Closing Bell: Saudi main index gains 0.52% to close at 12,173

The index saw a total trading turnover of SR6.10 billion ($1.63 billion), with 150 stocks advancing and 87 declining. File
The index saw a total trading turnover of SR6.10 billion ($1.63 billion), with 150 stocks advancing and 87 declining. File
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Updated 14 January 2025
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Closing Bell: Saudi main index gains 0.52% to close at 12,173

Closing Bell: Saudi main index gains 0.52% to close at 12,173

RIYADH: Saudi Arabia’s benchmark Tadawul All Share Index rebounded on Tuesday, rising by 62.81 points, or 0.52 percent, to close at 12,172.75.

The index saw a total trading turnover of SR6.10 billion ($1.63 billion), with 150 stocks advancing and 87 declining.

The Kingdom’s parallel market also posted gains, rising by 82.65 points to finish at 31,317.09. The MSCI Tadawul Index increased by 0.50 percent, closing at 1,517.21.

The day’s biggest gainer was Nice One Beauty Digital Marketing Co., with its share price surging 9.81 percent to SR54.30.

Other notable performers included Americana Restaurants International PLC – Foreign Co., which rose 9.01 percent to SR2.42, and Fawaz Abdulaziz Alhokair Co., which gained 8.08 percent to SR15.78.

On the downside, Savola Group saw its share price drop by 2.23 percent, closing at SR37.35.

On the announcements front, Al Jouf Cement Co. announced that recent adjustments to fuel prices in Saudi Arabia would lead to a 10.1 percent increase in production costs.

The company said the impact would be reflected in its financial performance for the first quarter of 2025. As a result, Al Jouf Cement’s share price declined by 0.92 percent, closing at SR10.74. KnowledgeNet Co. revealed that it had signed a SR3.12 million contract with Beltone Securities Brokerage, Beltone Securities Holding, and Beltone Fixed Income to provide financial brokerage and custody services.

The deal will see KnowledgeNet replace its existing systems with the TradeNet Back Office System and TradeNet Custody System, which the company believes will improve the efficiency of its operations. KnowledgeNet’s share price rose by 1.60 percent, closing at SR35.

Ataa Educational Co. also announced that its shareholders had approved a 12.5 percent cash dividend, totaling SR1.25 per share, for the financial year ending July 31, 2024. Despite the dividend approval, the company’s share price fell by 0.27 percent, closing at SR74.50.


How Saudi entrepreneurs are navigating the shift to public markets 

How Saudi entrepreneurs are navigating the shift to public markets 
Updated 17 sec ago
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How Saudi entrepreneurs are navigating the shift to public markets 

How Saudi entrepreneurs are navigating the shift to public markets 

RIYADH: As startups approach the critical stage of an initial public offering, one of their biggest challenges is the transition from a fast-paced, founder-driven company to one that must meet the rigorous demands of public markets.  

This shift often requires a fundamental change in mindset — particularly in areas such as governance, financial discipline, and regulatory compliance.  

The journey from a nimble startup to a publicly traded company is a transformative one, and it is a challenge many companies in Saudi Arabia’s rapidly evolving startup ecosystem will soon face.  

Historically, strategic acquisitions were the primary exit strategy for startups seeking liquidity. However, with an increasing number of late-stage companies reaching scale, IPOs are rapidly emerging as a viable — and increasingly attractive — option.  

As the Kingdom’s entrepreneurial landscape matures, the path to public markets is becoming a more prominent choice for startups looking to grow beyond their founding teams and tap into the capital needed to expand. 

“Many startups struggle in this arena because what worked in their early years — fast decisions, aggressive growth, and loose structures — won’t hold up under public scrutiny,” said Mohammed Al-Meshekah, founder and general partner of Outliers, an early investor in Saudi Arabia’s Tabby, now valued at $3.3 billion and on track for an IPO.   

Speaking to Arab News, Al-Meshekah said that “the right investors work with founders to institutionalize their company without killing its agility.”    

He added: “This means tightening financial discipline early, not as a last-minute fix, ensuring reporting is clean, unit economics are sustainable, and capital allocation is intentional.”  

Mohammed Al-Zubi, managing partner and founder of Nama Ventures, which backed Saudi unicorns Salla and Tamara — both preparing for public listings — echoed this sentiment, saying that the best approach is to build with IPO-level governance long before it becomes necessary.   

“This means structuring financial reporting properly, ensuring compliance frameworks are in place, and building a leadership team that can transition into a public company environment,” Al-Zubi told Arab News.  

