Zamil Industrial 2012 net profit soars 31%

Fourth largest Saudi industrial firm posts net profit of US$53.7m for full-year

Abdulla Al Zamil, CEO, Zamil Industrial.

Abdulla Al Zamil, CEO, Zamil Industrial.

Zamil Industrial Investment Company, the fourth largest Saudi Arabian industrial firm by market capitalisation, said its full year 2012 profit increased 31 percent because of improved operational efficiency and performance from overseas operations, as well as enhanced asset utilisation in the steel sector.

Net profit increased to SAR201.5m (US$3.7m) in 2012 from SAR154.2m in the previous year, the company said in a statement. Profits for the fourth quarter increased 70.7 percent to SAR61.4m, compared to SAR36m during the same period in 2011.

The company is likely to see similar growth next year as a result of greater demand in the kingdom, spurred by Saudi Arabia's government spending heavily on infrastructure.

"We will continue to grow positively in the year 2013 - the economy is still very strong, the government demand in the oil and gas sector is still very strong and we're a major player in that field," Abdulla Al Zamil, CEO, said in an interview with Arabian Business in November.

Saudi Arabia, the world's largest oil exporter and the Arab world’s biggest economy, is spending US$219bn this year on education, healthcare, social benefits and infrastructure. The government is also encouraging the private sector to invest in expanding the tourism and hospitality industry in the holy city of Makkah in a bid to create more jobs.

Saudi Arabia's economy is set to slow this year to an estimated 4.2 percent from about 6 percent in 2012, according to International Monetary Fund projections.

Zamil Industrial, founded in 1998, sells its products in more than 90 countries with manufacturing facilities in Saudi Arabia, the United Arab Emirates, Egypt, Austria, India, Vietnam and Italy. The company employs more than 10,000 people in 55 countries. It derives about 40 percent of its revenue from outside the kingdom.

The company may buy two companies in the Gulf kingdom's construction and building materials sector for as much as SAR300m in the coming year, Al Zamil said in the November interview.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia spends money to make money

Saudi Arabia spends money to make money

Tour of Asia by Saudi Arabia's King Salman advances drive to...

Q&A: The laptop ban and what it means when flying from Dubai and Abu Dhabi

Q&A: The laptop ban and what it means when flying from Dubai and Abu Dhabi

Couldn't a laptop with a bomb inside still pose a danger within...

Railways are huge priority for the GCC

Railways are huge priority for the GCC

Rail has the potential to dramatically affect Gulf economies...

Most Discussed