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MIRA INFORM REPORT
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Report No. : |
507054 |
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Report Date : |
09.05.2018 |
IDENTIFICATION DETAILS
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Name : |
GULF MARKETS
INTERNATIONAL WLL (GMI) |
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|
|
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Registered Office : |
Al Fanar Building,
Building No. 98Y, Estiqlal Highway, Road No. 3901, Block 939, East Riffa, PO
Box-5854 |
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|
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Country : |
Saudi Arabia |
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|
|
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
05.11.1977 |
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Com. Reg. No.: |
8130-1 |
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Legal Form : |
With Limited
Liability - WLL |
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|
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Line of Business : |
Subject’s
operations are performed through the following divisions · Building Materials Division · Lifts & Escalators Division · Medical Division · Foreign Company Representation Division · Agriculture and Animal Feeds Division · IT Division |
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No. of Employees : |
46 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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. Approximately 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.
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 recently introduced a value-added tax of 5%. 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 : GULF
MARKETS INTERNATIONAL WLL (GMI)
Country of Origin : Bahrain
Legal Form :
With Limited Liability - WLL
Registration Date : 5th
November 1977
Commercial
Registration Number : 8130-1,
Manama
Chamber Membership
Number : 2744
Issued Capital : BD
250,000
Paid up Capital : BD
250,000
Total Workforce :
46
Activities :
Subject operates several divisions (see below for details)
Financial Condition : Fair
Payments : Regular
Operating Trend : Steady
COMPANY
NAME
GULF MARKETS
INTERNATIONAL WLL (GMI)
ADDRESS
Registered & Physical
Address
Building :
Al Fanar Building, Building No. 98Y
Street : Estiqlal Highway, Road No. 3901
Area : Block 939, East Riffa
PO Box : 5854
Town : Manama
Country : Bahrain
Telephone : (973-17) 226188 / 221039 / 227654 /
233228 / 230654 / 213542 / 490040
Facsimile : (973-17) 243625 / 224723 / 490070 /
911427
Mobile : (973-36) 894951
/ 894959 / (973-39) 959936
Email : gulfmkt@batelco.com.bh / info@gulfmarketsintl.com / mp.mohan@gulfmarketsintl.com
Please note that
subject’s previous address was, Bahrain Tower, 14th Floor,
Government Avenue, Manama.
Premises
Subject operates
from a medium sized suite of offices that are rented and located in the Central
Business Area of Manama.
Branch Office
(s)
Location Description
·
Doha Rented
office & warehouse premises
Qatar
·
Dubai Rented
office & warehouse premises
United Arab Emirates
KEY
PRINCIPALS
Name Nationality Position
· Nabi Abdullah Al Shulla Bahraini Chairman
·
Fahd Hassan Yousef Ahmed Al Hamad Bahraini Managing
Director
·
Rabab Mahdi Mohamed Ali Al Mahroos Bahraini Director
·
Marwa Abdul Nabi Abdullah Al Shulla Bahraini Director
·
Rawan Abdul Nabi Abdullah Al Shulla
Bahraini Director
·
Meshal Abdul Nabi
Abdullah Al Shulla Bahraini Director
·
Noor Abdul Nabi
Abdullah Al Shulla Bahraini Director
·
Alain
Arida - CEO
·
Mohan M P - Finance
Manager
·
Twinkle
Tan - Marketing
Executive
·
Nasreen
Al Saffar - Human
Resources Manager
LEGAL
FORM & OWNERS
Date of Establishment : 5th
November 1977
Legal Form :
With Limited Liability -
WLL
Commercial Reg. No. : 8130-1, Manama
Chamber Member No. : 2744
Issued Capital : BD 250,000
Paid up Capital : BD 250,000
Name of
Shareholder (s) Percentage
·
Alfanar
Investment Holding Co BSC (C) 99.96%
· Rabab Mahdi
Mohamed Ali Al Mahroos 0.04%
Notes to the legal Form
Under
the Bahraini Commercial Companies Law a WLL may be formed by a minimum of 2 and
a maximum of 50 natural or legal persons, whose liability is limited to their
shares in the company’s capital. The WLL is the most
common form of company where 100 percent foreign ownership is permitted. The minimum amount of
paid-up capital required is BD 20,000. With Limited Liability (WLL) companies cannot
issue public shares, negotiable warrants, or debentures. Banking and insurance
activities are also not allowed.
