Saudi Arabia Stresses Food, Water Supplies Unaffected by Virus

Fish on display at a market in Saudi Arabia. (SPA)
Fish on display at a market in Saudi Arabia. (SPA)
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Saudi Arabia Stresses Food, Water Supplies Unaffected by Virus

Fish on display at a market in Saudi Arabia. (SPA)
Fish on display at a market in Saudi Arabia. (SPA)

Saudi Arabia stressed that the pumping water, as well as agricultural activity and supply chains, are operating regularly and are unaffected by the coronavirus outbreak. It added that operations on food security projects were working at the highest levels amid the global pandemic.

According to the Minister of Environment, Water and Agriculture Abdulrahman al-Fadhli, the ministry’s various sectors are working smoothly and in continuous coordination to secure food and water supplies.

While inspecting food security projects in Riyadh, Fadhli said water pumping is operating smoothly throughout the Kingdom, with 9.7 million cubic meters being provided daily. Operations at desalination plants are moving smoothly.

On the agriculture sector, Fadhli said that the Saudi Grains Organization (SAGO) is capable, when needed, to produce about 270,000 flour bags, weighing 45 kilograms each, per day.

A statement by the ministry, a copy of which was obtained by Asharq Al-Awsat, revealed that the Kingdom’s storage capacity of wheat stands at about 3.3 million tons, with production at 15,100 tons per day.

On fresh food, the ministry said the country can produce over 180,000 tons of various vegetables per month.

There are no shortages in the market, it stressed. Poultry production is at 3.5 billion chickens and 15 million eggs per day. Milk production exceeds 7.5 million liters and seafood 437 tons per day.



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)
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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.