Bindaud is shaking up business in Saudi Arabia as usual Business and Economy News

For Ahmed Bindaud, the reward for the family firm he worked for at the age of eight last year was the opportunity to build his legacy in the Saudi grocery business, when his father and uncle shared the $ 3.1 billion he built over decades.

Following the launch of Bindwood Holding Co.’s public offering in October, details of an earlier undisclosed in 6 million were released to family members of the Saudi company. After bidding farewell to traditional theological secrecy related to state-owned family companies, Jeddah-based Bindwood revealed everything, held IPOs and gave buyers the opportunity to get their money back.

As the funds quickly paid off, sales resumed and eventually raised about 500 500 million for the family, expanding to ২ 29 billion.

“We need to be very transparent with our investors,” Bindaud said in an interview in Riyadh last month. “If we need any disclosure at that time, we will go ahead and do it. So we decided to shoulder it and announce it. “

The success of the IPO has helped establish the 37-year-old Bindwood, a new breed of Saudi official within the corporate world until a few years ago that was out of bounds to most foreigners. Saudi Crown Prince Mohammed bin Salman’s goal of transforming the then-prosperous state into a regional business hub symbolizes the way to shake up the business’s what’s the traditional way.

That mold-broken character can even be seen inside the Bundwood store. In the past few months, the organization has been promoting Valentine’s Day and Easter, which a few years ago could not have imagined in a country that historically adheres to the strict Wahhabi interpretation of Islam.

Not all of Prince Mohammed’s promises to reshape the economy are working for bin Laden. The sudden decision to triple the value added tax on consumer spending last year is also costly for Saudi companies with high tariffs and fees on expatriates. And the Kovid-1p epidemic is on the rise all the time.

Mehbish Zafar, a senior equity analyst at Arcam Capital in Dubai, said: “Sales for sales like choice could be negative until at least 2022, he said, adding that growth only comes from opening new stores or acquisitions.

Shares of Bindwood rose more than 30% in the days following the sale. They have since slipped back, rising about 11.5% from the listing price until Monday.

It’s a performance that has helped strengthen the core business as well as diversify other assets, as well as the key to resisting the kind of resistance his father feared could hurt the business as it moves to a new generation.

“Most family businesses don’t survive third-generation transfers, and that’s what my father was most worried about,” Bindwood said.

The progress of the pilgrims

The rise of the Bindwood business has been around for 40 years. Once a short-term seller of Arabic perfumes and groceries to pilgrims visiting the Islamic holy sites of Mecca and Medina, it is now a global concern in a wide range of supermarkets, hypermarkets, hotels and distribution centers. The grocery business alone employs more than 10,000 people across 744 stores.

After graduating from King Fahad Petroleum and Minerals University in Dhahran in the 19th century, Ahmed Bindoud’s own destiny was sealed. Instead of following his colleagues in the oil industry, he decided to join his brothers Ismail and Abdullah in their extra retail trade.

Which is why Ahmed found himself in the front line at such a young age. At just eight years old, he enlisted the help of friends selling items to pilgrims during the school holidays, envying friends who had escaped the scorching summer in Saudi Arabia.

“Our friends enjoyed going out and sometimes we would ask: why not us?” Bindaud Dr. “But this experience created the passion between us to stay in the business that our father and our mama created.”

The decision to push online shopping and delivery helped create firms for lockdowns during the coronavirus epidemic, but did not overcome the injury in the absence of religious tourists barred from entering the state for most of the year. Profits rose nearly%% last year, but fell more than 53% in the fourth quarter due to travel restrictions imposed by Saudi Arabia.

Bindwood is still optimistic that travelers will return as soon as they resume their journey, although it is uncertain how quickly pilgrims will return to Saudi Arabia in something like the previous numbers.

The next country could be a rival grocery chain purchase to expand to neighboring countries, Bindaud said. At the same time, the ongoing IPO will help further develop the Bindaud Group family office, which Ahmed’s father is now running. According to the Bloomberg Billionaires Index, this fortune, which is divided among several family members, is estimated at about প্রায় 3.1 billion.

“IPOs had two main angles – firstly the continuity and continuity of the business and secondly the diversity for the family,” he said. “We are in the process of creating family offices and bringing in the right talent.”

More family businesses could follow in Binadwood’s footsteps. The IPO of Saudi Aramco in 2012, which many Saudis thought they would not see, was a huge driver in persuading families to go public with their businesses to help them grow their businesses and encourage new wealth, “said co-founder Tayyab Mohammad. Said the London-based family office stuffing firm, Agrias Group.

For all the challenges, Ahmed Bindaud is optimistic, citing his long-term involvement in business life as the foundation of success.

“Retail is now embedded in our DNA,” he said.

(Updates share performance in paragraph 9))

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