Saudi Cable losses narrow as it faces extra tax bill

Saudi Cable losses narrow as it faces extra tax bill
Saudi Cable posted a net loss of SR35.9 million for the first three months of the 2021. (Supplied)
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Updated 23 May 2021

Saudi Cable losses narrow as it faces extra tax bill

Saudi Cable losses narrow as it faces extra tax bill
  • Cable maker faces extra zakat liabilities
  • Company has submitted request to raise capital

RIYADH: Saudi Cable Co. said first-quarter losses narrowed as its auditor revealed a claim from extra zakat liabilities of almost SR200 million ($53 million).
The provider of energy and telecoms cables posted a net loss of SR35.9 million for the first three months of the 2021, down from SR43.2 million a year earlier and SR46.6 million in the previous quarter, it said in a Tadawul filing.
Revenue increased 7.2 percent year on year to SR63.9 million, but was down 10.6 percent from the fourth quarter of 2020.
The General Authority for Zakat and Tax (GAZT) has made a claim of SR199.8 million for additional zakat from previous years, which Saudi Cable is disputing and has not included any provision for in its financial results, its auditor said in the filing.
Saudi Cable also has SR24 million of receivables through a joint venture that are outstanding for more than a year, and against which it has not made any provision for losses, the auditor said.
Saudi Cable said on April 8 it had submitted a request to increase capital as it seeks to raise funds to invest in production.
The company has extended the maturity of some of its short-term debt and it has no issues with solvency, Chairman Meyassar Nowailati said at the time. While its debts rose as high as SR1.7 billion in the past, they had since fallen to SR250 million, he said.
Saudi Cable posted a net loss of SR55 million in 2020, compared to a net loss of SR61.8 million in the previous year. Revenue decreased by more than 3 percent last year to SR368 million.
On May 5, it said it had acquired SR200 million of new cars on credit from Al-Nawasi Gulf Trading Company with the aim of selling them to finance the working capital of the company.


UAE’s RAW Coffee Co. expands to Saudi Arabia

UAE’s RAW Coffee Co. expands to Saudi Arabia
Updated 3 min 28 sec ago

UAE’s RAW Coffee Co. expands to Saudi Arabia

UAE’s RAW Coffee Co. expands to Saudi Arabia
  • The company is not planning to distribute through supermarkets but instead plans to replicate its business model in the UAE

JEDDAH: Saudi Arabia is the fastest-growing coffee market in the Middle East, expanding at an annual rate of 9.6 percent, according to research in late 2019 carried out by the organizers of the Middle East Coffee Conference held in Riyadh.

As a result, UAE-based RAW Coffee Co. has expanded its distribution network to Saudi Arabia and is eventually hoping to set up a physical presence in the Kingdom.

“We would say that the KSA specialty coffee scene is catching up to the more established UAE industry both in quality and knowledge, which is a very exciting time,” Kim Thompson, the co-owner and managing director of RAW Coffee Co., told Arab News. The company has teamed up with DHL to process its orders in the Kingdom.

“We have completed establishing our KSA business licensing and are currently exploring opportunities based out of Riyadh. At the moment, we roast and deliver fresh from our roastery in Dubai to the commercial customers in KSA that we supply, one of which is L’ETO Cafe, which has branches in Riyadh, Jeddah and Dammam,” Thompson said.

The company is not planning to distribute through supermarkets but instead plans to replicate its business model in the UAE, where it will distribute directly to customers and through third-party cafes, before eventually setting up its own operations in the Kingdom and potentially a chain of branded cafes.

RAW is not the first UAE-based coffee brand to announce expansion plans in the Kingdom this year. Emirati Coffee in April told Arab News it plans to open its first Saudi branch in July. CEO Mohammed Ali Al-Madfai reported that the company had seen a 3,135 percent increase in online sales in 2020.


Startup of the Week: Botola Meals offers healthy diets

Startup of the Week: Botola Meals offers healthy diets
Updated 8 min 20 sec ago

Startup of the Week: Botola Meals offers healthy diets

Startup of the Week: Botola Meals offers healthy diets

JEDDAH: Obesity is a growing issue in Saudi Arabia. A study by the Sharik Association for Health Research found that the rate of obesity among Saudi adults totaled 35.6 percent in 2020.

Besides health issues, another study by the US-based University of North Carolina at Chapel Hill, in collaboration with Saudi Health Council and the World Bank, found that obesity increases the risk of death by COVID-19 by 48 percent, and may make vaccines against the disease less effective.

In a bid to help those suffering with their weight, entrepreneurs Mohammad Faden, Nofal Al-Jefri and Mohammad Al-Harthi in November 2019 set up Botola Meals, a healthy meal-prepping service. 

Botola is the Arabic word for heroism. “It may directly symbolize athletes and achievements, but in fact it is a deep philosophy,” Faden told Arab News. “Whatever the individual’s ambition to reach that goal is, it is in itself an achievement and a mark of heroism,” he added. Al-Jefri highlighted the fact that consumers are prone to purchasing meals that are quick to prepare. “We believe that the market needs and lacks this type of project specialized in healthy fast food, and when you specialize in a particular field, it enhances consumer confidence in your product,” Al-Jefri said. “Clean Eating Matters” is the restaurant’s slogan. Al-Harthi said that Botola Meals offers healthy diets that are not about depriving yourself, but about balance. “We also want to educate people about the importance of investing in themselves and their health in an easy and convenient way,” he said. Botola Meals also prepares customized plans to cater to the specific needs of customers, such as monitoring ingredients that cause allergies and eliminating carbohydrates if a customer is following a paleo diet.

