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Although launching an IPO is an attractive option for Jeddah-based Alsulaiman Group, there are no immediate plans for the family business to do so, according to CEO Saud Alsulaiman.
Alsulaiman noted that the size and influence of the Saudi Arabian stock exchange Tadawul, which reached a value of $3 trillion in 2023, meant that it is “a good option worth considering” for any family business that looks to build sustainability.
Speaking to Zawya at The Retail Summit (TRS) this week, Alsulaiman said the company operated in four sectors – retail, logistics, technology and real estate – which he described as “an ecosystem of businesses that synergise very well together”.
“Logistics enables retail; technology enables both our retail and technology businesses; real estate enables the growth of our physical retail business,” he said.
The company currently operates IKEA stores in Saudi Arabia and Bahrain as well as Circle K convenience stores in the kingdom and in the UAE, with plans to increase the number of stores over the next five years.
Also part of the group is Flow Progressive Logistics, which offers end-to-end, freight forwarding and customs clearance in Saudi Arabia and across the GCC, as well as cross border services between the GCC and the Middle East.
“Right now there is a huge opportunity in the two main markets in Saudi and the UAE. We are trying as much as possible to capture market share in these two countries,” he said.
Once the company is ready, it will expand into other Middle Eastern countries, he added.
Real estate
Alsulaiman launched a real estate fund to develop five major projects in Riyadh and other areas of the country, which are mostly mixed-use and include malls, entertainment and residential properties.
The development of the tourism industry in the kingdom under Vision 2030, which requires the building of hundreds of thousands of new hotel rooms, also presents an opportunity, Alsulaiman added.
Artificial intelligence (AI) is a focus for the company this year as well: it is working with a Silicon Valley–based company to enter the commercial real-estate furnishings market, where the technology can be used to execute projects 50% quicker and 30% more cost effectively than businesses in the same sector.
“We are partnering with them to enter into the UAE and Saudi markets. You are going to hear an announcement about this partnership,” he said.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
