VOICES FROM THE SECTOR: TRANSPORT AND LOGISTICS
What role does Enterprise play in your company and the Saudi economy?
Thanks to Enterprise, Ajar has been able to continue in its international business expansion in the GCC, Levant, and Austria. Through our newly established regional office in Dubai, we oversee the three brand names—Enterprise, National, and Alamo—covering all segments of this industry and giving our customers the capability and flexibility to choose different schemes in rentals, rates, and availability. As the largest family business worldwide in the rental car business, with ownership of almost 2 million cars, Enterprise partnered with Ajar, a well-known and capable company, to represent it in nine countries and further expand our business in the region and into Asia. The UAE is our second-largest market, and we are bullish on that. We will participate more regionally to establish our presence and let the market know what we can offer.
What will be the impact of the car sharing services, and how should rental car companies adjust to this shift?
Car sharing companies like Uber and Careem have had an effect on the rental car business, which is why we are developing our own app, starting an operation with a car-sharing program that we will announce shortly. This step will take us into the digital market, where competition will increase in the coming five years. That is why we are preparing ourselves now. Investing in technology is a necessary measure to maintain competitiveness. For this reason, we will focus on our social media presence for all three brands focusing on Saudi Arabia and then the entire GCC. Content building will be the first step to ensuring we are raising awareness of the market and establishing a great presence. We are also doing some strategic targeting with certain events.
How do your operations work, and how you work with your local sourcing and trading networks abroad?
SIEC is the only publicly listed trading house company in Saudi Arabia, which is a key differentiator between us and other companies in the field. We are a one-stop shop covering the needs of the Saudi industrial sector. We take care of the products from the factory door to the end user. Our three decades of experience materializes from day one, from the minute we initiate the trade, to taking care of the logistics, storage, warehousing, and shipping, as well as customs clearance in other countries. SIEC handles the entire value chain, though sometimes we work with our trusted partners depending on the volume and quantity and the supplier. Sometimes we outsource parts.
What role does technology play in your current logistics operations and in the future?
Because we are generally focused on exports, we deal with products that have an advantage in being exported. The government is currently putting in the infrastructure to make manufacturing in Saudi Arabia more competitive. One of the biggest costs associated with exports is logistics; not having a train and other proper logistics just increases the cost. We are present in a few free zones, and the technological aspect is just managing the warehousing and inventory. We are not exposed to logistics in Saudi Arabia because we are selective in terms of the manufacturers we work with. They have to be based on the east or west coast, unless they have an extremely competitive product. Once the infrastructure is in, we can start looking into those manufacturers in the central or northern regions.
What was the driver behind your entry into the Saudi market in 2017, and what was your strategy for adjusting to its demands?
We are among the top companies without a partner in Saudi Arabia. The country saw that we had great potential, and has been highly supportive, being particularly appreciative of the flexibility we are able to offer travelers. In 2016, we were invited to participate in a tender for a lounge in Riyadh in Terminal 1, which we won. We took over this lounge in August 2016 and renovated it while in the midst of operations. The traditional businessman seeks three things: a comfortable seating area with sufficient electric outlets, fast and reliable Wi-Fi connection, and good coffee with a small snack. We currently have around 50% of our customers flying on business class, 25% traveling as leisure tourists, and the rest are families and young people. To retain customers, and keep them excited about coming to our lounges, we have developed a number of unique offerings. In 2017, we were invited by the Dammam Airport Company (DACO), and after winning the tender we opened our second lounge at the Dammam International departure terminal. Moving forward, we plan to expand our business to the new Jeddah KAIA airport.
What is your assessment of the travel infrastructure within Saudi Arabia?
The nation's infrastructure is in the midst of a substantial overhaul, which has been a long time coming. The airport infrastructure was quite old, and the Kingdom has worked hard to revamp its facilities accordingly. Passenger numbers are increasing, and the country needs new and updated facilities. The country also needs to build up its commercial capabilities, and airports are developing robust retail components, with the government working closely with private partners to ensure that healthy development takes place.
VOICES FROM THE SECTOR: TRANSPORT AND LOGISTICS
TABLE OF CONTENTS
Interview
Mohammed A. Al-Mowkley , Deputy Minister of Water Services, Ministry of Environment, Water, and Agriculture & CEO, National Water Company (NWC)
NWC leads the Kingdom's efforts to preserve water as a non-renewable national resource and drastically reduce the average per capita water consumption.
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Majed H. Al Saadi , Managing Director, Priority Projects Office (PPO), Local Content and Government Procurement Authority
PPO and ECA act as an accelerator for the realization of Vision 2030 by bridging the gap between the private and public sectors and helping the government diversify the economy in the long run.
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HRH Princess Hala bint Khaled bin Sultan Al-Saud C, Chairman, Saudi Law Conference (SLC) organizing committee & Founder,, Burhan Almarifa
Burhan Almarifa is focused on maturing the legal sector, encouraging innovation, and enabling research and development in KSA through knowledge transfer and consultancy.
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