Interview with Lama Al Sulaiman, Jeddah Chamber of Commerce and Industry, Saudi Arabia

17 Jul Interview with Lama Al Sulaiman, Jeddah Chamber of Commerce and Industry, Saudi Arabia

The Jeddah Chamber of Commerce and Industry is recognised as one of the earliest established chambers in Saudi Arabia and a key driver of the Kingdom’s pro-business ecosystem and recent reforms. As a key member of one of Saudi’s most important agencies, could you briefly talk us through the Chamber’s major milestones and challenges of the last two years, and your outlook for 2023?

I have been actively involved in the chamber, serving as a board member twice. I was first elected to the board in 2005, and then re-elected in 2010. In 2014, I had the privilege of being appointed to the board by the ministry. However, my tenure at the chamber concluded in 2019. Meanwhile, I am also a part of the Abdulaziz Al Suleiman group, a family holding business that operates in various sectors. Primarily functioning as an investment company, we also have a trading company called Rolaco, which was established in 1968. Today, Rolaco primarily focuses on building materials, electrical equipment, electromechanical products, and hospitality services. In 2017, I was appointed to the entertainment authority, which was in its early stages. During my term, we worked on changing mindsets and introducing new regulations in the entertainment sector. However, I decided not to renew my term when it ended. Recently, there have been some changes in the chamber’s leadership. Mohammad Nabi was appointed as the Secretary General just two weeks ago. Notably, two women, including Lulua Beker, now hold positions in the chamber. I have a personal acquaintance with Lulua Beker. Currently, I serve on the boards of Al Khabeer Capital, the kingdom holding, and our family’s holding business.

What are some of the key projects underway, and the main priorities you’ll be focusing on in the medium term?

Over the past three years, the global economy has faced multiple economic crises and challenges, from the pandemic impacts to skyrocketing inflation and the war in Ukraine. Considering JCCI has been working to strengthen and promote a favourable business environment in Saudi Arabia for more than 75 years,

What have been the main drivers for not only stability in the Kingdom but incredible growth despite external market conditions?

Our business is experiencing growth in Saudi Arabia where opportunities are available. Despite the absence of austerity measures, as businesspeople, we continue to witness ongoing projects. The government is actively investing in infrastructure development and the construction of numerous cities in the country. As part of the private sector, we view these initiatives as favourable opportunities. We strategically position ourselves in areas where our services are in demand and where we can make sales. Fortunately, this trend of opportunities has been consistently present in Saudi Arabia.

What is the Chamber’s message to investors about finding in Saudi Arabia a safe investment destination amid the global challenges?

My family business has experienced significant growth through the establishment of joint ventures. We have been engaged in successful joint ventures since the 1970s, even during the time when Saudi Arabia was a closed country. Some of our partners have been with us for an impressive span of 50 years, while others collaborated with us for shorter durations before moving on. We understand that businesses from outside Saudi Arabia may be eager to explore the opportunities available in the country. However, we acknowledge that there can be hesitations due to the ambiguity and mixed information circulating about the market. Positive articles highlight the potential, but rumours often create confusion and fear, making it difficult for some to take the leap and enter the Saudi market. In our experience, joint ventures have proven to be the most effective approach, particularly for those who may feel hesitant or uncertain. By forming a joint venture, a partnership is established, and all aspects are documented in a clear agreement. This includes details about exit strategies, providing both parties with reassurance and clarity about potential outcomes in various scenarios. Building a partnership with a well-defined exit strategy provides a level of comfort, ensuring that both parties understand the course of action in any circumstance. Once these foundational steps are in place, the business can commence, and both partners can move forward confidently.

After passing its Private Sector Participation Law, Saudi Arabia saw more than 2 million nationals entering the private sector in 2022, a 10% growth in SMEs, and the privatisation of 30 projects during the past five years. In the wake of these developments, which sectors in Saudi Arabia have experienced the most growth in line with diversification?

We have observed remarkable growth in the service sector, particularly in the areas of travel, adventure, and tourism. Despite starting from a point of zero tourism, the speed at which these industries have expanded is truly astounding. Although the overall numbers may not yet match those of neighbouring countries, the rate of growth is impressive. In Saudi Arabia, anything that caters to the creative and innovative interests of young people tends to thrive. This includes applications and services provided through technology, which attract a significant number of youths. Our unique demographic composition, with a large population of young individuals, sets us apart from many countries in the region. In this aspect, we can be compared to some Asian countries that also have a substantial youth population. Many countries around us face the challenge of an aging population and a shortage of younger individuals, which hampers their competitiveness. However, in Saudi Arabia, we have a distinct advantage due to the willingness of decision-makers and the private sector, particularly SMEs, to take risks. Our society fosters a culture of risk-taking and is less conservative, creating an environment conducive to innovation and growth.
 

