From an investment of QAR 500,000 in 1983, the Qatari group Al-Sulaiman Holding has grown into a giant with revenues of QAR 650 million in 2011 and chairman Nasser Sulaiman Haider says he wants to take that to QAR 1 billion by 2015.
The group operates in diverse fields spanning a wide range from energy to technology and real estate.
It is now being restructured in preparation for an initial public offering in this period, after which it will be traded on Qatar Exchange, Haider told Zawya in an exclusive interview.
Haider says he wants to strength Al-Sulaiman Holding and increase its income to be more attractive for investors. The group recorded 15.3% revenue growth in 2011 to reach to QAR 650 million (USD 178.5 million) compared to with QAR 550 million (USD 151 million) in 2010.
Excerpts from the interview:
How did you set up the group? What was the vision?
The beginning was in 1983 as a company for services and maintenance in the field of construction with a modest capital not exceeding QAR 500,000 (USD 137,000). In the early 1990s, the company expanded its activities and started to work in other fields. We used to buy land then develop real estate and offer it for rent or sale to investors and businessmen.
Today, Al-Sulaiman Holding has 27 companies with 1500 employees. The group operates in different sectors. The best known company in the group is Petronash, which works in the oil and gas sector and covers Qatar, Dubai, Saudi Arabia, Abu Dhabi, Oman, Italy, India, US and Malaysia. There are also Qatari Industrial Equipments, Al-Sulaiman Jewelry & Watches, and others for real estate such as Lavilla Real Estate, for tourism and travel such as Al-Sulaiman Travels, shipping services such as United Shipping Services, for information technology such as Smartech, for communications Ettisal, and for education such as Universal Schools.
Which are the sectors that you focus on most?
Al-Sulaiman Holding concentrate on four sectors - energy, jewelry, information technology and traffic technology. Petronash, which has a factory at Jebel Ali in Dubai, produces equipment and devices used in oil and gas wells. The factory has been operational since 1999 and exports its production to all countries of the Arab Gulf, some in Europe and Vietnam. We will set up a second production facility at Dallas, Texas, in the United States to service the North and South American markets.
Our company in the jewelry sector has 25 branches in Qatar and some more in the Gulf countries.
How did the group perform in 2011?
The year 2011 was very difficult for all of us because of the continuing and increasing economic and financial crises which faced many countries around the world and because of the Arab Spring revolutions. However, we at Al-Sulaiman Holding Group did not stop any activity; we just stopped some expansions which we planned to execute, especially in jewelry field. We were seeking to open new branches for jewelry in Saudi, Bahrain, Kuwait and Jordan, but we postponed it until the political situation calmed down in the region.
Do you plan for investment in the countries of the Arab Spring?
Actually, there are different investment opportunities in these countries' markets. But we did not want to gain benefits from others' crises. The danger in these markets is very great but the income is also great. We are currently negotiating with investors to enter the Libyan market in the information technology field.
Which activities gain the greatest revenue for Al-Sulaiman Holding Group?
Jewelry and oil and gas activities contribute 30% of the group's annual revenues.
Are you planning to issue shares and list the group on a stock exchange?
I thought about this before 2008, but things did not encourage me due to the financial crises and the global economic circumstances. We are restructuring the group's activities. We want to increase expansion and support the performance of the group more before turning it into a joint-stock company.
We plan to increase the group income to QAR 1 billion so that we can think after that about turning to a joint-stock company. It may happen during the next four years.
What are your investment priorities at this stage?
Currently, we concentrate on the activities which we can add to the company's activities and at the same time for the growth of the group. We have industrial projects to be studied. And we have an idea for a project of manufacturing solar panels which supports saving energy. Also we seek to expand the factory for fire-resistant clothing.
© Zawya 2012
