Saudi Arabia’s Derayah plans IPO on Tadawul, offering 20% of share capital

A picture shows the sign showing the name of the Saudi Stock Exchange (Tadawul) outside the exchange building in Riyadh. File/AFP
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Updated 24 January 2025
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Saudi Arabia’s Derayah plans IPO on Tadawul, offering 20% of share capital

  • Proceeds from the offering will be distributed to current shareholders in proportion to their existing holdings
  • IPO will initially target institutional investors, with up to 10% of the offered shares potentially being reallocated to individual investors

RIYADH: Saudi Arabia’s local digital bank Derayah Financial Co. plans to go public on the Tadawul’s main market by offering 20 percent of its total share capital.

The Public Investment Fund-backed company aims to offer 49,947,039 ordinary stocks, following the Capital Market Authority’s approval on Dec. 25 for the registration and public offering of its shares through a partial sale by existing shareholders.

The move aligns with the Kingdom’s broader efforts to develop its fintech sector, which has seen substantial growth in recent years.

The Saudi Central Bank, also known as SAMA, has been working to boost the fintech ecosystem, introducing regulations and granting licenses to new fintech companies to diversify the financial landscape.

As part of the Financial Sector Development Program under Vision 2030, the Kingdom aims to increase the contribution of fintech firms to the economy, enhance financial inclusion, and encourage innovation in digital financial services.

Regulatory reforms, including sandbox environments and open banking frameworks, have made the country an attractive destination for fintech innovation and cross-border collaborations.

As of June 30, Derayah’s assets under management totaled SR15.1 billion ($4.03 billion). The company ranks among the leading independent brokers in brokerage revenues and holds the third-largest market share in the Saudi digital brokerage sector, capturing around 14 percent of the market.

The Kingdom has been witnessing an increasing number of initial public offerings on the Saudi stock exchange, driven by investor interest and the government’s push to diversify the economy.

The announcement said the proceeds from the offering will be distributed to current shareholders in proportion to their existing holdings, with the company receiving no portion of the funds.

This comes after the company appointed HSBC Saudi Arabia as the sole financial adviser, bookrunner, global coordinator, lead manager and underwriter.

Once the offering process is completed and formalities with the CMA and Tadawul are finalized, the shares will be listed and traded on the Saudi Exchange.

The offering will initially target institutional investors, with up to 10 percent of the offered shares potentially being reallocated to individual investors based on demand.

“This IPO goes beyond being a milestone for Derayah; it stands as a testament to our steadfast dedication to democratizing investment and providing all types of investors with innovative, accessible, and comprehensive wealth-building solutions,” said Taha Al-Kuwaiz, co-founder and chairman of Derayah.

Derayah reported a strong financial performance in 2023, with an operating income of SR624 million and a net profit of SR330 million, reflecting a net profit margin of around 53 percent.

The company sustained its growth momentum into the first half of 2024, with operating income surging by 63 percent year-on-year, while net profit jumped by 70 percent year-on-year to reach SR228 million.

Since 2016, Derayah has witnessed a 12-fold increase in its customer account base, reflecting its expanding market presence and growing investor confidence.

“In recent years, we have achieved exponential growth by capitalizing on favorable local, regional, and global capital markets,” Mohammed Al-Shammasi, the CEO of Derayah, said.

The company’s IPO will be available to both individual and institutional investors, including institutional investors outside the US.

The final offer price will be determined upon completion of the book-building process, which is expected to gauge investor interest and assess market demand for the shares.

Derayah played a pivotal role in enhancing the accessibility of financial services to a wide range of clients.

The company’s investment solutions and digital-first approach have positioned it as a key player in the Kingdom’s rapidly evolving financial landscape.

The listing is expected to enhance liquidity, improve corporate governance, and further diversify the Saudi capital market.


Saudi Arabia’s Red Sea dolphins signal a thriving marine environment

Updated 30 January 2026
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Saudi Arabia’s Red Sea dolphins signal a thriving marine environment

  • Long-term monitoring aims to turn observations into data for conservation

JEDDAH: The waters of the Red Sea along Saudi Arabia’s coast have become a vibrant natural stage, with pods of dolphins appearing near shorelines and along shipping lanes. These captivating sightings are emerging as a positive indicator for the health of the Red Sea’s marine ecosystem.

Saudi Arabia’s Red Sea waters are a thriving sanctuary for marine life, hosting 12 species of dolphins and small whales, according to the National Center for Wildlife.

Nearshore and reef-adjacent waters are frequently visited by the Indo-Pacific bottlenose dolphin (Tursiops aduncus) and the spinner dolphin (Stenella longirostris). Common bottlenose dolphins (Tursiops truncatus) are also present, but tend to favor deeper offshore waters.

Beyond these familiar faces, the Red Sea is home to a wider array of cetaceans that are less often documented. These include the Indo-Pacific humpback dolphin (Sousa plumbea), which inhabits shallow coastal areas, the pantropical spotted dolphin (Stenella attenuata), Risso’s dolphin (Grampus griseus), and larger relatives such as the false killer whale (Pseudorca crassidens), which may be more common than sightings suggest. Rare visitors like killer whales (Orcinus orca) and offshore species such as the rough-toothed dolphin (Steno bredanensis), striped dolphin (Stenella coeruleoalba), long-beaked common dolphin (Delphinus capensis), and short-finned pilot whale (Globicephala macrorhynchus) are known to appear sporadically but require documented evidence for confirmation.

