MIRA INFORM REPORT

 

 

Report No. :

335259

Report Date :

13.08.2015

 

 

 

 

Tel No.:

00 966 2 2272727

 

NOTE: Correct name of the subject is “AL HAYAT BUILDING MATERIALS CO LTD”

 

 

IDENTIFICATION DETAILS

 

Name :

AL HAYAT BUILDING MATERIALS CO LTD

 

 

Registered Office :

Mecca Medina Express Highway, P O Box: 18053, Jeddah 21415

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

16.03.1406 (Corresponding to 29th November 1985)

 

 

Com. Reg. No.:

4030041450, Jeddah

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Distributors of building materials, hardware, power tools, decorative materials and sanitary ware products.

 

 

No. of Employees :

550

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Status :

Good  

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Saudi Arabia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

SAUDI ARABIA - ECONOMIC OVERVIEW

 

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 16% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Diversification efforts are focusing on power generation, telecommuncations, natural gas exploration, and petrochemical sectors. Over 6 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population, which generally lacks the education and technical skills the private sector needs. In 2014 the Kingdom ran its first budget deficit since 2009, and faces budget deficits for the foreseeable future because it requires an oil price greater than $100 per barrel to balance its budget. Although the Kingdom can finance high deficits for several years by drawing down its considerable foreign assets or borrowing, it probably will begin to reduce capital spending if oil prices stay low through the next year.

 

Source : CIA

 

 

 

 


SUMMARY

 

Company Name                                    : AL HAYAT BUILDING MATERIALS CO LTD

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Partnership

Registration Date                                  : 29th November 1985

Commercial Registration Number           : 4030041450, Jeddah

Chamber Membership Number               : 17875

Issued Capital                                       : SR 50,000,000

Paid up Capital                                     : SR 50,000,000

Total Workforce                                     : 550

Activities                                               : Distributors of building materials, hardware, power tools, decorative

                                                              materials and sanitary ware products.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Bassam Dalaoua, Finance Manager

 


COMPANY NAME

 

AL HAYAT BUILDING MATERIALS CO LTD

 

 

ADDRESS

 

Registered & Physical Address

 

Location           : Mecca Medina Express Highway

 

PO Box                        : 18053

 

Town                : Jeddah 21415

Country             : Saudi Arabia

 

Telephone         : (966-12) 6407777 / 6732322 / 6736327 / 6712380

Facsimile          : (966-12) 2272727 / 6712380

Email                : info@hayatbmc.com / hayatbma@ogertel.com

 

Premises

 

Subject operates from a large suite of offices and a warehouse that are rented and located in the Central Business Area of Jeddah.

 

Branch Office (s)

 

Subject operates a network of 20 branches located throughout the Kingdom, including the following:

 

     Location                                                                                           Description

 

·       Riyadh                                                                                             Office & warehouse premises

Tel: (966-1) 2410939

 

·       Dammam                                                                                         Office & warehouse premises

Tel: (966-3) 8571688

 

·       Khamis Mushait                                                                                Office & warehouse premises

Tel: (966-7) 2237937

 

·       Al Hasa                                                                                            Office & warehouse premises

Tel: (966-3) 5861311

 

·       Jizan                                                                                                Office & warehouse premises

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Issam Mohamed Khairy Al Kabbani                                                   Managing Partner

 

·       Fawaz Hajjar                                                                         General Manager

 

·       Bassam Dalaoua                                                                              Finance Manager

 

·       Ahmed Medhat                                                                                 Financial Controller

 

·       Osama Abbassi                                                                                Sales Manager

 

·       Basheer Mohamed Bashir                                                                 Marketing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 16/03/1406 (corresponding to 29th November 1985)

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.   : 4030041450, Jeddah

 

Chamber Member No.  : 17875

 

Issued Capital              : SR 50,000,000

 

Paid up Capital            : SR 50,000,000

 

Name of Partner (s)

 

·       Issam Mohamed Khairy Al Kabbani

 

·       Heirs of Zayad Zain Al Abdin (represented by his wife Mrs Goladah Diyab)

 

 

AFFILIATED COMPANIES

 

·       National Marketing Est

Port Road

PO Box: 16375 / 17931

Jeddah 21464

Tel: (966-12) 6475010 / 6473381

Fax: (966-12) 6474503

Commercial Registration Number: 4030006734

Engaged as wholesalers of UPVC pipes and fittings and a wide range of items and products related to water, drainage and conduit installation projects. Subject is also engaged in the distribution and installation of decorative materials.

