Good morning, wonderful people, and happy almost-THURSDAY. We have a packed, finance-heavy issue for you this morning — and word that EY is making a big move by declaring KAFD its regional headquarters.

HAPPENING TODAY-

#1- Yaqeen Capital shares will also start trading on Nomu, Tadawul said in a statement. Yaqeen Capital — which is itself a top advisor on Nomu IPOs — is selling a 20% stake. The Riyadh-based advisor, brokerage house, and asset manager priced its shares at SAR 40 apiece.

ADVISORS- Alinma Investment is quarterbacking the transaction as the sole lead manager and financial advisor.

Speaking of IPOs- Automotive oil manufacturer Neft Alsharq’s shares gained in their first day of trading in Nomu, rising 14.4% to SAR 4.10 apiece at yesterday’s close. Neft’s offering of a 20% stake was oversubscribed as it priced its IPO at the top range of SAR 3.60 per share.

#2- A Saudi delegation is at the 2024 Global Logistics Forum, which kicked off yesterday in Shanghai and wraps tomorrow. The delegation includes representatives from the transport and logistics services and investment ministries, the Transport General Authority, Mawani, and Saudi Arabia Railways, among several others. The forum brings together over 680 visitors from 67 countries delving into multiple facets of the logistics industry, including such as logistics services, air cargo, ports & shipping logistics, road & railway transportation, logistics real estate, fresh foods logistics, smart logistics, logistics equipment, and special purpose vehicles.

#3- Look for more news out of the World Economic Forum’s “annual meeting of the new champions” in China, where Economy Minister Faisal Al-Ibrahim spoke yesterday. Al-Ibrahim repeated the Kingdom’s AI pitch in a session yesterday, telling delegates that we have “a lot to offer” top global players in artificial intelligence. Arab News has a rundown on his remarks and you can check out the event website here. The gathering runs through Saturday.

PSA- WEATHER- Riyadh will see a daytime high of 44°C today and a nighttime low of 31°C. In Makkah, the mercury will peak at 43°C before dropping to a balmy 30°C, while Madinah will see a high of 45°C during the day and 29°C at night.

HAPPENING THIS WEEK-

A Saudi delegation is in Washington for a meeting of the Saudi-US Trade and Investment Council, which kicked off on Sunday and will conclude this Friday, 28 June, according to the Saudi Gazette. The delegation, led by Saudi General Authority of Foreign Trade (SGAFT) Deputy Governor Abdulaziz Alsakran, will also include reps from the Public Investment Fund as well as the commerce, energy, investment, education, tourism, and industry ministries. Some 20 Saudi agencies will attend, according to an SGAFT statement.

Our friends at the US Chamber of Commerce will be organizing on Friday a private-sector meeting on the sidelines of the government-to-government TIFA meeting, we’re told. The US Chamber is also organizing the SelectUSA Investment Summit on Wednesday.

WATCH THIS SPACE-

#1- Saudi is halfway to achieving the goals it laid out in Vision 2030, Economy and Planning Minister Faisal bin Fadel Al Ibrahim said at the World Economic Forum’s annual meeting of the New Champions, reports state run news agency SPA. The minister did not disclose further details or figures on the Kingdom’s progress on its goals, but said that the government’s priorities moving forward include ramping up economic diversification and doubling down on the development of human capital.

REFRESHER- Saudi Vision 2030 (pdf) has set several goals to reform the Kingdom and create a stronger, more diversified economy, develop its governance to create what the vision calls “an ambitious nation,” and create a “vibrant society.” The goals include lowering the national unemployment rate by nearly 5 percentage points to 7%, growing SME contributions to GDP, introducing more women in the labor force, growing the Public Investment Fund’s assets more than tenfold to SAR 7 tn, and increasing the private sector’s contribution to the economy.

#2- UPDATE- Kuwait Finance House (KFH) is “conducting careful studies” on potential expansion in Saudi, including “more than one bank,” it said in a statement to Boursa Kuwait. KFH also said that it has yet to sign an MoU or any other agreement with any Saudi banks. The statement came in response to media reports we picked up yesterday claiming that KFH is exploring the acquisition of a “significant stake” in Saudi Investment Bank.

#3- EY MENA is relocating its regional HQ to King Abdullah Financial District (KAFD) in Riyadh later this year, it said in a statement. The HQ will also feature the Riyadh EY Wavespace Center, a collaborative space spanning 930 sqm, that features advanced tech like AI, cloud computing, and blockchain.

