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World Report

10 FEBRUARY 2011

JEDDAH The star of Saudi Arabia PART ONE

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JEDDAH A modern, urban city exemplifies change Jeddah, the most dynamic city in Saudi Arabia, has taken major, positive strides in its social, economic and educational reforms

he second largest city in Saudi Ara- need to engage with the modern world, and bia, Jeddah exemplifies the changes – as long as its Islamic values are not com- that have been taking place during promised – for Saudi Arabia itself to mod- Tthe five-year reign of King Abdullah ernise. Positive steps have been taken to lib- bin Abdulaziz. Located in the Province of eralise and diversify the economy. Just over Makkah, which also contains the holy cities four months after his accession, Saudi Ara- of Makkah and Medina, Jeddah is Saudi Ara- bia became a full member of the World Trade bia’s most modern and cosmopolitan urban Organisation, opening up the economy to centre, and is undergoing a construction foreign investors. boom that reflects the massive and ongoing Reform measures continue to be implement- economic expansion of the desert state in re- ed, although the state retains strong control cent years. of economic activity. State spending is the King Abdullah ascended to the throne in most powerful driver of the economy, which 2005, but has effectively been running the is forecast to grow by 4.2 per cent in 2011, country since 1995 when his predecessor, after 3.8 per cent growth last year. King Ab- King Fahd, was incapacitated by a stroke. dullah’s government has budgeted to spend He has recognised the need to engage with more than $68 billion dollars (£42.6 billion) the modern world and for Saudi Arabia it- this year, the equivalent of 15 per cent of self to modernise, and has overseen a range GDP. In the four-year period 2010-2014, a of economic, social, education and health total of some $373 billion is to be spent on projects that are gradually changing the face social development and infrastructure pro- of the kingdom. jects to boost economic development. Six new King Abdullah rules over one of the world’s economic mega cities are to be built, includ- most strategically important countries. Sau- ing King Abdullah Economic City, current- di Arabia is the world’s largest exporter of ly under construction at Rabigh just 60 miles petroleum, controlling a fifth of the world’s north of Jeddah. oil supply. For Britain and the United States, The opening in 2009 of the King Abdul- the kingdom is a key ally in one of the most lah University of Science and Technology – volatile and potentially dangerous parts of Saudi Arabia’s first mixed gender universi- the world. Saudi Arabia plays a vital role in ty – marked the realisation of the King’s vi- the maintenance of regional security and the sion to initiate a new era of scientific and fight against terrorism, and is also an im- economic progress in the kingdom. The uni- portant trading partner, particularly in the versity is intended to act as a catalyst for defence market. transforming Saudi Arabia into a knowl- Saudi Arabia is the most traditional and edge-based economy and to become one of conservative of Arab states, a country where the world’s great research institutions. religious principles are fundamental to the The new Princess Noura Bint Abdulrah- conduct of political, economic and social man University in Riyadh, which is due to life. As Custodian of the Two Holy Mosques, open a new campus in 2012, will accommo- the King draws his authority from Islam, the date up to 40,000 students and is designed established religion, rather than any secu- to become the largest women-only universi- lar source. ty in the world. In the modern global economy, howev- On the diplomatic front, King Abdullah has er, no country can prosper in isolation and worked for resolution of the Israel-Palestine no economy can grow without change. Sau- conflict through the Arab Peace Initiative, di Arabia is no more immune to the chal- based on a plan he presented to the Beirut lenge of new problems and the need to find Arab Summit in 2002. He has also sought solutions than anywhere else. In the long to resolve conflicts in the Arab and Islamic term, oil is a dwindling resource and Sau- world and promoted dialogue between fol- di Arabia will need to find new sources of lowers of different religions; his call for in- income. More immediately, it has a rapid- terfaith dialogue led to the World Confer- ly growing population and needs to create ence on Dialogue in Madrid in 2008 and a jobs for its young people. King Abdullah Bin Abdulaziz Al Saud, a firm believer in multicultural dialogue, and the World United Nations conference in New York the King Adbullah, who is also the Prime Min- Muslim League extended an invitation to Rabbi Arthur Schneier of the Park East Synagogue, pictured same year. ister, is a reformer who has recognised the above, to speak at an Inter-Religious conference held in Madrid, Spain, from July 16-18, 2008 First in the line of succession to King

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JEDDAH

Crown Prince Sultan Bin Abdulaziz, Deputy Prime Minister and Minister of Defense and Aviation, laid the foundation stone on January 11 for the new King Abdulaziz International Airport in Jeddah

Abdullah is Prince Sultan bin Abdulaziz, The new airport will facilitate the arrival Prince Khalid Al Faisal. Appointed in 2007, JEDDAH PROJECT TEAM who has held the position of Deputy Prime and departure of the increasing numbers of the Prince was formerly Governor of Asir Project Director: Idil Demirel Minister since 2005. The Crown Prince is pilgrims travelling to the holy city of Makkah in southwestern Saudi Arabia, where he Editorial Director: also Minister of Defence and Aviation and for the annual Hajj; the officially announced played a major role in the development of Juan Manuel Sacristán Inspector-General. number of pilgrims last year was 2.8 mil- the region. He also holds the rank of Min- Project Assistant: Alla Ilushka In an earlier role, as Minister of Trans- lion, although large numbers of illegal pil- ister within the Royal Government of Sau- portation, Prince Sultan made an important grims also attend. di Arabia. This supplement was produced for The contribution to the development of the king- It will also support the comprehensive de- Internationally recognised as an artist, Independent by World Report dom’s roads and telecommunications network. velopment of the holy city, for which a 20- poet and patron of the arts, Prince Al-Faisal International Ltd, who are solely He oversaw the construction of the Arabian year development plan involving investment established the Arab Thought Foundation responsible for the content. Peninsula’s only railway system, linking of around $26 billion is currently being fi- in 2002 and the Cultural Council of Makkah World Report International Ltd is not Dammam with Riyadh, and he continues to nalised for King Abdullah’s approval. in 2008. He is also managing director of connected or associated with any be involved with transportation in the king- The Governor of Makkah Province is the King Faisal Foundation, one of the company registered in the United dom as chairman of the Saudi Arabian Rail- largest philanthropic and charitable organ- Kingdom bearing the same or similar ways Organisation and chairman of the na- isations in the world, and in 2010 was name. tional carrier, Saudi Arabian Airlines. picked as Leading Personality of the Year As Minister of Defence and Aviation, a po- by the World Travel Awards in recognition FOR MORE INFORMATION sition he has held since 1963, the Crown of his efforts to develop religious tourism CONTACT: Prince has played a key role in building up and his pioneering work for the Foundation. World Report International Ltd, and modernising Saudi Arabia’s armed forces. The Prince has declared that the aim of 35 Brompton Road, Knightsbridge, Known for his humanitarian and philan- the development plan is to make Makkah London SW3 1DE thropic interests, in 1995 he established the one of the most beautiful, civilised and ad- Tel: +44 20 7629 6213 Prince Sultan bin Abdulaziz Charity Foun- vanced cities in the world. “Our dream for [email protected] dation, which supports socially beneficial Makkah is taking shape,” he says. “It is projects in medicine, science, technology not a mirage in the World Report would like to thank and education. desert or an out- the following for their support in the On January 11, Prince Sultan laid the landish aspiration, realisation of this report: Prince foundation stone for a huge new King Ab- but a real, heart- dulaziz International Airport in Jed- pounding rhythm of Khalid Al Faisal (Governor of dah. The $7.2 billion development, part progress seen and heard ris- Makkah Region), Dr Abdulaziz of a comprehensive programme to ing up from the sands.” ● Alkhedheiri (Deputy Minister of develop Saudi Arabia’s domestic Makkah Region), Haitham O Ja- airports, will increase KAIA’s ca- mal Allail, Sheikh Mohammed pacity to 35 million passengers an- Saeed, Serhat Ozalpi, Waleed A Al nually and raise its profile as an aviation hub linking east and west. Hamoudi and Ghassan Al Abdali

Prince Khalid Al Faisal, Governor of Makkah Province has a vision to This report can also be make the city of Makkah, which is read online: roughly 50 miles from Jeddah, one www.worldreport-ind.com of the most beautiful in the world

