Video game industry helping to reshape Saudi economy, experts say

Saudi Arabia’s target to become a global video game hub by the end of this decade is an achievable goal thanks to the Kingdom’s National Gaming Strategy. (AFP)
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Updated 12 January 2025
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Video game industry helping to reshape Saudi economy, experts say

  • Saudi Arabia has secured the second-highest global ranking for average daily time spent playing video games

RIYADH: The booming video game industry in Saudi Arabia is expected to play a crucial role in materializing the economic diversification goals of the Kingdom by the end of this decade, according to experts. 

Speaking to Arab News, Povilas Joniskis, managing director and partner at Boston Consulting Group, said that the gaming industry is steadily evolving in Saudi Arabia, with the Kingdom’s young population considering it an effective social communication tool. 

The comments from Joniskis support the Kingdom’s National Gaming and Esports Strategy, which aims to ensure the sector creates jobs and contributes $13 billion to the country’s gross domestic product.

“Vision 2030’s economic diversification aims to unlock potential beyond oil and gas with a broad array of growing industry sectors. The gaming industry is rapidly emerging as one of them. The sector shows strong long-term potential, currently positioned as one of the largest entertainment verticals globally, second only to video and TV streaming services,” said Joniskis. 

He added: “Saudi Arabia’s gaming market benefits from both demand and supply advantages. On the demand side, a young, vibrant population — predominantly under 35 — views gaming not just as entertainment but as a key social interaction platform.”

In July, a report released by US-based online gaming platform Mobile Premier League revealed that Saudi Arabia has secured the second-highest global ranking for average daily time spent playing video games. 

Joniskis added that the video gaming industry in Saudi Arabia will create a multiplier effect across the broader economy, as it will attract global developers to come and invest in the Kingdom’s gaming sector, as well as create opportunities for local talent. 

Federico Pienovi, chief business officer and CEO for Asia Pacific and Middle East and North Africa at Globant, echoed similar views and said the video game sector is creating new jobs in technology and creative fields while broadening the Kingdom’s entertainment landscape beyond traditional offerings.

“The growth of the video game industry is being integrated into major development projects like NEOM and Qiddiya, which aim to establish entertainment and cultural hubs in the region. Globant’s Games Studio is one of the companies working in this growing market, collaborating with Saudi giga-projects through their expertise in AAA game development and immersive experiences,” Pienovi told Arab News. 

In November, Globant inked a deal with Qiddiya Investment Co. — fully owned by the Public Investment Fund — to turn Qiddiya City into an immersive hub for entertainment, sports, and culture. 

Under the deal, Globant will work with QIC to develop the “PLAY LIFE Connected Experience,” a digital ecosystem designed to transform how visitors and residents interact with the destination’s wide range of offerings. 

Pienovi added his firm is investing in gaming infrastructure and talent development, fostering both international partnerships and local initiatives as part of its strategy to become a key player in the global gaming market, as outlined in Vision 2030. 

Soham Thacker, founder and CEO of esports gaming platform Gamerji, said that has been making long strides in promoting gaming and esports by conducting events like the Esports World Cup, Next World Conference and Gamers8. 

“Saudi Arabia has successfully put itself as the epicenter of the video game industry. These events along with the upcoming Esports Olympics to be held in the region will boost the tourism as well as economic development of the country,” said Thacker.

Factors driving Saudi Arabia’s video game industry

Joniskis said that Saudi Arabia’s predominantly young population, with a majority under 35 years old, has embraced gaming as a primary form of entertainment and socializing, and it is driving the growth of the industry in the Kingdom. 

The BCG official added that high disposable income among Saudi citizens also plays a crucial role, enabling access to premium gaming devices and extensive leisure time for entertainment pursuits. 

“This purchasing power translates directly into enhanced gaming experiences through top-tier hardware,” said Joniskis. 

He added: “Equally significant is the Kingdom’s robust technical infrastructure. Despite Saudi Arabia’s vast territory, the country maintains impressive network performance with CST reports showing low latency rates under 40ms across major titles including League of Legends, ML:BB, Call of Duty on both PC and mobile platforms, and PUBG Mobile.” 

Pienovi said that high smartphone penetration rates and widespread access to high-speed internet have made mobile and online gaming easily accessible across the Kingdom. 

