Académique Documents
Professionnel Documents
Culture Documents
1 Spring 2010
In this issue:
Articles Page Incubating the Future:
Entrepreneurship in
Saudi Arabia . . . . . . . . . . . . . . . . . . . . 1 Entrepreneurship in Saudi Arabia
From the Presidents Desk
Cultivating the Entrepreneurial
Ecosystem in Saudi Arabia . . . . . . . . 2 T he year 2010 launches a new decade of entre-
preneurship and innovation in Saudi Arabia.
2 NUSACC www.nusacc.org
Entrepreneurship from page 1
Saudi entrepreneurs are rapidly becoming
The entrepreneurial culture is the key an important source of job creation in the
element that contributes to economic develop- Kingdom. The 2009 and 2010 Saudi Fast
ment by creating new businesses, jobs and Growth 100 companies, for example, collec-
wealth, all of which leads to sustainable tively created 35,000 jobs since they were
competitiveness, emphasized Professor Choon established, and 15,000 of these jobs were
Fong Shih, Founding President of KAUST. created in the last five years. In addition,
A recent agreement between King Saud these companies serve as business incubators
University (KSU) in Riyadh and Ohio-based for their employees, who have launched 41
Kent State University established an entre- new companies in the past two years.
preneurship curriculum in Riyadh the first These same Saudi Fast Growth 100 compa-
of its kind to be accredited at a Saudi univer- nies collectively generate nine billion Saudi
sity. King Saud University is also home to the Riyals ($2.4 billion) in revenues. More than
Riyadh Technology Incubation Center 90 percent of these revenues come from the
(RTIC), one of the leading incubator centers Saudi market, and the companies anticipate
in the Middle East, as well as the Entrepre- doubling the percentage of their revenues from
neurship Center, which organized the first international markets over the next three years.
international conference on entrepreneurship More than anything else, the Saudi Fast
in the Kingdom, held in October 2009. Growth 100 is a powerful beacon of inspira-
tion for the next generation of company
builders young people, perhaps just Under the leadership of King
SAGIA has committed to making the
teenagers now signaling that they too Abdullah, the new generation of
Kingdom of Saudi Arabia one of the can have a stake in a dynamic, forward-
most competitive nations in the world. entrepreneurs is recognized for
looking economy, notes Abdulkareem
Abu Al-Nasr, CEO of the National the important role it plays in Saudi
In order to achieve this ambitious
Commercial Bank (NCB). Arabias economic development
goal, the Kingdom must nurture
Saudi Arabia is making impressive and sustainable competitiveness.
emerging growth companies since strides in its quest for global competitive-
they are the oxygen of the economy. ness. In 2005, it was ranked 67th in the entrepreneurial initiative, notes SAGIA
H.E. Amr Al-Dabbagh, Governor of the Saudi Doing Business report published by the Governor Amr Al-Dabbagh. The winners
Arabian General Investment Authority World Bank. By 2009, it had climbed of the Saudi Fast Growth 100 will be the
the ranks to number 13. The 2009 report guides to our future, and they are the most
The Centennial Fund and its offshoot, the ranks the Kingdom 23rd out of 178 potent signal that Saudi Arabia is a dynamic
National Entrepreneurship Center have countries for ease of doing business, seventh economy full of creativity and opportunity.
focused on three main goals since 2004: diver- for ease of paying taxes, and third for ease of Professor Michael Porter of the Harvard
sifying the Saudi economy through the creation registering property. In June 2008, the new Business School fully agrees. Entrepreneur-
of small and medium-sized businesses (SMEs), Unified Office for Commercial Registration ship is alive and well in Saudi Arabia, he says.
reducing the failure rate of SMEs by providing in Riyadh became fully operational, and The Saudi Fast Growth 100 companies, led
long-term mentoring, and nurturing successful entrepreneurs can now complete all commer- by dynamic men and women, represent the
entrepreneurs. Saudi Arabia is the first Arab cial registration requirements under one roof leading edge of a new approach to Saudi
country to establish such a program and the in one day. Arabias competitiveness. These entrepreneurs
fund had more than 1,040 ongoing projects Saudi Arabia is creating a business climate are shattering our perception of whats really
in 2009. that supports and rewards innovation and going on in Saudi Arabia.
The Holy Grail of economic development is building businesses and growing entrepreneurial companies are
businesses, getting businesses to grow and develop and really under the radar, nobody knows about them. There
employ people, and to become the small and medium is a fixation with the large and with the established
sized companies (SMEs) that are really the backbone groups that have ties to the government. A list such as
of any economy. You cant build an economy just on the Saudi Fast Growth 100 becomes very fundamental
state enterprises or multi-nationals. You have to have a in bringing attention and energy to this part of the
rich texture of SMEs which can drive entrepreneurship, economy that is so crucial to success.
provide support services, and make the economy work. Harvard Business School Professor Michael Porter,
What we find in emerging economies is that the small a leading authority on competitive strategy
4 NUSACC www.nusacc.org
Photo Mike Liu | Dreamstime.com
Windy City Hosts U.S.-Saudi Business Opportunities Forum
I n late April 2010, more than 1,000 Saudi
Arabian and U.S. Government officials and
business leaders attended the U.S.-Saudi Business
sector, explained Minister Alireza. Moreover, creation and a renewed focus on exports are
he noted, Saudi Arabia is aggressively devel- main priorities for the Obama Administration,
oping a higher education system that will as evidenced by President Obamas recently
Opportunities Forum held in Chicago, Illinois. supply the engineering and research talent announced National Export Initiative (NEI).
