Saudi Arabia Inks Multiple MoUs with Malaysian Firms

Malaysia has secured close to RM34 billion in investments from Saudi Arabia's Ajlan & Bros while other Malaysian firms signed JVs with Saudi firms

Saudi Arabia Inks Multiple MoUs with Malaysian Firms

Saudi Arabia conglomerate Ajlan & Bros Holding Group is set to invest close to US$7.5 billion (RM34 billion) in nine Malaysian companies, says Prime Minister Datuk Seri Ismail Sabri Yaakob.

During an MoU signing on Monday, he says the nine companies are from the semiconductor, social trade, medical technology, defence and entertainment industries.

The companies are Dagang NeXchange Bhd, Aerodyne Systems Sdn Bhd, National Aerospace and Defence Industries Sdn Bhd, Twistcode Technologies Sdn Bhd, CyberSecurity Malaysia, Malaysian Genomics Resources Centre Bhd (MGRC), Meta Universe Sdn Bhd, Light Up 7 Sdn Bhd and My Events Sdn Bhd.

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Vehicle Aftersales Servicing

DRB-HICOM Bhd through its wholly owned subsidiary Edaran Otomobil Nasional Bhd (EON) will expand its presence in the aftersales services market via a joint venture with the world’s fifth largest fast-fit service brand Petromin Express, a subsidiary of Saudi Arabia’s Petromin Corporation.

The proposed joint venture will be in the ratio of 51:49 between Petromin and EON.

“This joint venture aims to bring together DRB- HICOM and EON’s industry capabilities and presence in the automotive value chain with Petromin’s operational expertise and track record in the fast-fit aftersales franchise model to capture a fast and growing aftersales segment that closely aligns with the strategic objectives of both parties,” they said in a joint media statement here on Monday.

Digital Opportunities

Dagang NeXchange Bhd and Saudi Arabia-based Ajlan & Bros Holding Group will form a JVCo in the kingdom to explore and identify opportunities in high-value areas such as digital, cloud, and the Fourth Industrial Revolution.

Under a CFA, the JVCo will undertake the venture and serve the kingdom, the MENA markets, DNeX said in a statement on Monday.

Both parties also signed a Memorandum of Understanding (MoU) to explore setting up a packaging and assembly plant in Saudi Arabia.

DNeX said Ajlan & Bros may also participate in its plan to build and equip a brand new 12-inch semiconductor fab in Malaysia.

These agreements are a follow-through from an MoU signed in June this year to explore the business synergy between DNeX and Ajlan & Bros.