Aramco: A pioneer in Saudization

Aramco: A pioneer in Saudization
1 / 2
Aramco: A pioneer in Saudization
2 / 2
Updated 10 June 2016

Aramco: A pioneer in Saudization

Aramco: A pioneer in Saudization

THE CARAVAN GOES ON
HOW ARAMCO AND SAUDI ARABIA GREW UP TOGETHER
FRANK JUNGERS
PUBLISHED BY MEDINA PUBLISHING
PAPERBACK 255 PAGES 

“The Caravan Goes On” recounts the unique story of Frank Jungers, former President, Chairman and CEO of Aramco during his three decades with the company. This book not only highlights the eminent role played by Aramco in the early development of Saudi Arabia’s infrastructure and economy but it also underlines the company’s pioneering efforts in the field of Saudization.
“The resulting values that Saudis and Americans shared over the years shaped a record marked by and large by cooperation and mutual respect on both the individual level and of company-government relations. This was in sharp contrast to elsewhere in the world, where foreign-owned oil companies often had adversarial, exploitative or even colonialist relationship with their host governments.
Aramco, however, implemented a special set of well-thought-out policies, including using the best available technologies, maximizing training and the development of Saudi manpower, encouraging the creativities and respectfully observing Saudi law and customs, writes Jungers
The appointment of a Saudi geologist Ali Al-Naimi (who started as an office boy), as the first Saudi president of Aramco and chief executive officer and later Minister of Petroleum and Mineral Resources, is a perfect example of what this successful Saudization strategy achieved.
“The term Saudization is something we coined in the late 1970s, but it represents a process that has been going on for a very long time,
as evidenced by our more senior Saudi officers at Aramco. Essentially all of them have 30 or more years with the company. They began their training in the 1950s,” says John Kelberer, who was appointed chairman .
Aramco began its efforts in the 1950s to make better use of Saudis in the workforce and to integrate them more effectively in the company’s Western-style business culture. Under the wise and progressive leadership of Norman “Cy” Hardy and Thomas Barger, the company developed programs to attract and train a Saudi workforce and provide them with a lifestyle that would fit Aramco’s needs.
One particularly successful program was the Home Ownership Program which gave Saudi employees the possibility of owning a plot of land and building a house thanks to a loan payment deducted from their salaries. This popular program is still being implemented to this day.
It is interesting to know that many individuals who began working for Aramco eventually created their own businesses. Suliman Olayan started as a transportation dispatcher but when Aramco encouraged Saudis to set up their own businesses and become contractors for the company, he heeded the advice and left his job in 1947. He subsequently opened a trucking company in Alkhobar to handle the transportation for Bechtel which was building the huge Tapline oil pipeline system across northern Saudi Arabia. Other families who also left Aramco to create successful businesses include the Zamils, the Algosaibis and Ali Al-Tamimi who turned his Dammam Laundry into a multifaceted enterprise including construction services, transportation and supermarkets.
Oil transformed Saudi Arabia and its people but the transition from a nomadic to an industrial society was also due to the unique character of the Saudi desert bedouin. Frank Jungers recalls the day when the head of a local tribe was invited to witness the first test flight of a Ford Trimotor aircraft. The plane had been brought in boxes to the Kingdom from Bahrain by dhow. When the aircraft was assembled and ready to fly, everyone gathered on the beach to witness the event.
As the Trimotor rose into the air, Thomas Barger, Aramco Chairman and CEO, told the Bedouin sheikh: “Isn’t it wonderful that a machine this big can fly?”
The tribesman replied: “Isn’t that what it’s supposed to do?”
“This gives us some insight into the practical mind of the Bedu,” says Jungers.
Pragmatism was also one of King Abdulaziz Al-Saud’s many qualities. Endowed with a charismatic character, Ibn Saud, as he was also known, was a born leader who not only knew what his country needed but also had a clear vision of its future. He played a crucial role in signing the Concession Agreement with the Americans since he believed the British were not serious about the country’s prospects in oil. The proposed Concession Agreement was submitted to King Abdulaziz in May 1933. He apparently sat quietly while the 37 articles were being described giving the impression he was dozing through the reading. However, as soon as the monotonous voice of the reader stopped, the King became alert and said to his Finance Minister, Abdullah Sulaiman: “Put your trust in God and sign.”
As Aramco grew along with the Saudi government, there also grew the notion that the government should not only receive money from the oil industry, but also have a hand in running it. Under the guidance of the Deputy Crown Prince of Saudi Arabia, Mohammed bin Salman, a package of ambitious plans known as “Saudi Vision 2030” aims at decreasing the country’s dependence on petrol.
One of the main proposals of this economic plan is the sale of 5 percent of Saudi Aramco via an initial public offering (IPO). Saudi Aramco has revenues of more than $1 billion per day and it is easily the largest energy company in the world in terms of both production and company value. The main reasons behind this decision are to turn Aramco into a more commercially-driven organization, reduce political meddling and provide more leeway for the company to make commercial decisions.
It should be said that Aramco is investing up to $10 billion for the development of domestic shale gas resources. This will enable the Kingdom to use more natural gas for domestic electricity purposes, freeing up more oil for export.
The author has used many witty and interesting anecdotes which bring humor and liveliness to a subject that may seem too specialized.
This book succeeds brilliantly in showcasing the people who have contributed to create Aramco’s DNA which permeates the company’s ethic and is the key to its success since its inception in 1933.