“This infrastructure has helped establish gaming as a mainstream activity, supported by growing interest in esports tournaments, social media gaming communities, and live streaming platforms. 

The cultural shift toward digital entertainment has been complemented by Vision 2030’s focus on expanding the entertainment sector,” said Pienovi. 

Can Saudi Arabia become a global video game hub? 

According to experts who spoke with Arab News, Saudi Arabia’s target to become a global video game hub by the end of this decade is an achievable goal thanks to the Kingdom’s National Gaming Strategy. 

“Saudi Arabia’s ambition to become a global gaming hub, while bold, appears achievable through its unprecedented National Gaming Strategy. This coordinated approach ensures orchestrated delivery across various stakeholders and entities, setting a new standard for industry development,” said Joniskis. 

The BCG official added that the Kingdom has aligned key market elements: strong local demand coupled with strategic initiatives, which include targeted incentive packages for global companies and talent, strategic investments through PIF and Savvy, and major infrastructure developments like Qiddiya and NEOM. 

Thacker also underscored the pivotal role being played by PIF to turn the Kingdom into a global gaming destination by the end of this decade. 

FAST FACT

Saudi Arabia’s predominantly young population, with a majority under 35 years old, has embraced gaming as a primary form of entertainment and socializing, and it is driving the growth of the industry in the Kingdom.

“Most of the gaming companies have the PIF as either their partner or an investor. Hence, it is very clear that the country aims to be the hub of the gaming industry and with the millions of dollars spent on events and tournaments in the region, Saudi Arabia is definitely poised to be the hub of gaming in the next few years,” said the Gamerji founder. 

In January, Saudi Arabia’s sovereign wealth fund strengthened its investment in the video gaming sector by increasing its stake in Japan-based Koei Techmo from 5.56 percent to 6.6 percent. 

Koei Tecmo is known for developing several popular video games including Nobunaga’s Ambition, Dynasty Warriors, Atelier, and Ninja Gaiden. 

In 2023, PIF also raised its stake in Nintendo to 8.26 percent, making it the largest outside investor in the Japanese gaming company. 

Nintendo is one of the most prominent names in the global video games industry, with a portfolio of titles including Pokemon, The Legend of Zelda, and Mario.

The role of Savvy Games

It was in September 2022 that Saudi Arabia’s Crown Prince Mohammed bin Salman launched the Savvy Games Group’s strategy, with an investment budget of $37.7 billion. 

Savvy is currently accelerating talent in the Kingdom and catalyzing Saudi Arabia’s unique geographical location to build the dominant global hub for games and esports.

“Savvy Games, backed by the PIF, represents a significant step in developing Saudi Arabia’s gaming industry. With $38 billion allocated for investments, the initiative aims to attract international developers and publishers to establish local operations,” said Pienovi. 

He added: “This substantial funding could accelerate industry growth by enabling partnerships between international gaming companies and local institutions. The investment strategy focuses on building technical capabilities, fostering innovation, and developing gaming infrastructure that aligns with global
industry standards.” 

Echoing similar views, Joniskis told Arab News that Savvy Games has rapidly ascended to become one of the top 10 gaming companies globally by revenue, marking Saudi Arabia’s emergence in the global gaming industry. 

The BCG official added that Savvy is strategically localizing game development activities within Saudi Arabia, creating opportunities for domestic talent. 

“Through strategic acquisitions — ESL, FaceIt, and Vindex — Savvy has established itself as a global esports leader. Partnerships with industry leaders like Niantic and XSolla are strengthening the regional ecosystem through talent academies and incubators, supporting global companies’ regional expansion,” said Joniskis.

Areas of improvement

Joniskis also highlighted some of the areas that could be strengthened to accelerate the growth of Saudi Arabia as a global gaming destination. 

“The Kingdom can strengthen its position by aligning game production incentives with established hubs like Montreal, Austin, and others, enhancing cost competitiveness to attract global developers and investment,” said Joniskis.

He added: “Education represents another crucial focus area. Expanding beyond traditional degree programs to include vocational training would create more accessible pathways for existing talent to enter the gaming industry. This comprehensive approach to talent development supports both immediate and long-term industry needs.” 

