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Stars of the new Saudi economyand the leaders driving them forward.

THEY’VE GOT WHAT IT TAKES. DO YOU?

FEBRUARY 2013 - ISSUE 50

SR 35

AL-HARITH AL-QURASHITAL NAZER EYAD MASHAT MOHAMMED ABBASABDULLAH BAHABRI

COVER

FEATURE

SAUDI BUSINESSESTRANSFORMING

IN GOOD COMPANY:

THE KINGDOM’S ECONOMYEntrepreneur KSA February 20136|

THE KINGDOM’S ECONOMY

e’re thrilled to feature 50 companies from Saudi that we believe represent the shift. To draw up the list, we’ve partnered with the AllWorld Network. Day-in and day-out the team at AllWorld is hunting down high growth, private companies in the world’s emerging markets. The result is their annual Arabia500 which ranks stellar entrepreneurs from MENA on their sales growth by

performing due diligence on their operating model and audited financial statements. The fastest growing and most transparent make the Arabia500, gaining global visibility, the ability to participate at the AllWorld Summit@Harvard, and an instant network of like-minded ‘treps. Our list of 50 companies compiles AllWorld’s findings in Saudi Arabia with companies selected by the editorial board here at Entrepreneur KSA. Together, the list showcases the up-and-coming alongside the market stalwarts, across industries ranging from hospitality and distribution to telecommunications. These are the companies driving change today and poised to shake up the market tomorrow.

For information on how to apply to the Arabia500, visit www.allworldlive.com

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Let’s get the obvious out of the way. Think Saudi Arabia’s

economy, and you think oil. The black gold has transformed the

Kingdom into one of the world’s richest nations. Nevertheless,

widespread efforts are underway to decouple the

economy from its foremost natural resource. A host of

companies have arisen that are moving Saudi Arabia from the shifting sands of commodity-based wealth to a world-class

diversified economy.

February 2013 Entrepreneur KSA |7

Entrepreneur KSA February 20132|

EDITOR’S nOTE

The Riyadh Summit:Good tidings for the Arab economy

he third Arab Economic and Social Summit hosted by the city of Riyadh in January was characterized by, first, the timing, and two, the locale. The event was held in the light

of the political and economic changes that have swept across the Arab world of late. The relevance (and importance) of its deliberations are more important than they’ve ever been before.Many of the topics are just too hot to be ignored: bilateral trade, unemployment, the development of renewable sources of energy, strengthening healthcare and reducing poverty. Preceded by the Kuwait Summit in 2009 and the Cairo Summit in 2010, the Riyadh Summit is the third in less than five years. Their recurrence indicates just how focused the Arab states are on developing their economies – especially when inter-Arab investments come in below a meager $25 billion. It’s a daring plunge into dark territory for Arab states to achieve desirable trade ratios in two-way trade and in other joint economic areas. The outcome of the Summit was a great sign of things to come from the Arab economy as a whole. They adopted the amended Unified Agreement for Capital Investment in the Arab countries, and have created the right environment to encourage an increased flow of inter-Arab trade. A few nations have tremendous financial surpluses. Others do not. The summit also confirmed the completion of the requirements for the Arab Free Trade Area which includes 15 Arab countries before the end of 2013, as well as reaching a Customs Union Agreement by 2015. Saudi Arabia itself reached a major milestone. The Kingdom has taken the initiative to increase capital in institutions, funds and joint Arab projects by roughly 50 percent (approx. $10 billion). Here, Saudi Arabia can be an immense catalyst for the Arab economy, especially considering that the per capita income in the Arab world is toward the bottom worldwide while it still boasts some of the greatest fortunes found anywhere on the globe. However, the most important outcome of the Riyadh summit has been in emphasizing the importance of putting into effect the decisions of the two previous summits, especially in regards to the support fund for small and medium-sized enterprises (SMEs). That fund will amount to $1.2 billion, including $500 million from Saudi Arabia and Kuwait. Such a move would support the sector of small and medium-sized projects, which in turn can contribute to solving the economic and social problems that are saturating the region. First and foremost, we’re thinking the problem of unemployment; widely acknowledged to be the most serious problem facing the Arab countries, SMEs are inherently labor-intensive. More SMEs, more employment for the young.

T Furthermore, SMEs have become the focus of efforts by most governments of developing countries and developed countries alike because of the major role they play in increasing production, gross national income and employment. Since the late ‘90s of the last century, the number of small and medium-sized enterprises increased to constitute up to 90 percent of the volume of economic projects, contributing to the employment of 50 to 60 percent of the global workforce. Yet that percentage bowls over that of the Arab countries. While it varies from one country to the next, in the GCCs, 85 percent of the volume is driven by the industrial sector. The interest of the summit in SMEs in the Arab world represents a breakthrough for the economies of Arab countries. These projects directly relate to the macroeconomics of any nation, and it’s now essential for countries to focus their attention on this sector by giving it the proper support and priority. The advancement of the Arab individual depends on it – both economically and socially. With regard to Saudi Arabia, the state of SMEs needs to be addressed in order to meet the particular needs of the Kingdom’s economy. It’s one of the leading countries in this field, and those involved with the entrepreneurship ecosystem must do what they can to study the existing projects and offer support where possible. In addition, new projects must be established. And they ought to be established with a vision of how they’ll fit into the social and economic development of the Kingdom. If we make the most of our budget surplus, the worthwhile projects won’t end in failure. Finally, in order to maintain our nation’s growth and meet all social demands – poverty and unemployment in particular – we need to develop thought out plans to achieve our goals. Indeed, all of our plans must have but one goal: the greater good of the people.

Jawhara Bint Turki Al-Otaishan


FOREWORD

It begins with a city

he Kingdom placed the goal of achieving development as a comprehensive concept within its priorities. Its planners, who have calculated the steps in this huge reform

development program, ought to be accredited with the many and varied social developments. The results have been a true measure of the progress of the nation. As an inevitable result of this planning, Saudi society witnessed noticeable economic development, along with a growth in new ideas and thoughtful initiatives that share the aim of achieving total excellence. Perhaps the most important of these is the emergence of Saudi women as a driving force. Their lively and sensible contributions in economic and social activity has led to their active and smart presence in available sectors. Women are engaging society with their strong intellect and charitable spirit. It’s a step toward women keeping pace with the changes, and so they do not lag behind and expand the gap between themselves and the rest of society. Saudi women have proven – through the scarce opportunities they were provided – that their contributions to the development of the Kingdom are essential and not secondary. And this is despite the obstacles that have been thrown in their path to keep them from exercising their role in society. The figures bear out the fact. Unemployment among Saudi female citizens was 26.6 percent in 2007, and then rose to 26.9 percent in 2008 and 28.4 percent in 2009. Studies suggest that the increase in the number of unemployed women is tied to the general increase in the number of Saudi women as a whole during the past few years. According to a 2010 census females now make up 49.1 percent of the population. The Saudi government should be given credit for its interest in the role that women can play in promotion of the national economy. It was demonstrated through the initiatives created and decisions made regarding women in the workplace, in addition to the increase in female university graduates. The result was 50,000 jobs for Saudi women over the past year – 19 times the rate of employment for women over the past five years. Nevertheless, there’s an urgent need for more to be done. 85 percent of job seekers are women. A genuine embodiment of the state’s efforts to involve women is evident in Al Ehsaa – the first industrial city for women in Saudi Arabia. This directly involves women in the development of the nation. The proposed city will attract investments exceeding SR1.5 billion and provide 5,000 job opportunities for Saudi girls. 60 factories will operate in the manufacture of clothing, leather products, sweets and food. This city will be a great step toward advancing women’s contribution to the overall development of the Kingdom.

T Moreover, the creation of such a city for women is a massive quantum leap toward supporting human resources, which are the fuel for our development as a nation. Such cities would decrease the unemployment rate in the Al Ehsaa region. We hope that it would be followed by similar initiatives from the rest of the Kingdom’s regions. Besides, women are the partners of men in all the spheres of life. Their development is a national need for both. In addition, the confidence that the Kingdom’s governors have in the potential of women serves as a great motivation for them to create and innovate. Yet Saudi women must not stand idly by, waiting for their concerns to be addressed. They must take steps themselves: Education and training programs can prepare them to be ready to participate fully in programs made available to them. Additionally, there are many policies that can go hand-in-hand with official efforts to reduce the rates of unemployment among women. These include more efforts to establish small and medium-sized enterprises (SMEs). SMEs can accommodate large numbers of female employees, and promote a culture of investment – both in time and money – among Saudi women.We have faith in, and appreciate, the value of the initiatives that have been put in place so far. Nevertheless, we still aspire to witness new horizons in the creation of career opportunities for women that meet the national need while preserving the regulations of Sharia law. We hope to make the most of technological developments to find solutions to resolve the problems which hinder employment among Saudi women.

Sita Bint Abdullah

ABDUL LATIF JAMEEL GROUP

Job distributors

he Abdul Latif Jameel Group (ALJ) have been the sole distributors of Toyota in Saudi Arabia for over 55

years. The group has additional stakes in such sectors as finance, media and real estate. However, what has made them a beacon in Saudi Arabia and the region-at-large is their corporate social responsibility efforts to foster sustainable job creation in the Kingdom. Their aim? To create 500,000 jobs annually in the Arab countries. High youth unemployment is readily acknowledged as one of the biggest challenges in the Kingdom. To address the challenge, ALJ established in 2002 the program Bab Rizq Jameel, which is part of Abdul Latif Jameel Community Initiatives. The courses they offer include vocational training, a taxi and truck ownership program, a small business program, franchise support and a “productive household” program that’s targeted at Saudi women who want to start their own businesses. So far, Bab Rizq Jameel has created approximately

T 190,000 job opportunities through their programming. ALJ’s commitment to job creation has also propelled them to encourage entrepreneurship in the Middle East. The company partnered with MIT in 2006 to create the annual MIT Arab Business Plan Competition. The winners receive loans and mentorship to launch their projects. The 6 winning teams (out of the field of 213) will be announced on April 25th 2013. At Saudi Arabia’s first Arabnet conference in November 2012 they sponsored the web and mobile development tournament. In 2003 ALJ launched the The Abdul Latif Jameel

Poverty Action Lab (J-PAL), a research center at the Economics Department at MIT that focuses on finding solutions to world poverty. It’s namesake is the father of Sheikh Mohammed Abdul Latif Jameel, ALJ’s chairman and president (who also happens to be an MIT Alumnus).

MOHAMMED ABDUL LATIF JAMEEL

ACWA POWER INTERNATIONAL

Independent power

ff the coast of Yanbu, Saudi Arabia, two large barges are lashed to shore. They’re two of a kind the world over:

self-contained, self-powering and with a workforce housed on board, these rapidly-deployable scows are desalinating 25,000 cubic meters of water a day to help alleviate water shortages. They’re operated by ACWA Power International, and the water they produce is but a drop in the bucket of the 2.37 million cubic meters of water that ACWA desalinates every day. And this is in addition to the 13,000 megawatts of power they produce. ACWA pursues water and power through developing, owning and operating independent projects. They’re currently working across 8 countries and 3 continents with a total of 19 assets in their portfolio. As of January that number’s about to jump to 20: ACWA was awarded the contract to operate the power plant Rabigh II, with a capacity of 1,1813 megawatts starting in the summer of 2016.

O Their intention is to move increasingly toward sustainable plants. The company declares on its website that “ACWA Power International fully acknowledges that burning fossil fuel to generate power and water has a negative effect on the environments and contributes to climate change.” They’ve committed to the goal that, by 2014, 5 percent of the energy produced in their portfolio will be from renewable sources. In a recent interview ACWA’s CEO and President Paddy Padmanathan made the the economic case for renewable: whenever oil is over $45, solar energy is a cheaper source in the sunny GCCs. In addition, ACWA has sponsored and led the establishment of the Higher Institute of Water and Power Technologies (HIWPT). Their purpose is to train local high school graduates in power plant and desalination operations. Located in Rabigh, Saudi Arabia, its second year in 2012 had more than 600 trainees.