AND- KIA is following suit: The Kuwait Investment Authority, that country’s sovereign wealth fund with USD 800 bn in assets under management, will open an office in Saudi as it aims to bolster “trade and investment exchange” between the two countries, it said in a post on Instagram. Kuwait state news agency Kuna has more.

REMEMBER- Earlier this year, the government rolled out tax incentives for foreign companies that relocate their regional headquarters to the Kingdom. The incentives are part of a plan that is a cornerstone of Crown Prince and Prime Minister Mohammed bin Salman’s drive to build a diversified, globally significant non-oil economy, and has been in the works since February 2021.

#4- Barber shops across the country are now banned from using tanning, tattoo, laser, and acupuncture devices after the Municipal, Rural Affairs, and Housing Ministry issued a decision, Okaz reports citing a government source. The draft regulations on barber shops also ban women from working at male-only barber shops unless the shop’s services are limited to children.

SPORTS-

Is Al Qadsiah closing in on Real Madrid’s Fernandez? Real Madrid captain Nacho Fernandez is officially leaving the club after a 23-year stint as his contract expires, the club said in a statement. The 34-year old is set to leave the European Champions after securing six Champions League titles with Los Merengues. His departure comes after weeks of unconfirmed media reports linking him with multiple Saudi clubs, especially Al Qadsiah, which the New York Times says remains “imminent.”

***
DID YOU KNOW that we also cover Egypt and the UAE?

Want to subscribe? Tap or click here to get your own copy of EnterpriseAM Saudi delivered every weekday before 7am Riyadh time — without charge, thanks to our friends at Cenomi.
***

THE BIG STORY ABROAD-

An eclectic mix of stories is playing out across the front pages of the global business press, with coverage of the EU’s latest bid to “tame” big tech playing out alongside stories about Volkswagen, Citigroup, and the prospect of war in Asia.

The Financial Times is going all-in with its coverage of how European Union regulators are looking to bring Big Tech to heel. Earlier this week, the bloc accused Apple of breaking so-called “gatekeeper rules”, for which they’re threatening to fine the company up to 10% of its global revenues. Yesterday, they went after Microsoft with antitrust violations over Teams.

Those are just the latest charges the EU has levied against big US tech firms, and Apple is sending a message of its own: The company is delaying the rollout to users in the EU of a bunch of new features in the new iOS due out this fall — including Apple Intelligence — because of uncertainty about how the EU will view them under the Digital Markets Act.

A must read for those of you who want to go deeper: What are the battle lines between the EU and Big Tech?

MEANWHILE- Volkswagen is getting prominent front-page play in the FT, the Wall Street Journal, and Handelsblatt after saying it will invest up to USD 5 bn in EV maker Rivian and the FT says time is running out for Jane Fraser’s turnaround bid at Citigroup.

CLOSER TO HOME:

  • The Israeli military must start drafting ultra-Orthodox Jews, the country’s supreme court has ruled. (New York Times)
  • Rioters protesting taxation in Kenya tried to storm the country’s parliament. Five have so-far been killed in clashes with police. (Reuters)

JUST WHAT WE NEED: Another regional war. The Philippines’ ambassador to Washington, Jose Manuel Romualdez, has for months been beating the drum about the prospect that conflict with China over a reef in the South China Sea could in turn spark a regional war. He’s previously talked up the idea with the Japanese press, and President Ferdinand Marcos Jr. recently said in a speech that it won’t start the war — but “won’t be intimidated” by China, either. The Financial Times has since lined up its own interview with Romualdez, and it’s getting front-page play this morning.

CIRCLE YOUR CALENDAR-

The International Chemistry Olympiad — a competition for the world’s brightest chemistry students — will kick off in Riyadh on Sunday, 21 July. The three-day annual event is set to take place in King Saud University and will see teams of four students and two mentors from around the world undergo practical and theoretical assessments in chemistry.

The inaugural Aussie Expo in Riyadh will open its doors to visitors from Monday, 21 October to Tuesday, 22 October at the KAFD Conference Centre in Riyadh. Held under the theme “Accelerating Partnerships, Unlocking New Opportunities,” the one-day event will showcase potential investments between Saudi and Australia in agriculture, mining, technology, infrastructure, healthcare and education sectors. It is organized by Australian conglomerate Trademark Group of Companies seeking the entry of Australian firms to Saudi and the GCC.

Leave a comment

Your email address will not be published. Required fields are marked *