For his part, Pienovi said that Saudi Arabia’s gaming presence requires a multi-faceted approach focusing on sustainable growth and innovation. 

The Globant official also underscored the vitality of cultivating local talent through specialized education programs and strategic partnerships with global technology leaders. 

“Innovation zones and dedicated gaming districts could serve as catalysts for industry growth, providing spaces where technology companies, startups, and creative talent can collaborate. This infrastructure development needs to be complemented by investment in competitive gaming facilities and events that can attract international attention,” added Pienovi.


Orange Business to offer subscription-based Smart City services in Saudi Arabia

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Orange Business to offer subscription-based Smart City services in Saudi Arabia

RIYADH: Digital system integrator Orange Business is set to roll out “Smart City-as-a-Service” in Saudi Arabia, aiming to drive significant financial and time savings, a senior company official said.

Speaking to Arab News on the sidelines of LEAP 2025 in Riyadh, Mohammed Al-Jeraisy, managing director for Saudi Arabia and Africa, said the service will develop Smart City applications for cloud deployment, capitalizing on the sector’s rapid growth.

The Saudi Smart Cities market is projected to expand considerably, with revenue expected to hit $560 million by 2025, according to data firm Statista. Globally, the US is forecasted to generate the highest revenue in the segment at $27.06 billion in the same year.

“This is something that is known — it’s a challenge. When you implement a Smart City solution, deployment is costly and time-consuming. These projects typically take years to develop and build. What a Smart City-as-a-Service solution does today is help customers adopt the solution quickly, saving both time and costs,” Al-Jeraisy said.

He added that the new model could cut costs by 40 to 60 percent and reduce adoption time by up to 80 percent.

Al-Jeraisy also highlighted the flexibility of the subscription-based model, which allows customers to choose specific Smart City services as needed.

“When it comes to Smart City services, there are many — plenty of them. You can think of major services like a city’s command and control center, which is essential. You also need solutions for the environment and applications for traffic management. Today, you can start using these services immediately and access them through the platform,” Al-Jeraisy said. 

The model enables customers to opt in and out of services as required. “You can subscribe to the service today, use it for as long as you need, and stop whenever you decide. You can then go for another service. I think that’s one of the key benefits we offer to customers,” he added.

Despite the name, Smart City-as-a-Service is not limited to cities, Al-Jeraisy said. “It can be used for campuses, stadiums, events, and even universities because what truly matters are the applications and use cases we build on the platform,” Al-Jeraisy said, noting that both small and large cities, as well as airports and schools, can benefit from these services.

Saudi Arabia is emerging as a leader in Smart City and AI adoption, he noted, adding that the global adoption rate for Smart City-as-a-Service currently stands at 33 percent and is expected to rise as more customers recognize its benefits.

Orange Business has been involved in large-scale Smart City projects in Saudi Arabia and the Middle East for more than a decade. It is engaged in major regional developments, including projects in Egypt and the Arabian Gulf states, and contributes to the SMART Africa initiative to accelerate sustainable socio-economic development across the continent.

The company signed a deal in September 2023 with the King Abdullah Financial District Development & Management Company to design, build, and operate a Smart City platform integrating existing digital technologies at Saudi Arabia’s prime business district, KAFD. 

The platform leverages AI and data analytics while providing Digital Master Systems Integration services. Orange Business is also orchestrating a partner ecosystem to drive new use cases and seamless integration.


Saudi crowdfunding funding hits $800m a year: top official 

Updated 51 min 11 sec ago
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Saudi crowdfunding funding hits $800m a year: top official 

RIYADH: Crowdfunding has emerged as one of the fastest-growing financial channels in Saudi Arabia, with platforms doubling in size annually and surpassing SR3 billion ($800 million) in capital last year, according to a top official. 

During a panel discussion at the Kingdom’s premier tech conference, LEAP 2025, Mohammed El-Kuwaiz, chairman of the Capital Market Authority, stated the financing landscape has also expanded significantly, moving beyond traditional bank loans and initial public offerings. 

“Whether we look at debt crowdfunding or equity crowdfunding, these platforms have actually been doubling in size every year for the past three years,” he said, highlighting their growing role in the country’s evolving financial ecosystem. 

Alongside crowdfunding, Saudi Arabia has introduced a range of new financing options to support businesses at different stages of growth. 