PADDY PADMANATHAN

ACWA POWER INTERNATIONAL IS AN ALLWORLD 2012 ARABIA500 WINNER. ACWA POWER INTERNATIONAL RANKS 29TH IN SAUDI ARABIA AND HAS ACHIEVED 24 PERCENT GROWTH BETWEEN 2009-2011.


From KSA dominance to global acclaim

“The spirit of Arabia”


ADVANCED COMMUNICATIONS ELECTRONICS SYSTEMS

ADD HARMONY

ABDULLAH BAHABRI

kram Aburas, the CEO of Advanced Communications Electronics Systems (ACES) believes that KSA’s

telecommunications market in all its varied forms is one of the most advanced in the world. That only goes some way to explaining the desire of its numerous international partners to team up with his company. The 44-year old Aburas heads an organization achieving scale through mastery of an array of different types of telecommunication and infrastructure services. Their work is in fields as diverse as information centers, wireless networks, security systems, fiber optic networks and programs for wind and solar energy. With over 1,000 employees and an annual turnover in excess of $65 million, the company has risen to become the leading telecommunication contracting company in Saudi Arabia. There are a number of potential

ow – I am speechless. You were all amazing!!!”That quote – from a letter

sent by a grateful customer to Saudi tour operator Harmony – sums up exactly the feelings which the company wants to inspire. Customer testimony like that is the realization of Harmony’s motto, where it makes clear its aim to bring “The Spirit of Arabia” to the Kingdom’s visitors. Focusing on the business and luxury market, Harmony is set up to host and manage the visits of luminaries and dignitaries as well as the those seeking an indulgent holiday. Harmony’s programs offer visitors what it calls a portfolio of experiences. Among them are some truly unique itineraries designed to appeal to visitors of all kinds: photography tours, night exploration of the desert on board Harley Davidson motorcycles and organized visits to the National Museum are just some of the many available options.

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Harmony also partners up with leading hotels to offer a full service solution to its customers in-country needs. Harmony’s young Chief Executive Abdullah Bahabri says that the main obstacles faced by the company lie in the

difficulty of marketing a new product. Headquartered in Riyadh, and with its service offering focused there, a large part of the task facing Harmony in luring new business is to be creative in designing itineraries which capture the imagination. And while prioritizing such creativity, it goes without saying that none of the Harmony team can ever afford to lose their focus on quality and attention to detail. The company trains young Saudis to serve as guides escorting guests when they visit monuments and modern landmarks in Riyadh. This group now comprises 60percent of the company’s workforce. With an eye on the future, in 2013 Harmony is launching a special program for arrivals and immigrants residing in Riyadh in order to introduce them to the inventory of great heritage in the Kingdom.

ADD HARMONY IS AN ALLWORLD 2012 ARABIA500 WINNER AND RANKED AS A “STARTUP TO WATCH.”

areas for growth which Aburas identifies, among them what he calls mission critical communications infrastructure, railways and airports. Aburas argues that it would be unwise to limit the company’s ambitions by sticking to the Saudi market, and given the expertise and experience of its growing workforce, it seems inevitable that ACES will look to branch out into the rest of the Gulf States as well as North Africa and the wider Middle East. The company does not hesitate to participate in international seminars when the opportunity arises, helping its staff and industry partners to become familiar with global developments, while raising the company’s profile. Despite being in an industry traditionally in thrall to long experience, as one of the cohort of younger business leaders in the region it is not too surprising to hear Aburas

speak about the company’s attitude to social and environmental responsibility. He says that as the company goes forward it will look to remain successful while focusing on the environmental, social and economic growth of the region.

ADVANCED COMMUNICATIONS ELECTRONICS SYSTEMS CO, LTD-ACES IS AN ALLWORLD 2012 ARABIA500 WINNER AND WAS RANKED AS A “COMPANY TO WATCH.”

AKRAM ABURAS

AL-FAISALIAH HOTEL,A ROSEWOOD HOTEL

Luxury lodgings

or the second year in a row, the Al Faisaliah Hotel, A Rosewood Hotel received two prizes from the

International Travel Awards in Dubai: “The Number 1 Saudi Hotel,” as well as “The Most Luxurious Hotel in the Middle East.” In addition, Condé Nast readers and Business Traveller Middle East chose the hotel as the “Best Business Hotel.” Al Faisaliah Hotel has 153 rooms in addition to apartments, swimming pools, ten villas and 3 restaurants with indoor and outdoor lounges, as well as an event hall spacious enough to accommodate about 1,500 invitees. During the second quarter of 2013 the company is opening an extensive spa strictly for women: at 1,600 square meters, it will span 4 flours and include 13 treatment rooms, a fitness center, an indoor pool and private rooms for meditation and relaxation. Events held at the hotel evince the

F brand’s international aspirations. In mid-February the Al Faisaliah Globe Summit is scheduled to bring in a mixologist and four “world-renowned chefs” from France, Spain, Italy and Switzerland for 8 days of demos, masterclasses, lunches and dinners. Ever since it was founded in 1979, Rosewood Hotels and Resorts’ constant target has been to manage luxury hotels and resorts in rural and urban locations, while taking into account the cultural, geographic and historical significance of each country it operates in. These distinctive attributes, in addition to their attention to detail and outstanding service, have raised Rosewood Hotels and Resorts to the top of the hotel management sector. The hotel’s current managing director is Erich Steinbock.

ERICH STEINBOCK

AL FARRAD CAR RENTAL COMPANY

Luxury by the day

ounded in 2003, Al Farrad has grown into a leading car rental service by investing in quality

at every level. For a business which aims to differentiate itself with its VIP levels of service, going the extra mile to achieve the allure of luxury is a necessary indulgence. As well as a high end fleet of people movers, vans and cars available for self-drive hire, Al Farrad has made its VIP chauffeur service a central element of the business. This means making sure that the drivers are as well prepared and well presented as the limousines. Indeed Saud Warsi, the Director of Al Farrad, identifies the recruitment and retention of quality staff as a key aspect of maintaining success as the company continues to position itself as a natural choice for weddings, events and conferences throughout Saudi Arabia. The ongoing challenges for the business include the highest standards

F in vehicle maintenance, alongside renewing and expanding the fleet. The company also benefits from partnerships with a number of notable hotels and international chains. These include the likes of Al Faisaliah Hotel and Resort and Al Khozama Hotel, part of the renowned Rosewood Hotels and Resorts chain, as well as the globally recognized Mövenpick, Hyatt and Novotel hotel brands.

AL FARRAD CAR RENTAL COMPANY IS AN ALLWORLD 2012 ARABIA500 WINNER. AL FARRAD CAR RENTAL COMPANY RANKS 13TH IN SAUDI ARABIA AND HAS ACHIEVED 53 PERCENT GROWTH BETWEEN 2009-2011.

SAUD WARSI


BANQUE SAUDI FRANSI

The Franco-Saudi banking alliance advances forward

stablished by royal decree in 1977, Banque Saudi Fransi is an affiliate of the Crédit Agricole Group which

holds an equity interest of 31.1 percent. It offers both commercial and retail services. Banque Saudi Fransi is the fifth-largest bank in Saudi Arabia by market capitalization. Its current managing director is Patrice Couvegnes. The past couple years have seen company-wide development across the turbulent, international economic crisis-driven market. 2012 only saw an increase of 3.9 percent in net profit over 2011, alongside finalizing formalities for merging three of its subsidary companies – CAAM Saudi Fransi, Calyon Saudi Fransi and Fransi Tadawul – into the single entity of Saudi Fransi Capital. The Board of Directors approved a structural re-organization to improve communication and linkage between units, and the retail division continued its customer-centric shift. At the end of 2012, Banque Saudi Fransi

E closed a SR1.9 billion, Tier 2 Islamic bond issue. Up to SR2.5 billion was approved by the Saudi Central Bank. The re-capitalization effort followed up on a period of strong lending growth. Banque Saudi Fransi emphasized in its annual report that in 2011, its “loan book” increased by 14 percent, “positioning [BSF] above the Saudi Banking Sector overall performance (+10.65%)… without compromising the asset quality and the credit worthiness of the Bank.” Profits at the bank going into 2013 have increased dramatically. In the fourth quarter of 2012 Banque Saudi Fransi beat expectations by reporting a net income of SR808 million – an increase of 22.2 percent over the same quarter in 2011, and a similarly dramatic increase of 22.1 percent over the third quarter of 2012. The growth comes on the decision on the part of the government to increase expenditures in building and infrastructure projects; the announced budget had an 18.8 percent increase over last year.

PATRICE COUVEGNES

ALMARAI

Green and gold

rince Sultan bin Mohammed bin Saud Al Kabeer partnered in 1977 with a couple of Irish

brothers, Paddy and Alistair McGuckian. These Irishmen had grown their small agricultural consultancy firm to the multibillion farming-systems company Masstock Group Holdings. Together, they created Almarai. It’s inception was a byproduct of the oil industry; increasing petrol prices led to a Saudi-fear of boycotts by the big agriculture businesses based out of the US And Europe. Masstock sold its last stake to Saudi shareholders in 2004. But over the past 46 years it’s become the Gulf’s largest food producer. The nearly 1,000 million liters of milk produced last year make dairy products its mainstay, but Almarai since expanded into other foods, juices, baked goods, poultry and baby formula. Their revenue has just about tripled in the past 5 years and its share value is up 125 percent since the company went public in 2005.

P Almarai has cornered an astonishing 44 percent of the dairy market in the region. Their products straddle more typical Middle Eastern products – haloumi, dates, labneh and mamoul – with more typical Western fare, whether sour cream or waffles. Growth at the start, Almarai emphasizes, was quite modest. Two decades after its founding the company’s annual revenues barely crested SR1 billion. Since then sales have grazed SR8 billion. This growth comes comes on the back of cows that are producing – Almarai proclaims – almost twice the amount of milk produced by European cows. The air-conditioned shelters in the middle of the desert house more than 60,00 heads that are force-fed directly. The company’s growth also caught the rapidly expanding – and urbanizing – population in Saudi Arabia. Prince Sultan bin Mohammed bin Saud Al Kabeer, 59, has quietly flourished. The largest individual shareholder at 28.6

percent, he has a fortune estimated to be in the vicinity of $2.8 billion. Al Kabeer’s other interests include the Saudi Arabian insurance firm Arabian Shield and the Yamamah Saudi Cement Company. He chairs 5 other companies and counts among the founders of 15 more.

MOHAMMED BIN SAUD AL KABEER


vehicles to meet the needs of its vast range of clients. In 2012 the company entered a new phase with the establishment of a heavy machinery rental division. This could have seemed like a departure for a company with such a longstanding tradition in transport solutions, but in fact it grows out of the same belief that the market values commitment to high quality service and transparency. It also reflects Hanco’s belief that it is well positioned to meet the needs of customers as they consolidate vehicle and plant hire – after all, if you are trusted as a reliable and efficient provider of commercial vans and corporate chauffeur services, you can have confidence that your clients will look for the same attributes when leasing cranes and generators.

AL TALA’A INT’L TRANSPORTATION CO. LTD (HANCO) IS AN ALLWORLD 2012 ARABIA500 WINNER. THEY RANK 15TH IN SAUDI ARABIA AND HAVE ACHIEVED 41 PERCENT GROWTH BETWEEN 2009-2011.

