MODON Receives International Accreditation

 Bandar Al-Khorayef, minister of Industry and Mineral Resources and chairman of the Board of Directors of MODON, received the EFQM accreditation during a ceremony on Tuesday. (Asharq Al-Awsat)
Bandar Al-Khorayef, minister of Industry and Mineral Resources and chairman of the Board of Directors of MODON, received the EFQM accreditation during a ceremony on Tuesday. (Asharq Al-Awsat)
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MODON Receives International Accreditation

 Bandar Al-Khorayef, minister of Industry and Mineral Resources and chairman of the Board of Directors of MODON, received the EFQM accreditation during a ceremony on Tuesday. (Asharq Al-Awsat)
Bandar Al-Khorayef, minister of Industry and Mineral Resources and chairman of the Board of Directors of MODON, received the EFQM accreditation during a ceremony on Tuesday. (Asharq Al-Awsat)

The Saudi Authority for Industrial Estates and Technology Zones (MODON) received an accreditation certificate from the European Foundation for Quality Management (EFQM), for the four-star category, for applying quality and institutional excellence concepts.

MODON is working to create the appropriate infrastructure to encourage local and international factories to access the Saudi market and invest in an enabling environment, where the concepts of quality and institutional excellence are applied.

The minister of Industry and Mineral Resources and chairman of the Board of Directors of MODON, Bandar Al-Khorayef, received the accreditation certificate during a ceremony on Tuesday.

MODON said in statement that the European certification of excellence crowned the authority’s efforts over an entire year.

It added that MODON has also set the goal of applying a management business model consistent with global best practices in the field of quality and institutional excellence, in a way that contributes to enhancing the confidence of local and international partners, in line with the objectives of the National Industrial Strategy.

MODON’s efforts also fall within its objectives to improve the general performance indicators according to scientific bases, and to achieve the aspirations of its partners in creating an exemplary investment environment characterized by sustainability and integration, within the framework of its strategy to empower the industry and contribute to increasing local content.

The EFQM Model is a globally recognized management framework that supports organizations in managing change and improving performance.

The model is based on data supported by industry experts in line with organizations’ goals and priorities, and employees’ aspirations, in a bid to realize effective and sustainable results and institutional excellence.

EFQM is a non-profit institution that seeks to increase the competitiveness of the economy, and help it reach excellence performance and corporate business.



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.