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Saudi Arabia Report
Marcopolis presents the Saudi Arabia Report focused on the investments, doing business, economy and other topics featuring interviews with key executives. The sectors under review in this issue are industry, real-estate, ICT, investments, banking sector, telecom sector and many more.
InterviewsFebruary 06, 2015
Saudi Multi-Billion Dollar Market for Industrial Environmental Services
Ashiq Al-Ajmi, Vice President of Saudi Environmental Services
- Written by Super User
- Published: February 06, 2015
Ashiq Al-Ajmi is the Vice President of Saudi Environmental Services. SES is offering a full line of integrated environmental services, using state of the art technologies, and advanced scientific methodologies on a economically efficient, and environmentally sound manner for the kingdom of Saudi Arabia and the gulf region.
Interview with Ashiq Al-Ajmi, Vice President of Saudi Environmental Services
How big is the market for environmental services in Saudi Arabia?
The market for environmental services in Saudi Arabia is big and it is booming. Many companies have invested in Saudi Arabia particularly in the oil and chemical sectors. Therefore, there exists a great need to dispose of the waste products from these industries in order to protect the environment. That means that the potential for the environmental services market is very big in Saudi Arabia. We have a shortage of companies that dispose of such waste, for example hazardous waste, chemical waste, medical waste etc.
Therefore, there is a shortage of companies offering environmental services and there is huge demand for these services.
Yes, there is huge demand for environmental services. The market needs more of these companies. The challenges arise from the regulations that control these kinds of businesses. If you want to open an environmental services company, you will find that it is a slow process to initiate or create your company here in Saudi Arabia. It is hard to start a new company, especially for foreign investors. We have good regulations here but no one complies with them.
In terms of the size of the market, is it in the billions of dollars?
I think the market is a multibillion-dollar market. It is hard to say the exact numbers. It depends on the waste and the policies of the industrial companies; some companies are heading towards recycling systems to minimise their waste quantities.
For the next five years or more, the market represents billions of dollars. We need more companies working in this field; there are only four or five companies working right now. Unfortunately, some of these companies are not dealing properly with environmental services, but instead they are breaking the rules and regulations. This will affect people, the air, the water etc.
For the next five years or more, the market represents billions of dollars.
Regarding awareness and regulations, how does Saudi Arabia compare to other countries? Does Saudi Arabia have very stringent environmental protection regulations compared to neighbouring countries?
I believe that the environmental protection regulations in Saudi Arabia are the best in the Arab world and the Islamic world. In Saudi Arabia, we follow the European and American standards for environmental protection. The problem is that no one complies with these regulations. These regulations apply in the offices but not in practice on the ground.
Is it a problem of enforcement?
Yes. There is little enforcement of the regulations here in Saudi Arabia.
How do companies approach matters of the environment and using environmental services? Are companies compliant?
No. Each private industrial company has its own environmental control department and they each have their own system. When companies apply for tenders or bids, there are conditions. In theory if you do not comply with the conditions, you will not get the deal. However, companies can say that they will comply with the conditions but once they get the contract they do not comply. This is the case with some companies, not all of them. Some companies do comply with the regulations but others are destroying the environment in Saudi Arabia.
Tell us about your company. How are you helping industrial and medical companies be more environmentally friendly?
We at SES offer services to treat and dispose of hazardous industrial, pharmaceutical and medical waste. We use fantastic technology in order to do this. It is very important to treat medical waste from all medical facilities in the right manner. We provide a technology that treats hazardous, infectious or toxic medical waste by thermal oxidation and incineration. The smoke given off by burning this waste is also treated and so the emissions are 99% clean. The smoke from the incinerations will not affect anyone in the area.
Can you tell us about the growth of the company?
Our company and our business is growing but I cannot say the exact percentage.
Do you think the industrialisation of Saudi Arabia is a good policy?
We have very good regulations here in Saudi Arabia but nobody complies with them. The industries need to comply because all industrial waste is hazardous and has to be dealt with in the right way. If they do not do so, it will affect their own employees and their own facilities. Fortunately, many industrial companies are compliant with the regulations. However, nobody is compliant with the regulations regarding medical waste. Some companies throw their medical waste into the desert or into landfill. They are not treating the medical waste properly and this is very dangerous for our people, especially now when we have the coronavirus. These are bad companies.
Tell us about your strategy and vision for the company. What strategic goals do you want to accomplish this year and next?
We are going to close the part of our company that deals with medical waste because we cannot find the land to rebuild our facilities. We are going to close in April 2015.
We are now focusing on industrial waste. Our strategy is to build at least four sites and to expand in the Al Murjan plant, over the next five years. We want to be able to properly dispose of hazardous industrial waste all over the kingdom. We are planning to grow and expand our business.
Are you following the same growth rate as the industry in Saudi Arabia? There is a national strategy to see about 30% growth for industry.
Private businesses in Saudi Arabia are free; you can go and open a business wherever you want. You just have to follow the rules.
What are the principles that guide your company?
We focus on treating hazardous industrial waste. We participate in conferences regarding environmental issues.
What is your vision for the company? Where would you like to see the company in five years?
I want to be the leading company in Saudi Arabia for environmental services. We are working hard to achieve this.
What are the steps you are taking to achieve this?
We are expanding and opening new sites in Saudi Arabia, especially in the industrial cities such as Jubail and Yanbu.
We have excellent facilities on our sites but we do not have enough capacity to receive all of the waste from one area such as the Royal Commission in Yanbu. Therefore, we need to expand using the same facilities, i.e. the chemical treatment plants. Expansion for us means doing more business with the industrial companies.
Tell us a bit about doing business in Saudi Arabia and the opportunities here.
Saudi Arabia is a big country and there are many opportunities for business here, especially for environmental services. Saudi Arabia is booming with industrial cities. We see that the environmental services sector is growing fast. I think that we need more companies in this sector. This will also provide plenty of employment opportunities for our youth. Many young people who have been studying abroad with scholarships are now coming back to Saudi Arabia. We need to employ these young, qualified people here in Saudi Arabia.
Ultimately, it is very important that companies comply with the regulations.
