OGER SYSTEMS

Business Plan
2013
Document Authors:
Wael Ghazzawi

Contributions by:
Nidal Hamdan
& Fadi Halabi

Oger Sys.
NEXT GENERATION SOLUTIONS

www.OgerSystems.com
Oger Systems Ltd. is a technology system integrator that provides Turn-Key solutions and services starting from concept,
design, implementation to comissioning wrapped with Project
Management Methodology.

INTRODUCTION
U

nderstanding the government planned future city

expansion of both Jeddah and Makkah allows us to
better forecast the expected categories, distribution, and
size of business opportunities that will become available
at the different growth phases. And as such would allow us
to create a customized set-up that uses selective brands
and develops industry specific services that would insure
providing a selective edge on competitors which is integral
for securing Mega-sized projects that follow international
standards.

To do so we need to first start by building financial return

models that reflect the investment-cycle for a specific
category of projects (Hotels, Universities, Schools, etc.) in a
specific region (Makkah or Jeddah) highlighting the factors
that sets or drives the delivery deadline, while integrating the effects that certain region specific risks might pose
on our investment (Floods). From that point we can then
define the project portfolio that is most profitable and has
the least amount of risk for maximum returns on our investment.

The size of our investment should however have an upper

limit that is a set reflection of the companys planned size
of growth, which maintains an acceptable ratio between our
trained & integrated staff to the Man-Power infrastructure
required to implement these projects.

Furthermore we will be introducing a new prototype Arial

based survey software system that allow us to analyse vast
areas and pin-point areas of interest with potentially high
yielding projects in addition to providing an initial idea
about the type, size, and construction phase of the project
before even having to visit the site in person.

At the same time the investment needs to be distributed

over a multi-category multi-sized type of acquired projects
that mitigates risk by allowing a smooth cash flow-cycle
that prohibits large projects from hogging all the liquidity in
favour of small short cycle projects that offer faster returns
with lower margins.

In the sections to follow we will discuss in depth the strategy we are proposing, while presenting a list of upcoming
major projects specific to Jeddah - Makkah region.

MAJOR GROWTH ZONES - JEDDAH

J

eddah Municipality released a draft of its upcoming

strategic 20 years growth Plan reflecting the zone distribution and land use schema to be followed (Please refer
to figure 1 on the next page).
The major change was the creation of a new international
Airport (KAIA - King AbulAziz International Airport - Jeddah)
located closer to Obhur Creek. This effectively allowed the
move of the city business center to Obhur Al-Shamaliah (
214343.40N, 39 524.27E) where the new Kingdom tower is being built in a Mega-Construction Zone surrounded by
an entirely new city -(Refer to Opportunity Zone 1).
More importantly the municipality is planning to release
the old airport land space in favour of urban development,
with an area of around 1,200 hectares of vacant strategically located land space surrounded by several important
historical, cultural and educational districts as well as other
proposed developments. The site is due to become the largest single development in jeddah history which will be in
close proximity to a proposed major transportation hub, that
is directly adjacent to the expanded national raid network.
Making this area a prime investment location for hotels and

services tailoring to both Hajj and tourism where by the

distance between Jeddah and Makkah is reduced by the high
speed train services that are in close proximity constituting
a second hot area for future growth - (Refer to Opportunity
Zone 2).
Note: Additional Opportunities will be presented below.
In addition the municipality has created a list of areas that
are considered a priority for investment and growth which
consist of the following: Thuwal, Dhaban, Asfan which need
to be investigated further to understand the type of investment they will attract based on their proposed purpose in
the overall picture.
A small highlight of the potential project opportunities that
are currently or will soon be available in Jeddah Region will
be presented in the upcoming pages with a short summary
of the logistical value of each opportunity.

OPPERTUNITY ZONE 1 - HHR - JEDDAH

CENTRAL JEDDAH

arameen high Speed Rail project (Jeddah Station) is also known as the Western Railway or Mecca-Medina high speed
railway, is a 449.2 kilometres (279.1 mi) high speed inter-city rail transport system under construction in Saudi Arabia.
It will link the Muslim holy cities of Medina and Mecca via King Abdullah Economic City, Rabigh, Jeddah, and King Abdulaziz
International Airport. It will connect with the national network at Jeddah. Its primary purpose is to facilitate the inter-connection between Makkah and Maddinah (the Harameen) facilitating pilgrimage.

Logistical Value

General Information

The project is one of 4 building hot spots in Jeddah with a government investment value of over 773 Million USD,

Engineering designs have been prepared by Foster + Partners

and Buro Happold. According to SRO, the stations will be to the
highest international standards and specifications, with aesthetically iconic designs which take into account Islamic architectural
traditions. The stations in Makkah and Madinah will be consistent
with the religious dimension of the holy cities.

