SEDCO Holding Annual Report 2012

Business Review 2012 / Direct Investments continuedEjadaAl Mahmal TradingAl Mahmal Real EstateEjada, which is 30 percent ownedby SEDCO Holding, is one of SaudiArabia’s largest regional softwareand information technology servicescompanies. Headquartered in Riyadh,it was formed in 2005, the resultof a merger between three of theKingdom’s leading IT specialists.The company has since built on eachentity’s network of alliance partnersand now has six offices and fourchannel partners across eight countriesin the MENA region, specializing inIT, enterprise solutions, and systemintegration for the technology, media,and telecommunications industries.With strategic partners such as IBM,Oracle, Microsoft, SAP, RSA, Lawson,and HP, Ejada provides a wide range ofindustry-specific products and servicescovering customer management andbusiness infrastructure. Clients includefinancial institutions, telecomscompanies, the oil and gas industry,military and defense establishments,and the government, education, andhealthcare sectors.During 2012 Ejada maintained itshigh level of Saudization as it securedsignificant new contracts thatdiversified its client base in banking,government, and telecommunications– three of its most important sectors.These contracts, and a growing pipelineof new business, are largely attributableto intensified marketing efforts during2012, leading to improved awarenessand perception of the company’sresources and capabilities. Geographicexpansion is also taking place, havingset up a joint venture in Abu Dhabi tobid for new projects.With competition becomingincreasingly aggressive, managementis committed to maintaining theheightened focus on marketingand new business development.SEDCO Holding owns an 79.3 percentstake in Al Mahmal Trading, a facilitiesmanagement specialist. Formed in1988, the company takes responsibilityfor client properties such as shoppingmalls, bank headquarters, hospitals,office towers, and residential buildings.Services include operation andmaintenance, janitorial andhousekeeping, security and safety,and project engineering and support.The company has been ISO certifiedsince 1999 and operates the latestfacilities management software.Professionalism is fundamental toAl Mahmal’s record of achievement,transferring skills and competencethrough intensive on-the-job training,while continuously monitoring andevaluating its systems to complywith the latest trends and industrybest practice.During 2012, the company receivedISO 9001:2008 certification and renewaland upgrading of its Ranking Certificatethat qualifies it to participate inGovernment sector bidding processesto a value limit of SR 30 millionper project.Negotiations are under way for jointventures with Korean and UK specialistsin facilities management, and expansionin Riyadh is a continuing priority.The company believes that itscompetitiveness can be increasedand, to this end, on-the-job training isbeing stepped up across all operationsdepartments to develop cost-effectiveand multi-trade manpower to meetpresent and future requirements.Research and development effortsare focusing on finding new ways toimprove capabilities and profitability.Training and employment of Saudinationals in all departments is anotherpriority, and in 2012 the company receivedits compliance certificate for Nitaqat,the Government’s Saudization program.Looking ahead, Al Mahmal Tradingplans to be among the top five servicecompanies in Saudi Arabia withinthe next five years, increasing annualprofit by securing more projects inthe Government, quasi-Government,and private sectors and doublingshareholders’ equity.Al Mahmal Real Estate was establishedin 2004 to manage the Al MahmalCenter in Jeddah, which is 79.3 percentowned by SEDCO Holding.Al Mahmal Center’s superior design,formidable operations, and excellentretail mix have made it one of the mostsought after shopping destinations inthe city, providing a one-stop venuefor fashion, lifestyle, and food.With 12,000 m² of leasable area,the seven-story commercial centercomprises 90 shops, 27 kiosks, 21stands, and a food court with 23 outlets.Occupancy has been running at closeto 100 percent for the past five years,with an extensive waiting list of tenants.A 550-bay parking block is connectedto each floor of the center, generatingincome through hourly parking fees forvisitors as well as long-term rentals toemployees in neighboring companies.A three-year business plan preparedin 2012 focuses on reduction of operatingcosts and increasing revenue bycontrolling expenditure and developingunused space for leasing and advertising.Al Mahmal Centre website provides itsvisitors with detailed information on thecenter’s story, location, tenant mix andfloor plans. A detailed marketing planhas been devised to sustain the growthof the company and to maintain theprominent market position of the center.The company has achieved itsSaudization percentage in 2012 andhas allocated a budget for ongoingtraining and manpower developmentin specialized fields.36 Annual Review 2012 37