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JEDDAH Jeddah The bride of the Red Sea and gateway to the Holy Mosques

here are many theories as to how which the majority of pilgrims arrive by long Jeddah has been inhabited – air and sea to perform Umrah, Hajj or to some archaeological studies sug- simply visit the two Holy Mosques. Tgest that there were people living Jeddah’s tourism sector, consequently, in the region as far back as the Stone Age is one of the city’s strongest, yet it has al- and historians trace the city’s history back so given way to many other successful in- to the fourth century BC as a fishing set- dustries. From the manufacturing and dis- tlement – yet there is no doubt that today tribution of consumer goods to finance and Jeddah is a major thriving commercial, banking, and from real estate to health- cultural and religious centre that has built care, Jeddah’s economy is widely based itself up around its long history, careful- on a variety of sectors and myriad suc- ly conserving its heritage. cessful companies that have helped cata- During the sixth century the city of Jed- pult the city into the privileged position dah greatly rose in importance with the as one of the Middle East’s most impor- birth of Islam; in the year 647 AD, Oth- tant industrial and business centres. Among man bin Affan chose it as the major port the world’s emerging nations, Jeddah is city from which to access the holy city of ranked fourth in the 2010 Innovation Makkah. He dubbed the city ‘Balad Al- Cities Index. Qanasil’, or City of Consulates. By the City mayor Hani Abu Ras is determined tenth century, written accounts described to help maintain the city’s pace of devel- Jeddah as secure, prosperous and clean. opment that Prince Khaled Al-Faisal (Gov- Over the course of the last 1,500 years, ernor of Makkah Province) and Prince Jeddah has passed from Umayyad hands Misha’l Bin Majed (Governor of Jeddah) to the Abbasids, followed by the Ayyubids, have led. He is also emphasising the im- Mamluks, Ottomans, and finally, the pre- portance of environmental awareness in sent Al-Saud dynasty. the city’s growth, saying that different Nowadays, Saudi Arabia’s sec- sectors must come together and cooper- ond largest city, population 3.4 ate to protect Jeddah’s environment, million and rising, is characterised keeping it clean and reducing pollution. by its curious mixture of Turkish Some of the key issues that Mr Abu Ras architecture – seen in the tall will address during his term, which and graceful coral limestone began last August, are traffic con- buildings of the old town – gestion, the sewage network and and modern skyscrapers, various other problems caused by all of which line the flooding in late 2009 and earlier region’s 50-mile this month. Corniche. Jeddah Arabic speaking visitors should is KSA’s principle have little trouble understanding port on the Red the Hijazi dialect spoken in the Sea, and remains region, yet one can quite easily get today the main by in English, as it is the second gate through language of choice in schools. ●

A blend of historical and modern buildings makes for an architecturally fascinating city. Above, the National Commercial Bank, the largest bank by assets in the Arab world. Right, the Water Mosque, which at high tide appears to float on the Red Sea

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JEDDAH Yesterday Today

Al-Balad, the historical centre of Jeddah, is full of souks selling traditional crafts and foods Jeddah’s Corniche is lined with new office buildings, residences, hotels and resorts

MANY CITIES boast of being gate- khans (small shops), where all manner of JEDDAH HAS come a long way eye-catching than the skyscrapers are ways to regions or to markets, yet items can be purchased, at a haggled price since the days of fishing and car- Jeddah’s roundabouts. The oil boom of Jeddah is the Muslim world’s religious of course. Located next to Bab Makkah, avans. Today, the skyline reflects the the 1970s and 80s was accompanied gateway in the true sense of the word, and the gate out of the formerly walled-in city city’s dynamic and extraordinary by a focused civic effort to liven up the has been since the seventh century AD. leading to Makkah, Souq Al Badu is one growth, as well as the attention and city’s public areas with open-air art. The historical centre of Jeddah, Al-Bal- of Jeddah’s oldest surviving souks and spe- care that the government and business Thanks to this, today the city’s round- ad is home to beautiful old mosques, cialises in Bedouin delicacies, clothes and community are providing to ensure abouts are decorated with a variety of which date back to the seventh, ninth and trinkets. that Jeddah develops into one of the sculptures, ranging from giant objects tenth Hijri Centuries, as well as striking Jeddah’s rich heritage of architecture world’s most beautiful and visitor- of traditional Saudi culture all the way stone and wooden houses that have en- fell victim to rapid urban growth in the friendly metropolises. to curious modern creations. dured over time thanks to their method of mid 1900s, yet this was put to a stop in Long a welcoming place for pil- Jeddah, the most cosmopolitan of all construction. Also characteristic of some the 1970s when the municipality began grims, Jeddah is home to a host of ho- Saudi cities, is a city of life and a old houses in Al-Balad is the Mashrabiya, historical preservation efforts. The Histori- tels and resorts that cater to all bud- crossroad of culture. It is also a grow- intricate lattice-covered oriel windows that cal Area Preservation Department was es- gets. Parks and recreational centres ing industrial and commercial city that allow cool air from the street to enter tablished in 1990 to help promote cultural dot the 50-mile-long Corniche, while is experiencing a great revival. New while giving shade and protection from the tourism and protect the city’s old buildings the impressive King Fahad Fountain investment, both domestic and foreign, hot Arabian sun. and heritage. In the same year, the Urban just off the beach is a sight to be seen, is pouring into myriad sectors, and the A wander through the narrow streets of Development Company was formed to re- jetting saltwater over 1,000 feet into fields of education, healthcare, infra- Jeddah’s old neighbourhoods, or harats, store Al-Balad and create new spaces in the air. structure, hospitality and housing are will take visitors past several souqs and harmony with the local architecture. ● Perhaps less imposing yet no less benefiting tremendously. ● Creating better urban spaces TWENTY YEARS AGO, the late Ab- into account the unique environment tral Jeddah, a project awarded to dulaziz Abdullah Kamel, maestro be- and climate of Saudi Arabia. The Jeddah Central District Company hind the Jeddah City Centre urban company also creates niche market (JCDC), a consortium comprising regeneration movement, founded Ur- projects that “don’t copycat other UDC and various local and foreign ban Development Co (UDC) with the projects and harm the market,” says partners, and being implemented in vision to develop sustainable real es- Mr Abdullah Kamel. partnership with the municipality of tate projects that simultaneously UDC’s mega-projects include Al- Jeddah. preserve Saudi cities’ local heritage Beutat, an award-winning, afford- Covering an area of 600 hectares, and culture, and create profits for able residential compound; Beautat the Jeddah Central Development Pro- both the company and its investors. Business Park, an office-villa com- ject will expand the city’s role as a As he was known to say, “Whatever plex considered one of the most elite major economic hub, enhance its po- you do, make sure you have a good addresses for companies; Beautat Al sition as the gateway to the Two Holy cause for it.” Bahr, a series of graceful and ele- Mosques, and contribute significantly Today, Abdullah Abdul Aziz Kamel, gant beachfront villas; Burj Al Ji- to an improved quality of life. managing director of UDC, follows in war, an attractive full freehold resi- “My father once said that a suc- his father’s footsteps, spearheading dential tower located just steps away cessful project is the one that em- new and innovative projects, many of from Makkah’s Holy Ka’ba and the ploys the largest number of people, which have become unique architec- Sacred Mosque; and Diar Al Bahar, respects the environment and cul- tural landmarks. UDC blends local a multi-storey block of luxury flats ture, and adds beauty to the plan- materials (such as coral stone, which overlooking Jeddah’s beautifully et,” muses UDC’s managing direc- is sustainable in Jeddah’s humid cli- landscaped Corniche. tor. It would seem that UDC exe- mate) and architectural elements Today, the company’s flagship pro- cutes one truly successful project af- The Diar Al Bahar Tower overlooks the sea with modern techniques, and takes ject is the urban regeneration of cen- ter another. ● on Jeddah’s lovely Corniche

