Cummins and Olayan in Middle East joint venture

Manufacturer Cummins and distribution company Olayan Group have formed a 50:50 joint venture in the United Arab Emirates (UAE), Saudi Arabia and Kuwait.

The joint venture – Cummins Arabia - consolidates the distribution of Cummins products in the three Middle Eastern countries.

Cummins said its wholly-owned UAE-based distributor and Olayan-owned independent distributors – General Contracting Company (GCC) in Saudi Arabia and General Transportation and Equipment (GTE) in Kuwait – currently distributed its products.

Cummins Arabia will be formed and the new operating structure implemented in the second half of 2016. It will be headquartered in Saudi Arabia, with plans underway to build dedicated facilities there.

It said the UAE, Saudi Arabia and Kuwait represented some of the largest markets for Cummins in the Middle East.

Cummins added that the partnership allowed it to expand access to the Saudi and Kuwaiti markets and operate closer to its customer base. At the same time, it said it would provide a valuable platform for the training and employment of nationals in each country.

“Cummins is pleased to partner with Olayan, which is a highly respected leader in the global distribution business,” said Tom Linebarger, chairman and CEO of Cummins.

“Olayan brings years of Middle East experience, and this partnership provides opportunities for our companies to grow and expand in this region while enhancing the service and support we provide to customers.

"Cummins will continue to look for new ways to build global partnerships that drive growth and success for our company, our partners, and our customers.”

Lubna Olayan, CEO of Olayan Financing Company, added, “We view our new joint venture as a natural evolution of the close working relationship that has existed between us and Cummins for more than 60 years.

“We began distributing Cummins products in Saudi Arabia in 1956 and have always viewed ourselves as operating in a real spirit of partnership. This new company will further enhance our product offerings and services in the region and is truly a win-win proposition – for Cummins, for us, and for our customers."