AFFILIATED
COMPANIES
Name Percentage
Held
·
Falcon
Publishing WLL -
Bahrain Tower, 14th Floor
Government Road
PO Box: 5028
Manama
Tel: (973-17) 253162 / 256160 / 256161
·
Falcon
Management Services -
Media Monitoring Services
PO Box: 5028
Manama
·
Gulf
Public Relations -
PO Box: 726
Manama
·
Gulf
Advertising & Marketing -
PO Box: 726
Manama
·
Gulf
Translations -
PO Box: 726
Manama
·
Middle
East Research & Consultancy -
PO Box: 30231
Manama
·
Tele-Gulf
Directory Publication WLL -
·
Gulf
Hill & Knowlton -
·
Grafix
Arabia Advertising -
·
Al
Jazira Marketing & Management Services -
·
Al
Fanar Travel Agency -
·
Aptech
Information Systems Ltd -
·
Al
Fanar Medical Equipment & Services Co WLL 95.00%
·
Scan
Tech International WLL 30.00%
·
Gannon
Dunkerley Middle East WLL 20.00%
·
International
Technical Supplies and Services WLL 66.70%
·
Bahrain
Alloys Manufacturing Co 16.05%
·
Pearl
Elevator International Co WLL 95.00%
·
Multispec
Systems and Services WLL 95.00%
OPERATIONS
Activities: Subject’s operations are performed through
the following divisions:
·
Building Materials Division
Wholesalers and retailers of
general building materials, timber products,
plastering materials, construction
chemicals,
metal expansion items, bathroom accessories, polythene sheets, Gypsum boards,
safety shoes, water pumps and water
heaters.
·
Lifts & Escalators Division
Engaged in the supply and installation of Window
Cleaning Systems (BMU), Robotic Car Park Systems, Domestic, Commercial and
Industrial Roller Shutters and Automatic Barriers. GMI is the exclusive agent for Orona Elevators & Escalators
·
Medical Division
Specializes
in sourcing and supplying of medical equipment and hospital disposables
required by
Government and Private
hospitals, healthcare centers and clinics. They also supply equipment and
generalsupplies specifically for laboratories of hospitals, universities and
educational institutions.
Their
brands
include 3M Gulf Ltd.
ESPE, 3M Unitek, 3M Gulf Ltd. C3SD, Planmeca OY, Zimmer Dental Product Lines
& Implants, Lawton and Bastos Viegas.
·
Foreign Company Representation Division
Representation
of foreign companies.
·
Agriculture and Animal Feeds Division
Distributors of
animal feeds and agricultural products. sole Agent for the South African company KK Animal Nutrition
in the Middle East. KK Animal Nutrition is a market leader, a major
manufacturer and international supplier of animal feed ingredients (feed
phosphates, feed-grade urea, molasses by product powder and feed-grade
sulphur).
·
IT Division
Providers of technological security solutions. Sole
Agents in the Middle East for Inttelix Software Technologies Pvt. Ltd., who is
a leader in Facial Biometric Security Solutions, specialising in biometric
engineering.
Import Countries
: The United Kingdom,
Germany, Netherlands, Sweden, India, South Africa, the United States of America
and neighbouring Arab states.