“We used to think of financing as one of two routes, either bank financing or IPOs. Today, that menu includes a plethora of investment and financing options,” El-Kuwaiz said. He highlighted that the country now has eight distinct investment and financing stages, with half of these introduced in recent years. 

The rapid rise of crowdfunding is part of a broader transformation in the Kingdom’s capital markets, which have expanded significantly since the Vision 2030 economic diversification plan was unveiled in 2016.

“The story of capital markets and how they serve entrepreneurs is very much running in parallel with the growth that we’ve been seeing in LEAP. We have moved from being the 25th or 26th largest market in the world to now being one of the top 10 largest markets in the world,” he said. 

The regulatory environment has also evolved to support business formation, with changes to the country’s corporations law allowing for multiple classes of shares and various investor rights. 

“Most startups and most founders require a degree of flexibility that our former corporations’ law did not allow them to serve,” El-Kuwaiz said, citing features such as drag-along and tag-along rights that were previously unavailable. 

Exit strategies for startups have expanded as well, with IPO activity accelerating and mergers and acquisition regulations being streamlined. 

“We moved from doing something like 10 listings a year to, in the last couple of years, doing in excess of 40 IPOs a year, and more than 50 percent of these listings are actually small and medium businesses. Many of them are actually venture-backed,” El-Kuwaiz said. 

However, mergers and acquisitions remain the most common exit strategy, with regulatory updates in 2017 and 2018 fueling a surge in M&A transactions. 

“As a result of that first rewrite, we have actually seen in the last five or six years more M&A activity than since we established the CMA 15 years ago,” he added. 

Saudi Arabia’s capital market transformation has also made it an increasingly attractive destination for international entrepreneurs. 

“We have seen more and more from outside of the region seriously considering relocating to Saudi Arabia because of the market, because of these regulatory developments, and this potential to exit,” the CMA said.

Debt markets have also played a crucial role in financing businesses, surpassing equity markets in capital raised since 2021. 

El-Kuwaiz added that since then, “our debt capital market has been raising more capital for businesses and governments than the equity capital market, both in primary and secondary.” 

He also underlined that Saudi Arabia is developing its private credit sector alongside its debt market, with expectations that the latter will grow faster in the near term due to its liquidity and traceability advantages. 

El-Kuwaiz emphasized that the Kingdom’s efforts to enhance business formation, financing, and exit opportunities are creating a model that extends beyond national borders. 

“When we first started, we thought that solving the entrepreneurial problem was a Saudi-specific problem,” he said, adding: “But as we have evolved, we recognize that if we solve this problem, we can actually solve this problem for all entrepreneurs — whether in Saudi, the Gulf region, or the broader Middle East.”


Pakistan says IMF ‘on board’ over $7 billion bailout targets

Updated 11 February 2025
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Pakistan says IMF ‘on board’ over $7 billion bailout targets

  • The statement comes days before the arrival of an IMF team for the first review of the facility
  • IMF bailouts are critical for Pakistan which narrowly avoided a sovereign default in June 2023

