Volume XVIII, No. 1 • Spring 2010 In this issue: Articles Page Incubating the Future: Entrepreneurship in Saudi Arabia ...... 1 Entrepreneurship in Saudi Arabia From the President’s Desk – Cultivating the Entrepreneurial he year 2010 launches a new decade of entre- Ecosystem in Saudi Arabia ...... 2 T preneurship and innovation in Saudi Arabia. Prince Sultan bin By the end of this year, the Kingdom intends to Abdulaziz Fund ...... 4 join the list of the top ten most competitive nations A New Era of Entrepreneurship . . . 4 in the world – a coveted position that relies on a Windy City Hosts U.S.–Saudi vibrant economy driven by a new generation of Business Opportunities Forum . . . . 5 creative and forward-looking entrepreneurs. Siraj Capital: Building Entrepreneurs are instrumental to growing the Future Entrepreneurs ...... 6 economy in the Kingdom. Small and medium-sized Interview with Dr. Fahad Al Sultan, enterprises (SMEs) make up 92 percent of the Saudi Council of Chambers ...... 7

businesses in Saudi Arabia, and they employ over Image courtesy of the White House Interview with Professor Choon President Barack Obama addresses delegates at the Presidential Fong Shih, President of KAUST . . . . 8 80 percent of the work force. Under the guidance of H.M. King Abdullah bin Abdul Aziz Al-Saud, Summit on Entrepreneurship, on April 26, 2010. KAUST’s Ecosystem for Entrepreneurship ...... 9 there are significant indicators that Saudi Arabia the most competitive nations in the world,” says Alagat Company: A Step Ahead is committed to nurturing the next generation of H.E. Amr Al-Dabbagh, Governor of the Saudi of the Changing Economy ...... 10 business leaders. Arabian General Investment Authority (SAGIA). Interview with Amer Kayani, The Saudi Fast Growth 100 is a new national “In order to achieve this ambitious goal, the Kingdom U.S. Embassy, Riyadh ...... 11 program designed to promote entrepreneurship must nurture emerging growth companies since Lubna Olayan Honored as and innovation, ranking the fastest-growing compa- they are the oxygen of the economy.” Entrepreneur of the Year ...... 11 nies in the Kingdom according to their revenues. AllWorld Network ...... 12 Over 70 percent of the Saudi Fast Growth CEOs “Throughout history, the market has Guest Commentary: A Salute are serial entrepreneurs who have founded other been the most powerful force the world to Saudi Entrepreneurs ...... 13 companies, the majority of which are still in business. has ever known for creating opportunity A List of 2010 Saudi Fast These “high intensity entrepreneurs” exceed the Growth Companies ...... 14 U.S. Inc. 500 for their rate of new business forma- and lifting people out of poverty.” Abdul Latif Jameel Offers tion. Highly competitive, their revenues grow at President Barack Obama Gateways To Entrepreneurs . . . . . 16 an average of 43 percent annually, more than ten 99 Ways to Be an Entrepreneur . . . 17 times the rate of the Kingdom’s private sector The King Abdullah University of Science and 27 Saudi Success Stories: growth of four percent per year. Technology (KAUST) – the world’s newest, most The Next Generation of Saudi Entrepreneurs ...... 18 - 36 Saudi Arabia is committed to become “one of state-of-the-art graduate-level research university – underscores the General Information on Saudi SMEs ...... 37 Kingdom’s transition Saudi Arabia At-a-Glance ...... 38 to a knowledge-based s o c ie t y t h a t w i l l KAUST: A Catalyst for Small Business Growth ...... 39 strengthen the country’s Prince Salman Young emerging economy. Entrepreneur Awards: T h e u n i v e r s i t y ’s Building Tomorrow’s Leaders . . . . 40 Innovative Industrial Key Contacts ...... 40 Collaboration Program (KICP) fosters partner- s h ip s w it h lo c a l, regional and global businesses interested in National U.S.-Arab Chamber of Commerce nurturing entrepreneur- 1023 15th Street, NW ship and strengthening Suite 400 t he l i n k bet ween Washington, DC 20005 Saudi Fast Growth 100 Award recipients at the January 2010 ceremony held during the Global academic research and Tel: (202) 289-5920 Competitiveness Forum in Riyadh. Enas Hashani (center), CEO & Founder of The Rumman economic growth. Fax: (202) 289-5938 Company, with her award. Standing with Hashani are Hatim Mouminah (left), CEO of Al-Watan, and Abdulkareem Abu Al-Nasr (right), CEO of the National Commercial Bank. continued on page 3 www.nusacc.org E-mail: [email protected] From the President’s Desk Cultivating the Entrepreneurial Ecosystem in Saudi Arabia arlier this year, the National U.S.-Arab Chamber In Silicon Valley and other environments in which E of Commerce (NUSACC) became a Regional start-ups thrive, taking risks is strongly encouraged. Partner in a new program called the Saudi Fast Growth More often than not, these risks lead to failure. But 100. Designed to recognize the fastest growing young in a context of “nothing ventured, nothing gained,” companies in the Kingdom of Saudi Arabia, this such failure carries little stigma. To the contrary – a program has quickly established a benchmark for failed venture provides an incubator in which to gain identifying up-and-coming business leaders. experience and learn valuable lessons. Thomas Alva NUSACC President David Hamod As this issue of Tradeline suggests, major changes Edison, probably America’s greatest inventor, put it are afoot in the Kingdom. In Saudi Arabia today, and this way: “I have not failed. I’ve just found 10,000 throughout the Middle East and North Africa (MENA) ways that won’t work.” Or as every American learns region, there is a new breed of entrepreneurs that is from a very young age, “If at first you don’t succeed, gradually reshaping the economic landscape. These try, try again.” talented men and women are ‘pushing the envelope’ Saudi Arabia has been the home of business leaders “In Saudi Arabia today, in their respective communities and challenging for a very long time. The Prophet Muhammad and and throughout the longstanding assumptions about value creation and many of his early supporters were traders and merchants. Middle East and North risk aversion in the Arab world. Equally impressive, Khadija, his wife, was a highly Africa (MENA) region, The Founding President of Saudi Arabia’s King successful businesswoman long before she met the Abdullah University of Science and Technology Prophet. But the Kingdom’s business environment there is a new breed (KAUST) applauds this new generation of risk-takers. has not always favored start-ups. Fifteen years ago, of entrepreneurs that Says President Shih, “The people who apply to a the entrepreneurial environment there was akin to is gradually reshaping start-up university like KAUST are culturally, intel- Saudi Arabia’s vast Empty Quarter. Today, that the economic lectually and professionally adventurous. These are start-up “desert” is in full bloom. landscape. These the ingredients that contribute to entrepreneurship Credit for much of this transformation starts at …. and we can offer them a long runway from which the top with H.M. King Abdullah bin Abdul Aziz talented men and their research projects can take off.” Al-Saud and H.R.H. Crown Prince Sultan bin women are ‘pushing The following pages are filled with poignant stories Abdul Aziz Al-Saud. Through a variety of forward- the envelope’ in their about remarkable individuals who laid everything on looking programs, both leaders are empowering respective communities the line to launch gutsy start-ups – in many cases universities, chambers of commerce, and private and challenging against the odds. These success stories could easily foundations to create jobs for men and women, have been lifted from a recent issue of Inc. magazine, thereby laying groundwork for the next generation longstanding but for one important detail: they took place not in of business leaders. assumptions about the USA, but in Saudi Arabia. What do these opportunities mean to the Saudi value creation and Many of today’s successful entrepreneurs in the entrepreneurs themselves? In their own words: risk aversion in the United States credit a big part of their success to an “This encourages more people to become entrepreneurs ability to stand on the shoulders of those who have gone Arab world.” and to give a lot back …. All you need is initiative and before them. Access to expertise like this is essential to courage.” an entrepreneurial ecosystem that nurtures innovation, “I hope I can always be a role model for young people inculcates creativity, and fosters new enterprises. in our country.” The list of attributes that help to constitute a successful entrepreneurial ecosystem is a long one. “Despite the hard times, I have no regrets being an Some of these attributes include: talented individuals entrepreneur. It gives me the right to decide my own with intriguing ideas; mentors who are willing to destiny.” share freely of their own experience; access to finan- “I am not interested in just making a profit. It’s also cial resources; a sustained commitment to entrepre- about making a difference.” neurship and incubation by local institutions – academia, Indeed. government and/or businesses; access to appropriate technology; an environment that celebrates not only success, but also failure. This last point is critical, and it represents one of the main reasons why creating entrepreneurial ecosystems in the Middle East and North Africa has historically been a challenge. Many nations around the globe frown David Hamod on failure, but few are as tough as the Arab world. President & CEO

2 NUSACC • www.nusacc.org Entrepreneurship – from page 1 Saudi entrepreneurs are rapidly becoming “The entrepreneurial culture is the key an important source of job creation in the element that contributes to economic develop- Kingdom. The 2009 and 2010 Saudi Fast ment by creating new businesses, jobs and Growth 100 companies, for example, collec- wealth, all of which leads to sustainable tively created 35,000 jobs since they were competitiveness,” emphasized Professor Choon established, and 15,000 of these jobs were Fong Shih, Founding President of KAUST. created in the last five years. In addition, A recent agreement between King Saud these companies serve as business incubators University (KSU) in Riyadh and Ohio-based for their employees, who have launched 41 Kent State University established an entre- new companies in the past two years. preneurship curriculum in Riyadh – the first These same Saudi Fast Growth 100 compa- of its kind to be accredited at a Saudi univer- nies collectively generate nine billion Saudi sity. King Saud University is also home to the Riyals ($2.4 billion) in revenues. More than Riyadh Technology Incubation Center 90 percent of these revenues come from the (RTIC), one of the leading incubator centers Saudi market, and the companies anticipate in the Middle East, as well as the Entrepre- doubling the percentage of their revenues from neurship Center, which organized the first international markets over the next three years. international conference on entrepreneurship “More than anything else, the Saudi Fast in the Kingdom, held in October 2009. Growth 100 is a powerful beacon of inspira- tion for the next generation of company “SAGIA has committed to making the builders – young people, perhaps just Under the leadership of King teenagers now – signaling that they too Kingdom of Saudi Arabia one of the Abdullah, the new generation of can have a stake in a dynamic, forward- entrepreneurs is recognized for most competitive nations in the world. looking economy,” notes Abdulkareem the important role it plays in Saudi In order to achieve this ambitious Abu Al-Nasr, CEO of the National Arabia’s economic development goal, the Kingdom must nurture Commercial Bank (NCB). Saudi Arabia is making impressive and sustainable competitiveness. emerging growth companies since strides in its quest for global competitive- they are the oxygen of the economy.” ness. In 2005, it was ranked 67th in the entrepreneurial initiative,” notes SAGIA H.E. Amr Al-Dabbagh, Governor of the Saudi Doing Business report published by the Governor Amr Al-Dabbagh. “The winners Arabian General Investment Authority World Bank. By 2009, it had climbed of the Saudi Fast Growth 100 will be the the ranks to number 13. The 2009 report guides to our future, and they are the most The Centennial Fund and its offshoot, the ranks the Kingdom 23rd out of 178 potent signal that Saudi Arabia is a dynamic National Entrepreneurship Center have countries for ease of doing business, seventh economy full of creativity and opportunity.” focused on three main goals since 2004: diver- for ease of paying taxes, and third for ease of Professor Michael Porter of the Harvard sifying the Saudi economy through the creation registering property. In June 2008, the new Business School fully agrees. “Entrepreneur- of small and medium-sized businesses (SMEs), Unified Office for Commercial Registration ship is alive and well in Saudi Arabia,” he says. reducing the failure rate of SMEs by providing in Riyadh became fully operational, and “The Saudi Fast Growth 100 companies, led long-term mentoring, and nurturing successful entrepreneurs can now complete all commer- by dynamic men and women, represent the entrepreneurs. Saudi Arabia is the first Arab cial registration requirements under one roof leading edge of a new approach to Saudi country to establish such a program and the in one day. Arabia’s competitiveness. These entrepreneurs fund had more than 1,040 ongoing projects “Saudi Arabia is creating a business climate are shattering our perception of what’s really in 2009. that supports and rewards innovation and going on in Saudi Arabia.”

“The Holy Grail of economic development is building businesses and growing entrepreneurial companies are businesses, getting businesses to grow and develop and really under the radar, nobody knows about them. There employ people, and to become the small and medium– is a fixation with the large and with the established sized companies (SMEs) that are really the backbone groups that have ties to the government. A list – such as of any economy. You can’t build an economy just on the Saudi Fast Growth 100 – becomes very fundamental state enterprises or multi-nationals. You have to have a in bringing attention and energy to this part of the rich texture of SMEs which can drive entrepreneurship, economy that is so crucial to success.”

provide support services, and make the economy work. Harvard Business School Professor Michael Porter, What we find in emerging economies is that the small a leading authority on competitive strategy

U.S.-Arab Tradeline • Spring 2010 3 Prince Sultan bin Abdulaziz Fund: Nurturing Women Entrepreneurs

he Prince Sultan bin Abdul Aziz Fund to to present their feasibility studies and business TSupport Women’s Small Enterprises was plans to a group of potential sponsors. established in 2007 in Dammam. Initiated by “The fund helped guide us and gave us H.R.H. Prince Mohammed bin Fahd bin the tools we needed,” notes interior designer

Abdul Aziz, Governor of Saudi Arabia’s Eastern Ala’a Hariri, owner of Ala’a Hariri’s Interiors. Photo courtesy of the Saudi Embassy Province, the fund provides aspiring women “We were taught about human resources entrepreneurs with technical and financial development, accounting, finance, marketing, support. According to Executive Manager and cash management… in short, everything Hana Al-Zuhair, the fund has supported 32 related to building a business,” she adds. The Prince Sultan bin Abdulaziz Fund was projects during the past two years. Recognizing the importance of developing named in honor of H.R.H. Prince Sultan Saudi women of all ages can apply to the leadership skills in young Saudi girls, the bin Abdulaziz Al-Saud, Crown Prince and fund, which requires that each applicant Prince Mohammed bin Fahd Leaders Prepa- Deputy Prime Minister of Saudi Arabia. submit a business proposal to a review board. ration Center was established in 2009. “We present success stories from the Fund The fund is open to aspiring entrepreneurs, Operating under the umbrella of the Prince as an example to the girls, and we give them as well as to businesswomen seeking to expand Sultan bin Abdul Aziz Fund, the Center is role models to look up to,” says Center super- their small to medium-sized enterprises. open to Saudi girls between the ages of six visor Hind Al-Saghir. In a nation in which When the finalists are selected, they go and 25. Two programs at the center target more than 50 percent of the population is through a ten-day training course called “Intil- different age groups: the Promising Leaders female and 70 percent of the total population akati” (My Launch), which is just the first step Program is designed for girls ages six to 15, is under the age of 30, Ms. Al-Saghir notes, of the process. After successfully completing and the Young Leaders Program caters to girls “We need to prepare the younger generation the training course, the women are required ages 16 to 25. to lead the future.”

“A New Era of Entrepreneurship” n April 26 and 27, President Barack partnering to expand economic OObama hosted an historic summit with prosperity.” more than 275 entrepreneurs from approxi- Why is the Obama Administra- mately sixty countries with significant Muslim tion placing so much emphasis on populations. “A New Beginning – The Presi- entrepreneurship? “The answer is dential Summit on Entrepreneurship” is the simple,” explains President Obama. fulfillment of a promise made by President “You told us that this was an area Obama during his June 4, 2009 speech in where we could learn from each Cairo to strengthen relations between social other, where America can share entrepreneurs in the United States and Muslim our experience as a society that Photo courtesy of Arab News Maria Mahdaly of Fainak (second from left) and other Saudi communities around the world. empowers the inventor and the entrepreneurs with Secretary of State Hillary Clinton during The two-day summit, co-hosted by the innovator. Throughout history, the President Barack Obama’s Summit on Entrepreneurship. U.S. Departments of Commerce and State, market has been the most powerful highlighted the essential role entrepreneurs force the world has ever known for creating in Jeddah and the General Manager of Fainak, play locally, regionally, and globally in social opportunity and lifting people out of poverty.” a socially responsible youth website and magazine, and economic development. Encouraging A number of significant initiatives were was invited to the summit by U.S. Ambassador global entrepreneurship is a central element announced by U. S. Secretary of State Hillary to Saudi Arabia, James B. Smith. of the Obama Administration’s foreign Rodham Clinton at the end of the summit. “It was inspiring to be among all those economic and development policy. It is consid- The Global Entrepreneurship Program will successful and creative entrepreneurs from ered a “win-win” policy that provides new provide concrete support to new entrepreneurs, so many different countries,” comments economic opportunities globally for U.S. starting with the first pilot program in Egypt. Mahdaly. “This was an incredible opportunity investors and businesses, as well as creating Partnerships with two Silicon Valley-based for young entrepreneurs like myself to be able jobs and strengthening socio-economic infra- organizations – the Global Technology and to share our experiences, struggles, and structures abroad. Innovation Partners and the Innovators Fund challenges with each other during the two-day Addressing the 275 participants at the end – will potentially mobilize more than $2 summit,” she adds. of the first day, President Obama emphasized billion in investments. Recognized as one of the top 30 student that by “listening to each other, we’ve been Included among the summit participants entrepreneurs in the world by the U.S.-based able to partner with each other. We’ve expanded were six young Saudi Arabian entrepreneurs Entrepreneurs Organization, Mahdaly is a educational exchanges because knowledge is – four women and two men. Maria Mahdaly, reflection of the thriving entrepreneurial the currency of the 21st century, and we’re the 21-year old co-founder of Rumman Company climate in Saudi Arabia.

4 NUSACC • www.nusacc.org Photo © Mike Liu | Dreamstime.com Windy City Hosts U.S.-Saudi Business Opportunities Forum n late April 2010, more than 1,000 Saudi sector, explained Minister Alireza. Moreover, creation and a renewed focus on exports are IArabian and U.S. Government officials and he noted, Saudi Arabia is aggressively devel- main priorities for the Obama Administration, business leaders attended the U.S.-Saudi Business oping a higher education system that will as evidenced by President Obama’s recently Opportunities Forum held in Chicago, Illinois. supply the engineering and research talent announced National Export Initiative (NEI). Co-sponsored by the U.S.-Saudi Arabian required to support advanced technology and The Forum established a new platform for Business Council and the Committee for medical industries. enhanced cooperation at the national level. International Trade of the Saudi Council of “As the world continues to emerge from Companies from around the Midwest were Chambers of Commerce and Industry, the this once-in-a-generation economic event also received high-level support from the crisis, it has never been more impor- Saudi Arabian Ministry of Commerce and tant for us to expand trade and Industry and the U.S. Department of Commerce. economic cooperation across our Approximately 200 high-level Saudi Arabian borders,” said U.S. Secretary of government and business leaders attended the Commerce Gary Locke during his forum, including the ministers of petroleum keynote address. Referring to President and mineral resources, commerce and industry, Obama’s recent Presidential Summit finance, and education. Saudi Arabia’s Ambas- on Entrepreneurship, Secretary Locke sador to the United States, H.E. Adel Al-Jubeir, noted that the men and women from participated, as did his U.S. counterpart, the more than 60 Muslim-majority nations Hon. James Smith, the U.S. Ambassador to who attended the summit represent Saudi Arabia. Rounding out the official U.S. the vibrant private sector that has “an delegation were U.S. Secretary of Commerce immense and vital role in promoting

Gary Locke and Deputy Secretary of the U.S. economic opportunity.” © U.S.-Saudi Business Opportunities Forum Treasury Department, Neal Wolin. A cornerstone of Saudi Arabia’s H.E. Abdullah Zainal Alireza, Saudi Arabia’s Minister of commitment to diversifying Commerce and Industry its economy is the Kingdom’s pledge to invest $400 billion over given an opportunity to network with Saudi the next decade in infrastructure counterparts and to identify specific commer- projects, explained Secretary Locke. cial and investment opportunities. Omar “Saudi Arabia is embarking on an Bahlaiwa, Secretary-General of the Committee historic development project and for International Trade of the Council of Saudi American companies have the Chambers of Commerce, noted, “The number expertise and the resources to help of registrants means that this is the largest-ever Saudi Arabia reach these ambitious forum in the history of our two countries. goals,” he suggested. And for the first time we are targeting small Sheikh Abdul Rahman Al-Jeraisy, and medium-sized entrepreneurs.” President of the Riyadh Chamber of © U.S.-Saudi Business Opportunities Forum U.S. Secretary of Commerce Gary Locke Commerce and Chairman of the “Saudi Arabia is moving away Al-Jeraisy Group, agreed. “We need Addressing the forum on opening day, what the United States has to offer – products from being the gas station to Saudi Arabia’s Minister of Commerce and and technology – and we promise that our the world. Sustainable economic Industry, H.E. Abdullah Zainal Alireza, stated, economic vitality is not a temporary condition. growth and real diversification “Saudi Arabia is moving away from being the The opportunities will be long-term.” gas station to the world. Sustainable economic “As U.S. companies invest more in and is the goal of Saudi Arabia.” growth and real diversification is the goal of export more to Saudi Arabia, it’s going to Abdullah Zainal Alireza Saudi Arabia.” The Kingdom is committed create more jobs here in Illinois and across Saudi Minister of Commerce and Industry to using its wealth to develop a robust business America,” emphasized Secretary Locke. Job

