Deal signed for KSA’s first factory to make trailers

Updated 15 January 2013
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Deal signed for KSA’s first factory to make trailers

Saudi and Turkish investors have reached an agreement to establish the Kingdom’s first factory to build trailers and containers at a cost of SR500 million.
The new factory to be established at Jeddah Industrial City will produce 5,000 trailers and containers this year, said Anwar Basaad, chairman of the board of directors of Reema Group.
“The agreement will help transfer of Turkish technology to Saudi Arabia,” he said, adding that there are good prospects for making trailers and containers in the Kingdom.
“We intend to meet the local demand for trailers and containers,” Basaad said. The factory will be established on an area of 20,000 square meters in the industrial city.
As per the agreement the Turkish side will train Saudis on operation and maintenance of the factory. “We have set out for this project considering the Kingdom’s political and economic stability,” he said.
“We have selected Turks for the project after conducting detailed studies,” Basaad said. The Turkish partner has achieved considerable experience in the field.
More than 160,000 heavy trucks operate in the Kingdom. Total investments in the Kingdom’s light, medium and heavy transport sector are estimated at more than SR80 billion.
The new move comes after the Kingdom began manufacturing Isuzu trucks in Dammam. Jaguar Land Rover of Tata Motors has signed a preliminary deal to build a plant in the Kingdom to make 50,000 Land Rovers a year.
The company plans to benefit from the upcoming multibillion integrated aluminum complex currently being built in Ras Al-Khair, north of Jubail. The $ 4 billion refinery and smelter plant is expected to produce the cheapest aluminum in the world.
The new assembly plant will be Tata Motor’s third largest assembly plant in the world, after the ones in the UK and China.
Saudi Arabia, which does not have an existing automotive industry, is seeking to develop local industry to diversify its economy away from oil exports, leveraging its abundant natural resources and low electricity prices.
The Isuzu plant in Dammam began assembling medium-duty trucks using parts supplied from the company's operations in Japan, Thailand, Indonesia and China.
Isuzu intends to manufacture some of the spare parts in the Kingdom. The present plant is making 600 units for the Saudi market. By the end of 2017, it will produce 25,000 light and heavy-duty trucks, 40 percent of them will be exported to countries in the region.
The Saudi Industrial Property Authority (Modon) said global car manufacturing companies are entering the Kingdom’s market, adding that their presence would create new opportunities for other industries. It will also create more job opportunities for Saudis and stimulate foreign investment.
Modon gives utmost importance to the automobile industry as it would contribute to transfer of international technology. These value-added projects should recur on the industrial sector in the Kingdom to open areas of employment and investment opportunities in complementary industries, it added.


Bangladesh to sign MoU with Saudi Arabia on military cooperation during Hasina’s visit

Bangladesh’s Prime Minister Sheikh Hasina was received by Riyadh Deputy Gov. Prince Mohammed bin Abdul Rahman bin Abdul Aziz on Tuesday. (SPA)
Updated 17 October 2018
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Bangladesh to sign MoU with Saudi Arabia on military cooperation during Hasina’s visit

  • Hasina visited Saudi Arabia in April to witness the final march of the joint military forces
  • Saudi Arabia had been building a military alliance with Muslim countries in recent years and, especially after the Yemen crisis, this demand is now felt even more than before

DHAKA: Bangladesh is set to sign a deal to enhance military cooperation with Saudi Arabia during Prime Minister Sheikh Hasina’s four-day visit to the Kingdom, Bangladesh’s Foreign Minister A. H. Mahmood Ali said on Monday.
Hasina, along with her entourage, left Dhaka on Tuesday on a special Biman Bangladesh flight. The premier is visiting the Kingdom on the invitation of King Salman.
The memorandum of understanding on defense cooperation between the two countries is scheduled to be signed during the meeting of Sheikh Hasina and the Saudi king on Wednesday in Riyadh.
The foreign minister did not give further details of the deal.
Security analysts in Dhaka expressed their high expectations and welcomed any military cooperation with the Kingdom.
Maj. Gen. (retired) Abdur Rashid, a renowned Bangladesh security analyst, told Arab News that any deal with Saudi Arabia will bring Bangladesh closer to the Organization of Islamic Cooperation (OIC) nations and during any emergency it will enable the country to seek military assistance from friendly countries, including Saudi Arabia.
“On the Rohingya issue, Bangladesh is receiving direct support from the OIC countries on different regional and international platforms. So this kind of military agreement with Riyadh will definitely help Bangladesh to gain more support from the Saudi-bloc countries in the Middle East to resolve the crisis,” Rashid added.
He said Saudi Arabia had been building a military alliance with Muslim countries in recent years and, especially after the Yemen crisis, this demand is now felt even more than before.
“Any military cooperation deal should be based on a win-win situation, and if Bangladesh signs the agreement with Saudi Arabia, it will increase the capacity of the military alliance led by Saudi Arabia, since Bangladesh is one of the largest Muslim nations in the world,” Rashid added.
Saudi Arabia holds a very strong military might among the Middle Eastern countries, and when the country goes for any up-gradation in its military power, it may share the military logistics with Bangladesh, which will eventually strengthen the latter’s military capacity. Rashid considers that this military deal will give Bangladesh a “strategic advantage” in the defense arena.
As an expression of brotherhood, Bangladesh has stood beside the Kingdom on several occasions at different forums. This year, it participated in a 23-nation joint military exercise led by Saudi Arabia.
Hasina visited the Kingdom in April to witness the final march of the joint military forces.
During her visit, the Bangladesh; premier will also sign another deal on cooperation in the information and communications technology sector. She is also scheduled to attend a business seminar in Riyadh organized by the Council of Saudi Chambers.
Golam Moshi, Bangladesh’s ambassador to Saudi Arabia, said: “The Bangladesh PM will focus on increasing the labor migration in Saudi Arabia. She will also ask for more investments from Saudi Arabia in solar power, cement, special economic zones, and the oil-refining sector of Bangladesh.”
Hasina will inaugurate the newly built permanent Chancery building of the Bangladesh Embassy in Riyadh on Wednesday.
She will also lay the foundation stone of the Bangladesh Consulate in Jeddah on land Bangladesh bought recently. Hasina will perform the Umrah in Makkah on Thursday and is scheduled to return home the next day.
She previously visited Saudi Arabia in May 2017 and June 2016 as head of the incumbent Bangladesh government.