Mohammed Al Amoudi is the richest black man in the World: SHEIKH AL-AMOUDI’S MIDROC BECOMES THIRD INVESTOR FOR SAUDI CAR MANUFACTURING PROJECT

SHEIKH AL-AMOUDI’S MIDROC BECOMES THIRD INVESTOR FOR SAUDI CAR MANUFACTURING PROJECT

Sat, 1 Jan, 2011

The swift development of a Saudi/Korean car manufacturing project continues. Less than 48 hours after King Saud University and Digm Automotive Technology, Inc. signed a joint cooperation agreement, Sheikh Mohammed Al-Amoudi’s Al-Muwakaba for Industrial Development & Overseas Commerce (MIDROC) joined the alliance, offering investment needed to complete the $500 million automobile project.

The new agreement was announced on Wednesday by KSU Rector Abdullah Al-Othman, Digm President Y. K. Jeon and Mr. Al-Amoudi. According to the agreement signed today, all three partners have willingly given up 30% of their shares for government or semi-government funds.

The new agreement stipulates that the project’s activity will focus on the manufacture and technology development of automobiles and automobile parts.

Rector Al-Othman broke down the share structure in the following manner:

15% for KSU’s Riyadh Techno Valley (RTV)
30% for Digm Automotive Technology, Inc.
55% for MIDROC

The Rector announced, “Today we have completed the full budget for the project ensuring that governmental and semi-governmental funds the opportunity to own up to 30% of the company’s shares, and all three partners would be willing to give up an agreed ratio if any of the governmental or para-governmental funds decide to take shares and if the company board decides it is beneficial to the project. These funds are the Saudi pension fund, social security fund, university education fund and Public Investment Fund.

“The agreement duration shall be one year, with a detailed evaluation of the project beginning immediately. An experienced and proven Saudi office with will be contracted to undertake and present this study, and a proposed name for the company shall be forthcoming. Tentatively named “Gazal”, the three partners, along with experts, will determine a company name and establish a project framework.

“This trilateral alliance embodies King Saud University’s aim to become an engine for the Kingdom’s knowledge-based economy. This project is just one example of the University’s conversion of intellectual capital into patents, which will generate income to the national economy.” Indeed, KSU faculty leads the nation in registering patents in every patent registration venue, particularly the United States Patent and Trademark Office.

The Rector added that KSU has often repeated that it will not remain content with research papers and studies simply accumulating on shelves, but aims for research that fulfills three objectives: serving humanity, bolstering the national economy and helping to maintain national security with government offices.

According to Al-Othman, KSU has been prolific in all three domains, serving humanity with cutting-edge medical research and community outreach programs that ease the burden of many in need. “We are bolstering national economy,” he said, “By establishing this alliance with the fifth biggest car producer in the world. Korea produced 3,512,916 units in 2009 alone, and produces some of the best cars in the world.

“Upon the advice of our foreign partner, this new company will not limit its market to Gulf countries, but will serve North Africa and other countries, as well. Happily our Korean partner has profound expertise in this business and production field. The requirements for this project’s success are all accounted for, especially after Dr. Tawfiq Alrabiah, Director General of the Saudi Industrial Property Authority (MODON) announced that his independent public agency will provide the project with one million square meters of land. The three partners, as well as MODON, have agreed that the location will be in a coastal city, where emphasis will be placed on exporting through the Red Sea or the Arabian Gulf.”

The Rector pointed out the strengths brought to the trilateral project by each investor. He noted Sheik Mohamed Al-Amoudi’s brings invaluable experience to the project, particularly as he has significant interests in various related industries such as the Yanbu Steel plant. Regarding Digm, Dr. Al-Othman said that the South Korean car manufacturer specializes in multiple areas of the automobile industry, especially in vehicle design and the manufacturing of large structures. As for the University’s Riyadh Techno Valley, he said it has ample financial assets and potential essential for entering into such a large-scale project project. So far, RTV has committed 187,500,000 Riyals (approximately 50 million USD), in addition to its acquisition of a 99-year license from MODON, which qualifies the nascent company to obtain loans from the Saudi Industrial Development Fund.

Rector Al-Othman said it is RTV’s mission to convert concepts into marketable product and to serve the national economy through a set of strategic goals, the foremost being the creation of quality job opportunities for young Saudis. In the coming years, Saudi universities will not only be graduating a growing number of graduates, but the Kingdom will annually be welcoming home many Saudi young men and women who have completed their studies abroad through the King Abdullah Scholarship Program. He said that these returning students must be provided opportunities for high-income employment, and one of the potential venues is the car industry. It should be noted that this aspect of the project was key in prompting Sheik Al-Amoudi to invest in this strategic project.

Al-Amoudi, MIDROC’s owner and director, said that Rector Al-Othman had succinctly described what he considered a “national project”, voicing his happiness at being present on such an occasion. He called his company’s part in the project as an historic honor, as it will help to cultivate Saudi Arabia’s knowledge-based economy, which will open vast employment horizons for the next generation. He said the economic viability study of the project was extremely promising, and he closed by repeating his deep thanks for the University’s leadership and its various research units striving to serve the Kingdom under the guiding wisdom of HRH King Abdullah, Crown Prince Sultan and the Second Deputy Prime Minister Prince Naif.

Digm President Y. K. Jeon predicted that the new project will usher in a golden era for automobile production in Saudi Arabia. He added that seeing the achievements of KSU’sIndustrial Engineering Department has given him a clear idea of the impressive efforts which have made this project possible. He said that Saudis have every right to be proud of this project.

He added that the new venture is unlike any other project he has seen. The unique alliance of investors will transcend the mere assembly of vehicles and parts, creating a comprehensive industry of car constituents and parts.

Dr. Khalid Al-Saleh, supervisor of the Intellectual Property and Technology Licensing (IPTL) program at KSU, said the agreement is a landmark occasion, which is the culmination of the vision of the nation’s leaders, who are determined, through world-class scientific research and higher education, to achieve international leadership in the next twenty years, as well as generating a nation of highly-educated and skilled professionals.

Dr. Al-Saleh lauded Rector Al-Othman’s part in patenting of Gazal 1 with the US Patent and Trademark Office. He said this was just an example of the University leaders’ relentless efforts in contributing to Saudi Arabia’s knowledge-based community.

He cited several impressive examples of research and development projects being done at KSU and provided some revealing numbers, as well. Among many other notable achievements, the Thompson ISI, a prominent bibliographic database service, shows that KSU faculty published more than 1008 papers in 2010, which exceeded other Saudi universities, combined, by 50%. Dr. Al-Saleh said that this research publishing has resulted in a surge in KSU patent registrations.

Dr. Al-Saleh ended his speech by saying, “KSU is in the most difficult of races; the race against itself, and it is winning.”

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Tags: Ghazal 1, IPTL, MIDROC, MODON, RTV