Saudi Arabia’s membership of the World Trade Organization (WTO) will mean new and increased business opportunities for local investors both in the domestic and international markets, according to an industry leader.
“Additionally, companies will improve their product offerings and new doors will open for them to enable them to offer their products globally,” Dr. Mamdouh F. Ghazzawi, managing director of EIRAD Trading and Contracting Co. Ltd., authorized service contractor for United Parcel Service (UPS), Saudi Arabia, said in an interview.
Following are excerpts from the interview:
Q. What business impacts do you see with the initiation of Saudi Arabia into the WTO in the distribution sector?
A. With the entry of Saudi Arabia to the WTO, new business opportunities will open in both domestic and international markets. The introduction of new products and companies that are available worldwide to the Saudi market will also augment the existing businesses to improve and provide more products and services to the buying public, be they citizens or residents. The activities of some of these companies will need the services of a distribution network. This is where the expertise of the local and foreign distribution or courier companies in the Kingdom will come in place. The necessary logistic start-up and product delivery will require fast and secure way in receiving their goods on time, thus requiring the continuous service of the distribution companies and their vast network. Presently, distribution companies are not only offering international and domestic package handling, but have also broadened their services to mailroom management, logistics, freight forwarding, warehousing and consulting solutions. New companies can avail these services and this will definitely be an added advantage on their part. The new company will not need to familiarize itself with a new territory for their products, as the existing distribution companies are willing to do the work for them and can be tailored according to the activities of the new company. Likewise, existing business establishments in Saudi Arabia will benefit from the WTO membership, as these companies will improve their product offerings and new doors will open so that these entities can also offer their products globally. Again, this is where the distribution companies will provide a service for their international product and package delivery. Generally, it will not only be the distribution sector that will gain from Saudi Arabia’s WTO membership. It will, in fact, be a concentrated effort on the part of new and existing businesses to work hand in hand and provide products to the public, be they local or international. With this effort, all will benefit including the distribution sector.
Q. What do you think are your customers’ major priorities and expectations at the moment?
A. Our customers need visibility for their goods and the assurances that information pertaining to their elaborate network of buyers and sellers is managed with ease and security. EIRAD is in a unique position to meet these demands. With the constant advancements in technology, and the rapid growth of emerging markets worldwide, customers are always looking for new opportunities to update their products and support systems. We must help our customers to maximize their domestic and international expansion of trading opportunities. Today, EIRAD offers services to a majority of the Top 100 companies in Saudi Arabia. I think this trust, that the big corporations have reposed in us, shows that they are satisfied with our service.
Also, last April, EIRAD Trading & Contracting Co. Ltd, authorized service contractor of UPS, was awarded best courier company of the year in Saudi Arabia for 2005. With humility, we can also say that our customers are pleased and contented, as this award was granted to us.
Q. You have had remarkable Saudization growth in your workforce. How has this been achieved? How do you intend to improve this further?
A. EIRAD’s Saudization success has been due to the strategic in-house training and development of our employees. We place great emphasis on seeing that employees receive proper training and promotion from within. With the enthusiasm shown by our employees, we reward their efforts through international training and promotion to various key positions of the company. By adhering and adopting this continuous process of human resource development, we have had significant growth rate in our Saudi national workforce. EIRAD has long-term contracts with many of its valued customers and leading groups in manufacturing, construction, food services, energy, banking, finance and telecommunications. Saudi nationals are a significant proportion of the workforce in charge of these contracts. Companies who know we are employing Saudis have appreciated our effort and continue to use our service. We intend to evolve this procedure and look for other ways until we have achieved our Saudization goal.
Q. What are your future plans for expanding your business in the Kingdom?
A. EIRAD plans to continue growing and expanding its network across Saudi Arabia. We will accomplish this by offering various services from documents to heavy freight delivery, mailroom and logistics management to international finance that is unique in the industry. We will seek to improve our technological standards and always look for improvement in our service by anticipating the market needs that will contribute to the success of our customers, be they small or big companies.
EIRAD Trading & Contracting Co. Ltd has been the authorized service contractor of United Parcel Service (UPS) since 1997 and UPS Supply Chain Solution (UPS-SCS) since 2003. The company offers worldwide and domestic express delivery, road freight service, mailroom management, logistics freight, warehousing, distribution and consulting solutions.
EIRAD Trading & Contracting Co. Ltd. is part of the EIRAD Group of Companies, which includes TRW Systems Arabia (TSA) a joint venture with Northrop Grumman of USA, and EIRAD Travel and Tourism, which serves as Pakistan International Airlines (PIA) agent in the Kingdom.
UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the flow of goods, information and funds. Headquartered in the US city of Atlanta, UPS services more than 200 countries and territories worldwide. UPS stock trades on the New York Stock Exchange (UPS) and the company can be found on the web at www.ups.com.