| 13 Mar 2010 |
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Opportunities abound in SMEs: Mardam-Bey
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JEDDAH: Saudi Arabia is one of the world's most exciting and emerging markets, according to Siraj CapitalSiraj Capital
's CEO Ibrahim Mardam-Bey. "I see exciting opportunities supported by strong emerging market fundamentals, specifically in the telecom, media, technology, consumer goods, food and beverage, real estate, and health care sectors," he said in an exclusive interview with Arab News.Mardam-Bey said SirajSiraj aims to be recognized as a leading regulated boutique merchant investment and finance company, focusing on delivering and managing greenfield projects in partnership with leading international groups, early stage growth capital investments.
The company also aims to manage and opportunistic Islamic finance transactions for partners, clients and shareholders.
"We specialize in working with small and medium size operating companies who have tangible customers, differentiated business models and the operational platform to grow, organically, and through mergers and acquisitions into exceptional regional enterprises," he added.
Siraj CapitalSiraj Capital
is a leading Saudi-based private equity group that is focused on opportunities in the Middle East-Gulf region.The company operates out of offices in Riyadh, Jeddah, Dubai (Dubai International Financial Centre) and Beirut. Being a financial solutions provider, Siraj CapitalSiraj Capital provides Shariah-compliant and conventional debt and equity financial services to its international clients.
Excerpts:
Siraj CapitalSiraj Capital has a vision to be recognized as a leading regulated merchant investment and finance company in the region. How will you achieve this vision?
By attracting key talent, and like-minded people we feel we have built a solid platform that will allow us to achieve a leadership position in the space in which we operate. Moreover, Siraj CapitalSiraj Capital has an extensive network of regional partners that we collaborate with on various initiatives.
Are you managing any greenfield projects with leading international groups in the region?
Siraj CapitalSiraj Capital is specialized in working with small & medium size operating companies. Can you elaborate on this?
Siraj CapitalSiraj Capital has strategically decided to target a market segment that is heavily underrepresented in our region. This is the early stage growth capital segment of small and medium enterprises (SMEs). These companies tend to be too risky for banks to lend to and too small and young for the large regional funds to invest in. As such, we felt that there was a market gap and an opportunity that we can target in order to achieve superior returns for our shareholders while at the same time helping these nascent companies grow.
Islamic finance is growing by leaps and bounds globally. How is Siraj CapitalSiraj Capital involved in Shariah-compliant financing?
Siraj CapitalSiraj Capital has a dedicated structuring and arranging Islamic finance advisory arm that handles various Shariah-compliant financing mandates both regionally and internationally.
The Gulf has not fully recovered from the effects of the global financial crisis yet. In these tough circumstances what will Siraj CapitalSiraj Capital do to deliver value to investors, clients and shareholders?
Siraj CapitalSiraj Capital focuses on healthy early stage growing business in the region and particularly in Saudi Arabia. We take very active management roles in these companies at a strategic level and provide them with all the support they require in order to achieve their full potential. Given the early stage nature of these businesses and the encouraging demographic drivers in the Kingdom, many of these companies are growing at triple digit growth figures, thus ensuring favorable returns to all the parties involved. We are proud to announce that 3 of our portfolio companies achieved leading ranks in the Saudi Fast Growth 100 list last year.
Siraj CapitalSiraj Capital takes an active role in helping CEOs achieve their business blueprint. How does this system work?
SirajSiraj typically attains substantial board representations in the companies we invest in. These board members help set and drive the company's general strategy and expansionary direction. In addition, our team works with the CEOs of these companies on a daily basis to provide the expertise and support these entrepreneurs require to achieve their targets.
Siraj CapitalSiraj Capital has various partners and alliances. How do these partnerships work?
Where it makes sense, Siraj CapitalSiraj Capital is always open to partnering with other entities through strategic alliances. The nature of these partnerships tends to be on a case-by-case basis.
Apart from Saudi Arabia, Siraj CapitalSiraj Capital has offices in Dubai, Lebanon, and the Channel Islands. What are the roles of these offices?
Siraj CapitalSiraj Capital is a regional player, and as such requires a regional footprint. These various offices allow us to expand our network regionally to source deals and better support our existing portfolio.
Recently Siraj CapitalSiraj Capital signed a deal with InterContinental Hotels Group (IHG) for establishing the first three Holiday Inn Express hotels in Saudi Arabia. The three new hotels will be located on Madinah Road in Jeddah, Knowledge Economic City (KEC) in Madinah and King Abdullah Economic City (KAEC) in Rabigh. What can you tell us about these projects?
SirajSiraj has secured the exclusive right from IHG to develop and operate the Holiday Inn Express chain in Saudi Arabia. These three hotels are the first of a series of developments that Siraj CapitalSiraj Capital will be rolling out in the Kingdom over the coming 5 years.
Siraj CapitalSiraj Capital recently participated in the second annual Saudi Fast Growth 100 as part of SAGIA's (Saudi Arabian General Investment Authority's) Global Competitiveness Forum in Riyadh. You were a strategic sponsor and nominating partner of Saudi Fast Growth 100. Do you believe it is a challenging job to keep track of fast growth companies?
It is definitely a challenging job to source these companies and to keep up with their massive growth stories. However like every investment, big challenges come with big returns. When I talk about returns in this case I don't mean it in the financial sense but in the social sense whereby we are honored to have the opportunity to contribute and support these young dynamic Saudi entrepreneurs who represent the future of the Kingdom.
By KHALIL HANWARE
© Arab News 2010
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