[email protected]


Lebanese fleeing collapse at home seek security, salaries in UAE

Lebanese fleeing collapse at home seek security, salaries in UAE
Updated 26 July 2021

Lebanese fleeing collapse at home seek security, salaries in UAE

Lebanese fleeing collapse at home seek security, salaries in UAE
  • Lebanon’s crisis has propelled more than half the population into poverty

DUBAI: Until a few months ago, 32-year-old Michelle Chaaya was a human resources professional at a multinational firm in Lebanon. Now she works as a bartender in Dubai, sending cash to her family back home where a financial crisis has left many destitute.
The United Arab Emirates has long been a destination for Lebanese businesses and professionals, propelled by instability in their tiny country.
Those who like Chaaya came to the UAE in the past year are leaving behind a Lebanon that was already in dire straits before a huge chemical blast tore through Beirut in August, exacerbating a financial meltdown that has seen the currency collapse and jobs vanish.
“After the explosion we felt like we were hopeless. So the first opportunity to travel outside Lebanon, I took it,” Chaaya said.
Fadi Iskanderani, one of Lebanon’s few paediatric surgeons who this month moved to Dubai, said the plummeting currency meant his wages had fallen by around 95 percent for the same workload.
Having trained overseas, he moved back to help rebuild his country after years of civil war. The decision to leave was heart-wrenching.
Lebanon’s crisis has propelled more than half the population into poverty, locked depositors out of bank accounts and worsened shortages of basic goods.
The country’s prized education and medical sectors have seen talent leave in droves: around 1,200 doctors are estimated to have left Lebanon.
Psychiatrist Joseph Khoury, who moved to Dubai this year with his family, said Lebanese doctors are filling entire departments at hospitals in the Gulf state.
“The pace of doctors coming from Lebanon is astonishing, ” Khoury said.
The UAE is stepping up efforts to attract and retain skilled workers as competition for talent heats up in the Gulf Arab region where countries are moving to diversify economies away from oil revenues.
The UAE, where visas for non-citizens are typically tied to employment, is offering certain investors and skilled professionals new long-term 5- or 10-year renewable residency visas — and even potential citizenship.
Abed Mahfouz, a Lebanese bridal couture designer, said he had been told he could apply for the so-called ‘golden visa’.
After the Beirut blast destroyed his business, Mahfouz re-opened this month in a luxury mall in Dubai, a tourism and trade hub that attracts the high-end customers he caters to.
“Dubai has taken the place of Beirut. What I have seen here (this mall) for the past week or 10 days is what I used to see in Lebanon 4-5 years ago: Customers, people shopping,” he said.
But unlike Lebanon’s professional elite, many younger people are struggling to land jobs in the UAE.
Soha, 28, came to Dubai to look for work after the bookshop cafe where she was employed in Beirut was damaged in the port explosion.
“You come from this tiny pool in Lebanon, so my CV looks like nothing, even though I feel like I’ve accomplished a lot,” said Soha, who declined to give her surname. She is rallying herself for more jobseeking in Dubai, a city that could give her the sense of safety she longs for.
“I just wanted to be sitting in a place where I have that peace of mind that something isn’t going to blow up at any minute.”


As Lebanese suffer crippling economic crisis, MPs celebrate daughters’ lavish weddings

Former Hezbollah MP Nawwar Al-Sahili walked his elegantly-dressed daughter through fireworks-laden walkways and striking strobe lights this week. (Screenshot)
Former Hezbollah MP Nawwar Al-Sahili walked his elegantly-dressed daughter through fireworks-laden walkways and striking strobe lights this week. (Screenshot)
Updated 26 July 2021

As Lebanese suffer crippling economic crisis, MPs celebrate daughters’ lavish weddings

Former Hezbollah MP Nawwar Al-Sahili walked his elegantly-dressed daughter through fireworks-laden walkways and striking strobe lights this week. (Screenshot)
  • Photos and videos of the luxurious weddings were widely shared across social media as they were heavily criticized
  • Photos of Lebanese sleeping on their balconies spread across social media this week as well as ever-growing lines at gas stations

LONDON: Empty supermarket shelves, hours-long queues for gasoline, and resorting to sleeping on the balcony to endure no electricity for fans or air-conditioning in the summer - such has become the routine for the everyday Lebanese.