Regulatory hurdle   

Regulatory compliance is another hurdle, particularly in regions where high-growth technology startups must navigate frameworks originally designed for traditional industries.    

“At the same time, there’s an opportunity to evolve regulatory frameworks in the region to better support high-growth companies,” Outliers’ Al-Meshekah said.   

“Many existing standards were designed with traditional industries in mind, which naturally differ from the structure and scaling needs of technology-driven businesses,” he added, noting that regulators must strike a balance between ensuring market stability and enabling companies with global potential to list locally.    

“Striking this balance could position Saudi Arabia and the region more broadly as a leading destination for high-growth IPOs, attracting not just companies built in the region but those from around the world looking for a strong public market to scale.”    

Investor alignment also plays a key role in a smooth IPO transition. “Startups that have investors who prioritize short-term gains over sustainable growth often face challenges when transitioning to public markets,” Al-Zubi said.    

“Those backed by long-term partners who guide them toward disciplined execution, regulatory readiness, and scalable operations are the ones that make the leap successfully.”   

IPO as the new exit strategy   

Al-Zubi said that just five years ago, IPOs were not considered a viable exit path for startups in the region — with strategic acquisitions seen as the only clear exit strategy.   

“While acquisitions provided liquidity, they often left a lot of money on the table because startups were being acquired before realizing their full potential,” he said.   

Today, Al-Zubi noted, the dynamics are changing. “IPOs are now the dominant exit strategy, and we’re seeing more late-stage startups actively preparing for public markets. Companies like Tamara and Salla are proof that regional startups can scale to IPO readiness, and as capital markets continue to evolve, this trend will accelerate.”    

However, acquisitions and secondary sales will continue to play a role, particularly in industries where global players are looking for entry points into the Saudi market.    

“With IPOs now a real option, founders are no longer forced to sell prematurely,” Al-Zubi added. “Instead, they can scale further, capture more value, and exit at a much higher valuation through public markets.”  

  Al-Meshekah agreed that IPOs will become an increasingly important part of the exit landscape but noted that they will complement acquisitions or secondary sales, not fully replace them.   

“As more Saudi startups mature, we’ll see a broader mix of exit strategies, with IPOs becoming a key path for companies that can sustain independent growth. But the best companies aren’t built for a single outcome; they create lasting value with optionality, whether through an IPO, acquisition, or secondaries,” he added, pointing to historical trends in the US to illustrate how dynamics evolve in maturing ecosystems.    

“If we look to the US as a reference point, IPOs once dominated venture-backed exits, accounting for over 80 percent in the 1980s, before dropping to 50 percent in the 1990s and falling below 10 percent in the past 25 years,” he said.    

“It’s natural for IPOs to lead in a developing ecosystem, with M&A following as incumbents acquire innovation to stay competitive.”  

Role of investors post-IPO  

While going public is a significant milestone for any startup, it marks the beginning of a new phase rather than the end of the journey.    

The transition from a venture-backed private company to a publicly traded entity brings new challenges, requiring founders to shift their focus from high-growth execution to long-term financial discipline and shareholder management.    

“Going public isn’t the finish line. It’s just another phase of a company’s evolution,” Al-Meshekah said.   

“The role of investors at this point shifts to long-term stewards, helping ensure a successful transition into the public markets without losing what made them great in the first place.”    

He warned that one of the biggest risks post-IPO is “short-termism” — the pressure to prioritize quarterly performance over long-term value creation.   

“Early-stage VCs who’ve been with the company since its inception play a key role in keeping the leadership grounded in its original vision while adapting to the new expectations of public shareholders,” Al-Meshekah said.   

He added that the best companies “balance financial discipline with the agility to innovate, resisting the urge to optimize for near-term stock price movements at the expense of long-term market leadership.”    

Al-Zubi highlighted how the investor base also changes once a company reaches public markets.   

“Every stage of a startup’s journey requires a different set of investors with specialized expertise,” he said.    

“Early-stage VCs play a critical role in getting a company from idea to scale, but once a startup reaches the public markets, the baton must be passed to public equity investors and institutional funds that are better suited for this phase.”    

At this stage, a startup is no longer judged solely on its growth potential but also on its ability to deliver sustainable profitability, shareholder value and robust governance.   

“Early-stage VCs, whose expertise lies in navigating uncertainty and scaling startups, must step back and allow the company to be guided by those with deep public market experience,” said Al-Zubi.    

