CMA proposes easing investor criteria for Nomu to boost participation, liquidity

Under the new regulations, board and committee members of companies listed on Nomu would also be eligible to qualify as investors. Shutterstock
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Updated 27 March 2025
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CMA proposes easing investor criteria for Nomu to boost participation, liquidity

JEDDAH: Saudi Arabia’s Capital Market Authority has proposed easing investor criteria for Nomu, the Kingdom’s parallel market, aiming to expand participation and improve liquidity.

The proposed amendments suggest reducing the minimum transaction requirement for individual investors from SR40 million ($8 million) to SR30 million over a 12-month period.

Additionally, the requirement for quarterly trading activity would be eliminated. Under the new regulations, board and committee members of companies listed on Nomu would also be eligible to qualify as investors.

The project aims to reserve the term “Qualified Investor in the Parallel Market” for eligible categories, amend the minimum transaction value required for classifying a natural person as a qualified investor, and rank board members and committee members of listed companies as suitable to invest.

Saudi Arabia accounted for 31 percent of the region’s total initial public offering proceeds in 2024, making it the second-largest contributor after the UAE. The Saudi Exchange, Tadawul, witnessed 14 IPOs on its main market, collectively raising $3.8 billion. Nomu also saw 28 IPOs, generating $297 million.

The CMA called upon relevant and interested persons participating in the capital market to share their feedback on the draft for 30 days, ending on April 28.

Earlier in March, the CMA called for feedback on the draft “Regulatory Framework for Debt Instruments Offering Platforms and Investing in Them,” which aims to develop debt instrument offerings by licensed capital market institutions for securities crowdfunding.

With the consultation period to end on April 23, the draft outlines regulatory and licensing requirements for offering and investing in debt instruments, aligning with developments in the capital market.

Key proposals include allowing organizations to present debt instruments in the sukuk and debt market and enabling companies with a FinTech Experimental Permit to obtain the necessary license to operate as capital market institutions.

Organizations will need an arranging license to offer debt instruments through crowdfunding platforms. The draft also introduces requirements for safeguarding client funds and registrable functions for licensed establishments.

The proposal aims to expand the role of capital market institutions in financial technology, enhance the debt market, and increase participation in securities crowdfunding, supporting the CMA’s objectives.


Saudi Arabia’s inflation holds steady at 2.3% in June

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Saudi Arabia’s inflation holds steady at 2.3% in June

RIYADH: Saudi Arabia’s annual inflation rate stood at 2.3 percent in June, up slightly from 2.2 percent in May, according to the latest data released by the General Authority for Statistics.

The increase in prices was primarily driven by a rise in housing rents, which continued to exert upward pressure on the cost of living, even as other consumer categories experienced mixed price movements.

Housing and utility costs remained the biggest contributor to inflation, rising by 6.5 percent year on year. This surge was largely due to a 7.6 percent increase in actual housing rents, with villa rental prices alone climbing 7.1 percent compared to June last year.

Given that the housing component carries a significant weight of 25.5 percent in the consumer price index basket, its persistent escalation has had an outsized impact on overall inflation.

Compared to its Gulf Cooperation Council neighbors, the Kingdom’s inflation sits near the regional average. In the UAE, annual inflation hovered around 2.3 percent in recent months, reflecting similar housing-related pressures.

The Saudi food and beverage segment experienced an annual increase of 1.5 percent, driven by a 2.4 percent rise in meat and poultry prices. The cost of personal goods and services rose by 4.1 percent, influenced in large part by a 26.5 percent spike in jewelry, watches, and antiques.

Restaurants and hotels also saw moderate inflation, rising 1.6 percent annually, while education prices increased by 1.4 percent, driven mainly by a 5 percent hike in tertiary education fees.

At the same time, downward pressure came from a handful of categories. Prices for furnishings and household equipment fell by 1.7 percent due to a decline in furniture and carpeting. Clothing and footwear prices dipped 0.6 percent, primarily due to a reduction in garment costs, while transportation prices declined 0.7 percent year on year, reflecting a 1.7 percent drop in vehicle prices.