U.S.-Arab Tradeline • Spring 2010 5 Siraj Capital: Building Future Entrepreneurs

iraj Capital is committed to backing Saudi For Siraj Capital, identifying opportunities SArabia and MENA-based entrepreneurs and investing in them is just the first step. who have the vision, ambition and determina- What follows afterward is where Siraj shows tion to build future market leaders. “We believe its commitment to incubating, and not just that small is the ‘new big’ and that this sector investing, in companies and initiatives. As holds the greatest potential for economic board members of their portfolio companies, growth and job creation in Saudi Arabia,” Siraj plays an active role in helping CEOs explains Ibrahim Mardam-Bey, Chief Execu- achieve their business goals. tive Officer and Executive Vice President of “We get very involved in our projects. If Business Development and Project Manage- we are incubating a company, we conduct one ment at Siraj Capital. or two-day strategic sessions, and create a list Founded in 2005 by Mardam-Bey and Dr. of assignments for each of us on the Siraj Ghassan Ahmed Al Sulaiman, Siraj Capital development team. This becomes our manifesto is a merchant private equity investment firm for the year and then we continuously follow- with 40 employees – 16 of whom are invest- up with the project,” explains Mardam-Bey. ment professionals. Headquartered in Jeddah, Siraj Capital’s hands-on approach is clearly Siraj Capital has additional offices in Riyadh, successful. In January, three of its portfolio Dubai’s International Finance Center (DIFC) companies were recognized among the fastest Dr. Ghassan Al Sulaiman, Chairman of and Beirut, Lebanon. growing start-up companies on the Saudi Siraj Capital Ltd. In less than five years, the company has Fast Growth 100 List. established a strong local and regional presence for Holiday Inn Express, a three-star limited in the private equity and Islamic finance capital “We believe that small is the new hotel, and it is currently developing three sites markets. It has also become a recognized leader in and around Jeddah as part of its Kingdom- in the emerging business development and big and that this entrepreneurial wide roll out plan. incubation market by leveraging its team sector holds the greatest potential Siraj Capital CEO Ibrahim Mardam-Bey members’ entrepreneurial experiences and for economic growth and job recently observed that “consumer-driven management expertise. businesses – such as budget hotels, casual Since its inception, Siraj Capital’s private creation in Saudi Arabia.” dining, and food and beverage – are a big equity business has focused on offering “enlight- Siraj CEO Ibrahim Mardam-Bey sector under exploration, as well as the service ened capital solutions” primarily but not industries that feed into that infrastructure.” exclusively to the Saudi Arabian market. “We The company is currently in exploratory talks looked at the region in general and ascertained An annual award launched in 2009, the to establish a $100 million private equity fund that Saudi Arabia has the largest economic Saudi Fast Growth 100 identifies and ranks to acquire SMEs in Saudi Arabia. market with the greatest potential in terms of the fastest-growing companies in the In addition to leading the way in the private untapped opportunities,” says CEO Mardam- Kingdom. Jeddah-based Midrar Develop- equity and business development and incuba- Bey. Factors such as the Kingdom’s youthful ment Company, a real estate specialized tion markets, Siraj has become one of the key population demographics, significant urbaniza- services company, was ranked fourth on the players in the Islamic finance industry as a tion, economic reforms and mega-infrastruc- list; Delta United, a Riyadh-based telecom result of its specialization in Shariah-compliant ture and reinvestment programs make Saudi infrastructure service provider, was 11th, structures. Arabia one of the world’s most exciting emerging and Lomar, the leading Saudi thobe brand, “During the past ten years, there has been markets, Mardam-Bey suggests. was ranked 21st among the 31 companies a significant movement toward Islamic He notes that the “Siraj DNA” is what designated as start-ups. financing, and we are one of the first compa- distinguishes the company from other private Currently, Siraj has 12 portfolio companies nies involved in the structuring of a Sukuk equity investment firms. “We utilize what we and numerous initiatives, such as the Jeddah offering for Western projects. We see a lot of call a ’white box’ approach – as opposed to the Central Business and Historic District, the opportunity around Sukuks in the future,” more traditional ’black box,’ which is a typical Arab Tourism Bank, hodema Consulting explains CEO Mardam-Bey. fund with no investor involvement in projects,” Services, Sukuk.net, and Clark Construction Siraj Co-founder and Chairman of the Mardam-Bey points out. “We are very trans- KSA, to name just a few. Siraj has exclusive Board, Dr. Ghassan Ahmed Al Sulaiman, is parent and hands-on with our investments.” master development rights in Saudi Arabia one of Saudi Arabia’s most successful entre- preneurs. He sits on the boards of numerous public and private entities, including the National U.S.-Arab Chamber of Commerce, where he serves as Co-Chairman.

6 NUSACC • www.nusacc.org INTERVIEW Dr. Fahad Al Sultan Secretary General of the Council of Saudi Chambers of Commerce and Industry The twenty-five Chambers of Commerce and years through the King Abdullah Program ences and exper- Industry in Saudi Arabia have initiated for Improving Public Education under The tise would add numerous programs to encourage innovation Ministry of Education. In addition, the old value to both of and entrepreneurship in the Kingdom. Each rules, laws and regulations from the 1980s our countries’ of the chambers has opened support centers -1990s must be changed. We need to continue economies. Dr. Fahad Al Sultan for businessmen and women, providing new to ease restrictions for trade and investment. entrepreneurs with consultation, training, What steps can the Council take to entice American companies to invest to Saudi Arabia? financial advice and help in identifying invest- “It’s time for the new entrepreneurs, We are not doing enough at the moment. The ment opportunities. The Women’s Section instead of the older established in the Riyadh Chamber of Commerce, along Saudi business community needs to invite with the Khadijah bint Khuwailid Business- businesses, to take the lead in members of the American business community women’s Center in Jeddah, have become two of defining and re-invigorating the to come to Saudi Arabia and see how much the most influential women’s institutions for national economy. They represent we have in common. Our economies comple- ment rather than compete with each other. entrepreneurship and finance in the Arabian the future of the Saudi economy.” Gulf region. At the Council, we are very action-oriented, Secretary General Dr. Fahad Al Sultan and we want to do something concrete. We The three largest chambers – Riyadh (62,000 have learned that if we bring together business members), Jeddah (41,000 members) and the Has the growth of entrepreneurs in Saudi people from different parts of the world and Eastern Province (39,000 members) – host sit them down together in one room to discuss yearly entrepreneurship forums and have Arabia led to new opportunities for American SMEs? joint ventures, deals will be made. I encour- established Small and Medium Enterprise age the U.S.-Arab Chambers of Commerce (SME) Development Centers. We have a gold rush of opportunities. I can to bring delegations of business men and In a recent interview, H.E. Dr. Fahad Al give you a list of thousands of projects – in women to Saudi Arabia for several days of Sultan spoke with U.S.-Arab Tradeline about education, infrastructure, telecommunica- B2B matchmaking twice a year. the growing entrepreneurial environment in tions, agriculture, transportation and health, the Kingdom and its impact on U.S.-Saudi to name just a few. There is also a new trend commercial relations. in Saudi Arabia’s industrialization program Development Center which involves building industrial clusters that for Small & Medium What role does the entrepreneur play in the focus on special sectors, such as automotive emerging Saudi economy? or electronics. We want U.S. companies to Enterprises be aware of this trend and to come on board. We regard the entrepreneur as the major engine In 2003, the Council of Saudi Chambers Even though the global economy faces many driving the economy. SMEs make up 92 of Commerce and Industry established the challenges, we are fortunate to still have these percent of the businesses in Saudi Arabia, and Development Center for Small and Medium projects, which represent golden opportunities they employ over 80 percent of the work force. Enterprises (SMEs) in recognition of the for our business partners. These days, the global economy faces many important role that SMEs play in Saudi challenges, and we have to actively participate Most Saudis would love to see more American Arabia’s emerging economic development in shaping the future, instead of just waiting businesses involved in our development projects, by diversifying the economy and creating for the future to happen. It’s time for the new but the feeling here is that the Americans are new jobs. entrepreneurs, instead of the older established missing the boat and, as a result, both sides The primary objectives of the Center businesses, to take the lead in defining and lose. We badly need American know-how, include educating Saudis in general about re-invigorating the national economy. They experience, knowledge and managerial skills. the importance of entrepreneurship in represent the future of the Saudi economy. The participation of American companies in Saudi Arabia and strengthening the role our projects is of great value, not just for our of regional Chambers of Commerce as What needs to be done to support the growth economy but for our cultures. There is a great mentors for SMEs. In addition, the Center of an entrepreneurial culture in Saudi Arabia? difference between American know-how and offers easier access to financing for start-up It is no longer enough in the global community that from other countries. businesses, prepares studies on the emerging to be good; one has to be excellent. We need I don’t understand why Americans are hesitat- SME sector, and cooperates with the Saudi to start with the schools and educate young ing to work in Saudi Arabia, especially since Exports Development Center to enhance people so that they will be global instead of just there are such long historic ties between our the exporting capability of SMEs. To local citizens. They need to speak a universal two countries dating back almost a century. date, the Center has conducted approxi- language and understand international trade Our relations with China are less than three mately 500 consultations with entrepre- and competitive markets from both an Eastern decades old. In 2009, 95 international business neurs and has registered more than 100 and Western perspective. delegations came to Saudi and only one, a non- participants in training seminars held In this context, the educational system in Saudi business delegation, arrived from the United throughout the Kingdom. Arabia has been evaluated during the last ten States. Both sides are losing. Sharing our experi- U.S.-Arab Tradeline • Spring 2010 7 INTERVIEW Professor Choon Fong Shih Founding President and Professor of Electrical Engineering at the King Abdullah University of Science and Technology (KAUST)

Inaugurated in September 2009 in Thuwal, Research Park right here on our campus. In Saudi Arabia, the King Abdullah University of fact, the amount of floor space for innovation Science and Technology (KAUST) is the world’s (24 acres of laboratory space) far exceeds the newest state-of-the-art graduate level research floor space given to the academic campus and entrepreneurial university. KAUST’s (two acres). We also provide our students Industry Collaboration Program (KICP), with the financial resources and support Technology Transfer Office, and Research staff to pursue research projects that address Park underscore the university’s mission to the scientific challenges of our time. On top convert research discoveries into practical of all this, we offer a very livable, contained applications, to incubate new businesses, environment along the Red Sea. This creates and to maximize industrial collaboration a very compelling value proposition for the within Saudi Arabia as well as regionally, best minds from around the world to come and globally. In an exclusive interview with to KAUST. Photo courtesy of KAUST NUSACC, KAUST President, Professor Choon KAUST President, Professor Choon Fong Shih Fong Shih, spoke about the key role KAUST You were the former President and Vice- create and discover new knowledge and bring plays in developing entrepreneurship within Chancellor of the National University of that knowledge to benefit humankind. We are Saudi Arabia. Singapore. What compelled you to take on the challenge of leading a start-up graduate- here to advance science and technology and we KAUST currently has 375 students from 45 level university? are also here to contribute to economic devel- opment in Saudi Arabia. The entrepreneurial countries. What types of students and faculty It was the audacity of King Abdullah’s vision. has KAUST attracted? culture is the key element that contributes to The King wants KAUST to be the new economic development by creating new busi- We bring in people with big ideas, big ambition “House of Wisdom” and to continue the great nesses, jobs and wealth, all of which lends to and aiming for big impact. I always say that scientific traditions established during the sustainable competitiveness. timid individuals need not apply. The people Golden Age of Islam. When I was making my who apply to a start-up university like KAUST decision three years ago, I stood on the site are culturally, intellectually and professionally which is now KAUST and there was nothing “Our students are risk-takers and adventurous. These are the ingredients that other than sand and sea. I decided it was the entrepreneurship is all about risk- contribute to entrepreneurship. Our students opportunity of a lifetime to make a contri- taking. We have the right people are risk-takers and entrepreneurship is all about bution to addressing the global challenges of here and we can offer them a long risk-taking. We have the right people here and our time – renewable energy, clean water and we can offer them a long runway from which sustainable food sources. KAUST is all about runway from which their research their research projects can take off. These are the audacity of ambition and going where no projects can take off. These are the the individuals who will play a catalytic role one has ever gone before. This is what I found individuals who will play a catalytic in economic development within and beyond very compelling. role in economic development Saudi Arabia. In addition, the Red Sea is a treasure that within and beyond Saudi Arabia.” needs to be protected and that is another one of KAUST’s objectives that is very important KAUST President, Professor Choon Fong Shih to me. The Red Sea has the second largest coral reef in the world, but it is also a passage- How will the university promote entrepreneur- way between East and West and an essential ship within Saudi Arabia? ecosystem for fishery and marine life. The Four Tigers (Hong Kong, Singapore, South We have smart, talented and entrepreneurial Korea and Taiwan) are growing and in the students and faculty here, and we have the next ten-to-twenty years the economy of Asia funding to enable them to develop key tech- KAUST Campus Library at Sunset will be equal to the economies of Europe and nologies in renewable energy, clean water, In addition to our students from around the America combined. The Red Sea is going to sustainable food sources and the environment. world, we have 71 professors and staff recruited become one of the most important gateways What is often lacking in the advancement of from the best universities in over 70 countries. between East and West. As a result, KAUST science and technology are not the funds, but They bring with them a wide range of expe- is where things are going to happen. a source of entrepreneurial people. We have the people. riences and perspectives and this builds an What is KAUST’s mission? entrepreneurial culture. KAUST provides our KAUST has created a small ecosystem for students and faculty with the best facilities. Our mission is clear. We are a research and entrepreneurship and enterprise. We have the We have a Technology Transfer Office and entrepreneurial university. Our objective is to KAUST Industry Collaboration (KIC), which continued on next page 8 NUSACC • www.nusacc.org Professor Shih – from previous page is a strategic business-focused organization that aligns our Research & Development with industry partners on a local and global scale. In addition, our Technology Transfer and Research Park brings in major corporate just a cause – it can be big business. In addition businesses to share their experiences and knowl- to protecting the environment and making edge on how to grow a high tech enterprise. life sustainable beyond the next 50 years, green technology creates new opportunities, “Our mission is clear. We are new business, and new models for economic a research and entrepreneurial development. It’s up to us to turn sustainable university. Our objective is to create development into new opportunities. and discover new knowledge and Have any of KAUST’s partners in the Industrial The KAUST Industrial Collaboration Program Research Park bring that knowledge to benefit Collaboration Program (KICP) established a humankind. We are here to advance physical presence in the Research Park? science and technology and we are Dow Chemical will be our first tenant in the Ecosystem for also here to contribute to economic Research Park, and this will provide opportuni- ties for new start-ups and spin-off companies Entrepreneurship development in Saudi Arabia.” among our graduates. Large companies are and Enterprise KAUST President, Professor Choon Fong Shih less apt to change a business model that has proven successful for them. However, they can inspire small companies and start-ups to AUST’s Industrial Collaboration This gives our students and faculty the oppor- look for a better model. This is where we will KProgram (KICP), Research Park, and tunity to work with entrepreneurs and create see big advances. Innovation Clusters are designed to start-up companies right here on campus. We maximize academic and industrial collab- want to make it easy for them to start a busi- What are your goals for KAUST during the oration, stimulate innovation, economic ness, so we provide venture funds, hardware next five to ten years? growth and job creation within and beyond and software support and seed-funding. The In ten years, I would like to see KAUST Saudi Arabia. Currently there are 22 contribution toward enhancing economic stand among the world’s leading scientific partners in the KICP, including such U.S. development and creating jobs in Saudi Arabia universities. We are aiming high and chart- firms as GE, Boeing, IBM, Dow Chemical, will be one of the key factors in determining ing the course to reach that goal, and we are and Schlumberger. seed-funding. moving this bold endeavor forward at an Dow Chemical will be the first tenant KAUST does not see itself as an Ivory Tower. unprecedented speed, scope and scale. This in the Research Park, where the U.S. firm We plan to tackle the global challenges of our captures the imagination of young people, plans to house its corporate R&D serving time by working with established companies, especially young entrepreneurs. We have a the Middle East and North Africa (MENA) creating start-ups, and reorienting established saying in Singapore – “Do not make little region. Designed as a center for incubation companies to new directions. Take green tech- plans for they fail to stir men’s blood.” Our and entrepreneurship and intended to help nology, for example. Green technology is not direction is clear and we will succeed. diversify the Saudi economy, the 772-acre facility is poised to become the region’s Solar panels, part of the Solar and Alternative Energy Research Center at KAUST. premier research park. The Innovation Clusters were the first buildings to be constructed in the Research Park and will open in late 2010. Their targeted tenants are established companies collaborating with KAUST research centers and faculty, as well as early stage technology start-ups.

Work being done in the Soil Lab Cluster

U.S.-Arab Tradeline • Spring 2010 9 Alagat Company: A Step Ahead of the Changing Economy .E. Usamah Al-Kurdi, President and employees. It has since grown to ten, HChairman of the Board of Alagat and Al-Kurdi expects to increase his Company, an international investment staff to twenty in the near future. company based in Riyadh, has his finger on During Alagat’s start-up years, the pulse of the Saudi Arabian economy. A Al-Kurdi acquired a reputation for former Secretary General of the Council of incubating new businesses and facilitating Saudi Chambers of Commerce and Industry joint ventures. Foreign companies looking from 1990 to 2000, Al-Kurdi has witnessed to invest in the Kingdom and Saudi many of the groundbreaking reforms that companies looking for international Usamah Al-Kurdi, President and Chairman of the Board of are facilitating bilateral trade and investment partnerships turned to Alagat, which Alagat Company and changing the face of doing business in helped to establish one of the first Saudi- the Kingdom. Chinese joint ventures – Saudi Makamen – in “As a result of the global financial crisis, the Kingdom. many foreign companies are turning to Saudi Al-Kurdi currently has four “mega- Arabia as their saving grace because they businesses” in the pipeline – which include don’t need to invest any cash, the economy one in sustainable energy and another – the is stable and thriving, and the companies International Food and Agriculture Invest- only need to bring their know-how and ment Company - in food security. “I guess experience,” comments Al-Kurdi. American one never stops being an entrepreneur,” companies have shown less interest in says Al-Kurdi, who notes that now is a exploring these opportunities than countries golden time for SMEs, as well as large such as China, Canada, Russia and Australia. companies, to invest in the Kingdom. “Both the United States and Saudi Arabia There has been a dramatic shift in need to work harder to bring American doing business in Saudi Arabia, and he investors and businessmen and women back attributes much of this to Saudi Arabia’s to the Kingdom,” Al-Kurdi suggests. Exhibitions organized by Alagat Company (below and center) accession to the World Trade Organization (WTO) in 2005. “I believe we went beyond “It is now a golden time for “One reason I wanted to open my own the requirements of the WTO because it business in 2000 was the extensive reform I became apparent that an open economy would SMEs, as well as large companies, saw taking place in Saudi Arabia’s economic, yield more opportunities,” Al-Kurdi says. to invest in the Kingdom. As a political, educational, and social life during my tenure at the Council,” Al-Kurdi says. result of the global financial crisis, “This told me that Saudi Arabia was embarking many foreign companies are now on major changes and that I should be ready turning to Saudi Arabia because to move forward or expect to be left behind,” they don’t need to invest any cash, he explains. An entrepreneur at heart, Al-Kurdi estab- the economy is thriving, and the lished Alagat Company in 2000 and relied companies only need to bring their on the expertise he acquired during his ten know-how and experience.” years at the Council in events management, exhibition planning, media relations and Usamah Al-Kurdi, President and Chairman international investment development to bring “There is also a new legal platform for foreign of the Board of Alagat Company in his first clients. Alagat began with two companies, and many sectors – such as mining, railroads, and the economic cities – have been Al-Kurdi, a Board Member of the National opened for foreign investment.” U.S.-Arab Chamber of Commerce, would like to see the Saudi government offer more concrete support to the emerging entrepreneurs in the Kingdom. “I don’t think we are doing enough to support our SMEs. We have some programs available, but we need to increase them and to make more cash available for these new entrepreneurs. SMEs lead to more job creation, which should be high on our agenda,” he emphasizes.