AL TALA’A INT’L TRANSPORTATION

HAMAD AL SULAIMAN

Heavyweight rentals

eadquartered in Jeddah and with 17 regional offices around Saudi Arabia, Al Tala’a International

Transportation Company, better known as Hanco, is one of the most recognizable names in the Kingdom’s vehicle rental sector. Established more than five years ago, under the leadership of Managing Director Hamad Al Sulaiman it has expanded over time to become one of the top three companies in the Saudi rental marketplace. After a period of impressive growth the company now boasts a network of 95 rental outlets and 15 vehicle workshops spread across all the major cities throughout the Kingdom. It is an impressive network, designed to support the fleet of more than 17,000 vehicles which Hanco now operates for rental and long term lease. As well as the traditional you-rent-it, you-drive-it model, offering the likes of family sedans and 4x4s, the company boasts a number of alternative services which have been developed over time to respond to the

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needs of its varied clientele. Alongside a chauffeur-driven option, customers can choose from a select fleet of luxury cars. Additionally, the fleet contains various kinds of practical commercial

AL RAJHI BANK

SULAIMAN ABDUL AZIZ AL RAJHI

Banking giants

l Rajhi Bank is one of the oldest banks in Saudi Arabia and is currently the largest Islamic

bank in the world with total assets of SR 221 billion. Founded in 1957 by brothers Sulaiman and Saleh Abdul Aziz Al Rajhi, the pair got their start in the 1930s by setting up a foreign exchange agency used by pilgrims traveling to Islam’s Holy Cities in Mecca and Medina. By 1978 the group’s trading and banking activities were merged under one entity, Al Rajhi Trading and Exchange Corporation. And in 1987 it was converted into a joint stock company. In 1983 the brothers won permission in Saudi Arabia to operate under Shariah banking - an Islamic form of banking that restricts taking interest on loans. The the key to Al Rajhi Bank’s success has been in the ease of bridging the gap between Shariah banking and the west. In 2006 Al Rajhi decided to expand internationally and entered the Malaysian market. They are the first foreign bank

A to be awarded a full-banking license by the Bank Negara Malaysia, where they now have 19 branches. Al Rajhi also expanded their operations with a branch in Kuwait in 2010 followed by two branches in Jordan in 2011. In January 2013 it was announced that Al Rajhi achieved the highest profits among all Saudi Banks. The bank achieved a net profit of SR 7,885 million in 2012 compared to the SR 7,378 million of the year 2011, representing an increase of 7 percent. In 2011, and at the age of 91, the bank’s Chairman Sheikh Sulaiman Abdul Aziz Al Rajhi started distributing most of his wealth — estimated at around $7.7 billion — to his endowments, philanthropic activities

and his children. In yet another effort to contribute to the development of Saudi he founded Al-Watania Agricultural Company, the largest poultry farm in the Middle East with a policy to be 100 percent organic.


ARABIAN OUD

ABDUL AZIZ AL-JASSER

The sweet smell of success

n 1982 Sheikh Abdul Aziz Al-Jasser, chairman of Arabian Oud, opened his first store

in Riyadh, Saudi Arabia with an initial investment of $1360. Oud - also known as Agarwood - has been used in the Arab world for centuries. Arabian Oud is the first company to take oriental perfume to the global market. Today, the company is the world’s leading distributor of eastern oil fragrance with 600 retails stores in 17 countries. Their goal for 2013 is to nearly double their stores to 1000. When it came to expansion, Al-Jasser decided not to go the wholesale and distribution route, but to rather open Arabian Oud retail shops. This allowed him to have direct control of the brand. In 2000 and 2004 Arabian Oud

I opened two large flagship stores on two of the world’s most fashionable streets: Oxford Street in London and the Champs Élysées in Paris. Al-Jasser is still expanding heavily in the Middle East, Europe and Asia. Setting up a dominant presence in America is part of the brand’s goals over the next couple of years. Franchising is key to the company’s rapid success. Arabian Oud is present in 26 cities, with revenues that exceed $200 million. As part of the franchisor role the company provides ongoing extensive training and support for the franchisee. Regionally the company enjoys a 30 to 40 percent share of the GCC oriental perfume market. The market as a whole is worth around $3.3 billion, and has seen an average annual growth of 20 percent in the past 5 years. Their regional market dominance was proven when they nabbed 5 of the 14 awards at the 2012 Fragrance Foundation Arabia FiFi Awards in Dubai, often known as the fragrance Oscars.

BABY FITAIHI

Reaching an untapped niche

aby Fitaihi is one branch of the Luxury Goods Trading Company, which, in turn, is a subsidiary of

Fitaihi Holding. Baby Fitaihi is a retailer of children’s luxury accessories: “We’re the only company in the Gulf and even the Middle East to specialize in children’s luxury items,” says Mohammed Ahmed Fitaihi, CEO of the company. “We created a new market.” He notes that there is no direct competition for

his company on the local or even regional markets for the time being. Another factor that sets Baby Fitaihi apart is the aggressiveness of the approach adopted by the company in its market penetration

B efforts. “We’re now up to 18 branches,” says Fitaihi, pointing out that the 2008-2009 crisis had halted all expansion for Luxury Goods Trading Co. It wasn’t until 2010 that expansion resumed. “We’re fighting off global brands while eyeing globalization ourselves,” he says. Fitaihi stresses the importance of correct corporate governance for achieving his future plans, with an emphasis on accounting, legal issues and human resources. “We want to have the infrastructure set,” he declares, “to facilitate the massive expansion we’re planning from 2014 forward.” Fitaihi credits much of his company’s success to the efforts of the whole team, both management and staff. On the staff end, the company implements a hiring process to ensure the most adequate people come onboard: First, the company studies its consumers, and then hires those whose personalities resonate the most with that target market. As for the management end, Fitaihi places a great deal of confidence in the the

company’s top management board. He refers to it as a no-stars team, to underscore that the 6 people who make up the board each have an equal say and decision-making power. Baby Fitaihi is very active on the digital media front: In addition to using its Twitter and Facebook accounts for marketing purposes, the company has gone for a “bricks and clicks” approach with an e-commerce site. They’re looking to drastically improve this side of the business with new investments in IT and design. The most important function to look forward to with this development, explains Fitaihi, is the ability to track sales: The company can monitor what’s being sold, when, to whom and where the customers are concentrated. This is invaluable information, he continues, that will allow the company to tailor its offer and business model to fit each segment of the market.

LUXURY GOODS TRADING CO. (BABY FITAIHI) IS AN ALLWORLD 2012 ARABIA500 WINNER. BABY FITAIHI RANKS 8TH IN SAUDI ARABIA AND HAS ACHIEVED 68 PERCENT GROWTH BETWEEN 2009-2011.

MOHAMMED AHMED FITAIHI


BASETECH

BRAINS

KHALID SULEIMANI

Tech creators and consultants

spinoff of Base Consulting, BASEtech “shapes technology for business innovation,”

explains Khalid Suleimani, CEO of the company. “We turn technology into products usable by businesses.” SmartRooms is one such product; it’s basically a mission control room system to help businesses take a virtual step back to visualize their projects and track progress. In addition, it produces live feed-supported written reports to evaluate performance. But most importantly, it improves the sharing mechanisms for this data and auto-syncs to stay up to date. Another product, albeit more industry-specific, is Orcamp. Tailored to cater for a medical institution, it is an “advanced simulation tool” that enables the evaluation of various skill sets in personnel or applicants, i.e. procedural, leadership, communication or technical skills, in addition to even

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more on-the-job skills like radiation safety and trauma skills. It also doubles as a training tool in a highly realistic operation

environment with simulated equipment. While there are other, similar products on offer, Suleimani doubts BASEtech has any direct competition in the Saudi market. Add to that BASEtech’s other services like consulting and seed funding for startups, full serviced offices for international firms (targeted at foreign companies assessing their chances in the Saudi Market) and foreign investment consultancy. Suleimani explains that, when it comes to money in the Saudi economy, “If it’s not construction, it’s oil.” When first starting out, his company had to bootstrap because nobody wanted to get behind a tech startup. “The entrepreneurship ecosystem in the KSA is incomplete,” he states.

BASETECH IS AN ALLWORLD 2012 ARABIA500 WINNER AND WAS RANKED AS A “STARTUP TO WATCH.”

SALEH BIN JAHLAN

Mr. Fixit

he surge in construction in Saudi Arabia leaves a lot to be maintained. Building is one

thing; keeping it up is something else. Since 2002, Saleh Bin Jahlan has seen evidence enough of the market need. His maintenance company Brains Contracting Ltd. launched in 2002 with SR40,000. By 2009, the Dammam-based business grossed more than SR20 million providing facility management and technical services to universities, hospitals, government, private entities along with the oil and gas sector. Today, they’re considered one of the foremost in the field for the Eastern Province. Bin Jahlan recalls the difficulties of starting the business after his resignation from Aramco where he filled the post of maintenance engineer for 11 years. “The banks did not provide loans to new companies and businessmen,” he remembers.

T The ensuing years took Bin Jahlan through the highs-and-lows of startup life. His staff first grew to 10, and then contracted to 2 when the recession struck and he couldn’t cover payroll. Brains won contracts for two major projects, and then regional political problems shut both projects down. All that the company was left with was SR2 million in debt.

A major government project (worth SAR25 million) brought the moribund business back from the brink. And then within two years, Brains was able to pay back all of its debt. Then the contracts began to roll in: Saudi Aramco, Saudi Electricity Co., Saudi Arabian Industrial Company and Saudi Telecom Co. Now the Brains team has grown to more than 400 with 30 percent Saudization. 50 employees on the team of civil engineers, project managers, supervisors and tradesmen are women. And Bin Jahlan is expecting to grow the staff beyond 1,000 in the future. They’re pursuing the oil industry in earnest with MCE Gulf, a joint venture they formed with Germany-based MCE back in 2007.

BRAINS IS AN ALLWORLD 2012 ARABIA500 WINNER. BRAINS RANKS 17TH IN SAUDI ARABIA AND HAS ACHIEVED 33 PERCENT GROWTH BETWEEN 2009-2011.


BUPA SAUDI ARABIA

DELTA UNITED CONTRACTING

Premium insurance provider

Call connected

upa Arabia is “award winning” in the broadest sense. Year after year, the insurance giant receives an array of

accolades for its work. In 2009, Bupa Arabia took home the “Best E-Business Award” for the third time in four years at the Middle East insurance conference Insurex. The award was given for the service Basmah, a

elta United Contracting Co. was co-founded in 2005 by Aziz Assi (the company’s current CEO)

and licensed through SAGIA (Saudi Arabian General Investment Authority). The company is a telecom infrastructure contractor for operators and vendors in the Kingdom. Their main clients are some of the top telecom players not only in Saudi, but regionwide: Mobily, STC, Zain and Ericsson. The company was a pioneer in the growth of FTTH infrastructure in Saudi Arabia, in which fiber cables are brought almost into the home itself. In 2011, Delta’s rising stature in the market and future prospects were made plain when Dr. Ghassan Suleiman, a prominent Saudi businessmen and investor, acquired a majority stake in Delta. The main challenge the company faces is the shortage of qualified manpower. “Investing in training our workforce, whether in Saudi or by sending them

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biometric identification method that makes it easier for healthcare providers to register new members. Then in 2010, Bupa Arabia’s CEO Tal Nazer was voted the “Preferred CEO of the Year” at the second annual Kingdom of Saudi Arabia HR Gathering & Awards. That same year the insurance company was

ranked the “4th Best Work Environment” amongst all Saudi companies by an independent panel. 2012 rolls around and Bupa wins “The Best Working Environment for Women” award, and moves on up to third place for best overall working environment. 31 percent of its workforce are women - compared to the industry average that hovers around 4

percent. The Ministry of Labor has heaped praise, also noting that the company has achieved 51 percent Saudization. “Localizing our manpower is the core of our strategic planning for steady business growth and we are fully committed to train and recruit more young male and female employees,” Nazer remarked. For a change of pace, INSIGHTS Middle East decorated Bupa Arabia with the award for best call center. INSIGHTS had recognized them with awards in 2007 and 2008 for “Best Quality Assurance Program” and “Career Path.” As of January 2013 Bupa Arabia has pursued such high-profile corporate social responsibility initiatives as providing insurance to the 1,085 orphans at the “Ideal Raise Establishment” orphanage in Jeddah. Founded in 1997, Bupa Arabia now has 1.2 million customers. 40 percent of the company is publicly owned. Though associated with the worldwide, UK-based Bupa Group, Bupa Arabia is Saudi-owned and operated.

TAL NAZER

abroad, is key to the company’s growth,” says Assi. To attract that talent in the first place Assi emphasizes Delta’s highly competitive salaries. Because Delta has been growing at such a fast rate, Assi’s only concern now is “overstretching.” They’re having to turn down some clients. “We don’t want to expand too fast,” explains Assi. “The key is calculated expansion to ensure the quality of our projects.” He also adds that the motto of “quality and timely” is instilled in all Delta employees and management from day one. 2013 is a big year for Delta. They will be tripling their capacities, forming a consortium with 3 other international companies, and Delta will be expanding into Lebanon, Qatar and Iraq. In terms of numbers, SR40 million worth of projects are already in hand for 2013 with another SR100 million in the final stages of negotiations.

