LONDON: Big cross-border mergers in stock exchanges look “hard” given political opposition to opening up bourses to foreign ownership, London Stock Exchange Group Chief Executive David Schwimmer said on Wednesday.
“There have been some big painful failures out there in the industry,” Schwimmer told the annual FIA IDX derivatives industry conference.
The LSE has failed several times to merge with rival Deutsche Boerse, the most recent attempt ending with Schwimmer’s appointment as CEO last August. The deal failed in part because of opposition from local politicians in Frankfurt.
A former Goldman Sachs banker of 20 years, Schwimmer raised expectations of big deals, but he has instead focused on relatively modest transactions, like taking a small stake in settlement house Euroclear.
“There will continue to be this nationalistic focus on exchanges in particular. I think it’s hard to think about doing big cross-border exchange-type transactions. It just feels challenging for the industry,” Schwimmer said.
LSE has had the “luxury” of double-digit organic growth in businesses like clearing and information services for years and this is likely to “persist,” Schwimmer said.
M&A is part of the toolkit, but the exchange will be “careful about it, be very strategic about it, very disciplined about it,” Schwimmer said.
Curve Global, 40% owned by the LSE and aimed at breaking the dominance of Deutsche Boerse and ICE in interest rate futures in Europe, was finally making headway after “bumping along the bottom” since its launch in 2016, he said.
“We are getting traction now,” Schwimmer said.
After its launch market participants became tied up with preparing for the European Union’s new MiFID II securities rules and then for Brexit, he said.
“As we got to the end of last year and the beginning of this year, we have seen a substantial pick-up in volume, a couple of hundred percent growth rate on an annualized basis.”
Market share is about 10% in some products, rising to 40% in futures based on Sonia, the new benchmark for replacing sterling-denominated Libor, he said.
“I would attribute it to market desire to have competition,” Schwimmer said.
The LSE is “very prepared” for Brexit, he added. The exchange has had to open an EU base in Amsterdam for its London-based pan-European share trading platform Turquoise.
Schwimmer expects the LSE’s clearing house LCH in London, which dominates euro-denominated clearing in Europe, to obtain permanent EU authorization to continue serving customers in the bloc after Brexit.
London Stock Exchange CEO says ‘hard to think’ about big mergers
London Stock Exchange CEO says ‘hard to think’ about big mergers
- Schwimmer raised expectations of big deals, but he has instead focused on relatively modest transactions, like taking a small stake in settlement house Euroclear
- The LSE has failed several times to merge with rival Deutsche Boerse, the most recent attempt ending with David Schwimmer’s appointment as CEO last August
Saudi aviation surpasses localization goals, boosts women in leadership
JEDDAH: Saudi Arabia’s aviation industry exceeded its 2024 Saudization target, reaching 14,317 national employees — 124 percent of its 2025 goal — as the Kingdom accelerates efforts to become a global aviation hub.
The General Authority of Civil Aviation said women hold 17 percent of leadership roles across airports, airlines, and ground services.
The initiative is part of a broader labor market strategy to boost Saudization, a program launched in 2011 to increase domestic employment in the private sector through industry-specific quotas.
It has helped reduce Saudi unemployment from 12.8 percent in 2018 to 7.1 percent by mid-2024, surpassing the Vision 2030 goal of 8 percent. The Kingdom has set a new target of 5 percent unemployment by 2030.
In an official release, Abdulaziz bin Abdullah Al-Duailej, GACA’s president, noted that the authority had succeeded in its “Saudization of Aviation Jobs” initiative, achieving notable results in 2024.
He emphasized that this progress reflects the depth and inclusiveness of the Vision (2030) and embodies the Kingdom’s comprehensive development across all sectors, the release added.
His comments coincided with the release of the 2024 annual report on Saudi Vision 2030, which showed that the Kingdom had achieved 93 percent of its strategic goals over the past nine years.
According to the annual report, Saudi Arabia’s airports handled 128 million passengers in 2024, marking a 45.8 percent increase since the launch of Vision 2030 in 2016, while air cargo volumes topped 1.2 million tonnes.