10 NUSACC • www.nusacc.org INTERVIEW Amer Kayani Counselor for Commercial Affairs, U.S. Embassy, Riyadh Amer Kayani has been the Department of fully in Saudi Arabia for almost 70 years and Commerce’s senior commercial officer in Saudi are market leaders in many sectors. Significant Arabia since 2008. He recently shared his opportunities for American companies exist views with NUSACC regarding the emerging in the following sectors: medical equipment entrepreneurial environment in Saudi Arabia. and healthcare, railways, defense, infor- mation technology, telecommunications, Amer Kayani What changes have you observed in the entre- construction, water, petrochemicals, power, preneurial climate in Saudi Arabia? and franchising. visiting U.S. business executives. In addition, The Saudi economy, for the most part, has in-depth counseling on opportunities in this been immune to the financial stress that Are there still key impediments that make market are available through our network of other Arabian Gulf economies experienced relationships between U.S. businesses and 109 domestic U.S. Export Assistance Centers in 2008 - 2009. The Saudi government has emerging Saudi SMEs difficult? (USEACs) across the United States. pledged to spend $400 billion on infrastruc- There are no significant barriers to doing ture projects over the next decade and is also business in Saudi Arabia for American SMEs. Have American businesses “missed the boat” working to create a knowledge-based economy To succeed in this market, a visit is a must. by not actively re-entering the Saudi market that focuses on education, technology and SMEs will need to invest significant time to after 9/11? financial services. As a result, a number of cultivate personal relationships with their U.S. companies are no longer the only players young Saudis have started to take interest in Saudi counterparts. in this market. They face serious competition entrepreneurship. Also, the Government of from Asian and European companies and, in Saudi Arabia has been working very hard to How does the U.S. Embassy in Riyadh make many cases, contracts that would have formerly American SMEs aware that they may have improve the business climate both for local been awarded to American companies have counterparts with which to work in the Kingdom? and foreign companies. In fact, in 2009, gone to the competition. Yet, Saudi compa- Saudi Arabia was ranked number 13 out of Every year, on average, we take 10 to 12 trade nies remain eager for deeper contacts with 177 countries by the World Bank for ease of missions from Saudi Arabia to the United their American counterparts. Saudi Arabia’s doing business. States, where we introduce Saudi buyers to market potential has also started to capture American companies. We also recruit and bring the interest of American CEOs from a range Has the growth of entrepreneurs led to new trade missions from the United States to Saudi of industries and services, and Saudi Arabia business and investment opportunities between Arabia. The U.S. Commercial Service offices has started to emerge as the leading market the U.S. and Saudi Arabia? in Riyadh, Jeddah and Dhahran also offer an in their corporate strategies for Middle East American companies have operated success- executive appointment (Gold Key) service to and North Africa. Lubna Suliman Olayan Honored as Cornell Entrepreneur of the Year ubna Suliman Olayan, CEO of Olayan a part of business” at the Olayan Group. She in 1969, and it operates or actively participates LFinancing Company in Saudi Arabia, emphasized that for any company to be in more than 40 companies. was recently named Cornell Entrepreneur sustainable, it has to be socially responsible. In 1986, Olayan was a pioneer in the Saudi of the Year. “It will ultimately pay off for Arabian work force, which was closed to most A 1977 graduate of Cornell the environment and for women. Today, women in Saudi Arabia account University in Ithaca, New York, people,” she commented. for approximately six percent of the work Olayan was honored at a ceremony After completing her educa- force, according to Olayan. The Olayan held on the Cornell campus in tion at Cornell University and Financing Company is currently partnering April 2010. Founded in 1985, the working at Morgan Guarantee with American corporation Kimberly-Clark Cornell Entrepreneur of the Year in New York City, Olayan joined to train and teach uneducated women in Saudi Award is given annually to a the family business in 1986. Arabia and prepare them for the job market. Cornell graduate who best exempli- Founded in 1947 by her father, Fortune magazine included Lubna Olayan fies entrepreneurial achievement, the late Suliman S. Olayan, the in its “Global Power 50 Women” list from community service and high Olayan Group is a private 2004 to 2009 and Forbes magazine named ethical standards. multinational enterprise engaged her one of the “World’s Most Powerful Women” During the award ceremony Lubna Suliman Olayan in distribution, manufacturing, from 2005 to 2007. In 2005, Time magazine on April 15, Olayan noted that services and investments. The cited her as one of the “Top Most Influential “the culture of entrepreneurship has become Olayan Financing Company was established People in the World.”

U.S.-Arab Tradeline • Spring 2010 11 AllWorld Network: Identifying 21st Century Entrepreneurs n 2008, the Saudi Arabian General Invest- ture in Saudi Arabia. But wherever we went, Iment Authority (SAGIA) launched the everyone was excited about the project. Whether Saudi Fast Growth 100, the first national it was a chamber of commerce, a media outlet, program that highlights fast-growing entre- a business or an investment bank, everyone preneurial companies. wanted to help.” Start-ups play a critical role in stimulating The entrepreneurs were very proud to be innovation in their local economies and gener- recognized within their regions, adds Habiby. ating home-grown jobs, and SAGIA’s National “It was not so much about themselves,” she Competitiveness Center (NCC) wanted to says, “but more about the important role showcase these emerging small and medium- entrepreneurship plays in the regional economy sized enterprises (SMEs) in the Kingdom. Prior of Saudi Arabia and how this role is under- to 2008, Saudi Arabia did not appear on any valued.” She also notes that the women global rankings of entrepreneurship. entrepreneurs in particular were determined A l - W a t a n to show how they are helping to build Saudi Anne Habiby, co-founder of AllWorld Network newspaper a nd Arabia’s future. AllWorld Network When Habiby and Coyle came back with Michael Porter, b e c a m e j o i n t enough companies qualified to meet the selec- Chairman of founding partners tion criteria – international standards of AllWorld Network of this initiative. competitiveness developed by Inc. magazine The two founding to create the Inc. 500 – “it blew everyone partners, joined by away,” Habiby recalls. This marked the begin- a n u m b e r o f ning of the Saudi Fast Growth 100 List. Strategic Partners AllWorld research indicates that there are and Nominating approximately 2,500 existing growth compa- Partners, set out to locate fast-growing, privately nies in the emerging world that could fuel held companies. economic development in the next five years. AllWorld Network, co-founded in 2007 by By putting these entrepreneurs on the global Anne Habiby and Deirdre M. Coyle, Jr. was radar screen, Habiby and Coyle estimate one an ideal partner for this project. In 1999, Coyle million jobs can be created. and Habiby had joined forces with Harvard Business School Professor Michael Porter “This is the century of entrepreneurship and Inc. magazine to create the U.S. Inner in a way the history of the world has City 100 list. The goal was to identify entrepreneurs where no one thought they never before seen. All the forces – a existed – in America’s economically distressed global economy, advancements in inner cities. One hundred and twenty technology, travel and companies entered the competition the first communications – are aligned for a year, and by 2008, more than 8,000 massive explosion of entrepreneurship.” companies were vying to be on the list. “Over the last ten years, we began to Anne Habiby, co-founder of AllWorld Network see that high-growth entrepreneurship is a force multiplier socially and economically,” “This is the age of the global entrepreneur,“ explains Habiby, a national expert in economic says Coyle. “We speak a global language development. “We decided to be very entre- much more so than in the past. Also, we are preneurial ourselves and go global by trying seeing the nimbleness and abilities of entre- to find and advance all the growth entrepre- preneurs. You no longer have to be big to neurs of the emerging world by 2015.” move into a global market – you just need Deirdre M. Coyle, Jr., co-founder of AllWorld Network Between January and March of 2008, the technology, the capability and an under- Coyle and Habiby made numerous trips to standing of the market.” of entrepreneurship in a way the history of Saudi Arabia. By May of that year, it was clear Habiby recalls that she began to see tectonic the world has never before seen,” Habiby notes. that they could easily identify more than 100 shifts in the global economy several years ago. “All the forces – a global economy, advance- promising companies. “I was surprised,” says Social and political structures are opening up, ments in technology, travel and communica- Coyle. “We thought it was going to be much she believes, and there is a pent-up energy in tions – are aligned for a massive explosion of more challenging because at that time there India, China and the countries in the Middle entrepreneurship, and we plan to have a ringside was not as large an entrepreneurial infrastruc- East and North Africa. “This is the century seat to this next economy.” 12 NUSACC • www.nusacc.org GUEST COMMENTARY A Salute to Saudi Entrepreneurs: Backbone of a 21st Century Economy

efore I joined Mosaica Education, a start-up berg principle in physics or the Hawthorne made existing businesses more efficient or Bschool-management company, in 1998, effect in industrial psychology. The mere act improved the lives of consumers. The world I spent 17 years in the venture capital/private of exposing a company or a market to public of entrepreneurship is inclusive: open to equity business. It was a great job because I view generates an awareness that causes others immigrants and minorities; to PhDs and got to work with entrepreneurs intent on to change their attitudes. When banks and college dropouts; to geeky inventors and growing their businesses. They were invariably investors discover the extent and success of gregarious salespeople. If their ideas and interesting, creative and dynamic people. small and medium-sized businesses, they execution are good enough, their perseverance Entrepreneurs are ridiculously ambitious in develop programs to cater to that market is strong enough, and their ability to under- their goals, and they understand the need to segment. When governments learn of the stand when other contributors’ ideas will push collaborate with others to achieve them. quality and extent of entrepreneurial activity, things forward is sagacious enough, they will Hierarchy, structure and rule-making may they too develop policies and programs to be welcomed by the capital markets and their be what is required for some organizations, nurture those businesses. targeted customer base. but not so for growth entrepreneurs. In that It wasn’t always so. Not long ago, in many world, it takes teamwork, flexibility, respon- sectors of the U.S. economy, barriers to entry siveness and a sense of urgency. I’ve been to for start-up businesses and entrepreneurial hundreds of planning sessions for entrepre- endeavors were almost insurmountable. neurial organizations over the years. One Regulatory constraints, tax policies, market person suggests an idea, another person takes inequities, biases among lenders and investors that idea a step farther, someone writes it and even so-called “good old boy networks” down, and before the ink is dry, a business conspired against entrepreneurial success. plan is being executed. When I began in the venture capital business Mosaica Education is itself an entrepre- in 1982, for example, it was almost impossible neurial enterprise. Since our founding in 1997, to convince a successful executive to leave a we have grown to where we currently manage good job at a large corporation to join a 77 schools, educating 18,000 5-18 year-olds fledgling entrepreneurial organization, much every day. We were named four times to the less to convince a bank to lend money to one Inc. Inner City 100, and we were number one of our portfolio companies or to qualify for on that list in 2005. We expanded into the a government contract or strategic relationship GCC more than six years ago and have estab- Michael Connelly, Chief Executive Officer of Mosaica with a large corporation. lished operations in Qatar and the United Education, Inc. Improvements in governmental regulatory Arab Emirates. It was therefore logical for us and tax policies, the development of more to represent the “American List” in welcoming I salute the AllWorld Network and its efficient credit and equity markets, and cultural the Saudi Fast Growth 100 (SFG 100) winners sponsors for shining a light on the importance and educational changes combined to level to the AllWorld Network during their 2009 of entrepreneurs to the Saudi economy. I also the playing field, and entrepreneurship became and 2010 summits in Riyadh, Saudi Arabia. salute the National U.S.-Arab Chamber of ascendant. Role models emerged, and they I have gotten to know the CEOs of many of Commerce for detailing some of their stories mentored apprentices. Service industries these Saudi companies. True entrepreneurs, and perspectives in this issue of U.S.-Arab catering to small and medium-sized businesses their attitude toward change, growth and Tradeline. But I especially salute the SFG 100 were developed. Success bred success. customer service are the lifeblood of a entrepreneurs themselves. They will be the Entrepreneurs compete fiercely, to be sure, 21st-century growth economy. first to tell you that they are but representa- but they also work collaboratively. They share The SFG 100 and the other AllWorld tives of their teams, teams that work together their successes with whomever helps them Network lists provide essential support to daily to build on yesterday’s ideas and push push things forward, and they celebrate and these emerging innovations forward. I want to especially learn from the successes of others. entrepreneurs. acknowledge those on the list in my business: In my comments to the inaugural SFG A l l W o r l d education. The goal of a 21st-century educa- 100 winners, I said that I hoped Mosaica founders Anne tion is to create life-long learners – candidates would one day begin operations in the H a b i b y a n d who may themselves become the entrepreneurs Kingdom, and I set a goal: to make it to the Deirdre Coyle of the future. dais in Riyadh as an honored member of the frequently refer In the United States, it is now an economic SFG 100. to the notion of tenet that entrepreneurship is a driver of the “ v i s i b i l i t y American economy. Many of the “big” ideas Michael Connelly is Chief Executive Officer of economics,” the of the last 40 years were generated by entre- Mosaica Education, Inc., which manages K-12 economic equiva- preneurs and, just as importantly, so were schools in the United States and provides educa- lent of the Heisen- thousands of smaller, incremental ideas that tional services in the MENA region. U.S.-Arab Tradeline • Spring 2010 13 2010 Saudi Fast Growth Companies 5 Year Standard 2008 Revenue Rank Company Name City Industry Growth Ranges (2004-2008) 1 WorleyParsons Arabia Ltd Al-Khobar Construction & Engineering 4358% 200-500 million SAR Public Relations, Media & Publishing, 2 Full Stop Jeddah Advertising & Marketing 1766% 10-50 million SAR 3 Secutronic Jeddah High-Tech & Telecommunications 1611% 10-50 million SAR 4 IT Security Training and Solutuions-I(TS)2 Riyadh High-Tech & Telecommunications 819% 50-200 million SAR 5 Construction Building Co. Ltd (BCC) Al-Khobar Construction & Engineering 725% 50-200 million SAR 6 Intercontinental Travel Co Jeddah Travel & TourismTransportation & Aviation 714% 10-50 million SAR 7 Tamkeen Industrial & Trading Co. Ltd Jeddah Professional, Scientific & Tech Services 608% 10-50 million SAR 8 Brains Al-Khobar Construction & Engineering 574% 10-50 million SAR 9 Advanced Communications Electronics Systems Co, Ltd (ACES) RIYADH High-Tech & Telecommunications 567% 200-500 million SAR 10 alcantara group Jeddah High-Tech & Telecommunications 474% 10-50 million SAR 11 Al-Yusr Installment Riyadh Finance & Insurance 446% 200-500 million SAR 12 UEC-United Electronics (eXtra) Al-Khobar Consumer Goods 428% 1 billion+ SAR 13 Integrated Networks LLC (iNET) Riyadh High-Tech & Telecommunications 369% 10-50 million SAR Ghassan A H Al Sulaiman Trading Establishment 14 (AlGhassan Motors) Jeddah Automotive 356% 50-200 million SAR 15 Femi9 Jeddah Textiles & Fashion 299% 50-200 million SAR 16 Royah Jeddah High-Tech & Telecommunications 296% 10-50 million SAR 17 Al Fouzan for Trading and General Construction Riyadh Construction & Engineering 293% 500-1,000 billion SAR 18 STESA Riyadh High-Tech & Telecommunications 291% 200-500 million SAR 19 Applied Technologies Riyadh High-Tech & Telecommunications 276% 10-50 million SAR 20 Saudi Readymix Concrete Company Al-Khobar Construction & Engineering 256% 1 billion+ SAR 21 AlMuhaidib Technical Supplies Riyadh Construction & Engineering 255% 50-200 million SAR 22 Saudi Networkers Services Riyadh High-Tech & Telecommunications 246% 50-200 million SAR 23 Dar Jana Internation Schools Jeddah Health, HealthCare, Education, & Training 230% 10-50 million SAR 24 Kindasa Water Services Co Jeddah Energy & Power, Water 215% 50-200 million SAR 25 Petrocon Ltd Al-Khobar Construction & Engineering 202% 50-200 million SAR 26 KPMG Al Fozan & Al Sadhan Riyadh Management Consulting 194% 50-200 million SAR 27 U-MARK(United Marketing and Trading Company) Riyadh Consumer Goods 192% 50-200 million SAR 28 Jeddah Cables Company - Energya Jeddah Energy & Power, Water 181% 1 billion+ SAR 29 MMP-Almunif Pipe Riyadh Construction & Engineering 172% 50-200 million SAR 30 Sports Club Company - Body Masters Riyadh Entertainment and Recreation 146% 50-200 million SAR 31 impaQta Riyadh Management Consulting 139% 1-5 million SAR Public Relations, Media & Publishing, 32 DMS Jeddah Advertising & Marketing 123% 10-50 million SAR 33 Mohammed Omer Kabli Trading Est. - Universal Cars Jeddah Automotive 123% 10-50 million SAR 34 Eye 2 Eye Optical Jeddah Consumer Goods 119% 10-50 million SAR 35 Al Farrad Car Rental Company Riyadh Travel & TourismTransportation & Aviation 110% 5-10 million SAR 36 Yibreen International Ltd Riyadh Health, HealthCare, Education, & Training 106% 5-10 million SAR 37 Naba Water Factory Tabuk Energy & Power, Water 104% 10-50 million SAR 38 Saudi Geophysical Consulting Office Al-Khobar Energy & Power, Water 80% 10-50 million SAR 39 Elaj Medical Services Company Jeddah Health, HealthCare, Education, & Training 66% 50-200 million SAR 40 Bafakih & Nassief Law Firm jeddah Professional, Scientific & Tech Services 51% 5-10 million SAR 41 2in1 Food Co. / Shawarmer Food Co Riyadh Accommodation & Food Service 35% 10-50 million SAR 42 ABANA Enterprises Group Co Riyadh Finance & Insurance 32% 10-50 million SAR 43 HANCO Rent-A-Car Jeddah Travel & TourismTransportation & Aviation 30% 200-500 million SAR Public Relations, Media & Publishing, 44 Trans Arabian Creative Communications - TRACCS Jeddah Advertising & Marketing 26% 5-10 million SAR

14 NUSACC • www.nusacc.org 2010 Saudi Fast Growth Start Up Companies

Standard 2008 Revenue Rank Company Name City Industry Growth (2007-2008) Ranges 1 Rumman Company Jeddah Public Relations, Media & Publishing, Advertising & Marketing 596% 1-5 million SAR 2 National Talents Co. for Training and Education Al-Khobar Health, HealthCare, Education, & Training 421% 5-10 million SAR 3 Bonnon Co Jeddah Accommodation & Food Service 302% 5-10 million SAR 4 Midrar Jeddah Real Estate, Rental & Leasing 280% 10-50 million SAR 5 EDUCON for Educational Services Jeddah Health, HealthCare, Education, & Training 256% 1-5 million SAR 6 Green Tangereen Jeddah Public Relations, Media & Publishing, Advertising & Marketing 162% 10-50 million SAR 7 Construction Products Holding Company (CPC) Jeddah Construction & Engineering 142% 1 billion+ SAR 8 Yareem Restaurant Co. Ltd Al-Khobar Accommodation & Food Service 132% 1-5 million SAR 9 Eker Company Ltd. Jazan High-Tech & Telecommunications 127% 5-10 million SAR 10 Innovative Business Solutions-IBS Jeddah Management Consulting 123% 5-10 million SAR 11 Delta United Contracting Company Riyadh High-Tech & Telecommunications 118% 5-10 million SAR 12 Waseel ASP Ltd. Riyadh Health, HealthCare, Education, & Training 100% 5-10 million SAR 13 Mobile Innovative Solutions Company Riyadh High-Tech & Telecommunications 99% 10-50 million SAR 14 International Medical Center Jeddah Health, HealthCare, Education, & Training 97% 50-200 million SAR 15 Visualizit Jeddah Public Relations, Media & Publishing, Advertising & Marketing 83% 5-10 million SAR 16 Elixir Jeddah Public Relations, Media & Publishing, Advertising & Marketing 76% 5-10 million SAR 17 2P for IT and Telco Services Riyadh High-Tech & Telecommunications 70% 50-200 million SAR 18 DNA – (Design & Anaylsis Est.) Jeddah Public Relations, Media & Publishing, Advertising & Marketing 70% 5-10 million SAR 19 Gene-Tech Jeddah Health, HealthCare, Education, & Training 66% 1-5 million SAR 20 Blueprint Communications Jeddah Public Relations, Media & Publishing, Advertising & Marketing 57% 10-50 million SAR 21 LOMAR Jeddah Textiles & Fashion 53% 10-50 million SAR 22 Public Telecommunication Company Riyadh High-Tech & Telecommunications 46% 50-200 million SAR 23 Qanawat Telecom Co RIYADH High-Tech & Telecommunications 25% 1 billion+ SAR 24 Dentalia Clinics Jeddah Health, HealthCare, Education, & Training 25% 5-10 million SAR 25 Saudi Shada for Urban Development Jeddah Real Estate, Rental & Leasing 22% 1-5 million SAR 26 New World High Training Institute Al-Khobar Health, HealthCare, Education, & Training 20% 1-5 million SAR 27 NASA for Pocket PC Jeddah High-Tech & Telecommunications 19% 10-50 million SAR 28 KAI Fitness Gym Jeddah Health, HealthCare, Education, & Training 17% 1-5 million SAR 29 Tafeel for Information Technololgy Jeddah High-Tech & Telecommunications 17% 10-50 million SAR 30 Amwal Financial Consultants Riyadh Finance & Insurance 15% 10-50 million SAR

