The founders of the Saudi Contractors Union Company (closed joint stock company under construction) Monday signed two contracts with the Arab Ernst and Young Company for Consultations and Professionals for Financial Consultations. Under the contracts the two companies serve as consultants to the alliance which is formed of 11 Saudi contracting companies and establishments work in different activities in the contracting sector such as infrastructure, construction, oil and gas projects, real estate development and maintenance. Apart from this, Ernst and Young Company is tasked with looking into the companies' financial potentials and work plan. On behalf of the founders, Dr Jassim Al-Remahi, Union's Executive President, signed the contract with the two companies. Addressing a press conference following the signing ceremony, Dr. Al-Remahi said the establishment of the company comes within the efforts of the development and support of the national economy by establishing huge national entities capable of carrying out mega projects in the Kingdom and Gulf countries. He said the idea of the alliance had emerged two years ago in Riyadh and Dammam pointing out that the founders had held intensive meeting in the last 27 months to reach an agreement for the foundation of the alliance. He said the alliance was a product of a long experience for 11 companies, distinguished for its dynamic management who are efficient enough to work out integrated solutions a matter that consolidates the strength of the company and increases its competitiveness ability. “This also helps it in expanding its activities by accessing new markets and getting a big market stake besides achieving a high productivity and benefiting from a significant fall in the operational cost due to the huge size of the alliance's capitals and economies. These qualities will enable the alliance to achieve the highest rate of turnover besides making it a competitive center that will enable it to achieve a leading position in the contracting industry.” He said the board of directors had set a three-year deadline as transitional period to assess the alliance's performance, pointing that the idea of the alliance had emerged two years before the global financial crisis. “This shows that the crisis was not a direct reason for the creation of the alliance stressing that the global crisis dictated the need for the creation of big entities capable of competing to look for growth and profit,” he said. He also emphasized the strong financial position of all the companies forming the alliance pointing that the value of the contracts until awarded by the company until the year 2008 was SR1.6 billon. He said the company had sought the help of reputable organizations specialized in the field of financial consultations for alliance operations in order to ensure the success of the alliance.