You have an extraordinary record of pioneering achievements in some of the most esteemed positions available to women in Saudi Arabia. Notably, you were the first woman to be elected to the board of the Chamber of Commerce in 2005 and the first woman to hold the position of deputy chairwoman of the Jeddah Chamber of Commerce and Industry. How has your journey as a pioneering woman impacted the role of businesswomen in Saudi Arabia? In line with Vision 2030’s efforts to promote women in the workplace, what is your message to young Saudi women about pursuing careers in business?

I met incredible women from the older generation who were pioneers in entering various sectors for the first time. It is fascinating to observe that their stories, challenges, and impact are remarkably similar. The presence of these trailblazers has been crucial in inspiring others to step forward, feel comfortable, and build their own paths. During that era, there were numerous women in Saudi Arabia who ventured into uncharted territories. Although their stories may not have been widely known, their impact was profound. Consider the first women who entered the banking industry or became university professors. Their journeys must be filled with remarkable experiences. Similarly, the first women doctors, professionals in finance, health, and education have their own inspiring tales to tell. In my case, my focus was on advocating for women’s presence on boards and participating in elections. It was indeed a challenging journey, but a fulfilling one. Looking back, it is astonishing to witness the progress. Today, young women are entering the workforce without realizing that just a few years ago, such opportunities were not available. What was once prohibited, like my daughter driving a car, now feels completely normal. The transformation we have witnessed in Saudi Arabia reflects the gradual acceptance and integration of women into various aspects of society. The presence of those who broke barriers and initiated change has paved the way for the current generation and future ones to thrive. Their courage and determination have reshaped norms, allowing women to pursue their dreams and contribute meaningfully to the progress of our country.

What are some of the interesting projects you are active in to promote inclusivity in the workplace?

Today, I am pleased to say that there are no longer any policies restricting women from pursuing specific endeavours. On paper, women are free to choose their desired paths. Gone are the days when there were regulations specifically addressing women’s roles in the workforce. This change is crucial and signifies progress. In major cities, tremendous opportunities have emerged for women. However, venturing outside these urban centres can still pose challenges. It is not due to legal restrictions, but rather because some women may fear the unfamiliar. It is essential for women to actively seek out these opportunities and be willing to explore new horizons. Take, for instance, AlUla city. It used to be a more conservative environment. Many job opportunities have been created there, particularly in the tourism sector, which is highly valued by the local community. In the past, young people would leave the city after completing their education, searching for employment elsewhere. Unfortunately, many did not return. However, today we are witnessing a reversal. The younger generation is returning to AlUla, seeking employment and contributing to its growth. This is the path we must continue on creating opportunities and fostering an environment where women are empowered to pursue their aspirations. By providing access to diverse job prospects and encouraging women to seize them, we can ensure a more inclusive and prosperous society.

With our readership constituting global investors, executives, and businesspeople perhaps looking for new opportunities – what are your final thoughts and message to the readers of Newsweek Magazine about doing business in Saudi Arabia?

Saudi Arabia presents significant opportunities on a global scale, although media portrayal may have distorted its image. However, people can conduct their own research and form their own perceptions about the country. What concerns us more is the pressure exerted by certain governments on companies looking to invest in Saudi Arabia. These companies face scrutiny from the media, but little effort is made to improve these relations. I believe that everything happens for a reason. If we encounter negativity or backlash from a certain group of individuals, we understand that it does not represent the entire world’s opinion. Negative feedback from a thousand people does not define the global perspective. Unfortunately, these negative voices often hold more weight and influence than the rest of the world combined. It is our responsibility as Saudi Arabia to actively work on improving our image globally, despite the significant progress we have already made.

We strive to showcase Saudi Arabia as a country deserving of foreign investments. If individuals genuinely seek to make an impact and thrive economically, Saudi Arabia offers an ideal environment. We believe that Saudi Arabia’s potential should not be underestimated. We are dedicated to fostering an open and welcoming atmosphere for investors. Our vision extends beyond our borders, and we aspire to contribute to global prosperity. Saudi Arabia is the destination where those with ambitions can realize their goals and make a meaningful difference in the world.