Most Important News

1. Trump Says US and Iran to Hold Talks on the 3rd;
2. Probability of Fed Raising Rates by 25 Basis Points in September is 73.6%;
3. Saudi Reinsurance H1 Net Profit Up 84% to SAR 162M;

At the close of 2/8/2026, the Tadawul All Shares Index(TASI.SA) increased by 1.10%, closing at 10705.87 points; the Parallel Market Capped Index (NomuC)(NOMUC.SA) increased by 0.27%, closing at 21894.65 points.

As of Friday’s close, the S&P 500 index(SPX.US) increased by 0.70%, the NASDAQ(IXIC.US) rose by 1.00%, and the Dow Jones Industrial Average(DJI.US) increased by 0.53%.

Trump Says US and Iran to Hold Talks on the 3rd

On August 2nd local time, US President Trump, when speaking about Iran, said that an agreement has already been reached regarding the Strait of Hormuz and that an agreement on denuclearization will also be reached. Trump stated that the United States will hold talks with Iran on the 3rd. Influenced by this news, oil prices fell while US stock index futures rose.

Probability of Fed Raising Rates by 25 Basis Points in September is 73.6%

According to CME "FedWatch": The probability that the Federal Reserve will keep interest rates unchanged in September is 26.4%, while the probability of a cumulative rate hike of 25 basis points is 73.6%. By October, the probability of rates remaining unchanged is 19.9%, the probability of a cumulative 25 basis point hike is 62.1%, and the probability of a cumulative 50 basis point hike is 17.9%.

Saudi Arabia Launches August “Sah” Sukuk with 4.7% Return

Saudi Arabia has opened subscriptions for its August “Sah” savings sukuk, offering a fixed annual return of 4.7%, up from 4.6% the previous month. The Shariah-compliant, one-year sukuk is denominated in Saudi riyals, with a minimum subscription of SR1,000 ($266) and a maximum of SR200,000 per person. Available to Saudi citizens aged 18 or older through approved financial platforms, the initiative aims to boost household savings as part of Vision 2030, targeting a national savings rate of 10% by 2030. This month’s sukuk window is open from Aug. 2 to Aug. 4. Moody’s recently reaffirmed Saudi Arabia’s Aa3 credit rating with a stable outlook, citing economic resilience and institutional improvements.

KSA Stocks

Makkah Construction Posts SAR 334.8M Net Profit in H1 2026

Makkah Construction and Development Co.(4100.SA) reported a net profit of SAR 334.8 million for the first half of 2026, up 13.8% year-on-year, as revenue rose 52.7% to SAR 952.3 million. Strong Hajj performance and higher retail and hospitality income drove the gains, partly offset by lower investment returns. Second quarter results were boosted by the Hajj season, leading to an 178.8% increase in quarterly revenue to SAR 700.9 million and a net profit of SAR 172.6 million.

Saudi Reinsurance Reports SAR 161.56M Net Profit in H1 2026

Saudi Reinsurance Co.(8200.SA) posted a net profit of SAR 161.6 million for the first half of 2026, up 84% year-on-year, as insurance revenues jumped 71% to SAR 1.26 billion on the back of strong business growth. Q2 net profit surged to SAR 114.8 million, driven by a non-recurring reversal of accumulated surplus and reduced financing expenses, despite a sharp fall in insurance service results.

Saudi Cable H1 Net Profit Falls 60% to SAR 26M

Saudi Cable Co.(2110.SA) reported a net profit of SAR 26.1 million for the first half of 2026, down 60% year-on-year as revenue dropped nearly 35% due to liquidity constraints and higher costs. The auditor highlighted material uncertainties about the company’s ability to continue as a going concern.

Umm Al Qura H1 Net Profit Down 34% to SAR 261M

Umm Al Qura for Development and Construction Co.(4325.SA) for Development and Construction reported a net profit of SAR 261 million for the first half of 2026, down 34% year-on-year due to lower land sales and higher financial charges after stopping the capitalization of borrowing costs. Quarterly results improved significantly on increased land sale revenues.

Saudi Ceramic H1 Net Profit Down 68% to SAR 42.7M

Saudi Ceramic Co.(2040.SA) reported net profit of SAR 42.7 million for the first half of 2026, down 68% year-on-year due to large non-recurring gains in the prior year. Sales rose 13% to SAR 760.9 million, supported by increased sales of water heaters and ceramic tiles and higher average selling prices. The company continues to focus on expanding its showroom network and improving operational efficiency.

USA Stocks

Amazon Completes Full $50 Billion Investment in OpenAI

On July 31 local time, Amazon.com, Inc.(AMZN.US) disclosed in its 10-Q quarterly report that it has completed its full $50 billion investment in OpenAI. In the first quarter of this year, Amazon invested $15 billion in OpenAI's Series C preferred shares and committed to purchase an additional $35 billion worth. In the second quarter, the company used $13.7 billion of its committed amount to purchase OpenAI’s Series C preferred shares. After the reporting period, the company invested the remaining $21.3 billion of its committed amount into OpenAI’s Series C preferred shares.

Amazon stated that if OpenAI completes an initial public offering (IPO) or another liquidity event, the issued Series C preferred shares will be converted into common shares. The company expects to be subject to a customary lock-up period after the IPO and will continue to be bound by applicable securities laws thereafter.

IBM CEO Says Quantum Computing Expected to Deliver Real Profits by 2028–2029

IBM Corp(IBM.US) CEO Arvind Krishna said on Friday that the company’s quantum computing business is expected to begin having a “measurable impact” on profits between 2028 and 2029. IBM is accelerating the commercialization of quantum computing and plans to invest over $10 billion in the next five years in related R&D, manufacturing expansion, ecosystem building, and acquisitions. The company previously announced a roadmap with the goal of launching its first large-scale fault-tolerant quantum computer by 2029.

AstraZeneca Reportedly in Merger Talks with Bristol-Myers Squibb

According to market sources, AstraZeneca PLC(AZN.US) has held merger talks with Bristol-Myers Squibb Company(BMY.US) in recent months, though a deal is not certain. The specifics of any potential transaction were not disclosed. As of last Friday, AstraZeneca had a market value of £196 billion (about $264 billion), while Bristol-Myers Squibb was valued at $133 billion.