That doesn’t mean early investors disappear entirely. “Some remain involved through board positions, but their influence naturally diminishes as new stakeholders, financial structures, and operational expectations take priority,” he explained.    

Al-Zubi emphasized that founders must embrace this transition and surround themselves with the right advisers.    

“IPOs are not just exits — they’re a shift to a new way of operating, and founders who understand this transition will be the ones who thrive in the public markets.”    

Al-Meshekah echoed this sentiment, noting that successful tech IPOs share common traits.    

“They don’t just scale their existing product; they expand into new markets, deepen customer relationships, and build sustainable competitive moats,” he said.    

“Early investors who stay engaged can provide continuity, supporting founders as they navigate this shift while maintaining the principles that drove their early success.” 


IMF warns of economic slowdown, but rules out global recession

IMF warns of economic slowdown, but rules out global recession
Updated 17 April 2025
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IMF warns of economic slowdown, but rules out global recession

IMF warns of economic slowdown, but rules out global recession

WASHINGTON: Rising trade tensions and sweeping shifts in the global trading system will trigger downward revisions of the IMF’s economic forecasts but no global recession is expected, the lender’s managing director said on Thursday.

Kristalina Georgieva said countries’ economies were being tested by a reboot of the global trading system — sparked in recent months by US tariffs and retaliation by China and the EU — that had unleashed “off the charts” uncertainty in trade policy and extreme volatility in financial markets.

“Disruptions entail costs ... our new growth projections will include notable markdowns but not recession,” she said in prepared remarks, adding the outlook would also include higher inflation forecasts for some countries.

“To quote from the ‘Wizard of Oz,’ we’re not in Kansas anymore,” Georgieva told IMF staff and reporters at the IMF headquarters in Washington ahead of the spring meetings of the IMF and World Bank next week.

Elevated uncertainty also raised the risk of financial market stress, Georgieva said, noting that recent movements in US Treasury yield curves should be taken as a warning. “Everyone suffers if financial conditions worsen,” she said.

US President Donald Trump has upended the global trading system with a tsunami of new tariffs, including a 10 percent US duty on goods from all countries and higher rates for some, although those have been paused for 90 days to allow negotiations. China, the EU and other countries have announced retaliatory measures.

The IIMF in January forecast global growth of 3.3 percent in 2025 and 3.3 percent in 2026. It will release an updated World Economic Outlook on Tuesday.

Georgieva, speaking at IMF headquarters in Washington ahead of the spring meetings of the IMF and World Bank next week, gave no details about the expected revisions, but warned that prolonged uncertainty would be costly and said the consequences of the trade reboot would be “significant.”

Georgieva said trade tensions had been bubbling for some time, but were now boiling over, and urged countries to respond wisely to the “sudden and sweeping shifts” seen in tariffs, driving the US effective tariff rate to levels last seen several lifetimes ago and resulting in response by other countries.

“As the giants face off, smaller countries are caught in the cross currents,” Georgieva said. China, the EU and the US were the world’s three largest importers, which meant big spillovers for smaller countries that were more exposed to tighter financial conditions, she said.

Rising tariffs hit growth upfront, she said, noting that past evidence showed that higher tariff rates were paid by importers through lower profits and consumers through higher costs.

In big economies, they could also create incentives for new inward investment, creating new jobs, but this took time.

“Protectionism erodes productivity over the long run, especially in smaller economies,” she said, warning that moves to shield industry from competition also undercut entrepreneurship and hurt innovation.

Georgieva urge countries to continue economic and financial reforms while maintaining agile and credible monetary policy, as well as strong financial market regulation and supervision.

Emerging market economies should preserve their exchange rate flexibility, and donor countries should better protect aid flows to vulnerable low-income countries, she added.

Georgieva also called for cooperation in an increasingly multi-polar world, and urged the largest economies to reach a trade settlement that preserved openness and restarted a global trend toward lower tariff rates and reduced non-tariff barriers.

“We need a more resilient world economy, not a drift to division,” she said. “All countries, large and small alike, can and should play their part to strengthen the global economy in an era of more frequent and severe shocks.”