DELTA UNITED CONTRACTING IS AN ALLWORLD 2010 SAUDI FAST GROWTH WINNER. THEY WERE RANKED AS A “STARTUP TO WATCH.”

AZIZ ASSI


DIGITAL & ELECTRONIC SOLUTIONS DEVELOPMENT COMPANY

EDUCON FOR STUDY ABROAD

ANIS DAYYA

Fingers on the (technological) pulse

The student exchange office next door

he Saudi market is very open,” says Anis Dayya, general manager of Digital & Electronic

Solutions Development Company (known as Zonik). “There’s no exclusivity.” For the digital products distributor, this poses something of a challenge. The local company is invariably head-to-head with international heavyweights. Zonik, however, stands its ground. It’s breadth of international brands certainly helps: Samsung, Nokia and Philips. And their distribution is now up to 3,000 independent stores. The company has gone from B2C at the start to B2B because it “grew too big for retail,” according to Dayya. Zonik has also partnered with GSM operator Zain of Saudi Arabia to operate the latter’s retail and distribution business. “What sets us apart from competitors,” notes Dayya, “is that unlike most others in the business, we have a long term vision in all of our planning.”

n 2013, Al-Harith Waheeb Al-Qurashi, general manager of EDUCON for Study Abroad,

intends to revolutionize the sector. “Currently, you’d approach a student exchange office the same way you’d approach a lawyer,” he compares. “They’re neither very visible nor very accessible.” The new concept his company is going to launch in Saudi Arabia will be closer to that of a bank: There will be several branches and the outlets will be out in the street. This makes the exchange service closer and more accessible to everyone, including passers-by. “The inside of the outlet will be more of a showcase than an office,” notes Al-Qurashi. This concept will set EDUCON apart from its competitors who, according to the 30-year-old GM, all operate in the same way. “Money is not the reason we do this,” he assures. “We even refrain from giving

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financial-sounding names to the elements of our program.” This means EDUCON deals with students, not customers, who register for, not buy, services. EDUCON relies on word-of-mouth to get more students through the door. For that to work, the students have to be very satisfied with the service. The student relations office was created just for that purpose: Its job is to facilitate the

application process, maintain contact with the students once they’re in their host countries, and more importantly, after they’ve returned. A 24/7 emergency line was even set up so students abroad can feel secure to know they have a “lifeline” to their home country. “We’re in the education business,” notes Al-Qurashi, “so we’re working for the good of society.” A competent staff is a must to ensure smooth sailing, but it wasn’t very easy to find the right people: Top graduates in the KSA gravitate

towards large national and multinational companies, which leaves smaller ventures or startups with a much smaller pool of available talent.

EDUCON STUDY ABROAD IS AN ALLWORLD 2012 ARABIA500 WINNER. EDUCON STUDY ABROAD RANKS 3RD IN SAUDI ARABIA AND HAS ACHIEVED 299 PERCENT GROWTH BETWEEN 2009-2011.

Al-Harith Waheeb Al-Qurashi

Instead of the day-to-day strategies most companies in the industry operate within, he explains, Zonik plans three years ahead. First, clear objectives are set. Then, strategies are formulated to achieve those goals. And finally, the strategies are broken down to small, everyday tasks that accomplish those strategies. Though nothing beyond the usual business operations is on the company’s horizon for 2013, Dayya still considers it a very important year. “It’s big for us,” he states. “we’re looking at SR8 billion ($2.13 million) in sales.”

DIGITAL & ELECTRONIC SOLUTIONS DEVELOPMENT COMPANY (ZONIK) IS AN ALLWORLD 2012 ARABIA500 WINNER. ZONIC RANKS 6TH COMPANY IN SAUDI ARABIA AND HAS ACHIEVED 109 PERCENT GROWTH BETWEEN 2009-2011.


ELIXIR

Local and owning it

e don’t want to be the biggest, or the most profitable, or even the most well known,”

states the management consultancy Elixir on their website. “We simply want to be the consultancy company people trust the most.” This strategy is one of many in Elixir’s arsenal to combat its much larger, multinational competitors. The company banks on the fact that it’s a local partner to build and maintain ties with the market. This means developing, above all, locally relevant, sustainable strategies. “Since we are local,” says Hani Ibrahim Khoja, partner in Elixir, “we have much higher ownership of our clients’ issues.” Another factor that helps, states Khoja, is the name: Elixir is originally an Arabic word associated with immortality and mysticism. This makes the company more approachable for the Saudi market, he notes. The scope of Elixir’s services range from aiding local government entities in reducing unemployment via the creation of new jobs and encouraging entrepreneurship, to helping local businesses and nonprofit

“W organizations get established and grow, and even on to one-on-one coaching for individuals. “2013 is the year of expansion,” hopes Khoja. “We will expand our product offerings to include research, design, management, & execution.” Internally, the company is working on developing new core competencies in Internet and social media. This should improve internal communication, which should come in handy once the company goes ahead with its plans to double the size of its current staff. “Our goal is to be the most trusted consultancy company in Saudi Arabia by the end of 2015,” Khoja elaborates, “and we are well on our way to achieving this ambitious goal.” Though it is coming along, the expansion is easier said than done: Like many other Saudi companies, finding and retaining talented staff is the main challenge Elixir faces. In fact, the only thing stopping the firm from accepting the exceptional number of client projects is the lack of human resources. There are even projects that had to be temporarily frozen until this issue is dealt with. This doesn’t, however, lower Elixir’s standards for hiring: “We are very

picky and this is reflected in our recruiting process,” Khoja clarifies. “Candidates must go through a very rigorous process; therefore, the success rate is low.”

ELIXIR IS AN ALLWORLD 2012 ARABIA500 WINNER. ELIXIR RANKS 7TH IN SAUDI ARABIA AND HAS ACHIEVED 78 PERCENT GROWTH BETWEEN 2009-2011.

HANI IBRAHIM KHOJA

FAWAZ AL HOKAIR GROUP

The winning trifecta: leisure, food and fashion

audi Arabia, with a population of around 28 million, is one of the largest consumer economies in the

Middle East. That population is exceedingly youthful — around 30 percent of Saudis are between the ages of 15 and 29 — and likely to spend much of their disposable income on consumer goods, such as food, clothes, and electronic items. Here, Al Hokair Group has been able to make immense gains. Dr. Fawaz Al-Hokair founded the group in 1989, when he opened two menswear stores in Riyadh with his brothers. Since then the group has expanded into becoming the largest retail franchisee, shopping mall owner and developer in KSA. With over 72 of the top international brands under their belt — including Zara, Marks and Spencer and Aldo — the group houses them in any number of their 12 malls in the Kingdom, or in their 1000 plus stores.

FAWAZ AL HOKAIR

The group also has a hotel division that includes the Marriott Courtyard, Four Points by Sheraton and Aloft Hotels. And as a food franchisee they operate 11 regional and international brands such as Cinnabon and Tony Roma’s. Al Hokair group has also expanded internationally. Their first venture in 2006 was the City Stars Mall in Egypt, a project also featuring their brands. And In 2011 and 2012 they opened shopping malls in Azerbaijan and Armenia, as well as launching brands in Georgia and Kazakhstan. How will it look for the group in 2013? In addition to acquiring more brands and building more shopping centers, let the numbers speak for themselves. In January 2013 they released their cumulative net profit for the nine months ending in December 2012 of SR483.82 million — an increase of 34.4 percent compared to the same period last year.

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FUTURELAB

FAYAD DANDASHI

The doctor is in

want to build a portfolio of healthcare companies in Saudi Arabia that are also capable of expanding in the

region,” states Dr. Fayad Dandashi, founder of FutureLab, which provides medical laboratory services. It was initially set up as a subsidiary of FutureMed in 2008, and became a fully independent company a year later with 11 clinics in Jeddah, Riyadh and Makah. The domestic expansion was made possible by the increasing expenditures in health care, Saudi Arabia’s population growth and rising GDP per capita. KSA is actually one of the largest markets in the MENA region for medical laboratory services. FutureLab offers an extensive list of medical tests, in addition to test bundles such as the STD, pre-marriage and pre-pregnancy tests. And for those unable to reach the testing facilities, the company offers house calls for an extra fee. The insufficient supply of qualified labor problem that many businesses in

“I the Kingdom suffer from makes it hard for Dandashi to staff his team with the necessary personnel. Although governmental regulations make this an obstacle, he tries to tend to it by increasing his company’s retention rate: “We try to provide a fulfilling, rewarding, exciting and empowering work environment,” he says. “It is well known that your competition can copy your equipment, products and procedures; but they can’t duplicate your intellectual

capital.” FutureLab’s operating procedures encourage employees to be confident and proactive in meeting the needs of clients. The knowledgeable team is the core asset of FutureLab, notes Dandashi. Besides retaining personnel, FutureLab is concerned with retaining its customers and attracting new ones. The only marketing effort the company does is to provide excellent service. To accomplish that, notes Dandashi, they focus first on quality, which is where the competent staff comes in. Second, he ensures great customer service by respecting patients’ privacy and treating them with “dignity and sympathy.” He hopes to further expand within the Saudi market as well as to move beyond the borders by late 2013 to early 2014.

FUTURELAB IS AN ALLWORLD 2012 ARABIA500 WINNER. FUTURELAB RANKS 4TH IN SAUDI ARABIA AND HAS ACHIEVED 199 PERCENT GROWTH BETWEEN 2009-2011.

FEMI9

Saudi fashion: It’s not all abayas

t’s hard to impress people by being a local brand,” notes Eyad Mashat, CEO of the Saudi-based women’s

fashion brand Femi9. Their collection includes everything from evening gowns to sportswear and chic everyday outfits: dresses, trousers, tops, skirts. There seems to be a knee-jerk reaction in the local market, Mashat points out, that associates the fact that a product is imported with it being superior to its local counterparts. Especially when the sweeping majority of local clothiers make abayas - and abayas only. Being a fairly new concept in the Kingdom is not without its perks, though. It certainly eliminates any perceivable local competition. However, this puts Femi9 at odds with international brands abundantly available across the country. But it’s a “healthy” competition, according to Mashat, the Saudi clothier says it pushes his team to follow suit. Femi9 main showroom is located in one of the most popular malls in Saudi

“I Arabia. The exposure this provides has made it possible for the company to lower the advertising budget to nil. The location draws in customers all on its own, but it’s the stylish designs and affordable prices that keep them coming back. Femi9’s designers come from various backgrounds, with 60 percent from across the Arab world. “Finding designers in the KSA was not an easy task,” Mashat recalls. Femi9 has managed to set up shop in several Saudi cities, plus Bahrain, Egypt, Syria and as far away as Switzerland. But Mashat reveals more expansion is in the cards: By the end of 2013, Femi9 should open in Dubai, and within the next three years, the designer should be available all over the GCC. “It’s the emphasis on the fundamentals of branding that sets us apart from local competitors,” says Mashat. “We’re building a brand.”

FEMI9 IS AN ALLWORLD 2012 ARABIA500 WINNER. FEMI9 RANKS 10TH IN SAUDI ARABIA AND HAS ACHIEVED 64 PERCENT GROWTH BETWEEN 2009-2011.

EYAD MASHAT


and we have a number of large projects that will keep us busy throughout the year. In General, the Saudi market is on the right track of positivity.” Affiliated with the Dr. Samir Abbas Group, its current CEO is Mohammed Abbas.

GT MEDICAL IS AN ALLWORLD 2012 ARABIA500 WINNER. GT MEDIC RANKS 19TH

IN SAUDI ARABIA AND HAS ACHIEVED 21 PERCENT GROWTH BETWEEN 2009-2011.

