RIYADH, 19 November 2002 — Three IT companies, two of them from the Al-Faisaliah Group, have merged to create an enlarged entity as part of a strategy to increase its share in the Saudi market and expand its presence into other GCC states.
The launch of the SR10 million Ebttikar (or innovation) with the amalgamation of Al-Faisaliah Electronic Services (AES) and Al-Faisaliah Advanced Systems Technology (FAST) belonging to the Al Faisaliah Group and Gulf Stars Computer Systems owned by Abdullah Al-Romaizan was announced yesterday at a press conference by Prince Mohammed Al Faisal, president of the Al Faisaliah Group.
This is the second merger announced by Al Faisaliah Group following the consolidation of Awalnet, Naseej and Alamiah into a single entity. Prince Mohammed, who is also the chairman of Ebttikar, said the new company would provide end-to-end IT solutions, after-sales maintenance and support services in response to customer demands for professional and innovative IT services.
Pointing out that the new company brings together the synergy of its three constituent units, Prince Mohammed said it will have a 15 percent share of the IT market in the Kingdom, which is estimated to have an annual turnover of SR2 billion. Of the market capitalization at SR10 million, the Al-Faisaliah Group will have a 57.5 percent stake, with the remaining 42.5 percent shares earmarked for Abdullah Al-Romaizan.
“By joining forces, we hope to cater for the local and regional markets from a stronger base. Although our primary focus will be on Saudi Arabia, we are keeping our eyes wide open to opportunities in the other Gulf states,” he observed. Prince Mohammed said the merger was in response to the changing scenario of the IT market in Saudi Arabia and the Middle East and “the need for establishing a strong and large IT company able to meet the future customer needs and further enhance the contribution of IT to the Saudi and the regional economy.”
He added that Ebttikar would also be positioned to play a leading social role through the utilization of local resources and expertise. Noting that the IT sector defined the core competency of any company in terms of its ability to manage and meet the customers’ needs, expectations, the engineering value-added capabilities and the management of human capital, Prince Mohammed said “nothing can be taken for granted, since there is no chance for underperformance or companies that fail to fulfill their contractual obligations and timelines efficiently.”
Speaking on behalf of Gulf Stars Computer Systems, Al-Romaizan said the track record of the three constituent units “constitutes the corner stone for Ebttikar. Clients could expect a higher standard of service through the new company’s range of products and services,” he added.
