In the scope of accelerating the adoption of cutting edge-technologies across the innovative industrial projects, King Abdulaziz City for Science and Technology (KACST) and the Obeikan Investment Group (OIG) inked a memorandum of understanding, on the sidelines of the second edition of the International Technical Conference “LEAP23” organized by the Ministry of Communications and Information Technology and was at the forefront of Riyadh’s Exhibitions and Conferences.
On behalf of KACST, the signing of the MOM was represented by Dr. Khalid Bin Abdelrahman Al-Dukkan, the Supreme Vice President of KACST of the Innovation Sector, meanwhile OIG was represented by Eng. Abdullah Al Obeikan, the CEO of the Group, in the presence also of a number of officials from both parties.
The core of the strategic partnership between KACST and the Obeikan Group aims to invest in expertise and knowledge assets that contribute to accelerating the adoption of technologies across innovative industrial projects, support the hosting of emerging entrepreneurial companies and the R&D innovation activities of local and international companies and empower them with facilities and catalysts that will equip them to smoothly implement the foster of the emerging technologies that have an impact on the economic development in the Kingdom.
Within the context of the memorandum of understanding, the two parties will consolidate their efforts in studying the establishment of an industrial technical fund to invest in advancing the innovative capabilities of national institutions and companies in the Kingdom, and also carry out investments in entrepreneurial companies that operates in developing solutions supported by the emerging technologies, in addition to studying investment opportunities in the innovation spheres to enhance the development of the innovative environment in the Kingdom.
Innovation and the pursuit of excellence are driving the success of Saudi family enterprise Obeikan Investment Group (OIG). Chief Executive Abdallah Al-Obeikan talks to Hischam El-Agamy about the company’s digital transformation journey and his mission to create a fully autonomous business
We live in a world of rapid transformation, a world where digital disruption and megatrends are affecting all industries. Successful family businesses are those that are willing to move away from traditional opportunities and react quickly and decisively to change.
The story of Obeikan’s success began in 1982 with a single commercial print shop in Riyadh.
Over the next 40 years, OIG diversified into new industries and markets and now has a diverse set of operations in manufacturing, packaging, education, and healthcare. It is one of the leading business groups in the Middle East and North Africa and one of Saudi Arabia’s top 100 largest companies, serving more than 80 markets globally.
Since 2017, the company has increased its focus on digital transformation, supported by more than 3,000 staff whose ways of working have been transformed by a digital environment and the solutions the group has adopted.
A business imperative
Al-Obeikan, who has been at the helm of the business since 2002, was quick to take advantage of the digital opportunities he saw evolving in the world around him.
“For me, harnessing the power of digital was not a choice – it was a business imperative. “Since our inception, a strategic enabler of this business has been to constantly seek out opportunities to drive growth and improve productivity,” he said.
Early on, Al-Obeikan recognized the role technology could play in creating more productive, precise, and responsive manufacturing operations.
“I was inspired by what I saw in the emerging B2C companies of the late 2000s, the likes of Uber and Airbnb,” he explained. “These are companies that have completely changed the world and I saw the potential that digital technologies could unlock in the B2B space.”
He notes that B2B companies face similar problems to those that innovative B2C companies set out to solve, such as waste, redundancy, or poor customer experience.
“With cost and competition increasing, I realized that digitization was not just a tool but a competitive advantage,” he added.
Al-Obeikan realized that a strategic focus on digitization was about more than improving productivity, it was also about meeting the growing expectations of OIG’s customers and employees. He realized they were experiencing a far more personalized and accessible experience as consumers and knew they would come to expect this in their working lives as well.
“If you order a pizza, you can now see exactly where it is every step of the way. But this was not the experience my customer was getting when waiting for a product, or my employee experienced while waiting for a spare part. I realized we needed to give them the same experience they were receiving as consumers by communicating with them regularly and on the platforms that they preferred – that is, on their mobile devices,” he said.
A digital transformation
In 2017, OIG embarked on a journey to create a digital enterprise. This involves data scientists working hand-in-hand with experts in the field to ensure that all processes are digitized, unlocking the knowledge within the business to create digital assets of the company’s physical assets.
Today, at OIG’s 20 factories, digital technologies provide end-to-end connectivity across all machines in the facility. Data from these machines is analyzed to contribute to the artificial intelligence and advanced analytics that drive continuous improvement in machine and production efficiencies. Smart equipment raises maintenance tickets automatically and there is real-time machine healthcheck reporting and production target tracking.