AL GHASSAN MOTORS

GT MEDICAL

In pursuit of healthy living

T Medical was founded with an ambition to accomplish two things: improve health services in the

Kingdom, and gain a reputation as one of the leading companies in the sector by the year 2018. To achieve these goals the company prizes an entrepreneurial spirit amongst its founders and an intra-preneurial spirit amongst its employees, a well-thought marketing plan, cutting edge equipment long-term partnerships and a commitment to its partners. After expanding over the course of the last decade, the company now comprises three divisions: medical equipment, pharmaceuticals and consumer health. Across the three units, annual growth has come in at over 100 percent over the last few years. It was also ranked eleventh on the list of the 100 most prominent Saudi companies and first among companies that offer health services during the Fifth Summit of

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Chariots fit for the Kingdom

have always looked at my business through my customers’ eyes,” says Ghassan Abdulrahman Alsulaiman,

president and CEO of Ghassan A. H. Al Sulaiman Trading Establishment. “My own past experience as a buyer and owner of premium cars has given me insight into the real expectations of our clients.” Also known as Al Ghassan Motors, the company is the exclusively appointed

“I distributor for Bentley, Lamborghini, Bugatti, McLaren and Lotus in Saudi Arabia as well as for Lamborghini, McLaren and Lotus in Bahrain. As of recently, the group has been officially appointed as the Lamborghini dealer in the Côte d’Azur, France. “For our consumers,” notes Alsulaiman, “the purchase of one of our cars is not done out of necessity, but rather out of desire.” That, and the fact that a purchase costs a significant sum of money, is why Alsulaiman believes a personal relationship with the client must be forged if business is ever to be done. Al Ghassan Motors ensures those relationships through extreme attention to detail, both before and after the sale. This serves to customize the product and service as much as possible to cater to each customer’s expectations. Maintaining this high level of individualized service proves to be a challenge, notes Alsulaiman, as the company grows at a staggering rate. 2013 is barely in its second month, and already on

the horizon there are several new models to be launched: The Bentley Flying Spur, the Lamborghini Aventador Roadster, the McLaren MP4 12C Spyder and the McLaren P1 are among the confirmed. Al Ghassan Motors has plans already on their way to accommodate this development: New sales and after sales facilities are under construction in Jeddah, Riyadh and Bahrain to support the increase in customer numbers that the company forecasts. Though luxury is at the heart of what Al Ghassan stands for, the group is also involved in grassroots motorsports. Al Ghassan Motors is the distributor of CRG, Sparco and Rotax products across the GCC region, on top of being a partner in Al Reem, the first FIA approved racing circuit project in KSA.

GHASSAN A. H. AL SULAIMAN TRADING ESTABLISHMENT IS AN ALLWORLD 2012 ARABIA500 WINNER. THEY RANK 18TH IN SAUDI ARABIA AND HAVE ACHIEVED 29 PERCENT GROWTH BETWEEN 2009-2011.

GHASSAN ABDULRAHMAN ALSULAIMAN

the Global Competitiveness Forum held in Riyadh in January 2011 in the presence of former US President Bill Clinton. Alongside its existing businesses, the company is building a 100-bed hospital in Jeddah, where the group’s headquarters are to be found. This will complement the specialized medical care centers which are to be found throughout Saudi Arabia as well as its genetic laboratories group. GT Medical also operates the longest-established IVF center in the Kingdom, acting as the agent for such companies at Labotec, MTG, Ultrasonix and ZDL. Its international partners in the pharmaceuticals field include the Tornoto-based Jamieson Vitamins, the skin care providers Robelyn Labs and Ren, the cosmetics company No-Germs and Health Tech Inc.’s Sweet Breath product line Concerning his expectations for 2013, Chief Executive Mohammed Abbas says: “We have a very positive outlook for 2013

MOHAMMED ABBAS


INTERCONTINENTAL TRAVEL

INNOVATIVE CONTENT ADVERTISING AGENCY

A Saudi traveler’s three favorite letters

External partners and internal clients

ith over $150,000 debt and less than $2 million in sales to make up for it, the travel agency

InterContinental Travel Company (ITC) wasn’t in its best shape back in 2005. Still, Khaled Alfadl decided to buy it without much help from local banks: “They don’t support this industry,” he notes. ITC has since grown to 5 branches with two more to open in Al-Khobar and Riyadh within the next two years. Alfadl is, however, fearful of the current political situation: “The travel and leisure sectors are always the first to take the hit,” he points out. “With turmoil spread around the MENA region, Saudi travelers are left with few popular destinations to choose from.” Alfadl has a hands-on approach for managing ITC from its Jeddah headquarters, an approach he expects his now 35 employees to adhere to as well: They are to remain available to customers 24/7. This will, in return get them higher commissions out of the $24 million sales volume. Staff are a very important asset for Alfadl;

ajed Abdulrahman Al-Othaim, CEO of Innovative Content Advertising Agency, considers

any client of his firm to be a partner in the enterprise. The relationship is symbiotic, he notes, as the interests of both need to be met for the partnership to be successful. To pull off this kind of work ethic, it’s not enough that just the CEO adheres to it. The ethic has to run its course down the hierarchy all the way to the receptionist. For this particular reason, Al-Othaim places a great deal of weight on training and employee development. “An ad may be perfect,” he points out, “but if the person pitching it isn’t trained enough to get the message across properly, the client may still turn it down.” Not only is the client considered a partner under Al-Othaim’s watch, but staff members are considered inner clients. “Just as you would put so much effort to please a client,” he notes, “you need to provide your staff with the best conditions possible to work and innovate.” Innovative Content’s branding strategy has two main pillars: reputation and holistic integrated services.

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he attributes most of the 20 to 30 percent annual growth rate to the competence of its key team members. It was a challenge, Alfadl recalls, to hire a good team: finding the talent locally was difficult and importing internationals meant going through lengthy visa processes. Forging relationships with prestigious airlines added to that growth, as did the

reliable communication channels established with customers. The most effective of those channels, according to Alfadl, is ITC’s branding. “Branding,” he notes, “is all about being recognizable and having a good reputation.” The Saudi market has in fact become very familiarized with the acronym ITC to the point where it’s the only advertising the company needs. This fact steered the entire branding efforts to be centered on these three letters and what they mean to the Saudi consumer. Though ITC enjoys a great deal of success, Alfadl is not entirely satisfied with the company’s status: “We can do better,” he asserts. Heavy investment in e-commerce and social media are top priorities for the agency. ITC had pioneered online and mobile booking in the KSA, but these investments will improve the website’s performance even more, Alfadl hopes.

INTERCONTINENTAL TRAVEL CO IS AN ALLWORLD 2012 ARABIA500 WINNER. THEY ARE RANKED 12TH IN SAUDI ARABIA AND HAVE ACHIEVED 55 PERCENT GROWTH BETWEEN 2009-2011.

KHALED ABDULLAH ALFADL

MAJED AL-OTHAIM

A good reputation, according to Al-Othaim, means credibility. Being an advertising agency, the company is well equipped to get that message across the media; but it’s the client’s actual experience with the company that solidifies it. This is where the investment in training and providing the ideal work environment pays off. Personnel have all the necessary skills and tools to deal with clients before, during and after a project. “We don’t sell,” asserts Al-Othaim. “We build relationships.” “When a client comes to us for a project, they’re entrusting us with their whole identity,” Al-Othaim says. “We have no choice but to care for every detail and present every service needed from us.” The company has often gone beyond handling an assigned project to offer solutions they felt their clients needed. The coming year will see significant expansion for the company, Al-Othaim discloses. Albeit these developments will all be confined to cyberspace: The agency intends to add electronic and digital features to complement their branding efforts. Geographically, though, the

company is “sticking to the Saudi market,” he notes.

INNOVATIVE CONTENT ADVERTISING AGENCY IS AN ALL WORLD 2012 ARABIA500 WINNER, AND RANKED AS A “STARTUP TO WATCH.”


KINDASA WATER SERVICES

Bottling the sea

hen it comes to making the sea potable and available to Saudi

consumers, Kindasa tops the list. The company was the first private entity to venture into the much-needed seawater desalination sector back in 2000. “It is by no means an exaggeration,” declares Fayez Habbab, director of public relations at Kindasa, “if we declare ourselves peerless.” He maintains his company remains a pioneer in the industry as it continues to produce 50,000 cubic meters of high quality -low salinity -fresh water per day. Production is scheduled to increase as of early this year by 8,500 cubic meters per day, and then further in 2014 to 15,000 extra cubic meters per day. Expansion into Jordan is also in the calendar.

W Headquartered inside the Jeddah harbor, with Fawzi Habhab as CEO, Kindasa has operated beyond the Saudi border with their operations in Hudaydah, Yemen. In addition, a branded Kindasa ship distributes fresh water to ships at sea. The company seeks to mainstream the idea of privatizing the desalination as well as the sewage treatment sectors, notes Habhab. It grew with a rate of 215% between 2004 and 2008. Kindasa Water Services was ranked 24th on the list of the fastest growing Saudi companies during the year 2010.

KINDASA WATER SERVICES CO IS AN ALLWORLD 2012 ARABIA500 WINNER AND WAS RANKED AS A “COMPANY TO WATCH.”

FAWZI HABHAB

KINGDOM HOLDING

Dividends through diversity

ingdom Holding: founded by billionaire Prince Alwaleed bin Talal, the region’s richest man built

his business (not to mention his fortune K and reputation) off of a bold buy: 4.9 percent

(worth $207 million) of the floundering financial services company Citicorp in 1990. He then spent another $590 million on preferred shares, bringing his stake up to 14.9 percent. The bank soon found the rest of the investors that it desperately needed, its shares rebounded, and the value of his investment skyrocketed. The “Arabian Warren Buffet” – as Time styled him – was born. The region’s richest man owns 95 percent of Kingdom Holding, with the remainder public. Today, the company’s wide-ranging investments include Amazon, AOL/Time Warner, Apple, Coca-Cola, Ford, eBay, Hewlett-Packard, News Corporation, Procter & Gamble and The Walt Disney Company, to name a few. December 2011 saw a $300 million investment on his part in Twitter – a 3 percent share that blossomed in value to the tune of $8 billion by the late summer. Kingdom Holding’s investments are invariably high-profile; whether we’re talking Citicorp back in the early 1990s, Euro Disney soon after, London’s famous Savoy Hotel in

2005 or Twitter in 2011. He’s also responsible for Kingdom Tower, which, at 1 kilometer high, will be the tallest in the world. His personal purchases can be equally flashy: take his $485 million Airbus A380 “Flying Palace.” It’s the largest passenger aircraft available equipped for one and an entourage, with space enough for horses, a brace of Rolls Royces and a rotating prayer room to boot. In 1996 he established The King Foundation to coordinate his philanthropic activities – spearheaded by his wife Princess Ameerah Al-Taweel. The foundation, entitled the Prince Alwaleed Bin Talal Foundation as of 2003, trumpets “commitment without boundaries” and geographically divides itself between Saudi Arabia, Lebanon (the birthplace of his mother) and then the rest of the globe. Most recently, Kingdom Holding has made a push into Islamic financing. The company has established a committee to guide the company in the direction of Shariah-compliant loans.

PRINCE ALWALEED BIN TALAL


MIDRAR

LOMAR

The Kingdom’s clothier

Accelerated development

o-founder Loai Naseem’s aspirations are clear for Lomar’s re-designed thobes. “I want to see

my boutiques in New York, Milan, and in all the fashion cities in the world. This is my vision.” He’s on his way. Currently, Naseem has six stores in Saudi Arabia, over 140 employees, and a widely recognized brand. A franchise application is available directly on their website coupled with a complete Q&A that spells out the details. To get to this point however, Naseem’s path has been strewn with the bones of 15 failed startups, in industries as varied as car repair, real estate and jewelry. He then picked up and moved to Houston, Texas with his wife and 1-year-old child to study graphic design at an art school. He describes his move to the U.S. as a turning point in his life, noting that “If I had not come over to America, I would have been a failure until now.” Three years later, upon returning to Jeddah, he was appointed as art director

he Jeddah-based development management company Midrar moves fast. The company, founded

by Dr. Rehab Reda, the managing director and CEO, and Dr. Mohammad Jared, its vice-president, started in 2007 with two contracts bagged from day 1. “I think this was probably the fastest company ever built,” Reda remarks. Their staff increased from the founders to 25 within a year, and by the end of the first fiscal year, they’d returned on all capital invested. The second year their dividends quadrupled over the first – their growth rate was approaching 300 percent. Midrar promises efficient solutions for real estate development, beginning with feasibility studies, on through the final construction and beyond with maintenance. That they’ve worked together in the past certainly aided the rapid growth; the two attended King Abdul Aziz University in Jeddah together, and later worked at the holding company The Savola Group. There, Reda was VP of projects at the real estate division.