GACA president stated that the authority achieved 100 percent of its key performance indicators and initiatives under the Vision Realization Programs. Saudi Arabia ranked 17th globally in the International Air Transport Association’s Air Connectivity Index — surpassing the 2024 target by two ranks.
According to the press release, GACA, during the 1445 Hajj season, launched the Kingdom’s first aerial taxi trial and granted licenses for cutting-edge aviation technologies.
“Several new terminals were opened, and expansions were made to various regional airports as part of the Kingdom’s efforts to adopt future-forward solutions and enhance sustainability in air transport,” it added.
The GACA chief further highlighted the sector’s advancements since the launch of the National Aviation Strategy, including the privatization of airports, the development of King Salman International Airport, the establishment of Riyadh Air, and the ordering of 548 new aircraft.
Closing Bell: Saudi main index edges up 0.24% to close at 11,784
RIYADH: Saudi Arabia’s Tadawul All Share Index increased on Monday, gaining 28.42 points, or 0.24 percent, to close at 11,784.63.
The total trading turnover of the benchmark index was SR6.4 billion ($1.7 billion), as 86 of the stocks advanced and 154 retreated.
The MSCI Tadawul Index rose 1.09 points, or 0.07 percent, to close at 1,498.77.
The Kingdom’s parallel market, Nomu, dropped 149.32 points, or 0.52 percent, to close at 28,420.71. This comes as 33 stocks advanced while 46 retreated.
TASI’s top performer was Umm Al Qura for Development and Construction Co., which surged by 9.84 percent to reach SR25.90.
Other top performers included Al-Babtain Power and Telecommunication Co., whose share price rose 6.73 percent to SR47.55, as well as Saudi Reinsurance Co., whose share price surged 6.14 percent to SR51.
Riyadh Cables Group Co. was also among the top performers, increasing 5 percent to SR130.20.
Despite reporting financial gains, Nice One Beauty Digital Marketing Co. was the worst performer, with its stock price falling 3.85 percent to SR37.50.
Allied Cooperative Insurance Group also saw its stock price decline 3.85 percent to SR14.48. Arabian Internet and Communications Services Co. also dropped to SR290, a 3.33 percent decrease.
On the announcements front, Nice One Beauty Digital Marketing Co. reported a notable rise in its interim financial results for the three-month period ending March 31.
The company posted a 29.96 percent increase in sales year on year, reaching SR324.97 million, compared to SR250.05 million in the same quarter of the previous year.
This growth was attributed to stronger order volumes, new customer acquisitions driven by efficient marketing campaigns, a broader product range, and improved fulfillment efficiency, with a positive contribution from the seasonal impact of Ramadan.
Net profit rose 10.2 percent to SR24.12 million from SR21.91 million the previous year, supported by higher revenue and reduced selling and marketing expenses, although partially offset by increased operating expenses and zakat charges.
Separately, Banque Saudi Fransi announced its intention to issue US dollar-denominated additional tier 1 capital notes under its Additional Tier 1 Capital Note Program.
This move follows a resolution by the bank’s board of directors on Aug. 19, authorizing executive management to proceed with the issuance.
The offering, expected to be made available to eligible investors in Saudi Arabia and internationally, will have its amount and terms determined based on market conditions.
The issuance aims to enhance BSF’s tier 1 capital and support general banking activities. The bank has appointed Abu Dhabi Commercial Bank PJSC, Citigroup Global Markets, and Credit Agricole Corporate and Investment Bank, as well as Emirates NBD Bank PJSC, HSBC Bank plc, Mashreqbank PSC, Merrill Lynch Kingdom of Saudi Arabia, Mizuho International plc, MUFG Securities EMEA plc, and Saudi Fransi Capital as joint lead managers.
BSF noted that the offer will be subject to regulatory approvals and emphasized that the announcement does not constitute an invitation to purchase or subscribe to securities.
Almasane Alkobra Mining Co. reported strong growth in its interim financial results for the three-month period ending March 31, driven by a significant increase in revenue and net profit.
Sales rose by 63.4 percent year on year to SR219.77 million, compared to SR134.5 million in the same quarter of the previous year.
