Executive Profile: Fakher Al Shawaf develops one of the largest contractors in Saudi Arabia

Mr. Fakher Al Shawaf, was born in 1967, the son of Dr. Abdul Moaen Al Shawaf, an eminent Saudi businessman and founder of what would become Al Bawani Company Limited. Mr. Fakher Al Shawaf joined the company in the 1999 and was appointed Executive General Manager in 2002.

Fakher Al Shawaf chose not to leave the Kingdom to study abroad, preferring to remain in the Kingdom and study the civil engineering course at King Saud University. Graduating in civil engineering, he also serves as president of F. Shawaf Engineering & Consultancy Office and is a member of Saudi Engineering Institute.

Fakher Al Shawaf worked on projects in Riyadh during his degree course, gaining valuable practical engineering and commercial experience which complemented his academic studies. When he joined his father in business the firm was taking on small projects as a main contractor and working on larger schemes as a sub-contractor. In the 1980s and 1990s Al Bawani Co Ltd specialized in airfields, after which the firm diversified into the medical & security sectors. The company went on to deliver a wide range of outstanding projects for the Saudi Ministry of Interior and Saudi Ministry of Health.

The company’s philosophy centers on the belief that maintaining a diverse portfolio and a willingness to attempt new things while applying the principles of safety and quality leads to sustainable success.

Fakher Al Shawaf is responsible for the day-to-day running of a company with more than 35 years’ experience and which is seen as one of the pioneering contracting companies in the Kingdom. 

Under his management Al-Bawani are currently bidding for in excess of $20 bn of new projects. Of these, Faker Al Shawaf confidently expects to secure at least $5bn in confirmed commissions. The organization prides itself in being one of the few that can deliver technologically demanding projects.

Al-Bawani has carried out the construction of King Saud University’s intensive care department – the largest intensive care centre in Saudi;  the $900m King Faisal Specialist Hospital, a project which is unique in KSA and the wider GCC region; they have also worked on projects for the Saudi Arabia National Guard.

Al-Bawani has also excelled in designing and executing a large number of construction & infrastructure projects throughout the KSA by managing the operation and maintenance works of these projects through providing competent and innovative services with an unparalleled capacity in execution.  

Recently, a joint venture between Al-Bawani and Italian firm Salini Impregilo was awarded the $2.75bn contract for the construction of two medical cities for the Saudi Ministry of health, namely: Prince Mohammed bin Abdel Aziz medical city – that accommodates 1000 medical beds – and King Faisal medical city in Abha which houses 1350 extra beds.

At present Al-Bawani is also currently working on the execution of various towers for the Public Pension Agency as well as being selected as part of the contractors’ team to build and renew schools worth $10.7bn for the benefit of Tatweer Building Company.

Fakher Al Shawaf awards much of his success to sound advice he received from his father. “When I started in the business my father gave me one piece of advice – pay people right, pay them on time. Everybody will respect you. Once your policies, contractual methods and matrices of responsibility are very clear, everything else can go smoothly.” 

Al Bawani has been able to secure some of the lowest prices in the market due to the transparent way in which they run their business.

Al Bawani has been able to secure some of the lowest prices in the market due to the transparent way in which they run their business.

“Deal with your clients, banks, manufacturers and subcontractors fairly and you will be successful,” is the professional approach adopted by Fakher Al Shawaf in his business dealings.

“We have 10 joint ventures, including those with some internationally-renowned companies like Aegis and Vinci UK, and there are no problems.” he added.

This business philosophy may sound simple, but it has won Al Bawani many friends in the contracting business, whether they are their clients, joint venture partners or their bankers. This equitable strategy and Al Bawani’s good reputation has helped to support them in the current economic situation.

This brings benefits on the revenue side. At the end of last year, the company’s order book was worth in the region of $2 billion, with the potential to reach $4 billion, a figure that grew substantially last year.

This brings benefits on the revenue side. At the end of last year, the company’s order book was worth in the region of $2 billion, with the potential to reach $4 billion, a figure that grew substantially last year.

“We are looking at housing and commercial projects to diversify our core businesses” says Fakher al Shawaf. “We think the company is well-sized now. We are sustainable, but in future we may do an IPO. Our profits and reserves are good, and we are well rated.”

For now however Al-Bawani remains very much a family business. Fakher’s brother Nasser runs the London arm of the business, providing the company with a high-degree of flexibility and fast decision-making and extending the company’s base well into the international arena.

Al Bawani Co Ltd has weathered the recent storms in the Saudi economy through persistence, careful pricing and tireless tendering to win new projects. It is a survivor in the KSA construction market and is now even more professional, lean and focused. The firm is poised to benefit from ongoing and expected future investment in the petrochemical, financial, communications, services, retail and commercial sectors. Higher management is alert and flexible to the needs of Saudi Arabia and will satisfy them. 

Al Bawani has been involved in writing several chapters of the kingdom’s spectacular growth story. Under Fakher al Shawaf’s guidance it seems likely it will be involved in writing several more.