“These scenes of humiliation, people should not bear,” Hezbollah Secretary-General Hassan Nasrallah said in a speech last month, waving his finger as he lambasted the long fuel lines in recent weeks.

“Those responsible for government formation need to listen to people’s voices and look with pain at the cars queueing up for fuel and the loss of electricity and medication,” Nasrallah said as he urged his supporters to be patient and to sacrifice.

Indeed, Lebanese people of all backgrounds should not have to bear with the consequences of years of government corruption and a financial meltdown - and yet, it appears that Nasrallah’s former representatives in government, nor his party allies’ current parliamentarians do not fall into that category.

Free Patriotic Movement MP Ibrahim Kanaan and former Hezbollah MP Nawwar Al-Sahili both walked their elegantly-dressed daughters through fireworks-laden walkways and striking strobe lights this week - not two weeks after former Prime Minister-designate Saad Hariri stepped down from attempting to form a government after 10 months.

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

A post shared by thawramap (@thawramap)

 

Photos and videos of the luxurious weddings were widely shared across social media as they were heavily criticized, prompting Sahili to issue an apology online - claiming that it had not been on purpose.

“Hezbollah is proving yet again how aloof it is to the suffering of Lebanese people. This video of the lavish wedding of their MP Nawar Sahili's daughter, going viral in #Lebanon. No empathy whatsoever,” Malcolm H. Kerr Carnegie Middle East Center Research Fellow Mohanad Hage Ali tweeted.

 

 

The photos and videos were promoted across the well-followed Instagram page “Thawramap” - a page created in the heat of the October 17 nationwide protests - that has become an online watchdog targeting politicians and their lifestyles.

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

A post shared by thawramap (@thawramap)

 

“It shows once more that the political establishment is disconnected from the people. Nawwar Sahili posted an apology to the party’s partisans on Twitter, as if he needed the backlash to understand the weight of its actions,” one of the individuals behind the page told Arab News, speaking anonymously due to fear of repercussions for the critical content posted.

Photos of Lebanese sleeping on their balconies spread across social media this week as well as ever-growing lines at gas stations; showcasing an extreme contrast between the everyday lives of politicians and citizens.

A family in Lebanon sleeps on the balcony to cool down in the summer due to lack of electricity for fans or air conditioning. (Facebook/Zakaria Jaber)

Earlier this year, photos of the country’s political leaders wearing luxury watches worth thousands of dollars did the rounds on Twitter while the Lebanese pound’s value deteriorated heavily against the US dollar.

At the time of writing, $1 is equivalent to 22,500 Lebanese pounds (LBP) compared to 1 USD to 1,500 LBP in 2019.


Endangered bears leave Lebanon for better life in US animal sanctuary

Homer and Ulysses had been trapped for more than 10 years in a zoo in Tyre. (Supplied)
Homer and Ulysses had been trapped for more than 10 years in a zoo in Tyre. (Supplied)
Updated 25 July 2021

Endangered bears leave Lebanon for better life in US animal sanctuary

Homer and Ulysses had been trapped for more than 10 years in a zoo in Tyre. (Supplied)
  • The Syrian brown bear lived in Lebanon, Iraq, Syria and Turkey but, due to illegal and non-organized hunting in Lebanon, the species became extinct

BEIRUT: Two endangered bears who were living in poor conditions in a Lebanon zoo have been flown to an animal sanctuary in the US after they started to lose weight and suffered from other health issues.
Rights association Animals Lebanon said it managed to persuade their owner that “the bears deserved better” given the creatures’ deteriorating condition.
Lebanon’s economic crisis, considered the worst in its modern history, has affected animals as much as humans.
Families have given up their pets, unable to feed them in light of sharp rises in the dollar exchange rate. Zoos have also been affected, with animals facing malnourishment and owners no longer able to secure their basic needs.
Animals Lebanon said the two Syrian brown bears, called Homer and Ulysses, had been trapped for more than 10 years in a zoo in the southern city of Tyre.
“There are six bears still waiting to be rescued in the north of Lebanon, Bekaa and Beirut,” the association’s director, Jason Mier, told Arab News.
Previous attempts to get the bears to the Colorado Wild Animal Sanctuary had failed due to the pandemic, roadblocks, banks freezing assets, and the wait to obtain the sanctuary’s confirmation to receive the creatures.

FASTFACT

Families have given up their pets, unable to feed them in light of sharp rises in the dollar exchange rate. Zoos have also been affected, with animals facing malnourishment and owners no longer able to secure their basic needs.

