Good morning, ladies and gentlemen. As we slide into the weekend, we have a big handful of capital markets updates, while Finance Minister Mohamed Al Jadaan leads our news well as he discussed the government’s fiscal policy for next year after his ministry released its budget statement earlier this week. Let’s jump right in.

HAPPENING TODAY-

Shares of Al Fakhera Men’s Tailoring will begin trading on Nomu today, according to a Tadawul statement. Al Fakhera’s shares can fluctuate within a ±30% range for the first three days, after which price fluctuations will be capped at ±10% as circuit breakers take effect.

REFRESHER- The company priced its 20% stake IPO at the top of its indicative price range at SAR 6 per share, after the offering was 2.7x oversubscribed. The pricing would give Al Fakhera a market cap of SAR 180 mn at listing and should see it raise some SAR 36 mn in IPO proceeds.

IN OTHER CAPITAL MARKET NEWS-

Tamkeen HR’s share price jumped 30% in its debut trading session on Tadawul yesterday to close at SAR 65 apiece, up from its listing price of SAR 50, according to market data. The company will be subject to a price fluctuation cap of 30% during its first three trading sessions, before resetting to 10% on the fourth day.

REFRESHER- The labor agency took a 30% stake to Tadawul’s main market in a secondary share sale, where its institutional offering was sold out within hours of opening last month, and its retail offering was 14.4x oversubscribed earlier this month.

WINTER IS COMING- Riyadh’s mercury will log a high of 18°C, before dipping to 14°C today. Over in Madinah, the temperature will peak at 25°C, before dropping to 17°C. Meanwhile, Jeddah will still see some heat at a high of 31°C and a low of 24°C.

WATCH THIS SPACE-

#1- The Public Investment Fund (PIF) is looking to hit SAR 4 tn in AUM by 2025, up from SAR 3.5 tn as of October, according to the Finance Ministry’s budget statement for FY 2025 (pdf). The fund also plans to invest up to SAR 1 tn in domestic projects and contribute SAR 1.2 tn to non-oil GDP as part of its medium and long-term goals.

#2- Saudi expected to join sixth generation GCAP fighter project: Saudi Arabia is “likely to join” the Global Combat Air Program, a collaboration between Italy, Britain, and Japan to develop a future frontline fighter aircraft, Reuters quotes Italian Foreign Minister Antonio Tajani as saying. The Kingdom was previously cited by the newswire as a probable partner for the initiative due to its ability to foot part of the development costs and potential as a market for the fighter.

About the GCAP: The project involving Italian Leonardo, British BAE Systems, and Japan’s Mitsubishi Heavy Industries looks to field a flying prototype by the mid-2030s, with the eventual aim to produce a tactical fighter that can replace legacy aircraft such as the Eurofighter Typhoon in British and Italian service, and Japan’s Mitsubishi F-2.

#3- Saudi Telecom Company (STC) has joined PIF’s Private Sector Hub, a platform that connects private sector companies with PIF and its portfolio across priority sectors, according to a post on X. STC now joins companies like AUla, Neom, Ma’aden, and Saudi Railway Company to offer investors diverse opportunities aimed at developing key sectors and supporting the Kingdom’s long-term growth.

ICYMI: PIF sold a 2% stake in STC for SAR 3.86 bn earlier this month, marking the largest transaction of its kind in the Kingdom and MENA as PIF pushes ahead with its strategy to recycle capital and invest in emerging sectors.

#4- Due diligence procedures kicked off for the potential merger of Saudi Arabian Mining Company (Ma’aden) with Aluminum Bahrain (Alba), the Bahraini aluminium smelter said in a filing to the Bahrain Bourse (pdf).

REMEMBER- Ma’aden signed a share purchase agreement to acquire Sabic’s entire 20.6% stake in Alba in September, as well as a non-binding agreement to acquire a 51% stake in the Alba which would see it swap its full share capital of subsidiaries Ma’aden Aluminum and Ma’aden Bauxite and Alumina for new shares in Alba.

#5- The privatization of sports clubs could reel in some SAR 500 mn in revenues, with 25 local and international firms expressing interest in acquiring stakes in Saudi clubs that are part of the government’s privatization initiative, Sports Minister Abdulaziz Al Faisal was quoted as saying by local media (here and here).

REMEMBER– Some 14 football clubs from various divisions are set to go private in the second phase of a privatization program. The first batch of clubs set in the second phase includes Al Zulfi, Al Nahda, Al Okhdood, Al Ansar, Al Orouba, and Al Kholoud. Meanwhile, the second batch will include Al Shoulla, Hajar, Al Najma, Al Riyadh, Al Rawda, Jeddah, Al Taraji, and Al Sahel.

#6- Homegrown payments services provider Geidea is set to expand to Egypt, offering up its SoftPos service following its rollout in Saudi and the UAE, according to a press release. The service allows for payments through Android phones, similarly to Apple and Google Pay.

