Al Kathiri CEO: Contractor Financing Program to support sector, mitigate defaults

Al Kathiri Holding Co.’s CEO Meshal Al Kathiri

Al Kathiri Holding Co.’s CEO Meshal Al Kathiri stressed the importance of the Contractor Financing Program launched by the Public Investment Fund (PIF) in partnership with the National Infrastructure Fund (NIF), noting that the program will greatly support the sector.

In an interview with Argaam on the sidelines of the 2024 PIF Private Sector Forum, he said the program is expected to revive 45 sectors. Besides, it will hasten the implementation of projects, help contractors carry out their work faster, and mitigate defaults.

Al Kathiri further explained that the contractors’ sector was suffering from shortage of funding and financing banks had a hard time understanding their needs due to their slow financial cycle.

Commenting on the decision to raise the price of diesel, he noted that Saudi Aramco was ceding part of its profitability to cement companies.

He added that this increase is positive for the region in general. Previously, cement companies had been benefiting from reduced diesel, which in turn led the region's markets to face unfair competition in the cement sector at a lower cost.

Al Kathiri also expects the market to turn into a fair competitive stage after this hike, which will reduce price volatility. He explained that Aramco's support for the sector is still ongoing, and subsidies were not lifted permanently, adding that the coming periods will reap the fruits of this decision.

Elsewhere, the CEO confirmed that Luxury Yacht Co. is in the process of obtaining a land plot to build the factory. High demand for the yacht and boat industry is foreseen in the coming period, he further stated.

According to Al Kathiri, the company seeks to reach a production capacity of 20 to 30 yachts per year, to be revealed soon, with different areas of 25 to 30 meters per yacht.

Meanwhile, he pointed out that the company has entered the luxury yacht industry since the launch of the Red Sea projects given the dire deficit in this field.