Co-sponsored by the U.S.-Saudi Arabian required to support advanced technology and The Forum established a new platform for
Business Council and the Committee for medical industries. enhanced cooperation at the national level.
International Trade of the Saudi Council of As the world continues to emerge from Companies from around the Midwest were
Chambers of Commerce and Industry, the this once-in-a-generation economic
event also received high-level support from the crisis, it has never been more impor-
Saudi Arabian Ministry of Commerce and tant for us to expand trade and
6 NUSACC www.nusacc.org
I N T E R V I E W
Dr. Fahad Al Sultan
Secretary General of the Council of Saudi Chambers of
Commerce and Industry
The twenty-five Chambers of Commerce and years through the King Abdullah Program ences and exper-
Industry in Saudi Arabia have initiated for Improving Public Education under The tise would add
numerous programs to encourage innovation Ministry of Education. In addition, the old value to both of
and entrepreneurship in the Kingdom. Each rules, laws and regulations from the 1980s our countries
of the chambers has opened support centers -1990s must be changed. We need to continue economies. Dr. Fahad Al Sultan
for businessmen and women, providing new to ease restrictions for trade and investment.
entrepreneurs with consultation, training, What steps can the Council take to entice
financial advice and help in identifying invest- American companies to invest to Saudi Arabia?
Its time for the new entrepreneurs,
ment opportunities. The Womens Section We are not doing enough at the moment. The
instead of the older established Saudi business community needs to invite
in the Riyadh Chamber of Commerce, along
with the Khadijah bint Khuwailid Business- businesses, to take the lead in members of the American business community
womens Center in Jeddah, have become two of defining and re-invigorating the to come to Saudi Arabia and see how much
the most influential womens institutions for national economy. They represent we have in common. Our economies comple-
entrepreneurship and finance in the Arabian ment rather than compete with each other.
the future of the Saudi economy. At the Council, we are very action-oriented,
Gulf region.
Secretary General Dr. Fahad Al Sultan and we want to do something concrete. We
The three largest chambers Riyadh (62,000 have learned that if we bring together business
members), Jeddah (41,000 members) and the people from different parts of the world and
Eastern Province (39,000 members) host Has the growth of entrepreneurs in Saudi
Arabia led to new opportunities for American sit them down together in one room to discuss
yearly entrepreneurship forums and have joint ventures, deals will be made. I encour-
established Small and Medium Enterprise SMEs?
age the U.S.-Arab Chambers of Commerce
(SME) Development Centers. We have a gold rush of opportunities. I can to bring delegations of business men and
In a recent interview, H.E. Dr. Fahad Al give you a list of thousands of projects in women to Saudi Arabia for several days of
Sultan spoke with U.S.-Arab Tradeline about education, infrastructure, telecommunica- B2B matchmaking twice a year.
the growing entrepreneurial environment in tions, agriculture, transportation and health,
the Kingdom and its impact on U.S.-Saudi to name just a few. There is also a new trend
commercial relations. in Saudi Arabias industrialization program Development Center
which involves building industrial clusters that
focus on special sectors, such as automotive
for Small & Medium
What role does the entrepreneur play in the
emerging Saudi economy? or electronics. We want U.S. companies to Enterprises
be aware of this trend and to come on board. In 2003, the Council of Saudi Chambers
We regard the entrepreneur as the major engine
Even though the global economy faces many of Commerce and Industry established the
driving the economy. SMEs make up 92
challenges, we are fortunate to still have these Development Center for Small and Medium
percent of the businesses in Saudi Arabia, and
projects, which represent golden opportunities Enterprises (SMEs) in recognition of the
they employ over 80 percent of the work force.
for our business partners. important role that SMEs play in Saudi
These days, the global economy faces many
challenges, and we have to actively participate Most Saudis would love to see more American Arabias emerging economic development
in shaping the future, instead of just waiting businesses involved in our development projects, by diversifying the economy and creating
for the future to happen. Its time for the new but the feeling here is that the Americans are new jobs.
entrepreneurs, instead of the older established missing the boat and, as a result, both sides The primary objectives of the Center
businesses, to take the lead in defining and lose. We badly need American know-how, include educating Saudis in general about
re-invigorating the national economy. They experience, knowledge and managerial skills. the importance of entrepreneurship in
represent the future of the Saudi economy. The participation of American companies in Saudi Arabia and strengthening the role
our projects is of great value, not just for our of regional Chambers of Commerce as
What needs to be done to support the growth economy but for our cultures. There is a great mentors for SMEs. In addition, the Center
of an entrepreneurial culture in Saudi Arabia? difference between American know-how and offers easier access to financing for start-up
It is no longer enough in the global community that from other countries. businesses, prepares studies on the emerging
to be good; one has to be excellent. We need I dont understand why Americans are hesitat- SME sector, and cooperates with the Saudi
to start with the schools and educate young ing to work in Saudi Arabia, especially since Exports Development Center to enhance
people so that they will be global instead of just there are such long historic ties between our the exporting capability of SMEs. To
local citizens. They need to speak a universal two countries dating back almost a century. date, the Center has conducted approxi-
language and understand international trade Our relations with China are less than three mately 500 consultations with entrepre-
and competitive markets from both an Eastern decades old. In 2009, 95 international business neurs and has registered more than 100
and Western perspective. delegations came to Saudi and only one, a non- participants in training seminars held
In this context, the educational system in Saudi business delegation, arrived from the United throughout the Kingdom.