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for Leo Burnett before co-founding 3points Advertising Agency in 1998. During this time, Naseem began designing his own thobes to wear with the help of his wife and tailor – a side project that grew to over 100 clients by 2004. The next year he and his wife founded Lomar. Sales immediately climbed to SR1.5 million, and the duo has since become the sole provider of graduation robes for the 5,000 yearly graduates of King Abdul Aziz University. Naseem is bullish about Lomar’s prospects. “The market is still fresh in Saudi Arabia, and

I want to change the way of thinking in fashion.” To drive this change he’s producing a minimum of 24 new designs a year, plus a line of children’s thobes.

LOAI NASEEM

In addition, the company was incubated by the Jeddah-based Siraj Capital. “Money was not the issue,” Reda remembers. “We wanted to have partners who could help us.” Reda and Jared discussed the idea of founding a company for a good five

years before finally taking the step. Yet it was the years of their combined business experience that convinced them of the need in the market for an independent, development management services company. Their major projects include (but are certainly not limited to) conducting the feasibility studies and managing both design and construction of the Madinah Medical Colleges in Saudi, overseeing the construction and design at the Headquarters Business Park in Jeddah, construction at Jeddah’s Lamar Towers, and extensive services for the Al-Shara’i Gated Community in Mecca. Midrar has also expanded into transportation services, ranging from traffic planning and surveys to ITS solutions (intelligent transportation systems) to public transportation strategies.

MIDRAR IS AN ALLWORLD 2010 SAUDI FAST GROWTH WINNER AND WAS RANKED AS A “START-UP TO WATCH.”

REHAB REDA


Dialing into youth

ince entering the market in 2005 the tactics of the telecom carrier Mobily have been to heavily

target the Saudi youth. They were S

MOBILY

the first telecom company in Saudi to design a special package (Falla) aimed at a younger generation, and their oftentimes humorous commercials target

an under-25 demographic. And in 2011 they partnered up with Eysh Elly, the top online web series in KSA. The show - notably created by young Saudis - has a staggering 135 million views so far. Mobily has also tapped into the country’s soccer mania by being the official sponsor of the Riyadh-based club Al-Hilal. Their marketing has paid off. Mobily has 251K followers on Twitter and 612K on Facebook. In a 2012 study by Riyadh-based social media consultancy The Social Clinic, Mobily ranked among the top 5 Saudi brands.

In keeping up with smartphone application development, Mobily hosted in 2012 its first application developers conference. The event encouraged entrepreneurship in the country by bringing in speakers and hosting workshops on building apps and finding investors and partners. The conference also included the developer’s Awards with a prize of $90,000 divided between 3 winners. They have also set up a permanent app development section on their website where developers can create and sell their apps through Mobily. Mobily broke into the Saudi market after winning a bid to be the second GSM carrier in the Kingdom - the first of which is Saudi Telecom Company (STC). The UAE firm Etisalat owns 27 percent of the Mobily, with 45 percent held by 6 strategic local partners. 20 percent of the company is publicly owned. Mobily’s current CEO is Khalid Al Kaf.

KHALID AL KAF

MOHAMMED OMAR KABLI TRADING ESTABLISHMENT

Driving sales

ith five auto service centers and six auto parts retail outlets in Jeddah, and a Kingdom-

wide auto marketing and distribution division, Mohammed Omar Kabli Trading Establishment, known as Universal Cars, ranks as one of Saudi Arabia’s leading auto parts distributors. Nevertheless, Mohammad Omar Kabli, owner and manager, is quick to name a few challenges facing the company. First, the local workforce does not have enough people with the right skillset in this particular field. Kabli also notes that the institutions in charge of training people for the industry are not up to par with the market’s needs. Second, the Saudization laws are narrowing the pool of human resources, as it imposes high quotas for hiring Saudi employees. Third, Kabli cites a paucity of vision from the market for the future. There’s insufficient planning for the long-term interests of the industry.

W To soften the blow from the labor market, Kabli implemented internal training and development plans for his staff. These procedures have been in place for over 20 years now. Attracting customers is no longer a problem for Universal Cars; the company has been in business since 1987. It banks on its history of always rising above all the ebbs and flows that the industry can go through. Kabli says that, as a company, they “simply ask what our customers want, be it through follow-up e-mails, phone calls, or even during events that we organize specifically for this purpose.” Kabli mentions that Universal Cars is planning expansions in its offered maintenance services. Details on that subject, though, are yet to be disclosed. He does, however, assure that geographic expansion to Riyadh and Medina (out of his native Jeddah) are definitely on the horizon for the year 2013.

MOHAMMED OMAR KABLI

MOHAMMED OMAR KABLI TRADING EST.- UNIVERSAL CARS IS AN ALLWORLD 2012 ARABIA500 WINNER. THEY RANK 16TH IN SAUDI ARABIA AND HAVE ACHIEVED 39 PERCENT GROWTH BETWEEN 2009-2011.


NATIONAL TALENTS CO. FOR TRAINING AND EDUCATION

NAS AIR

Soaring ahead

n 2007 NAS Air started to fly. The airline is one of the first airlines to open in Saudi Arabia – aside from the

national air carrier Saudia – after the Kingdom liberalized its aviation industry. NAS Air is the one and only budget carrier in KSA, and plays a big part during Hajj (the yearly Islamic pilgrimage). In 2012 the Hajj saw roughly 3.1 million participants. Currently NAS Air has routes to 6 domestic and 16 international cities. The short haul international flights play well with one of its 2013 goals to hire more Saudi female cabin crew with families – these routes don’t require a night layover. In 2013 Sulaiman Al Hamdan — the CEO of NAS Holding, the parent company of NAS Air — reported that the airline will be profitable. This is an achievement for the

I airline; high oil prices and the instability in the region have not been favorable to the company. In 2010, its low cost competitor Sama closed after reporting a loss of $300 million.

As Saudi Arabia is the largest Arab economy, airlines are clamoring to obtain a license to operate inside the Kingdom. The most recent license approvals have been given to Bahrain’s Gulf Air and

Qatar Airways. And with rumors of an IPO looming for NAS Air, this surely means that the airline is ready to spread its wings even further. As part of its 2013 growth strategy onwards, the airline will increase their fleet and frequencies of flights. At the 2012 Arabian Travel Market in Dubai Nas announced that it will provide Saudi entrepreneurs franchising opportunities in the Kingdom for a low cost. Three franchisees in the Kingdom have already been announced in Jubail, Gizan and Taif.

SULAIMAN AL HAMDAN

Inspiring the next generation of young scientists

n an age where engineering nous and creative thinking sit at either end of the spectrum of skills most valued among

new entrants into the workforce, Saudi-based Talents stands out for promoting the two in concert. The operating name of the National Talents Company for Training and Education, Talents offers an innovative approach to training and engaging young people in engineering. Through a combination of two creative education and training tools – LEGO Serious Play and the World Café – Talents uses interactive robotics programmes to get young people excited about the challenges and potential of engineering, robotics and science more broadly. Talents was established in 2007 by Saeed Atef Saeed and Amr Saleh El Madani on the back of the pair’s own engineering experience, following early careers in more mainstream engineering roles. For Talents, though, they have sought to put the educational experience at the heart of what they do.

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The company offers a range of programmes to engage young people directly with the concepts and practical possibilities of science and engineering. This can mean anything from offering an exciting and unusual presence at science fairs to hosting robotics seminars and running workshops in schools. The company also operates special programs for corporates, offering the team’s expertise with in-school program management as a way for client

companies to reach out and engage with the younger generation. It was this mix of experience in educational engagement and corporate culture which led to Saudi King Abdullah asking the pair behind Talents to design and build a science center for Riyadh – the Mishkat Interactive Center for Atomic & Renewable Energy. Talents has grown, and continues to grow, out of the passion of the founders for science and the desire to see that passion replicated among future generations. Indeed, as Saeed admits, he and his business partner have never had a specific business plan for their company. “As we grow we discover who we are and what we need to do.”

NATIONAL TALENTS CO. FOR TRAINING AND EDUCATION IS AN ALLWORLD 2012 ARABIA500 WINNER. THEY RANK 5TH IN SAUDI ARABIA AND HAVE ACHIEVED 181% GROWTH BETWEEN 2009-2011.

SAEED ATEF SAEED


RAZAN ALAZZOUNI

One stitch at a time

azan Alazzouni, 26, started designing while still at college in the U.S. “I got asked to design a

dress for a socialite,” says Alazzouni. “An editor from Vanity Fair saw the dress and called to ask about my company for an article. At that point I didn’t have a company. So in 2008 I registered my company in Saudi: Razan Alazzouni.” Ever since then, the company has gone from strength to strength. Alazzouni’s atelier in Khobar KSA has grown from one employee — herself — to a team of 20 today. Alazzouni recalls that, at the start, it was difficult to break into the Saudi market as there were no homegrown ready to wear female designers. Saudi designers mostly specialize in making traditional abayas and thobes. She is now a highly sought after designer in the Gulf. In January 2013 she was one of the main Arab designers showing during Muscat Fashion Week 2013. And the company has now become a family affair with her two sisters handling sales and marketing.

R When it comes to opening a flagship store, however, Alazzouni has decided to wait. “We currently sell our stock through multi-brand stores in the Gulf and internationally,” says Alazzouni. “I want to take time to build and strengthen the brand.” Alazzouni has even reached Hollywood with celebrities such as Emma Roberts, Kelly Osbourne and Giuliana Rancic wearing her designs. Alazzouni is a strong advocate of entrepreneurship. In 2011, she brought Startup Weekend to Riyadh — an international event — with two of her friends. During the 3 day event, sponsored by Badir, they launched 17 startups and announced 3 winners. She was also nominated to be part of the Tomouh committee — a platform composed of businessmen and women in the GCC who collaborate, share and network. As part of her work with Tomouh she mentors young entrepreneurs in Saudi. In 2011 she was also a main speaker at TEDxAlfaisalU, the first TEDx event at Alfaisal University in Saudi Arabia.

RAZAN ALAZZOUNI

REACH HOLDINGS

RAFAH ALKHATIB

Social networking for the business age

each was founded in 2010 by Rafah Alkhatib in response to what she says was a major

misunderstanding of new marketing among established companies. “One of the challenges we faced when we were setting up our business was a lack of knowledge,” recalls Alkhatib. “Social media was perceived as something children and young adults used to communicate with their friends or to play games. Nothing more.” The Jordan- and UK-educated businesswoman has made it her mission both to educate and to help her client companies to overcome such out-of-date thinking. It is a shift in their mindset which, she says, companies in the Middle East today have no option but to embrace. According to Alkhatib, companies who fail to engage with social media in the next two or three years risk losing market share in the region. As much as new media can be an opportunity for companies, it can also be

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daunting for those organizations unused to adopting such profound technological change in the way they interact with customers, both potential and existing. “We help our customers make the right decisions concerning which social networking means to choose depending on the type of product or service they wish to promote.”

And Reach not only advises clients on how to make the most of the enhanced functionality of new media such as Twitter and Facebook, the company can actually run the social media operation for those clients looking for that level of enhanced support. Reach’s customers are currently comprised of small and medium-sized companies including Jarir Bookstores and

Al Tayyar Travel Group. However, the company wishes to expand its services in order to reach out to other Middle Eastern countries.

REACH HOLDINGS IS AN ALLWORLD 2012 ARABIA500 WINNER AND WAS RANKED AS A “START-UP TO WATCH.”