International
Suppliers:
·
BDK Group India
·
Conmix
Ltd United Arab Emirates
·
Alnet
(Pty) Ltd South Africa
·
Jiffy Netherlands
·
K K Nutrition South
Africa
·
Yara Sweden
Brand Names: 3M, SRL, XJ
SIEMENS, COX GOMYL, ORONA LIFTS, PLANMECA, GRACE CHEMICALS, KK
ANIMAL
NUTRITION, YARA PHOSPHATES OY and SELECTA
Operating Trend: Steady
Subject has a
workforce of 46 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Bahraini
Dinar (BD)
Year Revenue
Year Ending
31/12/14: BD 10,380,000
Year Ending
31/12/15: BD
11,115,000
Year Ending 31/12/16: BD
11,900,000
Year Ending
31/12/17: BD
12,750,000
Local sources
consider subject’s financial condition to be Fair.
Note: According to Bahraini Commercial Law, only
Bahraini Shareholding Companies BSC (Listed on the Bahraini Stock Market) are
required to publish their
financial information. Financial information on other legal forms can only be
obtained from the companies / businesses directly
BANKERS
·
Bank of
Bahrain & Kuwait
43 Government Avenue
PO Box: 597
Manama
Tel: (973-17) 253388
Fax: (973-17) 275785
·
National
Bank of Bahrain BSC
Government Road
PO Box: 106
Manama
Tel: (973-17) 258800
Fax: (973-17) 263876
PAYMENT
HISTORY
No complaints regarding
subject’s payments have been reported.
Date of transaction May
2002
Credit amount 486,018
Amount overdue 0
Payment terms 90
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency Canadian
Dollars
SANCTION
LIST CHECKS
The subject and its
shareholders have been checked in the following sanctions list databases:
Sanctions list Results
United Nations Sanctions No
matches
Australian Sanctions No
matches
Bureau of Industry and Security (US) No
matches
EU Financial Sanctions No
matches
Office of the Superintendent of Financial Institutions (Canada) No matches
OFAC - Specially Designated Nationals (SDN) No matches
UK Financial Sanctions (HMT) No
matches
US Consolidated Sanctions No matches
GENERAL
COMMENTS
During the course
of this investigation the following sources were consulted:
- Internal database
- Journals, directories, media & web
searches
- Local Registry office
- Interview with Mohan M P, Finance Manager
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.
COUNTRY
OUTLOOK
Recent
Developments
Cheap oil continues to test Bahrain’s economic resilience. Bahrain
maintained an expansionary fiscal stance since 2009 resulting in general government
deficits. The situation worsened in 2015 with a decline in oil revenues by
about 10 percent of GDP and a general fiscal deficit estimated at 12.8 percent
of GDP (from 3.4 percent in 2014). The deficit spending helped maintain
economic growth at 2.9 percent, but brought reserves down to a low level at 2.6
months of imports and increased public debt to 62 percent of GDP. Bahrain has
introduced some initiatives for fiscal consolidation. Revenue enhancing
measures such as higher tobacco and alcohol taxes and government services
fees were introduced over the past year. A cost-cutting program entailed
the raising of petrol prices by up to 60 percent in January 2016(likely to
create savings worth US$148.4 million), the gradual phasing-in of price increases
for electricity, water, diesel, and kerosene by 2019, an increase and
unification of natural gas prices for industrial users, and the removal of meat
subsidies. Inflation has gradually picked up in 2016 mainly as a result of the
subsidy reform: the headline CPI rose by 3 percent, but it will remain subdued
in 2017 as one-off measures affect the current year
only. 2016 outcomes demonstrate, however, that the authorities’ emphasis
on growth comes at the expense of fiscal deterioration.
The Bahraini economy grew by an estimated 3.4 percent in 2016. While the
hydrocarbon sector grew by an estimated 2 percent, the non-hydrocarbon sectors
grew by an average estimated rate of 3.7 percent, a figure that reflects the
continued emphasis on public investments, some of which were funded by the GCC.
