3decades

MIRA INFORM REPORT

Report No. :	487801
Report Date :	06.02.2018

IDENTIFICATION DETAILS

Name :	OBEIKAN GLASS COMPANY

Registered Office :	Al Razi Street, Yanbu Industrial City, PO Box 30083, Yanbu 51000, 1010241520

Country :	Saudi Arabia

Date of Incorporation :	09.12.2007

Com. Reg. No.:	9^th December 2007

Legal Form :	Closed Joint Stock Company

Line of Business :	Subject is Engaged in the manufacture of clear float glass that meets European Standard E-572-2.

No. of Employees :	120

RATING & COMMENTS

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

MIRA’s Rating :

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

(30.06.2017)

Current Rating

(30.09.2017)

Saudi Arabia

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 : OBEIKAN GLASS COMPANY

Country of Origin : Saudi Arabia

Legal Form : Closed Joint Stock Company

Registration Date : 9^th December 2007

Commercial Registration Number : 1010241520, Yanbu

Chamber Membership Number : 1110327

Issued Capital : SR 200,000,000

Paid up Capital : SR 200,000,000

Total Workforce : 120

Activities : Manufacturers of clear float glass

Financial Condition : Undetermined

Payments : No Complaints

COMPANY NAME

OBEIKAN GLASS COMPANY

ADDRESS

Registered & Physical Address

Street : Al Razi Street

Area : Yanbu Industrial City

PO Box : 30083

Town : Yanbu 51000

Country : Saudi Arabia

Telephone : (966-14) 3925299 / 3925756 / 3573100 / 3931071

Facsimile : (966-14) 3931071

Mobile : (966-55) 4114487

Premises

Subject operates from a suite of offices and a factory covering 378,400 square metres that are owned and located in the Industrial Area of Yanbu.

Branch Offices

Location Description

· Riyadh Rented office premises

Tel: (966-11) 2839400

Fax: (966-11) 2653668

KEY PRINCIPALS

Name Position

· Fahd Abdulrahman Al Obeikan Managing Director

· Abdullah Abdulrahman Al Obeikan Director

· Tariq Abdulrahman Al Obeikan Director

· Saleh Nasser Al Jasir Director

LEGAL FORM & OWNERS

Date of Establishment : 30/11/1428 Hijri (corresponding to 9^th December 2007)

Legal Form : Closed Joint Stock Company

Commercial Reg. No. : 1010241520, Yanbu

Chamber Member No. : 1110327

Issued Capital : SR 200,000,000

Paid up Capital : SR 200,000,000

Name of Shareholder (s) Percentage

· Saudi Advanced Industries company (SAIC) 40%

· Fahd Abdulrahman Al Obeikan ]

]

· Abdullah Abdulrahman Al Obeikan ]

] 60%

· Tariq Abdulrahman Al Obeikan ]

]

· Saleh Nasser Al Jasir ]

AFFILIATED COMPANIES

· Obeikan Paper Industries Co Ltd

Al Kharj Road

Industrial City No. 3

PO Box: 355010

Riyadh 11383

Tel: (966-11) 2654351 / 4983392 / 2654316 / 2654328 / 2941289

Fax: (966-11) 2654315 / 2941286 / 2941280

· Al Obeikan Bookshop

Ibn Thnayyan Building

King Fahed Street

Olaya

PO Box: 6672

Riyadh 11452

Tel: (966-11) 4654424

Fax: (966-11) 4982300

· Obeikan Saint Gobain Co Ltd

Kharj Road

3^rd Industrial Area

PO Box: 1087

Riyadh 11431

Tel: (966-11) 2651144

Fax: (966-11) 2650272

· Obeikan Industrial Investment Group

Ibn Thnayyan Building

King Fahed Street

Olaya

PO Box: 6672

Riyadh 11452

Tel: (966-11) 4654424

Fax: (966-11) 4982300

OPERATIONS

Activities: Engaged in the manufacture of clear float glass that meets European Standard E-572-2.

Production Capacity: 225,000 tons of sheet glass per year.

Import Countries: Europe and the Far East

Subject has a workforce of 120 employees.

FINANCIAL DATA

Companies registered in Saudi Arabia are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

BANKERS

· National Commercial Bank

Yanbu

Tel: (966-14) 3221551

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

Please note that we were unable to contact the subject directly during our investigation.

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 63.03
UK Pound	1	INR 90.40
Euro	1	INR 79.73
SAR	1	INR 17.14

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

INFORMATION DETAILS

Analysis Done by :	PRA

Report Prepared by :	KET

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)

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.