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Asharq Al-Awsat
Asharq Al-Awsat
Business
Riyadh - Asharq Al-Awsat

Saudi Corporate Confidence at Highest Rate in Two Years

Saudi Arabia is increasing exploration of mining sites as part of the mineral wealth exploitation project across the Kingdom. (Asharq Al-Awsat)

The level of confidence among companies in the non-oil-producing private sector in Saudi Arabia rose to its highest rate in two years during January, according to the data of the Purchasing Managers’ Index (PMI), issued by Riyad Bank.

The Kingdom’s Purchasing Managers’ Index touched 58.2 in January 2023, the second-highest since September 2021. According to the data published on Sunday, the companies presented strong expectations for the next year, supported by strong flows of new orders, high production capacity, increased activity, declining cost pressures, and accelerating production growth and new business during the month.

In December, the Kingdom’s PMI stood at 56.9, while in November, the index hit 58.5, the highest in the last 16 months.

The rise was driven by the positive effects of the sub-indicators of production, new orders, and stocks of purchases. The three indices witnessed an increase in growth rates since the previous study period. The slow rise in employment and the larger decline in delivery times led to the main indicator not growing at a greater pace.

Meanwhile, the Saudi Ministry of Industry and Mineral Resources revealed on Sunday that the number of mining complexes in the Kingdom reached 377 until the end of 2022, with a total area of ​​44,000 square kilometers distributed over 13 regions.

Makkah Region came at the top with 76 complexes, followed by Riyadh with 60 complexes, Al-Madinah with 53, and Asir with 34 complexes.

Eastern Province followed with 25 complexes, Najran (24), Qassim (23), Al-Jouf (20), Al-Baha (17), Hail (16), Tabuk (14), Jizan (11) and the Northern Borders Province (4).

The ministry added that the value of mineral raw wealth was estimated at five trillions of riyals.

In terms of type of minerals, the complexes include more than 20 different minerals, such as gold, iron, copper, granite and marble.

On a different note, the Saudi Methanol Chemicals Company, Chemanol, announced on Sunday, the latest developments regarding the non-binding memorandum of understanding signed with the Global Company for Downstream Industries (GDI), to supply methanol and explore future opportunities in the field of petrochemical products.

In a statement on Tadawul, the company said it signed a joint venture agreement with Global Company for Downstream Industries (GDI) to establish a national firm to produce specialty chemicals.

This includes the production of Methyl Diethanolamine, Choline Chloride Dimethyl Disulfide, Dimethyl Sulfate, Chlorine Derivatives, Poly Alpha Olefins and Aromatic Solvents, according to the statement.

Chemanol will own a 60% stake in the new company, while GDI will own the remaining 40%. The new JV will be based in Jubail Industrial City.

The statement added that through the agreement, Chemanol aims to become one of the largest producers of specialty petrochemicals in the region.

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