JEDDAH, 15 April 2007 — Commerce and Industry Minister Dr. Hashem Yamani yesterday approved the establishment of three new companies with a combined capital of SR2 billion, the Saudi Press Agency said.
The newly licensed firms included Hafer Al-Baten Cement Company, which has a capital of SR1.07 billion, divided into 107,348,170 shares, each with a value of SR10.
The Riyadh-based company’s founders have subscribed to all its shares.
The company will be specializing in manufacturing cement, supplying cement and reinforcement cement products and making ready-made buildings.
It will have a three-member board of directors.
The Riyadh-based Ahli Capital, which has a capital of SR1 billion and 100 million shares, is another company approved by Yamani, SPA said, adding that it would provide various financial services, including management and handling of stocks.
The third firm approved by the minister is Office Real Estate Company with a capital of SR2 million, divided into 20,000 shares. Founders of the Riyadh-based company have subscribed to its shares.
The company is licensed to purchase land, put up buildings on it either for sell or rent purposes.
It is also allowed to manage, develop and maintain lands and other properties, as well as establish tourist villages, recreation centers and commercial, residential and tourist facilities.
The ministry said in a statement that the new companies were licensed as part of the government’s efforts to expand its economic base and encourage the private sector to play an effective role in boosting economic development.
The three companies should get permission from the Capital Market Authority for trading their shares.
The number of joint stock companies in the Kingdom is expected to reach 100 this year with a combined capital of SR150 billion.
These companies, including Inmaa Bank, Jabar Omar Real Estate Company, and several insurance companies, will sell part of their shares through initial public offerings.
There are about 50,000 family businesses in the Kingdom, some of them are likely to be converted to joint stock companies this year to improve their efficiency and competitiveness.