Downturn resistant

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Mohammed Samkari.

Mohammed Samkari of ABB shares his views on the Saudi Arabian market and says that the kingdom has been good for the company with the future only looking brighter.

How confident is ABB in the Saudi Arabian market and has the downturn affected the company's operations and plans there?

We've seen and experienced a rise in demand for our power and automation technology solutions in the kingdom over the past 12 months, due to the Saudi government's efforts to upgrade the energy and utilities sector. Based on orders we've seen no downturn in the Saudi market at all.

What sorts of profits has the company seen in Saudi this year as compared to a similar period last year?

Our order backlog has increased and our profits are up over 2009. While we can't give out numbers, the increase in orders from the public sector, especially from government utilities, is notable. We've won a number of large projects, including one for US $60 million with Saudi Electricity Company.

Are companies beginning to show more confidence in the market and more of a willingness to spend?

The private sector is moving more cautiously, but we are still seeing more orders from privately owned companies as they look to drive efficiency and reduce costs. However, the government is driving spending and growth.

Would you say Saudi Arabia is the strongest market in the GCC?

Saudi Arabia has a population of around 26 million people and a land mass which is the same size as Western Europe, so it's always going to be the biggest market in terms of what we do. That combined with the strong population growth, the majority of the population being under the age of 24 and the economy opening up to foreign direct investment, means that business is only set to get better here. We do have mega projects across other markets in the GCC, so Saudi is not the only market that is growing for us.

Are projects carrying on as planned in Saudi Arabia and would you say companies are still growing in the kingdom?

Oil prices are stable and the kingdom is still enjoying strong economic growth. In general, government projects are going ahead on time and as budgeted. We've been adding staff to our operations here to cope with the rise in demand for power generation solutions. ABB now has over 1300 employees in Saudi Arabia and we're still growing.

What value of projects is ABB expecting to pick up during the course of 2010?

This is always the hardest question to answer. We're expecting modest growth over 2010 and we are preparing for profitable growth over 2010 buoyed by continued government spending. If the private sector becomes more aggressive in their growth plans, that will have a positive impact for us, but there's so many different issues involved - the health of the global economy to name but one - that we can't really put a guess as to how quickly the private sector will pick up next year.

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READERS' COMMENTS

On behalf of ABB Cont Employees
Posted by basil al-hakami, Jeddah, Saudi Arabia on Saturday 24 October 2009 at 11:44 UAE time


WE wesh all the best to our presidant
Happy to participate in this growth
& Proud to work for ABB

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