Good morning, ladies and gentlemen, and happy THURSDAY. We’re rounding out the week on a capital markets-heavy note, leading with Almoosa Health setting the price range for its upcoming Tadawul IPO. Meanwhile on Nomu, Arabica Star hits the exchange today, while Shmoh Almadi plans to sell a 14.9% stake on the parallel market.

HAPPENING TODAY-

Shares of Arabica Star will begin trading on Nomu today at SAR 64 apiece. 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.

OIL WATCH– The OPEC+ joint ministerial committee is scheduled to meet today via videoconference, and are expected to extend output cuts until the end of 1Q 2025.

What to watch for: “While a delay to unwinding production cuts is expected, the rhetoric out of the meeting is going to have the biggest sway,” Kpler lead oil analyst Matt Smith tells Reuters.

MEANWHILE- Aramco is among nearly two dozen companies to receive approval from Bangladesh to supply spot liquefied natural gas (LNG), the country’s Energy and Power Minister Muhammad Fouzul Kabir Khan tells Reuters.

The FIFAe Finals 2024 returns to Riyadh today and runs through next Thursday, 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.

WEATHER- Riyadh will be cloudy with a high of 28°C and a low of 17°C. Makkah is also getting some clouds, with temperatures peaking at 32°C and dropping to 20°C. Meanwhile, Dammam will have a high of 26°C and a low of 17°C.

WATCH THIS SPACE-

#1- UK Prime Minister Keir Starmer is reportedly planning a visit to Riyadh in the next couple of days, according to Al Watan and Al Arabiya. While official confirmation is pending, foreign outlets reported last month that Starmer would travel to Saudi Arabia and the UAE in December to bolster relations with the Gulf states. If confirmed, this would be Starmer’s first visit to the region since assuming office in July and the first by a UK leader to Saudi Arabia since Rishi Sunak’s visit in October 2023.

#1- Acwa Power is planning to invest up to USD 50 bn in China by 2030, focusing on renewables, green hydrogen, and desalination, Acwa Executive Vice President for China Lyu Yunhe told Bloomberg (watch, runtime 6:00). The company is aiming to reach 1.3 GW of renewable energy capacity in China by year-end, with expansion targets of 4-6 GW in 2025 and 5-6 GW annually thereafter.

Acwa Power also plans to begin construction on its first water purchase agreement with the Shandong government next year and will collaborate with state-owned Chinese firms for both domestic and international projects.

ICYMI: Lyu told Asharq Business earlier this week that Acwa plans to invest between USD 6-10 bn in China next year, after already investing USD 2 bn during its first year of operations in China.

#2- Aramco partners with Linde, SLB for its carbon capture project: Aramco signed a shareholders’ agreement with global industrial gas firm Linde and US-based energy tech company SLB to develop its Jubail carbon capture and storage facility, it said in a statement. Under the agreement, Aramco will own a 60% share in the project, while its partners will own 20% each. The story got ink in Bloomberg.

Construction on the first phase is slated to wrap up by the end of 2027, with capacity to capture and store up to 9 mn tons of carbon dioxide a year, the statement said. Aramco signed a joint development agreement for the facility, set to be one of the largest in the world, with Linde and SLB back in November 2022.

#3- Crown Prince Mohammed bin Salman rolled out the National Red Sea Sustainability Strategy, as part of the Kingdom’s drive to build out a blue economy, state news agency SPA reports. The initiative seeks to expand coastal protected areas to 30% of Saudi’s marine and coastal land, up from the current 3%, boost renewable energy to account for 50% of the energy mix and create jobs in ecotourism, fisheries, and water desalination. It also outlines some 48 initiatives to link the country’s economic development with environmental preservation.

#4- LaLiga set up shop in Riyadh with a new workspace within the Saudi Pro League (SPL) headquarters, according to a press release (pdf). This is part of an initiative which includes a presence in 34 countries through 11 global offices. The Spanish soccer division will also appoint a delegate in Riyadh.

MARKET WATCH-

Saudi stocks are lagging behind emerging market benchmarks for the first time in four years, but analysts see a rebound coming in 2025, Bloomberg reports. TASI is down 1% YTD while MSCI’s emerging equity index was up 7% over the same period. Going forward, Saudi markets are insulated from a new wave of tariffs and a stronger USD that are expected to come hand-in-hand with the new Trump administration. Share valuations have also leveled out to more reasonable levels. Meanwhile, a weak outlook for oil continues to pose risks for Saudi equity markets.

DATA POINTS-

#1- Expatriate remittances grew 23% y-o-y to SAR 13.4 bn in October, Argaam reports, citing central bank data. On a m-o-m basis, remittances increased 10%.

#2- Saudi’s imports from GCC countries fell 19% y-o-y to SAR 5.4 bn in September, Argaam reports citing figures from the General Authority for Statistics (Gastat). The UAE remained our largest exporter, contributing 63% of the total at SAR 3.4 bn, 20% y-o-y drop. Bahrain followed with SAR 923.1 mn in imported goods, up 50% y-o-y, while Oman recorded SAR 741.5 mn, a 45% y-o-y decline. Qatar and Kuwait trailed with SAR 171.5 mn and SAR 135.9 mn.

#3- All Saudi citizens had their basic healthcare expenses covered in 2024, with the coverage rate being 95.9% for the Kingdom’s entire population, the General Authority for Statistics said in its latest healthcare statistics publication (pdf).

#4- Foreigners make up over 50% of Riyadh’s population, the city’s Mayor Faisal bin Abdulaziz bin Ayyaf was quoted as saying at the Saudi-French Investment Forum by the Saudi Gazette.

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THE BIG STORY ABROAD-

Government collapse and warnings of economic peril are once again leading the digital front pages this morning, with French lawmakers on both ends of the political spectrum uniting to oust Prime Minister Michel Barnier in a no confidence vote that left the three-month old administration as the shortest-lived in the history of France’s Fifth Republic.

The fallout from the budget battle has plunged France into uncertainty, with President Emmanuel Macron now under pressure to appoint a new premier while facing calls for his own resignation. France’s political turmoil hit just weeks after Germany’s Scholz coalition crumbled, throwing the EU’s top two economies into uncertainty and keeping financial markets on edge. (Wall Street Journal | Bloomberg | Financial Times | Reuters | Associated Press | New York Times | Guardian)

The fatal shooting of UnitedHealthcare CEO Brian Thompson also ranks high on the press’ radar, as New York police label the incident a “targeted premeditated attack.” The killing, which occurred ahead of an investor event in Midtown Manhattan, has sent shockwaves through healthcare and business sectors. A manhunt is currently underway for the suspect. (Wall Street Journal | Bloomberg | Financial Times | Reuters | Associated Press | New York Times | Guardian)

Also featuring prominently in the business papers is Trump’s decision to tap crypto advocate Paul Atkins to lead the US Securities and Exchange Commission, signaling a softer regulatory environment for financial markets. Atkins is expected to ease restrictions on digital assets, departing from outgoing chair Gary Gensler’s tougher approach towards Wall Street and crypto companies. (Wall Street Journal | Financial Times | Associated Press | New York Times)

IN BUSINESS NEWS- BTC topped USD 100k for the first time ever, a milestone anticipated ever since Trump’s election prompted a rally for the cryptocurrency. (CNBC)

CIRCLE YOUR CALENDAR-

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.

Riyadh will host the Future Minerals Forum from 14-16 January. The forum will gather stakeholders from over 170 countries to discuss mineral technology and exploration. Speakers will include senior government officials and CEOs from mining companies Vale, Rio Tinto, and Manara.

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