Chinese firm to set up Saudi car assembly plant

Updated 20 July 2014
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Chinese firm to set up Saudi car assembly plant

A well-known Chinese car maker is studying the possibility of establishing a car assembly plant in the Kingdom through a Saudi-Chinese partnership, local media said quoting an expert.
The car plant is intended to supply the local market with Chinese cars, spare parts and create new job opportunities for young Saudis, General Manager of BYD Chinese Cars in Saudi markets Ibrahim Qahtan was quoted by Al-Eqtisadiah daily.
He stated that the BYD automaker has planned to set up a car assembly plant in partnership with the sole BYD car agent in the Kingdom. He gave no details on the subject as studies have not yet been completed.
The Regional Director of BYD brand in the Middle East said the company currently retains four car assembly plants in the region (Iraq, Egypt, Sudan, and Ethiopia), which will form the basis for their company to develop and expand in the region.
The above remarks come on the sidelines of the opening of the first BYD car show, recently launched by Chinese Consul General in Jeddah Anwar Habibullah.
Qahtan said the BYD car company had expanded the production of electric cars, which are currently available in the Chinese and European markets.
However, the absence of appropriate infrastructure for electric cars delayed the entry of cars in the Kingdom but as soon as the infrastructure is available, the cars will be imported immediately, he said.
On the future of the Chinese cars in the Saudi market, he said the Chinese cars will not only enter the Saudi market but spread into all world countries for a number of reasons, notably advanced technology and competitive prices where their prices in the Saudi markets will range from SR30,000 and SR75,000 for the best performance cars of this type.


Egypt stock market plunges as retail investors take flight

Updated 12 min 37 sec ago
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Egypt stock market plunges as retail investors take flight

  • Biggest index drop in Egypt since mid-2016
  • Saudi Arabia outperforms in Gulf

LONDON: Egyptian stocks tumbled to their lowest level this year on Wednesday as retail investors took flight.
A sharp rise in Suez Canal revenues, a major foreign exchange earner for the country, was not enough to quell investors concerns about the strength of the currency.
The main Egyptian stock index lost 3.8 percent which some fund managers blamed on generally negative sentiment toward emerging markets worldwide as well as more local speculation about possible currency devaluation.
“Our channel checks suggest the sell-off in the Egyptian market is local retail and institutions driven, on currency fears and speculation over a further round of devaluation,” said Vrajesh Bhandari, portfolio manager at Al Mal in Dubai, Reuters reported.
“Selling is further intensified as margin calls are triggered and technical support levels break down. The country canceled three consecutive Treasury auctions, citing investors’ unrealistic yield demands.”
Egypt’s Suez Canal revenues rose to $502.2 million in August up 6.7 percent from a year earlier according to official data released on Wednesday.
Elsewhere regional stock markets closed mostly lower with the exceptions of Abu Dhabi which edged 0.2 percent higher and Saudi Arabia, the best regional performer, which rose by 1.1 percent.
Saudi stocks are benefiting from the strong oil price which eased slightly yesterday but still hovered just under $79.
OPEC and some other oil producers including Russia will meet in Algeria on Sept. 23 to discuss how to allocate supply increases within their quota framework to offset the loss of oil exports from Iran following the introduction of sanctions by the US.
Those measures will come into force on Nov. 4 and data suggests that buyers are already retreating from Iranian crude purchases.
A key question for the oil price as well as regional stock markets in the weeks ahead will be the extent to which other Gulf oil exporters can compenaste for the loss of Iranian supplies by pumping more.