MIDDLE EAST EDITION JANUARY 2019 middleeast.businesschief.com
Digital disruption for Vision 2030 King Abdullah Economic City A fast-paced development
TECHNOLOGY TRANSFORMATION IN RETAIL Elie Harb on how the company is improving the Lebanese shopping experience
TOP 10
Most valuable brands
— The growth of a telco giant
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WELCOME
W
elcome to the January issue of Business Chief Middle East! In this month’s edition, we speak with Elie Harb, Head of IT at ABC as he talks digital disruption in Lebanon, outlining how the company is undergoing a significant technology transformation. “IT is now becoming more and more of a business driver, pushing the boundaries of possibility,” he says. The company prides itself on one critical component – innovation – and it strives to deliver on this through providing an outstanding customer experience. Elsewhere in this jam-packed issue, we speak with Fakeeh Healthcare regarding the strategy the company is using to align with the Saudi Vision 2030.
VP of BICS Middle East, Abdelkader Najja, explains the challenges of operating in the Middle East. Additionally, we explore Saudi Arabia’s newest city, the King Abdullah Economic City for a progress report on the new city which will be under construction until 2035. Built around 70 square miles at a total cost of $85.4bn, the project is considered a major innovation for the Kingdom. Our top 10 this month zones in on the Middle East’s most valuable brands. Enjoy the issue! Sean Galea-Pace. sean.galea-pace@bizclikmedia.com
Our leadership feature showcases how BICS has achieved substantial growth in the telecommunications market in the region and Regional
m i d d l e e a s t . b u s i n e s s c h i e f. c o m
05
CONTENTS
10
Amid a technology transformation plan, Elie Harb, Head of IT at ABC, talks digital disruption in Lebanon
26
34 A CUSTOMER JOURNEY DRIVEN BY DATA
BICS: growing in the Middle East amid technological change
44
King Abdullah EconomicCity City Focus
54
Top 10
most valuable brands in the Middle East
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DRIVING INNOVATION FOR DIGITAL HEALTH We provide partners with world class devices and offer access to Garmin User data through our Health API and SDKs.
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CONTENTS
68 Fakeeh Healthcare
78 Petro Rabigh
ABC GROUP: DIGITAL TRANSFORMATION FOR THE LEBANESE SHOPPING EXPERIENCE WRIT TEN BY
10
DA LE BENTON PRODUCED BY
CR AIG DANIEL S
JANUARY 2019
TECHNOLOGY
11
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ABC
AMID A TECHNOLOGY TRANSFORMATION PLAN, ELIE HARB, HEAD OF IT AT ABC, TALKS DIGITAL DISRUPTION IN LEBANON
T
echnology has completely redefined the modern world and the modern customer. As innovation drives change, businesses
across the globe have to adapt and evolve in order to continue to meet and ultimately exceed changing customer expectations. As one of the premier 12
shopping and lifestyle destinations in Lebanon, understanding this evolving customer and the role that technology has and continues to play in that shifting landscape is more important than ever before for ABC. As the first retailer to open in the country since 1936, ABC Group combines world-class shopping dining and entertainment across six branches and three flagship stores throughout Lebanon. The company prides itself on one critical component – innovation – and it strives to deliver on this through outstanding customer experience. “At ABC our purpose is to make Lebanon a better place and we do that by creating a great social hub offering the best brand mix and outstanding customer experience,” says Elie Harb, Head of IT & PMO. “ABC raises the bar very high when it comes to customer JANUARY 2019
TECHNOLOGY
13
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Yo u r te c h n o l o g y Pa r tn e r fo r a g r e a t c u s to m e r e x p e r ie n c e
www.bmbgroup.com Egypt, KSA, Jordan, Iraq, Lebanon
service, creating an unprecedented
business enabler. “IT is now becoming
environment where we and our cust–
more and more of a business driver
omers are part of one family. Our CSR
pushing the boundaries of possibility
activities and environmental initiatives
for ABC to the max,” he says. “The CIO
are unique in the country and set an
has assumed a prominent place in the
example for the competition and our
strategic thinking of the business, not
population alike.”
simply enabling and supporting
Over the last five years, Harb has
other members of the C-suite to
overseen a major digital transformation
achieve their vision, but rather
of ABC as the company continues to
actively setting the agenda
stay at the forefront of innovation and
for the future of the digital
technology. With a career in IT spanning
enterprise. His role isn’t
over 18 years, Harb has seen the role
limited to just keeping the
of IT and that of the CIO shift dramat-
system running and
ically, moving away from the tradition-
updated (while that
al support function and becoming a
is obviously still
JANUARY 2019
TECHNOLOGY
important), but he became an agent of
“ ABC raises the bar very high when it comes to customer service,creating an unprecedented environment where we and our customers are part of one family” — Elie Harb, Head of IT and PMO, ABC
change and innovation.” As Head of IT, Harb is a key driver of the digital transformation and looks to steer the company towards understanding how best to capitalise on the technologies on hand in order to optimise and automate business processes, enhance customer experience and improve productivity, all the while keeping a stable, updated and secure platform. Harb admits that as technology continues to evolve, the company must be agile in its approach to trans– formation and so it breaks down its transformation roadmap into three year plans that are renewed at the end of
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15
ABC
each period. This, Harb explains, allows the company to continuously assess its position on the edge of technology to remain the leader in the market. ABC has defined its priorities for its digital transformation based on four pillars: enabling state-of-the-art customer experience, business enhancement and innovation; productivity increase and automation; infrastructure and stability. Throughout this journey, Harb can already point to key successes where technology has enabled true innovation and efficiency for the business. 16
“Looking at customer experience, we built the best loyalty program in the country and we became the first fashion retailer to implement a call centre as well as a 3D virtual reality way finding and mobile point of sale systems,” he says. “We were also the first to implement an intuitive business intelligence system with predictive analysis and machine learning. We’ve also optimised the buyers’ work by adding merchandise planning systems as well as opening our recruitment possibilities by adding an online recruitment system.” With technology comes the risk of always turning to technology for the sake of following industry trends rather than enabling true value for the business and return of JANUARY 2019
TECHNOLOGY
17
CLICK TO WATCH : ‘ABC OF LEADERSHIP’
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ABC
investment (ROI). Harb is all too aware of this and recognises that while ABC is an early adopter, it does not follow blindly. “We pick and choose based on extensive vetting and we don’t let ourselves be impressed by ‘big words’,” he says. “Some trends have had a major impact on the retail industry, such as omnichannel retail which is causing major disruption, while others are still to show their worthiness. It falls to us to use our better judgment and expertise in the field in order to adopt the best solution possible and 18
follow the route that will have a positive impact on our business.” To this end, ABC will vet technology both internally and externally through the use of technology vendors and filter innovation and solutions through variable committees like the company’s Customer Experience Committee (CEC). “The CEC or the steering committee will analyse the business impact and the ROI both locally and globally,” says Harb. “Once approved, we then proceed with a final round of validation in order to ensure there are no hidden costs or impacts and that it fits exactly to our needs.” Ultimately, those needs revolve around the customer and their experience. Harb JANUARY 2019
“ We were the first to implement an intuitive business intelligence system with predictive analysis and machine learning” — Elie Harb, Head of IT and PMO, ABC
TECHNOLOGY
notes that technology has opened up greater communications and visibility with its customers, something that he feels is an edge that no other retailers can offer. This is best exemplified through its mobile application. “Our mobile app ensures that our customers are always connected and informed about what we are doing for them,” he says. “It gives the customer full control over their loyalty points to redeem at any time without the need of physical interaction.” This loyalty scheme was extended to all shops within ABC’s department stores and malls, which vastly improved customer satis– 19 E X E C U T I V E P R OF IL E
Elie Harb An experienced IT professional, with more than 18 years working in the technology space, Elie Harb is currently the IT and Project Management Officer at ABC Sal. In this role, Harb is tasked with keeping ABC Sal at the forefront of innovation and technology, having overseen a major companywide digital transformation based on four pillars: enabling state of the art customer experiences, business enhancements and innovations; productivity increase and automation; infrastructure and stability. Harb is a key driver of the digital transformation and looks to steer the company towards understanding how best to capitalise on the technologies on hand in order to optimise and automate business processes, enhance customer experience and improve productivity, all the while keeping a stable, updated and secure platform.