2010 Saudi Fast Growth Companies to Watch Rank Company Name City Industry 1 Adaptive TechSoft (ATS) Riyadh High-Tech & Telecommunications 2 Ala’a Hariri’s Interiors Al-Khobar Interior Design 3 ALMARWA.net for IT services and E-commerce solutions Al-Khobar High-Tech & Telecommunications 4 Bussma Real Estates Managment Co Riyadh Real Estate, Rental & Leasing 5 Chenille Interiors Company Al-Khobar Construction & Engineering 6 Clear International Advertising Jeddah Public Relations, Media & Publishing, Advertising & Marketing 7 Deep Advertising Jeddah Public Relations, Media & Publishing, Advertising & Marketing 8 Eejaz Al Binaa Jeddah Construction & Engineering 9 Etihad AI Salehia Riyadh Consumer Goods 10 EXPO Logistic Services Jeddah Travel & TourismTransportation & Aviation 11 HR & Beyond Jeddah Professional, Scientific & Tech Services 12 Huseen Yahya Al Sharief Law office Jeddah Professional, Scientific & Tech Services 13 Interactive Saudi Arabia Riyadh High-Tech & Telecommunications 14 International Company for Water & Power Projects (ACWA Power) Riyadh Energy & Power, Water 15 Ittihad Insurance Brokers Jeddah Finance & Insurance 16 Marina Inc. Printers Riyadh Public Relations, Media & Publishing, Advertising & Marketing 17 Marketing & Beyond Jeddah Public Relations, Media & Publishing, Advertising & Marketing 18 Phenomenal PR Jeddah Public Relations, Media & Publishing, Advertising & Marketing 19 Rainbow Center Al-Khobar Education & Training 20 Smart Business Solutions Jeddah High-Tech & Telecommunications 21 Smart Paper Al-Khobar Education & Training 22 Subul Holding Company Jeddah Finance & Insurance U.S.-Arab Tradeline • Spring 2010 15 Abdul Latif Jameel Community Services Programs Offer “Gateways” To Entrepreneurs

“Education and the promotion of free loans of up to SR 5,000 ($1,870). Through The Massachusetts Institute of Technology entrepreneurship culture are keys to the truck and taxi ownership program, 762 (MIT) Arab Business Plan Competition is one of the most recent initiatives launched in the future success of the Arab region trucks were provided to young Saudi men to establish transport businesses, and 322 Saudis partnership with ALJCSP. It is the first award beyond the next five to ten years.” received taxis. of its kind in the Arab world. The 2009 Mohammed Abdul Latif Jameel, President, Franchising is one of the most effective competition brought together entrepreneurs Abdul Latif Jameel Community Services Programs job and business-creation tools globally, from 17 North African, Gulf and Levant and the BRJ program helps established countries, including Saudi Arabia, which was ab Rizq Jameel (BRJ) is one of the most businesses to create new opportunities for represented by six business teams. Bimportant private sector programs that young men and women by opening franchises More than 1,200 applicants registered for assist young Saudi entrepreneurs looking to of their companies. the competition and three of the Saudi teams start their own enterprises. Established – Engleasy, a membership-based in Jeddah in 2007 as an initiative of educational virtual world that teaches the Abdul Latif Jameel Community English; Syphir, a service that Services Programs (ALJCSP), BRJ highlights email messages using an financed 5,110 small businesses and MIT-developed algorithm; and projects and created a total of 41,284 3eesho, a web-based portal applica- jobs for young men and women in 2009. BRJ offers interest-free loans between SR tion that improves people’s lifestyles by During the last two years, the number of BRJ 50,000 – SR 200,000 ($13,300 – $53,300) monitoring habits - were among the nine branches has expanded to 18 throughout the for small businesses that can be repaid within finalists and semi-finalists. Kingdom. five years. Approximately 400 people are “We hope to establish entrepreneurship as The diversified programs offered by BRJ employed by BRJ to follow-up with clients’ a cornerstone of the Arab mindset,” explains include employment training, direct employ- entrepreneurial activities and to collect ment, taxi and truck ownership, micro-project the loans when they are due. financing, SME financing, work-from-home The private sector arm of the and franchise programs. Included among the Jeddah-based Islamic Development 5,110 projects financed in 2009 were beauty Bank Group (IDB) recently signed a salons, laundries, bakeries, wedding-planning memorandum of understanding businesses and cell phone and computer (MOU) with BRJ to promote private distributorships. enterprise growth, stimulate job creation, and share funding expertise in order to support entrepreneurship “We hope to establish in the Kingdom. entrepreneurship as a cornerstone Abdul Latif Jameel research of the Arab mindset. It will indicates that many small businesses involve shaking stale and fail within a three-to-seven year Entrepreneurship workshop in Beirut on March 21 and 22, 2010 period; therefore BRJ is working to led by Ken Morse, MIT Entrepreneurship Center. existing mentalities, educating identify more durable small business the region’s youth, coaching models in the Kingdom. Numerous interna- Hala Fadel, Chair of the MIT Enterprise nascent entrepreneurship tional franchising organizations are cooper- Forum of the Pan Arab Region. “It will involve around the Arab world and, ating with BRJ to locate durable business shaking stale and existing mentalities, educating the region’s youth, coaching nascent entre- most importantly, garnering the opportunities in the food and restaurant, cosmetics, car services, printing and unfailing support of every Arab real estate sectors. entrepreneur in the world.” In addition to practical hands-on Hala Fadel, Chair of the MIT Enterprise training, mentoring and funding of Forum of the Pan Arab Region new enterprises through BRJ, the ALJCSP has other entrepreneurship- related initiatives. The Injaz-Saudi On an even smaller scale, the “productive Program is run in partnership with household” program provided support to other private companies and focuses 24,756 women who set up their own cottage on educating children at an early age preneurship around the Arab world and most industries making perfumes, baked goods or about the importance of being innovative and importantly, garnering the unfailing support other handmade items with the help of interest- starting small business projects. of every Arab entrepreneur in the world.”

16 NUSACC • www.nusacc.org 99 Ways To Be An Entrepreneur Kuwaiti entrepreneur named Social Entrepreneur of the Year for the Middle East and North Africa You often speak of the “intoxicating mix as a role model for my own five children about of endless possibilities of how business can the power of ideas and how “The 99” grew change the world, and the world can change from an idea thought up in the back of a cab business.” How are you changing the world in London to a business that supports just shy as an entrepreneur? of 1,000 jobs. I love that my children have I believe that “The 99” has changed Islam seen first-hand that anything is possible with forever. I have to believe it. It is what drives determination and drive. I love the rush and me, and I am doing this through busi- excitement of knowing that these comic book ness. Over one million copies of “The characters have changed the percep- 99” are sold annually. We launched tion of Islam. the first The 99 Village Theme Park in Kuwait in 2009. The second one will launch by year-end, also in the GCC. I was recently in India where Dr. Naif Al-Mutawa, creator of “The 99” I saw the first animated episode of the 26-episode season that we have Dr. Naif Al-Mutawa is the creator of “The co-produced with Endemol, and 99,” a comic book featuring the first group we have already sold the series to of superheroes based on Islamic archetypes. a major U.S. broadcaster. By the Chairman and CEO of Teshkeel Media end of 2010, we will be broadcast Group, Dr. Al-Mutawa was presented with in just under 100 million homes The Schwab Foundation Social Entrepreneur in the United States. All these of the Year Award, Middle East and North initiatives are changing the world, Africa, at the 2010 World Economic Forum in and business has helped to shape Davos, Switzerland. He was also recognized them. by U.S. President Barack Obama during the You were recently named “Social Presidential Summit on Entrepreneurship, Entrepreneur of the Year for held in Washington DC in late April 2010. the Middle East and North Forbes magazine recently named “The 99” Africa” by the Schwab Founda- as one of the top 20 trends sweeping the tion. How important is social globe. Teshkeel has grown from a comic book responsibility to the way you series into a franchise that includes theme run your business? parks based on “The 99,” as well as a global To me, the definition of social animation series co-produced by media giant entrepreneurship is doing Endemol. Launched in 2004, “The 99” is the well by doing good. “The first licensed entertainment property from the 99” is a consumer-based Islamic world. organization that is for profit. The social goal is to redefine What factors, in your opinion, have led to Islam for both non-Muslims and Muslims the growth of entrepreneurship in the region alike in repositioning Muslim values as those during the past decade? values that all people share and which are Dr. Ramzi Those of us who were fortunate enough to the core of humanity. “The 99” is all about be educated in top business schools were mainstreaming and normalizing Islam. We able to look at the region and recognize the focus on creating top notch content that can huge opportunities available. We were ready compete for and win a place in the hearts to ignore everything we were told, or knew, of those economies that can actually afford Fattah, the Opener about how hard it would be to start a non- to pay for the content. We then use that to status-quo business and just go for it. That maintain a viable [and profitable] business is where the opportunity lies. Not many will that allows us to focus some of our energy come out to challenge you for your space, so on distributing our products to those who you have enough breathing room to grow until cannot afford to pay for it. Jabbar, the Powerful you finally hit it out of the park. By then, you have the full advantage of being the first one What motivates you as an entrepreneur? to make a move. I love the storytelling. I love that I am serving Widad, the Loving Hadya, the Guide U.S.-Arab Tradeline • Spring 2010 17 27 Success Stories As Saudi Arabia positions itself to join the top ten most competitive nations by the end of 2010, all eyes are focused on the new generation of small and medium-sized enterprises (SMEs) that are creating jobs and stimulating growth and innovation. These entrepreneurial companies are the driving force behind a more competitive and dynamic knowledge-based economy. In the following pages, NUSACC presents 27 of these companies – each of them unique and an inspiration for the next generation of Saudi Arabian entrepreneurs.

INDUSTRY COMPANY PAGE WEBSITE CONSTRUCTION/ENGINEERING Brains – MCE Gulf Contracting 19 www.mcegulf.com DEVELOPMENT MANAGEMENT Midrar 19 www.midrarksa.com EDUCATION Bayan School 20 www.bayaan.com EDUCON 21 www.educon.com.sa FASHION AND TEXTILES Lomar 21 www.lomarthobe.com FINANCIAL SERVICES Amwal Financial 22 www.amwal.com.sa HEALTHCARE/DENTAL SERVICES Dentalia Clinic 23 www.dentaliaclinics.com H.E.A.L. Inc 23 www.heal-me.us HOSPITALITY CONSULTING SERVICES hodema 24 www.hodema.net IT/E-COMMERCE/TECHNOLOGY PROVIDER ALMARWA.net 25 www.almarwa.net.sa alcantara group 25 www.alcantara-group.com LEGAL SERVICES Al Yaqoub Attorneys 26 www.alyaqoub.com LIFESTYLE SERVICES 3eesho 27 www.3eesho.com MARKETING Beyond Holding Group 27 www.beyond-hg.com MANAGEMENT/CONSULTING impaQta 28 www.impaQta.com Innovative Business Solutions 28 www.ibsolutions.com.sa PR/ADVERTISING TRACCS 29 www.traccs.net Phenomenal PR 30 www.prphenomenal.com Rumman 31 www.rummancompany.com 3points Advertising 31 www.3points-ad.com SECURITY SOLUTIONS PROVIDER Secutronic 32 www.secutronic.com.sa SPORTS Jeddah United Sports 33 www.jeddahunited.com TELECOMMUNICATIONS/TELECOM Bravo 33 www.bravo.net.sa INFRASTRUCTURE PROVIDER Delta United Contracting 34 www.delta-united.com TRAVEL Intercontinental Travel 35 www.itc-lcc.com WATER, ENERGY AND POWER ACWA Power International 35 www.acwapi.com WEIGHING SYSTEMS & SCRAP PROCESSING Al Sale Eastern Company 36 www.alsale.com

18 NUSACC • www.nusacc.org Sector: ConstructionConstruction//Engineering Brains Contracting Ltd. Co. ngineer Saleh bin Jahlan’s Brains Contracting Telecom Co., the Brains Contracting work ELtd. has more than proven the appropriate- force grew to more than 400, including civil ness of its name since it was founded in 2002. engineers, project managers, supervisors and Launched with 40,000 SR (less than $11,000), tradesmen. Thirty percent of the company’s Dammam-based Brains grossed more than 20 staff is Saudi, and 50 of these are women million SR ($5.32 million) in 2009 and is now working in general maintenance. In order to recognized as one of the premier maintenance meet new project demand, bin Jahlan plans companies in the Eastern Province. The company to increase his staff to more than 1,000 in the on the Saudi Fast Growth 100 List that was provides facility management and technical near future. announced in January 2010 at the Global services to universities, hospitals, government, Competitiveness Forum in Riyadh. private entities and the oil and gas sector in the Brains Chairman bin Jahlan now has two Eastern Province. companies under his belt and another two in “When I started the company it was very the pipeline. “My advice to new entrepreneurs difficult. The banks would not provide business is to work five to ten years with an established loans and there wasn’t much support for new company. I already had the idea for my new entrepreneurs at that time,” explains bin Jahlan, business before I quit my job at Saudi Aramco,” who worked for Saudi Aramco for 11 years as he notes. “Learn the ropes, keep your job until a maintenance engineer before starting his you have enough experience and keep your own company. Between 2002 and 2006, Brains eyes open for a good opportunity,” advises bin Contracting rode the start-up rollercoaster: Jahlan. Well aware of the difficult road that the maintenance staff grew to ten and shrunk new entrepreneurs may have to travel, he H.R.H. Prince Mohammed bin Fahd bin Abdulaziz Al back down to two when the market declined Saud presents MCE Gulf Chairman Saleh bin Jahlan mentors young business people through the in 2003, and he was unable to pay salaries. with the 2008 award for the most promising industrial Chamber of Commerce. “We have a respon- Regional political problems in the Eastern service company in the Eastern Province in the oil, gas & sibility to encourage and train the leaders of Province in 2005 brought a halt to projects petrochemical sector. the next generation of Saudi entrepreneurs,” and Brains Contracting ended up with a two Brains expanded its maintenance services he concludes. million SR debt ($532,000). in the oil & gas sector in the Eastern Province In 2007, a 25 million SR ($6.65 million) when it formed MCE Gulf, a joint venture Brains Contracting Ltd. Co. government contract resuscitated the company with Germany-based MCE in 2007. (Recently, MCE Gulf Contracting Ltd. and, within two years, bin Jahlan was able to MCE Gulf was nominated by the Eastern 31471 Dammam pay off his debt. Servicing clients such as Saudi Province Chamber of Commerce as the leading P.O.Box 3083 Aramco, Saudi Electricity Co., Saudi Arabian petrochemical service provider.) Brains ranked www.mcegulf.com Basic Industrial Company (SABIC) and Saudi number eight among the top ten companies

Sector: Development Management Midrar Development Company idrar Development Company may be “I think this was probably the fastest Mnew to the market, but it already has company ever built,” says Dr. Rehab Reda, more than 100 years of experi- Managing Director and CEO ence under its belt. Established of Midrar. “It took us two weeks in 2007, the Jeddah-based to make the decision and agree years before it finally happened. Years of development management on the business plan with our experience working in the real estate sector company prides itself on being three other partners.” The convinced Drs. Reda and Jared that there was a house of experts with a senior business plan, however, had been a market gap. “We became the first in the staff of executives assembled years in the making. Kingdom to offer development management from leading real estate, CEO Reda, along with his services as an independent company,“ explains architecture, engineering and co-founder and Midrar Vice- Dr. Jared. facility management firms. President, Dr. Mohammad Jared, Midrar was incubated by Jeddah-based Midrar provides a wide range had been colleagues at the King Siraj Capital and had investment partners of real estate management Mohammad Al-Jared, co-founder Abdul Aziz University in Jeddah, from day one. “Money was not the issue. We and Vice-President of Midrar and consulting services to the as well as at The Savola Group, wanted to have partners who could help us,” project owners and to the real estate develop- a leading food & holding company. They had notes Dr. Reda. ment market in Saudi Arabia. discussed launching their own business five continued on next page

U.S.-Arab Tradeline • Spring 2010 19 Midrar – from previous page The fledgling company had two contracts Midrar was recently ranked number four end-to-end services in both development from day one and grew its core staff from two on the Saudi Fast Growth 100 list of the management and facilities management to 25 within the first year. At the end of the Kingdom’s fastest growing start-up companies, services. first fiscal year, they were able to return all which gives them more exposure in the business “We really believe in this company, and it capital invested and by the second year, the community. “The niche we work in is has turned out much better than what we dividends had quadrupled from the prior year. challenging and difficult,” explains Dr. Rehab. expected,” emphasize both co-founders. “It Their growth rate was 280 percent by the end “We are trying to grow our company slowly makes us wish we had done this much earlier.” of the second year. and steadily, and we will be adding another “Finding clients was and continues to be department soon in transportation studies Midrar Development the challenging part of our business,” comments and traffic impact.” P.O. Box 126666 Dr. Jared. He noted that their 20-plus years Midrar currently has three projects under Future Building Center, Level 5 in the business was initially very helpful in construction and four under design, the 21352 Jeddah establishing footing with private customers smallest of which is approximately SR100 www.midrarksa.com and developers. million ($ 26,600,000 ). The company provides

Sector: Education Bayan Gardens School e strongly believe that Bayan Gardens were overseen by the Husain family. Since the “WSchool can create a new vision for school’s founding in 1999, one new grade level education in Saudi Arabia,” explains Ms. has been added each year. When the school Yasmeen Husain, director of the innovative first opened, it only had five classrooms with private school in Al Khobar that offers a five students enrolled in pre-school and kinder- comprehensive Arabic and English education garten, as well as six teachers. to its students. Eleven years later, Building Five is now Established in 1999, Bayan Gardens School under construction to accommodate the (BGS) is the brain child of director Husain growing number of students for the coming “We are trying to change some of the ideas and her entrepreneurial family. Educated in academic year. BGS is committed to remaining of this generation,” comments Ms. Amal both Saudi Arabia and the United States, a small school and currently has 600 students Dohkan, principal of the middle school and Husain recognized the need for a quality and 90 teachers and staff members for pre-school high school. “From kindergarten up, we focus bilingual school when she returned with her through grade 11. on character development on a daily basis, According to Ms. Abeer and the school considers this as important as Al-Mohawis, principal for any of the academic courses we teach. You K-elementary, “ BGS is a can tell from the programs we run that we unique school in Saudi are a school with a mission.” Arabia. Usually schools One of the new programs that BGS plans in the Kingdom don’t teach to implement is “TREP$,” an innovative both the English and program that introduces entrepreneurship to Arabic curriculum,” she children in grades four through eight by e x pl a i n s. BGS u se s teaching them everything they need to know American textbooks to to start their own businesses. teach math, science and Director Husain noted that it is the quality language arts in English, of education that drives people to do their and the school adheres to best and allows them to create and be innova-

Photo courtesy of Arab News an Arabic curriculum tive. “The government is doing a lot to improve Looking inside: Second grade Bayan Gardens School students get a briefing on the endoscopy procedure. based on the Saudi Arabian schools in the Kingdom, but education has Ministry of Education to remain a primary focus,” she emphasizes. own family to work and live in Al Khobar program. “We face challenges every day,” says “Whatever we put into these students is what in the early 1990s. “People were starving for director Husain, explaining that is difficult they will give back to the country in the years quality education for their children and the to recruit qualified female teachers from to come.” need for good English curriculum schools overseas and help them adjust to the culture in Saudi Arabia was and still is tremendous,” in Saudi Arabia. Paperwork for the Saudi Bayan Gardens School she says. Arabian Ministry of Education can also be P.O. Box 180 The concept, architectural design and cumbersome and slow, impeding the imple- Al Khobar 31952 construction of the school, as well as the careful mentation of new subjects and programs for www.bayaan.com selection of curriculum and international staff, the school.