Project Duration
From:
To:
Status:

Q1 2011
Q4 2014 (Delayed)
Under Construction - Bidding for LC Systems

Opportunity
Nidal Hamdan will be forwarding the information for the bid
requirements for El-Seif which is a saudi Oger subcontractor.

Main Contractor
Saudi Oger - El-Seif Engineering Contracting Company.

OPPERTUNITY ZONE 1 - OLD AIRPORT

CENTRAL JEDDAH

he decision to reutilize the old airport for urban development made available 1,200 hectares of vacant strategically located land space surrounded by several important historical, cultural and educational districts as well as other proposed
developments. The site is due to become the largest single development in jeddah history which will be in close proximity
to a proposed major transportation hub, that is directly adjacent to the expanded national raid network. Making this area a
prime investment location for hotels and services tailoring to both Hajj and tourism where by the distance between Jeddah
and Makkah is reduced by the high speed train services that are in close proximity constituting a second hot area for future
growth

Logistical Value

General Information

No Information available yet.

No Information available yet

Project Duration

Main Contractor

From:
To:
Status:

No Information available yet.

Opportunity
Expected to be a hotel dominated region that service the Hajj
season and pilgrims.

OPPERTUNITY ZONE 2 - JCPD

CENTRAL JEDDAH

eddah Center Project Development is dedicated to redeveloping the central business hub of the city of Jeddah and preserving the historic area, the project will be the largest city center urban project in the Arab world. Jeddah Center Project
has a land area of around 6 million square meters and the project will result in a total built-up area of 12.7 million square
meters. In co-operation with the Jeddah Municipality, the vision is for the Jeddah Central District to once again become the
heart of the city. The project will economically rejuvenate Jeddah Central District, create world class business, residential and
retail facilities, revive the historical and cultural heritage of Jeddah, purify its marine environment and reunite the city with
the sea. The end result will create job and housing opportunities for Jeddahs young population, 60 % of which is under 25.

Logistical Value
The project is one of 4 building hot spots in Jeddah with a government investment value TBD USD,

Project Duration
From:
To:
Status:

Under construction.

Opportunity
A new city center consisting of business towers, water front, flood
gateways, new infrastructure, Malls, Hotels, Entertainment facilities.

General Information
The consortium includes world renowned companies such as
Solidere International, the company behind the re-birth of Beruit
city center, the Urban Development Company, a Saudi real estate
developer engaged in multiple mega projects in the Kingdom, and
renowned regional partners such as Siraj Capital and Al-Tijaria &
Venture Capital Bank.

Main Contractor
No Information available yet.

OPPERTUNITY ZONE 3 - SPORT CITY

OBHUR AL-SHAMALIYAH

ing Abdullah Sport City (KASC) consists of a 60,000 seats football stadium, a 2,000 seats multi-sports hall, external
athletic stadium with a 1,000 seats tribune, several training fields (football pitches, tennis courts, athletic sports,), a
mosque and parking for 45,000 cars. The Major size of the business opportunity will be centered around Public Address,
Audio-Visuals, Fire Alarm, CCTV, and news reporter rooms.

Logistical Value
The project is one of 4 building hot spots in Jeddah with a government investment value of over 552 Million USD,

Project Duration
From:
To:
Status:

Q3 2012
Q4 2014 (October 31, 2014)
Under Construction - Concrete Phase

Opportunity
Nidal Hamdan is currently working to set a meeting with BESIX
since Al-Muhaidib is only responsible for concrete work.

General Information
On 12th September, 2011, BESIX signed the Contract for the
construction of the King Abdullah Sports City Project. In a 50/50
joint venture with Al Muhaidib Contracting, BESIX will develop the
KASC Project in Jeddah Saudi Arabia.

Main Contractor
Aramco - (Al Muhaidib & BESIX)

OPPERTUNITY ZONE 4 - KT - CITY

OBHUR AL-SHAMALIAH

he expansion and growth Plan set for Jeddah City requires the creation of a new business center that utilized the
unused space at Obhur Al-Shamaliah which is logistically located close to the new KAIA international Airport and KASC
Sport City. This new area has a central peace which is the Kingdom Tower but more importantly it is surrounded by an entirely
new city similar to KAFD in Riyadh with multiple Tower, Hotels, Hospitals, Malls and an entirely new infrastructure to service
it. Moreover the location is considered as one of the major attractions for tourism in Jeddah, which allows us to predict that
the major distribution of building will be for tourism services with Hotels and Malls constituting the majority of the buildings.