Arabia has been evaluated during the last ten States. Both sides are losing. Sharing our experi-
U.S.-Arab Tradeline Spring 2010 7
I N T E R V I E W
Professor Choon Fong Shih
Founding President and Professor of Electrical Engineering at
the King Abdullah University of Science and Technology (KAUST)
Inaugurated in September 2009 in Thuwal, Research Park right here on our campus. In
Saudi Arabia, the King Abdullah University of fact, the amount of floor space for innovation
Science and Technology (KAUST) is the worlds (24 acres of laboratory space) far exceeds the
newest state-of-the-art graduate level research floor space given to the academic campus
and entrepreneurial university. KAUSTs (two acres). We also provide our students
Industry Collaboration Program (KICP), with the financial resources and support
8 NUSACC www.nusacc.org
Professor Shih from previous page
10 NUSACC www.nusacc.org
I N T E R V I E W
Amer Kayani
Counselor for Commercial Affairs, U.S. Embassy, Riyadh
Amer Kayani has been the Department of fully in Saudi Arabia for almost 70 years and
Commerces senior commercial officer in Saudi are market leaders in many sectors. Significant
Arabia since 2008. He recently shared his opportunities for American companies exist
views with NUSACC regarding the emerging in the following sectors: medical equipment
entrepreneurial environment in Saudi Arabia. and healthcare, railways, defense, infor-
mation technology, telecommunications, Amer Kayani
What changes have you observed in the entre- construction, water, petrochemicals, power,
preneurial climate in Saudi Arabia? and franchising. visiting U.S. business executives. In addition,
The Saudi economy, for the most part, has in-depth counseling on opportunities in this
been immune to the financial stress that Are there still key impediments that make market are available through our network of
other Arabian Gulf economies experienced relationships between U.S. businesses and 109 domestic U.S. Export Assistance Centers
in 2008 - 2009. The Saudi government has emerging Saudi SMEs difficult? (USEACs) across the United States.
pledged to spend $400 billion on infrastruc- There are no significant barriers to doing
ture projects over the next decade and is also business in Saudi Arabia for American SMEs. Have American businesses missed the boat
working to create a knowledge-based economy To succeed in this market, a visit is a must. by not actively re-entering the Saudi market
that focuses on education, technology and SMEs will need to invest significant time to after 9/11?
financial services. As a result, a number of cultivate personal relationships with their U.S. companies are no longer the only players
young Saudis have started to take interest in Saudi counterparts. in this market. They face serious competition
entrepreneurship. Also, the Government of from Asian and European companies and, in
Saudi Arabia has been working very hard to How does the U.S. Embassy in Riyadh make many cases, contracts that would have formerly
American SMEs aware that they may have been awarded to American companies have
improve the business climate both for local
counterparts with which to work in the Kingdom? gone to the competition. Yet, Saudi compa-
and foreign companies. In fact, in 2009,
Saudi Arabia was ranked number 13 out of Every year, on average, we take 10 to 12 trade nies remain eager for deeper contacts with
177 countries by the World Bank for ease of missions from Saudi Arabia to the United their American counterparts. Saudi Arabias
doing business. States, where we introduce Saudi buyers to market potential has also started to capture
American companies. We also recruit and bring the interest of American CEOs from a range
Has the growth of entrepreneurs led to new trade missions from the United States to Saudi of industries and services, and Saudi Arabia
business and investment opportunities between Arabia. The U.S. Commercial Service offices has started to emerge as the leading market
the U.S. and Saudi Arabia? in Riyadh, Jeddah and Dhahran also offer an in their corporate strategies for Middle East
American companies have operated success- executive appointment (Gold Key) service to and North Africa.
