In step with the Saudi drive to diversify

Saudi Arabia

Osman Ibrahim, vice-chairman and group CEO of Rawabi Holding, talks to The Energy Year about the company’s expansion and diversification strategy and the net-zero Forbes International Tower it is constructing in Egypt. Rawabi Holding is a conglomerate operating in different sectors including energy’s oilfield services and offshore services, contracting and industrial services and, most recently, real estate.

This article is featured in The Energy Year Saudi Arabia 2023

What are the latest updates on Rawabi’s expansion and diversification strategy?
The energy industry will remain very important to Saudi Arabia. Rawabi Holding’s strategy is to keep energy at its core while adding new lines of business and investing in different sectors so that we don’t depend too heavily on oil and gas.
We have three lines of business: energy, contracting and industrial services, and we are very involved in dredging activities. This aligns with Saudi Arabia’s economic diversification strategy.
Our strategy was designed when the company was restructured in 2000. Part of the strategy is to grow internationally, while always carrying the Saudi flag. If international companies can come to Saudi Arabia, then Saudi companies can compete in other countries too. We consider ourselves a global company. We have operations in Singapore, Indonesia and Canada.
Our new real estate arm, Magnom Properties, is building an innovative and environmentally responsive tower named the Forbes International Tower in the New Administrative Capital in Cairo, Egypt. This is the first commercial tower to carry the Forbes name.

Why is the Forbes International Tower called the net-zero tower?
In line with the Middle East Green Initiative sponsored by HRH the Crown Prince, we have made a commitment to long-term sustainability in the region, which is in alignment with Vision 2030’s sustainability programme and the Saudi Green Initiative. The Forbes International Tower will be the most sustainable tower in the world, built with environmentally friendly construction techniques. We are using innovative technologies in concrete and steel manufacturing and in their application as well. The building’s facade will be built with solar panels, so the tower will generate its own solar power. This concerted green approach will make the building net zero. Once we finish our evaluations, we will produce a sustainability report that will be announced during the UN Framework Convention on Climate Change (COP28) in November-December 2023.

Which markets are you targeting for sustainable real estate development?
Although the first project will be built in Cairo, our agreement with Forbes International covers Saudi Arabia, the UAE and the other Gulf countries. Keeping in mind the growth and rapid change in the Saudi market, we are already in talks with our partner to look for a location in Riyadh to build our tower. Saudi Arabia is at the top of our priorities.

What are Rawabi Holding’s initiatives in the hydrogen and recycling sectors?
Rawabi Integrated Gas is a manufacturer of industrial and speciality gases, refrigerants, ammonia and helium. It also represents manufacturers of high-tech welding solutions. In association with Honeywell and other players, we will soon inaugurate a new gas factory to produce medical gas, hydrogen and refrigerant gases, with in-house filling, blending and reclamation capabilities. As part of Saudi Arabia’s circular carbon economy framework, we will soon enter into an agreement with a European company that involves tyre recycling and power generation using special techniques to extract pyrum oil and produce textile fibres and carbon pallets.
In the marine sector, our responsible initiatives include offering SmartShip technologies and digitising our fleet, making conventional vessels hybrid, planting trees in the Tanajib area and converting food waste on our vessels into organic fertilisers.

Tell us about your priorities for the introduction of R&D capabilities in Saudi Arabia.
Rawabi Energy owns a 95% stake in United Safety, a Canadian company that performs risk management services and operates in 17 different countries. This gives us R&D capabilities in other countries that enable us to transfer knowledge to Saudi Arabia. We have also managed to establish our R&D centre in the kingdom through a co-operation between the two companies, and we send our Saudi engineers to be trained in Canada.
We have an investment committee designed to introduce new technologies and know-how into the kingdom. We have invested recently in a Houston-based company called Wildcat, and we are in the process of transferring their know-how and technologies to Saudi Arabia.

What are your priorities when entering into new partnerships?
We’re very selective when it comes to our partners. We seek out those who align with our vision and share our values, and our model has always been to create joint ventures where our partner agrees to localise and transfer know-how, while the decision-making remains with Rawabi Holding. These kinds of relationships only work if both partners proceed with extreme transparency. This has enabled us to become technology leaders in this market, and we have become the single supply source for some products in oilfield services and other segments.
It is essential when meeting new partners to properly introduce them to Saudi Arabia and its opportunities, as one of Rawabi Holding’s core mandates is to support the positive change and development in countries where we operate. We don’t partner with any company unless it can bring added value and new technologies to our group and to Saudi Arabia.

What is your strategy in terms of human resource development and training?
At Rawabi Holding, our slogan is “powered by people.” Apart from the competency-based training and development programmes offered to staff at different levels, we have developed an education sponsorship programme to support employees who wish to further their education. We pride ourselves on our strong internship programme, where the most qualified interns usually join our workplace post-graduation. From 2011, the company has offered training internships to a total of 558 trainees: 152 men and 406 women.
We also offer pre-employment training, which aims to qualify young Saudis for the labour market by helping them acquire and develop various skills and a strong work ethic, thus increasing their employment opportunities after graduation. The trainees are sponsored by Rawabi Holding in different vocational training institutes specialising in technical fields relevant to our lines of business. Upon graduating from the diploma programmes, their jobs await them in different sectors across the Group.
We have students enrolled in institutes such as the National Maritime Academy (NMA), the Saudi Arabian Drilling Academy (SADA) and the Leading National Academy (LNA), to name a few.
Furthermore, we established the Shadow Board of Directors (SBD), composed of a group of young employees who are willing to positively contribute to the decision-making process by way of offering recommendations and giving their creative input. The members are chosen based on an age ceiling of 40 years old. The current board, which is the programme’s third board of directors since 2012, consists of nine members, with a female chairperson and 55% female representation.
Developing national talents and Saudisation is very important to us, as the security of any business depends heavily on the local workforce. In Rawabi Vallianz Offshore Services, we have an 84% Saudisation rate.

What are Rawabi Holding’s future plans beyond 2023?
Renewable energies are at the top of our list. We are in discussions with different companies to create partnerships around renewables. In addition to hydrogen, we are assessing floating wind farms.
We have already converted our holding company from a limited liability company into a closed joint stock company. This is in preparation for moving on to become a publicly listed company or opening up to private investors. We are considering an initial public offering for some of our companies.

What are Rawabi Holding’s views on women’s inclusion and CSR?
Regarding women’s empowerment, 40% of our board members are women. Since the very early stages, we have incorporated corporate governance structures that later enabled us to align with Vision 2030. We have sustainability and CSR committees within the holding’s structure because these are among its pillars. Moreover, our first ESG report is being issued in 2023.

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