RUMMAN

Jeddah’s one stop media shop

hen Enas Hashani, CEO of Rumman media publishing house, first set out to launch her

company, she was immediately faced with a brick wall: the bureaucracy. She launched from her own living room with co-founders Bayan Esam Abuzinadah and Maria Mahdaly, but it took her two years to get a license and an additional year to finalize all the paperwork. Rumman now pulls in $1.8 to $2.6 million per annum. The Jeddah-based company’s business activities include a corporate communications agency (Lub), a youth culture online platform and community (Fainak.com), a “one-stop guide to Jeddah’s sights and attractions” magazine (Destination Jeddah) and a business competition to promote entrepreneurship (Grow Program). This success is rooted in two main factors, explains Hashani. First, it’s the passion the team has for what they do: “We cater to our readers and clients with sincerity,” she notes, “we respect them

W and we find out what they want.” And second, it’s what Hashani refers to as “a call to action”: Whenever an article is written in print or online, it has to include information on how readers can be a part of whatever it is they’re reading about. It can be a “how to apply” checklist or simply a listing of a venue where the item in question can be found. The tone of the writing has to equally entice readers to take a step forward. “We are the number one English language publication in Jeddah,” asserts Hashani, referring to Destination Jeddah Magazine. “And in March 2013,” she discloses, “we will be releasing the very first issue of the magazine in Riyadh.” Hashani adds that they have plans to expand into the Eastern Region of the Kingdom as of 2014. Besides publishing, Rumman offers corporate identity development, digital solutions and web development, e-marketing and corporate and social event management.

RUMMAN IS AN ALLWORLD 2012 ARABIA500 WINNER. RUMMAN RANKS 8TH IN SAUDI ARABIA AND HAS ACHIEVED 113 PERCENT GROWTH BETWEEN 2009-2011.

ENAS HASHANI

S-ME

SMS makes a comeback

he symbols $, @, !, * and # may be the least used buttons on your mobile phone - unless you have S-me

installed. These forlorn keys, in a patent-pending method, are the keys to accessing the innovative program. S-me lets cellphone users use their own SMS services as a realtime social networking platform. Chatting, group messages, micro-blogs, voting, advertising, forums, interest classification and searching for people and content are now possible — without Internet connection. Abdullah Alzamil, CEO of the company, was still in the Al Faisal University’s MBA program in Riyadh when he launched the service. Today, online commentators have referred to it as a “substitute for social networking websites.” As of January 2013, there are 1,160,000 registered S-me users with 14,100,000 active micro-blogs and 2,000,000 daily hits. The service is now available on STC, Mobily and Zain.

T “All our services are in one platform,” says Alzamil, “this sets us apart from other services available out there.” Another one, he adds, is that without needing to connect to the web,

ABDULLAH ALZAMIL

the service offers constant connectivity. The company is, however, planning to launch a mobile app in 2013. “It will be our best marketing tool,” notes Alzamil, “the app will attract many new users. It will complete the circle.” Being a heavily customer-based business, S-me had to develop a customer support system to compete on the market. For that, and for developing and improving the service, a highly skilled team is crucial. Tech companies are fiercely competing amongst themselves to attract and employ qualified staff, notes Alzamil, and even foreign staff. This has forced the company to outsource some of its work, an approach Alzamil is not very happy about: “It compromises time, budget and intellectual property.”

S-ME IS AN ALLWORLD 2012 ARABIA500 WINNER. S-ME RANKS 1ST IN SAUDI ARABIA AND HAS ACHIEVED 459% GROWTH BTWEEN 2009-2011.


The award winning Anglo-Saudi alliance

SABB BANK

he year 2012 was a good one for the Saudi British Bank (SABB). The Banker Middle East named SABB

the “Best Retail Bank.” Arabian Business Magazine named SABB the “Best Bank in Saudi Arabia.” The globally-renowned Euromoney magazine conferred upon them their award for “Best Bank in Saudi Arabia,” in addition to their award for “The Best Cash Management Bank in Saudi Arabia” — for the fifth consecutive year. SABB’s prospects for 2013 are looking pretty good, too, if the 4th quarter of 2012 is an augury. The bank posted a 24.4 percent rise in 4th quarter net profit over the same period in 2011, with an increase from SR655 million to SR815 million. The numbers busted expectations. Analysts were predicting numbers on the order of SR772 million. Amongst special commissions, the loans portfolio and customer deposits, the latter achieved the greatest increase over 2011 at 14.1 percent. As of May 26, 2010, David Dew has been

T managing director of SABB. An employee of HSBC since 1977, Dew has over 30 years of experience in the areas of banking and finance. Previously he was Chief Operating Officer of HSBC Bank USA, Chief Auditor for North America and held senior posts in Singapore, Italy, Dubai and Oman. SABB is a Saudi Joint Stock Company established in 1978, taking over the operations of The British Bank of the Middle East within Saudi Arabia. Global financial services company HSBC owns 40 percent. In addition to investment, commercial and private banking, SABB offers a range of Islamic banking products overseen by an independent Shariah advisory committee.

SAUDI BINLADIN GROUP

Constructing a country

ultinational Saudi Binladin Group is one of the world’s foremost construction firms.

Founded by Mohammad Bin Ladin in 1931, its breakout projects centered around renovating many of the holiest sites in Islam: the Mosque of the Prophet in Medina in 1950, the Holy Mosque in Mecca in 1955, and then the Dome of the Rock in Jerusalem in 1964. The company next turned from Saudi’s religious infrastructure to its civic, establishing a network of highways from Mecca to Taif, Taif to Jizan, Sharoura to Najran, and then Solayel to the rest of the Kingdom. Come 1989, the brothers of Sheikh Salem Mohammad Bin Ladin, its CEO who passed away in 1988, created the diversified Saudi Binladin Group. The divisions work independently or in synergy from infrastructure and public buildings to petroleum, real estate and maintenance. And the contracts have rolled on from there. Amongst the array of high

M profile construction projects, which are worth highlighting most? King Abdullah University, Al-Faisaliyah Tower, Princess Norah University, the King Abdullah Financial District? Within KSA, the list reads on. And then we look abroad: The Four Season Hotel in Jordan, airports in Malaysia, Cairo, Sharm-El Sheikh, Damascus, the UAE, Senegal. And then there’s the lengthy register of hospitals, powerplants, factories, commercial and residential spaces. Today, one of their most conspicuous projects is the Kingdom Tower in Jeddah, the projected around SR4.6 billion skyscraper that, at a kilometer high, will be the tallest building in the world. Ambitious projects that re-define nations, whether its through transportation, production or urban centres is doubtlessly one of Saudi Binladin Group’s calling cards. The company’s current chairman is Sheikh Bakr Bin Mohammed Bin Ladin.

BAKR BIN MOHAMMED BIN LADIN

DAVID DEW


SAUDI CERAMICS

Paving the way

ince its inception in 1977 Saudi Ceramics has been the leading ceramics and tile manufacturer in

the Kingdom. In addition, the company produces bathroom appliances as well as water heaters. With the country in the midst of a construction boom, there is no rest for Saudi Ceramics. As of November 2011 the company has a market value of around SR3.4 billion. “The Saudi market is doing very well so we’re very confident, “ says Saudi Ceramics CEO Abdulkarim Alnafie. A 2012 study by Bank of America Merrill Lynch predicts that $4.3 trillion will be invested in construction projects across the MENA region by 2020 - with Saudi Arabia in the lead. The water heaters produced by the company are now exported to more than 50 countries around the world. Saudi Ceramics boasts 30 showrooms across the Kingdom, and is also expanding into the manufacturing of red brick, a move that’s expected to generate SR51 million in revenue. The biggest challenge for Saudi

S Ceramics is to keep up with the boom. The company is in overdrive to fulfill customer orders, find suitable land in industrial areas for new factories and hire more skilled workers. To address the last of these concerns, Saudi Ceramics has opened its own training center with the goal of creating a workforce both young and Saudi. As of 2012 the 750 Saudi employees make up 23 percent of Saudi Ceramics’ employees. What is the key to their success? “We have been in the market for 35 years, and that says a lot,” says Alnafie. “We have experience in the market, continuously train our people and maintain our high standards for excellence and quality.”

ABDULKARIM ALNAFIE

here are industries where constant innovation can be regarded with suspicion by the customer. However,

in the field of corporate security, out-of-date technology is not just inefficient — it can cause total redundancy of a business’ security systems. After all, if the person trying to harm you is more up to date in their methods, then your company’s

SECUTRONIC

KAMAL KAZI

Securing clients’ trust – and data

T defenses could be rendered worthless.Security solutions firm SecuTronic has taken this mindset to heart, and offers its clients a technologically and organizationally advanced full service security solution. As a consultancy and integrated service provider, they advise clients on the design, implementation and ongoing operation of bespoke systems that suit the needs of their diverse range of clients. Typical solutions include CCTV surveillance, fire alarms, intruder alerts, virtual control rooms and premises access monitoring, all increasingly integrated with cutting edge IT systems. More than just technologically, the founders have made innovation a core principle of the entire corporate culture. “When we founded SecuTronic, we changed the way a company is supposed to be run,” explains the company’s former CEO Jawad Anwar Ali. “We have a flat management approach. There is no boss, just 200 entrepreneurs working together.” Alongside this horizontal organizational structure,

clients are reassured by SecuTronic’s impartiality regarding the suppliers of the relevant technology. “We do not go out and promote any specific product,” he adds. Based in Jeddah but with offices in Riyadh and Dammam, SecuTronic has seen spectacular growth over the last 5 years. This has seen them acquire a hugely impressive stable of partners and clients, the latter including DHL, PepsiCo, the Royal Saudi Naval Forces and the National Commercial Bank of Saudi Arabia. The mix of commercial and government sources of business is not just a boon to the bottom line, but in an industry where trust is at a premium it confers an invaluable vote of confidence for a business whose reputation is quickly growing to match the impressiveness of its client base. Its current CEO is Kamal Kazi.

SECUTRONIC IS AN ALLWORLD 2012 ARABIA500 WINNER. SELA SPORT RANKS 20TH IN SAUDI ARABIA AND HAS ACHIEVED 17 PERCENT GROWTH BETWEEN 2009-2011.


SELA SPORT

Saudi sports’ playmaker

ela Sport began as a talent agency for athletes back in 1995. Today, they self-describe themselves as a

“holistic sports platform.” They’ll provide the full range of services necessary to run a sporting event or operate a team club. This can include CRM, team branding, managing sponsorships, crowd control and ticketing, travel coordination, sales and club facility operations. The company, chaired by Dr. Rakan Alharthy, has pioneered much of the Saudi sports marketing industry. The end results of their services can include high performing marketing solutions, securing that right sponsor, or creating a tailored, unique event. Pulling in more than $40 million worth of business per annum, Sela has served over 4 million customers and expanded to include several branches in 4 countries: Saudi Arabia, Hungary, the UK and the US. In the last of the 4 nations they’re backing the New York Cosmos, the state’s famed soccer club

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(which one time included Pelé, Franz Beckenbauer and Giorgio Chinaglia) which is set for a reboot in the North American Soccer League for the 2013 season. They’ve organized many of the

Kingdom’s most visible events: the King’s Cup Finals, the Faisal Cup Finals, the Crown Prince Finals, Saudi’s first ever F1 street show on behalf of Red Bull (with over 100,000 spectators) and the Lamborghini Superlaguera Cup. Sela Sport has also played a key role in securing sponsors for some of Saudi’s top soccer clubs: Al-Hilal, Al-Ittihad, Al-Shabab, Al-Ahli and Al-Nassr. Between 2005 and 2008 the company brought the Saudi National Football Team’s sponsorships from SR36 million to SR150 million. “Although we have evolved in many different ways, there is one thing that remains unchanged after all of these years,” the company states. “It’s our passion for sports and for what we do.”

SELA SPORT IS AN ALLWORLD 2012 ARABIA500 WINNER. SELA SPORT RANKS 14TH IN SAUDI ARABIA AND HAS ACHIEVED 41 PERCENT GROWTH BETWEEN 2009-2011.

RAKAN ALHARTHY

SHAWARMER FOOD

Blending culinary traditions

hawarmer is aiming to become the first Saudi restaurant chain to be a break-out success story from

the region. “We are the first formalized shawarma restaurant chain in the Middle East,” says Abdulmohsin Mohammed Alrabiah, co-founder and CEO, “and we have been able to transform the way people think and eat the most popular Arab sandwich.” The expansion plan starts domestically by expanding to other major Saudi cities (beyond their native Riyadh), and then to the rest of the Gulf, Middle East and Asia before transitioning into European and American markets. This confidence for a successful future stems from Alrabiah’s “confidence in Shawarmer’s story.” This pace of growth will pose many challenges of its own, asserts Alrabiah, but the company intends to face them by replicating the measures that have led to its current success — albeit they’d have to adapt them to each situation and location: “What worked a year ago might now be not the best approach today,” he remarks.