On a monthly basis, the CPI remained broadly stable in June, registering a modest 0.2 percent increase from May according to the report. This was once again led by a 0.2 percent rise in the housing category, alongside slight increases in food, personal goods, and recreation services.

Prices of health services and communication saw minor declines, while tobacco and transportation remained flat compared to the previous month.

Saudi Arabia’s inflation rate remains moderate by global and regional standards. A combination of government subsidies, regulated utility prices, and the riyal’s fixed exchange rate to the US dollar are key stabilizing forces.

Additionally, the country’s subsidy framework, particularly in energy and essential food items, continues to shield consumers from global price shocks.
 
While the Kingdom’s inflation rate is in line with that seen in Kuwait — which reported a figure of approximately 2.2 percent as of May — other countries have seen a marked difference.

Qatar’s inflation remained significantly lower at just 0.5 percent year-on-year in April, and Bahrain experienced deflation, with consumer prices falling by about 1 percent annually in May.

Oman also recorded one of the lowest rates in the bloc, holding under 1 percent for much of 2025. The shared currency pegs and regional subsidy models have collectively contributed to a subdued inflationary landscape across the Gulf.

Oranges and lemons up

Saudi Arabia’s Wholesale Price Index saw an annual rise of 2.1 percent in June, driven mainly by 4.5 percent increase in transportable goods except metal products, machinery and equipment.

The price of agriculture and fishery product also increased by 4.4 percent annually according to the General Authority of Statistics.

Prices for metal products, machinery, and equipment declined by 0.3 percent due to a fall in electronics and industrial machinery costs. On a monthly basis, however, wholesale prices edged down 0.1 percent compared to May, suggesting some easing of cost pressures at the producer level.

GASTAT’s accompanying report on the Average Prices of Goods and Services offered a closer look at individual items affecting consumers directly.

The price of medium African lemons surged by 12.6 percent in June compared to the previous month, marking one of the sharpest increases among fresh produce. Abu Sorra Egyptian oranges and Pakistani mandarins also saw notable jumps.

Conversely, local onions became significantly cheaper, falling 16.7 percent month-on-month, while okra and imported onions dropped by 13.4 percent and 10.3 percent, respectively.

These fluctuations underscore the seasonal and supply-driven nature of food price changes in the Kingdom.

With inflation remaining broadly contained and economic diversification efforts continuing under Vision 2030, Saudi Arabia is maintaining a stable macroeconomic environment.

While rents and discretionary spending categories such as jewelry and education continue to rise, broader price stability across essential goods and services reflects the resilience of the Kingdom’s economic framework amid global uncertainty.


Oil Updates — Crude falls as Trump’s 50-day deadline for Russia eases supply fears

Updated 15 July 2025
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Oil Updates — Crude falls as Trump’s 50-day deadline for Russia eases supply fears

LONDON : Oil prices fell on Tuesday after US President Donald Trump’s lengthy 50-day deadline for Russia to end the Ukraine war and avoid sanctions eased immediate supply concerns.

Brent crude futures fell 12 cents, or 0.2 percent, to $69.09 a barrel by 09:10 a.m. Saudi time, while US West Texas Intermediate crude futures fell 16 cents, also 0.2 percent, to $66.82. Both contracts settled more than $1 lower in the previous session.

“Trump’s milder stance on sanctions over Russian oil eased fears of a supply crunch while his tariff plan continues to mount economic pressures,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Oil prices had climbed on the potential sanctions, but later gave up their gains as the 50-day deadline raised hopes that sanctions could be avoided, and traders dwelled on whether the US would actually impose steep tariffs on countries continuing to trade with Russia.

If Trump does follow through and the proposed sanctions are implemented, “it would drastically change the outlook for the oil market,” analysts at ING said in a note on Tuesday.

“China, India and Turkiye are the largest buyers of Russian crude oil. They would need to weigh the benefits of buying discounted Russian crude oil against the cost of their exports to the US,” the ING note said.

Trump announced new weapons for Ukraine on Monday, and had said on Saturday he would impose a 30 percent tariff on most imports from the European Union and Mexico from August 1, adding to similar warnings for other countries.

Tariffs risk slowing down economic growth, which could sap global fuel demand and drag oil prices lower.

