BIZ BAHRAIN JAN-FEB 2018

Interview | Khalid Almoayed
As Chairman of one of the larger
companies in Bahrain, and as a part of
Bahrain’s growth for many years, you
have been witness to many milestones
and landmark events. Can you tell us
what are some of the biggest changes that
you see today in the country’s business
sector?
Bahrain has grown and with it
the business sector has grown quite
considerably with many new elements
added. Foreign investors have come and
have taken the country by storm, and this
has changed the entire picture. Regionally
too there are big changes. We were one of
the most thriving economies but now we
have countries that are much bigger than
us on all sides. It’s a completely different
atmosphere now. Malls, hypermarkets
and super stores, and while Bahrainis
complain that they cannot compete,
we still welcome them knowing that
they have helped increase the size of
the market. Many things have changed
and sometimes the pace and the sheer
magnitude of the changes happening feel
overwhelming, but Bahrain has always
welcomed people from other countries.
It’s always been known for its hospitality
and openness.
In the old days there were only
a few families running business
establishments. As children we used to go
to the my father’s office (A.K. Almoayed)
in the afternoon after school and work at
learning the tricks of the trade - buying
and selling; import and export - this is
how we learnt. But today I don’t think in
the current market such things would
ever be possible. My children are working
with me, but it is difficult to hold the
interest of the younger generations and
to keep them interested in the little
things like we were. Their focus now is on
different things. The playing field is much
bigger now so they have to reach out to
quite a lot.
What do you think are your company’s
biggest strengths today?
I have really never thought about that
because we just went on doing what we
had to and one thing led to another. But
thinking about it now, I would say it’s in
the commitment to the business and in
the way that we have tried to diversify
into other markets, including Saudi
Arabia and Dubai. Our efforts began in
1998 with the graduation of my sons,
when we realised our ability to create
a vehicle that houses and supports
new business ventures that benefit the
economy by creating jobs, services and
other opportunities for Bahrain and the
GCC. We had initially started by focusing
on services, after which we moved to
lifestyle and retail pursuits. Today, we
employ a capable team that works in
various fields, such as IT, Transport,
Contracting and Travel among others in
the hope that we can continue to benefit
the gulf economies while supporting the
younger generations capabilities.
In Bahrain, you cannot expand
vertically because of size, so we have to
expand horizontally. This has always
been the problem with business families.
We represent some of the biggest brands,
but it’s still a challenge and not as easy
as it may look from the outside. We have
to compete and fight with so many new
competitors in the market. It’s a vicious
cycle but that is how business is today.
Our efforts began in
1998 with the graduation
of my sons, when we
realised our ability to
create a vehicle that
houses and supports
new business ventures
that benefit the
economy by creating
jobs, services and
other opportunities for
Bahrain and the GCC.
What about your presence in the logistics
sector? Is that an area where there is
greater growth and scope?
The Logistics sector has grown a lot in
recent years. With all the big companies
coming in there was a real need for
transporting goods and storing them. Our
logistics department, and shipping and
forwarding has done very well. I think we
have a lot of growth potential in that field
though many people have gone into it and
they are building their own warehouses
and so on.
There are challenges every day
in every area of business. The travel
department for example, has gone south.
It is not a profitable business anymore
because most people now prefer going
online and buying their own tickets and
planning their travel without help. So one
has to think out of the box and provide
that extra bit. We focussed on tourism
which actually now works better than
GSAs (general sales agencies).
What are the plans for the next few years?
Is there a Vision 2030, reflecting what the
country is growing towards?
The vision is to expand now. We have
to expand; we have to keep going, and we
have to look for new territories and new
products that we can handle. We hope we
can survive the challenge especially after
the opening up of the market.
Having had a head start amongst the GCC
countries, do you think that Bahrain is
better geared for diversification from the
oil sector?
That head start has been good for
Bahrain and has taken away a lot of the
pressure, but it is difficult to say that
the diversity of today’s business climate
is solving the problem because it’s
also bringing in a new set of problems.
When you are allowed to bring workers
from outside, what do you do about the
Bahrainis who are working with you?
You want them to be taken care of and
appreciated, but you also have to look at
what works best for your business.
What about tackling unemployment? It’s
one of the governments biggest priorities.
How can small and medium companies
contribute to that?
Today in Bahrain foreign investors
can take agencies and bring in employees
from outside. The labour force in Bahrain
is complaining that the Chamber is not
doing enough for them, which is not
true. The Chamber is not a government
department that makes policy. We can
protest, and we have protested. But the
priorities of the government are wider and
therefore different from the priorities of
the business people. We try to support the
government and co-exist. The majority
of the work force today is employed by
the private sector but the private sector
cannot accommodate everybody, so it is a
struggle there as well.
We are pleased that Bahrain will be
26 January-February 2018