MIRA INFORM REPORT

 

 

Report No. :

356659

Report Date :

29.12.2015

 

IDENTIFICATION DETAILS

 

Name :

RASHED ABDULRAHMAN AL RASHED AND SONS (RAR)

 

 

Registered Office :

Rashed Al Rashed (RAR) Building, Prince Musaed Street, Crossing No. 1, P O Box: 99, Al Khobar 31952

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

Subject was founded in 1950, but was registered on 17/03/1395 Hijri (corresponding to 29th March 1975)

 

 

Com. Reg. No.:

2051000019, Al Khobar

 

 

Legal Form :

Limited Liability Partnership

 

 

Line of Business :

Subject’s operations are performed through the following divisions:

·         Al Rashed Building Materials Division

·         Al Rashed Wood Products Factory Division

·         Transport Division

·         Cement Division

·         Sanitary Ware Division

·         Steel Products Factory Division (Al Rashed Fasteners)

·         Contracting Division

·         Real Estate Division

 

 

No. of Employees :

1,800

 

 

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, telecommunications, 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                                    : RASHED ABDULRAHMAN AL RASHED AND SONS (RAR)

Country of Origin                                   : Saudi Arabia

Legal Form                                           : Limited Liability Partnership

Start Date                                             : 1950

Registration Date                                  : 29th March 1975

Commercial Registration Number           : 2051000019, Al Khobar

Chamber Membership Number   : 179

Issued Capital                                       : SR 29,000,000

Paid up Capital                                     : SR 29,000,000

Total Workforce                         : 1,800

Activities                                               : Subject operates several divisions (see below for details)

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

Person Interviewed                                : Magid Tanweer, Senior Accountant

 

COMPANY NAME

 

RASHED ABDULRAHMAN AL RASHED AND SONS (RAR)

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Rashed Al Rashed (RAR) Building

Street               : Prince Musaed Street, Crossing No. 1

 

PO Box                        : 99

 

Town                : Al Khobar 31952

Country : Saudi Arabia

 

Telephone         : (966-13) 8574991 / 8579655 / 8642109 / 8642150

Facsimile          : (966-13) 8573918 / 8649029 / 8572370

Email                : corporate@alrashed.com / info@alrashed.com / mohammed.sabir@alrashid.com

 

Premises

 

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Al Khobar.

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Jeddah                                                                                            Office premises

Tel: (966-12) 6720767

 

·       Dammam                                                                                         Office premises

Tel: (966-13) 8323539

 

·       Thuqbah                                                                                           Office premises

Tel: (966-13) 8953429

 

·       Al Khobar                                                                                         Office premises

Tel: (966-13) 8570377

 

·       Jubail                                                                                               Office premises

Tel: (966-13) 8100744

 

·       Al Hasa                                                                                            Office premises

Tel: (966-13) 5865776

 

·       Riyadh                                                                                             Office premises

Tel: (966-11) 4482222 / 2767676

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Abdulaziz Rashed Abdul Rahman Al Rashed                          Managing Partner

 

·       Salah Rashed Abdul Rahman Al Rashed                                            Partner

 

·       Abdulmohsen Rashed Abdul Rahman Al Rashed                                Partner

 

·       Abdulmonem Rashed Abdul Rahman Al Rashed                                Partner

 

·       Abdulrahman Rashed Abdul Rahman Al Rashed                                 Partner

 

·       Ahed Shihadeh                                                                                 Marketing Manager

 

·       Kurshaid Mohamed Sabir                                                                  Finance Manager

 

·       Mohamed Mubarak Ba Zayed                                                            Administration Manager

 

·       Zaga Mohamed                                                                                Investment Manager

 

·       Magid Tanweer                                                                                 Senior Accountant

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : Subject was founded in 1950, but was registered on 17/03/1395 Hijri (corresponding to 29th

  March 1975)

 

Legal Form                  : Limited Liability Partnership

 

Commercial Reg. No.   : 2051000019, Al Khobar

 

Chamber Member No.  : 179

 

Issued Capital              : SR 29,000,000

 

Paid up Capital            : SR 29,000,000

 

Name of Partner (s)                                                                Percentage

 

·       Abdulaziz Rashed Abdul Rahman Al Rashed                 20%

 

·       Abdulmohsen Rashed Abdul Rahman Al Rashed                       20%

 

·       Abdulmonem Rashed Abdul Rahman Al Rashed                       20%

 

·       Abdulrahman Rashed Abdul Rahman Al Rashed                        20%

 

