Oriental Weavers leverages US, Saudi markets to raise exports: Chairman

Updated 3/21/2024 8:38:00 AM

Arab Finance: Oriental Weavers Group is leaning on the US and Saudi markets to grow its export share of total production to 70% in 2024, compared to 65% in 2023, the group’s Chairman Yasmine Khamis said in an interview with Asharq Business.

The group is currently focusing on expanding in the US market since it is “the most profitable market,” Khamis highlighted.

Thus, it seeks to increase its exports to the US market from 30% to 36% of total sales, aiming to boost them to 40% within three years, she added.

In the same vein, the group targets exporting 10% of its overall output to the Saudi market in 2024, which will increase value of exports to the kingdom by 20% this year after recording $1 billion in 2023, Khamis pointed out.

Furthermore, Oriental Weavers’ chairman announced the group’s intention to cut production costs by 12% within three years, adding that they will not inaugurate new factories in 2024.

However, the group will focus on improving the production quality, reducing production loss, and reusing products, she said.

Khamis also revealed that the current Red Sea tensions led to a delay in exports to some countries for two to three weeks, adding that currency fluctuations resulted in upping the prices of several products by 10% to 15% last February.

Nevertheless, she expects prices of carpets to stabilize in the coming period.

On the other hand, she added that the devaluation of the local currency contributed to reducing the prices of export products by 3% to 4%, saying that production costs in Egypt “has become very compelling to investors, especially foreigners.”