JEDDAH, 31 January 2008 — Saudi Arabia’s investment climate draws international intrest, particularly after its accession to the World Trade Organization (WTO) two years ago, Osama Abdul Rahman, Fayrouz International Soft Drinks’ country manager for Saudi Arabia, said in an interview on Tuesday. The foreign investment regulations in the Kingdom have witnessed significant developments and remarkable qualitative improvements since then, he said.

“In fact, thanks to the ongoing economic boom, various sectors of the economy are attracting huge investments, both overseas and domestic,” he said.

With the booming economy and increased cash flow, the Saudi purchasing power is stronger than ever, he said. “The high purchasing power in any market means that such a market is strong and healthy. Therefore, it offers any corporate entity the opportunity to avail of the enormous investment potential as consumer needs normally grow in line with the growth of the purchasing power. This positive feature of the Saudi market places it among our most promising global markets,” he added.

Referring to the beverage market, he said: “The size of the Saudi beverage market totals 30 million hectoliters (each hectoliter = 100 liters) or 3 billion liters, with a total value of SR7 billion, of which carbonated drinks account for SR3.3 billion. The per capita consumption in Saudi Arabia approximates 14 cans of carbonated drinks per month which is the highest consumption rate at the regional level.”

“Fayrouz has elected to introduce itself as a carbonated drink that uses barley. Thus, products are manufactured by the typical process applied in the manufacturing of carbonated drinks, yet with the addition of barley extracts. The medium of barley extracts is obtained following 12 stages of filtration. The processing of Fayrouz does not include any fermentation, thus, rendering a totally alcohol-free end product,” Abdul Rahman explained.

Asked about the company’s future plans, he said: “Our product development policy leans on thorough studies of the consumer needs, based on extensive ongoing marketing research work conducted by the company’s marketing department. In other words, our marketing department continually explores consumer impressions, and listens to the suggestions that reflect consumer inclinations, so that, at a later stage, products are developed commensurate with consumer requirements. This means that the process of development and derivation of new products is ongoing endlessly.”

“We were geared from the very beginning toward providing non-conventional products that differ from and excel over all other alternatives found in the market place. Our products were the true translation of this trend as they offer a new concept of carbonated drinks. This is because of the unique flavor derived from extracts of natural fruits, and the use of barley as a basic ingredient of Fayrouz,” he pointed out.

Fayrouz is a Swiss corporation founded in Egypt more than 15 years ago. Shortly after its incorporation, the company was able to extend its reach to target consumers, and become an unrivaled competitor among leading international carbonated drink manufacturers. The success of the company encouraged a group of European investors to acquire a majority share of the company’s capital, and build R&D center in the Swiss city of Bern, where its head office is based.

thus securing an easy product and brand penetration across world markets.

“The distinct natural taste extracted from natural fruit concentrates is developed and introduced, and then used in concentrate form for subsequent blending with barley. The resultant syrup is our secret formula that gives Fayrouz its unique taste as a carbonated drink derived from natural ingredients. Concentrates are then exported to all parts of the world where the drink is filled and marketed,” he said.

Fayrouz’ presence in the Saudi market dates back to approximately 10 years, The company’s vision is to provide high-quality products based on barley extracts with a view to attracting the attention of the consumers and satisfy consumer tastes and trends worldwide. Fayrouz offers six flavors — pears, pineapple, apple, mango, raspberry, and peaches. Products are filled in bottles and cans. “ We could capture a share of approximately 1.5 percent of the total carbonated soft drinks market in the Kingdom in 2007,” Abdul Rahman forecast.

“Currently, we maintain a strong presence in 19 global markets in the Middle East and Europe. We plan to increase this number to a total 75 market over the next five years. It is our view that building a sound future must be founded on a solid-grounded present. We have constructed production plants in Nigeria, Morocco and Egypt, in addition to the factory in Greece, which serves the European continent. A factory in Pakistan and another in the Gulf region are under consideration,” he said.