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Kuwait’s Agility Begins Major Expansion at Logistics Complex in Riyadh

Agility signed a new MoU to explore and develop logistics zones connected to railway projects in Saudi Arabia. (Asharq Al-Awsat)
Agility signed a new MoU to explore and develop logistics zones connected to railway projects in Saudi Arabia. (Asharq Al-Awsat)
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Kuwait’s Agility Begins Major Expansion at Logistics Complex in Riyadh

Agility signed a new MoU to explore and develop logistics zones connected to railway projects in Saudi Arabia. (Asharq Al-Awsat)
Agility signed a new MoU to explore and develop logistics zones connected to railway projects in Saudi Arabia. (Asharq Al-Awsat)

The Kuwaiti company Agility has announced plans to expand its logistics complex in Riyadh by adding 100,000 square meters of modern warehouses, bringing the total storage space to approximately 551,000 square meters.

The project, valued at SAR 250 million (around $66.58 million), aims to create 300 new job opportunities for Saudi citizens, with the first phase of the expansion set to be operational by the end of the first quarter of 2025.

Speaking to Asharq Al-Awsat during the Global Logistics Forum in Riyadh, Agility CEO Tarek Sultan noted that the company had signed a new memorandum of understanding to explore and develop logistics zones connected to railway projects in Saudi Arabia, aiming to strengthen the country’s logistical infrastructure.

Sultan emphasized Agility’s key role in improving services and linking railway networks to its foreign client base, which has shown growing interest in investing in the Kingdom. This comes as Saudi Arabia aims to become a global logistics hub by 2030.

Sultan also highlighted Agility’s commitment to developing the small and medium-sized enterprises (SMEs) sector in Saudi Arabia, stating that the company, which is listed on both the Kuwait Stock Exchange and Dubai Financial Market, is looking to maximize opportunities for these businesses through investments in storage and logistics services.

On Sunday, during the Global Logistics Forum, the company announced major expansion plans for its logistics complex in Riyadh, expected to be completed within a year and a half. Sultan noted that there are additional projects currently under study and planning.

The CEO noted that Agility’s investments in Saudi Arabia amount to several billion riyals and are steadily increasing. It is noteworthy that the company’s profits decreased by 16% in the first half of 2024, totaling 24.70 million Kuwaiti dinars, due to a 24% rise in general and administrative expenses.

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Turkish Govt Defends Tax Plan to Fund Defense Industry

Finance Minister Mehmet Simsek said Türkiye must boost its 'deterrent power' due conflict in the region - AFP
Finance Minister Mehmet Simsek said Türkiye must boost its 'deterrent power' due conflict in the region - AFP
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Turkish Govt Defends Tax Plan to Fund Defense Industry

Finance Minister Mehmet Simsek said Türkiye must boost its 'deterrent power' due conflict in the region - AFP
Finance Minister Mehmet Simsek said Türkiye must boost its 'deterrent power' due conflict in the region - AFP

The Turkish government defended a proposed tax on credit cards on Tuesday, saying it was needed to fund the arms industry and protect the country as conflict rages in its neighbourhood.

Indignant Turks, who already face double-digit inflation, called their banks to lower their credit limits after the ruling AKP party submitted the tax bill to parliament on Friday.

"Our country has no choice but to increase its deterrent power. There's war in our region right now. We are in a troubled neighborhood," Finance Minister Mehmet Simsek told private broadcaster NTV.

The bill stipulates that people with a credit card limit of at least 100,000 liras (nearly $3,000) will have to pay an annual 750 lira ($22) in tax from January to bolster the defense industry.

"The purpose (of the bill) is obvious," Simsek argued.

"If we increase our deterrent power, then our ability to protect against fire in the region will increase," he said, though he added that the bill was in the hands of parliament and the ruling party could "re-evaluate" it.

AKP's parliamentary group chairman, Abdullah Guler, said when he proposed the tax on Friday that Israel's next target would be Türkiye, an argument often cited by President Recep Tayyip Erdogan.

"While we are in the middle of all these hot developments geographically, we need to make our defense industry stronger than ever," Guler said, AFP reported.

- Weapons industry -

A vocal critic of Israel's offensive in Gaza and Lebanon, Erdogan has warned that Israel's military operations could soon target Türkiye, prompting the opposition to demand an emergency session in parliament for the government to elaborate.

Addressing a conference hosted by his AKP party on Tuesday, Erdogan doubled down the threat posed by Israel.

"Even if there are those who cannot see the danger approaching our country... we see the risk and take all kind of measures," he said.

Turkey's defense industry has enjoyed a boom in recent years but Simsek said the sector needed a boost.

The defense industry is planning to invest in 1,000 projects, including a air defense system that would protect Türkiye from missile assaults, Simsek said.

"This requires resources," he added.

Türkiye has allocated 90 billion lira from the budget to fund the defense industry last year, he added.

"This year, we increased it to 165 billion lira. Maybe we will need to double this even more."

Türkiye's defense companies signed contracts in 2023 worth a total of $10.2 billion, according to Haluk Gorgun, the head of Türkiye's state Defense Industry Agency (SSB).

The top 10 Turkish defense exporters contributed nearly 80 percent of total export revenue, he said.

Sales of Turkish Baykar drones, used in Nagorno-Karabakh or Ukraine, amounted to $1.8 billion.

- 'Disguise the Economic Crisis' -

Last week, parliament held behind-closed-doors session for the government to explain why it saw Israel as a potential threat, but the opposition said it was not convinced.

The spokesman for Türkiye's main opposition CHP party, Deniz Yucel, said Monday the government was exploiting national feelings to sweep an "economic crisis" under the rug.

Inflation has spiralled over the past two years, peaking at an annual rate of 85.5 percent in October 2022 and 75.45 percent in May 2023.

Official data showed it slowed to 49.4 percent in September.

"The AKP is trying to create a fake 'foreign threat and war agenda' with the rhetoric of 'Israel may attack us'," Yucel said on Monday.

"We know and see that they are trying to disguise the economic crisis they caused."