Saudi, Korean firms to build car manufacturing plant

Updated 15 May 2015

Saudi, Korean firms to build car manufacturing plant

The Saudi National Automobile Manufacturing Company (SNAM) and the Saudi Arabian Public Investment Fund (PIF) are working closely with South Korea’s Daewoo International, to establish an automobile manufacturing plant.
The plant to be located in the Kingdom is aimed to meet domestic demand and also cater for the ever increasing automobile export market in the Gulf region.
"Things are progressing well with a memorandum of understanding (MoU) signed, while the agreement deal is in the final stage," Park Kyung-Ho, manager Daewoo International, Saudi Arabia, told Arab News on Thursday.
"We are close to complete the deal to build the car manufacturing plant at the Sudair Industrial City, a planned city strategically located approximately 120 km from Riyadh and 160 km from Qassim," Kyung-Ho said, adding that the plant will be capable of producing 150,000 cars a year by 2018.
Daewoo holds a 15 percent stake in the ambitious project, while SNAM has majority stake with 50 percent and PIF holds 35 percent stake, he said.
Under the deal, SNAM, PIF and Daewoo International will collectively invest approximately $1 billion to build the plant.
Earlier, Daewoo International floated a firm as the trading arm of POSCO, one of the largest steelmakers in the world that also has experience in operating auto plants abroad, which signed a memorandum of understanding (MoU) with PIF to help build an automobile plant in the resource-rich Kingdom.
As per the MoU, Daewoo International will oversee the entire process of assembly production beginning with the planning stage, including automobile design and parts procurement, while POSCO Engineering & Construction, the group’s construction arm, will participate in the actual building of the auto plant.
Notably, for the trading company, it may also mean the potential distribution of Korean auto industry technology and parts.
Working to this end, Daewoo and SNAM co-hosted a recruiting session for Saudi students pursuing higher studies in South Korea, which was held at Daewoo's headquarters in Songdo, west of the capital city of Seoul.
A large number of students attended the event, during which they were briefed about the upcoming automotive manufacturing unit.

Global trade experts gather in Riyadh as virus crisis heats up

Updated 24 February 2020

Global trade experts gather in Riyadh as virus crisis heats up

  • More than 1,000 international companies set up operations in Saudi Arabia last year

RIYADH: World trade experts are gathering in Riyadh for a major conference as the coronavirus crisis casts a shadow over global commerce.

The Asia House Trade Dialogue takes place on Tuesday in the Saudi Arabian capital, with thought leaders and policymakers taking part in the first such event to be staged in the Kingdom. Around 200 delegates are expected to attend the one-day forum.

Leading thinkers will share their insights on global trade, women’s growing role in business, and the energy industry moving toward renewable technologies. There will also be a live link with a Beijing-based expert on Chinese business to discuss the economic effects of the virus.

Asia House is a London-based consultancy which is headed by the former British trade minister and chairman of the HSBC banking group, Lord Green of Hurstpierpoint. He said: “With Saudi Arabia hosting the G20 this year, we believe it is an important time to bring our trade dialogue to Riyadh to explore the economic shifts taking place in the region and beyond.”

The event is sponsored by the Saudi British Bank, whose chair Lubna Olayan will deliver the keynote speech.

She said: “Trade has historically always been important to the development of the Kingdom, and that is equally true today as the Far East and the Middle East are once again becoming increasingly connected, and we begin a year in which Saudi Arabia leads the G20, with deliberations around trade and investment being a major focus of the B20 (the business arm of G20 summit of world leaders). It is truly an exciting time, so we are pleased to be jointly hosting this important event to explore opportunities for enhancing and facilitating growing trade links between the Far East and the Middle East.”

The conference will be opened by Ibrahim Al-Omar, the governor of the Saudi Arabian General Investment Authority, the body which promotes foreign investment in the Kingdom. Arab News is the strategic media partner for the event.

Lord Green said: “The Middle East remains an extremely important region for global trade, especially as the Gulf broadens its relationships with Asian markets. Just last year, more than 1,000 international companies set up new operations in Saudi Arabia, highlighting business interest in the Kingdom.”

Victor Gao, who is vice president of the Beijing-based Center for China and Globalization, will answer questions via web link about the impact of coronavirus on the Chinese economy.

Saudi Arabia launched its G20 presidency last December with a declaration of its program, which seeks to support innovation, achieve prosperity, empower people and preserve the planet, in line with the Kingdom’s Vision 2030 reform plan.

King Salman hailed the G20 presidency as proof of the country’s key role in the global economy.