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JEDDAH Major R&D Enterprise push to harness Trade and industry flourish as construction booms solar power One area in which its technology division he industrialisation of Saudi Arabia Jeddah is investing heavily to improve its specialises is in developing and integrat- has created huge opportunities for infrastructure. Water, drainage and major Al-Afandi has its ing systems and solutions for security and overseas companies to supply goods transportation projects form the core of the name on some of the surveillance. Tand services to the kingdom. In ad- urban renewal initiatives now under way. The company has become the leader in dition to rising demand across the board, the A report by Jones Lang LaSalle, Jeddah: world’s best solar cells traffic management systems, which it has country’s buoyant economy and pro-busi- Planning for Growth, indicates that Jeddah recently started to install in the king- ness environment have attracted investment will reap the benefits of new public and pri- and its diverse dom. Saudi Arabia has the highest road and stimulated rapid growth in various sec- vate investment in the real estate market in accident death toll in the world and Al- tors, spurring a trade and industry upsurge. particular. Construction activity is booming activities span IT, road Afandi has developed several integrated Government reforms and initiatives have as the industry strives to meet growing de- safety and agriculture solutions for traffic management that encouraged greater involvement by the pri- mand for new spaces. Nationwide, accord- have been implemented in the holy cities vate sector, enabling the nation’s manufac- ing to Proleads Research, over 720 con- of Makkah and Madinah, for example, turing base to expand and an entrepreneur- struction projects are currently in the pipeline, olar power is a natural choice as well as in coastal, border and inner ial business culture to thrive. with a total budget of more than £270 bil- for a country like Saudi Arabia, city areas. A pilot project relating to red Widely regarded as the kingdom’s com- lion spanning commercial, retail, education, where the sun beats down all year light and speed control has been tried out mercial capital, Jeddah is also flourishing. healthcare, leisure and residential sectors. Sround for an average of 12 hours in Jeddah and Riyadh with remarkable Jeddah Islamic Port is the oldest and busiest Organisers of the region’s most commer- a day. In the vanguard of the drive to har- success. in the country, handling around 59 per cent cially successful trade fair, The Big 5, have ness the power of the sun is Al-Afandi Es- “We are one of just three investors to of the country’s imports, and has benefitted chosen to host The Big 5 Kingdom of Sau- tablishment for Trade, Industry and Con- be granted permission to implement the from recent upgrades and expansion projects. di Arabia in Jeddah from February 27 to tracting, whose state-of-the-art factory system all over the country,” says Sheikh Not only is it Saudi Arabia’s principal com- March 2. Connecting construction buyers in Jeddah utilises the latest American, Al-Afandi. “One of our major upcoming mercial port, but it is also the main maritime and sellers from around the world, the four- French and Swiss technologies to manu- projects is a contract we have with the point of entry for pilgrims heading to the holy day event will showcase all aspects of the na- facture solar cells for small-scale elec- government that is ongoing for the next cities of Makkah and Medinah. tion’s construction industry. ● tricity generation. five years, covering three regions in Sau- “It is our objective to lead this area in di Arabia: the East Region, the North Saudi Arabia,” says Sheikh Ibrahim Al- Region and the South Region. Afandi, the company’s general manager. “We are going to be focusing on this “After 20 years of spending money and in particular for the Arab countries. We effort gaining experience and knowledge, are already competing in other Arab coun- we now have our name on one of the best tries, for example the United Arab Emi- solar cells in the world.” rates, Dubai in particular, and in Qatar, One of the long-established firms that Lebanon and Jordan. We are in a good has contributed to the evolution of mod- position to start pushing and supporting ern Jeddah, Al-Afandi is a company these activities for the future.” with a range of business interests, from Al-Afandi is a leading investor in health- technology to real estate, tourism and care and an exclusive provider of med- farming. Its core philosophy is to en- ical equipment to the largest health gage in activities that promote institutions in the kingdom and the common good. some other Gulf states. It is al- “We have been able to estab- so the sole distributor for a large lish ourselves as one of the three number of international med- leading investors here in Saudi ical companies, including Shi- Arabia,” says Sheikh Al-Afan- madzu Corporation of Japan. di. “The most important respon- In the real estate sector, Al- sibility of the private sector is Afandi’s projects include Al- to support, help and build the Buhairat City, a water-oriented country.” resort and residential complex Alongside renewable energy, SHEIKH IBRAHIM fronting more than half a mile the company focuses on infor- AL-AFANDI of the Red Sea coast that is de- mation technology, an area in General Manager signed to attract regional as which it has spent more than of Al-Afandi well as local visitors. $53 million (£33 million) on Other real estate projects in- research and development over the last clude Saudia Airline City, comprising 20 years. Al-Afandi turned its attention 4,000 residential units; Al-Baha, a scheme to modern technology and research – focusing on housing and tourism; and traditionally limited to developed coun- Mecca Gate, a residential, commercial tries – as long ago as 1987, establish- and recreational project. ing a hi-tech department aimed at One of the group’s most important for- producing distinctive products for the eign investments is the Gang Ranch in Middle East. British Columbia, Western Canada. Ex- Today, the company employs a team of tending over some 1,450 square miles, 15 highly qualified researchers, engi- including woods, lakes and mountains, it neers and technicians, and R&D plays a is the second largest farm in North Amer- key role in the expansion of its business ica and, with 5,000 head of cattle, one activities. of Canada’s largest cattle producers. ●

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JEDDAH Automotive experts drive up quality

er our service wherever they may reside in Road’s automobile row, where most car Haji Husein Alireza & Co Ltd is the the kingdom. This is also of major impor- dealerships reside. tance to large fleet operators, especially Mr Alireza emphasises the company’s exclusive distributor in Saudi Arabia for Aston of trucks, where they have the peace of mind continuous programme of investment in that no matter where their vehicles oper- the business that has kept both its manu- Martin, Mercury, Mazda and MAN Trucks ate, they will always be close to a Haji Hu- facturer partners and customers happy. sein Alireza support centre.” The company is regularly cited by its sup- aji Husein Alireza (HHA) is Sau- forts and investments on the automotive sec- The success of this vision is clearly no- pliers for having a high customer satisfac- di Arabia’s second oldest com- tor since the mid-70s. As a result, Mr ticeable on the streets of Saudi Arabia tion ranking. pany, having been established in Alireza proudly points to a map of Saudi where Mazda is not only a major presence While the company has traditionally con- H1906, with the oldest being an- Arabia where every corner of the country on the kingdom’s highways, but also en- centrated on trading, it has recently ven- other Alireza family business, Haji Abdul- is served by HHA. He says, “We have con- joys a high level of owner loyalty and cus- tured into the manufacturing field by lah Alireza. In 1926, 20 years after it was centrated on our geographic growth in or- tomer satisfaction. partnering with Germany’s MAN Truck established, HHA became the first importer der to be a truly national company, which The company clearly places great im- and Bus Company to establish a Jeddah- and distributor of automobiles in the Ara- few auto dealers can claim to be. Saudi Ara- portance on the quality of its dealerships. based assembly plant for MAN, the first bian Peninsula. bia is the size of Western Europe and it Jeddah is home to many beautifully de- of its kind in the Middle East. This further Ali Alireza, the company’s managing di- has always been important for us to reach signed showrooms, but few in the world solidified MAN’s market share as the sec- rector and great grandson of the founder, our customers and can match the HHA main ond leading truck company in Saudi Ara- lists some famous names that have been deliv- showroom on Madinah bia in 2010. represented by his company, such as Nash, As for HHA’s future plans, Mr Alireza Studebaker and Hupp Mobile – all famous reemphasises the company’s strategy brands relegated to history. Some names of continuous investment in facilities HHA worked with are still going strong, and market coverage. He says, such as Fiat and Ford, although the Mer- “The Saudi Arabian economy is cury brand from Ford has now joined those one of the fastest growing venerable old names of automotive histo- economies in the world, and the po- ry. Currently, HHA represents the Mer- tential returns for local investors are cury brand of Ford, Aston Martin, Mazda tremendous. We look forward to and MAN trucks. many years of stable economic growth While the company retains some busi- in our economy and intend to be a major ness interests in other fields, including IT participant in this period of Saudi Arabia’s and real estate, HHA has focused its ef- great economic transformation.” ● ‘The key to success is patience’ As the company’s chairman, how do you and we plan to continue this strategy into view the evolution of Haji Husein Alireza Co the future. This is one of the advantages a Ltd in Saudi Arabia? typical family company may have over many Our evolution has largely shadowed that publicly held institutions, where emphasis on of Saudi Arabia. quarterly results sometimes overwhelms the When we were established, we were a long-term prospects. The idea really is to diversified trading group as many family create a balance between the two imperatives. companies were in the early part of the 20th century. Where do you want the company to go in the While we had a continuous leadership future? presence in the automotive sector, Our market is growing at a we were also involved in other breakneck pace during this period fields as varied as real estate and of strong GDP growth. The food. As our economy grew, we opportunities are huge in Saudi decided to specialise in the Arabia for the next decade as the automotive field. This took place Saudi government’s plans for in the mid 1970s. We reduced infrastructure growth and interests in other fields and further investment in social services directed our investments on the multiply exponentially. motor trade. We also recognise the This strategy has paid off as we SHEIKH AMIN A opportunities that lie in other solidified our position as one of the ABULHASAN, business sectors. leading automotive car and truck Chairman of Haji We recently diversified again by distributors in Saudi Arabia. Husein Alireza buying a market-leading IT company, We continue to invest in our Co Ltd providing solutions in many sectors business and are very optimistic such as healthcare, industry, finance, about our future in the Saudi market. etc, and working closely with leading names such as HP, Cisco, Oracle and Intermec. Consistently ranked as one of the top 100 in The National Computer Systems Company Saudi Arabia, how has the company become (NATCOM) was established in 1978, which so successful? gives it a tremendous track record in its Patience and consistency have been the industry. hallmarks of our strategy. Generation after Saudi companies will have a big role to generation has followed a patient, growth- play in the country’s transformation and we oriented strategy. It is a steady reinvestment look forward to the opportunity to both in our business that I would credit most with contribute and benefit from this exciting keeping us at the forefront in our industry period in our nation’s development. ●

