to download the complete report - GulfBase.com
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AGRICULTURE AND FOODare Herfy, Al-Back, Tazaj, Dajen and Kudu. Fur<strong>the</strong>r, <strong>the</strong> rising number of foreign pilgrims islikely <strong>to</strong> increase per capita food consumption in <strong>the</strong> Kingdom.The Kingdom imports large quantities of agricultural <strong>com</strong>modities and food ingredients for itsgrowing food processing sec<strong>to</strong>r. Therefore, KSA levies only 5% import duty on <strong>the</strong> majority offoodstuffs imported. However, rice, food grains and fresh produce are exempted from importduty. Going forward, <strong>the</strong> KSA Government is phasing out cus<strong>to</strong>m duty and will introduce ValueAdded Tax (VAT), in line with <strong>the</strong> UAE Government’s plan. This development will most likelychange <strong>the</strong> country’s indirect tax system.KSA <strong>com</strong>panies <strong>com</strong>pare well with GCC peers on revenue parameters.Exhibit 84: Revenue of GCC agriculture <strong>com</strong>panies,2005–2008 (USD mn)700060005000Exhibit 85: Comparison of RoE and P/E of GCC <strong>com</strong>panies,2008,605040400030002000100002005 2006 2007 2008Kuwait Oman KSA Qatar UAEROE (%)3020100-5 0 5 10 15 20 25-10-20P/EKuwait KSA Qatar OmanSource: Gulfbase, ReutersThe <strong>com</strong>panies list is not exhaustiveSource: Gulfbase, Reuters, BloombergSize of <strong>the</strong> bubble represents market cap. as on 31 Dec 2008The 15 <strong>com</strong>panies that <strong>com</strong>prise <strong>the</strong> agriculture sub-index of <strong>the</strong> Saudi S<strong>to</strong>ck Exchange arelisted in Exhibit 86 along with <strong>the</strong>ir respective average net profit margins and average RoE.Almarai had <strong>the</strong> highest market weight as of December 2008, whereas Savola exhibited <strong>the</strong>best RoE (excluding Bishah).Exhibit 86: Sec<strong>to</strong>r details% weight in Indexas on Dec 2008Avg. NPM (%),1Q05 – 4Q08*Avg. RoE,2005 – 2008*Savola Group 1.31 13.5 23.6National Agriculture Development Co 0.21 10.1 8.7Qassim Agriculture Co 0.04 53.9 1.1Hail Agriculture Development Co 0.07 16.2 10.9Tabuk Agriculture Development Co 0.04 15.9 7.4Saudi Fisheries Co 0.05 (31.5) (19.4)Ash Shargiyah Agriculture Development 0.01 2.0 2.2Al-Jouf Agriculture Development Co 0.05 25.5 9.9Bishah Agriculture Development Co** 0.04 NM 25.9Jazan Development Co 0.05 318.4 11.8Food Products Co 0.02 6.4 4.7Saudi Dairy & Foodstuff Co 0.06 3.1 5.1Almarai Company 1.65 17.6 -26.5Anaam International Holding Group Co 0.06 7.6 2.1Source: Bloomberg, Tadawul* start period may differ based on availability of data;** Performance up <strong>to</strong> 1Q-07JUNE 2009SAUDI ARABIA FACTBOOK62
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