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ABC
20
JANUARY 2019
TECHNOLOGY
faction. The company also became the first retailer to implement mobile POS within its malls to drastically reduce queues and allow for fast checkout during high seasons. “We also have digital signage, our VR way finding systems and free Wi-Fi. Combine all of our digital initiatives and we have created an incredibly unique customer experience that cannot be matched by other malls.” For more than 75 years, ABC has strategically invested into technology in order to cement its position as the leading retailer in the market. Investing in technology is important, but Harb understands that the true enabler for ABC’s success today and tomorrow is its people. “At ABC, we believe that our greatest asset is our employees,” he says. “ABC takes employee development very seriously and makes it a high priority. Part of this development is participating in seminars, expos and developmental courses in each field. We’ve established an internal training academy and created programs specific for retail and our way of business and enrolled key people in them. We also built a talent academy to retain, motivate and promote talents.” ABC’s investment into its people matches that of its investment into technology. It has and will continue to prove key in enabling opportunities and growth into the future. “We will continue to invest in innovation, technology and people,” says Harb. “We’ll do this to keep them updated and to not allow them to become obsolete or lose the investment placed in them and to continue to be the retailer of mi ddl e e a st .busi ne ssc hief. com
21
ABC
22
“ We will continue to invest in innovation, technology and people” — Elie Harb, Head of IT and PMO, ABC
JANUARY 2019
TECHNOLOGY
choice in the country.” The future is bright for ABC. The company has already begun to make inroads into ecommerce and omnichannel that will be launched in 2019 and is also in advanced negotiations with some major brands to represent them in the country. As Harb looks to that future, he can reflect on the digital journey of ABC and the lessons learned along the way. “It has been a challenging and interesting journey. The main take away would be to always challenge the status quo, build on solid ground by choosing the right partners, technologies and peoples and always be on the watch for disruptive technologies or market shifts. Internal communication, openness and team work are also key in any venture. “From our past experience, we believe that constant evolution by pushing our limits and boundaries, market and trends awareness, employee development and most importantly customer satisfaction are the main pillars to achieve business success.”
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LEADERSHIP
26
BICS: growing in the Middle East amid technological change Business Chief speaks to Regional VP of BICS Middle East, Abdelkader Najja, regarding the challenges of operating in the Middle Eastern market and the importance of embracing the latest technology trends WRITTEN BY
JANUARY 2019
SE AN GA LE A-PACE
27
e
mi ddl e e a st .busi ne ssc hief. com
LEADERSHIP
S
eeking and establishing
the Middle East is simply just the ability
a presence in the Middle East is
to be able to do business.”
no straightforward task. Amid
constant technological change,
GROWING IN THE MIDDLE EAST
companies must continuously evaluate
Although operating in the Middle East
and adapt the way they conduct their
can be challenging, Najja affirms that
operations. Having cemented a place
there is opportunity for success in the
in the Middle Eastern market for more
market so long as companies are
than 15 years, telecommunications firm
prepared to adapt to the change in
BICS is renowned for forming close relationships with customers and also providing local expertise in the manag– ement of business relations at a com– 28
mercial and technical level. Regional VP for BICS Middle East, Abdelkader Najja, believes that the challenges of operating a business in the Middle East and North Africa as well as keeping up with the latest trends are ones which the company is dealing with well. “I think the Middle East and North Africa are the most interesting regions in the world. Nothing is ever straightforward and easy,” says Najja. “Conducting business in areas such as Iraq, Yemen, Libya, Iran or Syria and having a meeting there, isn’t the same as having a meeting in Paris. You can’t have a one-hour meeting and fly back home again. I believe the biggest challenge in JANUARY 2019
29 culture. “There represents an opportunity all over the region. The moment you’re able to do business in the Middle East, you’re able to connect with more customers and offer them solutions,” explains Najja. “If companies come here with a Western mindset then they won’t succeed. It’s important to be flexible, patient and culturally sensitive. There are a lot of unwritten rules that you need to master to be successful in this region.” Najja notes that despite some telecos experiencing a decrease in market share, BICS has continued to succeed due to mi ddl e e a st .busi ne ssc hief. com
LEADERSHIP
30
CLICK TO WATCH: ‘BICS – CONNECTING THE WORLD, ENABLING VALUE’
“ I think the Middle East and North Africa are the most interesting regions in the world. Nothing is ever straightforward and easy”
JANUARY 2019
the way it prioritises its customers’ needs. “What makes me proud is that despite a declining market, BICS has still been able to maintain its position in the industry and achieve growth in a region where lots of other companies are losing their market shares,” he says. “However, in order for us to sustain this success, it’s important that we maintain our relationships, be available, flexible and most importantly to be there for the customer at all times. We must also think about new services that we can offer in order to meet the needs of our customers and help to create new revenue streams.” With more than 100 customers in the Middle East, BICS work with some of the biggest operators including firms such as STC Saudi Arabia, Zain Saudi Arabia, Omantel, Maroc Telecom, INWI Morocco and Etislat UAE. It has enabled BICS to become more prominent in the region and improve its service efficiency as well as allowing customers to make significant cost savings when connecting to BICS’ network. “We’re connected to over 100 mobile operators, wholesalers and aggregators. At the end of the day, everyone’s a partner, a customer and a supplier. The moment I send an SMS for instance to STC Saudi Arabia, I use them as a supplier and if they send me something back, they use me as a supplier,” explains Najja. “We’re partnering with everyone but, of course, we have special relationships with some of them depending on the size of the business and the projects that you’re doing with them.” mi ddl e e a st .busi ne ssc hief. com
31
LEADERSHIP
32
EVOLVING WITH THE DIGITAL TRENDS
before social media began,” recalls
In order to sustain success, BICS has
Najja. “I believe BICS has evolved from
had to observe and adapt to the latest
a traditional telecom wholesaler into
trends in a bid to keep up with how the
a major player in the digital market. We
world is changing. With technology
have transformed to serve the biggest
accelerating at ever-increasing rates,
mobile data footprint, covering the
Najja reflects on how digital technology
roaming world and the voice world. We
has transformed the telecoms industry
have stepped into the digital and security
in the last few years.
