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FIVE WEEKLY · NOV 1–5
Good morning. For years, the Saudi money story ran one way: out. The Kingdom wrote cheques for stakes in Uber, football clubs and Silicon Valley funds.
This week, the traffic ran in both directions.
Aramco sold a foreign asset and booked a $7 billion gain. PIF borrowed $3 billion backed by Italy. A German company bought a Saudi listed firm outright to take it off the market, a first for the Kingdom. And a Gulf buyout firm that has spent the year buying into Saudi finance joined a bid for Wendy’s.
Last month, Indonesia’s wealth fund Danantara paid about $533 million for a hotel and land near Makkah’s Grand Mosque. It was the first time a foreign state had bought property in the holy city.
The Kingdom is becoming a place foreigners want to own a piece of, not just sell to.
Here’s the week in five.
1
Aramco beats forecasts, but the peak may be behind it
Aramco’s adjusted third-quarter profit came in at 117 billion Riyal ($31 billion), above forecasts. High oil prices more than made up for lower output.
Reported profit jumped 41%. Most of that jump came from a one-off gain, a $7 billion lift from selling its stake in a Malaysian refinery.
Underneath, the quarter was softer. Adjusted profit fell about 7% from the second quarter, and Aramco’s average crude price slipped to $95.20 a barrel from $108.10.
Free cash flow of about $28 billion covered the dividend this time, after a shortfall in the first half.
2
A German firm buys a Saudi company outright to take it off the market, a first for the Kingdom
Knauf, one of the world’s biggest building-materials makers, will own 99.3% of Jeddah-based United Mining Industries once the deal settles on Nov. 18. It now plans to delist the company.
Knauf has paid about 800 million Riyal ($213 million) for the whole company: $135 million in May for its first 63%, and about $77 million this week for the shares investors sold into its offer.
Analysts say no foreign strategic buyer has bought out a Saudi listed company’s minority shareholders in order to delist it before.
Why it matters: with World Cup stadiums, Expo venues and hundreds of thousands of homes to build, global suppliers want their own factories in the Kingdom rather than import or work through partners.
But each company taken private shrinks a market where new listings have already slowed.
Also this week:
New rules make banks underwriting Saudi IPOs liable for every unsold share. Read it here
Saudi stocks rose 1.75% this week, ending Thursday at 10,095 as insurers led the way. Read MOOVS
3
A Gulf buyout firm busy in Saudi finance joins a $1.4 billion bid for Wendy’s
Abu Dhabi-based BlueFive Capital is one of four investors offering about 5.3 billion Riyal ($1.4 billion) to take Wendy’s private. The others are Nelson Peltz’s Trian, Flynn Group, the chain’s largest franchisee, and Sixth Street.
The offer is $7.35 a share. Wendy’s board has a committee reviewing it.
The Saudi footprint: BlueFive has been one of the busiest foreign buyers in the Kingdom this year. It agreed to rescue Riyadh-listed Gulf General Cooperative Insurance with $34 million for a 42% stake, and it bought a large stake in Jeddah’s Sidra Capital, now BlueFiveSidra.
It also backed the purchase of Porsche’s stakes in Bugatti Rimac.
Why it matters: Gulf money isn’t just funding other people’s buyouts anymore. It now sits at the table, from Saudi insurers to Bugatti and US fast food.
Got a story, a tip or a correction? Just hit reply. We read everything.
4
The state has nearly used up this year’s deficit, and households pick up part of the bill
The deficit reached 244 billion Riyal ($65 billion) in nine months. The forecast for the whole year, raised only last month, is $65.3 billion, so it’s almost used up with a quarter to go.
Oil income fell 37% from its spring peak, while war-related spending kept rising.
Part of the gap comes home on Jan. 1. Power costs about 17% more per unit, and water bills nearly triple. Government employees, retirees and families on social security get 500 Riyal a month to soften the hit.
The war bill elsewhere:
PIF borrowed $3 billion in loans backed by Italy. Read it here
Budget airline Flynas saw its profit sink 78% as fuel costs rose. Read it here
The Asian Cup moves to late 2027, joining FII and Cityscape on the list of postponed events. Read it here
5
Aramco buys into Humain, and the AI firm’s listing story gets stronger
Aramco bought 49% of PIF’s AI company Humain, putting in about 9.9 billion Riyal ($2.6 billion) in cash plus its own AI and computing assets. PIF keeps 51%.
Counting its Aramco stake, PIF’s effective share of Humain is closer to 59%. Aramco also becomes one of Humain’s biggest customers, which gives Humain a stronger pitch for listing in Riyadh and New York.
Also this week:
Humain took in Aramco’s venture CNTXT to sell AI inside companies. Read it here
With Democrats taking Congress, Humain’s access to US chips faces a test. Read it here
What We’re Watching
Nov 7: WWE Crown Jewel in Riyadh, a test of whether big nights still draw crowds while other events move.
Nov 8–11: Hajj Conference and Exhibition in Jeddah.
Around Nov 12: the deadline for individuals who sold property between 2018 and 2020 to claim back the VAT they paid. Read it here
Nov 18: Knauf’s United Mining deal settles. Next come a mandatory offer for the last 0.7% and a delisting vote.
Wendy’s: any word from the board’s committee on the bid.
On the radar: Aramco pays its dividend on Nov. 25, and OPEC+ meets on Nov. 29.
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