Foreign interest in conducting business with Saudi and the Gulf escalating
Wednesday, 21st September 2005
Foreign investors are increasingly casting their sights on the rapidly developing and evolving Saudi and Gulf marketplaces. Recent changes within the Kingdom and sweeping economic reforms elsewhere, combined with record level oil prices, have intensified interest in these fertile markets.
Abdulla Mohammed Al Zamil, Chief Operating Officer of Saudi Arabia's Zamil Industrial Investment Company (ZIIC), highlighted the main issues and challenges investors must understand and overcome in order to be successful.
"Incredible opportunities are available to those who can understand the issues and challenges of changing regulations, bureaucracy, etc," he said. "For example, the main issue in Saudi Arabia thus far has been with the rules and guidelines regulating all businesses done in or with the Saudi market, which have been causing many - until now - to be wary of actually entering the market."
"Conversely, the advent of the World Trade Organisation (WTO) agreement with the Kingdom and further US Free Trade Agreements (FTA) set for the region will enable Gulf domiciled businesses to reap rewards if they are prepared to meet the stringent international business regulations involved in both," he continued.
ZIIC's sector businesses in the air conditioning and steel industries are a case in point. Key players operating both inside the Kingdom and internationally, their success has been driven by the creation of nationally and internationally recognised brands. These have derived from investments made in the respective businesses and business-enabling infrastructure, the implementation of best practices and by the professional skills of its over 5,500-strong workforce, among others.
These qualities have enabled the Zamil Air Conditioners and Zamil Steel brands to thrive abroad as well as in their regional markets.
ZAC's numerous brands are responsible for different markets inside and outside of Saudi Arabia, covering over 55 markets. The Classic and CoolCare brand names are responsible for servicing the national market, while the Cooline, Clima Tech and Geoclima brands are marketed outside the Kingdom.
Likewise, Zamil Steel's operations, covering more than 75 markets, are considered to be the largest throughout Asia and Africa in the area of manufacturing and supplying pre-engineered steel buildings. Operations extend as far as Panama and Mexico in the West, and the Philippines, China and South Korea in the East.
"Both ZAC and ZS have been making long strides in the direction of further international market presence with numerous projects lined up for their individual sectors. ZAC's Geoclima brand recently supplied Harvard University, in the USA, with a 15.5 ton chiller for a residence hall, a first for the company. ZS also expanded further into the European market with the completion of a new building in Romania," continued Al Zamil.
The success of ZIIC's sector businesses are an example to many who hope to follow in their footsteps. The ZAC and ZS brands are among a very small group of Saudi brands which are recognised world wide.
Abdulla Al Zamil spoke about his experiences with managing the ZIIC sector business brands at the recently concluded 'First Middle East Branding Roundtable' event in Dubai, UAE.
"This event, organized by the respected The Economist Conferences, underscores and further highlights the interest that is being shown in doing business with this part of the world. Those who aspire to take their businesses beyond traditional borders should look to the example of others who have gone before them and learn from their successes," Al Zamil concluded.