world. In order to have survived in this
“With the world around us evolving, it’s important that we change too. I can remember the first mobile phone and
market, it was critical that we adapted and evolved tremendously.” With the number of voice calls
the beginning of the internet. I can
shrinking rapidly, Najja understands the
remember the start of technology
importance of understanding customer
JANUARY 2019
“ In order for us to sustain this success, it’s important that we maintain our relationships, be available, flexible and most importantly there for the customer at all times” 33
trends “Due to the arrival of new tech–
order to keep diversifying the way its
nology, there are fewer calls being
customers are served. “We’re like
made around the globe. People prefer
ambassadors because we’re out there
communication methods such as
in the market and see our customers
WhatsApp, Instagram or Snapchat and
every week,” he says. “We visit them
everything is moving towards a full data
and they visit us, so our eyes and ears
world where voice calls are declining,”
are open. We understand our custom-
he says. “I’m also very excited to see
ers needs and find out what’s changing
how 5G will impact the region, with the
in the market and how this will impact
introduction of the new headsets and
us as a company. We provide this
services that are incoming.”
feedback back to BICS and see how
With the future in mind, Najja affirms how important it is that BICS hold a
we can adapt to serve our customers in a better way. It’s vital.”
continued presence in the region in mi ddl e e a st .busi ne ssc hief. com
TECHNOLOGY
A CUSTOMER JOURNEY DRIVEN BY DATA 34
Business Chief sits down with Omnistream founder Wendy Chen to find out how she’s using new methods and old tricks to survive and thrive in Singapore and beyond. WRITTEN BY
HARRY MENEAR
WRITTEN BY
JANUARY 2019
NA ME SURNA ME
35
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TECHNOLOGY
W
endy Chen began her career in finance. She worked as a trader for both Barclays and Jane Street Capital, largely special-
ising in ‘quant’ trading: large transactions involving
the sale and purchase of thousands of shares at once. “I was doing quant trading for a while”, Chen recalls, “and I saw this opportunity to bring that same type of thinking to enterprises in Asia”. With her trading experience, Chen saw an opportunity to levy her skills and experience from the finance sector and apply them to a new market and a new company. Reflecting on the genesis of Omnistream, Chen confides that “what’s really interesting about 36
the quant trading business is that so much of the secret sauce is in how you operationalize the algorithms - how you think about business continuity and operational data.” She founded Omnistream in 2013 with the goal of using a ‘quant’ trading’s algorithmic, machine learning-powered methods to provide a statistics-driven retail analysis service, capable of keeping up with “how fast things are changing” in South East Asia and other emerging markets. “Speed and automation are quite important”, Chen explains. “Given infinite time and infinite humans, you could probably replicate a lot of analytics. However, you’re talking about customers who want solutions in five days, not five months”. “It’s very hard for Western enterprises to service South East Asia. A lot of it is just costs structure. JANUARY 2019
“ GIVEN INFINITE TIME AND INFINITE HUMANS, YOU COULD PROBABLY REPLICATE A LOT OF ANALYTICS. HOWEVER, YOU’RE TALKING ABOUT CUSTOMERS WHO WANT SOLUTIONS IN FIVE DAYS, NOT FIVE MONTHS” — Wendy Chen, Omnistream founder
37
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TECHNOLOGY
They’re earning nice, juicy margins in the US and in the UK. It’s really hard for them to take that really high-touch, highcost structure they have for servicing customers and bring it to South East Asia.” Chen saw a gap in the market for a new style of analysis and consulting service. Talking about the difference between Omnistream and its competitors, she explains: “it’s a very different service. We probably don’t customise nearly as much, because we don’t spend nearly 38
as much time consulting. We also don’t do as many in-person surveys; we’re more data-driven.” Omnistream’s more one-size-fits-all approach means it can offer its services at a rate that is significantly lower than those of traditional consulting and analytics firms. Chen laughs, “if you look at some of the income statements from these publicly traded companies, you’ll see that they cost a good soul.” “Because we answer the same questions the same questions over and over again, we don’t need to give our customers all the bells and whistles.” She explains the service Omnistream provides as “just answering three quesJANUARY 2019
Wendy Chen, Omnistream founder
39 tions: where do you put a store? What do you put in a store? And at what price do you sell it?” Omnistream answers these questions using three types of data which it feeds into its complex computational algorithms to create its insights. First, transactional data — “whatever it is the business generates by operating”—that can include everything from local foot traffic to loyalty program participation. Second, “there’s open, external data”, says Chen. “What we mean by that is how far away are your closest competitors? Are they down the mi ddl e a st .busi ne ssc hief. com
TECHNOLOGY
40
road? Are there lots of them? Are they different?”
The third element of Omnistream’s service relies upon the application
Open data also deals with the number
of proprietary and open data to the
of people within a business’ “catchment
company’s artificial intelligence (AI)
area”. “It sounds obvious”, Chen admits,
algorithms. Part of the service Omni-
“but we’re talking about very dynamically
stream provides is the ‘fine-tuning’
changing countries, so the data from
of its AI software from previously gath-
a year ago is very different to today.”
ered data. Chen explains: “for machine
“We think of a retailer’s addressable
learning to work, your algorithms
world as more than people who just
basically need to have something
walk by,” Chen says. “If there are 120,000
called fine-tuning… you need to train
people who live in your catchment
your AI with lots and lots of data…
area, how come you’re only addressing
So, you need to work with founders
10,000 of them?”
who have worked in similar markets”.
JANUARY 2019
“ BECAUSE WE ANSWER THE SAME QUESTIONS OVER AND OVER AGAIN, WE DON’T NEED TO GIVE OUR CUSTOMERS ALL THE BELLS AND WHISTLES” — Wendy Chen, Omnistream founder
41
While the majority of analysis com-
we had a retailer tell us: ‘stop showing
panies gather this data, which clients
us dashboards. Just tell me what the
then use in-house data analysts to
answer is and why… I don’t want to
decipher, and the majority of consultan-
see your data’, they just want to get
cies rely on the “high-touch, high-cost”
to the solution.”
approach that too often proves too slow
The model is proving effective. In
and too expensive for the emerging
2018, Omnistream began operations
market, Chen has designed Omnistream
in Indonesia, Vietnam and Myanmar,
to offer data-plus-consultancy as
and Chen says the company plans to
a service. Chen reflects that customers
expand into Thailand, Japan, South
just want to know: “Hey! How do I grow
Korea and Malaysia soon.
faster and make more profits?” “Everything in the middle is just chaos and noise.” She recalls that “yesterday
“We use the beachhead strategy”. This method, Chen explains, involves specially selecting a client - ‘a sizeable mi ddl e a st .busi ne ssc hief. com
TECHNOLOGY
42
retailer’ - who is looking to expand into a new market and open to operationalising Omnistream’s insights. Omnistream’s lower cost model makes no attempt to “bill large amounts of money up front. We actually want to do a revenue split with them”: Clients simply pay a portion of any increase in profits related to Omnistream’s services. Chen describes it as: “making an investment”. While currently Omnistream’s operations are restricted to the Asia Pacific markets, its model of data-driven retail consulting is something that JANUARY 2019
Wendy Chen knows “definitely applies to more than South East Asia.” She believes that anywhere where growth and market instability is outpacing the traditional models for consultation and analysis could benefit from the Omnistream model. “The people who win in this region are the ones who can adapt and capitalise on change as it’s happening.” “We’re definitely looking at the whole emerging world.” The faith Wendy Chen has in her venture is undeniable. She is throwing her startup into an ecosystem where, more than anything, being nimble is key. Omnistream’s outcomes-as-a-service structure is a testament to her confidence in its agility and ability to bring drastic cost reductions to its chosen clients. Chen laughs again: “How many big enterprise players actually say ‘Hey, only pay us if you win?’”