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JEDDAH Record results from a family business

place, the Naghi Group provides unpar- Yousuf MA Naghi & alleled penetration into Saudi markets for foreign enterprises. Various major Sons Group is a multinationals have chosen the group as their preferred partner in the king- Jeddah-based group dom and many leading companies en- that deals in the joy long-lasting relationships with the group. These include Boots, Hyundai, distribution, service, LG, Japan Tobacco, Mars, L’Oréal, Ricket Benckieser, Vichy and Timex, catering, among others. transportation and Management at Naghi believes that the Saudi consumer is evolving and manufacturing sectors expects better products and services. Therefore, the group strives to invest he Yousuf MA Naghi & Sons in improving customer services and Group is one of the most diver- offerings whereby market leadership sified conglomerates in Saudi is delivered and maintained for its T Arabia. Local businessman Mo- partners. hamed Abdulwahab Naghi laid the foun- In the automotive sector, Mohamed dations of the company in 1911 with Yousuf Naghi Motors (MYNM), which a family distribution business in Bal- brings some of the world’s finest mar- ad, Jeddah. ques to the kingdom and is the exclu- With the launch, not only did he start sive importer of BMW Group cars, an- the company’s enduring tradition of nounced a 19 per cent increase in sales mutually beneficial business relations for BMWs and Minis during the first and successful long-lasting partner- half of 2010, compared to the same pe- ships, but also its reputation for inno- riod in 2009. This remarkable achieve- vative marketing techniques, such as ment places the Saudi Arabian im- being the first in the kingdom to use porter among the top three best-per- company-branded delivery trucks to forming markets for the BMW Group improve name recognition. The multifaceted family group is headed by Mohamed, Yaser, Saleh and Ammar Naghi Middle East. This result followed MYNM posting a record 28 per cent Under the direction of his son, Yousuf sales growth in 2009, making it the MA Naghi, the business further ex- most successful year in the company’s panded and flourished; the Naghi name history. became renowned as one of the major With the change of transportation players in Saudi Arabia’s developing regulations for Hajj and Umrah pil- economy. grims in the late 1990s, along with Today, the multifaceted group is joint- the availability of a new generation of ly managed by the cost effective vehicles, the founder’s four grandchil- The group has a Yousuf MA Naghi & Sons dren, Mohamed, Yaser, Group saw the business po- Saleh and Ammar Naghi, reputation for tential for a well managed who head the company’s innovative bus company that could vast array of activities, offer a fleet of modern and which broadly span the marketing comfortable buses. It automotive, insurance, methods and it formed the Hafil Trans- financing, transportation portation Company with and distribution of fast was the first in an initial fleet of 800 bus- moving consumer goods the kingdom to es in 1998 and today Hafil (FMCG) sectors. has over 8,000 modern, Headquartered in Jed- use company- well-serviced vehicles, dah, the group operates branded trucks making it one of the through a comprehensive largest bus companies in network of offices, warehouses and the Gulf. showrooms in over 200 locations, with The group is also one of the compa- more than 12,000 employees. It also nies behind Saudi Arabia’s first airline has active companies in the United for pilgrims, Alwafeer Air. The airline Arab Emirates and Egypt. specialises in transporting pilgrims In line with general economic re- from countries with large Muslim pop- forms and developments taking place ulations to Saudi Arabia and plans to in the kingdom, the company is invest- hold an initial public offering (IPO) ing in the future growth and continu- within the next three years. ity of the family business. This invest- From cosmetics, catering and con- ment, mostly in people, infrastructure sumer goods to pharmaceuticals, fi- and technology, is focused on the de- nancial packages and foodstuff pro- velopment of operational tools and cor- duction, the Yousuf MA Naghi & Sons porate processes that add value to its Group has almost a century of experi- partners’ business operations and fa- ence in being the ideal trading part- cilitates business growth. ner in Saudi Arabia and providing in- As the business world is getting small- depth knowledge of how to tap the king- er and transforming into one market- dom’s varied markets. ●

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JEDDAH The key to taking brands nationwide with the best factories globally. In fact, there GCC market, for example Africa, the Mid- Binzagr Group manufactures and are only three places in the world where dle East, etc.” Dove soap is made: Germany, Jeddah and Binzagr now owns the Mazola brand of distributes a wide range of international the US. Our factory manufactures soaps cooking oils in the Middle East, covering consumer products across the kingdom (Dove, Lifebuoy and Lux), toothpastes around 25 countries, and has a factory that (Close-Up and Signal), shampoos manufactures Mazola oil, mayonnaise, mar- (Sunsilk, Dove and Clear), fabric garine, and shortening. “Our industrial ac- he Kingdom of Saudi Arabia is like of the country. It has pioneered the conditioners and tabletop cleaners tivities have become bigger than our trad- no other market. Its variety of peo- local manufacture of many products (JIF Kitchen Cleaner).” ing activities,” says Sheikh Abdullah. ple and cultures and its formidable that were previously imported, of- Through Binzagr Coro – a joint The company’s steady, deliberate approach Tgeography present distribution chal- ten in partnership with interna- venture with Coro Foods AS of to growth is comparable to that of the king- lenges, as well as potential rewards, that tional companies who were orig- Denmark – the group produces dom. “The arrival of oil caused a boom in should not be underestimated. Success in inally suppliers. For example, its fruit juices, diluted drinks the whole of Saudi Arabia, but it was not selling goods here demands a special un- relationship with Unilever and concentrated drinks, the sudden kind of growth. Progress took derstanding, organisation and experience stretches back 80 years. namely Suntop, Sunco- on a slow and steady pace over the years, of the country’s unique trading environ- “In the early 1930s, we la and Sunquick. “This which was fortunate because it protected the ment. Possessing such key qualities has led brought in soap from stage of industrialisa- country from the problems that arose from the Jeddah-based Binzagr Group to its un- Unilever, starch from tion opened up new op- sudden growth, such as what can be seen in rivalled position today as Saudi Arabia’s CPC, and cigarettes portunities for us to Dubai,” says Sheikh Abdullah. “To my mind, foremost specialist in retail distribution and from the British Amer- venture into manufac- it is more like the tale of the tortoise and consumer product marketing. ican Tobacco Company,” turing, on top of the the hare: slow and steady wins the race, with Long respected in Saudi Arabia as one says Sheikh Abdullah usual importing, a very clear aim in sight. This is part of the of the leading business families, the inter- Saeed Binzagr, president warehousing and dis- country’s overall strategy for sustained de- nationally distinguished House of Binza- of Binzagr Group. “In tribution services that velopment. That is why to this day, Saudi gr, or Beit Binzagr in Arabic, was estab- the 1970s, we opened a we offered,” says the Arabia continues to ride on this stable and lished more than 130 years ago to trade joint venture factory with president. “Our factories positive trend, while the growth in the oth- on the ancient spice route between Europe Unilever, making detergent come up with products that er countries in the region has declined. and the East and is now a diversified group powders and hand soap. are sold in and out of the “Through the grace of Allah, the wisdom of companies with global interests. Over the years, this facto- of HM King Abdullah and the sound poli- The group’s importation and distribution ry has grown into one of cies of SAMA, Saudi Arabia continues to of branded consumer goods has enabled the major Unilever facto- Sheikh Abdullah Saeed have a strong and steady development that some of the world’s leading brands to reach ries, with production ef- Binzagr, President of can sustain itself. It is a reliable venue for customers across the length and breadth ficiencies that compete Binzagr Group investment.” ● Makkah benefits from Alwan’s quality environmental care INTEGRATED environmental services Using the latest technologies and its form the core business of Alwan Trading highly experienced, qualified staff, the Company Ltd. Over the past three company runs a score of major projects. decades, the company has been meeting In March, its general cleaning contract for the environmental challenges thrown up by the holy city of Makkah began. For the the kingdom’s hectic urbanisation. next four to five years, the company’s Believing the nation’s beautification large fleet of world-class vehicles will en- could not be fully attained with- sure the cleanliness of an area of out cleanliness, Alwan Trading high religious and cultural im- Company set out to provide a portance. range of agricultural, cleaning, In September, the company construction and waste manage- also participated as a golden ment services in a kingdom with sponsor in the first Islamic com- cities that enjoy “the optimum petition for decorating Makkah, blend of nature and modernisa- which saw 22 countries compete tion, enriched by the best urban to adorn Makkah and turn the and environmental services”. sides of the holy city into an Is- Initially providing agricultural IBRAHEEM ALI lamic Art Museum by elite group services, which included cultiva- AMIR ALWAN of creative artists. Furthermore, tion, irrigation, landscaping and Chairman of the the company’s environmental plant maintenance, the business Board of Alwan concern led to its participation in has grown intensively to now in- Trading Company this year’s Meteorological and clude trading, contracting, oper- Earth International Day in April. ation and maintenance, urban cleaning, “Despite these achievements and high flower shops and organising events. ranking, our ever-standing goal is the con- “Our business is an integral part of our tinuous enhancement of our business and world. Accordingly, we are keen to culti- the commitment to provide unparallel ser- vate, construct, maintain the beauty, vices to our country and valued clients cleanness and hygiene of our environment; with the highest standards,” says the [we are] proud of our credibility and to chairman. “Today, after 35 years of fore- fulfill our commitments in line with our running, excellence and trust, we are deep-rooted heritage and customs,” says proud of our growth. We vow to work to- Ibraheem Ali Amir Alwan, chairman of gether for incessant pursuit of sophistica- the board of Alwan Trading Company. tion and excellence.” ●