12 NUSACC www.nusacc.org
G U E S T C O M M E N T A R Y
14 NUSACC www.nusacc.org
2010 Saudi Fast Growth Start Up Companies
Standard 2008 Revenue
Rank Company Name City Industry Growth
(2007-2008) Ranges
1 Rumman Company Jeddah Public Relations, Media & Publishing, Advertising & Marketing 596% 1-5 million SAR
2 National Talents Co. for Training and Education Al-Khobar Health, HealthCare, Education, & Training 421% 5-10 million SAR
3 Bonnon Co Jeddah Accommodation & Food Service 302% 5-10 million SAR
4 Midrar Jeddah Real Estate, Rental & Leasing 280% 10-50 million SAR
5 EDUCON for Educational Services Jeddah Health, HealthCare, Education, & Training 256% 1-5 million SAR
6 Green Tangereen Jeddah Public Relations, Media & Publishing, Advertising & Marketing 162% 10-50 million SAR
7 Construction Products Holding Company (CPC) Jeddah Construction & Engineering 142% 1 billion+ SAR
8 Yareem Restaurant Co. Ltd Al-Khobar Accommodation & Food Service 132% 1-5 million SAR
9 Eker Company Ltd. Jazan High-Tech & Telecommunications 127% 5-10 million SAR
10 Innovative Business Solutions-IBS Jeddah Management Consulting 123% 5-10 million SAR
11 Delta United Contracting Company Riyadh High-Tech & Telecommunications 118% 5-10 million SAR
12 Waseel ASP Ltd. Riyadh Health, HealthCare, Education, & Training 100% 5-10 million SAR
13 Mobile Innovative Solutions Company Riyadh High-Tech & Telecommunications 99% 10-50 million SAR
14 International Medical Center Jeddah Health, HealthCare, Education, & Training 97% 50-200 million SAR
15 Visualizit Jeddah Public Relations, Media & Publishing, Advertising & Marketing 83% 5-10 million SAR
16 Elixir Jeddah Public Relations, Media & Publishing, Advertising & Marketing 76% 5-10 million SAR
17 2P for IT and Telco Services Riyadh High-Tech & Telecommunications 70% 50-200 million SAR
18 DNA (Design & Anaylsis Est.) Jeddah Public Relations, Media & Publishing, Advertising & Marketing 70% 5-10 million SAR
19 Gene-Tech Jeddah Health, HealthCare, Education, & Training 66% 1-5 million SAR
20 Blueprint Communications Jeddah Public Relations, Media & Publishing, Advertising & Marketing 57% 10-50 million SAR
21 LOMAR Jeddah Textiles & Fashion 53% 10-50 million SAR
22 Public Telecommunication Company Riyadh High-Tech & Telecommunications 46% 50-200 million SAR
23 Qanawat Telecom Co RIYADH High-Tech & Telecommunications 25% 1 billion+ SAR
24 Dentalia Clinics Jeddah Health, HealthCare, Education, & Training 25% 5-10 million SAR
25 Saudi Shada for Urban Development Jeddah Real Estate, Rental & Leasing 22% 1-5 million SAR
26 New World High Training Institute Al-Khobar Health, HealthCare, Education, & Training 20% 1-5 million SAR
27 NASA for Pocket PC Jeddah High-Tech & Telecommunications 19% 10-50 million SAR
28 KAI Fitness Gym Jeddah Health, HealthCare, Education, & Training 17% 1-5 million SAR
29 Tafeel for Information Technololgy Jeddah High-Tech & Telecommunications 17% 10-50 million SAR
30 Amwal Financial Consultants Riyadh Finance & Insurance 15% 10-50 million SAR
16 NUSACC www.nusacc.org
99 Ways To Be An Entrepreneur
Kuwaiti entrepreneur named Social Entrepreneur of the Year for the
Middle East and North Africa
You often speak of the intoxicating mix as a role model for my own five children about
of endless possibilities of how business can the power of ideas and how The 99 grew
change the world, and the world can change from an idea thought up in the back of a cab
business. How are you changing the world in London to a business that supports just shy
as an entrepreneur? of 1,000 jobs. I love that my children have
I believe that The 99 has changed Islam seen first-hand that anything is possible with
forever. I have to believe it. It is what drives determination and drive. I love the rush and
me, and I am doing this through busi- excitement of knowing that these comic book
ness. Over one million copies of The characters have changed the percep-
99 are sold annually. We launched tion of Islam.
the first The 99 Village Theme Park
in Kuwait in 2009. The second one
will launch by year-end, also in the
GCC. I was recently in India where
Dr. Naif Al-Mutawa, creator of The 99 I saw the first animated episode of
the 26-episode season that we have
Dr. Naif Al-Mutawa is the creator of The co-produced with Endemol, and
99, a comic book featuring the first group we have already sold the series to
of superheroes based on Islamic archetypes. a major U.S. broadcaster. By the
Chairman and CEO of Teshkeel Media end of 2010, we will be broadcast
Group, Dr. Al-Mutawa was presented with in just under 100 million homes
The Schwab Foundation Social Entrepreneur in the United States. All these
of the Year Award, Middle East and North initiatives are changing the world,
Africa, at the 2010 World Economic Forum in and business has helped to shape
Davos, Switzerland. He was also recognized them.
by U.S. President Barack Obama during the You were recently named Social
Presidential Summit on Entrepreneurship, Entrepreneur of the Year for
held in Washington DC in late April 2010. the Middle East and North
Forbes magazine recently named The 99 Africa by the Schwab Founda-
as one of the top 20 trends sweeping the tion. How important is social
globe. Teshkeel has grown from a comic book responsibility to the way you
series into a franchise that includes theme run your business?
parks based on The 99, as well as a global To me, the definition of social
animation series co-produced by media giant entrepreneurship is doing
Endemol. Launched in 2004, The 99 is the well by doing good. The
first licensed entertainment property from the 99 is a consumer-based
Islamic world. organization that is for
profit. The social goal is to redefine
What factors, in your opinion, have led to Islam for both non-Muslims and Muslims
the growth of entrepreneurship in the region alike in repositioning Muslim values as those
during the past decade? values that all people share and which are Dr. Ramzi
Those of us who were fortunate enough to the core of humanity. The 99 is all about
be educated in top business schools were mainstreaming and normalizing Islam. We
able to look at the region and recognize the focus on creating top notch content that can
huge opportunities available. We were ready compete for and win a place in the hearts
to ignore everything we were told, or knew, of those economies that can actually afford Fattah, the Opener
about how hard it would be to start a non- to pay for the content. We then use that to
status-quo business and just go for it. That maintain a viable [and profitable] business
is where the opportunity lies. Not many will that allows us to focus some of our energy
come out to challenge you for your space, so on distributing our products to those who
Jabbar, the Powerful
you have enough breathing room to grow until cannot afford to pay for it.
you finally hit it out of the park. By then, you
have the full advantage of being the first one What motivates you as an entrepreneur?