mi ddl e a st .busi ne ssc hief. com
43
CITY FOCUS
King Abd Econo City Focus
44
JANUARY 2019
dullah omicCity WRITTEN BY
SEAN GALEA-PACE
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45
CITY FOCUS
Amid ongoing development, Business Chief explores Saudi Arabia’s newest metropolis, the King Abdullah Economic City, and delves deeper into what it has to offer
L
ocated in the middle of a desert, Saudi Arabia’s King Abdullah Economic City (KAEC) is cer-
tainly different to the average city. The city, which isn’t scheduled to be fully completed until 2035, has been under con46
struction for the last 10 years and has seen around 15% of the total work completed so far, Mail Online reports. The report adds that the new megacity is anticipated to cost approximately GBP£67bn (USD$85.4bn) and will be built around 70 square miles, with the project considered as a major innovation for the Kingdom. The KAEC is understood to be slightly larger than Washington DC and is expected to operate as the main logistics and manufacturing hub for countries beside the Red Sea, Mail Online reports. Although it is a work in progress, there were 7,000 residents in the city as of 2017 and it is expected that 50,000 people will have moved in by 2020, JANUARY 2019
CLICK TO WATCH : ‘A BRIEF REPORT ON THE LATEST PROGRESS IN KING ABDULLAH ECONOMIC CITY’
according to the Mail Online. Emaar Economic City is a publicly traded Saudi company that runs the entire KAEC project. The firm’s Managing Director, Fahd Al-Rasheed, told BBC news that he believes a new generation of Saudis are expecting a city which offers a lifestyle similar to that of studying abroad. “We’re building with the 65% of the population who are under 30 in mind,” he said. “We have almost 200,000 Saudis studying abroad and inevitably they are going to change things when they come back.” mi ddl e e a st .busi ne ssc hief. com
47
CITY FOCUS
48
Aligning to the Saudi Vision 2030
in areas such as women’s rights, the
The KAEC is the latest venture in Saudi
National Transformation Programme
Arabia as the Kingdom aims
and the Red Sea luxury resort project.
to diversify its offering away from oil. In
In particular, the arrival of the King
2016, the Crown Prince, Mohammad
Abdullah Port has been considered an
bin Salman, announced plans
important project and is already recog-
to reduce the country’s reliance on oil
nised as a major port worldwide, having
and develop other sectors such as
been developed to handle the world’s
health, education, infrastructure, rec-
largest vessels. In its position as a
reation and tourism in a plan called the
prime East-Web hub, it is stationed on
Saudi Vision 2030. Since the Vision
the main trade route between Asia and
was formally announced, Saudi Arabia
Europe and it is hoped that shipping
has experienced tremendous transfor-
lines will save a number of days by
mation with significant progress made
diverting traffic to the port.
JANUARY 2019
Pfizer has formally launched its manufacturing facility in the KAEC after confirming the start of operations for a number of life-changing medicines at the plant for its Saudi Arabian patients, according to Saudi Gazette. The launch of the facility saw Pfizer show its support for the Saudi government’s Vision 2030 and National Transformation Programme 2020. In a statement, Prince Saud Bin Khalid Al Faisal, Acting Governor of SAGIA, commented: “Pfizer is one of the international companies investing in the Kingdom and this manufacturing facility is a concrete example of
‘ The new mega city is anticipated to cost approximately USD$85.4bn and will be built around 70 square miles’ Business in the KAEC
its contribution to the expansion of
With construction and development
a localized pharmaceutical industry.
contracts for the city reaching
This is the result of our ongoing and
USD$320mn in 2018, the unfinished
effective public/private sector part-
city has already seen over 110 com-
nership approach which is driving
panies hold facilities in the KAEC,
towards achieving the development
according to Construction Week
goals of the Kingdom, crystallized by
Online. In 2017, it was announced that
Saudi Arabia Vision 2030.” mi ddl e e a st .busi ne ssc hief. com
49
CITY FOCUS
Other companies which have already confirmed facilities in the KAEC include Sanofi who unveiled a production facility in the city and became the first multinational pharmaceutical group to produce locally in the Kingdom. Antoine Ortoli, Sanofi Senior Vice President, Intercontinental Region, considered the move as a milestone in Sanofi’s presence in the Middle East and believed it was a fantastic oppor50
tunity to contribute to the local community and economy. “This facility works on many levels for many stakeholders,” he said in a statement. “For Sanofi, it provides a chance for us to consolidate our presence in the region and grow our business in what is becoming an increasingly important Saudi market,” he said. “For Saudi Arabia and its citizens, the opening of this facility will mean job creation, research and development opportunities and training in all aspects of the pharmaceutical industry.”
JANUARY 2019
‘ It is expected that 50,000 people will have moved in by 2020’
51
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CITY FOCUS
Leisure The city is home to six distinctive districts: Al Murooj, Bay La Sun, Al Talah Gardens, Al Waha, Al Shurooq and Al Hejaz Miram. Away from work, the city is also home to a state-of-the-art golf course at The Royal Greens Golf and Country Club in the Al Murooj district which boasts majestic views of the Red Sea from the clubhouse and provides facilities such as private dining, 52
a board room, library and cigar room among other high-end amenities. In addition, Al Murooj offers the luxurious Esmeralda health and leisure club which is located within a gated community for privacy and security and is also home to sun-kissed sandy beaches. With Al Talah Gardens providing a nature retreat and Al Waha offering walking and cycling trails, there is a diverse range of options to relax in this progressive city.
JANUARY 2019
53
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T O P 10
54
JANUARY 2019
Top 10
most valuable brands in the Middle East Business Chief Middle East takes a look at the top 10 most valuable brands in the region, according to the Brand Directory rankings for 2018 WRITTEN BY
HARRY MENEAR
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55
T O P 10
56
10 du
Rebranded as du in 2007, the Emirates Integrated Telecommunications company is the smaller of the two telecom operators in the United Arab Emirates. According to Brand Directory, du’s brand was valued at US$2.64bn in 2018, an annual increase of US$621,000. The company rose by four places in the rankings between 2017 and 2018. According to the company’s website, du currently caters to 9mn individual customers and 100,000 businesses in the UAE.
JANUARY 2019
57
09
Emaar Properties Founded in 1997, Dubai-based real estate developer, Emaar Properties, manages a portfolio of properties including residential communities, shopping malls, hostels and resorts, according to Forbes. Brand Directory valued Emaar Properties at US$2.67bn in 2018, a US$728,000 increase year over year. Rising by five places in the Brand Directory rankings, Emaar Properties is the second-most improved brand on the top ten list.
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T O P 10
58
08
First Abu Dhabi Bank The First Abu Dhabi Bank was founded in 2017 following the merger of First Gulf Bank and the National Bank of Abu Dhabi, making it the newest brand in the top ten list. Brand Directory values the bank at US$3.1bn. In November 2018, the First Abu Dhabi Bank reported it had completed the first “Sharia-compliant blockchain transaction”. According to Reuters, sukuk, a legal instrument also known as “sharia compliant” bonds, allow investors to generate returns “without infringing on Islamic law”. The report also added that First Abu Dhabi Bank “is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk.”
JANUARY 2019
59
07
Ooredoo Qatari telecom giant, Ooredoo, is headquartered in Doha and serves 138mn customers across 10 countries in Africa, Southeast Asia and the Middle East, according to the company site. In 2018, Brand Directory valued the Ooredoo brand at US$3.36bn, representing a US$265,000 increase year-on-year. Ooredoo fell one place in the rankings compared with 2017. According to Forbes, the company reported a net loss in profits of almost US$100,000.