·       Salah Rashed Abdul Rahman Al Rashed                                   20%

 

 

AFFILIATED COMPANIES

 

·       Al Rashed & Al Omran Company Ltd

Said Sayed Building

Khazzan Street

PO Box: 2743

Riyadh

Tel: (966-11) 4770566

Fax: (966-11) 4770334

CR No. 1010006104

 

·       Al Rashed Food Co

Riyadh Industrial Area

PO Box: 60428

Riyadh 11545

Tel: (966-11) 4984487

Fax: (966-11) 4984203

 

·       Saudi Public Transport Company (SAPTCO)

Al Takhassosi Street

PO Box: 10667

Riyadh 11443

Tel: (966-11) 4545000

Fax: (966-11) 4542100

 

·       Saudi Filter Company

Second Industrial City

PO Box: 401

Dammam 31932

Tel: (966-13) 8430085

Fax: (966-13) 8430096

CR No. 2051001829

 

·       National Factory for Bolts & Nuts

Al Khobar – Dammam Highway

PO Box: 185

Al Khobar 31952

Tel: (966-13) 8572717

Fax: (966-13) 8576164

CR No. 2051001335

 

·       Al Rashed Abetong Co Ltd

Nasseem Road

PO Box: 6058

Riyadh

Tel: (966-11) 2410507

Fax: (966-11) 2413419

CR No. 1010029494

 

·       Saudi Oberoi Company Ltd

First Street

PO Box: 5397

Dammam 31422

Tel: (966-13) 8345555

Fax: (966-13) 8349872

CR No. 2050010828

 

·       Arabian Chemical Investment Corp

Industrial City II

PO Box: 5985

Jeddah

Tel: (966-12) 6534848

Fax: (966-12) 6530328

 

·       Al Bank Al Saudi Al Fransi

Mather Road

PO Box: 56006

Riyadh 11554

Tel: (966-11) 4042222

Fax: (966-11) 4042311

 

·       Civil Works Co

PO Box: 14390

Jeddah

 

·       Saudi Arabian Maintenance and Services Co Ltd

 

·       Mubarraz Water Co Ltd

 

·       Haradh Agricultural and Livestock

 

·       Prefabricated Building Co Ltd

 

·       United Cement Marketing

 

·       Al Rashed and Al Noseib Trading Co

 

·       Saud Japanese Construction Co Ltd

 

·       Al Rashed and Al Jundan Contracting Co Ltd

 

·       Dammam Hotels Company Ltd

 

·       Dhahran Harco Chemical Industries Ltd

 

·       Industrial Supplies & Investment Co Ltd (Rarco)

 

·       Saudi Coating Company Ltd

 

·       Ramat Marketing & Distribution Co Ltd

 

 

OPERATIONS

 

Activities: Subject’s operations are performed through the following divisions:

 

  • Al Rashed Building Materials Division

 

Address:           Rakah Area

                        PO Box: 76556

                        Al Khobar 31952

                        Tel: (966-13) 8579655

                        Fax: (966-13) 8573918

                        Email: info@rarbmd.com

 

Activities:          Engaged in the import, distribution and retail of rebars, commercial steel, timber, plywood, MDF, blockboard, ceramic tiles, quarry tiles, mirror tiles, swimming pool tiles and wall tiles.

 

                        Al Rashed Building Materials operates branches throughout the Kingdom, including Al Khobar, Dammam, Jubail, Riyadh, Jeddah, Mecca, Al Hassa, Qassim, Madinah, Khamis Mushiat, Jouf and Gizan.

 

  • Al Rashed Wood Products Factory Division

 

Address :          Dammam – Al Khobar Highway

                        PO Box: 99

                        Al Khobar 31952

                        Tel: (966-13) 8573922 / 8573918 / 8574127 / 8595845

                        Mob: (966-54) 810613

                        Fax: (966-13) 8573918 / 8590076 / 8573167

 

Management :   Mahmoud Abdulrahim Keshwa               Division Manager

                        Raji Mahmoud Raji                                Commercial Manager

                        Suhail Butt                                            Administrative Secretary

 

History :            This division was originally established in 1983 under the name of “Al Rashed Wood Products”. However, in 1995 and as a consequence of a restructuring program the division was amalgamated with another division of the group, namely “Al Rashed Prefabricated Houses & Pallets Factory”. Subsequently the division was renamed under its current style of “Al Rashed Wood Products Factory Division” and was registered under Commercial Registration Number 2051000019/014 in Al Khobar and Industrial Concession Number : 930/S

 

Activities :         Engaged in the manufacture of wooden pallets, laminated plywood, wooden rails and doors, door frames kitchen cabinets, desks and prefabricated housing units. This division produces over 500,000 pallets per annum.

