Performance Review

Other Sectors

Alshiaka

Alshiaka specializes in designing and crafting quality thobes. The brand has cemented a presence in the Saudi market over three decades of operation and in 2015 received an equity investment from SEDCO.

Basel Masri
Chief Executive Officer

"SIX NEW STORES OPENED ACROSS THE KINGDOM — TAKING THE TOTAL TO ALMOST 60 — ALONG WITH A NEW BRAND IDENTITY AND STORE CONCEPT."

In 2019 Alshiaka increased retail revenues by 3%, business-to-business by 11%, and total business by 5%. Quantities sold rose by 8%, with a matching increase in productivity per square metre.

The company responded to economic, regulatory and market changes by expanding its network and launching a new e-commerce platform.

Six new stores opened across the Kingdom — taking the total to almost 60 — along with a new brand identity and store concept. Partnerships with Mobily, STC, Careem, Saudi Airlines and KAEC were also endorsed.

New products ranged from winter collection to specially designed Alshiaka cufflinks, while consignment agreements were signed with Albait for Ihram and with Florina for footwear.

Employee skills benefited from the launch of the Alshiaka Retail Academy and the implementation of new procedures for appraisal and recruitment, retention, engagement and performance culture issues.

Technology upgrades are part of a continuing assessment and optimization of legacy IT systems. Advances in 2019 included the launch of the new Oracle ERP system that includes supply chain, finance and retail components. Going live with store.alshiaka. com is expected to propel the brand to further growth in 2020.

Oracle Fusion and Oracle Xstore will also go live next year, improving business information processes, forecast systems, and warehouse management.

Plans for 2020 include the launch of new headgear and underwear brands, and establishing innovation centers to identify new categories, products and market trends.

Arabian Farms

SEDCO Holding owns 50% of Arabian Farms, which was established in 1978. The company operates three main units: one at Al Kharj in Saudi Arabia, and two in the United Arab Emirates (Dubai and Al Ain).

Dr. Suheel Ahmed
Chief Executive Officer

“LUTEIN ENRICHED EGGS WERE INTRODUCED TO THE PORTFOLIO IN 2018 AS A POINT OF DIFFERENTIATION IN THE FACE OF PRICE COMPETITION."

The company’s Saudi operation produces 80 million eggs a year, supplied mostly to the local market. The Dubai operation (established in 1999) produces 120 million eggs a year including special products such as Omega 3, pasteurized-shell eggs, luteinenriched and eco eggs.

Established in 2017, the Al Ain plant produces 500 tons of fresh and chilled chicken broiler meat per year. Major expansion is under way that will boost annual production to 6,000 tons, a 12-fold increase. The Al Ain operations are currently closed while the expansion project is completed.

The Al Kharj unit started working at full capacity in 2019. A new feed mill was established to facilitate production of premium-quality eggs, and a move from wholesale to retail marketing brought opportunities to improve revenues.

The Dubai operation boosted its production of premium eggs (pasteurized, eco and lutein enriched) to 23% of total production during 2019. It remains the GCC region’s sole producer of pasteurized-shell eggs and this product has been recommended by Dubai Municipality for food safety in recipes that use raw or semi-cooked eggs.

Lutein enriched eggs were introduced to the portfolio in 2018 as a point of differentiation in the face of price competition.

Looking ahead, expansion of annual broiler meat production to 6,000 tons is expected to come online by mid-2020, capturing up to 2% of the UAE chicken meat market. Work on the state-of-the-art facility began during 2019.

Ejada

Ejada is one of Saudi Arabia’s largest providers of information technology expertise. SEDCO has a 33.5% stake in the Riyadhheadquartered company which was formed in 2005 through a merger between three leading IT specialists.

Mahmoud El Leissy
Chief Executive Officer

"A STRATEGIC RELATIONSHIP HAS BEEN ESTABLISHED WITH PATH SOLUTIONS, THE SPECIALIST IN ISLAMIC BANKING SOLUTIONS, WINNING THE FIRST DEAL TOGETHER AT BANK ALJAZIRA."

The company continues to focus on executing end-to-end IT solutions and services for large enterprises in the public and private sectors, primarily in Saudi Arabia and Egypt. In the Kingdom, the public sector is driving growth, especially projects related to Vision 2030 and the National Transformation Program.

In 2019, EJADA successfully completed several national projects and won new public sector contracts. Projects for corporate clients were also secured, with banking a growing market sector.

Ejada achieved double-digit compound annual revenue growth over 2017-19, with accelerated backlog growth over the same period.

Major advancement in offshore capabilities is providing cost advantage and better scalability, contributing to growth in revenues and profitability. The company continues to invest in strengthening its internal capabilities, largely in response to high client demand for digital transformation initiatives. In parallel, Ejada is addressing market needs through new technologies and cloud-based offerings.

Strategic alignment with Microsoft has been an important factor in assignments such as customer relationship management at Al Rajhi Bank and the Ministry of Commerce — the first CRM deal by the government sector — and cloud and mobility projects at Saudi Airlines.

A strategic relationship has also been established with Path Solutions, the specialist in Islamic banking solutions, winning the first deal together at Bank Aljazira. Further growth has come from developing innovative new products using Big Data solutions.

The company remains committed to supporting local content — in products as well as people — prioritizing the development and sales of local software and attracting fresh graduates from leading Saudi universities. HR and project management processes and controls have been enhanced and automated.

Ejada won several industry awards and recognitions in 2019. Among these were Liferay’s Rising Star Partner of the Year, Oracle ISV Partner of the Year, Tableau’s Outstanding Contribution of the Year, The Alexandria University 50th Anniversary Trophy, and the Saudi Ministry of Human Resource and Social Development Trophy for Female Talent Development.