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06
Emirates NBD Formed in 2007 by the merger of Emirates Bank International and the National Bank of Dubai, Emirates NBD controls US$125.9bn in assets, with 228 branches and 1,057 ATMs in the UAE and abroad. The company is ranked 21st on the Forbes list of top regarded companies 2018. Brand Directory values the Emirates NBD brand at US$3.53bn, representing a US$128,000 increase year-on-year. The brand fell one place in the rankings from 5th in 2017.
JANUARY 2019
61
05
SABIC Headquartered in Riyadh, Saudi Arabia, the Saudi Basic Industries Corporation (SABIC) engages in the manufacturing of petrochemicals, plastics, agri-nutrients, metals, resins, specialty film and sheet, polymershapes, glazing solutions, and specialty additives and intermediates, according to Forbes. In 2018, SABIC reported net sales of US$41.9bn, representing a 10-year high point for the company. Its brand valuation also rose from US$2.09bn to US$3.72bn, rising as a result by eight places in the Brand Directory rankings, the largest year-on-year increase of any company in the top ten.
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T O P 10
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04
QNB The Qatar National Bank engages in the provision of Islamic banking services to corporate and consumer interests. Founded in 1964, it is the oldest brand in the top ten. In 2018, Brand Directory valued the QNB at US$4.23bn, a US$406,000 increase year over year. The bank’s brand remains in 4th place on the top ten list.
JANUARY 2019
63
03
Emirates A subsidiary of the Emirates Group, Emirates is a purveyor of luxury travel options and was ranked the most valuable airline in the world by the 2018 TripAdvisor Travelers’ Choice award. The brand’s value decreased year-on-year in 2018, from US$6.08bn to US$5.33bn, and descended from 2nd place in the Brand Directory rankings.
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T O P 10
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02
STC Trading under STC, Saudi Telecom Company is the largest provider of telecommunications services in Saudi Arabia. The company is based in Riyadh and controls a net asset portfolio of US$30.7bn. In 2018, the company’s brand was valued at US$6.65bn by Brand Directory, a US$433,000 increase year-on year. In 2017, STC held the rank of the Middle East’s most valuable brand.
JANUARY 2019
65
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T O P 10
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JANUARY 2019
67
01
Etisalat Based in Abu Dhabi, Etisalat is the largest telecommunications provider in the Middle East and the region’s most valuable brand. The company rose from the 3rd position in the Brand Directory rankings in 2018 and its valuation grew from US$5.51bn to US$7.7bn. This year-on-year growth of US$2.19bn is the largest experienced by any company in the top ten. In October, Etisalat became the first Middle East telecom provider to offer eSIM services for customers with smartphones, according to a report by Gulf Tech News. mi ddl e e a st .busi ne ssc hief. com
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JANUARY 2019
H E A LT H C A R E
Navigating digital transformation in Saudi Arabia with Fakeeh Healthcare WRIT TEN BY
SE AN GA LE A-PACE PRODUCED BY
CR AIG DANIEL S
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69
F A K E E H H E A LT H C A R E
70
Executive Vice President of Fakeeh and Chairman of Kameda Arabia, Sanjay Shah, discusses how his group is embracing new technology systems amid rapid change across Saudi Arabia
I
n an era of technological change, it has become vital for all companies to innovate
in order to stay ahead of their rivals. In a country driven by transformation, Fakeeh Healthcare has been a pioneer in the healthcare industry in Saudi Arabia. Since it was founded by Dr. Soliman Fakeeh in Jeddah in 1978, Fakeeh has experienced two major expansions in the form of the 1986 inauguration by King Fahd bin Abd al-Aziz, which saw the facility’s inpatient capacity increased, and the addition of two new structures to the Fakeeh JANUARY 2019
H E A LT H C A R E
71
Hospital campus in 1999. Executive Vice President of Fakeeh, Sanjay Shah, believes that its Fakeeh’s willingness to improve its services consistently that has acted as a catalyst for this success. “Fakeeh’s journey began with the current president’s father, the late Dr. Solomon Fakeeh, and he was really the key reason for the company’s early success,” says Shah. “That tradition has carried over with under his son’s leadership and completely changed the face and the path of Fakeeh. We have increased the visibility, penetrami ddl e e a st .busi ne ssc hief. com
F A K E E H H E A LT H C A R E
72
JANUARY 2019
H E A LT H C A R E
tion, pioneering to become leading edge. We’re very proud of our legacy and heritage and we want to continue that as much as we can.”
CONFORMING TO THE SAUDI VISION 2030 Shah draws on Fakeeh’s determination to help improve lives as a key reason it has achieved such significant success. “We are all about transforming lives,” he notes. “Fakeeh is known in the market for its clinical excellence and compassionate care. One of the most important attributes is that it believes in health edu– cation and that remains the real differentiating factor from our competitors.” As the Kingdom of Saudi Arabia looks to diversify its reliance on oil and seeks to develop public services such as education and health, it remains vital that all companies align themselves to the Saudi Vision 2030. Shah believes that Fakeeh are taking its contribution to it very seriously. “We’re incumbent on developing the 2030 plan and improving the wellbeing of the populations of Saudi. We take the primary care element very seriously and it’s a very important part of the vision for 2030,” says Shah. “Developing private medicine and transferring some of the mi ddl e e a st .busi ne ssc hief. com
73
F A K E E H H E A LT H C A R E
assets perpetually from public to private
introduced a new hospital information
ownership or operation is a very
system called Yasasii, which was
important element and we want to
formed out of a joint collaboration
participate in that,” he adds. “We
between an Indian and Japanese
really want to be the cornerstone of
software house. The system, which
this vision. We welcome and encour-
utilises all aspects of a healthcare
age it and we look forward to playing
institution, ensures healthcare profes-
a significant part in this exciting
sionals can monitor the functioning and
transformation for the Kingdom.”
management of all departments while also increasing Return On Investment
EMBRACING NEW TECHNOLOGICAL SYSTEMS
(ROI) for the company and saving lives.
In order to keep up with the latest
embrace disruptive technology at an
technology trends, Fakeeh has
increased rate,” explains Shah.