The company attributed the rise to higher quantities sold for zinc and increased prices for copper, zinc, and gold, despite a decline in copper volumes due to a five-week maintenance shutdown announced earlier on Tadawul.
Net profit surged 265.2 percent to SR55.24 million from SR15.12 million in the same quarter last year, supported by a SR49 million rise in gross profit, improved sales, and lower production costs, despite higher taxes and severance expenses.
AMAK’s share price rose by 1.3 percent to reach SR62.50.
Eastern Province tops Saudi Arabia for FDI, with $97.6bn, says top official
JEDDAH: Saudi Arabia’s Eastern Province is leading the Kingdom in attracting foreign direct investment, with the value of its FDI stock standing at SR366 billion ($97.6 billion) — 42 percent of the country’s cumulative total, according to a senior official.
Speaking at the Jubail Investment Forum 2025, held from April 27 to 28, Minister of Investment Khalid Al-Falih announced that by early 2025, the Eastern Province had issued 5,456 active foreign investment licenses, supporting over 53,000 jobs with a localization rate of 36 percent.
Saudi Arabia is aiming to attract $100 billion in FDI a year by the end of this decade, as it seeks to make significant strides in diversifying its economy and reducing dependency on oil revenues in alignment with its Vision 2030 objectives.
“There are more than 600 investment opportunities available in the region, with a total value exceeding SR330 billion,” Al-Falih said, adding that the “Invest Saudi” platform provides a comprehensive overview of these opportunities to connect local and global investors, according to a post on his ministry’s X account.
FDI inflows into Saudi Arabia increased by 29.39 percent in the final quarter of 2024 compared to the preceding three months to reach SR23.29 billion, according to data from the General Authority for Statistics.
In his speech, Al-Falih said that by early 2025, 34 international companies had been granted licenses to establish their regional headquarters in the Eastern Province, as part of Saudi Arabia’s initiative to attract more firms to the Kingdom.
The licenses cover various sectors, including petrochemicals, energy, and mining, as well as real estate and manufacturing.
The minister highlighted the strategic and competitive advantages of the region, including its prime geographic location, which connects it to six neighboring countries, as well as its abundant natural resources, such as fossil and renewable energy.
He also highlighted the Ras Al-Khair Special Economic Zone, launched in 2023, which aims to support the value chain of maritime industries with a targeted investment of SR26 billion, according to the minister.
“It aims is to localize up to 50 percent of the main shipbuilding components over the next decade,” the minister said, as per the X post.
The Jubail Investment Forum aims to highlight the role of the Eastern Province, particularly the industrial city of Jubail, in supporting Saudi Arabia’s Vision 2030. It also seeks to boost the region’s investment appeal, showcasing the Kingdom’s continuous efforts to cultivate a competitive business environment and provide enticing incentives for investors.
Saudi Ports Authority to develop $79m logistics zone at Dammam port
RIYADH: Saudi Arabia’s General Ports Authority, known as Mawani, has signed a new agreement to develop a SR300 million ($79 million) logistics zone at King Abdulaziz Port in Dammam, further strengthening the Kingdom’s ambition to become a global logistics hub.
The project, launched in partnership with Alissa International Motors — a subsidiary of Abdullatif Alissa Holding Group — will cover 382,000 sq. m. The new facility will serve as a central hub for the import and re-export of vehicles and spare parts, the authority said in a statement.
This initiative aligns with the goals of Saudi Arabia’s National Strategy for Transport and Logistics, which seeks to enhance supply chain efficiency and attract foreign and domestic investment. The Dammam logistics zone is part of a broader SR10 billion investment plan to establish 20 integrated logistics hubs across the Kingdom under the authority’s supervision.
The new facility will feature a 7,000-sq.-m warehouse dedicated to spare parts storage and is designed to accommodate more than 13,000 vehicles.
“This development will strengthen the port’s competitive edge and reinforce its position as a regional logistics center by delivering high-quality logistics services,” Mawani stated.
The authority emphasized that the project would contribute to economic diversification and bolster private sector participation in the Kingdom’s growth.
