Tejari to launch operations in the Kingdom of Saudi Arabia

The move into the region's largest market signals the e-procurement service provider's confidence in the growing acceptance of online business in the region.

Tejari's entry into Saudi Arabia is being carried out in partnership with the Al-Ghabban Group, a leading group of companies specializing in construction and property management, with operations in Kuwait, Iraq, the Kingdom of Saudi Arabia, Bahrain, Djibouti, and Qatar. Tejari Saudi Arabia is the third project on which Tejari and the Al-Ghabban Group are collaborating -- the two organizations announced their franchise agreement for Tejari Iraq in November 2003 and Tejari Kuwait in January 2004.

"Tejari now has reached the operational maturity and critical mass of trading partners necessary to enter the Saudi Arabian market, the largest in the Middle East for e-business and e-government services, as well as related Internet hardware and software. Experts estimate that at present, more than $6 billion is being invested in communications infrastructure in the Kingdom," said HE Sultan Bin Sulayem, Executive Chairman, Dubai Ports, Customs, and Free Zone Authority, and Chairman of Tejari.

"The Saudi government has already undertaken significant steps to incorporate e-government into its services. It is now Tejari's job to communicate effectively to both the public and private sectors in the Kingdom the numerous advantages of e-procurement, including the reduction in paper-based tasks, faster time to market, enhanced customer awareness, and increased profitability," added Bin Sulayem.

Prior to finalizing their franchise agreement, Tejari and the Al-Ghabban Group conducted intensive feasibility studies on the potential for online procurement in the Saudi market.

"Middle East businesses are proving increasingly receptive to the online procurement model and Tejari itself - especially once they take into consideration the cost-savings and improved efficiency that this business process delivers. As we have seen recently in Kuwait and Iraq, the combination of Tejari's e-procurement model and the expertise and experience of the Ghabban Group is set to significantly change the way that Saudi Arabia's business community buys its goods and services," said Mohammad Al-Ghabban, Chairman of the Ghabban Group.

"The IT-enabled business revolution currently sweeping the Middle East is nowhere more evident than in Saudi Arabia, where ambitious plans from both the government and private sectors are creating more demand for successful, regionally-based online initiatives such as Tejari. The right infrastructure for e-governance exists in the Kingdom, and it is incumbent on Tejari to capitalize on this effort and work towards encouraging wider use of e-services," added Al-Ghabban.

Officials from Tejari and the Al-Ghabban group have estimated that the industry sectors in Saudi Arabia most likely to adopt the online procurement model are construction, banking, government, and technology.

Commenting on Tejari's entry into the Saudi market, Sheikha Lubna Al Qasimi, Chief Executive Officer (CEO) of Tejari added, "Tejari has been at the forefront of e-business and online procurement in the region for the past four years and entering Saudi Arabia has been among our top priorities. Our objectives in the Kingdom will focus on delivering more key information and trading opportunities for local businesses while creating new services and areas of market reach to serve their interests."

"Our job is to educate the regional business community and taking part in an exhibition such as GITEX, where we can interact with delegations of decision-makers from some of Saudi Arabia's most prominent enterprises, is an ideal time to launch Tejari's entry into the Kingdom," concluded Sheikha Lubna.

Tejari's Regional Expansion Accelerates
"Tejari and our franchise partners are connecting the region in a way which has never been seen before," said Neil Le Quesne, Director of International Business, Tejari. "The entire region has entered a new era of openness and competitiveness - Tejari provides the tools required to operate in this connected regional environment."

"Tejari's regional expansion program is continuing to accelerate," said Mr Le Quesne. "In parallel to working towards the completion of our Middle Eastern rollout, we are increasingly turning our attention to Africa and the Subcontinent - we expect to make announcements on these developments soon."

GITEX attendees can visit Tejari at stand C6-1 in Hall 6.