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JEDDAH AK Saeed Group set to further diversify at home and abroad

Saudi Snack Food Co Ltd and Asia. Indeed, between 70 and 80 Saudi Snack Foods is a PepsiCo joint per cent of the turnover is for export Since its inception, the AK Saeed Group venture and is Saudi Arabia’s number one markets. salty snack company, with an approximate has built close and enduring relationships with 45 per cent share of the Saudi market. National Factory for major international companies Saudi Snack Food manufactures and dis- Can Ends Ltd tributes a range of well-known brands in Also in line with the beverage indus- the kingdom and throughout the Gulf, in- try is the National Factory for Can Ends cluding Frito-Lay crisps, Cheetos cheese Limited, or Nafcel, manufacturer of alu- he AK Saeed Group and its range Jeddah Foam Laminates Factory puffs, Quavers and Tasali potato chips. minium easy-open can ends. Founded in of market leading subsidiaries span The group’s main business line is the 1985, the project was conceived as a a multitude of sectors across the manufacturing of high-quality polyurethane AK Saeed Perfume & joint venture with Saudi partners and Tcountry. Although the manufactur- foam and spring mattresses at the Jeddah Cosmetics Factory CarnaudMetalbox, the European divi- ing industry is the largest contributor to the Foam Laminates Factory. Established in Importer and distributor of genuine de- sion of Crown Cork and Seal, USA, the conglomerate’s activities, the Jeddah-based 1976, the factory’s annual production ca- signer fragrances, AK Saeed Perfume sup- world’s largest packaging manufacturer. group is involved in an ever-expanding range pacity runs at over 400,000 mattresses. Sold plies independent retail chemists, per- Nafcel’s market is worldwide and it has of operations, from snack foods, packag- under the popular brand Soft Dreams, the fumeries, chains and department stores. an annual capacity of more than 5 billion ing and mattresses to trade, construction, mattresses are marketed in Yemen, Kuwait The company’s factory also manufactures units of various sizes, shapes, types and perfumes and pharmaceuticals. The multi- and Bahrain, in addition to Saudi Arabia. perfumes and cosmetics. decorations. faceted conglomerate also owns a number of land properties in the Kingdom of Sau- AK Saeed Real Estate di Arabia as well as in Lebanon. The group’s real estate division is devel- The AK Saeed Group has invested across oping a large multi-purpose commercial the board in advanced information technol- centre in the heart of Jeddah’s business ogy and manufacturing methods to assist district. Dubbed Chinatown Shopping in producing more sophisticated systems of Centre, it is a colourful row of shops all product design, manufacturing, marketing, built in a Chinese style. distribution and after-sales services. The company is particularly keen to upgrade and Pizza Hut Lebanon extend product ranges and services, strength- AK Saeed successfully negotiated and ening its manufacturing base and increas- set up a joint venture with Pizza Hut ing marketing activities across the region. for the development of their chain of The decision to focus on new avenues of restaurants in Lebanon, launching the opportunity has led to the creation of an in- first outlet in 1994, opening seven dependent advisory board, comprising the restaurants in its first year of operations AK Saeed Group and a team of indepen- alone, and having over 18 restaurants dent experts. The new board monitors in- at the moment. ternational business environments and trends, expediting the rapid implementa- SHEIKH ABDUL KHALIQ SAEED, Partnerships and the future tion of new product initiatives. The adviso- MOHAMMED A K SAEED, In constantly seeking to develop new Chairman and CEO of ry team meets regularly for strategic re- Vice President for Finance & Administration business in the kingdom, the AK Saeed AK Saeed Group views and provides valuable guidance and AK Saeed Group Group has built up a strong network of direction to the whole group, enabling it to global partnerships, seeing such collab- identify and implement better management orations as key to enabling the mutual- and operational practices. ly beneficial transfer of knowledge and One of the key assets of AK Saeed Group helping forge relationships between oth- is its workforce. The company’s dedication er nations and Saudi Arabia. to its employees is demonstrated by its com- Considered one of the first industrial mitment to ongoing training and incentive supporting entities in the kingdom, the programmes for staff, designed to create group intends to build several industri- an exciting, dynamic corporate culture that AK Saeed Pharmaceutical Jebel Ali Container al projects within the next few years at taps their full potential and encourages the Division Glass Factory an amount of approximately 3 billion self development of everyone working at the The company’s pharmaceutical division AK Saeed Group’s second largest com- Saudi riyals, or £506 million. group. works hard to source the best available pany is Jebel Ali Container Glass Fac- The AK Saeed Group is managed by Consistently ranking among Saudi Ara- pharmaceutical products from well-reput- tory, a state-of-the-art factory based in a professional and experienced staff, bia’s top 100 firms, the AK Saeed Group ed pharmaceutical companies who pro- Dubai’s Jebel Ali Free Zone that pro- headed by Sheikh Abdul Khaliq Saeed, presides over several multi-million dollar duce US FDA and EU approved products. duces diamond-quality glass for major owner and chairman of the board of di- companies in a diverse array of sectors. From a warehouse in Jeddah, AK Saeed’s international clients including Pepsi- rectors. Also on the board are Mr The group’s subsidiary companies are mar- focus market is government tenders, lo- Cola, Coca-Cola, Canada Dry and UFC- Saeed’s sons, Mahmood, Jamal, Ahmed ket leaders in several key sectors of the cal purchases by public and private hos- Heinz. Currently, this factory supplies and Mohammed. kingdom’s economy and are well estab- pitals, chemists, healthcare facilities and all Arabian Gulf countries, as well as lished in many Gulf markets. ● NGOs. the Far East, the Middle East, Africa www.aksaeedgroup.net