to make a move. I love the storytelling. I love that I am serving Widad, the Loving Hadya, the Guide
18 NUSACC www.nusacc.org
Sector: Construction/ Engineering
The fledgling company had two contracts Midrar was recently ranked number four end-to-end services in both development
from day one and grew its core staff from two on the Saudi Fast Growth 100 list of the management and facilities management
to 25 within the first year. At the end of the Kingdoms fastest growing start-up companies, services.
first fiscal year, they were able to return all which gives them more exposure in the business We really believe in this company, and it
capital invested and by the second year, the community. The niche we work in is has turned out much better than what we
dividends had quadrupled from the prior year. challenging and difficult, explains Dr. Rehab. expected, emphasize both co-founders. It
Their growth rate was 280 percent by the end We are trying to grow our company slowly makes us wish we had done this much earlier.
of the second year. and steadily, and we will be adding another
Finding clients was and continues to be department soon in transportation studies Midrar Development
the challenging part of our business, comments and traffic impact. P.O. Box 126666
Dr. Jared. He noted that their 20-plus years Midrar currently has three projects under Future Building Center, Level 5
in the business was initially very helpful in construction and four under design, the 21352 Jeddah
establishing footing with private customers smallest of which is approximately SR100 www.midrarksa.com
and developers. million ($ 26,600,000 ). The company provides
Sector: Education
20 NUSACC www.nusacc.org
Sector: Education
co-founding partners of 3points Advertising 5,000 graduates of King Abdul Aziz Univer- fastest-growing start-up companies with a
Agency in 1998. Tired of wearing the same sity in Jeddah have worn Lomar graduation ranking of 13th in 2008 and 21st in 2009.
plain Saudi thobe to work each day, he began robes. Last year, he was commissioned by I participated in the Saudi Fast Growth
to design his own thobes with the help of his K AUST, the new graduate-level research 100 because it is aligned with my desire to
wife and a tailor. university in Thuwal, to design 100 thobes become an international brand, states Naseem.
By 2004, while still a partner at 3points, for the inaugural ceremonies. Innovation is I want to see my boutiques in New York,
Naseem was designing and selling thobes out very important to me. The market is still Milan, and in all the fashion cities in the
of his home for more than 100 customers. fresh in Saudi Arabia, and I want to change world. This is my vision.
Annual sales that year reached SR75,000 the way of thinking in fashion, explains
($19,900). By the time he and his wife Mona Naseem, who produces a minimum of 24 Lomar
Haddad co-founded Lomar the following new designs a year and recently introduced P.O. Box 122110
year, sales had climbed to SR1.5 million a line of childrens thobes. Jeddah
($399,000). For the past two years, Lomar, a Siraj 02 2754 555
Lomar is now a coveted brand throughout Capital portfolio company, was recognized
the Kingdom. For the past three years, all by the Saudi Fast Growth 100 as one of the www.lomarthobe.com
22 NUSACC www.nusacc.org
Sector: Healthcare/ Dental Services
24 NUSACC www.nusacc.org
Sector: IT/E-Commerce/ Technology Provider
ALMARWA.net
M arwa Al Saleh, founder and General
Manager of ALMARWA.net, an Infor-
mation Technology service and E-commerce
business that first year, she recalls.
Al Salehs client base outgrew her home
office within a year. In 2007, she officially
solutions company, epitomizes the new registered her company and rented office space
generation of Saudi businesswomen deter- in the newly-formed businesswomens section
mined, well-educated and independent-minded. of the Eastern Province Chamber of Commerce. In 2008, Al Salehs company was recognized
I always dreamed about being a business- Finding the money to start her business was as the most promising IT services company
woman, explains Al Saleh, who started a the easy part: Al Saleh had saved more than in the Eastern Province and, two years later,
small web design business out of her home in SR 90,000 ($24,000) for just that purpose. it ranked third on the Saudi Fast Growth
I didnt want anyone to be able to stop me, companies to watch list. These awards put
she explains. a spotlight on the company and increased our
Then came the difficult part. I had to learn customer base, as well as our customers
everything from scratch finances, human expectations, explains Al Saleh. The next
resources, how to write a business plan, and year will be critical, says Al Saleh, who plans
how to look for and hire employees, Al Saleh to grow her company by introducing new
notes. It was a lot of trial and error, she admits. products, such as training courses and estab-
In addition to providing office space, the Eastern lishing e-mail services for SMEs.
Province Chamber of Commerce was able to Al Saleh enjoys the challenge of running
advise Al Saleh about hiring employees and her own company. Its not just about making
administrative start-up details. money, she emphasizes. Its very fulfilling to
Less than four years later, ALMARWA.net do a good job for a client. As a businesswoman,
is a well-established business with six female she also enjoys mentoring the young women
employees and more than 50 loyal clients, she hires for her company. I want to inspire
including the Eastern Province Chamber of them and help them believe that they can be
Websites designed by ALMARWA.net Commerce, real estate and petrochemical the next entrepreneurs, concludes Al Saleh.
companies, as well as numerous small and
Al Khobar after graduating from college. Al medium-sized enterprises (SMEs). Website ALMARWA.net
Saleh knew a lot about Information Technology design and redesign, custom programming, P.O. Box 77097
(IT) services, but she soon realized that she E-commerce websites, online advertising, Al-Khobar 31952
knew nothing about how to set-up and run a website hosting and domain registration are www.almarwa.net.sa
business. I read everything I could find on among the many services offered by the company.
alcantara group
B ridging technology is what we do
best, explains alcantara Chairman
and CEO Khalid Suleimani. We bring
alcantara became the largest ERP implementer
in the Kingdom.
