The following is a summary of all announcements from the past month regarding investment deals, partnerships, and other commercial news between U.S. and Saudi companies.
The consumer financing portal Tabby has raised $700 million through receivables securitization from the U.S. bank J.P. Morgan Chase & Co. This represents one of the biggest asset-backed financing facility raised by a fintech company in the Middle East and North Africa.
J.P. Morgan Chase & Co. is a member of the Business Council.
Northern Trust Corp (NASDAQ:NTRS)., a global financial services firm with $1.3 trillion in assets under management, has announced the establishment of its Middle East headquarters in Riyadh. The firm’s decision aligns with Saudi Arabia’s impending regulatory change, which mandates international companies to have regional bases within the Kingdom by January 2024 to partake in government contracts.
KPMG, a leading provider of audit, tax, and advisory services in Saudi Arabia, and global software giant Microsoft launched the Center for Emerging Technologies (CET) during a gathering of industry-leading futurists and technology experts held in Riyadh on December 18, 2023. The launch of the CET marks an expansion of KPMG and Microsoft’s global alliance of almost twenty years into Saudi Arabia.
KPMG is a member of the Business Council.
MDLBEAST, the leading Saudi music entertainment company, and Snapchat announced a strategic partnership to elevate the attendee experience at the MDLBEAST Soundstorm Festival, which took place in Riyadh from December 14 to December 16, 2023. Snapchat introduced Augmented Reality (AR) technologies to the festival, redefining how attendees engaged with the event and each other.
DEFENSE & SECURITY
The U.S. State Department approved the possible sale of RE-3A Tactical Airborne Surveillance System Aircraft Modernization and related equipment to Saudi Arabia for an estimated $582 million. The principal contractor will be Texas-based L3Harris Technologies, Inc.
L3Harris Technologies is a member of the Business Council.
Tactical Communications Group (TCG) LLC, based in Tewksbury, Massachusetts, was awarded a $9,990,608 contract for a ground support system (GSS). TCG will be responsible for sustainment and maintenance of the previously acquired GSS to include the purchase of parts and functional components to repair or expand the functional use of the GSS.
CONSTRUCTION & REAL ESTATE
Red Sea International Co. (Red Sea) signed on December 19, 2023 a four-year contract worth SAR32.23 million ($8.59 million) (VAT-exclusive) with Baker Hughes Co., to design, manufacture, supply, and operate a portable complex of prefabricated buildings to support the company’s operations in the Eastern Region.
Saudi Arabia’s Space Agency and Axiom Space signed an agreement to develop Saudi talent in the field of space. Axiom Space, a U.S.-based company specializing in developing human spaceflight technologies, will provide training and on-the-job opportunities, in addition to exchanging knowledge, skills, and expertise in the fields of human spaceflight.
FOOD & AGRICULTURE
More than 25 local and international agreements were signed at the recent International Dates Conference and Exhibition in Riyadh, including an agreement signed between Khalas Dates Packaging Company and U.S.-based Galaxy Foods Company worth SAR7.5 million ($2 million).
The Saudi Ministry of Economy and Planning has signed a three-year research agreement with the University of Chicago’s Division of Social Sciences to conduct economic research contributing to the development of social and economic policies. The agreement encompasses the research and study of various policy areas, including macroeconomics, international organizations, social development, as well as labor market dynamics.
TOURISM & ENTERTAINMENT
Hollywood production company Stampede Ventures has signed a deal to shoot 10 movies at Film AlUla’s recently opened state-of-the-art studio complex. In a major boost for Saudi Arabia’s filmmaking initiatives, the deal is designed to develop its growing production industry – training up local talent in the process – while utilizing the expertise of Greg Silverman, a producer behind some of Hollywood’s biggest recent films.