20 NUSACC • www.nusacc.org Sector: Education EDUCON Educational Services DUCON was one of the first small to Al-Qurashi, who has been running “Emedium-sized educational services EDUCON full-time since 2008. EDUCON General Manager companies founded in Saudi Arabia, and when Since 2005, EDUCON has Al-Harith Al-Qurashi we went to the Ministry of Commerce to assisted more than 1,800 students from Saudi will enable them to become active and produc- register the company, there wasn’t even a Arabia, Iraq, Libya, the UAE, and Yemen, tive members of our society,” states Al-Qurashi. category for that sector,” explains EDUCON with its primary client base in the Kingdom. The EDUCON staff in Jeddah is one General Manager and co-founder Al-Harith Al-Qurashi points out that they meet less than hundred percent Saudi and young enough to Al-Qurashi. “We had to be very creative in 25 percent of their clients face-to-face because relate easily to their student clientele. They order to obtain an official license.” all applications are filed and processed online. offer their clients comprehensive services, Established in 2005, EDUCON is an EDUCON launched its website in 2006 and including a free international 24-hour educational consulting service that arranges it receivesmore than 25,000 hits a month. “Emergency Phone Line” service which can English language programs, identifies poten- “It was hard in the beginning because we be used by the students or colleges should tial schools, plans academic degree programs didn’t have an established reputation and only problems arise. “We believe that if a company in foreign universities, and arranges summer the small colleges and universities would sign provides the right service, the profit will come, camp placements for younger students ages up with us,” notes Al-Qurashi. Another challenge but the quality and type of service is always eight to sixteen. Headquartered in Jeddah, was working with students who were undecided the first priority,” Al-Qurashi emphasizes. EDUCON has one branch in London and in their field of study. “It became our mission EDUCON ranked fifth in the 2010 Saudi plans to expand its offices and staff in Saudi to find a solution,” he emphasizes. Fast Growth 100 list of fastest-growing start-up Arabia by the end of 2010. EDUCON enlisted the help of Profile, a companies. Al-Qurashi notes that his company By the time Al-Qurashi launched EDUCON, company that matches students to a university was very proud when it made the list, and he he was already a seasoned entrepreneur who based on their characteristics. EDUCON then has already benefited from the networking. established and ran three restaurants simul- hired an in-house career counselor and joined “It gave me a chance to meet other entrepre- taneously as a high school student. During a a number of international education networking neurs like myself and to discover that we share five-year career in the IT division at Saudi associations in order to expand their services many similar problems. It’s an amazing support Arabian Airlines and a subsequent two-year and cement their footing in the industry. system that will help me grow my company,” position at Unilever, he and his partner ran Currently, EDUCON works with colleges he comments. EDUCON as a part-time business, servicing and universities in the U.S., Canada, the U.K., more than 100 students during the first year. Australia, Spain and Italy. EDUCON Educational Services “We wanted to provide students in Saudi EDUCON has created a niche in the P.O. Box 12891 Arabia and the MENA region with the support educational consulting market. “Our vision is Jeddah 21483 services that we needed – but could not find to help students reach their educational goals www.educon.com.sa – when we were studying abroad,” comments by providing the right services. This, in turn,

Sector: Fashion and Textiles Lomar: thobe [re]defined oai Naseem, founder and CEO of Lomar, is an ankle-length garment with long sleeves start-ups – in car L the leading Saudi [re]defined thobe and worn by men in the Arabian Gulf region. repair, real estate and fashion brand, never thought he would become “Lomar was not planned, it just happened by jewelry, to name a a fashion designer. Similar to a robe, a thobe chance,” explained Naseem, whose 2009 few. Sooner or later, revenues as an “accidental” designer topped all of these start-ups SR18 million ($4.78 million). failed. Today, Naseem has four stores – two in In 1994, Naseem sold his remaining Jeddah, one in Riyadh and one in Al Khobar businesses and headed to Houston, Texas with – with 140 employees and a brand that is his wife and one-year-old son to study graphic recognized throughout Saudi Arabia. He has design at an art school. “If I had not gone to plans this year to sell a franchise locally or the U.S., I would still be a failure today. This regionally, and by 2012, he wants to sell is what made me who I am,” notes Naseem. another franchise overseas. When Naseem and his family returned to The road to success for Naseem was full Jeddah three years later, he accepted a position of pitfalls. When his plans to study engineering as art director at the Leo Burnett Advertising in college were thwarted, he worked in Agency before becoming one of three Loai Naseem, Lomar founder and CEO construction and established more than 15 continued on next page

U.S.-Arab Tradeline • Spring 2010 21 Lomar – from previous page co-founding partners of 3points Advertising 5,000 graduates of King Abdul Aziz Univer- fastest-growing start-up companies with a Agency in 1998. Tired of wearing the same sity in Jeddah have worn Lomar graduation ranking of 13th in 2008 and 21st in 2009. plain Saudi thobe to work each day, he began robes. Last year, he was commissioned by “I participated in the Saudi Fast Growth to design his own thobes with the help of his KAUST, the new graduate-level research 100 because it is aligned with my desire to wife and a tailor. university in Thuwal, to design 100 thobes become an international brand,” states Naseem. By 2004, while still a partner at 3points, for the inaugural ceremonies. ”Innovation is “I want to see my boutiques in New York, Naseem was designing and selling thobes out very important to me. The market is still Milan, and in all the fashion cities in the of his home for more than 100 customers. fresh in Saudi Arabia, and I want to change world. This is my vision.” Annual sales that year reached SR75,000 the way of thinking in fashion,” explains ($19,900). By the time he and his wife Mona Naseem, who produces a minimum of 24 Lomar Haddad co-founded Lomar the following new designs a year and recently introduced P.O. Box 122110 year, sales had climbed to SR1.5 million a line of children’s thobes. Jeddah ($399,000). For the past two years, Lomar, a Siraj 02 2754 555 Lomar is now a coveted brand throughout Capital portfolio company, was recognized www.lomarthobe.com the Kingdom. For the past three years, all by the Saudi Fast Growth 100 as one of the

Sector: Financial Services Amwal Financial Consultants mwal Financial CEO Fahad Al-Kassim “We excel at building long-term relation- out on their Aworked his way up the corporate ladder ships with our clients by providing creative, own. for more than 20 years before he decided it high-quality services,” Al-Kassim explains, “It’s best to was time to take that valuable experience and noting that he intentionally keeps his client do what you create his own company. “I believe in personal base small to best serve their interests. “It’s really love,” empowerment and I felt too constrained as important to stay close to your customers in c o u n s e l s an employee in a corporate environment,” order to understand their needs. Trust, a good A l-K a s s i m, Al-Kassim explains. reputation, and good who started his In 2001 he founded his connections are the most first business when he was in high school and first venture – Al-Kassim essential factors in building hasn’t stopped since. In addition to being the Consultants – a financial a business, especially in chairman and managing director of Amwal, consulting firm based in Saudi Arabia,” he empha- he is the co-founder and a board member of Riyadh that soon failed when sizes. two other companies – one in real estate and his expected client base failed Al-Kassim recalls that the other in Food & Beverage (F&B), both to materialize. “It took me when he started his business, of which are booming sectors in the Kingdom. a while to recover financially there was little if any help Amwal ranked among the Saudi Fast but, in the long run, it was available for new entrepre- Growth 100 winners as one of the fastest a good experience because neurs. “The difference growing start-up companies in 2009 and 2010. I learned from my mistakes between 2005 and 2010 is “I believe in what they are trying to accomplish and it kept my ego in place,” like a tsunami,” Al-Kassim with this list,” explains Al-Kassim, who Al-Kassim comments. suggests. “Change is now encouraged 20 other companies to apply for Amwal Financial Consul- coming from the top because the award. “This recognition is very beneficial tants was founded in 2005 King Abdullah is very to us because our clients are impressed by the and officially launched in Amwal Financial CEO Fahad Al-Kassim supportive and he has made fact that we are on the list,” he adds. 2006 when A l-Kassim the government much more Now in its fifth year, Amwal still has to obtained a license from the Capital Market transparent,” he explains. work hard to get their share of the market, Authority (CMA) to provide integrated According to Al-Kassim, the Kingdom especially in the aftermath of the past year’s Shariah-compliant financial advisory services. wants entrepreneurs rather than employees, economic turbulence. “It’s a knowledge-based Headquartered in Riyadh, Amwal has an and there are now many places to which one environment, and it takes a long time to build office in Dammam and works in affiliation may turn for help: lending banks, Young up a business. But we are moving in the right with FinCorp Company in the United Arab Businessmen Committees in all of the Chambers direction,” Al-Kassim concludes. Emirates, Qatar and Egypt. Services range of Commerce, the Abdul Lateef Jameel initia- from investment appraisal and feasibility tive, and the Riyadh-based Development studies, to mergers and acquisitions, corporate Center for Small and Medium Businesses. Amwal Financial Consultants finance, converting family-owned enterprises Aware of how difficult it is to start a business P.O. Box 27026 to joint stock companies, debt and finance from ground zero, Al-Kassim mentors young Riyadh 11417 restructuring and initial public offerings, entrepreneurs and encourages his own employees www.amwal.com.sa among others. to become partners in the business or branch 22 NUSACC • www.nusacc.org Sector: Healthcare/ Dental Services

a dental clinic with a lot of financial obliga- Dentalia Clinics tions,” she notes. ne visit to Dentalia Clinics in Jeddah Dentalia is the first fully digital clinic in Odispels any misperception that this is a Jeddah, and it was built with state-of-the-art traditional dental clinic. “Our vision when we European dental equipment. The clinic has built the clinic was to introduce the latest its own water plant and disinfects all water The personalized approach clearly works. concepts in dentistry and to create excellence using ultra-violet lighting. Intent on being as The clinic began with 100 patients in 2005 in everything we do – from the water we use, “green” as possible, the clinic recycles 100 and now has more than 10,000 patients to the dental equipment we purchase, or to the percent of its trash. registered. Al-Tayeb and her partners are proud staff we hire. We make sure everything is of In designing the clinic it was important of their ranking on the 2010 Saudi Fast Growth the highest quality,” explains Dr. Dina Al-Tayeb, for Al-Tayeb and her partners to maintain a 100 list of start-up companies. “We were one of the founding partners of Dentalia. balance between technical sophistication and competing against large companies, not just the comfortable environment they want to against other dental clinics, and we were very offer their patients. “We have a homey happy to have been selected. It impressed our atmosphere. Everyone – from our patients to patients,” she notes. our staff – is treated like family,” she comments. Periodontist and implantologist Al-Tayeb When Dentalia started, there were three is a reflection of the excellence she and her other clinics in Jeddah with comparable partners have achieved in Dentalia Clinics. standards. Today there are five. “It’s very A professor at the King Abdul Aziz University competitive because we are all catering to the College of Dentistry, she is also on the visiting same selective clientele,” explains Al-Tayeb, faculty at Tufts Dental School in Boston, who believes it is their team approach that Massachusetts, where she completed a Master’s makes them stand out. “Our personalized degree. In her “spare” time, she trains for touch, excellent service, and the care we take tri-athalon and Ironman competitions in both in choosing our doctors and staff is what the United States and Canada. “I love what defines the Dentalia team. We are all heavily I do and I hope I can always be a role model Dr. Dina Al-Tayeb with a young patient involved in the business,” she says, noting that for young people in our country,” emphasizes at Dentalia Clinics their goal is to raise the standards of dental Al-Tayeb. Al-Tayeb and four of her colleagues from care and oral health in the Kingdom. Dentalia King Abdul Aziz University founded Dentalia has 15 dentists and a staff of 30, of whom 12 Dentalia Clinics in 2005. All five partners were involved in the are female dental assistants. Services include P.O. Box 3732 design and construction of the clinic, which aesthetics, endodontics, pediodontics, ortho- Jeddah 21481 dontics, periodontics, dental implants and was built from scratch with their own funding. www.dentaliaclinics.com “It was a big risk but you don’t want to start oral surgery.

H.E.A.L. – Healthcare Environment Advisory and Logistics Inc. t is a great adventure the ground up for a long facility in Saudi Arabia, we can guide them “Ito be an entrepreneur,” time,” explains Terekli, from the initial brainstorming to construction, comments Tuba Terekli, who whose new company focuses implementation and final full-scale operation,“ co-founded H.E.A.L. – on three primary sectors – says Terekli. The company’s familiarity with Healthcare Environment healthcare, environment the local laws and Ministry of Health guide- Advisory and Logistics Inc. and hospitality. With more lines is of great benefit to clients, especially – in 2010 with Samer Abu than 30 years of collective those unfamiliar with working in the region, Ghazaleh. After a successful experience in the Middle she notes. career as a healthcare consul- East, the H.E.A.L. team H.E.A.L. has a wide network of interna- tant specialized in strategic specializes in helping clients tional experts familiar with the Green Guide planning and marketing, she establish local healthcare Council Guidelines who can turn a client decided the time was right and hospitality-related company Green or build it Green from the to strike out on her own. businesses that adhere to start. “We focus on providing sustainability “I have been interested international standards. solutions to the healthcare and hospitality in developing a sustainable, “If we have a client who industries,” comments Terekli. environmentally conscious wants to either build or According to the Green Guide Council healthcare community from Tuba Terekli, co-founder of H.E.A.L. expand a current healthcare continued on next page

U.S.-Arab Tradeline • Spring 2010 23 H.E.A.L. – from previous page in the strategic planning department, to Procter nies, she notes that when the first list was for Healthcare, a patient in a Green hospital & Gamble brand-management, to the Inter- published in 2009, nine percent of the has a 20 percent greater chance of improving national Medical Center and, last, to Sukoon companies on the list were owned by Saudi than a patient in a non-Green hospital due to International, the first healthcare-specialized women. This figure is comparable to the better air quality monitoring systems and developer in the Kingdom, where she continues “Inc. 500” list, published by Inc. magazine pollution reduction. By integrating Green to work as Chief Strategy and Communica- in the United States. principles in the planning and design stages, tions Officer. “Women comprise almost half of our H.E.A.L. can generate approximately 40 During her tenure at International Medical nation. Diversity brings the benefit of different percent savings and a higher performance rate Center (IMC), Terekli was recognized as the talents, different ways of seeing the world and for its clients. The company works with U.S., first Saudi woman to establish a healthcare- different approaches to tackling problems,” Canadian and Turkish architectural firms integrated marketing and communications Terekli notes. “I want to be a part of the that are familiar with Green value engineering (Marcom) department in Saudi Arabia, as positive change in this country,” she concludes. principles and LEED certification guidelines. well as the first woman to create a full-scale Terekli has assembled an international hospitality department. H.E.A.L. Healthcare Environment team of experts for her new company, but her Being first is not an uncommon position Advisory and Logistics own resume is equally impressive. Her career for Terekli who represents a new generation Jeddah path during the last 14 years has taken her of Saudi businesswomen. An active supporter www.heal-me.us from teaching, to working at Saudi Aramco of the Saudi Fast Growth 100 list of compa-

Sector: Hospitality Consulting Services hodema consulting services ebanese entrepreneurs Nagi Morkos and market in Saudi Arabia,” explains el Asmar. L Karim el Asmar decided they had just They entered into a partnership in 2008 with the right expertise and experience to tackle Jeddah-based Siraj Capital that accelerated a void in their industry – a lack of “business their business entry into the Kingdom. in the new Bin Sulaiman Business Center, mentoring” for fellow entrepreneurs in the “The hospitality industry has for the most and the feasibility and development of a hospitality sector, especially in the Food & part been very underdeveloped in Saudi Arabia. hospitality destination cluster within the old Beverage (F&B) sub-sector. “Big consulting There are tremendous opportunities with huge historic section of Jeddah. firms offered financial expertise, we focused potential in the leisure, religious tourism, and “What I particularly appreciate from on practical support. That’s what we specialize F&B areas,” says Dr. Ghassan Ahmed Al hodema,” concludes Al Sulaiman, “is that they in,” says el Asmar. Sulaiman, Chairman of Siraj take strong ownership of every project they Beirut-based hodema Capital. “Business travel to the undertake and practice a hands-on approach.” consulting services was Kingdom is also on the rise, “Consultancy is still a new concept in the co-founded in 2004 by restau- which, in turn is fueling a whole [MENA and GCC] region,” explains rant-developer Morkos and growing demand for quality hodema co-founder El Asmar, noting that hospitality expert el Asmar. hospitality and related services. their method of working is also new. “We It provides professional Together with hodema, we plan come in and define the concept, the targeted consulting and development to identify new opportunities market, the overall theme, and the framework services specifically for food in untapped sectors in order to for the project.” service and hotel project maximize development poten- Locality is another factor that distinguishes developers, retail, and real tial and investment returns.” their approach. “We believe we have to be in estate owners and operators. Noting that the F&B market close proximity to our clients in order to The first years were is still highly dependent on understand their needs and their environment,” challenging. hodema was self- foreign labor, Al Sulaiman adds he adds. Karim el Asmar, Managing Partner funded and struggled to survive of hodema consulting services that there is a need to “develop, hodema is a young company committed the 2005 political and train and recruit a professional to forming lasting professional relationships economic crisis in Lebanon just as it was and well-established F&B Saudi workforce. with all of its clients. Headquartered in Beirut, getting on its feet. Targeting the growing We are looking at the possibility of establishing it has offices in Jeddah, Riyadh, and Damascus hospitality sector in the Levant, hodema professional hospitality training academies and has been tripling its revenue annually exported its services to Jordan and Syria and and institutions, and we plan to leverage since 2007. consulted on large mixed-use projects in hodema’s extensive experience and track record Damascus and on the Dead Sea. in this field.” hodema consulting services In 2007, hodema co-founders bucked the Siraj Capital/Ghassandevco and hodema Future Business Center – 5th Floor Dubai-investment trend and instead turned to are currently collaborating on a number of Amanah Street, Jeddah 21352 Saudi Arabia. “Dubai was not our market – we ventures in Saudi Arabia, including the P.O. Box 126666 are a service business. Instead, we went into franchising of F&B brands in Jeddah, imple- www.hodema.net the more difficult and less glamorous but bigger mentation of a mixed F&B street-level cluster

24 NUSACC • www.nusacc.org Sector: IT/E-Commerce/ Technology Provider ALMARWA.net arwa Al Saleh, founder and General business that first year,” she recalls. MManager of ALMARWA.net, an Infor- Al Saleh’s client base outgrew her home mation Technology service and E-commerce office within a year. In 2007, she officially solutions company, epitomizes the new registered her company and rented office space generation of Saudi businesswomen – deter- in the newly-formed businesswomen’s section mined, well-educated and independent-minded. of the Eastern Province Chamber of Commerce. In 2008, Al Saleh’s company was recognized “I always dreamed about being a business- Finding the money to start her business was as the most promising IT services company woman,” explains Al Saleh, who started a the easy part: Al Saleh had saved more than in the Eastern Province and, two years later, small web design business out of her home in SR 90,000 ($24,000) for just that purpose. it ranked third on the Saudi Fast Growth “I didn’t want anyone to be able to stop me,” companies to watch list. “These awards put she explains. a spotlight on the company and increased our Then came the difficult part. “I had to learn customer base, as well as our customers’ everything from scratch – finances, human expectations,” explains Al Saleh. The next resources, how to write a business plan, and year will be critical, says Al Saleh, who plans how to look for and hire employees,” Al Saleh to grow her company by introducing new notes. “It was a lot of trial and error,” she admits. products, such as training courses and estab- In addition to providing office space, the Eastern lishing e-mail services for SMEs. Province Chamber of Commerce was able to Al Saleh enjoys the challenge of running advise Al Saleh about hiring employees and her own company. “It’s not just about making administrative start-up details. money,” she emphasizes. “It’s very fulfilling to Less than four years later, ALMARWA.net do a good job for a client.” As a businesswoman, is a well-established business with six female she also enjoys mentoring the young women employees and more than 50 loyal clients, she hires for her company. “I want to inspire including the Eastern Province Chamber of them and help them believe that they can be the next entrepreneurs,” concludes Al Saleh. Websites designed by ALMARWA.net Commerce, real estate and petrochemical companies, as well as numerous small and Al Khobar after graduating from college. Al medium-sized enterprises (SMEs). Website ALMARWA.net Saleh knew a lot about Information Technology design and redesign, custom programming, P.O. Box 77097 (IT) services, but she soon realized that she E-commerce websites, online advertising, Al-Khobar 31952 knew nothing about how to set-up and run a website hosting and domain registration are www.almarwa.net.sa business. “I read everything I could find on among the many services offered by the company. alcantara group ridging technology is what we do alcantara became the largest ERP implementer “Bbest,” explains alcantara Chairman in the Kingdom. and CEO Khalid Suleimani. “We bring While studying for his doctorate in Western technology to Saudi Arabia and engineering in Boulder, Colorado, Suleimani provide a platform for these companies to realized that he was as much a businessman work just as they would in the West. We as he was a scholar. “I discovered my passion “We went bankrupt more times than I can handle everything and eliminate the stress is in the business of delivering solutions, not count, but we stood our ground,” Suleimani factor,” adds Suleimani. just doing research,” he explains. In 1995, notes proudly. Established in 1997, alcantara group is Suleimani established his first company in “It was also tough to sell software licenses one of the leading systems integrator and Jeddah – Business Automations Systems at big prices, let alone try and sell services. solutions providers in Saudi Arabia. Over Engineering (BASE) – while commuting back It was assumed that all of these came for free. the last decade it has become the holding and forth between the U.S. and Saudi Arabia In 1995, ERP was a term that came from company for a diverse range of technology to complete his doctoral exams. Mars. Now everyone knows what it is,” providers: Kerfi Arabia for systems integra- “We started at a hard time,” recalls Sulei- confides Suleimani. “Selling technology in tion; IFS Arabia for Enterprise Resource mani, who took $8,000 he had saved from a developing country is always difficult – you Planning (ERP); Nexus Arabia for health his scholarship money to launch alcantara. have to create demand and spend a lot of information systems; and Medacsys for He explains that a prolonged freeze on Saudi your marketing budget on educating healthcare hardware and software turn-key government projects, and the lack of internet consumers,” he adds. packages. Nexus Arabia and Medacsys are in the Kingdom until approximately 1999, both wholly-owned companies. In 2003, made the start-up years very challenging. continued on next page

