As CEO and partner of Al-Sale Eastern Co. Ltd. (Al-Sale), Al-Dossary has successfully led her firm through the global downturn with the company continuing to dominate the scrap steel business in the Kingdom. Al-Dossary herself has taken to the international business arena through her relationship with the Clinton Global Initiative (CGI).
Al-Dossary believes that Al-Sale is thriving because the company followed sound business practices. Basically, during 2008 and 2009, they had the manpower and cash to keep running every day. It sounds simple, but when cash is difficult to come by, having adequate resources readily available makes an enormous difference.
“Most of the companies that sprouted up quickly in the last decade depended on bank loans. They were founded on credit,” said Al-Dossary. “Since Al-Sale is a family company, we have mostly depended on our own resources. We used very limited credit facilities from banks. We didn’t go through the earthquakes that happened to other companies. We did tighten our belts for two years, but now business is booming. The steel business is booming in Saudi Arabia because you have a lot of industrial cities that need our steel. Yes, you have steel mills, but who is supporting the steel mills? We are. We’re No. 1 in scrap steel in Saudi Arabia.”
Al-Dossary stated that Al-Sale’s achievements are due to the company following a long-term strategy, developing its own methods based on international best practices and fully understanding local and global market indicators. She remarked that support from the government for Al-Sale’s activities can be categorized as “elementary.” While the company was awarded an industrial loan to help them advance their Shredder Project, the loan was modest and the government agencies involved took quite a bit of time investigating Al-Sale and the project.
“There’s still bureaucracy and red tape everywhere, not just for us but for everyone,” she said. “It’s been there and it’s still there, and it just hinders and slows the work.”
Although Al-Sale’s bottom line reflects steady growth, Al-Dossary is already considering the business environment five to ten years from now. That’s why she is increasing her involvement with the CGI. Established in 2005 by former US President Bill Clinton, the CGI works with global political and business leaders to devise and implement innovative solutions to some of the world’s most pressing challenges. CGI members have made more than 1,700 commitments valued at $57 billion, which have already improved the lives of 220 million people in more than 170 countries. The 2010 CGI Annual Meeting will take place from Sept. 21-23, 2010, in New York City and Al-Dossary plans to be there.
“I’m a full member of the Clinton Global Initiative organization,” she said. “I was approached by the Clintons themselves — President Clinton and his wife. Bill Gates, Warren Buffet and so many others are members of CGI. All these members are concerned about global change. For instance, what is affecting the global environment and how we’re using energy.”
Al-Dossary explained that companies involved in CGI are making commitments to do more for global change than simple public relations stunts. She commented that it’s difficult for industries to make environmentally significant changes in their operations. Often such changes are not the most cost effective, and industries that are running in an ecologically conscious fashion must continue to compete against those that care only for profitability.
“It sounds good on paper, but then you find that you have to investigate a lot, and spend a lot to really implement such ideas as sustainable energy and eco-friendly options,” Al-Dossary said. “To get involved with a venture that’s looking toward the future you have to be courageous. You have to approach it with cautious steps and with studies. Because I did go with a group as part of CGI, it’s easier. They are doing the studies. I’m going into this in a collaborative way with them, with several companies.”
She wouldn’t be drawn into discussing the specifics of the venture, saying only that she would be collaborating with other like-minded companies to serve the Middle East. All the companies will be coming through CGI’s program so their commitment will be assured. The only additional requirement that Al-Dossary has made for her firm’s cooperation with the future venture is that Saudi youth must be gainfully employed and trained as part of the future company’s operations. Such employment must be about more than numbers and offer long-term value both to the employer and the employee.
“You cannot just employ, employ, employ and people still have nothing!” Al-Dossary said emphatically. “I believe that if you want to employ people, you have to do it the right way by training them, giving them opportunities and not discriminating between men and women. If a company employs only five or six people, but you know for sure that they are well trained and they have received opportunities and you can see from their CVs that they have a lot of skills, then this is a real work. I could do without this as a condition for investing in the new venture and nobody would blame me, but it’s important to me to give something back.”
Al-Dossary admitted that her perspective on the future of business in the region is unusual. It is certainly against the predominant local business model which is all about trade and consuming, rather than creating. However, she is committed to moving in a new direction, while still keeping her focus as a leader in Middle Eastern industry.
“What we’re looking at is not just creating a fortune which is there already, thank God. No, we want to be part of the global initiative and force that will change industry in the coming era,” she said. “Should we do this? I didn’t check with other companies because that’s not in my nature. You have to start with yourself and do what you believe is best. That’s how we succeeded thus far and I believe that is how we will grow and become even stronger in the future.”