KARACHI: Pakistan has taken the International Monetary Fund (IMF) on board over its targets under a $7 billion loan program it secured in September, a finance ministry official said on Tuesday, days before the arrival of an IMF mission in the South Asian nation for the program’s first review.
A successful review, expected later this month or in early March, would see the Washington-based lender release around $1 billion tranche to cash-strapped Pakistan, which seeks to boost its foreign exchange reserves to achieve the IMF’s threshold of three months import cover.
IMF bailouts are critical for Pakistan which narrowly avoided a sovereign default in June 2023 by clinching a last-gasp, $3 billion IMF loan and is currently navigating a tricky path to economic recovery.
“We are on track,” Khurram Schehzad, an adviser at the Pakistani finance ministry, told Arab News. “The IMF is on board on the targets and benchmarks that we have achieved as well as only a few we are chasing. We are fully prepared to go into the review process.”
The statement is expected to allay investor concerns about Pakistan meeting the IMF’s conditions to reform its economy by cutting on energy subsidies, broadening the tax net to agriculture, real estate and retail sectors, and privatizing loss-making, state-owned enterprises like the Pakistan International Airlines (PIA).
“We are working on the taxation side by bringing in the under-taxed and non-taxed sectors into the net by broadening, deepening and widening it,” Schehzad said.
Provincial governments in Pakistan’s Sindh, Punjab, Khyber Pakhtunkhwa and Balochistan provinces have recently enacted laws to impose taxes on farm incomes, fulfilling one of the IMF’s requirements.
Since averting an imminent default on its external debt in 2023, Pakistan is now keeping its current account in check primarily through containing imports. The country’s exports rose 10% to $19.6 billion in the last seven months till January, while it is keeping tabs on imports that increased by 7% to $33 billion, according to Pakistan Bureau of Statistics.
“Our balance of payment position is going to be manageable this year,” said Schehzad, who believes population growth and climate change are the two biggest challenges facing Pakistan’s economy.
The country achieved a current account surplus of $1.2 billion from July 2024 till December 2024 and is expecting to receive a record $35 billion worker remittances by June 2025. It expects IT exports to increase to $4 billion this year.
As jailed former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party carries out countrywide protests to demand the return of its “stolen” mandate in the last general election, PM Shehbaz Sharif’s government is trying to shore up the fragile economy, which Schehzad said is expected to expand in the range of 3% to 3.5% this financial year ending in June.
Pakistan’s central bank has slashed the interest rate by a cumulative 1,000 basis points to 12% since June to spur economic growth, thanks to the easing inflation that rose 2.41% last month, the lowest in more than nine years.
“We are keeping an eye on the prices of all essential items that should be reflective of the prevailing inflation numbers, so to close the gap between numbers and on-ground prices,” the finance adviser said.
The pace of price hike is expected to ease further in the months ahead, which will create more room for the central bank to decrease the rate of bank borrowing.
“We are giving priority to long-term sustainability of the economy over short term reliefs,” Schehzad said.
The Pakistani government is striving to turn the hard-earned economic stability with fiscal and external consolidation into a growth that is export-led and driven by productive and efficient investments primarily by the private sector, according to the finance adviser.
The government is working to break the so-called boom-and-bust cycle Pakistan’s economy has been “suffering from in the past many years now” and targets 6% growth and beyond by 2029, he added.


Saudi Arabia unveils $1.78bn investments to advance AI, digital talent

Updated 11 February 2025
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Saudi Arabia unveils $1.78bn investments to advance AI, digital talent

RIYADH: Investments totaling $1.78 billion marked the third day of the LEAP 2025 Tech Conference in Riyadh, aimed at accelerating artificial intelligence and digital talent development.

Industry leaders, investors, and policymakers have launched several initiatives to drive digital transformation in Saudi Arabia, aligning with Vision 2030 to position the Kingdom at the forefront of the digital age.

Among these, Equinix, a global leader in digital infrastructure, announced a $1 billion investment in data centers nationwide, starting with a 100-megawatt facility to serve hyperscale and retail customers in the region.

“Equinix has been at the center of technological advancements for 26 years. Our global interconnection hubs allow data to move seamlessly worldwide, and now, we are expanding further into Saudi Arabia,” said Judith Gardner, vice president of growth and emerging markets at Equinix.

Saudi Arabia’s Communications, Space, and Technology Commission has launched Cohort 3 of its innovative regulatory sandbox program, aimed at empowering innovators and startups to test new technologies. 

Abdulaziz Al-Batli, general manager of technology enablement at CST, emphasized the commission’s approach, which balances ample space for innovation with necessary regulatory oversight.

To further solidify Saudi Arabia’s position as a regional technology and innovation hub, DAMAC’s EDGNEX unveiled plans to expand its investments in data centers for cloud computing and AI across the Kingdom. 

The company aims to develop a 500-megawatt capacity by 2030, aligning with the country’s broader digital transformation goals. 

This initiative complements the wave of investments announced at LEAP 2025, reinforcing Saudi Arabia’s commitment to enhancing its digital infrastructure and fostering an AI-driven economy.

