Corporate Services

Aligning domestic and international expectations for a seamless expansion into the GCC.

CN Tower in Toronto Canada

Now more than ever, the international business community is looking to the Middle East for new opportunities for investments.

Robust economic growth has created fertile ground for new investments.  Increased purchasing power, population growth from outside the region and shifts in consumer behaviour represent several economic factors positively influencing the region’s growth.

As we watch the GCC expansion take place, we also participate.  Our consultancy provides evidence-based business advisory programs to assist stakeholders and executives with strategy development while preserving corporate DNA and philosophy.

Business Blueprints

Being good stewards of our clients’ brands is an important way in which we help them integrate into the GCC.  Corporate philosophy, shareholder vision, brand equity, mission and values are all important parts of a company’s DNA.  By keeping in tact a brand’s identity, we help corporations stay true to their business blueprint while adhering to cultural dynamics in the region.

By positioning for success now, we can yield great outcomes in the future.  With a global network of business leaders who share our vision of preserving corporate DNA, we help some of the world’s most prominent industry leaders align business interests to create long term and lucrative relationships.

DNA strand
board members clapping

Over the years, our experience has led us to identify a multitude of opportunities for our clients to successfully launch business ventures in the GCC.  Whether we are incubating new business ideas, creating concepts, forming strategic alliances or operating business models within the GCC, our consultancy provides a blueprint for clients looking to the GCC for expansion.

In addition to our advisory services, Savana Trading & Consultancy Co. also serves as a liaison, helping to identify and form new business partnerships.

  • Joint Ventures
  • Strategic Alliances
  • Equity Partnership
  • Foreign Investor
    • Saudi Arabian General Investment Authority (SAGIA)
  • Master Franchise Agreements
  • Master Development Agreements
  • Sub Franchise Agreements
  • Distribution Agreements
  • Manufacturing Agreements
  • Service Level Agreements

Retail

The retail sector in the GCC is expected to grow at a 7.3% CAGR and reach US$ 284.5 billion by 2018, according to a 2015 report by Alpen Capital (3), with Saudi Arabia holding the largest share (46.4%) of the region’s total sales.

According to a study by Aljazira Capital (1), this growth is due to a major shift in the market structure involving the conglomerations of family owned businesses with international corporations that are better equipped to handle the demands of a growing youth population. Demand for the latest technologies and state-of-the-art retail facilities has led to the construction of large shopping malls and retail venues.  In addition, some countries in the GCC still lack a proportionally relevant amount of retail space per capita, suggesting plenty of room for growth in this area.

Food & Beverage

The Food & Beverage and Health & Nutrition industries are expected to grow at a 3.5% CAGR through 2019 and forecasted to reach 51.9 million metric tonnes (MT) according to a 2015 study by Alpen Capital (2).

Factors affecting this growth include an increasing level of affluence in the general population and increased consumer awareness of nutritional health in areas of organics, protein supplements and international foods.  In addition, more tourism and growing populations of expatriates living in the region has led to an increased demand for westernized cuisine and expanded options in health and nutrition.  Finally, because food production in the Middle East region is restricted due to its arid climate, the GCC market is heavily reliant on imports to meet these demands.

Construction

Driven by increased demand in Fashion & Retail, Food & Beverage, Health & Nutrition and Tourism, the Construction industry in the GCC continues to expand.  Tourism is a major driving factor as surges in this industry has brought with it more demand for international goods and services.  With this expansion comes higher budget allocations, allowing for new construction projects and more development.

An increased demand for new housing due to advances in regulatory framework for real estate in Saudi Arabia furthers the demand for new construction.  As populations continue to rise and GCC nations win bids on mega events, more construction will further increase need for expanded services in related industries such as retail, food and beverage and health and nutrition.

What is the GCC?

The Gulf Cooperation Council (GCC) is a political and economic alliance of six Middle Eastern countries including Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman. The GCC was established in Riyadh, Saudia Arabia, in May 1981. The purpose of the GCC is to achieve unity among its members based on their common objectives and their similar political and cultural identities, which are rooted in Islamic beliefs. Presidency of the council rotates annually.

Background

Navigating the GCC

Doing business in the GCC may present some challenges for international companies new to the region.  By identifying, defining and creating solutions for those business challenges, our business process helps mitigate risk for a seamless entry into the GCC while honouring corporate philosophy and brand DNA.

Business Process

1. Detail and design business blueprints which uphold corporate DNA while enabling each respective division to implement and deliver project successfully.

2. Facilitate the decision making process between short term initiatives and long term strategies involving operations, strategic sourcing, procurement and human capital management.

3. Design new business process that works within market, cultural and government policy restraints.

4. Oversee project implementation on an executive level and deliver results back to shareholders.

To ensure project investments align with corporate strategy and shareholder vision, our processes are focused on helping businesses quickly adapt to (and comply with) importing / exporting regulations, SASO (Saudi Standards, Metrology and Quality Organization), SFDA (Saudi Food & Drug Authority), commerce related government approvals and gaining access to local distribution networks.  We also advise on local agents to provide references for qualified third party services.

By conducting high level market research, organizations may explore and pursue strategic relationships to better position themselves into new markets.  Our feasibility studies help organizations balance corporate objectives with long term financial goals.

Helping to overcome barriers to entry into the GCC market means strengthening the ties that form lasting relationships among a global business community.

Citations:

  1. KSA Retail Sector.  July 2012.  Aljazira Capital Research Division.  http://www.effentiicorp.com/wp-content/uploads/2014/08/KSA-Retail-2012.pdf
  2. GCC Food Industry Report, April 2015.  Alpen Capital.  http://www.alpencapital.com/downloads/GCC_Food_Industry_Report_April_2015.pdf
  3. GCC Retail Industry Report, January 2015.  Alpen Capital.  http://www.alpencapital.com/downloads/GCC_Retail_Industry_Report_January_2015.pdf
  4. GCC Construction Industry Report, June 2015.  Alpen Capital. http://www.alpencapital.com/downloads/GCC_Construction_Industry_Report_June_2015.pdf