 

  • Transport Division

 

Address :          Rakah Area

                        PO Box: 261

                        Al Khobar 31952

                        Tel: (966-13) 8572205

                        Fax: (966-13) 8576775

 

Activities :         Engaged in the provision of national short and long haul transport services, special transport of all kinds of goods, heavy haulage and well trailer transport, as well as container transport of unit goods.

 

  • Cement Division

 

Address :          Rakah Area

                        PO Box: 246

                        Al Khobar 31952

                        Tel: (966-13) 8570377

                        Fax: (966-13) 8572256

 

Activities :         Distributors of Portland cement, rapid hardening cement, quick setting cement, water replacements, hydrophobic Portland cement and oil well drilling Portland cement.

 

  • Sanitary Ware Division

 

Address :          Rakah Area

                        PO Box: 2819

                        Al Khobar 31952

                        Tel: (966-13) 8945960

                        Fax: (966-13) 8942051

 

Activities :         Distributors and retailers of baths, bidets, shower trays, urinals, kitchen sinks, taps and mirror frames.

 

  • Steel Products Factory Division (Al Rashed Fasteners)

 

Address :          Al Khobar – Dammam Coastal Way

                        PO Box: 185

                        Al Khobar 31952

                        Tel: (966-3) 8572008

                        Fax: (966-3) 8576164

 

Activities :         Producers of galvanised steel wire, welded wire mesh steel, galvanised & PVC chain link fence, barbed wire steel, black wire mesh and re-bar cutting and bending, as well as various types of fasteners. Subject has a production capacity of 9,600 tonnes per annum.

 

  • Contracting Division

 

Address :          Rakah Area

                        PO Box: 246

                        Al Khobar 31952

                        Tel: (966-13) 8570377

                        Fax: (966-13) 8572256

 

            Activities :         General building and maintenance contractors.

 

  • Real Estate Division

 

Address :          Rashed Al Rashed Building

                        Prince Musaed Street, Crossing No. 1

                        PO Box: 99

                        Al Khobar 31952

                        Tel: (966-13) 8642109

                        Fax: (966-13) 8649029

 

            Activities :         Real estate investors and developers.

 

Import Countries: The United Kingdom, Germany, Japan and the United States of America.

 

International Suppliers:

 

·       Lonrho Exports Ltd                           United Kingdom

·       Redman Fisher Engineering Ltd         United Kingdom

·       Krupp Stahl AG                                Germany

·       Yoosung Corp                                  Japan

·       Jubi Yuning Industrial Co                  Japan

 

Brand Names: ALRASHED

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,800 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

                                                Year Ending 31/12/13:               Year Ending 31/12/14:

 

Total Sales                                SR 509,300,000             SR 513,850,000

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       Al Bank Al Saudi Al Fransi

Prince Nasser Street

PO Box: 397

Al Khobar

Tel: (966-13) 8643896 / 8644996

 

·       Saudi American Bank

Fluor Branch

PO Box: 842

Al Khobar 31952

Tel: (966-13) 8575503

 

·       Arab National Bank (ANB)

PO Box: 37

Al Khobar 31952

Tel: (966-13) 8948660

Fax: (966-13) 8942752

 

·       National Commercial Bank

PO Box: 1

Al Khobar 31952

Tel: (966-13) 8949669

Fax: (966-13) 8646474

 

 

PAYMENT HISTORY

 

Regular

 

 

GENERAL COMMENTS

 

Please note that the correct name of the subject is “Rashed Abdulrahman Al Rashed and Sons (RAR)” and not “Rashed Abdulrahman Al Rashed & Sons Group”.

 

Rashed Abdulrahman Al Rashed and Sons (RAR) commenced trading in the 1950s and has since grown into a leading Saudi business with diversified operations covering all aspects of the building and construction industry. Al Rashed Building Materials is a division within Rashed Abdulrahman Al Rashed and Sons (RAR).

 

Subject is owned by members of the wealthy Al Rashed family who have been engaged in the building and construction industries for nearly 50 years.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.14

UK Pound

1

Rs.98.69

Euro

1

Rs.72.55

SAR

1

Rs.17.71

Note: Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

AMR

 

 

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.