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JEDDAH Finance A regional financial centre with Islamic banking talent

audi Arabia has a strong, growing to the homeowner at a higher price. The financial sector. The city of Jed- homeowner would then be allowed live in dah, with its busy port, increasing- the house while he pays for it in instalments. Sly important industrial activity and To give an indication of the importance home base for major trading companies, is of the Islamic banking market in Saudi also gaining ground as a regional financial Arabia, close to 98 per cent of all personal centre. financing in the country today makes use Jeddah is home to the National Commer- of Sharia-compliant products and two- cial Bank, the first bank founded in Saudi thirds of corporate finance uses the prod- Arabia and the biggest bank by assets ucts. The total amount of assets in Islamic in the Arab world. The city banking products here could also serves as a strategic base Almost 98 per well exceed $100 billion for various leading Sharia- (£62.7 billion). compliant private wealth cent of personal That figure will surely management companies. financing and grow this year, according The importance of Islamic to Mohammed Al Jasser, The AAA-rated IDB fosters economic development and social progress in its member countries banking products in Saudi two-thirds of chief of the Saudi Arabian Arabia cannot be understat- corporate Monetary Agency. The out through to the end of 2013 and so will IDB’s president, Dr Ahmad Mohamed ed. The Koran forbids the finance use country’s banks are strong continue to spur growth. Ali, who has been in charge of the bank since charging or paying of inter- and fully capable of meet- The most important international finan- its founding, and his multinational staff est and prohibits investing in Sharia-compliant ing the more stringent re- cial institution in the city is the Islamic De- oversee financing for endeavours ranging certain industries considered products serve rules set by the Basel velopment Bank, or IDB. The bank was from giant infrastructure projects to small, to be contrary to Islam’s prin- Committee on Banking Su- founded in 1973 by the first gathering of private-sector businesses from the bank’s ciples, which include the production and pervision, he recently said. finance ministers of the Organisation of the 21-storey tower in the centre of Jeddah. trading of alcohol and pork, as well as Steady economic growth will help boost Islamic Conference and it began operations The bank started out with 22 member gambling. banking activity. Saudi Arabia’s economy two years later, in 1975. countries, a figure that has now risen to Sharia-compliant banking makes use of was set to register growth of around 3.8 The IDB is a development bank whose include 56 members from Africa, Asia, profit sharing, joint ventures and leasing to per cent for 2010, Mr Al Jasser said in Sep- goal is to promote economic development Europe and Latin America. IDB’s autho- provide banking services that are compat- tember, helped by heavy government spend- and social progress in the countries that are rised capital has risen to $44 billion and ible with Islam. For example, the Sharia- ing on transportation infrastructure, schools members, which include Saudi Arabia, its reputation for solid management and compliant version of a mortgage would have and the military. The $400 billion invest- Egypt, Turkey, Kuwait, the United Arab investing has earned it a AAA rating from the bank purchase a house and then sell it ment programme is scheduled to be spread Emirates, Libya and Indonesia. international ratings agencies. ● Gain motivation and information at the Chamber of Commerce

THE JEDDAH Chamber of Com- most prominent being the Jeddah Eco- That unit is tasked with working to re- project to modernise the JCCI’s headquar- merce and Industry (JCCI) was nomic Forum. The forum is organised by duce government red tape, promoting ters, installing intelligent technology and founded in 1946, making it the Kingdom the Jeddah Marketing Board, a depart- greater use of training and educational making it a smart building. The goal is to of Saudi Arabia’s oldest such group. The ment of the chamber, in association with efforts and helping set priorities based cut the use of power and reduce expenses, chamber’s goal is straightforward: to Duke Corporation Education as an acad- on member surveys, among other things. increase the reliability of its systems and “be the major driver and motivator for emic partner. The event has become the Another unit is the Business Sectors become a model for the city’s businesses in economic growth and business sector de- region’s preeminent think Support Division, which en- the application of these technologies. velopment in Jeddah”. tank for economic and so- courages the use of best The chamber also supports various The JCCI is managed by its 21-mem- cial issues. practices, disseminates rel- specialised centres with different goals. ber board of directors, which represents Held every winter evant information and in The Khadija Bint Khowailid Business the city’s different industries and sectors. since 1999, the forum other ways provides the Women Centre is intended to encourage The board’s chairman, Sheikh Saleh has hosted many fa- kind of skilled support and support the development of women Kamel, and the board are diligent in pro- mous and respected that can best help the in the national economy, while the Jed- moting their city’s, and the country’s, politicians, business- trade, industrial, pro- dah Social Responsibility Centre pro- economic growth and in helping Jed- people and academics. fessional, real estate, motes the concept of social responsibility dah’s businesses expand and develop. Participants have includ- service, environment in business in accordance with interna- “The chamber is working in a constant ed former US presidents and heath sectors. tional standards. quest to develop its services in the eco- Bill Clinton and George The JCCI’s IT and In- The Jeddah Business Development Cen- nomic fields and activities of its mem- H W Bush; Sir Richard formation Sector has the vi- tre was set up to be the main supporting bers in order to meet their future expec- Branson, founder of the Virgin tal mission of spurring the and motivating organisation for small tations,” Mr Kamel says on the group’s Group Ltd; and Roger B Porter, IBM adoption and use of the latest information businesses in the city. Among its goals are website. “The chamber’s concerns for its Professor at the John F Kennedy School technology, with the goal of making the encouraging Saudi youth to start busi- members’ interests are based on an ad- of Government. This year’s forum will be city’s businesses as efficient and well con- nesses, determine promising areas for vanced vision that enables it to provide held from March 19 to 22. nected as possible and making Jeddah the successful business start-ups and generally added value services.” In addition to the marketing board, favoured destination for businesses coming giving much-needed support and backing The group carries out its mission in the JCCI has various other units, includ- to Saudi Arabia. to entrepreneurs looking to contribute to many different ways, with one of the ing the Business and Committees Sector. The IT Sector is also involved in a the city’s economic development. ●

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JEDDAH NCB banking on growth

