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CAPITAL MARKETS-
China gets two new Saudi-focused ETFs: Two exchange-traded funds (ETFs) tracking Saudi stocks made their debut in Shanghai and Shenzhen yesterday, Bloomberg reported.
The rundown: The China Southern Asset Management CSOP Saudi Arabia ETF QDII listed in Shenzhen after raising CNY 634 mn (USD 87 mn) ahead of listing, while the Huatai-PineBridge CSOP Saudi Arabia ETF QDII listed in Shanghai after drawing in CNY 590 mn ahead of listing. They each hit the 10% daily limit for first-day trading briefly before closing up nearly 8% with combined turnover of CNY 5 bn.
What this means for trade relations: The launch of the two ETFs and their impact on trade relations between Riyadh and Beijing also earned airtime on Bloomberg (watch, runtime: 9:33) The CSOP Saudi Arabia ETF tracks the FTSE Saudi Arabia Index and launched last November.
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ENERGY-
A new energy storage project in the works: Saudi investment company Al Gihaz Holding has signed an agreement with Chinese energy storage systems supplier Sungrow Power Supply for a 7.8 GWh energy storage project, Reuters reports, citing a statement from Sungrow. The project — which is slated for delivery this year — targets to boost the stability of the Kingdom’s power grid. The value and location of the project were not disclosed.
INFRASTRUCTURE-
Saudi-Spanish JV to develop water recycling project in Neom: A joint venture between the International Water Distribution Company (Tawzea) and Madrid-based contractor Lantania signed a contract with Neom to develop its Al Badaa Water Recycling Plant, according to a press release (pdf). The contract, valued at SAR 316.2 mn, runs for 24 months starting 4Q 2024. Tawzea is a subsidiary of Tadawul-listed infrastructure and logistics investment firm Sisco Holding.
The details: The JV’s scope of work will include the engineering, procurement, construction, testing, and commissioning activities at the Al Badaa Water Recycling Plant. It will also include development of an interim biosolids treatment facility, an interim innovation center, and a biosolids demonstration center. No further details were provided.
ENTERTAINMENT-
More Imax screenings coming your way: Homegrown cinema chain Muvi signed an agreement with global cinema operator Imax Corp to add four Imax locations with laser systems in Saudi as part of their first-ever collaboration, according to a statement. Riyadh will see two new Imax systems while Jeddah and Dhahran will see one each. Three of the locations are scheduled to open by the end of this year with the fourth following in 2025.
IN CONTEXT- Imax currently has 10 operational locations in Saudi with plans to open 22 more under its partnership with Muvi, according to the statement. It aims to bring its operational locations to at least 50 across the Kingdom.
RETAIL-
More Circle K-branded filling stations are coming to Saudi: Alsulaiman Group (ASG) signed an agreement with global convenience store chain Circle K to open a number of Circle K-branded fuel stations, according to a statement by the Energy Ministry. No details on the number of fuel stations or heir locations were disclosed. ASG is the franchisee of convenience store chain Circle K here and in the GCC.
BACKGROUND- ASG wants to increase the number of its Circle K branches in Saudi and the GCC to 300 by 2029 from a current 40. The plan includes opening locations in hospitals, universities, office buildings, and filling stations.
SPACE-
A fresh framework agreement between Saudi-US on space: The Saudi Space Agency signed a “strategic” cooperation agreement with Nasa to explore options for space cooperation, according to two separate statements (here and here). The MoU will focus on space and earth sciences, aeronautics, space missions, education, and others. It comes a few months after Nasa Administrator Bill Nelson visited Saudi for talks on future collaboration between Riyadh and Washington.
M&A WATCH-
Riyadh-based mining company AGC is eyeing a stake in Egyptian AFAQ Mining, which owns the rights to a concession in West Gabal Elbah, AGC Chairman Khalid Al Jahdali told Asharq Business on the sidelines of the Egypt Mining Forum, without sharing any details about the exact size of the stake.
AGRICULTURE-
Topian and AK-Sens to work on new tech for palm trees infestation: Neom’s food company Topian and Kaust-backed startup AK-Sens are collaborating to scale optical fiber sensing technology to enable early-stage detection of the red palm weevils posing a threat for Saudi’s 36 mn palm trees, Arab News reported. Initial trials were conducted by a team with a few trees in Tabuk before it expanded to include some 1k trees in Neom where they achieved a 96.3% accuracy in detection.
IN PERSPECTIVE- Saudi’s SAR 9.2 bn date industry loses an average of SAR 1 bn annually due to red palm weevil infestations, according to Topian.
TECH-
The Kingdom maintained its second ranking among G20 countries in the 2024 ICT Development Index by the UN’s International Telecommunication Union for a second consecutive year, state news agency SPA reported. Saudi’s ICT market tops the region at SAR 166 bn along with 198% penetration rate of mobile subscriptions, according to the Communications, Space and Technology Commission.
About the index: The ICT Development Index monitors the advancement of 170 countries in ICT services and digital infrastructure.
