Business | Economy
Interview of the week: 'Dark clouds beginning to lift'
The Saeed & Mohammad Al Naboodah Group, which operates 20 companies, has been in business for more than five decades.
- By Zaher Bitar, Staff Reporter
- Published: 22:48 July 2, 2009
- Al Naboodah says that over the long term the group wants to seize opportunities in cargo, tourism and logistics.
- Image Credit: Supplied picture
Dubai: The Saeed & Mohammad Al Naboodah Group, which operates 20 companies, has been in business for more than five decades.
It employs more than 45,000 people and provides a range of products and services through four core sectors - construction, commercial, investment and real estate.
In an interview with Gulf News, Swaidan Saeed Juma Al Naboodah, Vice-Chairman of Al Naboodah Commercial Group, Executive Committee Member and Board Director of Saeed & Mohammad Al Naboodah Group, said the group's philosophy is to put customer service and the welfare of their employees at the centre.
Swaidan was educated in the United Kingdom. He returned to Dubai to play a key role in the family business.
GULF NEWS: Like most countries around the globe, the job market in the UAE has undergone a dramatic change. Do you think the impact of the financial crisis is subsiding?
Swaidan Saeed Juma Al Naboodah: The fact of the matter is, no place in the world is immune from the crisis. Dubai is home to companies that have been directly affected, so its economy is going to suffer.
There is job insecurity in certain industries. I know many expatriates have lost their jobs and businesses. But it is not going to go on like this forever. Dubai has started getting over the crisis.
Do you see more expatriates leaving the country?
Some people will leave. But at the same time more people will relocate to Dubai in the coming months. The economic crisis is a global problem. We should not forget that Dubai has been the Middle East's business hub and an attractive destination for investors since its doors were opened to foreign entrepreneurs.
Thanks to its free-market economy and developed infrastructure, the emirate is still witnessing a continuous inflow of investors. There is no need to worry.
Has your business been affected?
Of course our business has been affected, especially in the construction sector. However, we still have a kind of balance as all our projects are going ahead. We have a stable schedule of work and payment.
But the crisis forced us to terminate the jobs of many construction workers. In the commercial sector also there was a big loss as vehicle sales declined 40 to 50 per cent between December 2008 and April 2009. Overall, we are doing well and our turnover is up to Dh1 billion in the commercial sector.
Considering the big size of your business, how did you manage the crisis?
We have a section for crisis management that handled this issue and prepared an adequate plan. We could identify which sectors of the company's business would be affected more and addressed the problem. We broke down the crisis action plan into time-sensitive components. We saw what had to be done in the short term.
Then, taking the same elements from the short-term plan, we drew up a similar list - but with different actions - that had to be taken over a longer period of time. We stay informed and in control of what is going on with our business. Also, we are keen to protect and increase our cash flow.
How do you keep the business strong?
Al Naboodah Group's philosophy is to put customer service and the welfare of their employees at the centre.
With the support of our partner and employees, we could achieve this powerful brand name and kept our business strong. We have good relations with our employees, who are united in purpose, sharing and pursuing our vision with diligence. We strive to listen to our customers.
What is the biggest deal or investment that Al Naboodah ever signed?
Our recent deal with Roads and Transport Authority for purchasing 518 Citea buses, and including an eight-year maintenance contract. It is worth Dh1.9 billion.
We are also proud of our partnership with RTA in the Metro project. It is also a significant achievement for us to be part of the history by associating with the Metro project.
What is your forecast for businesses in the UAE?
The dark clouds have started to disappear.
Regarding the contracting and real estate market, I think there would be little opportunity for good investment. The government and semi-government companies are going ahead with this business but the opportunities of investment in this sector are very poor.
Moreover, it is very difficult to give any expectation about the progress of this market amid the financial crisis. However, I see a great potential in cargo and logistics.
What are your plans for the commercial sector?
The commercial sector of Al Naboodah Group covers travel and tourism, freight forwarding and logistics, electrical products and services, tyre distribution, an automotive division, heavy equipment and commercial vehicles division and agriculture and pest control division.
I have two plans: In the short term we are trying to get back to our business level after the shortfall during the crisis. We want to stay in healthy business for the two coming years.
Over the long term, we are keen to grab the opportunities in cargo, tourism and logistics. The first step I am going to take is to expand the cargo sector in the company.
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