Sheikh Abdulaziz bin Ahmed Al Hosni, Vice Chairman and President, Qurum Business Group tells Mayank Singh the reasons why the group is poised for its next big leap.
Can you give us a brief background of Qurum Business Group (QBG)?
Our family has been in business since 1970s in various types of industries. Once I returned to Oman after completing my studies at the University of California in the United States, I managed Kalhat Services & Trading for almost five years and then co-founded the National Securities Company, a listed entity. In 2003, the family sold its shares in Kalhat and bought a company in the United Arab Emirates (UAE), which was in the facilities management business. So in actuality, QBG has been around since the 1990s but it was primarily our property and assets business. In 2006, we as a family decided to consolidate our businesses under QBG as a mother company. Today, we are a diverse services group that employs more than 4,000 professionals with operations spanning the Middle East, Europe and the Indian sub-continent. Our portfolio now includes construction, facilities management, engineering and marine services, IT, landscaping and financial services.
In UAE we converted our company into a facilities management unit and it has grown into a large firm. With a facilities management company in Oman together with our operations in UAE, we are able to bring greater value to housekeeping companies, waste management companies, security companies, MEP companies etc. On the other hand, QBG Services and Engineering has managed to bring international expertise that was non-existent in the Sultanate and execute projects both for the government and the private sector. Our strategy centres on investing in the future of Oman by providing capital, expertise and the infrastructure necessary for national projects and developments while creating employment and career opportunities for talented Omanis. With each investment, we look at ways to give back to the community.
How was the performance of QBG in financial year 2013?
The market was in consolidation mode and trying to come out of the problems faced as a result of the economic turndown a few years ago. I think it was a bottleneck year with 2013 representing the tip of the bottle, with Oman’s economy poised to break out. For us, it was a great time to grow as others are still consolidating and cutting costs. It was an opportunity to reorganise the house from inside. Overall, we achieved this through our present modus operandi that adopts a streamlined approach to create synergies between all companies under the Group’s umbrella.
You mentioned about restructuring the business and putting your house in order. What went into the process and how different is the group after the changes?
We have restructured and reorganised the business. QBG has incorporated some of the best international practices available, and we have learnt from our previous experience and the market dynamics as a whole. I am proud to say that the new structure implemented by QBG, undoubtedly, will soon be followed by major business houses in Oman and in the region. Although we used the services of a seasoned consultant, most of the restructuring was done by us on our own.
Now that there is a new brand and management in place, what do you expect in 2014?
We are poised to outgrow the market as we are continuously upgrading our structure, style and the way we do business in general. To achieve your goals and objectives, you need to come up with a game changer, something that is new to the market. We spend much more on devising our products and services compared to our competitors as we firmly believe that we should come up with varied and better offerings to achieve our objectives. The market demands are changing rapidly and we not only have to meet expectations but surpass them.
QBG is looking at various projects in 2014. In Oman, we are focusing on construction and facilities management in particular. However, our focus is on across the board growth in our existing businesses, and we are investing for that purpose.
QBG has businesses in the region beyond Oman. How has your experience been in these markets and what are your future plans?
Ours is an international company with roots in Oman. We have operations in UAE, where our facilities management company called QBG Facilities Management is based and which employs more than 3,000 people. For the UAE market, we have plans to expand into other businesses such as hospitality.
In Saudi Arabia, we are joint venture (JV) partners in Aloula Geojit Capital, an investment bank that manages various funds and investment portfolios. In India, we have just started a representative office and are investing in the market through this office. QBG has plans to outsource some of its services to India and the representative office is the first step in our expansion into the Indian sub-continent market. In Germany, we have partnered with a fund management company called Connexum which manages investments in real estate, healthcare and renewable energy projects.
We see a lot of potential in the facilities management business as it makes upto five per cent of the GDP of any country. Moreover, this sector has grown by 20 per cent over the past three years globally and in the Gulf the rate of growth is in excess of that figure. We also feel that we have a good business model that can be replicated in other markets and we have won multiple awards for our facilities management business. We have chalked out plans to expand this business and by the first quarter of 2014, we will be opening up a facilities management business in Doha. We are planning to further expand into one or two markets in the region every year and then to go into Asia. Some of the targeted Asian markets are India and the Far East.
The government has identified the creation of jobs for Omanis as a priority area. How is QBG contributing in promoting Omanisation?
Omanis are the future of Oman. Young Omanis are developing themselves into experts of the future and some of them are already experts due to their previous experience. We have a number of Omanis in our senior management ranks and we are proud to have some of the brightest Omanis working for us, including technical areas. We have a large demand for Omanis within our group especially in the mid and top management levels and we depend on Omanis for our future growth. At the same time, we should not ignore the vast expertise that we gain from abroad as it offers significant benefits and a different perspective.
Is QBG involved with Corporate Social Responsibility initiatives? If yes, please give details.
CSR to many has become a marketing tool but this is not the case for QBG. We strongly believe in sustainable programmes that bring long-term returns to the communities where we operate and this will continue to be a big focus area for us. We are placing great emphasis on education as a foundation for a promising future and have offered a number of higher education sponsorships programmes. We also support a number of charitable organisations in Oman and extend a helping hand to those in need in countries like India, Philippines and Palestine.
You have been managing the business from the second generation. In what ways have you helped to grow the business?
The majority of the businesses in the group have grown from the time I joined the company. I have been involved with the business since the mid 1990s and have managed to restructure our operations and assemble a professional team which has made the group what it is today and who can lead the group into the future. Our new way of operating increases the potential for local, regional and international growth in new and existing markets and allows the group to move forward by taking a pivotal role in the Sultanate’s ongoing evolution.