SAC Ensures Global Foothold of Saudi Quality Control

Saudi Trade and Investment Minister Majid bin Abdullah Al Qasabi. Asharq Al-Awsat
Saudi Trade and Investment Minister Majid bin Abdullah Al Qasabi. Asharq Al-Awsat
TT

SAC Ensures Global Foothold of Saudi Quality Control

Saudi Trade and Investment Minister Majid bin Abdullah Al Qasabi. Asharq Al-Awsat
Saudi Trade and Investment Minister Majid bin Abdullah Al Qasabi. Asharq Al-Awsat

The Saudi cabinet has approved granting the Saudi Accreditation Committee independence, rebranding it as the Saudi Accreditation Center (SAC).

Such a move is set to widen the horizon and reinforce the center’s performance and works.

SAC is a new platform aimed at increasing quality control for services and products offered in the Kingdom, contributing more to achieving the objectives of Kingdom Vision 2030.

It is expected to contribute indirectly to achieving four of the first level targets for Vision 2030: Developing and diversifying the economy, enhancing government effectiveness, enabling a healthy living, and increasing employment rates.

Over the past years, SAC has been responsible for the policy-making process when it comes to accreditation regulations, as well as the granting, renewing, freezing, withdrawing, expanding and limiting accreditation for certification-issuing third parties.

Saudi Trade and Investment Minister Majid bin Abdullah Al Qasabi noted that the SAC rebranding and structural shakeup will aid the Kingdom in taking longer strides towards completing a reliable and impartial national quality-regulation infrastructure with international recognition.

“Independent accreditation is an essential step in the right direction to avoid conflicts of interest, ensure the integrity of national infrastructure activities for quality, and gain international recognition,” Qasabi said.

Qasabi also affirmed SAC will indirectly contribute to developing and diversifying the economy and enhancing institutional efficiency.

This follows SAC successfully accomplishing digitization for all its accreditation activity, which has contributed significantly to enabling beneficiaries, residents and committee members to access the Commission's services, complete accreditation procedures and follow-up online.

This has significantly reduced the period of processing from an average of 260 days, when the system is introduced in 2016, to 175 days in 2018.

The national accreditation body holds core values of impartiality, integrity, competency and teamwork spirit and looks to partake in developing the Kingdom’s economy by raising the level of technical competency, establishing conformity in terms of certification-granting bodies and insuring better consumer protection. 



Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
TT

Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.