The sanctuary cares for more than 650 lions, tigers, bears, wolves and other animals — including a fox and a wallaby rescued by Animals Lebanon.
Animal rescue organization Four Paws offered to help bear the cost of the animals’ trip to Colorado.
Mier said: “There are six zoos we are aware of in Lebanon. In 2017, we passed the Animal Protection and Welfare Law, which regulates zoos. These zoos hold endangered wildlife, local wildlife, and farmed or domesticated animals. There are about 30 lions, 10 bears, and 10 tigers. We believe conditions need to be drastically improved at all zoos.”
Dr. Assad Serhal, director of the Society for the Protection of Nature in Lebanon, told Arab News that the Syrian brown bear was an endangered species seen in the mountainous area of eastern Lebanon, near the Syrian borders.
In 2019, an environmental activist filmed a brown cub playing on the road in the outskirts of Ersal, in the Bekaa valley. That same cub was previously seen with his mother in 2017 in the same area. This species had not been seen in Lebanon for over 50 years.
The Syrian brown bear lived in Lebanon, Iraq, Syria and Turkey but, due to illegal and non-organized hunting in Lebanon, the species became extinct.
Serhal said Lebanon was home to several species of wild animal, but that most had been captured by zoo owners across the country.


EXCLUSIVE: All hands on Le Deck — Sofitel restaurant in Cairo sinks to bottom of the Nile

EXCLUSIVE: All hands on Le Deck — Sofitel restaurant in Cairo sinks to bottom of the Nile
Updated 25 July 2021

EXCLUSIVE: All hands on Le Deck — Sofitel restaurant in Cairo sinks to bottom of the Nile

EXCLUSIVE: All hands on Le Deck — Sofitel restaurant in Cairo sinks to bottom of the Nile
  • The floating restaurant used to be a meeting point for many famous writers, artists and politicians

CAIRO: In less than a minute, a floating restaurant sank in the Nile, which is part of the Sofitel Hotel in the Zamalek district in central Cairo.  

“I was sitting on the opposite terrace having tea and smoking with my friends and at first I thought there was a fight, then I thought someone drowned and then we heard a bang, then suddenly the deck started sinking in a way that reminded me of the Titanic movie,” a British tourist who witnessed the incident told Arab News.

The importance of the floating restaurant does not stop at the distinctiveness of its location, but also with the association of its name with many public figures, politicians and celebrities who used to visit it.

It is a fixed floating boat in front of the Sofitel Hotel, which was the former Sheraton El Gezirah, built in 1984. This limited floating space occupied one of the best locations overlooking the Nile at the other end of Zamalek Island, facing the Garden City neighborhood on the other side.  

The floating restaurant has always been characterized by its simplicity and fame at the same time.  It was a meeting point for many famous writers, artists and politicians. Among them are the artist Sabah, Wadih Al-Safi, the writer Lutfi Al-Khouli, Dr. Osama Ilbaz the famous late politician, Ahmed Qaddaf Al-Dam The famous Libyan politician, and other Egyptian and Arab celebrities.

The 1980s were the time of the heyday for "Paradise", the name of the boat at the time, where a number of VIPs had fixed places.

In the past, its name was Paradise paradise, and its name changed after the hotel’s management and ownership changed, so the name of the hotel became Sofitel and the name of the floating restaurant became Le Deck.  But it still possesses the same beauty features as the site and attracts seekers of beauty and distinction.

All this remained until Saturday evening, at eight and two minutes in the evening, when those close to the floating restaurant heard a strange sound, followed by one of its sides, and then began to sink into the water until it disappeared in fifty seconds.


Maskless Kyrgyzstan, Tajikistan teams make for awkward moment at Olympic opening ceremoney

Maskless Kyrgyzstan, Tajikistan teams make for awkward moment at Olympic opening ceremoney
Updated 23 July 2021

Maskless Kyrgyzstan, Tajikistan teams make for awkward moment at Olympic opening ceremoney

Maskless Kyrgyzstan, Tajikistan teams make for awkward moment at Olympic opening ceremoney
  • One of the central Asian country's athletes covered his face while others waved and smiled as they walked in

TOKYO: Kyrgyzstan’s Olympic team paraded maskless into Tokyo’s Olympic Stadium at Friday’s Games opening ceremony, marking an awkward contrast with all the national teams who had preceded them in masks — and in accordance with COVID-19 protocols.
Just one of the central Asian country’s athletes covered his face, with the other members of the small delegation, including its two flag bearers, waving and smiling as they walked in.
A short while later the Tajikistan team marched in similarly maskless, while Pakistan’s two flagbearers also chose not to cover their faces, unlike the vast majority of the other participants at the ceremony.
Tokyo 2020 organizers did not immediately respond to a request for comment about the delegations without masks.