“We are seeing the whole industry
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H E A LT H C A R E
CLICK TO WATCH : ‘FAKEEH SMART HOSPITAL’ 75
“ We’re incumbent on developing the 2030 plan and improving the wellbeing of the Saudi population. We take the primary care element very seriously and it’s a very important part of the vision for 2030” — Sanjay Shah, Executive Vice President, Fakeeh Care
“Fakeeh’s focus is to make technology a true enabler. It’s about patient care from the outset and returning patients safely back into the community and into their homes. We want our tools to embed the best practices that are beginning to come to market and we want to utilise machine learning and artificial intelligence in order to enable faster access and reach the best outcomes for patients and improving patient safety.” As the only standalone primary care location in the Gulf Cooperation Council to be awarded a HIMSS 6 certificate mi ddl e e a st .busi ne ssc hief. com
F A K E E H H E A LT H C A R E
(a significant milestone for professional development of knowledge in the field), Shah credits Fakeeh’s technology platform as key to his significant achievement. “It’s a very big accolade for our technology platform which I believe is one of the most superb platforms I have come across,” affirms Shah. “It’s helped decision making for all members within the care community, whether that be a physician, pharmacist or nurse, from management information all the way through to complete technician support. We have a very powerful platform and we 76
want to grow that as much as possible.” With technology becoming increasingly vital to Fakeeh and its patients, Shah believes that the implementation of the company’s new digital tools has allowed the firm to provide its hospitals with the latest innovations. “We are using the latest technology tools in our smart hospitals to provide the latest technology for a superior hospital experience, similar to a luxury hotel. We have also set up an offshore regional research hub in southern India to enable smarter and automated techniques,” explains Shah. “We have already introduced robotics in some of our operation departments in order to remove low JANUARY 2019
H E A LT H C A R E
77
E X E C U T I V E P R OF IL E
Sanjay Shah A Board Member & Executive Vice President at Fakeeh since 2015, Shah has overseen the development of the state-of-the-art 260 bedded hospital, rehab and academic medical centre in partnership with University College of London Hospital in Dubai. The projects Shah is currently working on include eight Family Medical Centres in Saudi Arabia and UAE, diabetes and urgent care centres in Jeddah and Dubai, and Surgical Tower.
mi ddl e e a st .busi ne ssc hief. com
F A K E E H H E A LT H C A R E
“ We are using the latest technology tools in our smart hospitals to provide a superior experience, similar to a luxury hotel” — Sanjay Shah, Executive Vice President, Fakeeh Care
78
end tasks and we will continue to invest in this technology. We see technology giving us a special advantage over our competitors and see this as our core competency.” Looking to the future, Fakeeh plans to diversify the business by developing JANUARY 2019
H E A LT H C A R E
a hospital and medical university in
centers of excellence, such as neurosur-
Dubai Silicon Oasis in a bid to estab-
gery, cardiac, cardio-thoracic, spine
lish the brand in the United Arab Emirates.
surgery, orthopedics, oncology and
Shah believes that new facilities such
ENT. It’s a very unique set up and its
as this are key to the future growth
one of a kind with nothing similar
and development of Fakeeh. “It’s a
currently available in Dubai.”
very important facility,” he says. “We are going to have a helicopter pad in order to cater for trauma patients. We’re trying to provide to a market which is going to be very distinctive and must deal with trauma cases, 79
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JANUARY 2019
S U P P LY C H A I N
Transforming supply chain strategies at Petro Rabigh WRIT TEN BY
SE AN GA LE A-PACE PRODUCED BY
HE Y K EL OUNI
81
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PETRO RABIGH
Michael Gustafson, General Manager of Material, Procurement and Contracts discusses the procurement methods that Petro Rabigh is utilising through significant change in Saudi Arabia
82
I
n a country driven by change amidst the incoming Saudi Vision 2030, companies in Saudi Arabia have an obligation to
adapt to and embrace the latest trends in order to thrive in a competitive petrochemical industry. With ambitions of becoming one of the most profitable refinery and petrochemical plants in the world, Petro Rabigh knows first-hand just how vital the next few years are to the future of Saudi Arabian businesses. Originally formed in 2005 as part of a joint venture between Saudi Aramco and Sumitomo Chemical, Petro Rabigh produces 18.4mn tons per annum (mtpa) of petroleum-based products and 2.4mtpa of ethylene and propylene-based derivatives. With the plant’s Phase I and recently launched Phase II together valued in the region of $20bn, Michael Gustafson, General Manager of Material, Procurement and Contracts, believes that these JANUARY 2019
S U P P LY C H A I N
“ We have two incredible foundation partners in Saudi Aramco and Sumitomo Chemical; a terrific partnership with aligned goals that have brought the strengths and diversity of two great organisations into this project” — Michael Gustafson General Manager of Material, Procurement and Contracts
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83
Working for the futu
Founded in 1968 as an industrial service and supply unit, Eastern Msar is recogniz of the biggest and leading business conglomerates in the Kingdom of Saudi Arabi
Eastern Msar provides services to oil & gas, chemical & petrochemical, power, wa mining sectors.
Eastern Msar values understanding the past, participation for the present and wo the future. With a partnership that is pursued through agency or joint venture arrangements covering company representation, trading, contracting, services, engineering and construction, commissioning and support.
The company works with leading companies such as Petro Rabigh, Saudi Aramco Aramco JV’s, Sabic, Saudi Electricity Company, Ma’aden and SWCC etc.
Eastern Msar has continued to rise to challenge and achieve new goals through it the clock services within new and established industries.
Companies we work with:
ure FIND OUT MORE
zed as one ia.
ater &
orking for in activities
o, Saudi
ts round
PETRO RABIGH
foundation partners laid the ground
MAINTAINING PROCUREMENT STRATEGIES
work for the company’s success.
As a way of affirming Petro Rabigh’s
“We have two incredible foundation
86
commitment to the Saudi Vision, the
partners in Saudi Aramco and Sumi-
company has confirmed the imminent
tomo Chemical; a terrific partnership
arrival of The Petro Rabigh Phase II
with aligned goals that have brought
expansion project, which provides an
the strengths and diversity of two
even more diversified product slate
great organisations into this project,”
with the implementation of a number
says Gustafson. “Both companies
of new high added value petrochemical
possess a deep set of technical and
products. The project is set to cost
commercial experiences and world
approximately $9.4bn with capital
class product mix that continues to
project debt funding. Gustafson
improve with expansions to capitalize
outlines the procurement strategy his
on the strategically placed location
company is utilising in this exciting
and resources.”
new era for the Kingdom.
JANUARY 2019
S U P P LY C H A I N
“ People think of procurement as being some sleepy, back office support group – but it’s not. You’re actually on the front line and if this spare part, chemical additive, or catalyst doesn’t arrive on time, you could shut down a facility” — Michael Gustafson General Manager of Material, Procurement and Contracts
87
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S U P P LY C H A I N
“We’ve almost finished Phase II to
handling and procurement all housed
expand our business. It’s like you’re
under the same roof. Gustafson
running on a treadmill and the speed
maintains its current procurement
is set at a six-minute mile but you’re
strategy is to enhance its existing
used to running an eight-minute mile,”
arrangements.
he explains. “People think of procure-
“In general, the majority of our
ment as being some sleepy, back
strategy is to push our agreements
office support group. But, it’s not.
and expand into MRO and chemical
You’re actually on the front line and if
agreements,” he explains. “This is
this spare part, chemical additive, or
opposed to the ongoing spot buying
catalyst doesn’t arrive on time, you
that takes place, which decreases the
could shut down a facility.”
time it takes to turnaround, as well as
Procurement is certainly an area that Petro Rabigh prioritises. The
the cycle time.” In a bid to handle its supply chain
firm has three different departments
items more effectively, Petro Rabigh
operating in that area of its organisa-
has made the decision to split into
tion; with contracting, material
two separate groups.
E X E C U T I V E P R OF IL E
Michael Gustafson Having joined Petro Rabigh in 2017, Michael has used his 25+ years of experience and knowledge from working in commercial and business development, acquisitions, divestiture and supply chain management to develop the supply chain infrastructure for the $20bn Refinery & Petrochemical business in Saudi Arabia. Michael has outlined his intention for Petro Rabigh to embrace the incoming Saudi Vision 2030 and is responsible for driving the company’s procurement strategy.
