Saudi Arabia, Oman Sign Agreement and MoU on Maritime Transport

A view shows vehicles driving on a street in Riyadh, Saudi Arabia February 16, 2021. REUTERS/Ahmed Yosri
A view shows vehicles driving on a street in Riyadh, Saudi Arabia February 16, 2021. REUTERS/Ahmed Yosri
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Saudi Arabia, Oman Sign Agreement and MoU on Maritime Transport

A view shows vehicles driving on a street in Riyadh, Saudi Arabia February 16, 2021. REUTERS/Ahmed Yosri
A view shows vehicles driving on a street in Riyadh, Saudi Arabia February 16, 2021. REUTERS/Ahmed Yosri

Saudi Minister of Transport and Logistics Engineer Saleh bin Nasser Al-Jasser has signed a cooperation agreement on maritime transport with Oman, the Saudi Press Agency (SPA) reported Thursday.

Al-Jasser signed the agreement with Oman’s Minister of Transport, Communications and Information Technology Eng. Saeed bin Hamoud Al Maawali during his visit to Muscat, SPA said.

The agreement aims to enhance areas of cooperation in the maritime transport sector for passengers and goods, facilitate the traffic of commercial ships, develop economic relations between the two countries and contribute to raising the efficiency of maritime transport services.
It also aims to facilitate technology transfer and encourage maritime studies and training, which contributes to the localization of the vital industry, as well as providing the necessary facilities for building and maintaining ships in both countries, protecting the marine environment and reducing environmental pollution.

Saudi Deputy Minister of Transport and Logistics and Acting Head of the Public Transport Authority Dr. Rumaih bin Mohammed Al-Rumaih also signed an MoU for mutual recognition of certificates issued under the provisions of the International Agreement on Levels of Training, Certification and Shift Work for Sea Workers of 1978 and its amendments with the Omani Ministry of Transport, Communications and Information Technology.

Another MoU was signed with Al Maawali to raise the levels of quality and efficiency of officers and sailors working aboard the ships of the two countries, and their suitability to carry out their tasks and meet the optimal standards for maritime safety, protection of property, preservation of the marine environment, and to ensure keeping pace with developments and exchange of expertise in the transfer of knowledge, training, qualification and evaluation programs to award certificates.



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.