Good morning, wonderful people, and welcome to the start of a new week. We have a busy issue to get the day started, leading with a SAR 30 bn bundle of independent power project contracts awarded to two consortiums, as well as another SAR 10.7 bn of agreements signed at Biban.

PLUS- The Saudi Central Bank (Sama) cut its repurchase agreement (repo) and reverse repo rates by 25 basis points (bps) each, down to 5.25% and 4.75%, respectively, it said in a statement. The move follows with the US Fed’s decision to trim rates on Thursday, as the SAR — like other GCC currencies — is pegged to the USD. The rate cut came despite inflation hitting its highest level since February in September at 1.7%. Other GCC central banks also followed suit.

What pundits said: “Lower rates in the GCC could fuel growth in sectors sensitive to credit conditions, such as real estate and domestic spending, enhancing resilience in the broader economy,” Reuters quotes Century Financial’s CIO as saying.

The US’ Coco Gauff took home the WTA Finals trophy after defeating China’s Zheng Qinwen in the final match in Riyadh yesterday. Gauff beat world no.1 Aryna Sabalenka (7-6, 6-3) the previous day, making her the third player since 2010 to overcome the top two ranked players at the WTA Finals after also defeating world no.2 Iga Swiatek earlier last week, as per the WTA website.

WEATHER- Riyadh is looking at a high of 30°C and a low of 19°C today. Over in Jeddah, the mercury will peak at 34°C and hit a low of 28°C. Meanwhile, Madinah is looking at cloud cover and dust haze, with a high of 35°C and a low of 23°C.

HAPPENING THIS WEEK-

IPO WATCH #1- Tomorrow is the last day for qualified investors to subscribe to Mufeed’s offering of a 10% stake on Tadawul’s parallel market Nomu. Each investor can subscribe to a minimum of 10 shares, and a max of 323k each. The final allocation of shares is slated for Thursday, 14 November, while refunds (if any) will take place on Monday, 18 November 2024.

IPO WATCH #2- The offering period for Multi Business Group’s (MBG) Nomu IPO kicks off on Tuesday, and concludes next Monday, 18 November. The local contractor is guiding on a price range of SAR 13-15 per share for its offering of a 20% stake on Nomu. Qualified investors can book a minimum of 10 shares and a maximum of 750k apiece.

The World Advanced Manufacturing & Logistics Summit kicks off tomorrow at the Fairmont Hotel, Riyadh, in partnership with the Saudi Authority for Industrial Cities and Technology Zones. The event will feature sessions on sustainable manufacturing, Industry 4.0, industrial finance, and logistics solutions. Executives from Lucid Motors, Amazon Web Services, and Santander will discuss tech integration, cybersecurity, and finance.

Other forums kicking off tomorrow: Cityscape Global, which will get underway tomorrow at the Riyadh Exhibition and Convention Center, and will conclude on Thursday. The two-day Saudi Airport Exhibition and the two-day Expenditure Efficiency Forum are also starting tomorrow, as is the Saudi Intermobility Expo 2024, which will wrap in Jeddah on Wednesday.

NEWS TRIGGERS-

A handful of news triggers coming up in the next few weeks:

  • Inflation rate for October (Thursday, 14 November);
  • Trade balance for September (Sunday, 24 November);
  • Riyad Bank PMI for November (Tuesday, 3 December);
  • State budget approval and release (December).

PSAs-

The Royal Commission for Riyadh City lifted a trading and development ban on a 46 mn sqm plot of land near the New Murabba development in north Riyadh, state news agency SPA reports. New building permits are slated to be issued under a new set of design regulations that will be issued in three months.

WATCH THIS SPACE-

#1- China’s Finance Ministry tapped Goldman Sachs, JPMorgan, and a roster of heavy-hitter banks to lead a planned USD 2 bn bond sale in Riyadh this week, which will mark the first issuance of its kind for China since 2021, Bloomberg reports, citing people it says are familiar with the matter. The bonds, which will be sold in three- and five-year tranches, will be listed on the Hong Kong Exchange and will trade on Nasdaq Dubai, according to an offering document seen by business news information service.

The local angle: Hosting the issuance strengthens the Kingdom’s ambition to become a regional financial hub, potentially attracting future international financial activities. The high-profile transaction plays into the Kingdom’s goal of strengthening investor confidence in the domestic market, potentially inciting foreign listings, and promoting deeper economic partnerships with China.

ADVISORS- China also appointed Bank of America, Bank of China, Deutsche Bank, HSBC Holdings, Industrial and Commercial Bank of China, Standard Chartered, and First Abu Dhabi Bank.

#2- New York-based art auctioneer Sotheby’s will launch its first auction in the Kingdom in Diriyah on 8 February amid plans to set up shop in Riyadh’s Al Faisaliah Tower within the same month, it said in a statement. Sotheby’s was incorporated in Saudi Arabia last year. The story got ink from the Financial Times.

#3- US software company Nutanix opened a regional headquarters in Riyadh, featuring an operational excellence lab, according to a press release.

