Tabuk Cement scraps plans to build a ready-mix concrete plant after failing to get a license

Tabuk Cement Co. called off a plan to build a ready-mix concrete factory in Jeddah after it has failed to get a license from Saudi Arabia General Investment Authority, SAGIA, the company said in a statement to the Saudi bourse, Tadawul.

The cost of the closed joint stock venture, in which Tabuk owns 60 percent, was SAR 10.9 million by the end of February 2014. It will be distributed across the partner companies, each according to its stake. The financial impact will appear when the company is liquidated and audited.

Tabuk Cement signed on April 22, 2012 an agreement with Malaysia’s ZECCN (33 percent stake) and Finish Elematic (5 percent stake) to construct SAR 60 million ready-mix concrete plant, according to Argaam. Other partners, Yassein al-Jafari and Mostafa al-Jafari, each held a 1 percent stake.

SAGIA refused to grant the license in February 2013 because the venture did not meet the requirement for a foreign investment license