Good morning, everyone. As has been the case in recent weeks, there’s no theme running through an issue, but there’s still plenty of business news as we settle into the dog days of summer.

This morning’s issue includes… a report on the 1H 2024 regional IPO market (we’re at the top of the league table) … news that Stc might be shifting its eye to Vodafone Portugal after it failed to acquire Altice Portugal … and manufacturing news including what could be a PIF-backed wind turbine plant and word that Henkel has opened its Pert plant in the capital.

Let’s jump right in:

HAPPENING THIS WEEK- The Real Estate General Authority’s Real Estate Brokerage Forum kicks off tomorrow at the Riyadh International Convention and Exhibition Center. The event will look at amendments to the brokerage system that went into effect in January 2023, as well as real estate platforms and the future of real estate market with speakers from Al Watania Real Estate, the Digital Government Authority, and proptech outfits Aqar, and Bayut. You can register for the event here.

REFRESHER- The broker regulations cover licensing and training, advertising regulations, brokerage contracts, and transaction recording. The regulations were released in July 2022 and came into effect this past January.

WEATHER- It’s another hot day in Riyadh, with a daytime high of 43°C and an overnight low of 29°C. Expect a strong breeze in Makkah with the mercury peaking at 45°C during the day before dropping to 33°C at night. Jeddah is looking at a high of 40°C and a low of 31°C.

WATCH THIS SPACE-

A wind turbine manufacturing plant, courtesy of China? The Public Investment Fund could sign an agreement this week with China’s second-largest wind turbine manufacturer, Envision Energy, to set up a wind turbine manufacturing plant here, Bloomberg reports, citing people it says were familiar with the matter.

The report says Envision would be the largest shareholder in the venture, with Riyadh-based, privately owned renewable energy firm Vision Industries taking a stake alongside PIF.

Envision is no stranger to Saudi: It is supplying wind turbines for the USD 8.5 bn Neom Green Hydrogen project, which will use 4 GW of solar and wind power to create clean hydrogen. The plant promises to be the world’s largest utility-scale green hydrogen facility, producing 1.2 mn tons of green ammonia annually.

BACKGROUND- This plays nicely into both the Kingdom’s bid to boost domestic production of renewable energy and to localize manufacturing of both critical industries advanced technologies.

DATA POINT- Credit quality at local banks improved as non-performing loans dropped to to 1.4% of outstanding facilities in 1Q 2024 from 1.7% a year earlier on the back of stronger risk profiles and effective risk management, Arab News reports citing data from the Saudi Central Bank (Sama).

PSAs-

#1- Global management consultancy Arthur D. Little has made King Abdullah Financial District (Kafd) in Riyadh its regional HQ, the firm said in a post on Linkedin. The inauguration ceremony was attended by Investment Minister Khalid Al Falih and Kafd CEO Gautam Krishna Sashittal. “This new office marks a significant milestone in our journey to support the Kingdom’s economic transformation and growth,” Arthur D. Little said.

IN CONTEXT- Earlier this year, the government rolled out tax incentives for foreign companies that relocate their regional headquarters to the Kingdom — and state institutions are helping with the push. 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. Companies that don’t declare Saudi their regional HQ run the risk of being ineligible to bid for government contracts.

#2- Residents of Sharurah, in Najran province, will be financially compensated for extended power outages over the weekend, Okaz reported, citing a text message by the Saudi Electricity Company (SEC) to residents in the area. SEC apologized for the disruption of services and said SAR 2k in compensation would be added to each affected client’s account.

REMEMBER: This is the second power outage this month following an outage last week that affected Hittin, Al Nakheel, Al Aqeeq, and Al Ghadeer. It was caused by an unaffiliated contractor damaging a main electrical transmission line while working on a public project.

#3- You can now report any defects in medical devices and supplies to the Saudi Food and Drug Authority (Sfda) online, the authority said in a post on X. These include products such as blood pressure monitors, contact lenses, thermometers, home nebulizers, and laser hair removal devices, among others. Consumers must attach the purchase invoice, a photo of the item, and photos of any injuries sustained due to the use of the product.

