SUCCESSFUL EVOLUTION
TBY talks to Jamal Amrhar, General Manager of Construction Material Chemical Industries (CMCI), on the development of the firm and the state of the sector.
BIOGRAPHY
Jamal Amrhar is the General Manager of CMCI. He has a PhD in organic chemistry with 22 years of hands-on experience with industry leaders in paints and coatings in the Middle East and North Africa.What was behind the creation of CMCI over three decades ago, and how has the company evolved since?
The growing demand for construction chemicals in Saudi Arabia and the Gulf was behind the establishment of CMCI back in 1984. The company grew from one production facility in Dammam First Industrial City to three production facilities at present and a planned production facility in Bahrain in the coming months. Today, the company produces a wide range of construction chemicals serving all building and construction projects requirements starting from the foundation to the finishing stages. Our successful evolution over the years was not only built on our breakthrough technology throughout the manufacturing process, nor just in our procuring the highest-quality raw materials, but also in implementing the toughest quality control and quality assurance measures at our manufacturing facilities and testing laboratories.
How would you describe the key sectors and clients served by CMCI in the local market?
CMCI services the biggest companies in the Saudi market across a broad variety of sectors. We are proud to serve the biggest oil company in the world, Saudi Aramco, as well as SABIC, the Royal Commission of Jubail and Yanbu, and SEC. Whether the project is a mega industrial project like SATORP or SADARA, or a refinery project like Jazan Refinery, our products are catered toward serving the most advanced companies and technologies across the country. We also have experience in supplying key industrial complexes like MAADEN's Ras Al Khair, in addition to housing projects in Jubail, Dhahran, and Riyadh with SABIC. Our well-established presence within the construction sector has given us access to products and services to major builders such CCC, Azmeel, Khonaini, Nesma, NCC, SSEM, Gussan, Sinopec, and China Harbor, to name few.
How has CMCI looked to overcome challenges related to the drop in the oil price, and with Vision 2030 reforms firmly in place, is the sector back on the stage of growth?
The decline of oil prices has been reflected in the number of projects delivered in recent years, which has been quite low. While we are happy to see that many of the notable megaprojects, including KAEC and Jeddah Tower, are back on and momentum is growing, as there have been significant delays or cancellations that have impacted the industry over the years. However, CMCI had its strategy shifted from focusing on mega industrial projects to focus on housing, power, and maintenance projects. The result of this strategy enabled CMCI to reduce the effects of the construction market slowdown to a minimal and diversify our growth strategy for when the construction sector rebounds, as we are seeing signs today. CMCI believes the construction market has huge potential in the years ahead and we are working on our strategy in anticipation of this. The increase of oil prices recently provides us the confidence in the market's prosperity and growth. On top of this, we are encouraged by the widespread Vision 2030 reforms and the impact this will have on the industrial, power, construction, and oil and gas sectors. It shows that the country has a vision, and we are aligning ourselves accordingly.
What proportion of your production caters to GCC and wider Middle East markets, and how are you aiming to expand your overall exports?
Our present exports share is between 10 and 15% of our total turnover. However, CMCI plans are to increase our export market to 25-30% in the coming years, focusing on Gulf countries and other parts of the Middle East as well. As already mentioned, we expect to open a new plant in Bahrain in the coming months, which will support our growth ambitions in the region. In addition to this, extensive marketing efforts will be exerted and we will restructure our export department to be closer to our customers. We are on the constant lookout for international opportunities and are excited about building our business further.
What are your expectations for the year ahead?
Since the beginning of 2017 we are witnessing uncertainty in the market, resulting in some of the large contractors being withdrawn from the market due to financial difficulties. Nonetheless, things are gradually starting to pick-up again and we believe the market is now moving toward stability. In light of this, we have focused the majority of our projects toward housing and power projects as the growing demand in both sectors suggest that upcoming projects are both necessary and inevitable. We are also expecting Aramco to release new projects toward the end of the year, and as we have seen with its recent IKTVA initiative to support localized supply chains, we are eagerly anticipating the opportunities that will arise in the years ahead.