Already a vital link connecting Saudi Arabia to international markets, King Abdulaziz Port offers state-of-the-art infrastructure and logistics capabilities, making it an attractive destination for global trade companies.
In a separate development, Mawani signed another contract with Sultan Logistics to establish an additional logistics zone at King Abdulaziz Port, valued at SR200 million. Covering 197,000 sq. m, the facility will include 35,000 sq. m of warehouse space, administrative offices, storage yards for dry and refrigerated containers, and a dedicated re-export area.
“These facilities will elevate the quality of logistics services offered at the port and support trade with enhanced operational efficiency,” Mawani added.
The establishment of the new zones is expected to significantly boost King Abdulaziz Port’s operational capacity and competitiveness.
In 2024, Saudi Arabia launched, developed, and inaugurated eight logistics zones and centers, backed by approximately SR2.9 billion in private sector investments. These efforts form part of the Kingdom’s wider strategy to solidify its standing as a leading global logistics powerhouse.
iMENA raises $135m in pre-IPO round led by PIF’s Sanabil Investments
RIYADH: Digital platform operator iMENA Holding has raised $135 million in a pre-initial public offering funding round led by Sanabil Investments, a unit of the Public Investment Fund, as venture capital activity in Saudi Arabia gains momentum.
The round, comprising private placements and in-kind contributions, also attracted participation from FJ Labs, entrepreneur Saygin Yalcin, and a group of investors from the Kingdom, iMENA said in a statement. The transaction remains subject to regulatory approval.
Proceeds will be used to consolidate iMENA’s stakes in three key businesses — OpenSooq, SellAnyCar, and Jeeny — while supporting vertical and geographic expansion and enhancing synergies across its portfolio, it added.
The transaction comes as the business restructures into a Saudi closed joint stock company under the name iMENA Holding, positioning it for future public market access.
It also coincides with a surge in venture capital activity in Saudi Arabia, which attracted $391 million in investments during the first quarter of 2025, a 53 percent increase from a year earlier, according to MAGNiTT.
Nasir Al-Sharif, chairman of iMENA Holding, said: “This transaction marks an important inflection point for iMENA in its journey to IPO-readiness by taking advantage of the great opportunities provided by the Kingdom’s Vision (2030) and in cooperation with the largest investment entities.”
He added: “The high growth and profitability of our businesses, in sectors and markets within which we have high conviction, provide material value creation opportunities and an exciting pathway for us to accelerate forward.”
The company’s businesses operate in key sectors including real estate, automotive, and mobility, with a footprint across Saudi Arabia, the UAE, and Jordan, as well as Oman, Kuwait, and the wider Middle East and North Africa region.
iMENA’s businesses have achieved an average annual growth rate exceeding 55 percent, with approximately 40 percent of revenues generated from Saudi Arabia and another 40 percent from the UAE, the two largest strategic markets for the group.
PIF-backed Sanabil Investments, which deploys around $3 billion annually across private investments including venture capital, growth funding, and small buyouts, said it backed iMENA for its “proven scalability and profitability.”
“Leveraging our own experience in Internet marketplaces, we understand their unique strategy and are committed to bringing our expertise to support their growth and future IPO aspirations on the Saudi Exchange,” said a spokesperson for Sanabil Investments.
Saygin Yalcin, founder and CEO of SellAnyCar, will join iMENA Holding’s board of directors and management committee to help drive strategic direction.
The new board includes Al-Sharif and Khaldoon Tabaza, co-founder and managing director of iMENA. Adey Salamin, co-founder of iMENA and CEO of OpenSooq, also joins alongside Yalcin.
Other members include Mazin Al-Dawood, CEO of Osool and Bakheet Investment; Usman Sikandar, head of Investment Banking at Al Rajhi Capital; and Marco Somalvico, vice president of M&A at e&. Sanabil Investments will also appoint a member to the board in due course.
Al Rajhi Capital acted as financial adviser on the private placement. Hossam Al-Basrawi, CEO of Al Rajhi Capital, said: “Al Rajhi Capital is proud to support iMENA’s transformation and potential IPO journey. The group’s integrated model and strategic vision make it a standout in the region’s digital landscape.”