While studying for his doctorate in
Western technology to Saudi Arabia and engineering in Boulder, Colorado, Suleimani
provide a platform for these companies to realized that he was as much a businessman
work just as they would in the West. We as he was a scholar. I discovered my passion We went bankrupt more times than I can
handle everything and eliminate the stress is in the business of delivering solutions, not count, but we stood our ground, Suleimani
factor, adds Suleimani. just doing research, he explains. In 1995, notes proudly.
Established in 1997, alcantara group is Suleimani established his first company in It was also tough to sell software licenses
one of the leading systems integrator and Jeddah Business Automations Systems at big prices, let alone try and sell services.
solutions providers in Saudi Arabia. Over Engineering (BASE) while commuting back It was assumed that all of these came for free.
the last decade it has become the holding and forth between the U.S. and Saudi Arabia In 1995, ERP was a term that came from
company for a diverse range of technology to complete his doctoral exams. Mars. Now everyone knows what it is,
providers: Kerfi Arabia for systems integra- We started at a hard time, recalls Sulei- confides Suleimani. Selling technology in
tion; IFS Arabia for Enterprise Resource mani, who took $8,000 he had saved from a developing country is always difficult you
Planning (ERP); Nexus Arabia for health his scholarship money to launch alcantara. have to create demand and spend a lot of
information systems; and Medacsys for He explains that a prolonged freeze on Saudi your ma rketing budget on educ ating
healthcare hardware and software turn-key government projects, and the lack of internet consumers, he adds.
packages. Nexus Arabia and Medacsys are in the Kingdom until approximately 1999,
both wholly-owned companies. In 2003, made the start-up years very challenging. continued on next page
26 NUSACC www.nusacc.org
Sector: Lifestyle Services
Sector: Marketing
Abdulmajeed. At any given time, his company Being an entrepreneur is very challenging,
will have more than 100 people employed on and thats what motivates me, says Abdulma-
a project-to-project basis. jeed. I know what I want to do and my
Two of the Beyond Holding Group compa- experience has taught me how to do it. The
nies Marketing & Beyond and HR & Beyond economy is booming in Saudi Arabia, and its
were ranked on the Saudi Fast Growth 100 a great time to be an entrepreneur.
Companies to watch list in 2010. This list
is new to the Kingdom and its a great concept, Beyond Holding Group
suggests Abdulmajeed. He notes that the P.O. Box 122585
prestige of the award, as well as networking Jeddah 21243
opportunities among the Saudi Fast Growth Beyond Holding Group CEO Dr. Turky Abdulmajeed www.beyond-hg.com
companies, have been beneficial to his business.
28 NUSACC www.nusacc.org
IBS from previous page
Natto clearly was. Prior to founding Innova- of their clients are repeat customers or refer-
tive Business Solutions (IBS), he held an rals, and 20 percent are solicited.
executive position at Procter & Gamble in IBS ranked among the Saudi Fast Growth
Jeddah. There were a lot of rules, and I felt leading start-ups two years in a row. The
very restricted in my ability to grow profes- company has grown more than 123 percent
sionally and personally, explains Natto. during the past five years and its average
One day he revenues are in excess
announced to his of SR 5 - 10 million
work colleagues ($1.3 $2.66 million) IBS, Natto tested the waters with his short-
that he was going per year. lived first start-up Omnitech Al-Saudia
to open his own According to in 2004.
business within a Natto, the IBS team Natto is very supportive of other start-up
year. Natto sold his is intent on becoming companies. We try and make sure that
house, moved his the most appreci- anything we need couriers, lawyers, printers,
wife and children ated consultants in and so on is done by small businesses rather
into an apartment, Saudi Arabia. IBS than large corporations, comments Natto.
and told them they provides strategy and Its very important for us to support each
had to tighten their management other as entrepreneurs.
belts while he was consultancy, infor- In addition, Natto lectures several times
b u i l d i n g t h e Osama Bakur Natto, founder and CEO of Innovative m at ion s er v ic e s , a year at the Jeddah Chamber of Commerce,
business. Business Solutions start-up expertise, as well as at Effat University, on how to build
His determination paid off. Jeddah-based project management and analysis support a business and other related topics. I am not
IBS started as a one-man company in 2005 for the information technology (IT) sector interested in just making a profit, says Natto.
and it now has 15-20 full-time employees, as in Saudi Arabia and the Arabian Gulf. Its also about making a difference.
well as four part-time consultants. IBS has a Running a small business is a real
base of approximately 40 loyal clients, including challenge, says Natto, who is no stranger to IBS Innovative Business Solutions
the Elixir Group, Blueprint Communications, hard work. My dad is an entrepreneur who P.O. Box 54000
National Commerce Bank, Emaar Economic built his business from scratch, and I started Jeddah 21593
City, Hewlett-Packard International Trade working for him when I was eight years old. www.ibsolutions.com.sa
B.V., and Procter & Gamble. Eighty percent We grew up working, he explains. Prior to
Sector: PR/Advertising
Trans-Arabian Creative
Communications (TRACCS)
T rans-Arabian Creative Communications of the market and extends from Northwest
(TRACCS) is one of the largest public Africa to the Arabian Gulf.
