KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) and Saudi Arabia-based Ajlan & Bros Holding Group will form a joint venture company (JVCo) in the kingdom to explore and identify opportunities in high-value areas such as digital, cloud, and the Fourth Industrial Revolution.
Under a collaborative framework agreement (CFA), the JVCo will undertake the venture and serve the kingdom, the Middle East and North Africa (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.
DNeX group managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the JVCo will benefit from Ajlan & Bros’ regional influence, allowing DNeX to expand its presence in Saudi Arabia and the MENA markets.
Under the CFA, the partnership will also include the deployment of home-grown technologies from DNeX and its group of companies to help transform Saudi Arabia’s public services and private sector.
Source : The Edge Markets