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Kambiz Salehi

IRAN - Real Estate & Construction

Public construction tenders in Iran

Managing Director, SEKAF Technical & Construction Company

Bio

Kambiz Salehi is the Managing Director of Sekaf Technical & Construction Company. He was born in 1963 in Esfahan. His first position in the company was at the age of 18, when his beloved father was the managing director. He studied and worked at the same time and received his bachelor’s degree in civil engineering in 1990. He became managing director in 1994. Under his leadership during the past 23 years, SEKAF has grown to become one of the well-known construction companies in Iran with diversified portfolio of activities.

“We are focused to enter the Iraq market in the future because there will be high demand after the war.“

To what do you attribute the successful transition of SEKAF from a small family business to the diversified holding it is today?

Our success is based on our commitment to quality and on time delivery to our clients. Customer satisfaction is a crucial focus for us. We also consider every employee a member of the family. We trust them and expect that this is mutual. Customer satisfaction, transparency, and the relationship between personnel and management are the main pillars of our continued success. After the end of the Iran-Iraq War there was a high demand for the construction of new buildings. SEKAF’s policy was to diversify, so that if one sector of the economy faced problems, the company could profit from other sectors, allowing the company to continuously grow.

What are the main projects in which SEKAF is involved at the moment?

SEKAF has three departments, namely energy, road, railways, and buildings. In the oil and gas industry we have two EPC contracts in gas compressor stations. Next to this, we work on the refinery and polishing system in the Kangan area. To the southeast of Iran, we will build a 75km 36″ pipeline in the second part of 2017. We are constructing a 110km railway project from Tehran to a nearby city called Varamin. This project is important to the country. We are also constructing the Shiraz Metro and a 25km highway in hilly area near the city of Kerman. In our building department we are working on a business mall with 65,000sqm in the Pasdaran area. We are building the Tajrish Police Station and 1,456 flats in Karaj. This project consists of four phases. In each phase we construct seven buildings and each building has 52 apartments. Our strategy is to get involved with projects that are of strategic importance to the country.

How do you respond to the volatility in oil and gas prices?

The ups and downs in oil and gas do not have much effect on us. Iran has been under sanctions for many years already. As a major construction company, the government needs our services. The fluctuation of the oil price has of course affected the country and the cash flow of the government. We are focusing on performance and because of our good reputation, the oil and gas sector will call upon us for future tenders. Our further development depends on the entrance of foreign companies to Iran. In partnership with them we can develop our resources and our company in a better way. Currently these companies are still somewhat reluctant to invest in Iran.

What is your strategy for reaching foreign companies to partner with?

It is in the mutual interest of foreign and domestic companies to close partnerships. Companies entering Iran need a local partner that knows the rules and regulations and understands the business environment in Iran. At the same time, we are looking for new knowledge, innovation, and management systems, with which foreign companies can help us. Foreign companies choose to partner with SEKAF because we are trustworthy and transparent. We understand the nature of partnership. Our experience in different industries demonstrates our capabilities. We are currently in touch with Japanese and South Korean companies, who want us as their construction partner. We are also negotiating with an Italian company for gas-related services. It is in the mutual interest of foreign and domestic companies to close partnerships. Companies entering Iran need a local partner that knows the rules and regulations and understands the business environment in Iran. At the same time, we are looking for new knowledge, innovation, and management systems, with which foreign companies can help us. Foreign companies choose to partner with SEKAF because we are trustworthy and transparent. We understand the nature of partnership. Our experience in different industries demonstrates our capabilities. We are therefore collaborating since one year with a company named Ferramedia. This is an organization that creates cross-functional enterprises of several kinds of businesses worldwide. It manages the full cycle of a project, from inception to funding and all the way to the final execution with the support of a strong community of private and institutional partners. Ferramedia is helping SEKAF to develop the Iranian market and is bringing in Italian companies and expertise in the fields of railways, renewable energy and food and beverages. Also, we are currently in touch with Japanese and South Korean companies, who want us as their construction partner. We are also negotiating with an Italian company for gas-related services.

Are you looking to further diversify your portfolio of activities?

We are already present in many sectors. Within the oil and gas industry, our activities include pipelines, refineries, and gas compressor stations. On top of that, we construct roads, rails, metros, and buildings. Recently we have been looking to enter the clean energy industry, in partnership with the Italian company SITA. We are particularly interested in solar and wind energy. Also, we would like to expand to water projects, as herein lies one of the biggest challenges for the future of Iran.

What would you share as the most interesting opportunities that you see right now in Iran?

There exists an image that doing business is Iran involves a high risk, but this image is false. When investors come to Iran and get to know the people and the business, they will realize the risk is lower than in many countries that are recognized as investment destinations. Even more, the profit margin of doing business in Iran is high compared to our neighboring countries. We can help our international partners to manage and reduce risks. In many GCC countries, the government is highly involved in business with foreign companies. In Iran, businesses are mainly controlled by the people and resources like money and manpower are in the hands of the private sector. There are vast opportunities for investors who are willing to come to Iran. By partnering with a local company, you can then approach other clients in the country. There are many fields in which the private sector can come up with ideas, such as traffic management in Tehran. If you have a good knowledge base that has already been exercised outside of Iran, we can bring this together with our expertise and experience and present it to the government.

What is your outlook for the years to come?

Our focus for 2017 is on energy and railways systems. In these domains we see the highest demand from the government. We are focused to enter the Iraq market in the future because there will be high demand after the war. We are looking to partner with some Italian companies in this regard. This is our main aim moving forward. We are also looking for expansion to Turkmenistan and Azerbaijan, but Iraq is our priority.

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