Riyadh Cables Intends to Invest 60 Million Riyals in Rehabilitating and Developing "Syrian Cables"

Investment Plan Overview

Saudi Arabia's Riyadh Cables Group announced an ambitious investment plan aimed at entering the Syrian market through the industrial sector. The group intends to invest 60 million Saudi riyals (approximately $16 million) in a project to rehabilitate and develop the Syrian General Cable Company in Damascus. This step comes within the framework of enhancing economic and industrial cooperation between the Kingdom of Saudi Arabia and the Syrian Arab Republic, contributing to reconstruction projects and modernizing the energy infrastructure in Syria.

Project Scope and Technology Transfer

The project includes the supply of advanced production lines, upgrading existing machinery, providing necessary raw materials, as well as transferring technical expertise and training Syrian cadres on the latest manufacturing technologies for low and medium voltage cables.

Production Capacity and Market Outlook

Reports indicated that this investment aims to increase the production capacity of the Syrian company to meet the growing demand in the Syrian local market and cover the needs of future energy and electricity projects, with the possibility of exporting to neighboring markets at a later stage, thus restoring the company's leading role in the region.

Revenue Projections

Riyadh Cables Company announced that the agreement will enable it to utilize the Syrian company's modern facilities, assets, and machinery to manufacture and sell cables that meet the needs of the Syrian market. Revenues are expected to grow gradually as the plant becomes operational and production efficiency increases. Depending on the product mix, annual revenues could reach approximately 750 million riyals when the plant reaches its maximum operating capacity.

Revenue Sharing Agreement

Based on the 18-year agreement, the annual profits or losses resulting from the project will be shared between Riyadh Cables Company and the Syrian Sovereign Fund, with the Syrian Sovereign Fund receiving 40%.