Abdulaziz Al Saghyir Commercial Investment Company, a Saudi-based construction and building materials company, has launched a SR350 million ($93 million) investment to expand within its domestic market.
The expansion plan includes new acquisitions in the building materials sector, improving existing branches, opening of new branches and facilities, enhancing company products, and entering into alliances with renowned global companies in the building materials sector, the company said in a statement.
The move aims to provide the best high quality products in the kingdom amid increasing local demand which is expected to grow about 5-15 percent in the next three years as mega projects come into full swing, the firm added.
Nazar Alsaghyir, chief operations officer at Abdulaziz Al Saghyir Holding, Riyadh, said: “Our expansion in the Saudi market is actually part of our ambitious strategy for expansion in the local level and to make the best out of the huge turnout for our products – from solid wood, wood veneer and equipment reaching to the aluminum, iron and steel products.
“The company targets to double its sales and retail activity in the sector by opening 25 new branches over the next five years to meet the demand for those products across the kingdom.”
The expansion allocates about SR250 million for acquisition opportunities and SR50 million to develop the existing branches and opening new ones while the remaining SR50 million will be spent on innovating new products and concluding global agreements.
Alsaghyir forecast that the Saudi building materials market will continue to prosper as a result of massive government expenditure on infrastructure projects as well as other major development plans.
He also said he expects the real estate development sector to stay vibrant during the course of 2014, bolstering construction and basic material companies.
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