ALSO- An unnamed establishment was fined SAR 500k by the Sfda for tampering with expiry dates on poultry products, state news agency SPA reported. The authority seized 5 tons of food including poultry products with doctored expiry dates and poultry and meat from unknown sources at the facility’s warehouse in Riyadh.

SPORTS-

New Al Qadsiah CEO tipped as Rangers FC savior: James Bisgrove, who jumped ship as CEO at Rangers FC to assume the same role at newly promoted Al Qadsiah, might offer up a solution to bail out his former employers which are looking to make room for new signings amid some financial struggles, Ibrox News reported.

Bisgrove’s plan could see him bringing some senior players from the Scottish side to the Saudi Pro League. “Maybe he’ll be able to help us in terms of one or two outgoings. Maybe one or two of the boys will be playing their football towards the end of their careers [in Saudi],” ex-Rangers player Derek Ferguson said.

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THE BIG STORY ABROAD-

Donald Trump is still in front pages everywhere — this time after formally taking the Republican nomination. He has named Ohio Senator JD Vance as his running mate — Vance was once a Trump critic and is a sharp populist — in a move that the Wall Street Journal says could be aimed at clinching victory in the Midwest battleground states.

Trump made his first public appearance since his assassination attempt — with a big bandage on his ear — at the Republican National Convention, which is still underway at dispatch time.

ALSO- A US judge dismissed a criminal case over Trump’s handling of classified documents, in the latest legal victory for the former president, the WSJ reported separately. The judge in the case is a Trump appointee who has made a series of baffling or unorthodox rulings in the case.

AND- Trump will force Ukraine-Russia peace talks if he’s elected president, says Hungary’s prime minister, Viktor Orbán.

OVER IN FRANCE- The fragile unity within the country’s New Popular Front is fraying as coalitions within the party fail to agree over a new prime minister, France24 reports. The government is set to convene on Thursday for the first time to elect a new president of the national assembly, equivalent to the speaker of the house.

IN THE BUSINESS PRESS- Apple’s shares rose to a record high after Morgan Stanley identified the stock as a “top pick,” giving it a valuation of USD 3.62 tn, attributing the choice to the iPhone manufacturer’s AI efforts, which it expects to help boost sales.

SPEAKING OF APPLE- Fellow iSheep can now download the beta version of iOS 18 (and iPad, macOS, watch OS 18, and macOS Sequoia). (The Verge)

AND IN EARNINGS NEWS- Goldman Sachs saw its net income more than double in 2Q 2024 to USD 3 bn due to a recovery in dealmaking. Morgan Stanley is set to report its earnings today.

CIRCLE YOUR CALENDAR-

The Crawford vs Madrimov boxing showdown will take place on Saturday, 3 August at the Los Angeles BMO Stadium. The event is the highlight of the Los Angeles Riyadh Season Card which features five other bouts. You can check them out here.

Aramco is set to release its 1H 2024 results on Tuesday, 6 August, according to its website. You can tune into the audio webcast of its earnings call here. The oil giant’s net income dipped a bit more than 14% in 1Q 2024 to SAR 102.3 bn.

Cybersecurity training event SANS Riyadh Cyber Leaders August 2024 will run from Sunday, 18 August to Thursday, 22 August at the Hyatt Regency Riyadh Olaya.

The eight-week Esports World Cup runs until Sunday, 25 August Riyadh’s Boulevard City. The world’s top esports clubs are competing for a pool of USD 60 mn — the largest purse in esports.

The TotalEnergies CAF Super Cup Final 2024 between Egyptian rivals Al Ahly and Zamalek will be held in Riyadh on Friday, 27 September. The venue and kick-off time of the match will be announced at a later date.

This year’s edition of security-focused expo Intersec Saudi Arabia will run from Tuesday, 1 October to Thursday, 3 October at the Riyadh International Convention and Exhibition Center.

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