 

·       United Building Materials Co Ltd (UNITECH)

Also Known As: Issam Kabbani & Partners for Prefabricated Building & Trading Co

Al Amin Al Aam Street

Al Azizeyyah District

PO Box: 5338

Jeddah 21422

Tel: (966-12) 6659096

Fax: (966-12) 6658079

Commercial Registration Number: 4030032842

Engaged as wholesalers and distributors of building materials, sealants, adhesives, bitumen coatings, hardware and tools.

 

·       Issam Kabbani & Partners for Waterproofing Materials Co (BMC)

PO Box: 5338

Jeddah 21422

Tel: (966-12) 6673180

Fax: (966-12) 6658079

     Commercial Registration Number: 4030032844

BMC is an engineering and contracting company specialising in waterproofing, damp-proofing, heat insulation and concrete repair.

 

·       Al Kabbani Co for Electric Trading

PO Box: 18033

Jeddah 21415

Tel: (966-12) 6481713

Fax: (966-12) 6478065

Distributors of electrical fittings, switchgear boards and cables.

 

·       Al Hayat Supermarket

PO Box: 16375

Jeddah 21464

 

·       Marketing Fittings Sanitary & Plumbing Co

PO Box: 16375

Jeddah

Retailers of sanitary fittings.

 

·       Issam Kabbani Co

PO Box: 16375

Jeddah 21464

Wholesalers of foodstuff.

 

·       Emam Distribution Co Ltd

PO Box: 1716

Jeddah 21441

Tel: (966-12) 6824294

Fax: (966-12) 6918227

 

·       Specialist International Marketing Group Co

PO Box: 6338

Jeddah 21422

Tel: (966-12) 6672000

Fax: (966-12) 6658079

 

·       Saudi Turkish Marine & Construction Contracting Co Ltd

PO Box: 7371

Jeddah 21462

Tel: (966-12) 6670457

Fax: (966-12) 6652473

 

·       Mahmoud Adada & Issam Kabbani & Partners Ltd

PO Box: 520

Makkah

Tel: (966-12) 5205555 / 5803056

 

Engaged in the production of wooden and metal furniture and kitchen units, as well as door, windows and decorative wood.

 

 

OPERATIONS

 

Activities: Engaged as distributors of building materials, hardware, power tools, decorative materials and sanitary

                 ware products.

 

Import Countries: United Kingdom, Germany, Italy, Spain, Belgium and South Korea

 

International Suppliers:

 

·       Kludi                                                            Germany

·       Grohe                                                          Germany

·       AEG Electrowerkezeug GmbH                       Germany

·       Ge Plastics Europe                                       Germany

·       Hawera Probst GmbH & Co                           Germany

·       Weiser                                                         United Kingdom

·       Tremco Sealants                                           United Kingdom

·       Pigler                                                           United Kingdom

·       Saviel                                                          Italy

·       Fischer Italia Srl                                            Italy

·       Sangra                                                         Spain

·       Carlisle Syntec Systems                               Belgium

·       Seo Young                                                   South Korea

 

Operating Trend: Steady

 

Subject has a workforce of approximately 550 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

                                                Year Ending 31/12/13:

 

Total Sales                                SR 420,000,000

 

Local sources consider subject’s financial condition to be Good.

 

The above figures were provided by Bassam Dalaoua, Finance Manager.

 

 

BANKERS

 

·       National Commercial Bank

Palestine Square

PO Box: 7161

Jeddah 21462

Tel: (966-12) 6697384

Fax: (966-12) 6697388

 

·       Al Bank Al Saudi Al Fransi

Al Sharafiya Branch

Madinah Road

PO Box: 7888

Jeddah 21472

Tel: (966-12) 6605863

 

 

PAYMENT HISTORY

                                     

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Al Hayat Building Materials Co Ltd has operations dating back to 1984 and is engaged in the distribution of building materials, hardware and sanitary ware products. It enjoys a good reputation for the quality of its products and deals with a host of reputable international suppliers.

 

Subject is owned by members of the Kabbani family who have many years experience in the building materials industry.

 

According to local sources subject’s operating history is clear with nothing detrimental uncovered regarding the manner in payment obligations are met. The financial position is considered to be satisfactory and the company is considered to be a fair trade risk.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.83

UK Pound

1

Rs.101.00

Euro

1

Rs.71.82

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

 

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.