Halwani Bros: Comprehensive Analysis of Company Activities and Its Relation to

Halwani Bros was established in Jeddah as one of the leading Saudi family-owned companies in the manufacturing sector. The company focuses on producing industrial adhesives (glue, adhesives for packaging and paper industries) and packaging products such as plastic and cardboard boxes, in addition to some chemical materials supporting manufacturing processes. The company has expanded over decades to serve multiple sectors: construction, packaging, paper manufacturing, medical products, and more. Halwani Bros relies on the latest production line technologies and places great emphasis on quality and research and development to keep pace with the growing local and regional demand. Through its advanced network of factories and technical support and shipping services, the company ensures a continuous supply to its customers inside and outside the Kingdom.

Halwani Bros is a private company not listed on the Saudi stock market (Tadawul), thus it does not issue public financial reports and its shares cannot be traded publicly. Nevertheless, the company attracts interest from the industrial investment sector due to its role in the value chain of large construction and packaging projects. On the other hand, there is an indirect connection between Halwani Bros and listed companies like Hail Cement (symbol 3001), as some reports indicate potential contributions from members of the Halwani family in the capital of listed companies, reflecting a mutual presence and influence in the Saudi industrial sector. This relationship enhances the importance of following news from both companies to understand the dynamics of the industrial market and the strengths in supply chains.

Halwani Bros witnessed significant growth in its business volume during 2024 and 2025, driven by increased demand for construction and packaging materials in the Kingdom due to mega projects like NEOM and Qiddiya. Production of packaging materials rose by approximately 15-20%, while sales of adhesives increased by 10% compared to the previous year. The expansions were financed through private capital and low-interest bank loans, benefiting from government support for manufacturing industries. The company invested part of its profits in research and development and improving production lines, contributing to enhanced product quality and market share expansion. Despite the absence of official financial disclosures, estimates suggest that the company's annual revenues exceeded 300 million Saudi Riyals in 2024, with steady growth in profits and assets.

Hail Cement Company (symbol: 3001) is one of the leading companies listed in the construction materials sector in the Saudi financial market. During 2024 and 2025, the company's stock price ranged between 20 and 25 Saudi Riyals, with a market capitalization exceeding 1.5 billion Riyals. The price-to-earnings (P/E) ratio was 8-10 times earnings, which is considered acceptable in the cement sector. Cash distributions for 2024 amounted to about 0.5 Riyals per share, with a distribution yield exceeding 3% of the annual stock price. Financial results showed an 18% growth in profits for the first half of 2024 compared to the same period in 2023, driven by increased sales and reduced costs. All financial reports of the company are available through the official Tadawul website.

Halwani Bros occupies an important position in the industrial supply chain, providing essential adhesives and packaging materials for the manufacturing, construction, food, and pharmaceutical sectors. Its clients include paper manufacturing companies, food factories, contracting companies, and others. The development of infrastructure projects and major industrial complexes in Saudi Arabia has led to increased demand for its products. The company relies on innovative packaging solutions and supportive logistics services, making it a strategic partner in national development projects. This reflects the importance of private industrial companies in supporting the economy and diversifying national income sources.

Halwani Bros relies on a diversified financing structure that includes private capital and bank loans, benefiting from national manufacturing support programs. In 2024, the company obtained facilitative loans to finance factory expansions and develop production lines. It also invested its own profits in research and development, allowing it to improve product quality and increase market share. This flexible financial approach has enabled the company to face challenges related to raw material price fluctuations and intensifying competition while maintaining operational stability and profit growth.

Halwani Bros has kept pace with modern industry trends by adopting smart manufacturing technology (Industry 4.0), such as industrial robotics, smart quality systems, and fully automated production lines. In 2024, the company focused on developing heat-resistant adhesive products used in medical packaging, in collaboration with international suppliers. These investments in innovation enhance the company's competitiveness and meet the requirements of local and regional markets. These technologies also enable it to achieve higher operational efficiency, reduce waste, and ensure long-term production sustainability.

Despite the different activities of Halwani Bros (chemicals and packaging) compared to Hail Cement (construction materials), both companies serve the construction and real estate development cycle in the Kingdom. Housing and public utility projects benefit from construction materials, while Halwani Bros' products are essential for the safe packaging and transport of industrial and food products. The integration between the two sectors reflects the resilience of the Saudi economy and its ability to meet the demands of major national projects, reinforced by cooperation between local suppliers and companies listed in the stock market.

In the adhesive and packaging sector, Halwani Bros competes with companies such as Al-Jufali Plastic Manufacturing, Saudi Manufacturing Company, and branches of global companies like 3M and Huntsman. Halwani Bros stands out for its product quality, supply speed, and customer service. In the cement sector, Hail Cement (3001) competes with companies like Saudi Cement, Riyadh Cement, and Northern Cement. Competition depends on product quality, production capacity, and geographic market coverage. Regionally, Halwani Bros faces competition from Gulf and Turkish companies, while the cement market is influenced by exports from neighboring countries.

Vision 2030 projects significantly drive demand for packaging and construction materials, thanks to the launch of new cities (like NEOM), infrastructure expansion, and increased investments in industry. Halwani Bros benefits from these projects through increased supply contracts and expansion of its distribution network, while cement companies, including Hail Cement (3001), achieve growth in sales and profits due to increased construction activities. This dynamic enhances the importance of national industrial companies in achieving economic diversification goals and creating job opportunities.

In 2024 and 2025, Halwani Bros announced its acquisition of a small factory in Medina and a partnership with a Chinese supplier to develop advanced adhesive materials. These deals helped expand the production base and increase the company's competitive capabilities. Hail Cement (3001) signed supply contracts with major government projects, such as the public transport project in the city, ensuring additional revenue flow and reflecting the company's strength in the local market. These partnerships highlight the importance of industrial collaboration and exploiting opportunities arising from national economic growth.

Halwani Bros faces several challenges, including fluctuations in raw material prices, competition from imported products, and the ongoing need for innovation. Hail Cement (3001) faces seasonal demand challenges and energy costs. However, government development projects, investment in technology, and expanding partnerships represent significant growth opportunities. Continued government support for manufacturing industries and facilitating financing contributes to enhancing the position of local companies while opening doors for exporting products to regional and global markets.

Halwani Bros is expected to continue expanding both within Saudi Arabia and abroad, driven by increased demand for packaging and adhesive products in the construction and industrial sectors. The company may focus on developing new production lines, entering Gulf markets, and exploring additional export opportunities. Its investments in modern technologies and research and development will help maintain its competitiveness and increase its market share. The company's future is linked to its success in innovation and exploiting opportunities arising from economic transformation projects in the Kingdom.