Annual CEO Letter 2024

Jan 17, 2024

Welcome to 2024!

I would like to extend my warmest wishes for a safe, healthy, and prosperous year ahead. I feel honored and truly blessed to be leading an awesome team of passionate professionals dedicated to delivering on our purpose: to contribute proactively to Saudi Arabia’s comprehensive sustainable development to achieve the Country’s objectives. Moreover, I am extremely proud of how we overcame many tough challenges last year, and how many of us managed to adjust and adapt to change, focusing always on creating value and becoming better. Together, we continued to build upon our legacy providing the highest quality products and services with pride and integrity while positively impacting our people, and the Kingdom’s economy and society. As a result of all our efforts, we are known for being a reliable and responsible investor.

In this annual letter I will focus on the future starting with my vision to build a balanced portfolio of diversified businesses in a responsible manner, creating sustainable value for all our stakeholders. Furthermore, I’d like to share my insights about the Saudi economy, their implications for our strategy and my expectations of you going forward. I’ll start with some of the key insights informing my strategic direction for our Group:

1. The current capital investment boom in Energy, Infrastructure and Logistics, and Real Estate sectors is tremendous, and we must do our best to make the most out of it but, it will slow down at some point in the future.
2. When the capital expenditure slows down, the operating expenditures will increase sharply and will be long-lasting into the future.
3. Vision 2030 is creating many opportunities in exciting new sectors such as Tourism, Sports, Mining, and Alternative Energy.
4. Competition will increase as the economy matures and the Country opens-up even further to global investors.

I feel extremely privileged and proud that our companies are serving our Country’s base Energy industry as well as most of the magnificent Giga and Mega projects underway in Saudi Arabia today. It’s a huge responsibility with great significance for the future of our ambitious nation. However, I believe we must invest more heavily in building our portfolio of services to be ready for the future requirements of our growing economy. Overall, though, we must be diligent in driving forward with meticulous strategic planning, operating model optimization, leadership capacity building and digitalization across our portfolio of companies to achieve the scale and balance we need for the future. Equally, we must invest in innovation and marketing to help us create long lasting value.

As a result, my priorities for this year are as follow:

• Build the foundations to achieve long term operational excellence –
  • Launch dedicated sub-committees to the Excom of each subsidiary to work with the MDs and their teams to drive detailed strategy reviews and operating model optimization to increase reliability and dependability.
  • Expand the Hemmah Group-wide talent development program to help you enhance your skills and capabilities.
  • Drive our digitization plans aggressively.
• Deliver profitable growth –
  • My team and I have worked with the Excoms of each subsidiary to review the annual operating plans for each subsidiary, in detail, and ensured that all the necessary funding and required tools are in place to achieve the innovations and profitable growth we expect.
  • Of course, the major focus for the year ahead is on improving CASH planning and management. We need more focus on credit control and collections to sustain our growth!
• Embed sustainable practices –
  • I will be working with my team under the direction of the newly formed Sustainability Committee of the Board of Alturki Holding to embed the required practices across the Group over time in a more focused manner in order to make credible impactful progress.
• Build strong brands –
  • My team and I are working closely with the MDs to develop marketing and communication plans and allocating the required resources to build strong brands for the long term.

Finally, I expect from you to harness our PERFORM culture mindset together and run forward with the following behaviors I have named the “Alturki Way”:

• Consistently Entrepreneurial – always searching for new solutions to problems!
• Fiercely Reliable – say what we do and do what we say!
• Relentlessly Digital – striving to remain relevant in a fast-moving competitive world!
• Consciously Sustainable – working to achieve the triple bottom line producing profit, while positively impacting our people and our planet.
• Proudly Saudi – continuing to play a leading role in the sustainable development of our nation and its people!

To conclude, I’d like to offer my deepest gratitude to you for all your hard work and impact in 2023. I believe the year ahead holds great potential for our Group as we leverage the exceptional capital expenditure programs across the Kingdom while investing responsibly to build our capabilities for long term sustainable success in services as well. Together, we must PERFORM to create value every day, and ensure that we do better than the year before through our Alturki Way. I wish you and your loved ones a safe, healthy, and prosperous year ahead filled with remarkable achievements for our teams and growth opportunities for you.