Logistical Value

General Information

The project is one of 4 building hot spots in Jeddah with a government investment value of over 15 Billion USD,

The partners of Jeddah Economic Company (JEC) are Kingdom

Holding Company, Mr. Samaual Bakhsh, Abraar, International Holding Company, prominent Jeddah businessmen Mr. Abdulrahman
Hassan Sharbatly and Saudi Bin Laden Group (SBG). The capital of
JEC is made up of SR8.8 billion in land value, assets that are SR7.3
billion, plus SR1.5 billion in cash contributed by SBG that further
demonstrates their confidence in this extensive project. The Tower
will be surrounded by a new City with its own hotels and towers.

Project Duration
From:
To:
Status:

Q4 2011
Q1 2017
Under Construction - Concrete Phase

Opportunity
The real value for us is actually in the vacinity towers and hotels
being constructed where we can secure a full Solution Contract.

Main Contractor
TBA

MAJOR GROWTH ZONES - MAKKAH

M

akkah as a city is built around the holy tourism industry and as such the majority of construction projects
are either Hotels or Residential houses that are active
seasonally. This fact presents an interesting component to
projects that are specific to the Makkah region, where by
their date of completion is actually driven by the season
start date of major holy events such as Hajj. This is why no
hotel in Makkah would have a construction span longer
than 2 years and the period becomes shorter as the property
becomes closer to the haram location.
The high demand and low availability of housing in the holy
seasons creates a highly competitive environment for delivering on time to maximize the profit returns of the investor
which is an insured 400% reservation rate as a minimum,
we note here that the pervious value is not a mistake but
is a result of standard hotel policy in Makkah where by
they modify the room layout to fit the maximum number of
beds in the available area as such a hotel with 300 single
bed rooms would actually contain 1200 people during the
season as a minimum.

10

This continues seasonal demand creates a business environment that is short-cycle low-risk fast-return with small to
medium investment values where by a standard full system
hotel would have a sale opportunity value of around 14
Million SAR.
This means that when we decide on the type/location and
return of our to be acquired projects we need to take into
consideration the profit margin versus the investment period. Since and if the selection of the client was done properly
the rate of return from these small investments provides a
very profitable model for Oger Systems to grow.
Furthermore we highlight the fact that most construction
sites in our field would actually provide the physical cable
pulling via their own child company meaning that our
implementation phase is reduced to testing commissioning
and programing which can be fit in around 4 month at most.

OPPERTUNITY ZONE 4 - MAKKAH

ANY

nlike Jeddah, Makkah has a continuous build spree of hotels and residential housing in nearly any free space available
and as such you would see hotels in an otherwise uncommon non-logical place this is a result from having Hajj Offices
do the reservation and provide transportation to and from The Hajj Fara2id. This leads to an interesting setting whereby
and as a result of the distribution complexity and high build rate resulting in a market that is simply harder to survey and
report resulting ultimately in less competition and higher profit margins. Add to that the lack of IT solution service providers
whereby IT companies have the choice of selecting which projects to take to maximize return based on their limited maximum man power.

Logistical Value

General Information

Project values differ based on the solutions required by the hotel

but are usually between the value of 6 Million and 14 Million SAR.

A sample of these projects that are common to Makkah and Madinah are Bazel Al-Kheir 3, Al Rayan, Jabal Al Kabaa, Al Shurfah
Project, Burj Al-Jiwar, Multlaq Tower, Abraj Al-Bait, etc...

Project Duration
From:
To:
Status:

Anytime
Next Year at Ramadan or Hajj season.
-

Main Contractor
Private Company (IBS, etc...)

Oppertunity
Electronic GIS Survey followed by site visits allow us to pin-point
potentially rewarding areas where multiple hotels are being
constructed simultaneously.

11

PROJECT PIPELINE

SAR 62,161,757.96

SAR 12,500,000.00
TBA

TBA

S I
OTAIR Group
SAR 5,900,000.00
S
I
Al-Khoreji Co.

PROJECT PIPELINE
The Chart Above reflects in 3 colors the project pipeline for Q1 and Q2 of 2013, in which the color Green
designates in Bid Projects, the color Blue designates
already won projects being implemented, the Color
Purple reflects newly won projects that will have a
start in implementation in the designated Quarter.
The total sell value of the above projects totals 74 million SAR not including the selling value of the upcoming KAP 1 which is undergoing final PO generation. Of
which the total profit is larger than 11 million SAR.
12

Our plan moving forward is to have 64% of our business

opportunities per year in small investment cases, which
allows a high profit margin in a short return cycle implementation project. This allows us to become more agile as
the liquidity will not be held for elongated period in MEGA
project scenarios.