China’s economy slowed in the second quarter, data showed on Tuesday, with markets bracing for a weaker second half as exports lose momentum, prices continue to fall, and consumer confidence remains low.

Tony Sycamore, an analyst at IG, said economic growth in China came in above consensus, largely due to strong fiscal support and the front-loading of production and exports for the US to beat tariffs.

“Economic data released today was concerning. Today’s tepid Chinese data has direct implications for commodities including iron ore and crude oil,” he said.

Elsewhere, oil demand is set to stay “very strong” through the third quarter, keeping the market balanced in the near term, the Organization of Petroleum Exporting Countries’ secretary general said, according to a Russian media report. 


Closing Bell: Saudi main index closes in red at 11,213 

Updated 14 July 2025
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Closing Bell: Saudi main index closes in red at 11,213 

RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Monday, falling 39.31 points, or 0.35 percent, to end the day at 11,213.59.

The total trading turnover on the benchmark index reached SR4.54 billion ($1.21 billion), with 60 stocks advancing and 190 declining.  

The MSCI Tadawul 30 Index also retreated, shedding 5.46 points, or 0.38 percent, to close at 1,436.97. 

The Kingdom’s parallel market Nomu declined by 80.73 points, or 0.29 percent, closing at 27,356.89. Of the listed stocks, 22 advanced while 56 retreated.  

The best-performing stock was Alistithmar AREIC Diversified REIT Fund, with its share price rising by 9.91 percent to SR9.43. 

Other top performers included Saudi Industrial Investment Group, which saw its share price rise by 4.56 percent to SR17.42, and Al Hassan Ghazi Ibrahim Shaker Co., which saw a 4.48 percent increase to SR29.40. 

On the downside, Emaar The Economic City posted the steepest drop of the day, falling 4.12 percent to SR13.73.  

Naseej International Trading Co. fell 4.03 percent to SR102.50, and MBC Group Co. dropped 3.79 percent to SR34.02. 

On the announcements front, Jarir Marketing Co. reported estimated net profits of SR197.2 million for the first half of 2025, marking a 15.2 percent increase from the same period last year. 

In a statement on Tadawul, the company attributed the estimated increase to a 4.5 percent rise in gross profit, driven by higher sales of after-sales services along with improved profit margins and an increase in other income. 

Jarir’s shares gained 1.27 percent, closing at SR12.79.

Advanced Petrochemical Co. also announced its estimated financial results for the same period. The firm’s net profits were estimated to reach SR82 million, up by 95.2 percent from the same period last year. 

The company said that the increase was driven by an 8 percent rise in net revenues, lower propane and purchased propylene prices. 

Advanced Petrochemical Co. also announced the completion of construction and successful operational launch of its Propane Dehydrogenation plant, capable of producing 843,000 tonnes of propylene annually, along with two PolyPropylene plants operated by Advanced Polyolefins Industry Co. with a combined capacity of 800,000 tonnes per year. 

The facilities, located in Jubail Industrial City, mark a significant milestone in the company’s expansion in the petrochemical sector, according to a statement. 

APOC, a joint venture between Advanced Global Investment Co. and SK Gas Petrochemical Pte., will begin contributing to Advanced Petrochemical Co.’s consolidated financial results starting in the third quarter of 2025. 

Advanced Petrochemical shares closed 0.32 percent higher at SR31.48. 


Italian firm Webuild secures $600m contract as Diriyah project gains pace

Updated 14 July 2025
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Italian firm Webuild secures $600m contract as Diriyah project gains pace

JEDDAH: Saudi Arabia’s Diriyah Square project has awarded a $600 million contract to Italian construction firm Webuild, marking a major step forward for the Kingdom’s heritage-driven development.

The contract, awarded to a subsidiary of the Italian group — Salini Saudi Arabia — covers the construction of 70 buildings and public spaces within the mixed-use development, which forms part of the broader Diriyah master plan. 

With this latest award, Webuild’s total involvement in the sit, known as the City of Earth, now stands at roughly $2 billion, the company said in a statement. 

Diriyah Square is a central component of Diriyah Co.’s strategy to transform the historic district into a commercial, residential, and cultural hub. 