Libyans grapple with fresh currency devaluation

Libyans grapple with fresh currency devaluation
Updated 17 April 2025
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Libyans grapple with fresh currency devaluation

Libyans grapple with fresh currency devaluation
  • Libyans are facing a sharp deterioration in their purchasing power after a sudden devaluation of the Libyan dinar
  • Libya has Africa’s most abundant hydrocarbon reserves, but it is struggling to recover from years of conflict since 2011

TRIPOLI: Already worn down by years of political turmoil and economic hardships, Libyans are now facing a sharp deterioration in their purchasing power after a sudden devaluation of the Libyan dinar.
Experts have said the national currency’s exchange rate decline came as a consequence of ballooning public expenditures by the country’s rival governments in recent years.
Libya has Africa’s most abundant hydrocarbon reserves, but it is struggling to recover from years of conflict after the 2011 NATO-backed uprising that overthrew longtime dictator Muammar Qaddafi.
It is currently divided between a UN-recognized government in the capital Tripoli and a rival administration in the east backed by general Khalifa Haftar, with the division exacerbating the country’s economic woes.
The Libyan central bank earlier this month devalued the dinar by 13.3 percent, the second such move in five years.
The exchange rate went up to 5.56 dinars to the US dollar from 4.48 — while on the black market it jumped to 7.80 dinars to the US dollar from 6.90.

It has become hard to keep up with our needs for food, medicine, transportation, education and bills

Karim Achraf, Libyan engineer

The impact was immediate, with small business owners and wholesale traders, who rely heavily on the parallel market to obtain foreign currency for imports, seeing their costs surge.
“The currency keeps going down,” said Karim Achraf, a 27-year-old engineer and father of three living in the capital, Tripoli.
“It has become hard to keep up with our needs for food, medicine, transportation, education and bills,” he said.
“We can’t trust our governments with our economy and safety.”
Political deadlock
Despite its vast oil reserves, output remains below pre-2011 levels and the country lacks a robust industrial and agricultural sector.
It is almost entirely dependent on imported food, medical supplies and consumer goods, with oil exports its main source of revenue.
The United Nations Support Mission in Libya (UNSMIL) has expressed alarm following the sudden devaluation, urging both administrations to take “urgent measures to stabilize the national economy.”
“Swift action is essential to reduce the negative impact on the Libyan people, including rising costs of living, declining purchasing power and the erosion of public trust in state institutions and leaders,” it said in a statement.
In Tripoli, dozens of protesters recently gathered outside the central bank headquarters to voice their anger.

Libya's central bank was forced to make the decision to protect what remained of the dinar’s strength

Mahmoud El-Tijani, an economist

But while much of the criticism has been aimed at the bank, some believe it is unfairly blamed for problems stemming from political deadlock and fiscal mismanagement.
Mahmoud El-Tijani, a Libyan economist, said the central bank was “a victim of the executive branch’s failure and division.”
He said it was “forced to make the decision to protect what remained of the dinar’s strength.”
Amid falling oil revenues, the devaluation of the dinar was used as a “last-chance measure to avoid bankruptcy and external debt,” he added.
Libya’s institutions, including its central bank, have for a decade found themselves caught between the rival governments.
Until 2023, the bank was split in two, with an internationally recognized headquarters in the capital and another in the east, with each printing bills signed off by their respective governors.
Last year, the then-governor of the bank fled amid violent tensions surrounding the institution, with the United Nations stepping in to broker a deal for a new governor to be appointed.
Central bank
Jalel Harchaoui, a senior fellow at the London-based Royal United Services Institute, said the central bank was “simply confronting the inevitable consequences of the political choices made by Libya’s ruling factions.”
“These enormous expenditures are highly political, arbitrary, and unsustainable,” he said.
“They are not decided by the central bank, which is a technocratic institution without the military or sociopolitical clout of Libya’s leaders.”
“Blaming the central bank is pure populism,” Harchaoui added, describing the bank as “a scapegoat.”
Anwar Al-Turki, a banker in Tripoli, said the central bank was being “mistreated” by political leaders who had authorized “the highest public spending in modern Libyan history.”
He said the decision makers had little regard for “good governance, financial compliance, or anti-corruption.”


Closing Bell: Saudi main index closes in red at 11,502

Closing Bell: Saudi main index closes in red at 11,502
Updated 17 April 2025
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Closing Bell: Saudi main index closes in red at 11,502

Closing Bell: Saudi main index closes in red at 11,502

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 81.44 points, or 0.7 percent, to close at 11,552.98.

The total trading turnover of the benchmark index was SR4.72 billion ($1.25 billion), as 44 stocks advanced, while only 202 retreated.

The MSCI Tadawul Index decreased by 10.51 points, or 0.71 percent, to close at 1,469.39.