DATA POINTS-

#1- Saudi Arabia scored +61 in 3Q 2024 on the Royal Institution of Chartered Surveyors’ Construction Sentiment Index (CSI), down slightly from +64 in the previous quarter, the UK-based construction association said in its latest global construction monitor (pdf). Despite the lower score, the figure remains within the expansionary territory, Rics said. A sector-wide growth in workloads underpinned the strong CSI readings of the Kingdom, along with the UAE (+55), the report read.

#2- Sales from 17 Saudi cement firms rose 10% y-o-y to 4.9 mn tons in October, Argaam reports, citing data from Yamama Cement. Local sales were up 10.7% y-o-y at SAR 4.7 mn tons, while exports increased 3.8% at 219k tons.

MEANWHILE- Demand for cement in Saudi Arabia is expected to grow by up to 8% in 2025 as major construction projects in Riyadh and elsewhere pick up the pace, Riyadh Cement CEO Shoeil Al Ayed told Asharq Business. Saudi cement firms have struggled with a glut in supply over the past two years, with listed firms’ bottom lines falling 14.3% in 2023 as higher interest rates and an uptick in fuel prices also contributed to declining performance, the outlet said.

#3- Riyadh Season 2024 drew in 4 mn visitors within less than a month of launching, as the festival continues to showcase major local and international cultural attractions, General Entertainment Authority Chairman Turki Al Sheikh said. Nearly 2 mn visitors arrived in the festival’s first week, Al Sheikh said earlier. Riyadh Season 2023 saw a total of 20 mn visitors throughout its five-month run, according to data from Argaam.

#4- Public bus ridership across the Kingdom grew 176% y-o-y to 117.6 mn passengers in 2023, with passengers using city buses accounting for 113.5 mn passengers, a 195% increase, according to Gastat’s Land Transport Statistics report (pdf). The number of serious traffic accidents went down 2.5% y-o-y, with fatalities dropping 2.9% and injuries down 1.8% compared to the previous year.

#5- Railway passengers in Saudi Arabia reached 30.3 mn in 2023, up 33% y-o-y, according to a report (pdf) from the General Authority for Statistics. Intra-city passengers made up 72.5% of all travelers — traveling over 1 mn km — while intercity passengers accounted for 27.5% — covering 10.4 mn km. Saudi Arabia Railways conducted 5.2k freight train trips, with a total distance of 4 mn km.

#6- Cargo exports via land ports rose 6.2% y-o-y to over 13.5 mn tons, while imports hit 11.4 mn tons, up 0.3% y-o-y, with Batha port driving the growth of both. The Kingdom’s road network expanded by 2.2% y-o-y, reaching 316.9k km.

SPORTS-

#1- FIBA 3×3 basketball is back at the Neom beach club for the third year running. This year’s lineup features 16 elite teams from around the world, all vying for dominance on the half-court.

#2- More injury woes for Al Hilal: Al Hilal midfielder Ruben Neves will be sidelined through the end of the year due to a knee surgery, meaning the Portuguese footballer will not participate in the upcoming Asian Champions League Elite matches against Qatari Al Sadd and Al Gharafa, in addition to at least three domestic league matches, Reuters reports.

ICYMI- This follows news of Neymar’s hamstring tear, which will see him out for another six weeks, reports the National. The injury was sustained during the Brazilian’s second game back after a year on the sidelines due to an ACL tear.

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THE BIG STORY ABROAD-

It’s a mixed bag in the international press this morning, giving us a mix of stories focused on the latest in US politics and the peace talks between Israel and Hamas.

Qatar suspended its negotiation efforts between Israel and Hamas for a ceasefire and hostage release agreement, and will resume the talks “when the parties show their willingness and seriousness” to end the war, Qatar’s Foreign Ministry said. The ministry pointed to “manipulation” and “blackmail” Qatar is facing as a mediating party while “obligations agreed upon through mediation” are not being met.

As the negotiations stalled, media reports suggested that Qatar has requested that Hamas leaders leave the country, although the foreign ministry said in its statement that “media reports regarding the Hamas office in Doha [are] inaccurate,” without providing further details. Reuters, Bloomberg, and the Financial Times have the story.

In other regional news: Israeli airstrikes killed another 40 people in Lebanon in the past day, including in Tyre and Baalbek, bringing the total death toll in Lebanon from Israeli attacks in the past year to 3,136 people, including 619 women and 194 children, Reuters reports.

ACROSS THE POND- Republicans are on track to secure control of Congress, with the party already securing enough votes to take over control of the Senate, while the House looks likely to end the election with its Republican majority intact. Axios and Reuters have more.

CIRCLE YOUR CALENDAR-

The Saudi Rail Conference and Exhibition will take place on 20-21 November at the Riyadh International Convention and Exhibition Center. The event will showcase developments in the railway sector and provide insights from over 150 local and international speakers.

The two-day Zakat, Tax and Customs Conference 2024 will kick off on 4 December at the King Abdullah Financial District. The event will bring together over 50 speakers and 10k attendees to chew over some of the solutions for the applications of zakat, tax and customs.

The two-day Impact Makers Forum (ImpaQ) is set to open its doors on 18 December, bringing together media influencers, industry experts, and digital content creators in Riyadh’s Mayadeen Hall.

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