UPKEEP SPENDING PLAN

The following information specified below reflect the upkeep cost for maintaining and operating Oger Systems Jeddah Office
that coveres the area in and around Jeddah province and Makkah province for the purpose of detecting upcoming projects
and generating the financial paperwork required for the targeted projects.

Oger Systems - Jeddah Office 2013

Q1

Q2

Q3

Q4

75,000.00 SAR

Office Supplies (Consumables)

1500.00 SAR

1500.00 SAR

1500.00 SAR

1500.00 SAR

Design Workstations (1 units)

8,250.00 SAR

Design Software (NetformX License - 1 seat)

Quotation R.

AutoCad 2013 (License - 1 seat)

Quotation R.

-2000.00 SAR

-2000.00 SAR

-2000.00 SAR

-2000.00 SAR

-325.00 SAR

-325.00 SAR

-325.00 SAR

-325.00 SAR

380.00 SAR

290.00 SAR

290.00 SAR

290.00 SAR

Car Rent (1 units)

3800.00 SAR

3800.00 SAR

3800.00 SAR

3800.00 SAR

Project Acquisition - Fuel Cost (estimate)

1200.00 SAR

1200.00 SAR

1200.00 SAR

1200.00 SAR

800.00 SAR

800.00 SAR

800.00 SAR

800.00 SAR

4800.00 SAR

12,000.00 SAR

Office Rent (Jeddah)

Fax Line (Cancelation)

PABX Service (Cancelation)
Internet Solution - 6MB - Unlimited (Replaced)
Local redundant Back-Up - 6 TB - Network Drive

Project Acquisition - Mobile Calls (estimate)

22 LCD Screen (6 units)
NoteBooks (4 units)

Annual Spending Total = 130,500.00 SAR

(Excluding Licenses)

1.2%

The Up-Keep Value represents 1.2% of the

current Net Profit return taking only Q1 & Q2
into consideration and is expected to shrink
to a value of 0.8% by the end of Q4.

TOTAL UPKEEP VALUE

The Spending Plan presented above covers the requirements for
operating an actively project seeking office where by a large percentage of the spending allocation is directed towards the operations required to establish communication with clients and to process
required paperwork to generate a successful bidding solution.

13

ORGANIZATIONAL CHART
Ali Zimmo
SETA Manager

Nidal Hamdan

Wael El-Ghazzawi

Wester Region Branch Manager

Western Region Project Manager

Fadi Halabi

Raafat Hassanien

Sales Manager
Jeddah - Makkah

Sales Manager
Madinah

14

KAI - CCJ Project

IBS- ARAC Hotel

Al-Hamraa Hotel

Project Manager
Site Forman
Technicians

Project Manager
Site Forman
Technicians

Project Manager
Site Forman
Technicians

KAP 1 - Maddinah

KAP 1 - Makkah

KAP 1 - Jeddah

Project Manager
Site Forman
Technicians
32 SITE

Project Manager
Site Forman
Technicians
16 SITE

Project Manager
Site Forman
Technicians
14 SITE

(4) Project Evaluation

(7)Technical Feedback

WORKFLOW CYCLE

Wael El-Ghazzawi
Western Region Project Manager

Nidal Hamdan

Design Team

(9) Financial Proposal

(8) Technical Proposal

Oger Systems

(6) Design Generation

Sales Manager
Madinah

(5) Deal Estimation

Raafat Hassanien

(2) Client Evaluation

Sales Manager
Jeddah - Makkah

(1) Project Detection

Fadi Halabi

(3) Oppertunity Documents

Wester Region Branch Manager

REPORTING HIERARCHY
The organization chart on page 12 reflects the reporting and responsibility chain of command that will
be in effect on the western region (Makkah, Jeddah,
Madinah).
The Sales department will be centralized in Jeddah
which is the most logistical location to cover all 3
provinces taking into consideration the project hot
spot distribution, where the structure calls for a permanent presence of a sales manager in Madinah and
another sales manager to cover Jeddah and Makkah.
Both Sale managers will be reporting to the Western
Region Branch Manager, who will coordinate and assist in the communication and information transfer
between the sites which are mostly located in Makkah
and Madinah and there respective owners and

specified consultants which are mostly centralized in Jeddah.

The Western Region Project Manager will handle the assessment of potential projects and identifying the unique
technical difficulties specific to each site this will be
reflected in the implementation costs of any out-going Bid.
In addition he will handle the Planning, Coordination and
selection of the Project Managers, formans and technicians
specific to each acquired project while providing high level
technical direction for the different technologies being
deployed and handling the logistics of shifting man-power
between sites to keep the overall delivery deadline of all
projects on track.
15