Good morning, friends. It’s another very busy morning for news, but there’s one clear lead story: Aramco, which signaled it will pay higher dividends this year than last (when accounting for special dividends) despite dip in first-quarter profitability.

WEATHER-Riyadh will be windy today with a high of 35°C and a low of 24°C. Meanwhile, Makkah is going to see a hotter day with a high of 40°C and a low of 23°C. Al Taif will be nice and sunny with a high of 30°C and a low of 17°C

Riyadh’s drainage system now has seven new flood and rainwater drains, covering about 55% of the capital city, Aleqtisadiah quotes Riyadh Governor Faisal bin Bandar Al Saud and Riyadh Municipality official Al Walid Al Akrash as saying. The new arteries on the drainage system cost some SAR 2.4 bn and another 12 projects at an estimated cost of SAR 3.9 bn are underway.

HAPPENING TOMORROW-

Healthcare outfit Qomel will ring the bell on parallel market Nomu tomorrow to mark the first day of trading on its shares, Tadawul said in a statement yesterday. Qomel’s IPO was 2.75 oversubscribed earlier this month after qualified investors placed their orders on 21-25 April at a set price of SAR 80 apiece. Qomel is offering a 14.3% stake on Nomu.

Tadawul will host the Hong Kong edition of its flagship markets conference. The two-day event continues on Friday and will see a mix of plenary sessions and one-on-one sessions between investors and listed companies. Tap or click here for the full rundown and a link to the agenda for the invite-only event.

DATA POINTS-

Remittances from expats living in the Kingdom rose 4% y-o-y to c.SAR 12 bn (USD 2.3) in March, hitting their highest level since June 2022, Argaam reports, citing Saudi Central Bank (SAMA) data. Meanwhile, remittances from Saudi nationals to other countries fell 9% y-o-y to SAR 5.1 bn during the month.

WATCH THIS SPACE-

#1- Crown Prince Mohammed bin Salman could visit Pakistan sometime this month, Pakistan’s Dunya News quotes Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar as saying. Dar was speaking as a delegation of senior Saudi officials wraps up a visit to Pakistan during which they attended a two-day investment conference. Meetings between private Saudi players and Pakistani counterparts were “very productive,” Dar is quoted as saying.

There’s been a lot of traffic between Riyadh and Islamabad of late: Foreign Minister Prince Faisal bin Farhan visited Pakistan last month nearly a week after Pakistan’s prime minister discussed a USD 5 bn investment package during a meeting in Makkah with the Crown Prince. Saudi has been among key backers of crisis-hit Pakistan, which is now struggling with depleted reserves. The Kingdom has extended the term of a USD 3 bn in deposit at the State Bank of Pakistan for an additional year, maturing in December this year. Pakistan also received last year USD 2 bn in financial assistance from the Kingdom to shore up finances.

#2- Fawry eyes Saudi expansion: EGX-listed fintech giant Fawry, the largest e-payments and digital financial solutions player in Egypt, is in talks with as many as six Saudi companies on a potential partnership as the firm looks to expand into the kingdom, Fawry CEO Ashraf Sabry told Asharq Business.

#3- Real estate developers can now apply for off-plan project licenses online through the e-platform for Wafi, the Municipal, Rural Affairs and Housing Ministry’s off-plan sales and leasing arm, the Real Estate General Authority said in a statement yesterday. Applicants should pass a qualification program, present a feasibility study on the project, as well as details on how it will be financed and delivery dates to obtain the license. They should also present proof of the project meeting requirements for building permits. The move aims to regulate the sector, reduce irregularities, and increase supply of offered real estate projects across the country.

IN CONTEXT- There’s growing interest in off-play sales: Some 47 off-plan sales projects were licensed in the first six months of 2023, a 50% increase over the same period a year earlier, according to Wafi figures. S&P Global said in March that a better regulated off-plan industry in Saudi would fuel demand.

#4- Hotel operator BWH — which owns the Best Western Hotels brand — is looking to add 40 hotels in the Kingdom to its portfolio by the end of 2028 and is eyeing franchise or management agreements to reach that target, Gulf News quotes EMEA Vice President Wytze van den Berg as saying on the sidelines of the ongoing Arabian Travel Market in Dubai. “We find there is still quite good demand for hotels especially in the western parts of the country. Riyadh continues to perform well as a destination, and we see that continuing given the government spending that’s backing it up.”

BWH’s first hotel in Makkah is coming next year: The hotel group recently landed its first three hotel towers in Makkah, with 150 keys each. “The opening will likely be in 3Q 2025, and we will have three separate brands take care of the hotels,” van den Berg said.

#5- What’s missing from Saudi’s real estate market? Luxurious residential towers, Cheval Collection’s director of development and acquisitions, Daniel Johansson, told Argaam on the sidelines of the Future Hospitality Summit. Johansson pointed to “the fact that hotels in Riyadh are fully booked on event and conference days” as an indication that luxury residential towers are lacking in the market. Cheval Collection is set to open the doors to a luxury residential tower, Cheval Ladun Living, in Riyadh in 2027, Johansson said.

