Isuzu facility in Dammam makes rapid progress

Updated 14 May 2013
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Isuzu facility in Dammam makes rapid progress

Isuzu Motors has set up in the Kingdom “its first production plant in the Middle East.’ Located in the Industrial City of Dammam II, the Saudi-Japanese joint venture will assemble 140 to 160 F-series medium-size trucks every month starting from next year.
The company said it would eventually expand production from 600 to around 25,000 units per year.
The move is part of Saudi Arabia’s ambitious vision to upgrade its industrial production capacity, especially in the automotive sector.
To this end, some major industrialized countries manufacturing both light and heavy vehicles will be providing technical support and on-the-job training for Saudi youth in this sector.
Future plans include expanding the site, located in an industrial park in the Eastern Province to handle local assembly of light-duty Elf trucks produced at the company’s plant in Fujisawa, Kanagawa Prefecture as well as heavy duty models.
The Saudi-Japanese automaker scheme, which was launched last year in Dammam by Commerce and Industry Minister Tawfiq Al-Rabiah is currently producing about 50 trucks per month, while its commercial production has reached 200 trucks so far.
In a related development, sources said the Saudi-UAE investment in Dammam, in the second industrial city, has begun pilot production for the manufacture of forklifts.
Commercial production under the joint venture is expected to commence during the next two months.
Specialists in the industrial sector look at the Saudi-Japan investments and Saudi-UAE investments have extended their full support to the joint venture, whose goal is to manufacture automobile components in the first place before moving on to the next stage of setting up a car assembly plant in the Kingdom.
In his comments, Abdullah Al-Sanie, vice chairman at the Asharqia Chamber, said investments would be in support of the industry in the event of any further support by the concerned authorities in the industrial sector.
He called on the Ministry of Trade and Industry to adopt a dual strategy based on the auto parts industry and their products in the first place followed by the establishment of a car assembly plant.
Such a move will help the Kingdom’s small-scale industries, besides providing job opportunities for Saudi nationals.


UAE property developers’ earnings give Gulf markets a boost

Updated 17 February 2019
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UAE property developers’ earnings give Gulf markets a boost

  • Real estate sector gets confidence boost
  • DAMAC gains despite 87 pct drop in Q4 net profits

DUBAI: Most stock markets in the Middle East closed higher on Sunday, reflecting a rally in global stock markets on Friday, and were also boosted by better-than-expected company results, particularly in real estate.

The Abu Dhabi index gained 0.7 percent and the Dubai index 0.6 percent, as two of the largest property developers in the United Arab Emirates posted positive fourth-quarter financial results last week that beat market expectations.

“The market is starting to rebuild confidence in earnings as a driver for sentiment,” said Arqaam Capital in a research note. “Sentiment on the UAE was very weak in 2018, specifically for real estate, on concerns over oversupply risk, pricing pressure that is leading to extended payment plans, and a rental yield compression that is continuing to fall,” Arqaam said.

“But Q4 numbers provided evidence that a few developers have emerged as winners (Emaar Co’s, Aldar) out of market consolidation.” Emaar Properties, Dubai’s largest listed developer, reported a 27 percent rise in fourth-quarter profit.

The stock rose 2 percent on Sunday. DAMAC Properties closed up 0.8 percent, despite having reported a nearly 60 percent fall in full-year profit and an 87 percent drop in fourth-quarter net profits.

In Abu Dhabi, Aldar Properties gained 3.6 percent. Last week, the developer reported a rise in fourth-quarter earnings and higher dividends for 2018. In other sectors, Abu Dhabi Islamic Bank rose 0.5 percent after saying it had no merger and acquisition plans. This was in response to a Bloomberg report last week which said the bank was considering such options.

The Saudi index closed 0.4 percent down, in contrast to the rest of the region’s markets. Arab National Bank reported an increase in full- year net profit to 3.13 billion riyals ($834.62 million) from 3.03 billion riyals one year earlier.

The stock remained unchanged and this failed to give support to the banking sector. Alinma Bank < 1150.SE> and Al Rajhi Banking & Investment Corp. lost 0.3 percent and 0.6 percent, respectively.

In Egypt, where the main index gained 1.4 percent, Orascom Investment Holding, up 3.2 percent, was among the stocks attracting the highest trading volume. Shares in the company jumped last week after its chairman, Egyptian billionaire businessman Naguib Sawiris, said he saw possible investment opportunities in North Korea if a summit between its leader Kim Jong Un and US President Donald Trump later this month was successful.

SAUDI The index lost 0.4 pct to 8,592 points ARABIA DUBAI The index rose 0.6 pct to 2,550 points ABU DHABI The index rose 0.7 pct to 5,070 points QATAR The index gained 0.7 pct to 10,011 points EGYPT The index rose 1.4 pct to 15,199 points KUWAIT The index gainedd 0.1 pct to 5,427 points OMAN The index was down 0.8 pct at 4,077 points BAHRAIN

The index went up 0.6 pct to 1,381 points ($1 = 3.7502 riyals)