the restart of its Sharara oil field. The UAE also added 90k bbl / d, reaching an average of 3.26 mn bbl / d, as it begins ramping up ahead of a special allowance from the group to pump more next year. Meanwhile, Iraq slashed production for the third month in a row, cutting some 70k bbl / d at 4.1 mn bbl / d. Despite taking steps to improve compliance, Baghdad is still pumping above its Opec+-mandated quota.

Meanwhile, it is looking increasingly likely that the Saudi and Russia-led alliance will postpone unwinding production cuts into 1Q 2025 as sluggish global demand and an uptick in non-Opec+ production continues to push down prices, Reuters reports, citing several unnamed sources. The increase, originally set at 180k bbl / d, has already been postponed twice due to global market conditions. A further delay into next year’s first quarter “ is all but priced in,” oil broker PVM’s John Evans told the newswire.

The next checkpoint? The bloc is scheduled to hold their December ministerial meeting tomorrow following a flurry of phone calls and in-person meetings between officials to iron out an understanding going in. A 300k bbl / d bump to the UAE’s quota that is set to take effect in January — and was originally cleared by the group in June — is likely to be brought up for debate, sources told Reuters.

SPORTS-

#1- Could an early timing of 2034 Fifa World Cup disrupt Premier League schedule? The 2034 Fifa World Cup, to be hosted in Saudi Arabia, could potentially be pushed forward by as much as 10 months, which would cause disturbances to the Premier League schedule, the Daily Mail reports. The early shift would be in response to concerns over the country’s extreme summer heat and in effort to avoid coinciding with the holy month of Ramadan.

#2- Al Hilal reinstated Neymar in their Saudi Pro League squad at the expense of former Chelsea player Kalidou Koulibaly who is set to have his contract terminated or be loaned out, Daily Mail reports.

#3- UK boxer Daniel Dubois will face off against former champion Joseph Parker for the world heavyweight title in Saudi Arabia on 22 February, BBC reports.

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THE BIG STORY ABROAD-

The global press started the week speculating about the possible fall of the government in Syria, then France, and now South Korea, with President Yoon Suk Yeol’s unexpected imposition of martial law quickly rescinded after a parliamentary vote — including dissent from his own conservative People Power Party — and outrage across the political spectrum. The move, criticized as an authoritarian overreach, has sent ripples through financial markets, with investor confidence shaken and the KRW initially weakening against the greenback before climbing back after the end of martial law. (Financial Times | Wall Street Journal | Bloomberg | Reuters | Associated Press | New York Times | Guardian)

The expected collapse of French Prime Minister Michel Barnier’s government is also continuing to rank high on the digital front pages, as the country’s lawmakers get ready for a no-confidence vote later today. As in South Korea, the political uncertainty has rattled financial markets, with bond investors punishing France’s sovereign debt. President Macron appears to be making use of the plentiful sand during his trip to Riyadh to put his head in, telling reporters that he’s confident the government can survive the vote. (Financial Times | Bloomberg | Reuters | Guardian)

While over in trade war news, China has banned exports to the US of key minerals and metals — including gallium, germanium, and antimony — all used in semiconductors and military equipment, marking a sharp escalation in the ongoing US-China tech war. (Financial Times | Reuters | Associated Press | New York Times)

And in market news, some are wondering if the AI hype could soon be over, with Vanguard’s Joe Davis warning that investors have overestimated the near-term potential of artificial intelligence, raising the likelihood of a market correction. (Financial Times)

CIRCLE YOUR CALENDAR-

The three-day XP Music Futures Conference kicks off in Riyadh’s Jax District tomorrow, bringing top music voices together for workshops, panels, and networking prospects. Tickets can be booked here.

The FIFAe Finals 2024 returns to Riyadh from 5-12 December at SEF Arena, BLVD Riyadh City, according to a press release. This year marks the first time the event will feature multiple esports titles, including the FIFAe World Cup with Rocket League (5-8 December) and two FIFAe World Cups with eFootball (9-12 December) on console and mobile. With a total prize pool of USD 450k, the event will showcase talent from 18 countries. Fans can attend in person or watch live on FIFAe’s Twitch channel. Register here.

The two-day pharma exhibition CPHI Middle East kicks off in Riyadh on Tuesday, 10 December. The event will bring together leading pharma companies, industry experts, and innovators to discuss advancements in medicine and healthcare.

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