Saudi companies diversify into the oil and gas sector to reap benefits

Successful companies outside the oil and gas sector are re-thinking their strategies in order to benefit from the recent rise in crude prices.

One example of such a company is Marco, which operates mainly in telecommunications but has also diversified into other sectors such as contracting, services, and civil works. It is also a provider to companies like SABIC and Saudi Aramco.

Mr. Dughaileeb M. Al-Zayed, Marco's Managing Director states, "Marco is open for diversification into oil and gas and we work within the industry because we provided services to them and we can help companies by offering manpower or representation in Saudi (or the region). The opportunities in Saudi Arabia are huge and it is amazing. As Saudi continues to grow, we will see the next five years as excellent years for anyone who wants to make money, even with star-ups. This year is the right time to enter the market and I would advise anyone who is interested to invest here. This is a secure market with sure demand, and as a business man, I would also advise them that if any company wants to walk with Marco, we will lead them down the right path."

Even industrial companies like M.H.SHERBINY FOR COMMERCE are rapidly growing to cater to demand. They are representatives for a number of U.S. and |European companies and market their products, and provide technical solutions and services support on an exclusive basis. The company has an excellent sales team that consists of professional engineers who offer services such as conceptual design, applications engineering, and supervision of commissioning and after sales services.

Since inception from their head office in-Al-Khobar and a branch office in Jeddah, the company provides products, training and services on short and long-term contracts in the electrical, instrumentation and mechanical fields. Oil and gas, petrochemical, power, desalinization and sewage industries are benefiting from their services in Saudi Arabia and the Arab states of the Gulf Cooperation Council (GCC).

A final example of companies moving into oil and gas is Raka Holding, which originally began operating as a supplier to the Armed Forces. It is now a holding company for more than six Saudi Companies with worldwide representation. It is currently one of the major suppliers to the Saudi government and provides them with maintenance, repair and services. Raka's founder, Mr. Mousa Al-Malik states 'Raka Holdings is a proven company in Saudi Arabia looking for an opportunity to do business within the Oil and Gas Field and is open to partnerships.
When I started in the power sector I searched for quality companies to collaborate and was successful. This success had led to profitable partnerships that continue to be mutually beneficial. I hope to repeat this experience within the oil and gas sector. It is always crucial for a successful foreign company to find a respects and professional local representative that can help then to establish themselves and understand the market.
This is the comparative advantage of Raka and our past experiences in energy can reassure any company who wishes to do business here". www.rakka.com