DATA POINTS-

#1- The Saudi Industrial Development Fund approved SAR 12 bn in loans to back projects valued at SAR 59 bn in 2024, state news agency SPA quotes Industry and Mineral Resources Minister Bandar Alkhorayef as saying. A total of 1.1k industrial licenses are expected to be issued by the end of this year, Alkhorayef said, adding that 900 factories went online this year.

#2- The Kingdom awarded SAR 185 bn worth of contracts for oil projects in 1H 2024, up 47% y-o-y, Al Watan reports, citing data from the US-Saudi Business Council.

#3- The digital economy contributes SAR 298 bn to the Kingdom’s overall economy, Communications and Information Technology Minister Abdullah Al Swaha was quoted as saying during the 2025 budget forum by local media (here and here).

#4- Tourist arrivals at Al Ahsa rose 16% y-o-y in 2023, Al Watan reports. Some 38% of the province’s tourists came from Bahrain, while 26% came from Qatar.

OIL WATCH-

Energy Minister Abdulaziz bin Salman discussed maintaining global oil market stability and the importance of abiding by Opec+ production cuts in a phone call with Russian Deputy Prime Minister Alexander Novak and Kazakhstan’s Energy Minister Almasadam Satkaliyev, state news agency SPA reports. The three officials also looked at “compensating for any excess production” during the call, Reuters reports, citing unnamed sources. The discussion came ahead of the oil cartel’s meeting this weekend, which will revolve around delays to oil production hikes.

SPORTS-

#1- Abdullah Al Qahtani will take on Jordan’s Abdelrahman Alhyasat in the PFL MENA Featherweight Championship this Friday, MMA UK reports. Al Qahtani fell to the undefeated Alhyasat in their semifinal last month, and he only qualified to the following stage due to an injury to Egypt’s Islam Reda. “Fighting on home soil with the Saudi crowd behind me will be a strong support as I aim to secure the belt,” he said.

#2- The ball is in Mo Salah’s court for a potential Saudi move: While many Saudi clubs are actively pursuing Mohamed Salah, the needle will not move until Salah decides to leave Liverpool for a career in the Saudi Pro League, Sky Sports News Chief Reporter Kave Solhekol wrote in an opinion piece to Sky Sports. “There is no indication that has happened. There is no change in the situation, at the moment,” he added.

REMEMBER-Liverpool turned down a GBP 150 mn bid from Al-Ittihad for Salah in September 2023.

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THE BIG STORY ABROAD-

The newly-minted ceasefire agreement between Israel and Hezbollah in Lebanon is still making the rounds in the international press this morning. Reuters and the New York Times are focusing more on how the past year of warring with Israel left Hezbollah with many of its top brass — and hundreds or thousands of its soldiers — dead, giving the group a “long road to recovery.” Bloomberg also has the story.

MEANWHILE- The French government will not abide by the International Criminal Court’s arrest warrant for Israeli Prime Minister Benjamin Netanyahu, with Paris justifying its position by saying that Israel is not a member of the court. The statement from France came on the back of Netanyahu accepting the ceasefire agreement with Hezbollah, which France and the US brokered. (Financial Times | Wall Street Journal | Guardian)

CIRCLE YOUR CALENDAR-

Red Bull’s Les Mills is bringing the Middle East’s largest fitness festival to Riyadh on Saturday, 30 November, at The Arena. The 12-hour event features global trainers, full-day workouts, exclusive Adidas products, and a women-only “Her Zone.” You can book your tickets online.

The two-day Saudi Green Initiative Forum will kick off on Tuesday, 3 December, according to a statement. The forum will coincide with COP16 of the United Nations Convention to Combat Desertification, which will be held in Riyadh between 2 and 13 December.

The two-day Zakat, Tax and Customs Conference 2024 begins on 4 December at the King Abdullah Financial District.

The Red Sea International Film Festival will run from 5-14 December in Jeddah.

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.

The Fortune Global Forum is coming to Riyadh in December 2025, according to a press release. The forum serves as a platform for the leaders of the world’s largest companies, policymakers, and other influential figures to discuss global economic and business trends, challenges, and opportunities.

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 International Forum for Saudi Reef is scheduled for 16-18 December in the Intercontinental Al Ahsa, covering sustainable agriculture, rural entrepreneurship, and technology in farming, alongside a three-day exhibition of rural practices, handicrafts, and local work. Register here.

The Future Hospitality Summit will take place between 14-16 April, 2025 at Mandarin Oriental Al Faisaliah hotel in Riyadh. The forum will bring together top executives and decision-makers in the hospitality sector to probe potential investments and partnerships.

The Jeddah International Agriculture and Food Exhibition is scheduled for 3-5 December at Jeddah Center for Exhibition and Events.

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