SUCCESSFUL EVOLUTION
TABLE OF CONTENTS
Column
YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister’s Office & Second Minister of Foreign Affairs and Trade, Brunei
TBY talks to YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister's Office & Second Minister of Foreign Affairs and Trade, Brunei, on the sector.
read articleReview
A Crude Awakening
The Kingdom has made renewables a critical aspect of its ambitious Vision 2030 effort to diversify its economy and wean itself from a strictly carbon-based diet, not to mention empower local businesses and individuals to take up the mantle and lead the energy sector into the next generation.
read articleInterview
Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) , Saudi Aramco,
TBY talks to Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) at Saudi Aramco, on the IKTVA program, supporting local content, and looking back over a successful year.
read articleInterview
Ayman Abdullah Alfallaj, CEO, Thiqah
TBY talks to Ayman Abdullah Alfallaj, CEO of Thiqah, on how the private sector can keep pace with the speed of public reforms, delivering a strong and lasting value proposition, and integrating the fruits of privatization into the public sector.
read articleFocus: Technology Investments
Investment Calling
A technological revolution is underway in the Kingdom. Already one of the most tech-savvy nations in the Middle East, the Saudi market has long sought a thriving domestic technology and innovation scene. And with Vision 2030, it is on course to deliver just that.
read articleReview
A Hejaz Unhindered
An ambitious series of road and rail projects from the Jordanian border down to the Indian Ocean are slated to open in part before the end of 2017. They bring the Kingdom that much nearer to its goal of greater non-carbon-based economic integration with the world.
read articleInterview
Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and Minister, Civil Service
TBY talks to Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and current Minister of Civil Service, on an attractive legislative framework for investment, railway linkages, and port developments.
read articleInterview
Rumaih M. Al-Rumaih, President, Public Transport Authority (PTA
TBY talks to Rumaih M. Al-Rumaih, President of Public Transport Authority (PTA) & Acting President of Saudi Railway Organization, on teaming up with commercially committed partners, making sure the Kingdom's land and sea bridges are of the first order, and providing employment for all the Kingdom's inhabitants.
read articleInterview
Nabeel M. Al-Amudi, President, Saudi Ports Authority, and Minister of Transport
TBY talks to Nabeel M. Al-Amudi, Minister of Transport, and President of Saudi Ports Authority, on optimally restricting concession agreements, resolving bottlenecks in the logistics chain, and privatizing as rapidly as possible.
read articleInterview
Khaled Bin Abdullah Al Hogail, CEO & Managing Director , Saudi Public Transport Company (SAPTCO)
TBY talks to Khaled Bin Abdullah Al Hogail, CEO & Managing Director of the Saudi Public Transport Company (SAPTCO), on the importance of strong and rational regulations, knowledge transfers, and unifying public and private transportation networks.
read articleInterview
Imad El-Zein, CEO, Auto World-Sixt Saudi Arabia
TBY talks to Imad El-Zein, CEO of Auto World-Sixt Saudi Arabia, on growing market share in challenging circumstances, partnering with world-class players to boost its local presence, and combining better services with lower costs.
read articleInterview
Saleh H. Al-Ghamdi, Acting CEO, Saudi Air Navigation Services Company (SANS)
TBY talks to Saleh H. Al-Ghamdi, Acting CEO of Saudi Air Navigation Services Company (SANS), on maximizing safe and effective services, effectively increasing the rate of Saudization, and easing the pathway of women into the workforce.
read articleInterview
Khalil Kutubkhanah, CEO, Jeddah Development and Urban Regeneration Company (JDURC)
TBY talks to Ibrahim Khalil Kutubkhanah, CEO of Jeddah Development and Urban Regeneration Company (JDURC), on Jeddah's unplanned settlements, the company's redevelopment projects, and its partnership model with the private sector.
read articleInterview
Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister, Planning and Health & Director of the Vision Realization Office
TBY talks to Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister for Planning and Health & Director of the Vision Realization Office, on reforms within the Ministry of Health, the corporatization of healthcare provision, and transformations in care delivery.
read articleInterview
Mohanad A. Dahlan, CEO, University of Business and Technology (UBT) Company
TBY talks to Mohanad A. Dahlan, CEO of University of Business and Technology (UBT) Company, on the evolution of the company, education investments, and upcoming sectors that will need support from the sector.
read articleFocus: Universities
Broad and Deep
As part of the continuing decentralization of higher education in Saudi Arabia, individual universities are pursuing their own paths to grow their faculties, engage with various international stakeholders, and ultimately move toward a more privatized future.
read articleInterview
Rafique Izhiman, Area General Manager KSA Jeddah, Yanbu Hotels
TBY talks to Rafique Izhiman, Area General Manager KSA Jeddah/Yanbu Hotels & General Manager, Intercontinental Hotel Group (IHG), Jeddah, on the role the firm plays in the market, expanding its footprint in the country, and expectations for 2017.
read article