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89
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S U P P LY C H A I N
CLICK TO WATCH : PETRO RABIGH ENRICHING LIFE 91
“The group here in Saudi Arabia handles all the inbound supply items and we have a separate organisation that is responsible for the finished goods and products. It’s primarily more of a marketing and sales function,” explains Gustafson. “Alongside that, there’s the production planning which coordinates what the needs of the refinery and petrochemical business are, as well as the requirements of our customers. I believe it’s very much a collaborative effort to enable the supply chain to get going.”
“ The group here in Saudi Arabia handles all the inbound supply items and we have a separate organisation that is responsible for the finished goods and products. It’s primarily more of a marketing and sales function” — Michael Gustafson General Manager of Material, Procurement and Contracts
mi ddl e e a st .busi ne ssc hief. com
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Continuously growing its expertise to help better serve its markets, HOEIT is associated with world leaders in supply and solutions.
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S U P P LY C H A I N
93
With the company investing almost $400mn annually on its supply chain
tives, all the way to papers and pens. We cover the full spectrum.”
activities, Gustafson is well aware just how big Petro Rabigh’s supply
EMBRACING SAUDI VISION 2030
chain is. “The magnitude of it is that
In a bid to reduce Saudi Arabia’s
it spans to over 2,000 suppliers
reliance on oil and diversify its economy,
worldwide that are split evenly
Crown Prince Mohammad bin Salman
between America, Asia and Europe,”
announced plans in 2016 to launch
says Gustafson. “Of those, we have
Saudi Vision 2030. With around 80
around 1,200 really active, highly
projects expected to be completed in
consumable suppliers. They deal
Saudi Arabia by 2030, Gustafson
with everything from highly danger-
believes it’s an interesting time to be
ous explosive and chemical addi-
involved in such a historic process. mi ddl e e a st .busi ne ssc hief. com
PETRO RABIGH
C OMPA N Y FA C T S
94
Rabigh Refining & Petrochemical Co. — Petro Rabigh — was founded in 2005 by the Red Sea in the Kingdom of Saudi Arabia as a joint venture between Saudi Aramco and Sumitomo Chemical from Japan. The original 10-billion dollar Phase I of the plant is the world’s largest single-phase integrated refining and petrochemicals complex, making the company one of the Kingdom’s largest producers of polypropylene, polyethylene and mono ethylene glycol, and the sole producer of propylene oxide in the Middle East. The Phase II expansion, which came into full operation in early 2018, diversifies the product slate with new high value-added petrochemicals aimed at making the Kingdom’s downstream industry more competitive and affording potential investors the opportunity to manufacture new products and create new jobs and skills.
JANUARY 2019
S U P P LY C H A I N
95
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S U P P LY C H A I N
“ These are exciting times for Saudi Arabia.When I tell my friends about it back home in America, I feel like I’ve got a front row seat,it’s a major transformation in the Kingdom and these are fabulously exciting times.There are things going on in Saudi Arabia that are truly historical” — Michael Gustafson General Manager of Material, Procurement and Contracts
97
“These are exciting times for Saudi Arabia. When I tell my friends about it back home in America, I feel like I’ve got a front row seat,” explains Gustafson. “It’s a major transformation in the Kingdom and these are fabulously exciting times. There are things going on in Saudi Arabia that are truly historical.” Petro Rabigh has responded to Vision 2030 by embracing all 24 areas highlighted in the vision to provide a thriving economy, a vibrant society and an ambitious nation for the Kingdom of Saudi Arabia. In order to meet these mi ddl e e a st .busi ne ssc hief. com
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S U P P LY C H A I N
requirements, Petro Rabigh has rolled
doing a great job,” says Gustafson.
out a number of initiatives such as plans
“We also have several women within
to increase women’s participation in the
the supply chain organisation and we
workplace, supporting improvements
intend to hire more in the future.”
to logistics and building relationships ments. However, Gustafson insists
FORMING KEY STRATEGIC PARTNERSHIPS
Petro Rabigh isn’t finished yet.
Establishing and maintaining key
for additional direct foreign invest-
“We could and will do more in the
partnerships are vital to any success-
area of women participating in the
ful business. Over the last five years,
workplace; I just hired the first female
Petro Rabigh has collaborated with
secretary at Petro Rabigh and she’s
Germany-based logistics firm, DHL,
99
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S U P P LY C H A I N
101
to provide all of its inbound logistics activities, in addition to operating its warehouses. However, having consulted their Key Performance Indicators (KPIs), Petro Rabigh recently split the contract with Kuehne & Nagel to handle all of the company’s international forwarding activities. “We’re very excited with this joint effort between the two companies. It will enable us to draw on the strengths of each company to ensure a smooth supply chain process,” says Gustafson.
“ Rabigh PlusTech Park provides for 37 investors, including nine manufacturing companies that have started production, eight that are under construction and over 30 under negotiations” — Michael Gustafson General Manager of Material, Procurement and Contracts
mi ddl e e a st .busi ne ssc hief. com
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NEMO® Progressing Cavity Pumps
TORNADO® Rotary Lobe Pumps
NETZSCH is the worldwide market leader with their range of application engineered Progressive Cavity Pumps, Rotary Lobe Pumps and Multi-Screw Pumps for the transfer and handling of liquids with high viscosities and high solids content for various applications in the Oil & Gas, Petrochem, Industrial, Mining, Sewage Treatment and Industrial Waste industries.
netzsch.support@mact.com.sa
Find out more online
MACT Al-Khobar 31952 Kingdom of Saudi Arabia Tel: +966 13 882 2233 x133 sales@mact.com.sa
S U P P LY C H A I N
$10bn Approximate revenue
2005
Year founded
3,600 Approximate number of employees
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How have we maintained top sales in the logistics equipment field since our founding in 1972? Chiba Sogyo has continued to support the distribution which is the core of our economic activities. Ever since our founding, we have constantly led the logistics equipment industry. “How can we satisfy customer needs to the greatest possible extent?” – To achieve this goal, we have accumulated knowledge and expertise, and then steadily incorporated this wisdom into our services. CS JAPAN CO., LTD 2-2-18 Tmasakinsi, Ichihara City, Chiba, Japan 2900044 Tel: +81-436-23-0511 Fax: +81-436-23-1611 www.csjapan.net kawarai@csjapan.net
Our Service • Wooden Pallets • Import Pallet • Woooden Frame • Steel Logistics Packaging Equipment • Plastic Pallet • Ship-Building • Sales Warehouse
105
“They are our two primary partners that we’ve got on the logistics side and they’re absolutely essential to us. Our partners have to over-communicate and be joined with us at the hip. DHL and Kuehne & Nagel are two world class organisations and they’ve done a great job.” Gustafson affirms how much Petro Rabigh relies on the consistent performance of its suppliers. “The notable suppliers that have been consistently reliable for our
“ When things start to change,you’ve got to be able to adapt very quickly.Whether it’s changing your grades or the type of product mix that you can develop” — Michael Gustafson General Manager of Material, Procurement and Contracts
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The Perfect PARTNER Synergies Tech Engineering Division caters to customer requirements for Complete MRO packages. With procurement offices in USA and Europe and sales offices in UAE, Oman and Saudi Arabia, we stay committed to providing prompt offers from worldwide suppliers backing it up with on-time delivery and after-sales support.
