Healthy economy draws investors to the Kingdom

Saudi Arabia is a huge market with vast potential open to investors, according to Siddeek Ahmed, chairman and managing director of Eram Group that has 30 companies in 10 countries.
“The Kingdom is the largest economy in the Middle East, having liquid money to support its budget for many years to come. Custodian of the Two Holy Mosques King Abdullah is the driving force behind the Kingdom’s unprecedented progress and prosperity,” Alkhobar-based Indian businessman told P.K. Abdul Ghafour of Arab News in an exclusive interview.
King Abdullah introduced several economic reforms that were instrumental in strengthening the economy. “I am confident that under his vibrant leadership the Kingdom will attain new heights of progress and prosperity,” he said.
Ahmed said Eram Group, with an annual turnover of SR 1 billion, is planning to launch a number of new educational, tourism, industrial and investment projects in the Kingdom. The group also works for promoting tourism. “Very soon we will be opening ITL World’s first showroom in Jeddah. It will also be ITL’s largest showroom,” he said and commended Saudi Arabian General Investment Authority (SAGIA) for providing all facilities and incentives to foreign investors.


Excerpts:
As a leading Indian businessman in the Gulf, how do you evaluate the Kingdom's economic and business prospects?
Saudi Arabia is a huge market with immense potentials open to investors. It is the largest economy in the Middle East, having liquid money to support its budget for many years to come. Custodian of the Two Holy Mosques King Abdullah is the driving force behind the Kingdom's unprecedented progress and prosperity. He introduced several economic reforms that were instrumental in strengthening the economy. King Abdullah has become an influential world leader with his initiative to promote interfaith dialogue as well as his approach to regional issues. I am confident that under his vibrant leadership the Kingdom will attain new heights of progress and prosperity.

You have been working in the tourism sector for the last many years. What are your plans to boost Saudi tourism?
There are lots of prospects for tourism in Saudi Arabia. The pilgrimage tourism is one of the biggest sectors. Due to visa restrictions we will not be able to attract international tourists to non-pilgrimage sites on a large scale. We have plans to promote domestic tourism among the large numbers of expatriates and Saudi nationals. We have to build awareness among the expatriate community to drive domestic tourism. There are many potential destinations where we can attract tourists. Apart from the holy cities of Makkah and Madinah, we have hill stations like Abha and Taif, farms in Qassim, Jazan and Hail, and heritage spots like Madain Saleh. We would like to work hand in hand with Saudi Commission for Tourism and Antiquities to promote domestic tourism. One of SCTA's strategies is to create jobs for young Saudis in the sector. We are in discussions to recruit Saudis from the tourism institutes in Riyadh. ITL World, Eram Group's travel and tourism arm, is quite happy to employ them and provide them with more training and on job experience in travel and tourism industry. I am sure in the coming years tourism will contribute a lot to the Kingdom's growth.

Unemployment is one of the major problems facing Saudi Arabia with more than a million citizens without jobs. What are your proposals to solve this problem?
At Eram, we give orientation and multi-skill training to Saudi nationals by which we prepare them for a multicultural and demanding work environment. We are very keen to have Saudis in our team and the reassuring fact is that the attrition rate of Saudis in our organization is very negligible. We take deliberate effort in developing their skills and abilities, which have helped them climb up the career ladder. Unemployment in Saudi Arabia is not the same that exists in other countries where there is shortage of opportunities. In Saudi Arabia, opportunities are plenty given the fact that there are millions of expatriate workers. More than 60 percent of Saudi population is under the age of 40. So the challenge here is how to enhance the employability through focused initiatives. Employability is not just about education, it's more about skills and attitude. Being in the industrial sector and working with global companies in the region for several years, we have a clear understanding on the needs of the industry. Accordingly, we are now developing a comprehensive training program, which would improve the employability of Saudis in the industrial sector. We have also plans to conduct exclusive training programs to develop women professionals in information technology and travel industry. Once our plans and proposals are ready we shall present them to Saudi authorities.

Saudi Arabia has launched a major industrialization drive to diversify its resources. How can your group support this move? Being an industrialist, how do you see the Saudi industrial sector's future prospects?
I can see that there is a clear mandate from the government to strengthen the sector. The government is now promoting investments and research in renewable and clean energy. We have set up GCC's first manufacturing facility for solar-power products in the Eastern Province. Due to the overwhelming support we received from various corners for the venture, we are now thinking of setting up a research center as well. Looking ahead, Saudi Arabia has a bright and prosperous future in terms of economic growth and industrialization. Nonoil sectors are likely to make considerable progress in the coming years. However to sustain the growth it's equally important to develop the human capital, promote entrepreneurship and intensify research and development activities.

Some foreign investors have complained that SAGIA does not meet their requirements. What is your experience with the Saudi investment facilitator?
We are very happy with SAGIA and we don't have any problems like others because we follow its regulations and procedures. Whenever we had something to do with SAGIA, we have found them very friendly and supportive as a close business ally.
Can you outline Eram Group's diversified business activities in the Kingdom and other parts of the world?
There are about 30 companies under our group in 10 countries, spread across various industries such as oil & gas, petrochemicals, power, water, IT, health care, travel, automotive and industrial services. We started as a HR consultancy entity and then slowly diversified into engineering, contracting, health care, IT and tourism. We have now entered into the manufacturing sector and produce UPS (uninterrupted power supply) units for big industries. We started this UPS business with US technology and Indian participation. This is the first of its kind facility in the GCC.

What other innovative industrial projects your group has implemented in the Kingdom?
We launched an industrial services company in Jubail last year and we provide testing services for various kinds of transformers and switchgears of Saudi Electricity Company (SEC). We have another project in the pipeline, which is a maintenance and refurbishment facility for oilfield pipes and well heads. We are doing third party inspection for Saudi Aramco in the UK. By the third quarter of this year, we will be in the United States for third party inspection. We have many product representations from various US companies.

What are your business plans for Jeddah?
God willing, within two months ITL World will be operating in Jeddah. We have set up one of the best and biggest showrooms in the city. I hope the Indian ambassador or a top official from India will come to inaugurate it in June or July. ITL World specializes in ticketing and tourism, and it is the GSA in Saudi Arabia for Disneyland, Disney World, Disney Crews, Orlando, Hong Kong, Paris, Europe Train, Thomas Cook, etc. It also organizes package tour programs for different global destinations.

What are your new ventures in the education field, both in Saudi Arabia and India?
We are now in the process of establishing a world-class school in Riyadh. It will be either a boarding or a day school with British curriculum. It will have well-qualified teaching staff and advanced facilities and target mainly children of diplomats living in the Saudi capital. We have planned to establish a major international school in the Malappuram district of Kerala with the support of P.V. Abdul Wahab, who is a leading NRK businessman in the Gulf and a former Parliament member. We are aiming to produce quality students who will able to do something to the community and country after completing their education.