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Partnerships Worth $80 Million Aim to Strengthen Supply Chains in Saudi Arabia

The MoUs will focus on building capabilities and fostering growth across various sectors. (Asharq Al-Awsat)
The MoUs will focus on building capabilities and fostering growth across various sectors. (Asharq Al-Awsat)
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Partnerships Worth $80 Million Aim to Strengthen Supply Chains in Saudi Arabia

The MoUs will focus on building capabilities and fostering growth across various sectors. (Asharq Al-Awsat)
The MoUs will focus on building capabilities and fostering growth across various sectors. (Asharq Al-Awsat)

ASMO Logistics, a joint venture of DHL and Saudi Aramco, has signed 16 memoranda of understanding (MoUs) with various companies to strengthen cooperation in energy, chemicals, refining, manufacturing, healthcare, aviation, and supply chains across the Middle East and North Africa.

The partnerships, worth over 300 million riyals (about $80 million), aim to digitize and develop the supply chain and procurement sectors in Saudi Arabia, collaborating with firms like Aramco Digital, Oracle, and SAP.

Salem Al-Huraish, Chairman of ASMO, highlighted that these partnerships will boost economic growth by creating a more flexible and efficient supply chain.

He noted that ASMO helps clients focus on their core business while benefiting from superior services, reducing carbon emissions, and improving operational efficiency.

ASMO plans to use innovative solutions to enhance supply chain services, financial operations, and human resource management through these partnerships.

The company will also establish procurement monitoring towers and create an online marketplace to aid businesses in making better decisions and improving productivity.

The MoUs will focus on building capabilities and fostering growth across various sectors. In chemicals and refining, ASMO has partnered with companies like Luberef and Petro Rabigh.

In energy, partners include Baker Hughes and Halliburton. For manufacturing, ASMO collaborates with ArcelorMittal and others.

Additionally, the company has signed MoUs with Aloula Aviation and the Johns Hopkins Aramco Healthcare Center in the aviation and healthcare sectors.

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Mandatory Insurance for Board Members of Saudi Financial Institutions Against Failures

Employees at the Saudi Investment Bank. (Saudi Investment Bank)
Employees at the Saudi Investment Bank. (Saudi Investment Bank)
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Mandatory Insurance for Board Members of Saudi Financial Institutions Against Failures

Employees at the Saudi Investment Bank. (Saudi Investment Bank)
Employees at the Saudi Investment Bank. (Saudi Investment Bank)

Asharq Al-Awsat learned that the Saudi Central Bank (SAMA) is taking steps to require financial institutions that are listed on the Saudi stock markets—both the main market (TASI) and the parallel market (Nomu)—to provide insurance coverage for their board members against professional errors and failures.

The measure aims to protect board members from potential liabilities while also safeguarding shareholder interests. The move aligns with SAMA’s supervisory and regulatory role in maintaining the stability and growth of the financial sector.

According to information obtained by Asharq Al-Awsat, this insurance offers financial protection, but does not exempt board members from their legal responsibilities or any penalties resulting from regulatory violations.

Directors and Officers (D&O) liability insurance provides coverage for executives, board members, or the company itself against fines, lawsuits, or compensation claims that may arise from their decisions. This applies in cases such as regulatory non-compliance, the issuance of misleading statements, or the dissemination of incorrect information.

Under D&O liability insurance, professional failures include errors, negligence, and the dissemination of inaccurate information due to lapses in professional duties. Financial claims covered under this insurance may include legal costs, fines, and lawsuit settlements.

Last year, the Capital Market Authority (CMA) issued a final ruling against 14 individuals, including board members and employees of Raydan Food Company (formerly Raydan Kitchens & Restaurants), for violating Article 49(a) and Article 50(a) of the Capital Market Law, as well as Article 6(a) of the Market Conduct Regulations. They were ordered to pay over SAR 77 million ($20.56 million) in avoided losses and fined SAR 50.6 million ($13.4 million).

The ruling implicated the chairman, vice chairman, managing director, and six other board members—including the head of the audit committee and two committee members—under Article 49(a) of the Capital Market Law. Additionally, the chairman, vice chairman, managing director, two other board members, and others were found guilty under Article 50(a) of the law, along with Article 6(a) of the Market Conduct Regulations.