Discussing Real Estate Development and Construction in Saudi Arabia with Mohammed Al Mymuni of Tamear

Interview with Mohammed Al Mymuni, CEO of Tamear

What is your assessment of the real estate sector now and how has Vision 2030 impacted what you are doing in the sector?

Regarding the real estate development and construction sector in Saudi Arabia, over the past five or six years, there was a drop in the sector for various reasons. One of the major things was COVID-19. Now, the market is starting to grow and starting to recover since about one year ago. The sector is huge. The Saudi sector is the largest sector in the Middle East. The Saudi Vision 2030 is the motivation for this sector to grow in more accelerated rates in the coming years.

Have you seen new legislation or goals or things that the government is pushing for? Is there something that you have been doing differently since the Vision 2030 began introducing plans for advancement and development?

The Saudi Vision 2030 has a lot of programs. One of the major programs in the Vision 2030 is the housing program. This program is huge and the country will spend billions on it. We have many mega projects where PIF (Public Investment Fund) is the generator. We have NEOM, the Qiddiya Project, the Red Sea Project, the Amaala Project. Tamear is one of the sub subsidiaries of the PIF. The Saudi Vision 2030 is the motivation for this development and it will play a big role in changing a lot of legislation and a lot of regulations, which will make life in this sector easier than before.

How did Tamear come about to be the dedicated construction arm of Al Akaria?

Tamear is a class A contractor in Saudi Arabia, which is the top class in the Saudi construction market. We have all the access for mega projects and other governmental projects around the Kingdom.

Al Akaria, our parent company, initiated a lot of companies as subsidiaries to be their arm in those sectors. For example, Tamear is the arm for construction. They have another company for infrastructure and another company established in facility management. They have a lot of subsidiaries to serve them in a specific area of business. In 2016, they made a partnership with a Turkish company who would share 60% to Al Akaria and 40% to the Turkish side. By the end of 2020, Al Akaria took over the company and now we are 100% owned by Al Akaria. Al Akaria is a listed company. It is the first real estate company in the region, not only in Saudi Arabia, with more than 46 years. The majority of the ownership, around 65%, is by the PIF. The rest is for the public because it is a listed company. We are focusing on construction for Al Akaria and for others. Since 2016, we have built most of the Al Akaria projects. We can call it an income generator for Al Akaria. We are not just depending on Al Akaria projects but also, we are working beyond Al Akaria projects. Now, we are restructuring the company. We have a new strategy, we have a new business area, we have to focus on some of our strengths in some businesses, and we are looking for and working with our new alliances and new partners in the sector. Since I took over as CEO of Tamear in January 2021, we have been working with my team to put Tamear in a good position in the Saudi construction market.

What are your competitive advantages? What makes you different and makes you stand out from all of these other players in the sector and in the market?

We have a very good reputation in the market. We do our projects with quality and we control our time and schedule for our customers. This is one of the unique values which we stick with in Tamear which gives us that advantage in the market. The market is very competitive. There are a lot of players in the market. We are powerful. We try to find our place in this market. We have to put our foot in this market in a very good position over the next coming years. Tamear has a lot of values such as time, quality, and teamwork which makes our customer’s life easier. Of course, we have good support from our mother company and the PIF. We have good access for those mega projects around us and we are participating in all of those mega projects. We are qualified in all the mega projects and we are working with them every day to be sure we are their best choice for construction.

What are some of your current and future projects?

Tamear started a project called Al Dahiah of around 560 villas north of Riyadh with Al Akaria with a contract valued at more than half a billion Saudi Riyals. We closed this project on time with very good quality. This gives a very good reputation for Tamear in the market. Many developers visiting this project call us and they are eager to work with us because they saw our quality and our professionalism during the construction of that project. Also, we have completed many projects for Al Akaria. Al Akaria project is a closed compound, also in the north of Riyadh. This has already been completed for two years and it is a very prestigious compound owned by Al Akaria. We finished that project with good quality and on time. We have a lot of projects with Al Akaria such as the renovation for Gate 9. We did it in a very short time. Within five months, we completed this project which consists of around 124 apartments with the landscape, with the community center, with all this in a closed compound in Al Olaya which is the business hub and heart of Riyadh. Also, we have a lot of projects with Al Akaria in renovation for their assets and villas in the diplomatic quarter which is a very restricted area. We achieve good progress for those projects and most of them we have closed and completed. We have another project in Medina Munawwara which is a housing project that is now completed. Now, we are working on a project with the National Housing Company. It consists of 1,000 villas in Riyadh. We are in negotiations with them to take another 2,000 villas in Riyadh and Jeddah. These coming projects will put Tamear in a good position as a major player in the construction sector in Saudi Arabia. Moreover, we are working with the mega projects belonging to the PIF and we are shortlisted with most of them. We are now studying and analyzing and we will submit our bids very soon. The sector is starting to boom again so we will take this advantage and we will work together with our partners in the sector.

Are you looking for investors or technological partners?

The construction market now should not be following the traditional ways like before. We have to take into consideration that fast moving technology which is used in construction. For example, we are using construction technology for concrete work. We have tried to adopt a lot of technology in construction. Of course, we are open for any kind of partnership or any kind of investment to work with us in our projects and to satisfy our clients. Tamear is a class A contractor in Saudi Arabia, which is the top class in the Saudi construction market. We have all the access for mega projects and other governmental projects around the Kingdom. We are open for any kind of partnership or anyone that can align with us on these projects.

What is one of the success stories that you are most proud of?

One thing which we are most proud of here in Tamear is our team. My team is very good in learning, in adopting new ideas, new technology and new methods of work. This is what gives Tamear good assets through its people. Of course, we have a lot of success stories and many projects that have closed well. Our clients are very happy and that is definitely a success story. But for me, the main thing is my team. My team is very inspired and dedicated and is working under pressure to satisfy our customers.

What is your three to five year vision for Tamear?

Now, we are working on our new strategy, Tamear Strategy 2025. We are in the final touches for that strategy. I hope we can announce this Tamear renewal strategy next December. We hope in the coming three years to be in the top 10 of construction companies in Saudi Arabia. We hope to be a listed company by the end of 2025 in the Saudi market. There are lot of goals and hopes and we are working on in our strategy to achieve this.

What is your inspiration? What drives you to do what you do?

A very famous inspiration leads our whole life in Prince Mohammed bin Salman Al Saud. He is our leader and he inspired us greatly when he said, for the great Saudi people, the sky is the limit. I am one of these people. So, our sky is our limit. With this support from our leadership, we can achieve all our goals. Everything is available from the technology to the people to resources. We can do it. We can achieve our goals based on these available resources.

For more information, please visit: www.saudiconstruction.com.

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