Al Munif Trading, Industry, Agriculture and Contracting Company announced, in a strategic move aimed at enhancing its operational and logistical capabilities, the signing of an important contract last Thursday with the Chinese company “Shanshi” Automobiles, agents of the famous brand “Shacman”.
Deal details and timeline
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company revealed that the contract includes the purchase of 50 semi-trailer trucks, model year 2026, in a deal valued at approximately SAR 7.875 million. This move is an integral part of the company's strategic plan for the years 2026 to 2030, which aims to expand its operations and enhance the efficiency of its transport fleet.
Regarding the payment terms, Al-Munif explained that the agreement stipulates a 360-day payment period, with payments divided into a flexible schedule to ensure the company's balanced cash flow. A 20% payment is due upon signing the contract, another 20% 180 days after the bill of lading date, a further 30% after 270 days, and the final 30% after 360 days from the shipping date.
Financial impact and future prospects
The company indicated that the contract term is one year, and the financial impact of this transaction is expected to begin to appear clearly during the financial statements for the second, third and fourth quarters of fiscal year 2026. This timing reflects careful financial planning that coincides with the trucks entering actual operation, which will boost the company's operating revenues during that period.
Context of the transport and logistics sector in the Kingdom
This deal takes on particular significance when viewed in the context of the booming logistics and transportation sector in Saudi Arabia. With the rapid pace of major projects under Vision 2030, the demand for heavy transport services is increasing significantly to support the contracting, industrial, and agricultural sectors—sectors in which Al-Munif Company operates.
Investing in upgrading the fleet with modern trucks (2026 model) is a necessary step to keep up with environmental standards and fuel efficiency, which reduces long-term operating costs and increases the company’s competitiveness in the local market.
Growing Saudi-Chinese partnerships
The selection of the Chinese brand Shacman also reflects the growing trend among Saudi companies to rely on Chinese heavy equipment manufacturers, given the proven efficiency of these vehicles in the Kingdom's desert climate, as well as their economic viability. Shaanxi Automobile Group is one of the largest truck manufacturers in China and has a strong and growing presence in Middle Eastern markets, giving Al-Munif the advantage of relying on a trusted partner to ensure the continuity of its supply chains.