U.S.-Arab Tradeline • Spring 2010 25 Alcantara – from previous page

Despite those early challenges, alcantara post-9/11 difficulties. “My original passion survived. By 2003, it had a staff of 15, an was to work with U.S. companies. It’s easier in-house research and development depart- for us to deal with Americans, and I used to ment, and a growing book of business. In travel to the United States every three months 2005, alcantara and Kerfi AB, one of Sweden’s on business, but I had to shift gears after leading systems integrators and e-government 9/11” he admits. solutions providers, formed Kerfi Arabia, alcantara was recognized as one of the top which has since developed a significant client ten fastest-growing companies on the Saudi base across Saudi Arabia. Fast Growth 100 List in 2009. “There are In 2006, Nexus Arabia, a joint venture more than 160,000 commercial registrations established between alcantara and Nexus AG, in the Kingdom, and I never knew there were Germany’s leading provider of e-health other people like me until I met them at the solutions, landed one of the largest health Saudi Fast Growth summit in the U.S.,” information systems (HIS) deals in the history comments Suleimani. “It’s very important to of the Kingdom. “There are 16 hospitals and raise the awareness of this award because it two million patients using our systems now gives the small entrepreneur something they in the Ministry of Defense. It’s very flattering can look up to,” he concludes. for us to know they are all using something we did to make their lives easier,” comments alcantara group Suleimani. “It’s a small contribution, but it P.O.Box 50646 gives me great satisfaction,” he adds. Jeddah 21533 Suleimani explains that most of alcan- More than 16 hospitals in the Kingdom use Nexus www.alcantara-group.com tara’s applications are European because of Arabia health information systems (HIS)

Sector: Legal Services Al Yaqoub Attorneys & Legal Advisors ontasir Al Mohammed is Managing clear to me that a Saudi with legal expertise MPartner of Al Yaqoub Attorneys and could help bridge the gap between Shariah Legal Advisors (AYALA), a Riyadh-based law and Western law,” explains Al Mohammed. firm that works in association with Lovells, His intuition was right. Hired in 1992 an international firm with 28 offices scattered by Arthur Andersen LLP, Al Mohammed around the globe. spent 13 years with the company through “I was one of only its merger with Ernst & Young. He was a few lucky students trained in Arthur Andersen’s regional who were hired to and London offices and became the practice law right head of legal services until he left to after graduating from establish his own law firm in Riyadh firms with a presence in two major cities in t he u niversit y,” in 2005. Saudi Arabia. International law firms require comments attorney In less than five years, AYALA has a locally qualified Saudi national to act as a A l Moha m med. become one of the leading law firms sponsor in order to practice in the Kingdom. When he attended in Saudi Arabia. Staffed with 11 “This new office will add depth to our King Saud University lawyers, three of whom are Saudis, presence in a key economic zone of the in Riyadh in the early the firm specializes in litigation and Kingdom,” notes Al Mohammed, “and it is a 1990s, legal studies real estate and handles a full range of part of our continuing commitment to provide were incorporated services, including investment, corpo- our clients with high quality legal services.” within the College Montasir Al Mohammed, Managing rate/commercial, finance, construction of Business a nd Partner of Al-Yaqoub Attorneys and intellectual property. AYALA’s Administration, clients include the Kingdom Holding explains Al Mohammed. It wasn’t until 2008 Company, H.R.H. Prince AlWaleed Bin Al Yaqoub Attorneys that the College of Law was established as a Talal Bin Abdulaziz Al-Saud, Emaar Group, and Legal Advisors separate entity, he notes. Saudi Telecommunication Company, Four in association with Lovells Al Mohammed studied law at a time when Seasons Hotels, and numerous others. P.O. Box 57288 it was an uncommon profession for young AYALA, in association with Lovells, has Riyadh Saudi university students. “I could see the way opened an office in Jeddah, which establishes www.alyaqoub.com the Kingdom was developing and it seemed Lovells as one of the few international law

26 NUSACC • www.nusacc.org Sector: Lifestyle Services 3eesho – Nurturing My Life e are a social network with a goal similar user groups. Plans to improve habits “Wand a vision to improve lifestyle and can also be logged in and monitored for levels develop better skills,” explains 3eesho CEO of success. Rafah Al Khatib. “It’s a way of communicating “I wanted to create a social network similar each day,” comments Al Khatib. She hired a to create a better life,” she adds. to Facebook, but not as time-consuming… technical manager, a web designer, and a 3eesho was chosen where instead of programmer to help launch her business. as one of the semi- playing games, people Prior to creating 3eesho, Al Khatib was finalist business teams c a n h ave a d ie t the general manager for one of the first compa- in the 2008-2009 challenge or plan nies in Riyadh that developed portals, Massachusetts Insti- their finances and e-solutions and built websites. When she tute of Technology compete with others decided to start her own business, she focused (MIT) Arab Business about achieving on two topics of growing interest to her – Plan Competition. cer ta in lifest yle health and nutrition. More than 1,200 goa ls,“ notes A l “Obesity is becoming a global problem,” teams registered for Khatib. notes Al Khatib, “and there is an increasing the competition, She developed two level of obesity in the Middle East – 25 percent which selected nine mo du le s – “My of the children, as well as 75 percent of women finalists and 16 semi- health” and “My over the age of 30, are obese in Egypt. Kuwait finalists. wallet” – as well as a and Saudi Arabia rank very high among the CEO Al Khatib food database with Arabian Gulf countries in terms of obesity,” came up with the idea over 3,000 meal plan she adds. for 3eesho in 2008 suggestions. Data “3eesho was created to help individuals in and spent months entered for daily the Arab world improve their lifestyles by 3eesho CEO Rafah Al Khatib and icons for (l-r) “My using the technology that is a daily part of mulling over the Wallet,” “My Health,” and “My Life” eating and expendi- concept before she t u r e h a b i t s i s their lives. Any change in a society starts with decided it should be a web-based portal appli- analyzed, translated into graphs and tables, the individual,” Al Khatib emphasizes. cation. 3eesho works as a dashboard to monitor, and recorded under the “My Life” section. measure, and work on improving habits in The portal is 100 percent private and does order to change one’s lifestyle. Users log in not share or sell information. 3eesho their habits on a daily basis – allowing them The Beta-phase for 3eesho was launched Dubai – Riyadh – Amman to check the total impact of those habits, as in January 2010. “As soon as we placed an www.3eesho.com well as to compare lifestyles and habits with advertisement on Facebook, we got ten users

Sector: Marketing Beyond Holding Group eyond Holding Group was established in – market research; WAP – IT solutions; HR BJune 2005 by Dr. Turky Abdulmajeed. & Beyond – human resources (HR) outsourcing; “Saudi Arabia’s economy was booming and and Fatory – catering supplies. changes initiated by King Abdullah made “It wasn’t easy to get clients in the begin- local and foreign investment easier,” explains ning, and it’s still challenging,” notes Abdulma- small office in a very inexpensive rental district Abdulmajeed. “I decided it was time to leave jeed. “In Saudi Arabia, people are not used to in Jeddah,“ recalls Abdulmajeed. “In less than the corporate world and take all the experience hiring consultants unless they come from six months, I had moved to one of the best I had acquired during my 12 years with inter- international corporations. Hiring a Saudi as locations in the city,” he adds. national companies and go out on my own,” a consultant is more or less a new concept,” During the past three years Beyond Holding he says. he emphasizes. Group has enjoyed a 150 percent growth rate Located in Jeddah, Beyond Holding Group Nonetheless, Abdulmajeed’s extensive and has watched its client base grow throughout provides integrated business management background in corporate marketing with the Arabian Gulf region. “As a consultant, I services and solutions to the Arabian Gulf Procter & Gamble, Frito Lay and PepsiCo analyze a client’s needs and then bring in market. The company manages a number of International impressed clients and gave him whatever services are needed – IT, marketing, enterprises: C&B – marketing consultancy; a competitive advantage. He secured three research, and so on – in order to either fix the Extend Arabia – events management; Marketing significant contracts – one with Nestle – during problem or upgrade the business,” explains & Beyond – direct communication; SPARK his first year of business. “I started off in a continued on next page

U.S.-Arab Tradeline • Spring 2010 27 Beyond Holding Group – from previous page Abdulmajeed. At any given time, his company “Being an entrepreneur is very challenging, will have more than 100 people employed on and that’s what motivates me,” says Abdulma- a project-to-project basis. jeed. “I know what I want to do and my Two of the Beyond Holding Group compa- experience has taught me how to do it. The nies – Marketing & Beyond and HR & Beyond economy is booming in Saudi Arabia, and it’s – were ranked on the Saudi Fast Growth 100 a great time to be an entrepreneur.” Companies to watch list in 2010. “This list is new to the Kingdom and it’s a great concept,” Beyond Holding Group suggests Abdulmajeed. He notes that the P.O. Box 122585 prestige of the award, as well as networking Jeddah 21243 opportunities among the Saudi Fast Growth Beyond Holding Group CEO Dr. Turky Abdulmajeed www.beyond-hg.com companies, have been beneficial to his business.

Sector: Management/ Consulting impaQta Management Advisory Services ot everyone can be an entrepreneur,” being an entrepreneur,” explains Said. “It gives “Nexplains Aiman Said. “It requires a me the right to decide my own destiny.” lot of risk-taking.” In 2004, Said decided to Prior to starting his own business in 2004, take a risk and established impaQta, a manage- Said spent more than 17 years working in the ment advisory services company. For the first corporate world with IBM, Hewlett-Packard six months, he ran the business without having and Arthur Andersen Consulting (now Accen- either an office space or employees. ture). “Consulting opened up a whole new By the end of 2004, international and Said and his partner global world for me, hired their first full-time and I learned a great employee. One year deal from my clients,” impaQta CEO Aiman Said (left) later, the number of notes Said. employees had grown H e b u i l t t h e to 15 and at the end of f o u n d a t i o n f o r and this will result in a greater exchange of the fourth year, impaQta had 40 employees. impaQta on much of that experience, creating expertise,” comments Said. The risk paid off. Between 2004 and 2008, a business that advises companies on how to Entrepreneurship is alive and well in the the Riyadh-based company grew more than build a viable, sustainable and profitable Kingdom, according to Said. “Saudi Arabia 139 percent, and it has average annual revenues enterprise. From designing a business plan, used to be all about the SABICs and Aramcos; of between SR 1 million and 5 million to building and fine-tuning the internal now it supports SMEs,” he says, noting that ($266,600 - $1.3 million). In 2010, impaQta infrastructure once the company is up and King Saud University in Riyadh requires all ranked among the fastest-growing companies running, impaQta’s objective is to become students to take an introductory course on in the Kingdom on the Saudi Fast Growth the leading strategic and management advisory entrepreneurship. “They want to plant the 100 list. company in the Middle East. seed of entrepreneurship in everyone,” empha- CEO Said comments that the past five Said explains that he and his wife, 3eesho sizes Said. years have often been like a roller coaster ride. CEO Rafah Al Khatib, represent new faces In 2009, the global economic crisis hit close among the growing entrepreneurial sector in impaQta Management to home when many of impaQta’s clients either Saudi Arabia. “We are non-Saudis, and the Advisory Services postponed or cancelled scheduled projects. new laws allow us to establish a company and P.O. Box 300653 The company tightened its belt, scaled back own it 100 percent. There is a new set of Riyadh 11372 to ten employees, and rode out the storm. entrepreneurs operating and thriving in the www.impaQta.com “Despite the hard times, I have no regrets same environment as their Saudi counterparts,

IBS: Innovative Business Solutions hen Osama Bakur Natto decided he corporate world, I would not have excelled. people come to me for advice about starting Wwas going to start his own business, he It was do or die,” Natto recalls. a business, and the first thing I ask them is made certain he could not turn back. “If I “It’s very important to have the right mindset whether they are ready to make sacrifices.” knew I had a safety net to go back to the if you plan to succeed,” says Natto. “Every year continued on next page

28 NUSACC • www.nusacc.org IBS – from previous page Natto clearly was. Prior to founding Innova- of their clients are repeat customers or refer- tive Business Solutions (IBS), he held an rals, and 20 percent are solicited. executive position at Procter & Gamble in IBS ranked among the Saudi Fast Growth Jeddah. “There were a lot of rules, and I felt leading start-ups two years in a row. The very restricted in my ability to grow profes- company has grown more than 123 percent sionally and personally,” explains Natto. during the past five years and its average One d ay he revenues are in excess announced to his of SR 5 - 10 million work colleagues ($1.3 – $2.66 million) IBS, Natto tested the waters with his short- that he was going per year. lived first start-up – Omnitech Al-Saudia to open his own Ac c ord i ng to – in 2004. business within a Natto, the IBS team Natto is very supportive of other start-up year. Natto sold his is intent on becoming companies. “We try and make sure that house, moved his “the most appreci- anything we need – couriers, lawyers, printers, wife and children ated consultants in and so on – is done by small businesses rather into an apartment, Saudi Arabia.” IBS than large corporations,” comments Natto. and told them they provides strategy and “It’s very important for us to support each had to tighten their m a n a g e m e n t other as entrepreneurs.” belts while he was consultancy, infor- In addition, Natto lectures several times a year at the Jeddah Chamber of Commerce, b u i l d i n g t h e Osama Bakur Natto, founder and CEO of Innovative mation ser vices, business. Business Solutions start-up expertise, as well as at Effat University, on how to build His determination paid off. Jeddah-based project management and analysis support a business and other related topics. “I am not IBS started as a one-man company in 2005 for the information technology (IT) sector interested in just making a profit,” says Natto. and it now has 15-20 full-time employees, as in Saudi Arabia and the Arabian Gulf. “It’s also about making a difference.” well as four part-time consultants. IBS has a “Running a small business is a real base of approximately 40 loyal clients, including challenge,” says Natto, who is no stranger to IBS Innovative Business Solutions the Elixir Group, Blueprint Communications, hard work. “My dad is an entrepreneur who P.O. Box 54000 National Commerce Bank, Emaar Economic built his business from scratch, and I started Jeddah 21593 City, Hewlett-Packard International Trade working for him when I was eight years old. www.ibsolutions.com.sa B.V., and Procter & Gamble. Eighty percent We grew up working,” he explains. Prior to

Sector: PRR//AdvertisingAdvertising Trans-Arabian Creative Communications (TRACCS) rans-Arabian Creative Communications of the market and extends from Northwest T(TRACCS) is one of the largest public Africa to the Arabian Gulf. relations networks in the Middle East and Sarah A. Al Ayed, Managing Partner - Saudi North Africa. Established in 1997 under the Arabia and Network Vice-President, is recog- most successful businesswomen, Al Ayed is name Saudi Creative Communications also a founding member of the first Saudi Services (SACCS) by partners Mohamed Arabian Businesswomen’s Committee, which A. Al Ayed, Sarah A. Al Ayed and Haroon is incorporated within the Jeddah Chamber Sugich, SACCS steadily expanded its of Commerce and Industry. outreach. In 2001, the Jeddah-based company “I knew nothing about public relations when launched the TRACCS network with the my brother and I first talked about working opening of branch offices in Dubai, Cairo together in 1997,” Al Ayed explains, noting and Manama. that she crammed for months to learn the basics Today, the company’s 250 employees before they officially opened their business. handle approximately 150 client relation- TRACCS moved from shared office space ships in 13 markets. Fifty percent of the to its own headquarters within three months TRACCS staff is female, and five of its after opening, and it quickly assumed market managing directors are women. What began TRACCS Managing Partner Sarah A. Al Ayed leadership as one of the first local public relations as a desire to establish a local public relations nized as the leading female public relations agencies in Saudi Arabia. In 1999 and 2000, industry in Saudi Arabia evolved into a leading practitioner in the Middle East and North TRACCS won the Coca-Cola Middle East regional enterprise that controls ten percent Africa (MENA) region. One of Saudi Arabia’s continued on next page

U.S.-Arab Tradeline • Spring 2010 29 TRACCS – from previous page Agency of the Year Runner-Up Award. munications, healthcare and nutrition, NGOs, and sponsored the first CSR conference in According to Al Ayed, by the end of 2000 banking & finance, public affairs and govern- Kuwait. Al Ayed says that it is part of the there was a growing need for public relations ment relations, travel and leisure, transporta- company’s mission to use their collective skills in the Arabian Gulf and other markets in tion, digital PR and retail. for the common good. That same year, the Middle East. “Our clients were asking “In the United States, public relations TRACCS launched a city-wide anti-littering us to expand in the region, which is why we started over 100 years ago,” states Al Ayed. campaign in Jeddah, and the company regularly opened new offices in Dubai, Cairo and “But in this region, it’s only 12-13 years old. provides communication support to NGOs Manama,” she notes. Since then, TRACCS We want to turn this into an industry by working in the region. has opened additional offices in Jordan, conducting workshops and training people.“ In 2010, TRACCS placed 44th on the Oman, Kuwait, Qatar, Iran, Tunisia, Morocco, In 2005, TRACCS founded the Arab Saudi Fast Growth 100 List, which ranks the Lebanon and Syria. Conferences Company (ARC) in order to Kingdom’s fastest growing companies. “Entre- “All of our regional offices are hands-on, expand its communication platform. ARC preneurs are the hidden story no one knows which enables us to create the right PR package. hosts a yearly public relations conference in about,” says Al Ayed. “Small and medium- It’s important to know the local markets and Jeddah that is open to all PR practitioners. sized enterprises (SMEs) may be small in size, industries first-hand,” adds Al Ayed. TRACCS also established a Strategic Commu- but not in impact. They lead to the growth TRACCS conducts an internal and external nications Outreach Program at Prince Sultan of a country.” communications audit for each new client and University in Riyadh. TRACCS handles everything from media placement to Al Ayed emphasizes that the growth of P.O. Box 23851 crisis management, events, marketing and entrepreneurship in the region has led to a Jeddah 21436 corporate social responsibility. It has nine main greater recognition of corporate social respon- practice groups that specialize in telecom- sibility (CSR). In 2005, TRACCS organized www.traccs.net

Phenomenal PR & Events henomenal PR & Events is a small public notes. “As a Saudi, I know what my client Prelations firm with great ambitions. Estab- wants because we share the same culture.” lished in 2006 by entrepreneur Shadi Zahid, In 2006, Zahid was ready to start his own the Jeddah-based business has a reputation public relations company. With less than SR for thinking outside the box. 5,000 ($1,333) to invest, he borrowed office Zahid had a long and varied employment space, furniture and equipment from friends history before he decided and launched Phenomenal in other cities like Hail, Abha and Jizan to form his own company. PR & Events. During the throughout Saudi Arabia,“ explains Zahid, At the age of 14, he became first month, he landed a who coordinates these tours with the local the youngest reporter for two-year contract with chambers of commerce. Arab News and Asharq Al Unilever and later signed Zahid has plans to develop Phenomenal Awsat, two leading Saudi agreements with McDon- PR & Events into a large media organization. Arabian newspapers. After ald’s, Porsche, and a number His publishing company, which has a staff of 12 years as a globe-trotting of local Jeddah companies. four, was established ten years ago and prints correspondent, Zahid In less than six months, Arabic language books, including his own changed gears in 1998 and Zahid paid back all the volumes of poetry. Currently Zahid is final- began to work in public start-up loans and Phenom- izing plans to set-up a film studio in Jeddah relations. enal PR was in the black. – Phenomenal Production House. “I was looking toward Phenomenal’s current According to Zahid, success is based on the future and public staff of 13 handles a growing one simple philosophy: “Believe in yourself relations was a relatively client list, which includes and work hard.” His young company was new concept in Saudi Arabia Signal, Sunsilk, Unilever, honored twice by the Saudi Fast Growth 100: at that time,” explains Brioni, Puma, and United in 2009, it ranked number one on the Start-up Zahid. He spent six years Colours of Benetton, among Company list, and in 2010, Zahid’s sister and learning the trade with two Shadi Zahid, Managing Director of others. In addition to public account manager Heba Zahid accepted the American companies – Hill Phenominal PR & Events r e l a t i o n s a n d e v e nt award when Phenomenal was ranked one of and Knowlton, a New York planning, Phenomenal PR the leading new companies to watch. public relations firm, and advertising agency organizes business tours to introduce young Leo Burnett, which is based in Chicago. Saudi entrepreneurs to potential business Phenomenal PR “My years at Hill and Knowlton taught partners and new markets in the Kingdom. P.O. Box 122578 me that the big multinational firms may know “Everyone is fighting over business in Jeddah 21332 all the techniques but, as outsiders, they can’t Jeddah, Riyadh, and Al Khobar when there www.prphenomenal.com really understand the local community,” he are new opportunities emerging all the time