Our Site
About us
OUR INDUSTRIES: • Petrochemicals • Oil & Gas • Metallurgy • Environmental • Chemicals • Food & Beverage • Printing Consumables • Other
Products
HQ: Unit 101 & 108 Mazaya Business Avenue BB2 Jumeirah Lake Tower Dubai United Arab Emirates P.O Box 114477 KSA Branch Office: Jawhara Al Tabishi Building Suite no. 9, 2nd floor King Faisal Bin Abdul Aziz Road Al Tabishi, Dammam 32415-7184
S U P P LY C H A I N
business include the likes of CS Japan,
industries in Saudi Arabia. Located on
Gold Wing, Axens, EableBurgmann
a site adjacent to the Petro Rabigh
and SPIG. We’re highly dependent on
refinery, it provides a place to convert
the performance of these five out-
petrochemical products into down-
standing suppliers/vendors in
stream products and offer substantial
particular, as well as to
investment opportunities to local
the other 1,200 active suppliers in
and foreign investors in conversion
our network.”
industries. Gustafson believes it’s
The introduction of Petro Rabigh’s
an ideal investment opportunity.
collaboration with Rabigh PlusTech
“This large scale, secure complex
Park saw it become the first private
also houses the Sumitomo Chemical-
industrial estate for conversion
run Rabigh Plastic Technical Centre
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Building
Dreams to
“
“
We’re
Create your own World
Business Tribune Global Co. Ltd. is present in KSA over last 20 years. BTGC undertakes Supply & Services for all types of Industrial Equipment’s & Spares, Effective Technical Support/Services, Power Automation Sales & Service, Procurement Solution and General Trading across KSA.
OUR BRANDS:
KPC
Since, its formation in 1997, BTGC has continuously grown in the market as a leading Technological Solution Provider with diversified interest in the Supply & Services of various Industrial and Engineering products.
+966 13-8560528 +966 13-8560810 www.btc-ksa.com info@btc-ksa.com Our BTGC Management Team.
Business Tribune Global Co Ltd. P.O. Box 12532, 4237 Ad Danah King Abdulaziz Road, Dammam 32437, Kingdom of Saudi Arabia
S U P P LY C H A I N
“ The vision for the future is to continue to make the Material, Contracting and Procurement organisation a great place to work” — Michael Gustafson General Manager of Material, Procurement and Contracts that provides tenants with technical support and training in plastic processing technology, warehousing, plug and use utilities and feedstock
109
supply agreement opportunities for sustainable, competitive prices,” says Gustafson. “Rabigh PlusTech Park provides for 37 investors, including nine manufacturing companies that have started production, eight that are under construction and over 30 under negotiations.”
SUSTAINING A SUCCESSFUL FUTURE Petro Rabigh has begun to explore options to fully automate its warehouse operations and review the way they receive, monitor and move spare parts around. This ability to consistently adapt to change is something Gustafmi ddl e e a st .busi ne ssc hief. com
PETRO RABIGH
Our Website Contact us JANUARY 2019
S U P P LY C H A I N
111
son places a lot of importance on. “In the area of supply chain, I believe we still have work to do in digital transformation,” explains Gustafson.
the moment with climate change and environmental conditions. And if we don’t change, then it’s going to hurt us.” As far as the future is concerned at
“However, in other areas of the
Petro Rabigh, the company has lofty
company there has been much more
ambitions of becoming the best in class
progress made, especially in operations.”
in the Gulf Cooperation Council (GCC)
“When things start to change, you’ve
within the next 18 months. “We have to
got to be able to adapt very quickly.
deliver on the business expectations in
Whether it’s changing your grades or
two areas: 99% availability and on-time
the type of product mix that you can
delivery of materials to support the
develop. You’ve got to stay ahead. We’ve
ongoing operations,” says Gustafson.
got a lot of big changes going on at
“Our processes and practices must mi ddl e e a st .busi ne ssc hief. com
Tel +966 13 341 0515 | Fax +966 13 341 1052 | E-mail info@goldenwing.com.sa | www.goldenwing.com.sa
Golden Wing has been providing industrial solutions for the petrochemical bulk material and wrapping industry in Saudi Arabia for almost 40 years. The portfolio comprises the installation of total systems for filling, palletizing and wrapping as well as conveyor technology. From its history as an equipment supplier, Golden Wing grew into an EPC contractor. Bagging Machines Filling Machines Net/Gross Weighing Palletizing
Golden Wing glances back at the installation of well over 180 facilities in the Middle East and implements new technologies as a partner to the major industries. These include, for example, palletless stretch hood wrapping technology, in which the film itself is a shipping unit, transport security and weather protection - pallet logistics are dispensed with. A new dimension in system cost-effectiveness is opened up: with 60% savings in wrapping overheads and cost savings in the millions.
Load Wrapping
Our Partners
Conveying Liquid Filling Pallet-less Packing
5 years Outstanding Supplier Recognition Award
A leading Safety Solutions company based in Saudi Arabia with Safety Solutions ranging from PPE, Fixed Gas Monitoring, Fire Services, Gas Flow Monitoring and Downstream Technology. With the major focus on insuring that all personnel return back to their families safely.
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S U P P LY C H A I N
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change and this will be enabled through the finalisation of the ARIBA implementation, integration with SAP and further digitalisation of the processes.” “This is crucial for us to handle the increase in volume due to the expanded capacity of the operation. We must reduce the number of touches on work orders from procurement to pay with seamless vendor integration through the process.” Petro Rabigh also plan to begin to take steps to become a world-class service minded organisation that will
“ Our processes and practices must change and this will be enabled through the finalisation of the ARIBA implementation, integration with SAP and further digitalisation of the processes” — Michael Gustafson General Manager of Material, Procurement and Contracts
mi ddl e e a st .busi ne ssc hief. com
GHIATH MOHAMMED KAKI EST
YOUR QUALITY IS OUR SATISFACTION Ghiath Mohammed Kaki Est is one of the leading establishments in the field of Marketing and Maintenance of Analytical, Scientific and Laboratory Instruments, Teaching Equipments and Packing Materials. SOME OF OUR SUPPLIERS:
Our Site
Contact us
S U P P LY C H A I N
enable the firm to provide exceptional
Petro Rabigh also plans to increase
customer service that goes beyond
its employee development, training
expectations.”
and planning to ensure everyone
“This can happen when we break down
successfully obtains their Certified
silos, over communicate to customers
Supply Chain Professional certifica-
and provide proactive service levels
tion as well targeting an 85% or higher
with their absolute best interest in mind,”
Saudization level and a 40% rise in
explains Gustafson. “We will do this
the hiring of women. In addition, the
through cross development opportuni-
firm expects to make a more deliber-
ties with operations, by co-locating
ate effort in its supply relations and
people closer to the customers they
strategic sourcing.
serve and rewarding people for delivering on their commitments.”
“We will be conducting a major supplier recognition conference soon 115
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PETRO RABIGH
in order to build deeper, strategic relationships with key suppliers and vendors,” says Gustafson. “This will take time, but the idea is to personally visit our key suppliers for them to understand the direction we’re going, how they can optimally support and ways we can further collaborate together to meet the Saudi Vision 2030 plans.” With major changes incoming at Petro Rabigh and in Saudi Arabia itself ahead, Gustafson remains determined that the future is bright for the company in the next 18 months and beyond. 116
“The vision for the future is to continue to make the Material, Contracting and Procurement organisation a great place to work. We also envision becoming a leader in driving collaborative value through matrixed processes, creativity commercial acumen and focused commitment to the priorities that will make Petro Rabigh the most valuable company in the region.”
JANUARY 2019
S U P P LY C H A I N
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