REMEMBER- S&P Global said earlier this week that real estate developers in the Kingdom need to ramp up supply to keep pace with growing market demand — particularly in the capital and Jeddah — as their populations grow. S&P expects that demand will outstrip supply in Riyadh in particular, where real estate supply is already tight.

#6- The government is looking to triple current polymer production levels and increase exports fivefold by 2035, Deputy Minister for Industry Affairs Khalil Ibrahim bin Salamah tells Argaam. The plans include using more than 4 mn bbl of oil for petrochemical production, “which will significantly boost local manufacturing,” Salamah is quoted as saying.

PSAs-

#1- Don’t have a Hajj permit? Steer clear of Makkah during the season unless you’re a resident of the city: Expats and citizens found in Makkah and designated areas within the city without providing a Hajj permit or proof of residency in the Holy City will face a SAR 10k fine, state news agency SPA reported. Expats will also be deported and banned from entering the Kingdom for an unspecified period of time. The rules will be in effect from Sunday, 2 June until Thursday, 20 June.

#3- Saudi citizens can now apply for a visa to France at VFS centers without booking an appointment, the French embassy said in a statement. The new walk-in service is available for Saudi nationals at VFS centers in Riyadh and Dammam, with 100 appointments available per day in Riyadh and 50 per day in Dammam. Applicants are admitted on a first-come, first served basis.

#2- Businesses can issue seasonal contracts for temporary workers during the Hajj seasons as part of the Human Resources and Social Development Ministry’s Ajeer Al Hajj service, reports state-run SPA. The service will also connect job seekers with available positions through an online portal.

SPORTS-

Al Hilal solidified its position at the top of the Saudi Pro League with a 2-1 victory against Al Ahli Saudi. A goal by Aleksandar Mitrovic reversed Al-Ahli’s lead in the first half, while Malcom sealed the victory with a decisive goal in the final minute.

Second-place Al Nassr is now 12 points behind Al Hilal in the standings, while Al Ahli Saudi is third in the league.

Matchday 31 of 34 kicks off tomorrow, with the following fixtures:

  • Al Feiha vs. AlFateh at 6pm;
  • Al Riyadh vs. Al Taawoun at 6pm;
  • Al Akhdoud vs. Al Nassr at 9pm.

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THE BIG STORY ABROAD-

It’s a busy morning on the front pages of the world’s business press. Truce talks between Hamas and Israel continue even as Israeli forces took over control of the Rafah crossing into Egypt, a key port of entry for humanitarian aid.

The Wall Street Journal is leading with Stormy Daniels’ “salacious details of her alleged tryst” with former US President Donald Trump, but gives more prominence to a deep look at The Line.

MEANWHILE- The US will no longer allow Intel and Qualcomm to sell chips to Huawei, the Dow has now posted its longest streak in the green since December, and Semafor reports on the pipeline that’s now driving Wall Street financial firms to load up on former military brass.

FOR OUR FELLOW TECH NERDS- Apple finally moved the iPad’s FaceTime camera to the long edge as it launched a redesign of the iconic gadget that also leapfrogged the M3 generation of processors straight to M4. The Verge notes that the tablet is super-thin and that the Pro’s new keyboard case aims to make it feel “just like a MacBook.”

AND- Google launched yesterday its Pixel 8A phone, a midrange device that packs most of the power of the Pixel 8 and 8 Pro into a package that will now include seven years of software updates.

FINALLY- OpenAI is getting into the AI search game, developing a product to rival Google, Bing, and Perplexity, Bloomberg reports. The ChatGPT maker is also reportedly poaching Google staff for the project, per the Verge.

CIRCLE YOUR CALENDAR-

Are you subject to withholding tax? You have until Sunday, 12 May to submit and pay withholding taxes for April, according to a Zatca statement. Late payers will face a fine equivalent to 1% of unpaid fees for every 30 days of delay.

The Saudi Giga Projects Summit will open next Monday, 13 May at the Hilton Riyadh Hotel and Residences. The Meed event will showcase Saudi’s USD 870 bn giga projects drive. It brings together contractors, suppliers and relevant stakeholders from the region and elsewhere for discussions on potential investments.

The MENA Construction Summit will kick off next Tuesday, 14 May at the Hilton Riyadh Hotel & Residences. Also organized by Meed, the one-day event will bring together developers, contractors, key executives and others to discuss the latest innovations in the construction industry.

Red Sea Fashion Week will make its debut on Thursday, 16 May and run until Saturday, 18 May at the St. Regis Red Sea Resort, according to state news agency SPA. The event, organized by the Saudi Fashion Commission, will feature an opening show on the first day, followed by two days of runway shows showcasing collections from both Saudi and international designers.

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