Mohammed Al Naimi, CEO of ACT Group, optimistic about evolving business landscape in Saudi Arabia

Increasing competition, new technologies will help raise quality of products and services offered in the market

Mohammed Al Naimi, CEO of ACT Group, speaks to Economy Middle East about the many changes that are influencing the rapid development of Saudi Arabia. Mohammed Al Naimi sees the number of international businesses entering the market as a positive development that will help boost Saudi Arabia’s competitiveness. Moreover, Mohammed Al Naimi discusses the robust entrepreneurial ecosystem in the Kingdom and how Saudi Arabia is leveraging technology to further advance its ambitions to become a progressive nation.

Non-oil business activity in Saudi Arabia was at a six-month high in March, according to PMI data, thanks to increasing order books and new customers. How is this boost in business activity affecting your industry in particular?

The increase in non-oil business activity has had a positive impact on our industry. In ACT group’s case, we have had a new range of procurement demand come into the industry. In addition to the increasing diversity of the new demand, the industry is seeing a change in the standards of acceptable deliverables. What was acceptable previously is no longer a standard. Mostly all chain supply contributors have set higher benchmarks which subsequently raised the standards in the final product or deliverable being submitted. We are also witnessing new players in the industry who are offering or requesting alternative services to what was traditionally being served. Having new customers in the market is a positive development in our industry. Hence, it increases competition and the quality of the services the market offers.

What are the biggest changes you have seen in Saudi Arabia since Vision 2030 came into effect?

To be frank, the changes we see in Saudi Arabia are inspirational; but to be specific, the change we are seeing in the mentality of the youth and the positive shift in their professional mindset have been some of the greatest changes we are seeing. This just gives us more hope as a people that the future will be brighter. We are seeing, on a progressive basis, the increase in the demand for higher education and professional certificates which in turn will deliver more intellectual conversations and a way of thinking.

What are some of the unique challenges the country has overcome to achieve its Vision 2030 targets?

The shift away from full dependency on oil has been a tremendous step in the right direction. Of course, it is a work in progress. However, we are advancing in other sectors that can greatly contribute to this nation’s GDP and success. We see Saudi Arabia opening its doors to people from different backgrounds and expertise to help serve the country’s goals. This growing diversity in Saudi Arabia is paving the way for greater understanding and openness among our people to be receptive to new ideas, whether in business, tourism, entertainment, or system implementation.

Saudi Arabia’s startups raised nearly $200 million in March alone, while the overall MENA region saw as much as $429 million being raised in the first three months of this year. Clearly, Saudi Arabia has emerged as an ideal hub to support startups. What kind of on-the-ground impact are you seeing because of this?

This is no surprise, as post-COVID-19, we are seeing more enterprising and confident young people turning their creative ideas and projects into successful businesses. Firstly, this goes to show the great support the country’s leadership is offering entrepreneurs as well as the great pool of investors in Saudi Arabia. Whether the demand is coming from the growing local population or expatriates in Saudi Arabia, what we are seeing is that the increasing population has paved the way for opportunities for businesses to address emerging new needs in the market. In addition, the government has provided plenty of support programs for business ideas and business owners to make their dreams come true. This has been a tremendous game-changer. Thus, it has enabled people to start thinking that the impossible is, in fact, very much possible.

Tourism, sports and entertainment are seeing a major push as Saudi Arabia tries to reduce dependence on oil. Which other sectors do you see taking center stage in this agenda?

We are seeing a major push in a diverse range of industries. For instance, the tech sector has been witnessing transformational changes. This involves the advancements Saudi Arabia has initiated as far as introducing or adopting new technologies, such as AI, and the continuous work that the government is doing to develop its capabilities and services that leverage modern technologies.

We have recently also seen the investment and advancement in renewable energy and recycling which will definitely be a game changer in the future. Furthermore, the real estate industry is seeing a tremendous change with mega projects being announced at a remarkable pace. This will help develop the infrastructure and improve the services that Saudi Arabia will be able to provide to citizens and expatriates. Finally, the financial sector is seeing drastic changes and advancements in services and products that are now available to the market. Saudi Arabia will probably be amongst the first-world countries in that aspect in a very short period of time.

How do you see the international business community contributing to Vision 2030, particularly in sectors such as infrastructure and manufacturing?

The change we are seeing nowadays is something to be proud of, especially for me as a Saudi citizen. From ACT Group’s perspective, we’ve had international partners test the water on a regular basis to be in the Saudi market. This was not the case previously. International players in whichever part of the supply chain have an increasing interest in being part of the Saudi market instead of just having representative offices or local partners here. The presence of multinational companies is always great as they definitely increase the competition in the market. This, in turn, will lead to a better quality of the products or solutions that Saudi Arabia offers. In addition, exposure to different technologies and new advancements is always beneficial as it helps local businesses open their eyes and focus on the latest developments.