30 NUSACC • www.nusacc.org Sector: PRR//AdvertisingAdvertising Rumman Company In October 2007, three Saudi women venture like this one, especially since none of packed up their determination and vision and us had a background in marketing.” left their jobs at a publishing house in Jeddah Undaunted by this lack of experience, they to launch their own company. Less than three found an enthusiastic investor, moved into a Youth Hub, are intended to give Saudi youth years later, Rumman Company, an innovative small office and launched what are now their a chance to expose and develop their talents. Media Publishing House, has 21 employees two main ventures: Fainak?, one of the first Due to Rumman’s large on-and-offline and annual revenues between one and five and most active on-and-offline youth media database of young subscribers, it has become million Saudi Riyals ($266,000 - $1.3 million). sites in Saudi Arabia, and Destination Jeddah a primary resource for companies eager to What began in – City Insight on market their products to youthful audiences. the living room of the Go, a monthly “Fainak Buzz has become one of our hot sellers Ru m ma n CEO English-language because when a company comes to us with Enas Hashani’s guide distributed to an event, we can quickly deliver the right house is now a more than 70,000 youth audience,” explains Mahdaly, General thriving enterprise readers in Jeddah. Manager of Fainak. Mahdaly was named one that owns, operates, “In the past few of the top 30 student entrepreneurs in the a n d m a n a g e s years, Jeddah has world by the U.S.-based Entrepreneurs’ socially responsible opened tremen- Organization, and she attended the Presiden- and youth-oriented dously to business tial Summit on Entrepreneurship held in ventures in media investment and Washington DC in late April. Rumman’s co-founders (l-r) Enas Hashani, Maria Mahdaly, tourism, which is publishing and and Bayan Esam Abuzinadah Rumman Company placed first out of 31 production. The why we decided to companies on the Saudi Fast Growth 100 company also provides corporate and social create this guide,” explains Hashani. COO Start-Up list and received an award during a event management and will soon launch the Abuzinadah adds, “We wanted to educate gala dinner at the 2010 Global Competitiveness Grow Program, a training, development, and people, including locals, about what Jeddah Forum held in Riyadh. ”When I was up on funding program for social entrepreneurs. has to offer. Most people who live here don’t that stage accepting the award, all the hardships “We had a clear vision for the company explore the city and we want to encourage and difficult times we went though became from the start,” says Hashani who co-founded local tourism.” worthwhile. At that moment I knew we were the company with 21-year old Fainak General Rumman’s trademark products have grown doing the right thing,” concludes Hashani. Manager Maria Mahdaly and 25-year old to include Fainak Buzz, Fainak Newzine and Chief Operating Officer Bayan Esam Abuzi- Fainak Events, each of which illustrates the Rumman Company nadah. A serial entrepreneur, Hashani has a company’s ability to successfully target and P.O. Box 6707 retail clothing store as well as a catering showcase a largely under-represented audience Jeddah 21452 business, but she admits that “running a retail – Saudi youth. All products and services offered www.rummancompany.com business is very different from establishing a by Fainak, such as the newly launched Fainak

3points Advertising Agency Riyadh and Dubai. According to Qutub, the hard part in 1998 was not getting their first hen Marwan Qutub and Eissa Bougary they established 3points. “It was a life-changing clients, but finding the right staff. “An adver- Wco-founded 3points Advertising Agency experience,” recalls Qutub, who explains that tising agency is all about people,” he suggests. in 1998, they became leaders of the burgeoning their jobs taught them all the tools of the trade “It was not an easy job to develop the right local advertising market. “We saw an oppor- and also made them aware that it was the corporate culture and to find the best people tunity at the time right time to start who could work as a part of our team.” because the market their own business. 3points’ first print campaign for a local in Saudi Arabia was “Our deep under- consulting firm became the talk of Jeddah and very underdeveloped sta nd ing of a nd led to a host of new clients. By 2000, 3points and was dominated insights into our own had attracted a number of key corporate clients, primarily by non-Saudis,” explains Qutub. culture would produce a better product for such as Rabea Tea and Al Sawani, and the “This is not the case when you look at the rest our clients,” he emphasizes. company was off and running. Today, its clients of the world. The creative directors and the “We became one of the first agencies that include Kingdom Holding, Saudi Telecom, marketing people are generally locals who is Saudi-owned and Saudi-run, making us Barbican, Savola and United Sugar Company, understand the culture of their clientele,” he trend-setters,” comments Qutub, who is CEO among others. 3points is one of the major points out. of 3points. Eissa Bougary is the Chief Creative advertisers for the Esmerelda Residential area Qutub and Bougary were both three to Officer (CCO) of the Jeddah-based company, in the King Abdullah Economic City (KAEC). four-year veterans of Procter & Gamble before which now has 60 employees and offices in continued on next page

U.S.-Arab Tradeline • Spring 2010 31 3points – from previous page “Saudi Arabia is still an emerging nation,” In addition to running 3points, Qutub explains Qutub. “All of these developing and Bougary established a sister agency in sectors – such as aviation, telecommunications 2006 called “Gluetube,” which specializes in and the new economic cities – offer huge digital marketing and web designs. That same opportunities for advertising. It’s exciting to year, they founded “Under the Carpet,” a film work with clients who have a major impact production company located in Dubai Media on the Kingdom’s economy.” City. “As long as the market in Saudi Arabia In 2009, 3points became the first Saudi continues to expand, our potential is unlim- Arabian advertising agency to win an award ited,” says Qutub. at the Cannes Lions International Advertising “We have changed the world of advertising Festival in Cannes, France. The company was in Saudi Arabia. 3points has set a standard honored for two of its public awareness Samples of 3points print media advertisements for other agencies, and I believe we are a good campaigns – “Aqim Salatak” (Perform your example for many of our colleagues who want Prayers) and “Because we love you” – the and marked a turning point in Saudi Arabia’s to become entrepreneurs,” he concludes. Abdul Latif Jameel Group’s corporate social advertising industry, according to Qutub. “It responsibility program. has been a part of our vision from day one to 3points “We were the first advertising agency in give back to our community through PSAs,” P.O. Box 122194 the region to produce public service announce- he explains. “Marketing and media are very Jeddah 21332 ments (PSAs),” asserts Qutub. The “Perform influential mediums, and we have to be ethical www.3points-ad.com your Prayer Campaign” was launched in 2001 and responsible with the messages we send.”

Sector: Security Solutions Provider

Secutronic company has a 95 percent retention rate among its 200 employees, 35 percent of ecutronic is not just a business, it’s a way whom are Saudis. The rest of the staff is Sof rethinking business. “When we founded multi-national. One of Secutronic’s major projects was Secutronic, we changed the way a company Co-founded in 2003 by ElSamannoudi providing a comprehensive security package is supposed to be run,” explains CEO Jawad and Anwar Ali, Secutronic is a leading security to the International Medical Center (IMC) Anwar Ali. solutions provider and in Jeddah that included high-tech surveillance “Usually, when a business integrator. Headquartered cameras, personnel identification mechanisms, is launched, there are systems in Jeddah with offices in and workflow management processes, such and procedures in place. We Riyadh and Dammam, as Time & Attendance and access control. believe that a company is Secutronic provides innova- Other clients include Arab National Bank, all about its people, who are tive and customized high- National Commercial Bank (NCB), DHL, the epicenter of any organi- tech security solutions Fitaihi Group, Ikea, Savola and many others. zation,” he notes. “This is – such as virtual control In 2009, Secutronic was nominated the why we have a flat manage- rooms, security manage- number one Saudi Fast Growth 100 winner. ment approach. There is no Secutronic CEO Jawad Anwar Ali ment, CCTV Surveillance, “It’s an awesome program that really adds boss, just 200 entrepreneurs access control, and intrusion value to the entrepreneurial community in working together. This creates an energy that detection. Their corporate and governmental Saudi Arabia,” comments Anwar Ali. “I think benefits the entire company, as well as our clients span the medical, financial, petro- the ecosystem of the world revolves around clients and shareholders.” chemical, commercial and hospitality sectors. these small to medium-sized enterprises (SMEs) In today’s competitive business environ- According to CEO Anwar Ali, Secutronic that help economies flourish.” ment, attracting and retaining talent is critical is the only company in Saudi Arabia that Chairman Elsamannoudi adds, “Being a to the success of a company, explains Anwar provides total turn-key security solutions, Saudi Fast Growth 100 winner has inspired Ali. “If you find the right people with the caters to all industries, and is completely our team. Our staff sees that their work has right talent, put them in the right job and vendor-neutral. “We do not go out and promote paid off, our customers are more confident emphasize core ethical values, they will help any specific product,” he says. that they are putting their security needs in your business flourish,” he comments. Secutronic carefully studies a client’s the right hands, and our stockholders are Chairman Ihab Elsamannoudi and CEO individual security requirements, determines proud to be number one.” Anwar Ali both equate employee satisfaction which products will best satisfy the client’s with customer retention and a successful needs, and then mixes and matches products Secutronic enterprise. Given the company’s growth rate from a number of vendors. “Our vested interest Beautat Business Park, Suite 26 of more than 2,500 percent over a five-year is in achieving the best value for our customer,” P.O. Box 54544 period, as well as its average annual revenue notes Anwar Ali, who adds that Secutronic’s Jeddah 21524 of SR 10 to 50 million ($2.6 million - $13.3 goal is to become a “transparent embedded www.secutronic.com.sa million), their belief is well-founded. The success story within our client’s organization.”

32 NUSACC • www.nusacc.org Sector: Sports Jeddah United Sports Company ina Almaeena is shaping the future of a business plan and founded Jeddah United Lwomen’s sports in Saudi Arabia. As the Sports Company (JUSC) in 2006. Director of Jeddah United and the captain of JUSC is the first local training and sports its Women’s Basketball Division, Almaeena events management company for women and has pioneered a sports program for girls ages young men in Jeddah. The company runs the Amman and at the American University in four through 17, as well as for adult women. women’s basketball divisions, as well as the Sharjah in the United Arab Emirates. Her goal is to create Olympic-quality female young men’s basketball and soccer teams. Seventeen-year-old Wejdan Al-Amondi players who can compete in national and Corporate social responsibility programs that has been with Jeddah United for four years. international events. include coaching “This is not something you can usually find “ H . M . K i n g disabled young women in Saudi Arabia, and I’m really grateful I joined Abdullah has empha- in basketball, as well the team. I hope what we are doing will inspire sized the importance as offering sports other girls,” Al-Amondi comments. of sports,” explains programs for under- Jeddah United Sports Company recently Almaeena, who wants privileged youth, are partnered with Haji Husein Alireza & Co. to promote sports and an inherent part of the Ltd., the third largest distributor of automo- healthy lifestyles for company’s philosophy. biles in the Kingdom, to launch Khobar United women and youth Since 2006, JUSC – the first women’s sports organization in the within the context of h a s o r g a n i z e d Eastern Province of Saudi Arabia. Saudi Arabia’s culture numerous basketball Haji Husein Alireza & Co. Vice-President and traditions. She tournaments each of and Partner Hasan A. Abulhasan notes that Lina Almaeena and members of one of Jeddah began with a small United’s women’s basketball teams which are centered based on the “pioneering success” of Jeddah group of six girls and around themes such as United, they were inspired to start a similar a private basketball coach in 2003. By this anti-smoking, drinking milk, father and son program for women in Al Khobar. “People year, the number of participants has increased relationships, and the like. JUSC spearheaded follow success,” comments Abulhasan. “I to more than 300. Saudi Arabia’s first Women’s Street Basketball applaud Lina Almaeena, the force behind “From day one there was a great deal of Tournament in 2007, in which 12 teams Jeddah United and her team, for having the interest in the women’s basketball teams,” participated; the following year, the company intelligence and the courage to start this comments Almaeena, who notes that sports conducted two basketball clinics with venture.” are not available to girls in Saudi Arabia’s ex-Women’s National Basketball Association “We really believe in what we are doing,” public schools. “We never have a problem (WNBA) players Lynette Woodward and explains Almaeena. “Our vision was to use getting players; in fact, we always have a Ruthie Bolton. Twenty-five coaches and 45 sports to make an impact on our society, and waiting list. What’s difficult is finding quali- players from numerous organizations attended it seems to be working.” fied coaches because there isn’t a sports the clinics. federation in Saudi Arabia that certifies coaches Jeddah United (JU) is the first Saudi Jeddah United Sports Company and referees,” she adds. women’s basketball league in the history of P.O. Box 62 In response to this growing interest and a the Kingdom, and it is also the first in the Jeddah 21411 desire to promote sports in general, Almaeena Middle East to be endorsed by Nike and Pepsi. www.jeddahunited.com and her husband, Obeid Madani, put together Almaeena and her team have competed in

Sector: Telecommunications/ Telecom Infrastructure Provider Bravo – Public Telecommunications Company ravo is having a great year. Nominated in having successfully positioned Bravo as one BJanuary as one of the companies on the of the three leading telecom companies in months at Bravo,” he admits. Saudi Fast Growth Start-Up List, Bravo was Saudi Arabia. Despite more than 15 years of experience again in the limelight when CEO Middle East The path to that award was not easy for working in telecommunications in both the magazine honored Bravo’s Chief Executive Al-Ageel, who was appointed CEO of Bravo military and private sector, Al-Ageel was not Officer, Mohammed bin Abdulaziz Al-Ageel, in September 2008. “This was one of the aware of the challenge he had in store for him with the 2010 “Best CEO in Business - Telecom biggest challenges I’ve had in my entire life. when he joined Bravo. Established in 2001 as Sector Award” for the Kingdom of Saudi It normally would have taken me ten years to the Public Telecommunications Company Arabia. Al-Ageel was chosen for the award for figure out what I had to learn in less than 18 continued on next page

U.S.-Arab Tradeline • Spring 2010 33 Bravo – from previous page Utilizing the “Tripod or Turnover Strategy” for them,” explains (PTC), Bravo launched its services in Saudi he developed while studying for his M.B.A. Al-Ageel, who built Arabia in 2005 as the sole licensed provider at King Saud University in Riyadh, Al-Ageel a special women’s of wireless communication services using hired Saudi marketing and sales directors, section for cus- Motorola iDEN technology. It operates under built a new team, and slashed costs. Against tomer relations. a license owned by the Saudi Telecommuni- all odds, the company turned the corner and B y 2 0 1 1 , cations Company. began to thrive. Al-Ageel intends “It was scary,” Al-Ageel says, noting that The company shifted its focus away from to make Bravo the when he took over he had to restructure the the general market and began to specialize in n u m b e r o n e entire organization, fire many of the long-time the government, business and industrial sectors. p r o v i d e r o f employees, and bring in new blood with market Bravo is the first and sole provider of Motor- telecommunica- experience. “The old model was not financially ola’s “Push-to-Talk” (PTT) technology in the tion services for viable. We had to change it, or the company Kingdom, which enables instant communica- the private and was going to fail,” he explains. tion between multiple users at the same time. public sector in According to Al-Ageel, another big problem Headquartered in Riyadh, Bravo has a Bravo CEO Mohammed bin Saudi Arabia. was that the company was built by non-Saudis. branch office in Dhahran and 400 employees, Abdulaziz Al-Ageel “If you want to create a niche service for the 60 percent of whom are Saudis. Al-Ageel actively Bravo – Public Telecommunications government sector in Saudi Arabia, you need recruited 22 women for Bravo, and they now Company people who understand the culture. If you are manage the customer care, sales, after sales and P.O. Box 62660 an expat, it is very hard to communicate with collections departments. “There are many Riyadh 11595 your customers, especially in the security and highly-educated women in Saudi Arabia, but www.bravo.net.sa military sectors,” he explains. not as many job possibilities as there should be

Sector: Telecommunications/ Telecom Infrastructure Provider Delta United Contracting nyone who comes to Saudi Arabia for opportunity to invest in a dynamic, successful “A business will regret that they did not Saudi entrepreneurial business with the poten- come earlier,” suggests Aziz Assi, the co-founder tial for sustained sizeable growth. This invest- and CEO of Delta United Contracting Co. ment is typical of Siraj’s traditional merchant start-up companies by the Saudi Fast Growth (Delta). Founded in late 2005 as a Saudi Company banking approach, where we strive to invest 100. “It is a tremendous advantage being on licensed under The Foreign Investment Regula- in companies with tier-A management teams the list,” explains Assi. “Other companies ask tion by the Saudi Arabian General Investment in growth sectors located in Saudi Arabia, me all the time what I had to do to get on the Authority (SAGIA), and headquartered in Riyadh, which we believe to be a unique market for list, what was the secret formula. It has become Delta provides state-of-the-art infrastructure direct investments.” an impressive award in our industry and it and maintenance services for major telecom Less than two years after it was founded, gives us great exposure,” he adds. operators and vendors across the Kingdom. Delta had established a 100 percent success Assi is an intrepid serial entrepreneur who rate on all of its projects. Within three years, has watched the business environment change the 200 employee company had contracts for the better in Saudi Arabia during the past with all major telecom vendors in Saudi Arabia. ten years. The liberalization of the telecom Delta has three major departments – wireless, sector and the more recent development of telecom installation and fiber optics. CEO new industrial and economic cities have Assi notes, “Since Delta was formed, we have increased the demand for infrastructure endeavored to build a solid platform for our services. Relaxation or elimination of many business to grow rapidly. We are confident of the old regulations, easing of restrictions that the relationship with Siraj Capital will for foreign investors, greater transparency, Aziz Assi (middle), CEO and co-founder of Delta United allow us to create the premier telecom infra- and the Saudi Arabian General Investment structure service company in Saudi Arabia.” Authority’s new “60-24-7” program are all During the past five years, Delta has This goal is moving closer every day. Delta factors that have made it much easier for small achieved a growth rate of more than 118 was recently approached by local and inter- and medium enterprises to succeed in the percent and its annual revenues in 2008 were national companies interested in either acquiring Kingdom, states Assi. “This encourages more between SR5-10 million ($1.3million-$2.6 shares in the company or forming joint ventures. people to become entrepreneurs and to give million). In 2009, Afkar Development Invest- In addition, Delta was short listed on a bid a lot back to their country.” ment Company, a Siraj Capital affiliate, made for a multi-billion-dollar telecom project, a strategic investment in Delta, which has a competing against industry giants such as Delta United Contracting Co. stellar track record in the industry. Huawei, ZTE, Ericsson, Nokia Siemens P.O. Box 52947 Commenting on that transaction, Siraj Network (NSN) and Alcatel-Lucent (ALU). Riyadh 11573 co-founder and CEO Ibrahim Mardam-Bey For the second year in a row, Delta was www.delta-united.com notes, “Delta offers Siraj Capital a unique ranked number 11 among the fastest growing 34 NUSACC • www.nusacc.org Sector: Travel Intercontinental Travel Company haled Alfadl had a successful career as “At that point, I decided I had to roll up Kcountry head of Islamic Banking at the my sleeves and jump into this full-time,” Arab National Bank when he decided to take explains AlFadl. “It was then or never. The over a failing travel agency in 2005. “It was longer I waited, the higher the risk calculation “That’s how risky this business is,” he states. a big risk because Intercontinental Travel would be.” He noted that his decision to leave He acknowledges that his banking background (ITC) had a SR 500,000 ($133,000) debt,” his job at the bank was not supported by saved the day many times. notes Alfadl. “However, it was also an oppor- anyone. “I took the plunge against everyone’s Intercontinental’s agents are on call 24/7 tunity to get involved in the travel business, advice, including my parents, but I believed and they are instructed to answer every inquiry. which is something I really enjoy.” in it and my passion overruled my logic,” “We have to differentiate ourselves with good “It’s been in my confesses Alfadl. “It’s service or our customers won’t come back,” blood for more than 25 been a tough ride, but Alfadl explains. years,” explains Alfadl, I’m glad I did it.” Intercontinental’s excellent services have who says that he was Intercontinental won the company numerous awards. In 2007 12 when he first started opened another two and 2008, ITC received Lufthansa Airlines to arrange all the family branches the following Superior Lufthansa City Center Award. vacations with travel year. Alfadl eliminated Emirates Airlines presented Intercontinental agencies in Jeddah. the company’s bad debt, with the Lifetime Achievement Award in “The travel business aggressively marketed 2008. The company also ranked among the was not new to me.” ITC’s website for online fastest growing companies on the Saudi Fast During the first year, bookings, and invested Growth 100 List – placing 14th on the list in Alfadl began to revive his own capital to 2009 and sixth in 2010. Intercontinental Travel expand the business. “I left the bank because I had a desire to while still working full- “We had to diversify excel,” admits Alfadl. “Now I am running my time at the bank and our revenue streams and own company and I have started a new journey managing his father’s consulting firm part-time. minimize risk,” explains Alfadl. He added more that has no limitations.” He pulled Intercontinental back from the brink accounts on the corporate and retail side, opened by establishing two new branches north and yet another branch, and brought in new agents Intercontinental Travel Company east of Jeddah that brought in additional with good VIP client accounts. “When everyone P.O. Box 12478 revenue. “In one year, the agency went from was firing, we were hiring,” he notes. Jeddah 21442 one branch to three and from three employees Alfadl keeps a close watch over the business, www.itc-lcc.com to 20,” says Alfadl. even updating the cash flow every few hours. Sector: Water, Energy and Power ACWA Power International CWA Power International was established company is two-thirds owned by ACWA Ain 2004 as a limited liability company Power Development (a joint partnership with the goal of becoming a fully capacitated between A.K. Al Muhaidib & Sons and developer, owner, and operator of indepen- Abdullah Abunayyan Group) and one-third dent seawater desalination and power owned by MADA Group for Industrial and nathan, President and CEO of ACWA Power generation plants, delivering low cost bulk Commercial Investment (one of the Al Rajhi International. “There was a chronic under- power and water. Group companies). investment in the sector at that time, as well Incorporated four A C WA P o w e r as a significant gap in supply and demand,” years later as a joint Development was one says Padmanathan. “Power was one of the s t o c k c omp a ny, of the first companies basic infrastructures that needed to be improved ACWA Power Inter- to respond to the Saudi and modernized.” national has rapidly Arabian Government’s As a lead developer, ACWA Power Inter- become one of the 2004 decision to priva- national identifies opportunities, assembles leading Independent tize the water supply development partners and advisors and puts Water and Power and power generation together competitive and comprehensive Projects (I W PP) sector through private/ proposals. Projects are structured on a conces- providers in t he Artist’s rendering of the Shuqaiq Water and Electricity public partnerships, sion or utility outsourcing contract model. Middle East. The Company facility currently under construction. explains Paddy Padma- continued on next page

