MIRA INFORM REPORT

 

 

Report No. :

504882

Report Date :

26.04.2018

 

 

IDENTIFICATION DETAILS

 

Name :

MIDDLE EAST RESOURCES COMPANY

 

 

Registered Office :

Jubail – Dhahran Jubail Highway, P O Box: 13376, Jubail

 

 

Country :

Saudi Arabia

 

 

Financials (as on) :

31.12.2017

 

 

Date of Incorporation :

18.09.1423 Hijri (Corresponding to 22.11.2002)

 

 

Com. Reg. No.:

2050041698, Dammam

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in the production of polyethylene and polypropylene wax.

 

 

No. of Employees :

45

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

 

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Saudi Arabia

A2

A2

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 87% of budget revenues, 42% 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. Over 6 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors; at the same time, however, 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 2017, the Kingdom incurred a budget deficit estimated at 8.3% of GDP, which was financed by bond sales and drawing down reserves. Although the Kingdom can finance high deficits for several years by drawing down its considerable foreign assets or by borrowing, it has cut capital spending and reduced subsidies on electricity, water, and petroleum products and plans to introduce a value-added tax. In January 2016, Crown Prince and Deputy Prime Minister MUHAMMAD BIN SALMAN announced that Saudi Arabia intends to list shares of its state-owned petroleum company, ARAMCO - another move to increase revenue and outside investment. The government has also looked at privatization and diversification of the economy more closely in the wake of a diminished oil market. Historically, Saudi Arabia has focused diversification efforts on power generation, telecommunications, natural gas exploration, and petrochemical sectors. More recently, the government has approached investors about expanding the role of the private sector in the health care, education and tourism industries. While Saudi Arabia has emphasized their goals of diversification for some time, current low oil prices may force the government to make more drastic changes ahead of their long-run timeline.

 

Source : CIA

 

 

SUMMARY

 

Company Name                         : MIDDLE EAST RESOURCES COMPANY

Country of Origin                                    : Saudi Arabia

Legal Form                                            : Limited Liability Company

Registration Date                                   : 22nd November 2002

Commercial Registration Number            : 2050041698, Dammam

Chamber Membership Number                : 74594

Issued Capital                                        : SR 9,000,000

Paid up Capital                                      : SR 9,000,000

Total Workforce                                     : 45

Activities                                               : Producers of polyethylene and polypropylene wax

Financial Condition                                 : Fair

Payments                                             : No Complaints

Operating Trend                         : Steady

Person Interviewed                                 : Haytham Ezzdine, Financial Controller

 

 

 

COMPANY NAME

 

MIDDLE EAST RESOURCES COMPANY

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Jubail – Dhahran Jubail Highway

 

PO Box             : 13376

 

Town                 : Jubail

Country             : Saudi Arabia

 

Telephone         : (966-13) 8112225

Mobile               : (966-50) 5863129

Email                : mercowax@mercowax.com

 

Premises

 

Subject operates from a medium sized suite of offices and a factory that are rented and located in the Industrial Area of Jubail

 

Branch Office (s)

 

     Location                                                                                           Description

 

·       Al Hasa Street, Road No. 133                                                            Office premises

Dammam Industrial Area No. 2

Dammam 31493

Tel: (966-13) 8120999 / 8113333

     Fax: (966-13) 8121199 / 8113334

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Abdulrahman Amer Mursail Al Ghamdi                                                Managing Partner

 

·       Abdullah Amer Mursail Al Ghamdi                                                      Director

 

·       Fouaz Abdul Qader Al Ansari                                                             Partner

 

·       Sajjad Haider                                                                                    General Manager

 

·       Francis Swan                                                                                    Production Manager

 

·       Mohamed Shalal Khan                                                                       Sales Manager

 

·       Haytham Ezzdine                                                                              Financial Controller

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 18/09/1423 Hijri (corresponding to 22nd November 2002)

 

Legal Form                  : Limited Liability Company

 

Commercial Reg. No.  : 2050041698, Dammam

 

Chamber Member No. : 74594

 

Issued Capital              : SR 9,000,000

 

Paid up Capital            : SR 9,000,000

 

Name of Partner (s)                                                              Percentage

 

·       Fifth Dimension Investment Holding Co Ltd                              100%

Dammam

 

 

AFFILIATED COMPANIES

 

·       Middle East Resources

PO Box: 13376

Dammam 31493

Tel: (966-13) 8120999 / 8113333

Fax: (966-13) 8121199

CR No. 2050060626

 

 

OPERATIONS

 

Activities: Engaged in the production of polyethylene and polypropylene wax.

 

Import Countries: Europe and the Far East.

 

Subject has a workforce of 45 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Saudi Riyals (SR)

 

                                                            Year Ending 31/12/17:

 

Total Sales                                            SR 25,000,000

 

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

 

The above figures were provided by Mr Haytham Ezzdine, Financial Controller

 

 

BANKERS

 

·       Saudi British Bank

Al Khobar 31952

     Acc No. 042196360001

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

The subject and its shareholders/owners have been searched in the following databases; Office of Foreign Assets Control (OFAC), United Nations Security Council Sanctions, Australian Sanctions List, US Consolidated Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and nothing adverse could be found on the exact names listed within the report.

 

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

INR 66.70

UK Pound

1

INR 93.14

Euro

1

INR 81.43

SAR

1

INR 17.82

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRA

 

 

Report Prepared by :

NIT

 

 

 

RATING EXPLANATIONS

 

Credit Rating

 

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

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