relations networks in the Middle East and Sarah A. Al Ayed, Managing Partner - Saudi
North Africa. Established in 1997 under the Arabia and Network Vice-President, is recog- most successful businesswomen, Al Ayed is
name Saudi Creative Communications also a founding member of the first Saudi
Services (SACCS) by partners Mohamed Arabian Businesswomens Committee, which
A. Al Ayed, Sarah A. Al Ayed and Haroon is incorporated within the Jeddah Chamber
Sugich, SACCS steadily expanded its of Commerce and Industry.
outreach. In 2001, the Jeddah-based company I knew nothing about public relations when
launched the TRACCS network with the my brother and I first talked about working
opening of branch offices in Dubai, Cairo together in 1997, Al Ayed explains, noting
and Manama. that she crammed for months to learn the basics
Today, the companys 250 employees before they officially opened their business.
handle approximately 150 client relation- TRACCS moved from shared office space
ships in 13 markets. Fifty percent of the to its own headquarters within three months
TRACCS staff is female, and five of its after opening, and it quickly assumed market
managing directors are women. What began TRACCS Managing Partner Sarah A. Al Ayed leadership as one of the first local public relations
as a desire to establish a local public relations nized as the leading female public relations agencies in Saudi Arabia. In 1999 and 2000,
industry in Saudi Arabia evolved into a leading practitioner in the Middle East and North TRACCS won the Coca-Cola Middle East
regional enterprise that controls ten percent Africa (MENA) region. One of Saudi Arabias continued on next page
30 NUSACC www.nusacc.org
Sector: PR/Advertising
Rumman Company
In October 2007, three Saudi women venture like this one, especially since none of
packed up their determination and vision and us had a background in marketing.
left their jobs at a publishing house in Jeddah Undaunted by this lack of experience, they
to launch their own company. Less than three found an enthusiastic investor, moved into a Youth Hub, are intended to give Saudi youth
years later, Rumman Company, an innovative small office and launched what are now their a chance to expose and develop their talents.
Media Publishing House, has 21 employees two main ventures: Fainak?, one of the first Due to Rummans large on-and-offline
and annual revenues between one and five and most active on-and-offline youth media database of young subscribers, it has become
million Saudi Riyals ($266,000 - $1.3 million). sites in Saudi Arabia, and Destination Jeddah a primary resource for companies eager to
What began in City Insight on market their products to youthful audiences.
the living room of the Go, a monthly Fainak Buzz has become one of our hot sellers
Rumman CEO English-language because when a company comes to us with
Ena s Ha sha n i s guide distributed to an event, we can quickly deliver the right
hou s e i s now a more than 70,000 youth audience, explains Mahdaly, General
thriving enterprise readers in Jeddah. Manager of Fainak. Mahdaly was named one
that owns, operates, In the past few of the top 30 student entrepreneurs in the
and manages years, Jeddah has world by the U.S.-based Entrepreneurs
socially responsible opened tremen- Organization, and she attended the Presiden-
and youth-oriented dously to business tial Summit on Entrepreneurship held in
ventures in media i nve st ment a nd Washington DC in late April.
publ i s h i n g a nd Rummans co-founders (l-r) Enas Hashani, Maria Mahdaly,
and Bayan Esam Abuzinadah tourism, which is Rumman Company placed first out of 31
production. The why we decided to companies on the Saudi Fast Growth 100
company also provides corporate and social create this guide, explains Hashani. COO Start-Up list and received an award during a
event management and will soon launch the Abuzinadah adds, We wanted to educate gala dinner at the 2010 Global Competitiveness
Grow Program, a training, development, and people, including locals, about what Jeddah Forum held in Riyadh. When I was up on
funding program for social entrepreneurs. has to offer. Most people who live here dont that stage accepting the award, all the hardships
We had a clear vision for the company explore the city and we want to encourage and difficult times we went though became
from the start, says Hashani who co-founded local tourism. worthwhile. At that moment I knew we were
the company with 21-year old Fainak General Rummans trademark products have grown doing the right thing, concludes Hashani.
Manager Maria Mahdaly and 25-year old to include Fainak Buzz, Fainak Newzine and
Chief Operating Officer Bayan Esam Abuzi- Fainak Events, each of which illustrates the Rumman Company
nadah. A serial entrepreneur, Hashani has a companys ability to successfully target and P.O. Box 6707
retail clothing store as well as a catering showcase a largely under-represented audience
Jeddah 21452
business, but she admits that running a retail Saudi youth. All products and services offered
business is very different from establishing a by Fainak, such as the newly launched Fainak www.rummancompany.com
S ecutronic is not just a business, its a way whom are Saudis. The rest of the staff is
of rethinking business. When we founded multi-national.