S Besides serving the freshest food possible, Shawarmer’s success can be attributed to the fast service and the act of “constantly asking customers what can make the service better.” This led to the development of the menu to cater to a wider clientele: The addition of salads, juices and kids meals is a successful example of this development. The expansion of the Saudi population, especially the increasing percentage of youth, coupled with the shift in social habits and norms has made the market very accommodating to a project like Shawarmer. Even though the product is quite traditional, the company is in tune with its modern audience. It consistently communicates with them via social media and event sponsoring. 2013 will see a great deal of expansion for Shawarmer, bringing it a step closer to its goal of worldwide expansion. The company is currently breaking ground on 7 outlets in 5 cities before June. The target is 50 outlets by the end of the year.

SHAWARMER FOOD CO. IS AN ALLWORLD 2012 ARABIA500 WINNER. SHAWARMER RANKS 11TH IN SAUDI ARABIA AND HAS ACHIEVED 57 PERCENT GROWTH BETWEEN 2009-2011.

ABDULMOHSIN MOHAMMED ALRABIAH


SUKOON INTERNATIONAL

The health sector’s right hand

ukoon International specializes in the development of healthcare properties, the first of its kind in the Kingdom.

Its shares are owned entirely by Saudi businessmen. The company’s key objective is to create sustainable, independent healthcare communities outside the hospitals to provide adequate physical therapy for patients. Sukoon employs experienced men and women from different nationalities and backgrounds to form a “family” and create an atmosphere of comfort, explains Ihab Elsamannoudi, CEO of the company. “We complement the work of hospitals and are by no means a replacement,” he continues. Sukoon’s projects first came to fruition with the creation of the International Medical Center south of Jeddah. The center achieved success and brought attention of all those concerned with the need to develop the healthcare sector in the country. All of their work would always be done “in conjunction with the great efforts

S exerted by the Ministry of Health,” assures Elsamannoudi. Since its inception in 2006, the organizers of Sukoon realized that the Kingdom’s population will likely double over the next 20 years, and that the existing

healthcare centers will not be able to meet future needs. Regarding their future projects, Elsamannoudi discloses that they “are in the process of opening a unique 200-bed extended-care facility in the Middle East.” The company is calling for more investments from shareholders in this vital sector. In addition to success, expansion and continuous achievements, Elsamannoudi confirms that Sukoon is extremely adamant about educating people in regard to safety and welfare. Sukoon organizes seminars and workshops to raise awareness about traffic safety, reduce accidents and help curtail the perils of their aftermath. The company’s commitment to reducing road tragedies led them to become members of the Arab Organization for Traffic Safety.

SUKOON INTERNATIONAL IS AN ALLWORLD 2012 ARABIA500 WINNER. SUKOON INTERNATIONAL RANKED AS A “STARTUP TO WATCH.”

IHAB ELSAMANNOUDI

TEJOURY

The business data treasure vault

n the business of archiving,” notes Salman Alsudeary, managing director of Tejoury

Ltd., “establishing trust is the very first thing to strive for.” The Riyadh-based firm provides physical archives, complete digital archiving solutions and off-site storage facilities for its clients. Confidentiality is indeed key to gain that trust, and Tejoury has succeeded at

“I it. Yet confidentiality creates a whole set of other problems: Tejoury can’t benefit from an endorsement-based marketing approach when their biggest clients’ names can’t be disclosed. It’d be a breach of that confidentiality otherwise. Consequently, Tejoury faces an uphill battle generating new leads. This made Alsudeary’s job even more challenging when first starting out. Due to the unconventional nature of the business, he struggled to get the financial planning as accurate as possible, as well as the sales forecast. Rigid government regulations were another hurdle: “We are not heavily regulated per se,” notes Alsudeary, “but all of the businesses we regularly deal with are large companies and banks.” Other services offered by Tejoury include client “in-house” archive management, data tape storage, data imaging (scanning) and advisory services, collection and delivery of documents, and secure, confidential destruction of documents. All in all, Alsudeary explains, a contract

with Tejoury will allow companies to reduce overhead and capital expenditures. In-house archiving will force companies to rent progressively more space, buy additional equipment, hire and train extra staff, and then invest in the right infrastructure and security systems. Nonetheless, Tejoury does also provide its clients in-house archive management solutions that allow businesses to apply the expertise of a professional archive management company while keeping all of their records and data on their own premises. It’s a core strength for the company as very few competitors offer similar services. “We strive to provide a strong product,” says Alsudeary, “regardless of profit.”

TEJOURY LTD. IS AN ALLWORLD 2012 ARABIA500 WINNER. TEJOURY LTD RANKS 2ND IN SAUDI ARABIA AND HAS ACHIEVED 408 PERCENT GROWTH BETWEEN 2009-2011.

SALMAN ALSUDEARY


THE SAVOLA GROUP

Commodity mavens

he Savola Group, a publicly listed company on Tadawul — the Saudi stock exchange — was

founded in 1979 and is now one of the top conglomerates in Saudi Arabia. The three core areas of the group are edible oils, sugar and pasta, plastics, and retail (supermarkets and hypermarkets). The group initially started with refinement of edible oils in 1979. After years of competition with international brands their oils now account for 62 percent of the edible oil market in KSA. In 1991 the group delved into plastic production with an emphasis upon product packaging. And in 1994 they opened their first sugar refinery in Jeddah through their subsidiary United Sugar Company, which now has 68 percent of the local sugar market. In 1998 the group merged

T with Azizia Panda — the largest grocery retail chain in the Middle East. Currently they have 166 outlets and plan to have an additional 200 supermarkets and hypermarkets by 2015. The group’s portfolio also includes investments in some of the country’s top companies;

they have a 30 percent stake in Almarai and are founding shareholders in both the Knowledge Economic City and the King Abdullah Economic City. Most recently Dr. Abdulraouf Mannaa, group managing director, announced a historic net profit of SR1.4 billion in 2012, an increase of 16.7

percent from last year. As part of their CSR initiative the Savola Group partnered with INJAZ-Saudi Arabia (ISA) which is a member of Junior Achievements Worldwide, the world’s largest non-profit organization dedicated to educating students and preparing them for the real world. One of the programs sponsored by Savola for ISA is Success Skills, which provides middle school children with engaging and enriching activities to prepare them for fulfilling careers in the future. Savola also helped to pioneer the program in Braille for the visually impaired.ABDULRAOUF MANNAA

TRACCS

Speaking the local language

RACCS has been the undisputed leader in public relations and communications on the Saudi

market for 15 years. Mohammed Al Ayed, president and CEO of the company, suspects this success is a result of the fact that his team “value the importance of local knowledge, yet understand global communication.” Indeed, it is this fusion of the local and the global that sets TRACCS apart from its local competition: “We’re the Saudi company that was strong enough to revolutionize the PR scene in KSA and is globally competent.” Al Ayed asserts: “PR people sell optimism.” So it’s only natural that the people at TRACCS are optimists themselves; Al Ayed insists the only challenge that they as a company are facing is to figure out what to do next. The media world never slows down and is constantly changing, and PR firms need to keep up, he points out, in order to stay on top.

T The agency has devised a holistic, seven-point program for an integrated PR discipline. At the top of that list is training personnel in media and communication skills, followed by providing digital media strategies. The list also includes corporate social responsibility measures, crisis management, internal communication systems, media engagement and finally, strategic advisory, which is helping clients build long-term PR strategies. TRACCS is already present in several MENA countries. Its offices dot the region’s map in Jeddah, Riyadh, Dubai, Kuwait, Doha, Muscat, Manama, Cairo, Beirut, Amman, Damascus and Tripoli, with affiliate offices in Tunis, Algiers and Casablanca. Nevertheless, Al Ayed hopes for “exponential growth” in 2013. The company is so far living up to its assertion, “Founded with the goal of building an indigenous Arab public relations industry in the Middle East and North Africa.”

TRACCS IS AN ALLWORLD 2012 ARABIA500 WINNER. TRACCS RANKS 19TH IN SAUDI ARABIA AND HAS ACHIEVED 41 PERCENT GROWTH BETWEEN 2009-2011.

MOHAMMED AL AYED


nited Trading & Marketing Co (U-Mark) is a retail chain with an eclectic catalog ranging from sports

apparel and fitness equipment to hair and beauty care products and home appliances. According to Saeed AlGhamdi, vice-chairman, managing director and CEO of U-mark, three factors set his company apart from its competition: first, there is the quality of the products on offer. Second, the competition comes mainly from international brands. U-mark, being local, is more aware of the Saudi consumer’s needs and wants. Third, the company focuses heavily on its after-sales policies. AlGhamdi stresses the importance of such measures as one, keeping the communication lines open with customers after the transaction, and two, implementing warranty systems for the more expensive items among others. These services keep customers coming back, he notes, and serve to spread positive word-of-mouth about the company. Employment, however, is a challenge.

population. It’s the target market for the sports and fitness industry, which is considerably underdeveloped.

U-MARK (UNITED MARKETING AND TRADING COMPANY) IS AN ALL WORLD 2012 ARABIA500 WINNER. U-MARK RANKS 9TH IN SAUDI ARABIA AND HAS ACHIEVED 66 PERCENT GROWTH BETWEEN 2009-2011.

U-MARK

International look, domestic flavor

U AlGhamdi struggles with meeting the imposed Saudization quotas for his workforce. “A large percentage of the Saudi workforce doesn’t like to work in sales,” he remarks. So he ends up paying the required SR2,400 for new foreign hires — an expensive addition to his payroll. Yet AlGhamdi has set a number of plans to improve U-mark’s human resources issues. Local and international employment agencies and headhunters are solicited to keep the applications coming. In addition, continuous improvement of remuneration packages and the work environment, along with the implementation of participatory management approaches and profit-sharing agreements, will help retain employees in the company as well as attract new ones. U-mark is growing fast at 30 percent per annum. AlGhamdi has ambitious plans to keep, or even increase, this above-average growth rate. He contends that the ecosystem for this business is ripe: This region is made up of a young

SAEED ALGHAMDI

UTURN ENTERTAINMENT

Media pioneers

he concept of Uturn Entertainment began in 2004 when the initial two founders - Abdullah Mando and Omar

Murad - shared an idea to develop localized, online video content for the Saudi market. Yet both decided to first continue their college educations abroad. Their respective studies turned out to be complementary: Mando pursued film and business, and Murad stuck to the business track. During their stay in Canada they also met the third co-founder, Anmar Fathaldin. Then, returning to Jeddah in 2009, the trio immediately set out to start the company. “We initially thought to produce content for television, but decided it wouldn’t work because the regional television industry is monopolized,” says Mando. “The next natural step was online. We studied models flourishing in the US — like Hulu and Netflix — and localized the models to Saudi.”

T Mando also adds that from the get-go they would create a “solid business model.” Many ideas from their original plan have not yet been executed. In 2010, they

received their first investment from fellow entrepreneur Kaswara Al-Khatib, founder of FullStop Advertising. “What we liked

about him is that he is a partner. He didn’t ask much about financials or ROIs like other investors,” adds Mando. The team at Uturn immediately set out

to create content, developing many shows and seeing which ones would work. Their first major hit was the show “Takki,” and then, from their second round of development, the satirical show “Eysh Elli.” They currently have 17 shows altogether, though not all run concurrently. Over the past 2 years their shows have had over 300 million views, as well as 4 million members across their network. 90 percent of their viewers are from the Kingdom. The main challenge the team faces now is to create an industry that doesn’t exist. Their revenue model however, which relies on advertising, has been buttressed by

such major companies as Mobily, Nestle and Al Tazaj who have created adverts specifically for Uturn’s programming.

THE UTURN TEAM


Entrepreneurship ARABICin

Turn the page for the Arabic section. You’ll find each issue’s main features alongside a selection of our favorite interviews and articles. Our goal is to make the information and inspiration Entrepreneur KSA offers accessible to all.

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