Khaldoun Tabari, CEO, Drake & Scull International PJSC (DSI) believes the economic climate in Saudi Arabia is encouraging for foreign investors, contractors and developers. “We are a Gulf-based company and looking for opportunities that offer the best returns on investments for our shareholders. We have over 20,000 shareholders from countries such as Saudi Arabia, Bahrain, Qatar, Kuwait, Jordan and Lebanon,” Tabari told Saudi Gazette after participating in a panel discussion at the recently held Euromoney Saudi Arabia 2011 Conference in Riyadh. Drake & Scull has been engaged in a number of projects in Saudi Arabia. “We have a bright future in the Kingdom,” he said. Tabari said the Kingdom's business environment has kept on improving over the years because of economic reforms and this has created a lucrative environment for potential investors. The long-awaited mortgage law is about to be passed in Saudi Arabia, which will further boost confidence to do business in the Kingdom, he said. “Some 10 years ago it would not have been possible for an expatriate worker to buy a house in Saudi Arabia. However, things have changed now. The new mortgage laws will fuel more economic growth in the Kingdom, because foreign workers can get loans to buy a house in the country,” he said. The potential for business in Saudi Arabia is unlimited, said Tabari. The government is spending a lot of money, the private sector is investing and foreign investors are investing, he said. “I think the future for business in the Kingdom is very bright. We are very optimistic despite issues reported in the media related to lending and other issues that are a normal part of any business activity,” he said. He said Drake & Scull is a regional market leader delivering world-class integrated engineering through Mechanical, Electrical and Plumbing (MEP) disciplines, Civil Contracting and Water and Power solutions. Tabari said his company recently formed a joint venture company Al-Zamil Group with Saudi partners and has acquired a 100 percent stake in the International Center for Contracting Company (ICC) for SR128 million. “We have created a new company organically grown called Drake & Scull Water and Power for EPC – engineer, procurement and construction in the Kingdom,” he said. Drake and Scull has approximately SR4 billion worth of works in areas such as civil, electro-mechanical and EPC. “We have met our backlog in the Kingdom out of our total value of SR8 billion worth of projects. We have over 50 percent of our work currently based in Saudi Arabia,” explained Tabari. He added tgar his company is currently engaged in the execution of projects for both public and private sectors. “As a Gulf company, we are facing some problems because of regional upheaval in countries such as Bahrain, Syria and others because of their geo-political situation. This we hope will be resolved with time,” he said. However, he said Saudi Arabia is one of the most stable countries in the region because of the country's leadership and economic policies. “We see lots of stability in countries such as Saudi Arabia, the UAE and Qatar. The investment and business climate in these countries will thrive and offer lucrative opportunities for investors,” he said. He said the SR580 billion national budget, which is the largest state expenditure to date, the SR290 billion homebuilding fund and the latest mortgage law represents a strategic incentive for Drake & Scull to further expand and seek growth in the Kingdom's attractive market. The company's long history in the Kingdom, since 1979 and the establishment of its wholly owned subsidiaries, Drake and Scull Construction (DSC) and Drake and Scull Water and Power (DSWP), further cements its presence and operations in the Kingdom, placing it at the forefront of the country's urban development revolution. Some of the projects that the company has completed since the early 1970s include Intercontinental Hotel and Conference Center in Riyadh, Tabarjal Hospital, Mina Hospital and Health College, and King Abdullah University of Science and Technology (KAUST). In 2010, DSI managed to secure a series of consecutive projects in Saudi worth SR1.2 billion in the Mechanical, Electrical and Plumbing sector, Civil and Water and Power sector which includes Al-Jawharah Tower in Jeddah and the iconic Information Technology and Communications Centre (ITCC) in Riyadh. The company started 2011 by recently securing the iconic King Abdullah Petroleum Studies and Research Center (KAPSARC) project in Riyadh worth SR2 billion.