The Kingdom’s parallel market, Nomu, dipped, losing 369.85 points, or 1.27 percent, to close at 28,713.72. This comes as 29 stocks advanced while 60 retreated.

This aligns with a dip in global stock markets with the ongoing worldwide trade war following US President Donald Trump’s reciprocal tariffs introduced earlier this month.

For instance, the Nasdaq index dipped 3.07 percent in the trading session on April 16, closing at 16,307.16, losing 516.01 points.

The best-performing stock was Alistithmar AREIC Diversified REIT Fund with its share price surging by 10 percent to SR6.60.

Other top performers included Dar Alarkan Real Estate Development Co., which saw its share price rise by 3.82 percent to SR22.84, and Allied Cooperative Insurance Group, which saw a 3.44 percent increase to SR16.22.

Al Mawarid Manpower Co. and Jabal Omar Development Co. also saw increases in today’s trading session, with their share prices advancing by 2.10 percent and 1.82 percent to SR145.60 and SR23.52, respectively.

The day’s worst performer was Al-Baha Investment and Development Co., whose share price fell 5.74 percent to SR3.12.

Middle East Specialized Cables Co. and Lazurde Co. for Jewelry also saw declines, with their shares dropping by 4.83 percent each to SR35.50 and SR13.40, respectively.

The top four and five worst performers were Raoom Trading Co. and Saudi Printing and Packaging Co., whose share prices dipped by 4.48 percent and 4.36 percent to SR78.90 and SR10.52, respectively.


Red Sea tensions slash Suez Canal revenue as Egypt pushes diplomatic path

Red Sea tensions slash Suez Canal revenue as Egypt pushes diplomatic path
Updated 17 April 2025
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Red Sea tensions slash Suez Canal revenue as Egypt pushes diplomatic path

Red Sea tensions slash Suez Canal revenue as Egypt pushes diplomatic path

JEDDAH: Amid escalating tensions in the Red Sea, Egypt’s Prime Minister Mostafa Madbouly reaffirmed the country’s commitment to diplomatic solutions as disruptions to international shipping through the Suez Canal led to a dip in revenues.

Speaking at a high-level ceremony on April 16 celebrating the Suez Canal Authority’s Day of Excellence, Madbouly warned that regional instability has already had a significant impact on global trade, with Suez Canal revenues falling to $3.99 billion in 2024 — a stark drop from the record $10.25 billion recorded in 2023.

The decline follows a wave of attacks by Yemen’s Houthis on commercial shipping in the Red Sea, part of the group’s protest against the Gaza conflict. Between November 2023 and January 2024, they targeted over 100 merchant vessels.

Despite these challenges, Madbouly emphasized Egypt’s role as a stabilizing force, asserting that Cairo has deliberately avoided any actions that might undermine regional security. “Egypt has opted for a path of political solutions, working with international partners to address the crisis while ensuring the continued functioning of the canal,” he said in a statement.

The prime minister described the canal as “the heart of global trade,” underlining its historic and strategic value not only to Egypt but to international commerce.

He credited President Abdel Fattah El-Sisi’s leadership for ongoing development efforts, including modernizing the canal’s infrastructure and services.

The Suez Canal Authority also unveiled several new initiatives during the ceremony, including a ship waste management service in partnership with V Group, which aims to position the canal as a certified green route by 2030. Additional projects launched included the region’s first floating pontoon factory and the Suez Canal Innovation and Excellence Center.

In a show of international cooperation, Madbouly witnessed the signing of a memorandum of understanding with Spain’s Tejedor Lazaro Group to advance aquaculture and fish feed production — a move aligned with Egypt’s broader food security and investment strategy.

SCA Chairman Osama Rabie thanked the government for its backing and pointed to signs of recovery. He said 264 vessels had returned to transiting the canal instead of rerouting around the Cape of Good Hope since February, attributing this shift to adaptive marketing strategies and client engagement.

March 2025 brought modest gains: vessel transits rose by 2.4 percent, net tonnage increased by 7.1 percent, and revenue grew by 8.8 percent compared to January.

Despite headwinds including the COVID-19 pandemic and regional conflicts, Rabie highlighted the canal’s resilience. From 2019 to 2024, more than 121,000 ships passed through the waterway, carrying over 7.1 billion tons of cargo and generating nearly $40 billion in revenue.

The Day of Excellence event was attended by several ministers, foreign ambassadors, and maritime officials, underscoring the canal’s global relevance.