Middle East and North Africa region. It The National Commercial Bank, the has a leading participation in almost all of the major projects now under way in the oldest and largest lender in the country, sees kingdom. However, Mr AlGhalib sees constraints on profits, assets, deposits and loans continue to rise the lending capacity as a challenge facing Saudi Arabia’s financial sector as a whole key element in the continued suc- products through a range of channels, as due to the underdevelopment of the country’s cess of Saudi Arabian banks is the well as broadening scope through pioneer- capital markets, which may threaten the con- fact that “banks stick to banking”, ing new products and leading in new segments tinued bank financing of large-scale projects. Aaccording to AlSharif Khalid Al- and geographic expansion. “Diversifying the funding layers is impor- Ghalib, senior executive vice president and Consequently, NCB has significantly tant for us to continue to grow. Because of head of the corporate banking sector at the strengthened its Islamic banking activities, a number of reasons such as legal lending nation’s oldest and largest lender by assets, converting all of its retail operations into limits, some mega projects – particularly in The National Commercial Bank (NCB). Sharia-compliant products and indeed pio- the area of infrastructure – require financial “I am quite proud to say that our banking neering several of these tools. The creation support that is beyond the capabilities of the and financial sector is very conservative, well- of NCB Capital as a spin-off of the bank’s local banks,” he explains. “We need to have regulated, resilient and extremely profitable. investment arm has also been a significant multiple layers of funding. The local banks Our performance over the last couple of years move, boosting NCB’s position as the lead- ‘NCB has grown its loans are solid, but we have to manage risk in the is a testimony to that fact. We are diversify- ing asset manager in the kingdom, with a portfolio considerably in right way. That is why it is important to have ing the growth of our banking activities and 30 per cent share of the mutual fund mar- other sources of funding.” are proud to be able to support the kingdom’s ket. This development has gone hand in hand 2011; this is testimony to Progress is being made. Last year, the cap- economic agenda,” says Mr AlGhalib. with an increased focus on risk management our ongoing commitment ital market authorities approved the issuance Established more than half a century ago, that has led to NCB’s compliance with both of sukuk and bonds, introducing a flexible state-owned NCB has become one of the Arab Basel I and Basel II standards. to the economy’ funding mix for corporate customers. How- world’s largest financial institutions, with In addition, NCB has introduced a host of AlSharif Khalid AlGhalib, Senior Executive ever, corporate Saudi Arabia also needs bet- more than 2.2 million customers and over leading services in its retail and corporate Vice President, Head of the Corporate Banking ter access to capital markets, says Mr Al- 5,000 employees in Saudi Arabia. Today, it divisions and now offers a selection of alter- Sector, NCB Ghalib, and this will mean stronger corpo- manages a third of the kingdom’s total as- native distribution channels. All NCB’s trans- rate governance, even in family businesses. sets and with 282 branches, it boasts the sec- actions can now be completed electronical- having been conservative in areas such as Despite this challenge, Mr AlGhalib says ond-largest retail network in the country. ly thanks to its AlAhli Online system. e-Corp, asset impairment and NPL coverage,” says that the country’s financial sector is robust The solidity of the banking sector to which the bank’s corporate portal, was upgraded Mr AlGhalib, adding that NCB enjoys strong and competitive. “The Saudi Arabian bank- NCB belongs is due in large part, according to enable the distribution of the government capital adequacy ratios. “NCB has trans- ing and financial sector is extremely com- to Mr AlGhalib, to the prudent oversight of payroll, enabling the government’s transition formed from a strong local commercial bank petitive. You have to aspire to be one of the the country’s central bank. “The Saudi Ara- towards e-government. to a leading regional financial services group.” best banks in a local, regional and/or glob- bian Monetary Agency, SAMA, has played NCB has also launched a regional expan- al context, continuously develop your skills a significant role in stabilising the banking sion strategy, acquiring a 64 per cent stake Diversifying sources of liquidity and capabilities. You have to invest in your system. SAMA’s sound stewardship has helped in Türkiye Finans Katilim Bankasi in 2008. Its success in corporate banking has led abilities to be competitive. The environment the country weather the economic storms over Since then, the leading Turkish bank has to a “substantial” increase in NCB’s asset that we operate in, and the products and ser- the years – from the 1980s to the 1990s, as performed ahead of forecasts despite the base, says Mr AlGhalib. According to a re- vices we offer our customers are leading well as the most recent 2008/09 downturn,” global economic downturn. port issued by Dealogic during the first nine edge in the region. You have to be a world- he says. “Saudi Arabian banks continue to In brief, “NCB has enjoyed robust growth months of 2010, the bank was first in KSA class banker to operate in the kingdom,” he be highly resilient. We rely on core banking over the years, remaining profitable despite and second in project finance within the observes. ● activities. Despite the challenging global fi- nancial climate, Saudi Arabian banks have sufficient non-performing loan [NPL] cov- erage – well over 100 per cent – and ample Jeddah-based NCB is liquidity. You just have to look at the num- the region’s number bers. From 2008 to 2009, the majority of one institution for the banks reported profits. The country’s 12 asset management and major banks generated a total profit of SR project finance 26.53 billion [£4.45 billion] in 2010, up 1.6 per cent on 2009.” NCB’s own profits reached $1.25 billion (£786 million) last year, representing a 16.9 per cent increase over 2009. Total assets at year end 2010 were $75 billion, up 9.7 per cent from the previous year, while loans and advances had grown by 12 per cent over 2009 and customer deposits by 13.1 per cent to $61 billion.

A decade of growth After a change in NCB’s ownership struc- ture in 1999 and the introduction of new man- agement, the lender underwent a period of new growth with an increased emphasis on corporate governance and transparency that has significantly improved performance. Ex- pansion efforts over the past decade have been accelerated by a three-tiered strategy fo- cused on growing core business with im- proved service quality and providing tailored

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JEDDAH Education New facilities, wider access and foreign exchanges abound

uge amounts of money are being Saudi Arabia’s latest five-year devel- pumped into the education sys- opment plan earmarks $200 billion tem as Saudi Arabia moves to- (£125.5 billion) to be spent on expand- Hwards realising its dream of be- ing access to schools and universities coming a knowledge-based economy. Thou- and substantially increasing vocational sands of new schools are being built and training. The number of public universi- the higher education sector has seen rapid ties has already increased from eight to expansion, particularly with the opening 24. Fourteen university research centres The government wants the number of university students to almost double to 1.7 million by 2014 of new private universities and colleges. have been opened and there are plans for Jeddah has 849 public and private 11 more. Considerable advances have been made creasingly internationalised as relation- schools for male students and 1,179 for The government wants to see the num- in women’s education. Women now out- ships are developed with foreign educa- females. It is also home to numerous uni- ber of university students almost doubled number men in higher education, making tional institutions in the United States, versities, colleges and training institu- from 860,000 to 1.7 million by 2014. up 58 per cent of the total student popu- Europe and China, through cooperation tions, ranging from the long established Emphasis is being placed on technical, lation at the universities. in research and the exchange of academ- institutions like King Abdulaziz Univer- engineering, science and medical pro- The construction of a new campus in ic staff and students. More than 90,000 sity to the new King Abdullah University grammes and on subjects such as admin- Riyadh will make Princess Noura Bint Saudis have been sent to pursue gradu- for Science and Technology, which opened istration and computer science that are Abdulrahman University the world’s largest ate studies abroad under the King Abdul- in 2009. The latter, a 6.5 million square relevant to the job market. centre of higher education for women, able lah Scholarship Programme. foot campus on a 9,000 acre site along In addition to universities, new commu- to cater for up to 40,000 students. At the same time, Saudi universities are the Red Sea, is a world-class graduate- nity colleges and vocational institutions At the King Abdullah University for gaining a reputation for quality, with in- level institution designed to drive innova- are also being opened. The development Science and Technology men and women stitutions like King Saud University, King tion in science and technology and to sup- plan calls for the construction of 25 tech- share classrooms at the kingdom’s first Fahd University and Jeddah’s King Abdu- port world-class research in areas such nology schools, 28 technical institutes co-education institution. laziz University earning very respectable as energy and the environment. and 50 industrial training institutes. The education system is becoming in- positions in world university rankings. ● Empowering women through education

the kingdom to achieve institutional ac- creditation from a US accrediting body,” Dar Al-Hekma is says Dr Al-Qurashi. Yet DAH’s focus transcends acade- an internationally mics; it also engages in a vigorous, multi-pronged approach to enhance the accredited private, entire educational experience for its non-profit women’s students. “Our programmes include opportu- college that prepares nities for student enrichment through curricular and extra-curricular activ- its students for a ities, addressing the five dimensions of greater role in society personal development: the intellectual, spiritual, social physical and self-development aspects,” wing to greater support from explains Dr Al-Qurashi. the King for the advancement of DAH’s accomplishments have women and the expansion of ed- not gone unnoticed. Besides Oucational opportunities for all strong partnerships and collab- in the kingdom, in the past decade the DAH is committed to the enhancement of creativity and independent thinking orations with universities number of private, non-profit colleges from around the US and and universities in Saudi Arabia has in- and colleges – three of which are exclu- ly pleased with the aca- Europe, the students creased rapidly. sively for women – were launched in demic advancement and faculty at the Although segregated on the basis of Saudi Arabia. Among the very first was the college has women’s college have gender, the provision of parallel facili- Dar Al-Hekma, an excellent represen- achieved. been honoured by ties and services has resulted in im- tative of a women-only college in Jed- “In 2008, we re- King Abdullah bin Ab- proved enrolment for women in higher dah. ceived international dul Aziz Al Saud, Cus- education institutions in the kingdom. Dr Suhair Hassan Al-Qurashi, presi- accreditation from todian of the Two Holy Indeed, more females are enrolled in dent of Dar Al-Hekma, takes pride in see- the Accrediting Coun- Mosques, Princess Al- primary, secondary and tertiary levels ing an increasing number of young women cil of Independent Jowhara bint Ibrahim than ever before and a truly noteworthy matriculate every year: in 1999 there Colleges and Schools Al-Ibrahim (wife of King statistic is that women now outnumber were just 120 students enrolled. Ten (ACICS), making us Fahd) and US Secre- men in higher education. years later, there were 1,200 students the first higher edu- DR SUHAIR HASSAN AL-QURASHI, tary of State Hillary Beginning in 1999, 27 universities enrolled. The president is also extreme- cation institution in President of Dar Al-Hekma College Rodham Clinton. ●