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Pods of dolphins are regularly spotted near shorelines and shipping lanes along Saudi Arabia’s Red Sea coast.

Reef-enclosed lagoons and sheltered nearshore waters serve as resting and social hubs for dolphins.

Human activities, including fisheries, coastal development and vessel traffic, can disrupt dolphin behavior.

Field identification is made easier by distinct physical traits. Indo-Pacific bottlenose dolphins are smaller and more slender than their common bottlenose cousins, while spinner dolphins are streamlined with a pronounced beak. Risso’s dolphins are stockier with blunt heads, often marked with noticeable scars. Indo-Pacific humpback dolphins remain close to shallow, sometimes murky, shorelines, making them challenging to document without dedicated surveys.

Researchers at KAUST emphasized the importance of ongoing conservation to maintain the Red Sea’s ecological balance. Research scientist Jesse Cochran told Arab News: “For Saudi waters, the biggest challenge is that we still don’t have the kind of long-term, standardized monitoring needed to estimate population sizes or trends confidently. We have important observations and some targeted surveys, but the baseline is still developing.”

Another research scientist, Royale Hardenstine, highlighted the need for broader coordination: “What we need most right now is connectivity across efforts. There are good observations in specific project areas, but without a shared framework and a broader network, it’s hard to turn those observations into coast-wide inferences about residency, movements, or trends.”

Dolphins are frequently seen in reef-enclosed lagoons and sheltered nearshore waters, where they rest and socialize. These locations are often predictable, as reef structures reduce wave action and currents, creating calm conditions favorable to dolphin behavior.

Christy Judd, a Ph.D. student at KAUST, noted: “Some reef-bounded lagoons appear to be used repeatedly as resting areas. These places matter because they offer shelter and calm conditions, not because they’re automatically the highest biodiversity sites.”

While dolphins sometimes feed and socialize near coral reefs, Prof. Michael Berumen explained that their ecological range extends well beyond reef systems. Dolphin activity in the Red Sea spans a wide seascape that includes open waters, channels, continental shelf edges, and coastal zones.

He said that reefs shape resting areas and can concentrate prey. Experts, however, caution against linking dolphin presence directly to reef health.

Hardenstine elaborated: “Where dolphins and reefs overlap, it’s often because reef structures create sheltered lagoons and predictable resting areas.”

Dolphin group sizes in the Red Sea vary by species and activity. Bottlenose and spinner dolphins may form large aggregations exceeding 100 individuals during social interactions or when moving through food-rich waters.

In contrast, Indo-Pacific humpback dolphins are more often observed in small groups. Mixed-species associations also occur: Indo-Pacific humpback dolphins may interact with bottlenose dolphins, and pantropical spotted dolphins frequently accompany spinner dolphins.

From left: Dr. Michael Berumen, Christy Judd, Royale Hardenstine and Jesse Cochran. (KAUST)

Berumen described these social dynamics: “Dolphin societies are typically dynamic, with groups that form and re-form over time (often described as ‘fission-fusion’ social structure). Individuals associate for feeding, travel, resting, and social interactions, and alliances can form, particularly in some bottlenose populations.”

Judd added a field perspective: “Calves are usually integrated into the pod’s normal behavior, but groups with calves can be more cautious, especially around disturbance.”

Seasonal patterns in dolphin distribution remain unclear. Hardenstine noted: “In Saudi waters seasonal patterns, if they exist, are not yet well-resolved because sighting data are often influenced by survey effort, weather, and where people are looking.”

Dolphins respond to prey availability, water temperature, and oceanographic features such as currents and productive zones. Cochran cautioned: “We expect environment and prey to influence where dolphins are seen, but data limitations mean we should treat seasonal conclusions as provisional until long-term monitoring is in place.”

Human activities pose additional pressures. Dolphins face risks from fisheries, occasional bycatch, coastal development, tourism, vessel traffic, and underwater noise. While the Red Sea does not experience the intensive industrial fishing seen in other regions, interactions with fisheries can displace dolphins or disrupt the marine food web. Vessel traffic can disturb resting behavior and increase stress.

Berumen explained: “Vessels can affect dolphin behavior by causing avoidance of certain areas, interrupting resting behavior, altering movement patterns, and increasing stress, particularly in areas where dolphins rest in sheltered lagoons.”

Hardenstine added: “While data related to these impacts in the Red Sea are sparse, some anthropogenic pressures are increasing throughout the region. This is exactly when collaborative monitoring and scientifically informed mitigation become most valuable.”

KAUST researchers study dolphins as part of broader ecosystem and megafauna monitoring, combining reef surveys, opportunistic sightings, and targeted research. The university collaborates closely with the Saudi Arabia’s National Center for Wildlife to develop a national marine mammal stranding network, assisting with identification, sampling, and necropsies when needed. Collaborative efforts with NCW and OceanX have also supported aerial surveys documenting Red Sea megafauna.

Cochran emphasized the goal: “The most responsible next step is building long-term monitoring that is coordinated between stakeholders nationally, so that observations turn into defensible data that can identify trends and guide conservation actions or policy.”