Secutronic, we changed the way a company Co-founded in 2003 by ElSamannoudi
One of Secutronics major projects was
providing a comprehensive security package
is supposed to be run, explains CEO Jawad and Anwar Ali, Secutronic is a leading security to the International Medical Center (IMC)
Anwar Ali. solutions provider and in Jeddah that included high-tech surveillance
Usually, when a business integrator. Headquartered cameras, personnel identification mechanisms,
is launched, there are systems in Jeddah with offices in and workflow management processes, such
and procedures in place. We Riyadh and Dammam, as Time & Attendance and access control.
believe that a company is Secutronic provides innova- Other clients include Arab National Bank,
all about its people, who are tive and customized high- National Commercial Bank (NCB), DHL,
the epicenter of any organi- tech security solutions Fitaihi Group, Ikea, Savola and many others.
zation, he notes. This is such as virtual control In 2009, Secutronic was nominated the
why we have a flat manage- rooms, security manage- number one Saudi Fast Growth 100 winner.
ment approach. There is no Secutronic CEO Jawad Anwar Ali ment, CCTV Surveillance, Its an awesome program that really adds
boss, just 200 entrepreneurs access control, and intrusion value to the entrepreneurial community in
working together. This creates an energy that detection. Their corporate and governmental Saudi Arabia, comments Anwar Ali. I think
benefits the entire company, as well as our clients span the medical, financial, petro- the ecosystem of the world revolves around
clients and shareholders. chemical, commercial and hospitality sectors. these small to medium-sized enterprises (SMEs)
In todays competitive business environ- According to CEO Anwar Ali, Secutronic that help economies flourish.
ment, attracting and retaining talent is critical is the only company in Saudi Arabia that Chairman Elsamannoudi adds, Being a
to the success of a company, explains Anwar provides total turn-key security solutions, Saudi Fast Growth 100 winner has inspired
Ali. If you find the right people with the caters to all industries, and is completely our team. Our staff sees that their work has
right talent, put them in the right job and vendor-neutral. We do not go out and promote paid off, our customers are more confident
emphasize core ethical values, they will help any specific product, he says. that they are putting their security needs in
your business flourish, he comments. Secutronic carefully studies a clients the right hands, and our stockholders are
Chairman Ihab Elsamannoudi and CEO individual security requirements, determines proud to be number one.
Anwar Ali both equate employee satisfaction which products will best satisfy the clients
with customer retention and a successful needs, and then mixes and matches products Secutronic
enterprise. Given the companys growth rate from a number of vendors. Our vested interest Beautat Business Park, Suite 26
of more than 2,500 percent over a five-year is in achieving the best value for our customer, P.O. Box 54544
period, as well as its average annual revenue notes Anwar Ali, who adds that Secutronics Jeddah 21524
of SR 10 to 50 million ($2.6 million - $13.3 goal is to become a transparent embedded www.secutronic.com.sa
million), their belief is well-founded. The success story within our clients organization.
32 NUSACC www.nusacc.org
Sector: Sports
Bravo Public
Telecommunications Company
B ravo is having a great year. Nominated in
January as one of the companies on the
Saudi Fast Growth Start-Up List, Bravo was
having successfully positioned Bravo as one
of the three leading telecom companies in
Saudi Arabia.
months at Bravo, he admits.
Despite more than 15 years of experience
again in the limelight when CEO Middle East The path to that award was not easy for working in telecommunications in both the
magazine honored Bravos Chief Executive Al-Ageel, who was appointed CEO of Bravo military and private sector, Al-Ageel was not
Officer, Mohammed bin Abdulaziz Al-Ageel, in September 2008. This was one of the aware of the challenge he had in store for him
with the 2010 Best CEO in Business - Telecom biggest challenges Ive had in my entire life. when he joined Bravo. Established in 2001 as
Sector Award for the Kingdom of Saudi It normally would have taken me ten years to the Public Telecommunications Company
Arabia. Al-Ageel was chosen for the award for figure out what I had to learn in less than 18 continued on next page
34 NUSACC www.nusacc.org
Sector: Travel
36 NUSACC www.nusacc.org
Saudi Arabia - General Information on SMEs
2.0% PTT
Source:
0.0% Standard Chartered
* The graph leaves out
0 to 4
5 to 9
100 to 199
200 to 299
300 to 399
400 to 499
10 to 19
20 to 39
40 to 59
60 to 79
80 to 99
Contributions of Different Sectors to Total SME Employment (companies with up to 100 employees)
electricity, gas contracting and
finance & realty industry agriculture social services mining trade PTT
and water building
0 to 4 7931 229 19188 523 14141 751 29288 58785 2235 5 4 133076
5 to 9 8626 423 20872 595 14042 789 70218 87319 2250 18 6.1 205152
10 to 19 9004 792 28485 1455 19817 1183 119695 140862 3567 NA 9.7 324860
20 to 39 8960 859 27286 2183 24398 1235 103454 130836 6172 48 9.1 305431
40 to 59 5930 958 19082 1856 16503 1242 46482 69911 3985 NA 4.9 165949
60 to 79 2788 770 13637 1228 18347 818 34217 51389 3698 NA 3.8 126892
80 to 99 2145 802 12142 681 13566 915 21831 32215 3206 NA 2.6 87503
100 to 199 8719 3614 40572 3341 48182 2804 71394 100044 13677 NA 8.7 292347
200 to 299 5002 1665 25572 2965 31081 3645 47211 52984 6393 NA 5.3 176518
300 to 399 3463 3015 24896 974 22132 1142 41705 43338 5067 NA 4.3 145732
400 to 499 3504 2724 18148 849 24172 904 32781 34294 3914 NA 3.6 121290
500 and more 56357 42796 115957 27342 172780 69588 437220 316987 34455 1334 37.9 1274816
Totals 122429 58647 365837 43992 419161 85016 1055496 1118964 88619 1405 100 3359566
Information excerpted with permission from Benchmarking SME Policies in the GCC: A Survey of Challenges and Opportunities.
(A research report for the EU-GCC Chamber Forum Project by Steffen Hertog)
38 NUSACC www.nusacc.org
C O M M E N T A R Y