Petromin to invest in KAEC’s Industrial Valley
Petromin to invest in KAEC’s Industrial Valley
Under the deal, Petromin will lease 193,917 sq. meters of land to build a logistics service center for Nissan vehicles.
“King Abdullah Economic City’s efforts are focused on boosting the competitiveness of the Industrial Valley as a regional manufacturing and logistics hub,” said Fahd Al-Rasheed, group CEO and managing director of KAEC.
“The unrivaled quality of our infrastructure will attract national and global manufacturing and logistics giants, which will give us further impetus to press on with achieving the strategic vision the government has set forth for this modern city.”
Petromin is one of the Kingdom’s leading producers of automotive lubricants and automotive service providers. The company is active in five major sectors: Mass production and retail sales of automotive and industrial lubricants; Petromin Express, the company’s quick automotive service arm; automotive maintenance and repair; retail sales of automotive fuels through the company’s gas stations; and automotive retail — the company is the official Nissan Motors dealer in Saudi Arabia.
Samir Nawar, chief executive officer of Petromin, underlined the importance of the two sides working together as a team.
“This is why we have long-term investment in King Abdullah Economic City at the very top of our priorities,” he said. “There are so many favorable aspects that make the KAEC the perfect place for us to expand our investments, including the city’s strategic location, the commencement of operations at the King Abdullah Port and the sheer ease of doing business thanks to the record time in obtaining the necessary permits and licensing from the Economic Cities Authority.”
Rayan Qutub, CEO of the Industrial Valley, said that the deal reflects the growing demand for space in the Industrial Valley.
“The automotive sector, which includes vehicle dealers, distributors, spare parts suppliers, commercial vehicle assembly corporations and lubricants manufacturers, is a runaway success in the Industrial Valley,” he said. “It is a natural outcome that the Industrial Valley is developing as the primary base of operations for this sector, thanks to its strategic location on the coast of the Red Sea, its logistical access, the upcoming re-export zone, and the opening of the roll-on/roll-off pier at King Abdullah Port.”
The Industrial Valley, he said, has become the number one choice for corporations that seek to start or expand their business in the region.
“So far, we have been able to attract 120 of the biggest corporations of which 25 have already begun production and 35 others are in the process of building their facilities.”
OPEC oil ministers gather to discuss production increase
- Analysts expect the group to discuss an increase in production of about 1 million barrels a day
- The officials were arriving in Vienna ahead of the official meeting Friday
VIENNA: The oil ministers of the OPEC cartel were gathering Tuesday to discuss this week whether to increase production of crude and help limit a rise in global energy prices.
The officials were arriving in Vienna ahead of the official meeting Friday, when they will also confer with Russia, a non-OPEC country that since late 2016 has cooperated with the cartel to limit production.
Analysts expect the group to discuss an increase in production of about 1 million barrels a day, ending the output cut agreed on in 2016.
The cut has since then pushed up the price of crude oil by about 50 percent. The US benchmark in May hit its highest level in three and half years, at $72.35 a barrel.
Upon arriving, the energy minister of the United Arab Emirates, Suhail Al Mazrouei, said: “It’s going to be hopefully a good meeting. We look forward to having this gathering with OPEC and non-OPEC.”
The 14 countries in the Organization of the Petroleum Exporting Countries make more money with higher prices, but are mindful of the fact that more expensive crude can encourage a shift to renewable resources and hurt demand.
“Consumers as well as businesses will be hoping that this week’s OPEC meeting succeeds in keeping a lid on prices, and in so doing calling a halt to a period which has seen a steady rise in fuel costs,” said Michael Hewson, chief market analyst at CMC Markets UK
The rise in the cost of oil has been a key factor in driving up consumer price inflation in major economies like the US and Europe in recent months.
Already US President Donald Trump has called on OPEC to cut production, tweeting in April and again this month that “OPEC is at it again” by allowing oil prices to rise.
Within OPEC, an increase in output will not affect all countries equally. While Saudi Arabia, the cartel’s biggest producer, is seen to be open to a rise in production, other countries cannot afford to do so. Those include Iran and Venezuela, whose industries are stymied either by international sanctions or domestic turmoil. Iran is a fierce regional rival to Saudi Arabia, meaning the OPEC deal could also influence the geopolitics in the Middle East.