“We sit down with the customer and cooperate as much as possible in providing what suits them,” Faden said.

The startup meal service sold about 45,000 meals in 2020 — roughly 120 meals a day.Botola Meals has one branch in Jeddah’s Al-Salama district, and is planning to open a second branch in Riyadh in 2023. The startup’s long-term plan is to expand across the Gulf and beyond.


Saudi Arabia aims to be Egypt’s top trading partner

Saudi Arabia aims to be Egypt’s top trading partner
Updated 53 min 20 sec ago

Saudi Arabia aims to be Egypt’s top trading partner

Saudi Arabia aims to be Egypt’s top trading partner
  • Saudi investors are especially interested in the water desalination and water treatment sector, says Egyptian Trade Minister

RIYADH: Saudi Arabia plans to be Egypt’s top trading partner within five years, said Saudi Commerce Minister Majid Al-Qasabi.

He made the pledge at the Egyptian-Saudi Joint Trade Committee on Monday.

The minister highlighted the presence of 6,225 Saudi companies operating in Egypt with investments amounting to some $30 billion.

At the same time, 518 Egyptian are estimated to operate in the Saudi market, with 285 Egyptian brands in the Kingdom.

Saudi investors are especially interested in the water desalination and water treatment sector, Egyptian Trade Minister Nevine Gamea told Asharq Business.

She added that the cooperation between the two countries was reflected in the trade volume, which exceeded $5.5 billion in 2020.

The volume of Egyptian investments in the Kingdom reached $1.4 billion at the end of last year, she added.


Saudi Arabia’s FlyNAS to start direct flights to Seychelles

Saudi Arabia’s FlyNAS to start direct flights to Seychelles
Updated 14 June 2021

Saudi Arabia’s FlyNAS to start direct flights to Seychelles

Saudi Arabia’s FlyNAS to start direct flights to Seychelles
  • With the arrival of FlyNAS to our shores, the Ministry of Tourism is looking forward to (seeing) an increase in the number of visitors from the Saudi Arabian region

RIYADH: Saudi airline FlyNAS is starting direct flights to the Seychelles from July 1.

It will operate three times a week from Jeddah to Mahé, using an A320 Neo aircraft, on Tuesdays, Thursdays and Saturdays with up to 174 passengers. The flight time is five hours and 40 minutes.

Seychelles foreign affairs and tourism minister, Sylvestre Radegonde, said: “The destination has recorded approximately some 300 Saudi Arabians since January 2021. With the arrival of FlyNAS to our shores, the Ministry of Tourism is looking forward to (seeing) an increase in the number of visitors from the Saudi Arabian region. The three weekly flights to Seychelles from Jeddah represent another great opportunity for our destination, as not only will the Seychelles be accessible directly to Saudi Arabian nationals but also the expatriates living in the Kingdom.”

All passengers must present a negative PCR test and proof of valid travel health insurance covering any potential coronavirus-related costs as part of the Seychelles COVID-19 measures.


Suez Canal posts second-highest monthly revenue

Suez Canal posts second-highest monthly revenue
Ever Given, a Panama-flagged cargo ship, is seen in Egypt's Great Bitter Lake Tuesday, March 30, 2021. (AP)
Updated 14 June 2021

Suez Canal posts second-highest monthly revenue

Suez Canal posts second-highest monthly revenue
  • Tonnages amounted to 10.6 million in May, compared to 9.94 million tons during the same period last year, an increase of 11.8 percent

CAIRO: The Suez Canal Authority has posted May revenues of $530 million, the second-highest monthly revenue in the authority’s history.

Osama Rabie, head of the authority, said that it is prepared to confront any crises, and that a strategy has been prepared to handle repercussions of the pandemic.

He added that 1,712 ships transmitted through the canal during May, compared to 1,602 during the same month last year, an increase of 9.6 percent.

Tonnages amounted to 10.6 million in May, compared to 9.94 million tons during the same period last year, an increase of 11.8 percent.

Rabie stressed that these improvements attracted praise from trade bodies such as the Baltic and International Maritime Council, Sea Trade, Forbes, and Argos. The groups have lauded the authority for attracting container ships and gas and oil tankers coming from the East American coast in the direction of Asia.

He pointed out that the authority will always be a pioneer in adopting the latest methods and techniques of management and operation, as well as applying the mechanisms of integration between all elements of maritime transport.

Rabie said: “The Suez Canal Authority has prepared all scenarios to confront any emergency crises, which was clearly demonstrated when facing the coronavirus pandemic, which hit global trade and economic movement at the beginning of 2020, and negatively affected all areas related to international navigation and maritime transport in general, but this negative impact has been kept to a minimum thanks to an integrated proactive strategy prepared by the canal.”