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JEDDAH Health New healthcare needs spark private sector involvement

he epicentre of advanced medicine a changing demographic profile – as well and healthcare in the region, Saudi as new health issues stemming from a Arabia boasts an excellent public more sedentary lifestyle, including dia- Thealthcare system, which was allot- betes, obesity, and cardio-vascular and ted nearly $14 billion (£8.8 billion) in the respiratory diseases. Whilst new medical 2009 budget. Free services are extended not colleges have been established to broad- only to citizens, but also to hajjis, Umrah en the scope of medical knowledge and performers and visitors. Nevertheless, there capabilities in the region, the government exists a solid private sector that has expe- is also partnering with international firms Tamer Group is involved in innovative research products for the whole region rienced a recent boom, thanks to the gov- to develop new technology. ernment’s promotion of privatisation and a As the largest pharmaceutical and new medical insurance law. healthcare products and services market Jeddah has caught the eye of investors in the Gulf region (with strengthened in- Trust and experience in view of the fact that the high population tellectual property laws to boot), KSA density and the huge annual inflows of offers excellent breeding grounds for tourists are taxing government facilities. medical innovation and possibilities for Even though more than one-third of state- domestic manufacturing. in healthcare owned hospitals and over 40 per cent of Interested parties can seek opportunities hospital beds are located in the Makkah at some of Jeddah’s upcoming fairs and con- ten manufacturing plants – producing Mukarramah region, of the total health ventions, such as the third annual Kingdom primarily generic drugs – Mr Tamer says facilities here, between 73 and 93 per cent Healthcare Expansion and Investment Tamer Group is the market has opportunity to grow and are privately owned. Summit next December, and the Saudi the kingdom’s imports account for over 80 per cent of Changing times have brought to Saudi Healthcare trade show at the Exhibition consumption. Arabia a population surge – and with this, and Convention Centre on May 15-17. ● oldest and most Through its manufacturing arm, the Saudi Arabian Japanese Pharmaceutical trusted name in the Company (SAJA), the Tamer Group makes healthcare industry its contribution to innovative research products for the Saudi, the GCC and the MENA markets. hen Dr Mohammed Said The group’s other business units are Tamer opened the first phar- F M Tamer & Co, which imports, markets, macy in Saudi Arabia back in promotes and distributes pharmaceuticals, W1922, he probably didn’t medical supplies and consumer goods; imagine how lasting his footprint was to Tamer Industries Co, the company that in- be. His sons, Farouk and Maamoun grew vests in industrial projects related to the the company into a leading distributor of healthcare and consumer goods sectors pharmaceuticals, medical supplies and con- (and is also a majority shareholder in SA- sumer goods. Today, the Tamer Group is JA); and Tamer Investment Co, which in- under third-generation management and has vests in new enterprises in the healthcare, diversified even further, investing in health- trading, finance and real estate sectors. care projects and distribution joint ven- Tamer Investment Co is also shareholder tures, etc. in Jeddah’s International Medical Center, Synonymous with health in KSA, the Arabio (producer of vaccines and sera), Tamer Group represents some of the largest, Gulf General Insurance Co, United Gulf most prestigious international health, nu- Healthcare (a chain of several dozen phar- trition, wellness, confectionary, cosmetics macies) and Tamer Teleradiology. and luxury goods brands – an endeavour This could be just the tip of the iceberg that has been quite successful. if experts are right about the Saudi health- “Our achievements in the last two years care sector growing three times more than have brought outstanding results” explains the West, due to increased health aware- Ayman M Tamer, chairman and managing ness, overall healthcare expenditure and partner. “We have had double-digit growth health insurance coverage, among other rea- and we have strengthened the business. We sons. And to keep up, Mr Tamer says that have consolidated with some of our key new partnerships are more than welcome. principals adding more businesses with “We have an excellent community of mergers and acquisitions. Many of our very good professionals and we wish to co- partners today are leaders in their fields operate with any local or international of categories.” groups, even with our competitors, to im- Tamer Group is affiliated with several prove the quality of life for patients in the multinational companies such as Novartis, Saudi Arabian community and its neigh- Roche Diagnostics, Pfizer, Merck, Johnson bours,” he comments. “We welcome any & Johnson, P&G, Nestle and Cadbury. investment or partnerships with UK firms. Currently, the Saudi Arabian pharma- It’s important, though, that British in- ceutical market alone stands at about vestors consider Saudi Arabia as a long- £2.22 billion and although there are over term strategic investment.” ●

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JEDDAH Visitors to Jeddah enjoy a host of sites, Tourism activities and world-class services t should come as no surprise that the largest suites in the region. The city’s priv- Whilst staying in Jeddah, pilgrims – and international commercial and cultural port city that has for over 1,000 ileged location affords residents and visitors or hajjis – can also take advantage of events are hosted at the Jeddah Centre years served as the main gateway to access to miles of golden sandy beaches and myriad opportunities for family entertain- for Forums & Events, a state-of-the-art Ithe holy cities of Makkah and Med- some of the world’s most spectacular coral ment at the city’s numerous shopping facility that comprises a modern conference ina is also Saudi Arabia’s most liberal reefs, renowned as one of the best diving sites centres, recreational parks and leisure hall, a well-furnished business centre, var- and cosmopolitan city. of the Red Sea. The city’s long Corniche of- villages. ious cafeterias and a mosque. Jeddah is home to a wide range of restau- fers yet another pleasurable way to enjoy Moreover, having built up such a strong Such a supportive and stimulating en- rants, which serve up a delightful blend of the seaside and is home to an open-air art tourism industry, Jeddah has become an vironment makes Jeddah an ideal desti- Saudi and international cuisine, as well as gallery and King Fahd’s Fountain, the high- attractive, bustling business centre. nation for investment in tourism facilities hotels and resorts that offer some of the est fountain in the world. Throughout the year a variety of national and support services. ● Fakieh’s top five holiday developments and is particularly renowned for its seafood passing through the immersion room, man- and amazing light and sound effects. The dishes and Middle Eastern barbecued fare. grove zone and coral reef zone. The feeling jungle is inside a two-storey entertainment Hospitality In addition to the menu, the distinctive ar- of adventure is further enhanced by explor- building in the centre of the park, which al- comes with an chitectural design and enviable seafront views ing the Dhow Wreck area in the middle of so holds a popular ice rink. also distinguish the restaurant from other the route.High-tech educational halls are al- Fakieh’s Al Nawras Island Resort, which innovative spirit at eateries. Located at the end of a pier over- so on site providing useful information about is managed by the Mövenpick group, is lo- the five tourism looking Obhur Creek, Al Segala offers din- the wonders and secrets of the marine world. cated on a private island off the North Cor- ers a retreat from the city traffic, set in lux- The largest amusement complex in the niche Road. Close to the famous Tahlia developments urious wooden décor resembling a ship’s deck. kingdom, Al Shalal Theme Park has some- shopping district, it is just 15 minutes by car Among the main attractions at Fakieh’s thing for everyone. It boasts the largest to the city centre and ten minutes to the air- created in Jeddah family-friendly Sail Island Aqua Park are the double-looped roller coaster in the Asian port. Guests at each of the 100 studios and by the Fakieh swimming pools designed specifically with continent, seven restaurants, a variety of villas at the gated community can enjoy kids in mind, which feature slides, water entertainment areas and an Amazon jun- their own swimming pool and garden, which Group fountains and safe play areas. An arcade gle, complete with life-sized animal figures offer privacy and magnificent sea views. ● centre keeps gaming enthusiasts entertained, while the spacious ballroom facility can be he diversified portfolio of the Fakieh used for social events such as weddings, con- Hospitality and Leisure Group offers ferences and private parties. a one-stop catalogue of activities and The group’s Sea Wonders Aquarium on Taccommodation to choose from for Jeddah’s Corniche Road enables visitors to the growing number of tourists visiting Jed- take a captivating and educational journey dah. Established in 1998, the company has into the deep. The unique $40 million (£25 created five major tourism developments in million) project contains four integrated Jeddah that are proving to be increasingly zones: the main aquarium building, a dol- popular with families holidaying here, espe- phinarium complete with 490-seat stadium, cially after the Hajj and during Eid. Fakieh, an outdoor plaza and restaurant, and a nevertheless, has designed each project to fea- multi-storey car park. ture a range of attractions for everyone. The aquarium leads visitors right into the The nautical-themed Al Segala in South heart of marine life. The amazing sensation Obhur is one of the city’s finest restaurants of gradually diving into the sea is created by

Al Namras Island Resort is an islet-style retreat and features the prestigious conch-shaped Al Wadaa restaurant

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