Saudi index drops 1.7% to 11-week low

Updated 14 October 2012

Saudi index drops 1.7% to 11-week low

JEDDAH: Saudi shares closed down 1.68 percent to an 11-week low yesterday as the market reacted to last week’s lackluster banking results, weak stocks and a dip in energy prices. The fall to 6,682 points leaves the index at its lowest mark since July 25, Reuters reported. The banking index ended 1.92 percent down in its first session since major banks posted results.
Basil Al-Ghalayini, CEO of BMG Financial Group, said: “This is quite unexpected. The market has been affected primarily by the petrochemical sector as most companies have witnessed noticeable decline in global sales led by Yansab. The latter had recorded almost 47 percent decline during the third Quarter and 28 percent decline year to date. These consecutive declines have been driven by flattering global sales coupled with the temporary shutdown of the Olifins Cracker Unit.”
Commenting on the Tadawul’s steep fall, Jarmo T. Kotilaine, a regional economist, said: “This is primarily reflective of the renewed sense of malaise in the global markets. Last week was marked by bearish sentiment globally, not least because the US earnings data has failed to impress. The IMF/World Bank meetings have further highlighted the challenges while offering little concrete by way of solutions.”
He said the mood in many countries, especially in the euro zone is turning against austerity as reflected in the recurrent large-scale protests.
“In general, there is worldwide anxiety that the respite offered by renewed quantitative easing is doing little to take us closer to a real recovery,” Kotilaine said.

Automechanika Riyadh opens, featuring leading global suppliers

Updated 25 February 2020

Automechanika Riyadh opens, featuring leading global suppliers

  • Saudi auto deals grew 40 percent last year with influx of female buyers

RIYADH: Leading names in the global auto services industry are out in force at Automechanika Riyadh — which opened on Monday at Al Faisaliah Hotel — vying to increase their share of a growing market expected to reach a value of $10.15 billion by 2023.

Automechanika Riyadh is the regional arm of the world’s largest trade fair, congress and event organizer, Messe Frankfurt, which has licensed the Automechanika brand to event organizer Al Harithy Company for Exhibitions (ACE) Group.

Mansour Abdullah Al-Shathri, vice chairman of the Riyadh Chamber of Commerce, inaugurated the trade event, which will run from Feb. 24-26.

It was revealed that Saudi auto deals grew approximately 40 percent last year, with female buyers accounting for between 10-15 percent of sales after the landmark decision to allow women to drive in the Kingdom for the first time.  

“International suppliers are stepping up their marketing for the resurgence in Saudi’s market, and this impacts the entire supply chain,” said Mahmut Gazi Bilikozen, show director for Automechanika Riyadh.

“While there is growth potential in the market, it is becoming a more competitive landscape and one which will also have to contend with evolving customer preferences. The conditions are ripe for new business relationships for those wishing to succeed in this transformative environment,” he added.

Zahoor Siddique, vice president of ACE, said: “Future vehicles will become more complex and challenging for the aftermarket industry. It is therefore imperative for manufacturers, local garages, technicians and mechanics to upskill and remain above the curve. 

 “Automechanika Riyadh is one such platform that can enable us to share and learn what the industry needs to unleash its potential.”

Two major US players — disc pad producer Giant Manufacturing and United Motors Mopar, the Kingdom’s sole distributor of Chrysler, Dodge, Jeep and Fiat cars — forecast a bullish market over the next few years.

Giant’s vice president, Eli Youssian, said he believed car sales in the Kingdom would grow by 9 percent annually until 2025, while United Motors District CEO Hassan Elshamarani expected another three million female drivers to be on the Kingdom’s roads by the end of the year.

Both Giant and United Motors launched new products at the show, with the former rolling out its new German-engineered Euro Premium Metallic Disc brake pads, and the latter introducing its Magneti Marelli spare parts.

The high potential of the new-look Saudi automotive landscape has also struck a major chord with South Korean suppliers.

The show’s Korean pavilion is hosting new-to-market entrants and existing suppliers all looking for business partners. With products from wiper blades to filters and air-conditioning parts to brake pads, the Korean contingent was positive about the Kingdom’s prospects.

One exhibitor, D Only Automotive, is looking to ring fence 10 percent of the Saudi brake market. “With more vehicles on the road, demand for brakes will increase, (so) we believe this is possible,” said President Jeon JaeWon.

Global research and analytics firm Aranca — Automechanika’s knowledge partner — has forecast that Saudi Arabia’s automotive spare parts and service market will grow at approximately 6 percent over the next five years to reach a value of $10.15 billion by 2023.

“The spare parts and service market for passenger cars alone is expected to eclipse $6.9 billion by 2023,” said Vishal Sanghavi, Aranca’s automotive practice head.