PWC has established a joint venture called PWC Logistics Saudi Arabia, with Al-Faisaliah Groupand Almunajem Group, both of Saudi Arabia. The new company will invest more than SR 500 million ($133 million) to build state-of-the-art logistics and supply chain facilities in Riyadh, Jeddah, Dammam and other cities in the kingdom.

The facilities will include narrow and wide-aisle racking, radio frequency scanning equipment, and an integrated online warehouse management system, with clients able to access their inventory online.

PWC has also teamed up with Oman's WJ Towell & Companyto form PWC Logistics Oman. The new venture will invest about KD 6.5 million ($22 million) in building a warehousing and supply facility in Muscat. It will cover an area of about 160,000 square meters, with the first phase of construction - covering a warehousing facility of 20,000 square metres and a storage capacity of 40,000 cubic metres - expected to be completed in early 2005.

The creation of the two joint ventures completes PWC's Gulf supply chain network. It already operates facilities in Bahrain, Jordan, Kuwait, Qatar, Turkey, Lebanon and the UAE and has recently won a $130 million contract in Iraq (see page 9).