Strengthening AI, startups, and emerging technologies

Several investment funds have pledged a total of $695 million to support startups specializing in AI, gaming, and innovative tech solutions, including:

  • JOA Capital and Buidlnow: $80 million AI-powered infrastructure fund.
  • Ula Capital: $75 million data-driven fund for AI and deep tech startups.
  • Sanabil Accelerator by Orbit: $60 million fund for over 200 early-stage tech startups.
  • Sharaka Financial: $30 million fund for startups in the MENA region.
  • MERIT and BRKZ: Secured funding rounds totaling $28 million and $22 million, respectively.
  • Torod: The largest Series A funding round for logistics tech in MENA, led by WAED.

These investments bring the Kingdom’s total venture capital commitments announced at LEAP to nearly $700 million, with close to $100 million dedicated to startup investments.

AI innovations and talent development

WhiteHelmet introduced ASIF, the first AI-powered construction agent designed to revolutionize the building industry by optimizing speed and efficiency.

Additionally, Microsoft announced the establishment of the Kingdom’s first Data Center Academy in partnership with the National IT Academy.

“This initiative aligns with Microsoft’s mission to provide cutting-edge digital skills and training, ensuring Saudi Arabia’s workforce is ready for the AI-driven future,” said Zainab Al-Amein, vice president of national digital transformation at Microsoft.

Similarly, Huawei, in collaboration with the Ministry of Communications and Information Technology, unveiled plans for a Future Skills Center to enhance AI expertise in the region. 

Accenture and Atomcamp also launched the first AI Academy in Saudi Arabia, aiming to train 20,000 Saudi professionals by 2030.

Expanding space and digital economy

CST Gov.  Mohammed Al-Tamimi, highlighted key themes shaping LEAP 2025, including AI, cloud computing, quantum technologies, and the intersection of space and the digital economy.

“We are witnessing the second phase of our space track, with over 20 events dedicated to discussions on space competition and the connection between space and the digital economy,” said Al-Tamimi.

Gaming industry

The gaming industry also saw significant investments, with HGM announcing a $300 million commitment to bring top gaming titles to Riyadh. The Kingdom’s first major military shooter game is set to launch in October, developed by a team with experience in franchises like Call of Duty.

With these major announcements, LEAP 2025 continues to reinforce Saudi Arabia’s position as a global technology and innovation hub. The ongoing event is underscoring the country’s efforts to drive digital transformation, AI advancements, and economic diversification in line with Vision 2030.


Closing Bell: Saudi main index edges down to close at 12,424

Updated 11 February 2025
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Closing Bell: Saudi main index edges down to close at 12,424

RIYADH: Saudi Arabia’s Tadawul All Share Index ended Tuesday’s trading in red, as it shed 47.40 points or 0.38 percent to close at 12,424.32. 

The total trading turnover of the benchmark index was SR6.36 billion ($1.70 billion), with 69 stocks advancing and 155 retracting. 

Nomu, Saudi Arabia’s parallel market, gained 143.56 points to close at 31,570.32 while the MSCI Tadawul Index edged down by 0.46 percent to 1,543.86. 

The best-performing stock on the main market was Raoom Trading Co. The firm’s share price soared by 5.59 percent to SR189.

The share price of Fawaz Abdulaziz Alhokair Co. increased by 5.38 percent to SR15.68. 

Zamil Industrial Investment Co. also saw its stock price climbing by 4.91 percent to SR36.35. 

Conversely, Tihama Advertising and Public Relations Co.’s share price declined by 3.4 percent to SR16.50. 

On the parallel market, Mohammed Hadi Al Rasheed and Partners Co. was the top gainer, with its share price increasing by 6.98 percent to SR138.

On the announcements front, Saudi Electricity Co. said that it commenced issuing a dollar-denominated, senior secured sukuk on Feb.11 with the offering set to run until Feb.12. 

SEC, in a statement to Tadawul, said that the sukuk has a minimum subscription level of $200,000, while the final issuance size will be determined based on market conditions. 

The company added that the offering is being conducted through a special-purpose vehicle and is available to qualified investors within the Kingdom and abroad. 

SEC’s share price dropped by 0.46 percent to SR17.22. 

Hedab Alkhaleej Trading Co. has set the price range for its initial public offering on Nomu at SR48 to SR52 per share, the firm’s financial adviser and lead manager Yaqeen Capital said. 

According to a Tadawul statement, the offering comprised of 800,000 ordinary shares representing 10.67 percent of the issued share capital of the company after the IPO. 

The book-building period for qualified investors will run on Feb. 16-20.