U.S.-Arab Tradeline • Spring 2010 35 ACWA – from previous page billion Shuaibah IWPP south of Jeddah is IWPP in the region and is valued at approx- “In the past 18 months our staff has grown one of the largest combined power and water imately $1.6 billion. from 40 to 110 employees in the development plants currently under construction in the ACWA Power International’s meteoric rise company,” notes Padmanathan. “We have a world today. was recognized by the Saudi Fast Growth 100 completely global team that consists of at least In addition to these five projects, two when it ranked the company number three 25 different nationalities.” He explains that barge-mounted, self-supporting desalination on the start-up list in 2009 and among the ACWA runs all of the projects as the lead plants have been constructed, each capable of companies to watch in 2010. “This is a fantastic manager. “ACWA is the active partner,” says producing 25,000 cubic meters of water per program,” comments Padmanathan. “As Saudi Padmanathan. “We are not a passive investor day (m3/day). Once all of these projects are Arabia grows it needs to imbed the culture of or standby local investors. These are mostly fully operational, they will collectively deliver entrepreneurship. These initiatives that showcase billion dollar businesses and we take all the 6,000 megawatts (mw) of power and 2.24 what other Saudis have done are inspiring and risks,” he adds. million m3/day of desalinated water. help to put Saudi Arabia on the map.” To date, ACWA Power International has “Our plan was to build our foundation in launched five mega-projects: Rabigh Indepen- the Kingdom and establish a track record,” ACWA Power International dent Water Stream and Power Project (IWSPP), says Padmanathan. “Phase two involves P.O. Box 22616 Shuaibah IWPP, Shuaibah Expansion expanding regionally with the ultimate goal Riyadh 11416 Independent Water Project (IWP), Marafiq of becoming a global player.” ACWA Power www.acwapi.com Jubail IWPP and Shuqaiq IWPP. The $2.45 International is currently the third largest

Sector: Weighing Systems & Scrap Processing Al Sale Eastern Company Ltd. heikha Nadia Al-Dossary has a will of and the United Arab Emirates. Siron. As CEO & Partner of Al Sale Eastern Al-Dossary had worked her way up to Co. Ltd., Saudi Arabia’s leading company in being General Manager of Al Sale Eastern the field of ferrous scrap processing and when her husband was involved in a near-fatal weighing systems, Al-Dossary has established traffic accident that left him in a coma for installed a giant shredder – the first in the herself in a male-dominated two months and in recovery Kingdom – which dismantles, separates and industry and risen to the top. for several years. “I had to take shreds everything from computers to cars and Al-Dossary forged her path over,” recalls Al-Dossary, who also checks for any environmental problems. and that of Al Sale Eastern was the only woman in a Al Sale Eastern has 12 collection yards in when she joined the family- company of 128 employees. Saudi Arabia and controls more than 65 percent owned business in 1996 as an “The scrap business depends of the market. It is the largest local supplier investor and manager. It was on a daily exchange of money. of heavy metal scrap in the Kingdom and also a bold leap. Prior to joining We buy and sell scrap steel exports to the Far East. Al Sale Eastern, Al-Dossary every day and the loss of several Corporate social responsibility is an essen- spent five years working first days’ work can involve losses tial part of Al-Dossary’s business ethics. Several as a trainer and then as a general in the millions of dollars,” she years ago the company launched the National manager for the Avon cosmetics explains. Micro Yard Program which encourages Saudi company in Saudi Arabia. “I Al Sale Eastern thrived youth to become entrepreneurs instead of wanted to learn from experts,” under her management. “I employees by co-owning a scrap yard. As Al-Dossary emphasizes. “Avon don’t believe in running a co-owner, Al-Sale Eastern provides the neces- gave me the opportunity to Sheikha Nadia Al-Dossary business from the top down,” sary training, equipment and initial capital identify and open new markets asserts Al-Dossary. “It takes investment in the micro yards. for them throughout the Kingdom.” By the a team effort.” Within five years, the company “I never wanted to stay in my comfort time she left, Al-Dossary was Avon’s top expanded 500 percent. She spearheaded zone,” explains Al-Dossary, who has received producer in the region. improvements in the collection process and numerous awards for her accomplishments as Founded in 1976 by her husband, Sheikh was the first in the Kingdom to implement an entrepreneur. Ranked the top business- Youssef bin Ahmad bin Hamad Al-Dossary, European environmental and safety controls woman of the year by Arab News in 2006 and Al Sale Eastern is a pioneer in the ferrous scrap for the collection of scrap metal. “I want our 2007, Al-Dossary was also chosen that year processing industry. The company established company to be as green as possible,” states as one of the top 25 influential women in the the first local steel scrap yards in Saudi Arabia Al-Dossary. Al Sale Eastern inspectors check Middle East by Financial Times. and began supplying steel-base scrap metal to ensure that the scrap metal is neither to Saudi Iron and Steel Company (Hadeed radioactive nor procured from public or Al Sale Eastern Co. Ltd. – a Sabic company) in 1984. In 1994, Al Sale government sources. P.O. Box 885 Eastern added an industrial weighing systems By 2008, Al Sale Eastern had become a Al Khobar 31952 division to the company and has since installed leader in the industry in Saudi Arabia and the weighing systems in Oman, Kuwait, Bahrain GCC countries. That same year, the company www.alsale.com

36 NUSACC • www.nusacc.org Saudi Arabia - General Information on SMEs

Distribution of Employment Within Sectors by Size of Company*

18.0% nance, real estate and Sectoral Breakdown of Saudi SMEs 16.0% business services electricity, gas and water 14.0% Social industry Other SeS rvicesici eses 12.0% 6% agriculture 8% 10.0% Industrial social services 12% Commercial and Hotel 8.0% mining 47% Construction 6.0% contracting and building 27% 4.0% trade

2.0% PTT Source: Standard Chartered 0.0% * The graph leaves out 4 9 the category for “500 and more” employees 0 to to 0 to 5 10 to 19 to 10 39 to 20 59 to 40 79 to 60 99 to 80 100 to 199 to 100 299 to 200 399 to 300 499 to 400

Contributions of Different Sectors to Total SME Employment (companies with up to 100 employees)

electricity, gas contracting and finance & realty and water industry agriculture social services mining building trade PTT 3.4% 0.4% 10.4% 0.6% 9.0% 0.5% 31.5% 42.4% 1.9%

Number of Employees by Sector and Company Size in Saudi Arabia

electricity, contracting Size of company finance & gas and industry agriculture social mining and trade PTT other % in total Total (empl.) realty water services building 0 to 4 7931 229 19188 523 14141 751 29288 58785 2235 5 4 133076 5 to 9 8626 423 20872 595 14042 789 70218 87319 2250 18 6.1 205152 10 to 19 9004 792 28485 1455 19817 1183 119695 140862 3567 NA 9.7 324860 20 to 39 8960 859 27286 2183 24398 1235 103454 130836 6172 48 9.1 305431 40 to 59 5930 958 19082 1856 16503 1242 46482 69911 3985 NA 4.9 165949 60 to 79 2788 770 13637 1228 18347 818 34217 51389 3698 NA 3.8 126892 80 to 99 2145 802 12142 681 13566 915 21831 32215 3206 NA 2.6 87503 100 to 199 8719 3614 40572 3341 48182 2804 71394 100044 13677 NA 8.7 292347 200 to 299 5002 1665 25572 2965 31081 3645 47211 52984 6393 NA 5.3 176518 300 to 399 3463 3015 24896 974 22132 1142 41705 43338 5067 NA 4.3 145732 400 to 499 3504 2724 18148 849 24172 904 32781 34294 3914 NA 3.6 121290 500 and more 56357 42796 115957 27342 172780 69588 437220 316987 34455 1334 37.9 1274816 Totals 122429 58647 365837 43992 419161 85016 1055496 1118964 88619 1405 100 3359566

Information excerpted with permission from Benchmarking SME Policies in the GCC: A Survey of Challenges and Opportunities. (A research report for the EU-GCC Chamber Forum Project by Steffen Hertog)

U.S.-Arab Tradeline • Spring 2010 37 Saudi Arabia At-a-Glance

Area 2,240,000 sq km CYPPRRUS Med. SYRIA SAUDI ARABIA LEBBANNON Population 27.019.731 million (2006) Sea IRAN International Boundary Density of Population 2.18% (2006) ISRAR ELEL IRAAQ Governorate Boundary National Capital Capital Riyadh Governorate Capital JORDR ANN Ar’ara City Main Cities Riyadh (Capital) Sakaka 0 100 200 300 Kilometers KUKUWWAIT 0 100 200 300 Miles Makkah (The most sacred place to Tabuk Muslims, and their praying direction) Ha’il Ras Tanura Al Madinah (Second most sacred place Add Damman BAHRAIN to Muslims) Buraydah Dahran Arabianb Gulfu QQAATA ARA Gulf of Omann Riyadh Jeddah (Saudi capital of business, an Medina (Al Madinaha ) important port, and a major gateway EGYPPTT UAAE to pilgrims)

Jeddah Mecca (Makkaha ) Dammam (Capital of Eastern Province, (Jiddah) and an important port) OMAN All BahahBaB h Dhahran (The location of Saudi Red SUDAAN Sea Aramco’s headquarters, the largest oil Abha company in the world) NajranN j Jizan Language Arabic ERITREA YEMENN Currency Saudi Riyal Arabian Sea National Day September 23rd

Symbol Two crossed curved swords which Gulf of Aden symbolize strength and justice. A palm DJIBBOUTI ETHIOPIA tree on the top symbolizes prosperity. M Timing GMT + 3:00 Map produced by Rick Clark Illustration & Design Internet Code sa Phone Code 00966 Ebda’a Exchange Supports Calendar Saudi Arabia follows the Muslim Hijra Saudi Businesswomen calendar. Hijra year has 12 months. However, it’s ten or eleven days less n May 9-11, Ebda’a, a Saudi women’s business than the calendar year. In the Hijra Oorganization, held its seventh annual confer- calendar, the month ranges between ence entitled “Ebda’a’s Exchange” in Al Khobar. 29 to 30 days. Co-sponsored by the Gulf Chapter of the Inter- Working Days Saturday to Wednesday national Public Relations Association (IPRA-GC), and with the support of Princess Ghadah bint Public Sector: 7:30 a.m. to 2:30 p.m. Abdullah bin Jiluwi, the conference showcased Private Sector: women-run businesses and attracted more than Morning: 8:00 a.m. to 12 p.m. 300 Saudi businesswomen and entrepreneurs. Afternoon: 4:30 p.m. to 7:30 p.m. Noura Al Shaaban, Ebda’a’s Thursday: (morning shift only) Organized by-and-for businesswomen, the founder and president conference focused on encouraging female entre- Banks: 8:30 a.m. to 4:30 p.m. preneurship in Saudi Arabia. Noura Al-Shaaban, founder and president Shopping Stores: of Ebda’a, noted that the conference “is intended to help women develop Weekdays: 10:00 a.m. to 12:00 p.m. their business concepts and to support them.” Friday: 4:00 p.m. to 10 p.m. Saudi entrepreneur Ayah Darwish started “Let’s Paint,” an arts and Weekends Thursday - Friday crafts store, and designed what she describes as one of the first Saudi- produced craft toys. According to Darwish, local entrepreneurs still struggle Official Holidays Eid Al Fitr: to find the support they need to launch a business. “It’s important to have 25th Ramadan to 5th Shawwal creative people and entrepreneurs,” said Darwish, “but it’s equally impor- Eid Al Adha: tant to have sponsors who will support new businesses.” 5th Thi Alhijja to 15 Thi Alhijja

38 NUSACC • www.nusacc.org COMMENTARY KAUST: A Catalyst for Small Business Growth

n my travels around the Kingdom since applications for the benefit of society. The I the recent launch of the King Abdullah incubator will assist with business plans, local University of Science and Technology service providers, accommodations, and other (KAUST), I have encountered considerable services intended to make the transition to enthusiasm for this new “House of Wisdom” KAUST as worry-free as possible. on the shores of the Red Sea. Saudis and Moreover, through the KAUST Industrial non-Saudis alike recognize that this extraor- Collaboration Program (KICP), the university dinary experiment, made possible through will introduce these start-ups to such world- the vision of the Custodian of the Two Holy class companies as Boeing and IBM – firms Mosques, has the potential to transform the that are well positioned to help match up Kingdom into one of the world’s top destina- fledgling technologies with global applications. tions for academics looking to conduct KICP promises to promote collaboration to scientific research at the graduate level. foster pilot projects, create consequence David Hamod, NUSACC What few have apparently realized, companies, and build capacity in cooperation President and CEO however, is that KAUST could also play a with some of the world’s best recognized leading role in fostering partnerships between business entities. entrepreneurs around the world and Saudi Access to such expertise is essential, but it “The biggest obstacles for most Arabia’s business community. represents only part of the equation. The other The biggest obstacles for most small compa- vital element needed is funding. small companies worldwide are nies worldwide are two-fold: access to research For worthy start-ups with a good track two-fold: access to research facilities and access to capital. The former is record, KAUST has established a Seed Fund essential for start-ups looking to develop cutting- that may invest up to $250,000. This is a facilities and access to capital. edge technologies, and the latter is vital for remarkable contribution by any standard, but The former is essential for production, market penetration, and commer- it pales in comparison to funding that should start-ups looking to develop cial growth. KAUST, and investors in Saudi become available through Saudi Arabia’s Arabia, offer access to all of these. private sector. cutting-edge technologies, and The Kingdom’s business the latter is vital for production, community is known for its investment savvy but, histori- market penetration, and cally, there were very few commercial growth. KAUST, “pipelines” in Saudi Arabia that and investors in Saudi Arabia, methodically carried entrepre- neurs to local investors. With offer access to all of these.” the establishment of KAUST, David Hamod this may be about to change. One can imagine a scenario in which chambers of commerce KAUST is doing its part to recruit the best like mine, working in cooper- and the brightest from Saudi Arabia and around ation with the Council of Saudi the world to engage in scientific research. With Chambers of Commerce and business community collaboration, converting The KAUST Library (center) and campus at twilight. Industry, help to identify entre- such research to commercial applications for preneurs overseas who are good the marketplace holds the potential to create For small businessmen and businesswomen, candidates for research & development oppor- new cutting-edge companies, generate home- particularly those leading early-stage technology tunities at KAUST. grown jobs, and help the Kingdom move start-ups, KAUST’s Innovation Clusters look These same chambers, working with their toward the knowledge-based society envisaged like a dream come true. On a competitive member companies, would also be well by King Abdullah. basis, at little cost to these entrepreneurs, positioned to provide more substantial seed KAUST offers state-of-the-art research labora- money in support of those technologies that David Hamod, President & Chief Executive tories and offices. have promising commercial applications. Such Officer of the National U.S.-Arab Chamber of But that’s just for starters. funding is especially important now – at a Commerce, (NUSACC) attended the opening KAUST also offers a business incubator time when banks around the world have largely of KAUST on September 23, 2009. designed to convert high tech research projects shut off the supply of capital to small businesses into commercial entities that will offer practical and entrepreneurs. Reprinted courtesy of Gulf Business magazine.

U.S.-Arab Tradeline • Spring 2010 39 Prince Salman bin Abdulaziz Young Entrepreneur Awards: Building Tomorrow’s Leaders

he Prince Salman bin Abdul Aziz Young industry, service, trade, technical, agricultural TEntrepreneur Award was established in and leadership. Saudi nationals between the 2006 to support young male and female ages of 18 and 40 who have established a entrepreneurs and to instill an entrepreneurial business or developed a project that has made spirit among the future generation of leaders a significant contribution to society in one in Saudi Arabia. Referring to the youth of of these six categories, and has at least a “Young entrepreneurs should renew Saudi Arabia as the “fuel of its civiliza- one-year track record, are eligible to the business spirit. They should not tion and the hope of its future,” apply for the award, which carries rush success and should seek to build the award recognizes the increas- a cash prize of SR100,000 it step by step. They are the bricks ingly important role young ($26,600). entrepreneurs play in the In addition to these main needed for building this homeland.” Kingdom’s economy. categories, additional awards H.R.H. Prince Salman bin Abdul Aziz Saudi Arabians under the are presented to the best age of 40 establish more than government and best private The Prince Salman bin Abdulaziz Award 72 percent of the small and organization, as well as to a also organizes educational seminars, forums medium enterprises (SMEs) leading business person who and training workshops for entrepreneurs, registered annually. They repre- has demonstrated outstanding and it partners with similar regional and sent 69 percent of the work force support to young entrepreneurs. international award committees. Recently, and are the Saudi business commu- In 2010, The Centennial Fund won the Award committee finalized an agreement nity’s fastest growing group, increasing the Best Government Organization Award, with the Talal Abu-Ghazaleh Organization approximately 5.7 percent annually, according National Commercial Bank (NCB) was (TAG-Org.) whereby TAG-Org. will register to the findings of the award committee. presented the Best Private Organization Award, trademarks free of charge (with only minor The annual awards are presented to and Mohammed Abdul Latif Jameel won the government fees applicable) for young entre- outstanding entrepreneurs in six categories: Businessman of the Year Award. preneurs in the Kingdom.

NATIONAL U.S.-ARAB Key Contacts for the Kingdom of Saudi Arabia CHAMBER OF COMMERCE Saudi Government Contacts Business Organizations in in the United States Saudi Arabia National Headquarters: Royal Embassy of the Kingdom of Saudi Arabia Council of Saudi Chambers of 1023 15th Street, NW, Suite 400 601 New Hampshire Avenue, N.W. Commerce & Industry Washington, DC 20005 Washington, DC 20037 P.O. Box 16683 Tel: (202) 289-5920 • Fax: (202) 289-5938 Tel: (202) 342-3800 Fax: (202) 944-3113 Riyadh 11474 Web: www.saudiembassy.org Saudi Arabia 1330 Post Oak Boulevard, Suite 1600 Tel: +966 (1) 218-2222 Fax: +966 (1) 218-2111 Saudi Arabian Mission to the United Nations Houston, TX 77056 Web: www.saudichambers.org.sa 809 UN Plaza, 10th/11th Floor Tel: (713) 963-4620 • Fax: (713) 963-4609 New York, NY 10017 Middle East Council of American Tel: (212) 557-1525 Fax: (212) 983-4895 Chambers of Commerce (MECACC) 8921 South Sepulveda Boulevard, Suite 206 Web: www.saudi-un-ny.net • American Business Association – Eastern Province Los Angeles, CA 90045 • American Business Group of Riyadh Tel: (310) 646-1499 • Fax: (310) 646-2462 U.S. Government • American Businessmen of Jeddah Contacts in Saudi Arabia P.O. Box 8723 420 Lexington Avenue, Suite 2034 United States Embassy in Saudi Arabia Riyadh 11482 New York, NY 10170 P.O. Box 94309 Saudi Arabia Tel: (212) 986-8024 • Fax: (212) 986-0216 Riyadh 11693 Web: www.mecacc.org Saudi Arabia Email: [email protected] ©2010 National U.S.-Arab Chamber of Tel: +966 (1) 488-3800 Fax: +966 (1) 483-0773 Commerce (NUSACC). All rights reserved. Web: riyadh.usembassy.gov Federation of GCC Chambers P.O. Box 2198 No part of this publication may be reproduced, Business Organizations in Dammam 31451 stored in a retrieval system, or transmitted the United States Saudi Arabia in any form or by any means, electronic, U.S.-Saudi Arabian Business Council Tel: +966 (3) 835-5006 Fax: +966 (3) 835-5007 photocopying, recording, or otherwise, without 8081 Wolftrap Road, Suite 300 Web: www.fgccc.org prior written permission of the National U.S.- Vienna, VA 22182 Arab Chamber of Commerce. Tel: +1 (703) 962-9300 Fax: +1 (703) 204-0332 Tradeline written by: Piney Kesting, Managing Editor Web: www.us-sabc.org Produced by: Rick Clark Illustration & Design