The project is one of five giga-projects backed by Saudi Arabia’s Public Investment Fund, aimed at reshaping the Kingdom’s economy and tourism offering under the Vision 2030 plan. 

Diriyah will contribute approximately SR70 billion ($18.6 billion) directly to the Kingdom’s gross domestic product, create nearly 180,000 jobs and will be home to an estimated 100,000 people. 

Diriyah Co.’s group CEO Jerry Inzerillo said: “Diriyah Square is one of our most exciting, anticipated and prestigious districts, and we are extremely pleased to have signed with Salini to deliver it, bringing their immense global experience to the table.”

He added that this marks another important milestone in their development journey, paving the way for Diriyah Square’s retail spaces to welcome a diverse range of visitors — from nearby residential communities and surrounding office hubs to the millions who visit each year.

The contract covers Package 3 Finishing and mechanical, electrical, and plumbing, delivering a pedestrian-friendly environment in traditional Najdi style across 365,000 sq. meters. Webuild is also working on the 10,500-space underground parking facility, awarded in 2022 and currently 55 percent complete, alongside structural packages 3, 6, and 7. 

According to Diriyah Co., the project aims to create a retail district showcasing 400 brands across retail, leisure, and dining.  

In a statement released by Webuild, CEO Pietro Salini said: “We are proud to be able to contribute to a project of such symbolic and strategic value for Saudi Arabia. Our presence in the Kingdom will be further strengthened by work that will have a positive impact on the area as well as the local community.” 

He added that the company has operated in Saudi Arabia since 1966 and has completed more than 90 projects.

“We continue to support the country to develop some of the most challenging infrastructure projects in the world, especially in sectors such as civil buildings, sustainable mobility, and desalination,” Salini said. 


BYD plans major Saudi expansion following Tesla’s market entry

Updated 14 July 2025
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BYD plans major Saudi expansion following Tesla’s market entry

RIYADH: Chinese electric vehicle giant BYD Co. is aiming to triple its presence in Saudi Arabia after Tesla Inc.’s recent market entry, the firm’s managing director for the Kingdom has announced.

Currently operating three showrooms, BYD plans to expand to 10 locations by late 2026, according to Jerome Saigot. 

The expansion comes after Tesla entered the Saudi market in April with a Riyadh showroom, joining BYD and fellow Chinese firm Geely.

The development aligns with Saudi Arabia’s broader strategy to establish itself as a regional EV hub, targeting 30 percent EV adoption by 2030 as part of its Vision 2030 economic diversification plan.

“Saudi is a complex market. You need to go fast. You need to think big,” Saigot said in an interview with Bloomberg, adding: “We are not here to stay at 5 (thousand) or 10,000 cars a year.” 

Saudi Arabia’s Public Investment Fund has been aggressively investing in the EV sector, backing Lucid Motors, launching its brand, Ceer, and supporting charging infrastructure development. 

However, EVs still account for just over 1 percent of total car sales, as high costs, limited charging infrastructure, and extreme weather remain challenges, Bloomberg reported, citing data from PwC.

Saigot told Bloomberg that Tesla’s presence in the Kingdom was a positive development, helping to boost consumer awareness of EVs.

“The more Tesla communicates on marketing, the better it is for us,” said Saigot, who started at BYD in April after serving in previous roles at Nissan Motor Co. and Great Wall Motor Co.

BYD has been closing the gap with Tesla globally, outselling the US automaker in Europe for the first time in April. 

The Kingdom’s push toward electric mobility is gaining momentum, with Tesla’s recent market entry seen as a potential catalyst for faster adoption. Alessandro Tricamo, partner at Oliver Wyman, told Arab News in an interview earlier this month that nearly half of Saudis are now considering an EV purchase. 

“Tesla’s entry into the Saudi market is potentially a significant win-win situation,” he said, pointing to the brand’s appeal in a car-centric market and the company’s need to expand beyond declining Western sales. 

Also in an interview earlier this month, Taline Vahanian of Marsh UAE warned of risks for the sector, including battery degradation in extreme heat and costly insurance premiums, which could slow adoption.