The downside of this approach, however, has been manifested in persistently
high fiscal deficits, estimated at 12.6 percent of GDP in 2016. A large portion
of the 2016 deficit was covered by debt issuances, despite the sovereign
downgrade reflecting increasing pressures on government finances. Bahrain
issued a US$600 million bond just before the downgrade and the authorities
raised the public debt ceiling to BD 10 billion (around 80 percent of GDP) to
enable additional borrowing. Bahrain’s external position faces growing
vulnerabilities. The current account surplus of the past 12 years turned into a
deficit in 2015, following the drop in oil prices and further deteriorated in
2016 to 4.6 percent of GDP. Reserve adjustments reflect the growing external
imbalances. The exchange rate peg has come under significant pressure: external
imbalances were reflected in a decline in reserves to 2.6 months of imports in
the same time
frame. The real effective exchange rate has also appreciated by 17
percent since mid-2014, complicating adjustments to the adverse terms of trade
shock that Bahrain is facing.
Little comprehensive welfare analysis is available due to restricted
access to household survey data, limited capacity, and the sensitivities
involved. Among Bahraini nationals’, labour force participation is low, and
people work predominantly in the public sector, where wages are high and
productivity low. Immigrant workers constitute about a half of the resident
population and command much lower incomes. Key elements of the social contract
- public employment and subsidies - are becoming less affordable in the context
of subdued oil prices. Bahrain aims to gain from upgrading its capacity for
welfare measurement that would support the design of policies aimed at
mitigating the impact of the necessary adjustment. Results from a new household
survey in 2015 have not yet been published.
Outlook
Economic growth is expected to decline in the forecast period. Real GDP
growth projections have been revised downwards to 1.9 percent in 2017 and 2018,
as continuing low oil prices depress private and government consumption. Some
infrastructure investments are also likely to be put on hold. In the absence of
significant upfront
fiscal adjustments, Bahrain will remain vulnerable to fiscal risks.
Average inflation is expected to decrease to 2.1 percent in 2017 reflecting the
cooling off in economic activity and phasing out of temporary price-boosting
effects of subsidy reforms. The current account deficit will partially narrow
to 3.8 percent of GDP in 2017 and remain about there for the years to come,
with the exception of small adjustments. International reserves are expected to
follow a declining trend, and reach 1.5 months of imports in 2018. Public debt
is projected to exceed 90 percent of GDP in 2017, and reach about 100 percent
in 2018.
Risks and
Challenges
Ensuring fiscal sustainability while preserving a healthy growth rate
has become an important challenge in Bahrain. Real GDP growth is expected to
slow and fiscal and external balances are expected to remain under pressure in
2017 due to oil prices remaining well below fiscal break-even levels. Despite
efforts to diversify and boost non-oil fiscal revenues, hydrocarbons account
for about 80 percent of government revenues in Bahrain. In addition, subsidies
still absorb more than 20 percent of the fiscal budget. The fiscal break-even
price for Bahrain was estimated at US$110 per barrel in 2016, the highest
amongst the GCC. Thus, Bahrain is expected to continue to run significant
general fiscal deficits in the forecast period - 9.8 percent of GDP in 2017.
Delays in implementing fiscal consolidation or a
further decline in oil prices could trigger additional sovereign rating
downgrades making access to external financing harder, and intensifying
pressure on reserves and the peg. Fiscal solvency and liquidity risks are high,
and outcomes remain vulnerable to shocks to growth, commodity prices, and
interest rates.
Key Economic
Indicators 2014 2015 2016* 2017* 2018* 2019*
Real GDP Growth (%) 4.4
2.9 3.4
1.9 1.9 2.3
Inflation Rate (%)
2.7 1.8 3.0
2.1 2.0 2.0
Current Account
Balance (% of GDP) 4.6
-2.4 -4.6 -3.8 -3.5
3.5
Fiscal Balance (%
of GDP) -3.4 -12.8 -12.6 -9.8 -8.9 -7.6
*
forecast
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 66.77 |
|
|
1 |
INR 90.58 |
|
Euro |
1 |
INR 79.97 |
|
SAR |
1 |
INR 17.88 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.