As CEO, you need to be persistent and decisive about digital, says Al-Obeikan The success of the company’s digital transformation is measured in improvements in productivity, quality, customer experience, and employee engagement. “We don’t measure our success by the flashy screens we have on the shop floor, we measure our success by real money on the bottom line,” said Al-Obeikan. “Through smart manufacturing, we have moved from a world where people manage machines to where machines, data, and analytics enable us to improve our productivity and experience continuous improvement. We have transformed our supply chain, and we are able to make decisions quickly across the entire spectrum of our operations, which is greatly improving customer experience.” He is also on a mission to create a truly “autonomous enterprise”. The group uses AI for almost everything, from budgeting and cashflow to understanding its engagement with people. Job descriptions are generated automatically. And the company has also developed a sophisticated knowledge center where lessons are learned from performance issues by simulating the operations involved. It acts as a useful training tool to improve staff performance. Human capital management is also automated, from talent acquisition to retirement. The group is even automating succession planning by identifying suitable candidates based on clear competencies and experiences. The system then automatically generates the ideal learning path. All these processes happen digitally without human intervention, in addition to leveraging AI to predict the organization’s dynamic and future behaviors. “This will enable the organization to drive even faster,” said Al-Obeikan. “Today we have self-drive cars and self-drive planes, so there is no reason why we can’t have autonomous enterprises too, even if this is hard for some to accept.” Enabling digital transformation Al-Obeikan admits the journey is not without its challenges. But he is clear that, for companies embarking on a digital transformation journey, it’s important to understand that the key to getting it right is not so much the availability of digital talent, but rather an organizational issue. He believes having the right people with a deep understanding of the processes within an organization is essential. “Many people talk about a lack of data scientists and coders as being a hindrance to digital transformation. However, it is not that,” he explained. “The big technology companies have put the tools in place to make that aspect of transforming your business so much cheaper, easier, and faster. “What you need to do is focus on harnessing the knowledge of your subject matter experts, the people that understand your business, your customer, and your supplier. Digitization involves cementing their knowledge so that if they leave, you don’t lose it. “In short, you need to get organized, understand all your verticals, connect all your assets, and then optimize them using machine learning. If this backbone of your business is not in order, you won’t be able to move forward.” What’s more, he emphasizes that digital transformation must come from the top. “The CEO has to lead the transformation. If the CEO, from an intellectual point of view, doesn’t have a deep understanding of what digital opportunity is, the threat is that you won’t digitize. As CEO, you need to be persistent and decisive about digital. You have to repeatedly deliver the message that digital is the strategy. Yes, you need to give people a chance to learn and to adapt — but if they don’t, then you must make the tough decision of letting them go.”
“We don’t measure our success by the flashy screens we have on the shop floor, we measure our success by real money on the bottom line”
Part of this learning for Al-Obeikan is training people in the practice of design thinking, the process of solving problems by prioritizing the customer’s needs above all else.
“After three years of hard work I now have the majority of my employees across the threshold,” he said. “There is no more debate in the company about the direction, or why we are doing this, or how we can win by using digital tools. Today, all questions have been answered, there is no doubt.”
Another challenge is how companies should scale transformation.
“Many companies can transform on a small scale, but it’s when they try to do it for the whole enterprise that they fail. There are a number of reasons for this from lack of connectivity of assets to a lack of deep process knowledge.”
Enabling other companies to be future-ready
Al-Obeikan’s commitment to harnessing the benefits of digital extends beyond OIG. Through the creation of a smart manufacturing platform and innovation hub, he is bringing the benefits of a digital enterprise to customers, partners, and companies across the Kingdom of Saudi Arabia and beyond.
OIG no longer sees itself as a product provider but as a solutions provider. It offers companies digital tools to simulate their operations before implementing them.
“Since the beginning of our transformation journey, we have been on a mission to give back to our country’s industrial business ecosystem,” said Al-Obeikan. “Through our innovative digital solutions, backed by world-renowned technologies, we are enabling them to be ready for a different tomorrow.”
Through smart manufacturing, we have moved from a world where people manage machines to where machines, data, and analytics enable us to improve our productivity and experience continuous improvement”
OIG is building software-as-a-service (SaaS) models for everything it does and has so far built more than 20 use cases. “We validate everything on our own shop floor. We identify the required data and once we have tried and tested it, we share our domain expertise with the market. Data scientists work hand-in-hand with subject matter experts to achieve this.”
Al-Obeikan says that being able to show companies digital transformation in action is incredibly useful.
“I meet two to three CEOs a week. It’s one thing to listen to a lecture, read a book, or go to a workshop on digital transformation, but another to see it happening with your own eyes. We bring people to see what we are doing in our operations at our Obeikan Knowledge Academy, which works as a research and development hub for Obeikan Group
“You have to repeatedly deliver the message that digital is the strategy. Yes, you need to give people a chance to learn and to adapt — but if they don’t, then you must make the tough decision of letting them go”
“We understand the pain of manufacturers. We have four decades of experience in producing products. Everyone in our value chain is involved in building our platform, from forklift drivers to the CFO. All my employees are responsible for challenging the platform, for dealing with bugs, and this has enabled us to mature at a rapid pace.”
Al-Obeikan said the success of his company’s digital transformation can be traced back to its entrepreneurial roots. “For us, it was easy to adopt the Silicon Valley approach in our business, that is to start small, scale fast, or fail fast,” he said.
What the company’s rapid digital transformation makes clear is that family businesses have the innate ability to self-innovate and create competitive advantage thanks to their entrepreneurial spirit and desire to build a lasting legacy. With the pace of technological change, the opportunities are enormous – provided businesses equip themselves to face the future.
Adding to the list of expansions conducted recently by the Saudi Obeikan Group in Egypt, the group signed a memorandum of understanding with the Industrial Modernisation Centre (IMC) in the Prescence of CEO of the Obeikan Investment Group, Eng. Abdallah Obeikan, the Minister of Trade and Industry, Ahmed Samir Saleh and the Director of the Public Authority for Industrial Development and the CEO of the IMC, Mohamed Abdel Karim, aiming to reinforce the digital transformation and keep up pace with the fourth industrial revolution.
Eng. Abdallah Obeikan: the group is keen on reinforcing the scope of cooperation with IMC for its known significant role in boosting the Egyptian industry in different sectors, our aim is to incorporate our innovative solutions among the centre’s efforts to give the industrial market in Egypt a competitive edge among the foreign markets.
This step has been precisely taken in the purpose of gearing the industry direction in Egypt towards fostering the digital transformation, adopting the latest cutting-edge solutions and the innovative technologies of the fourth industrial revolution, owing to the potential of these trends in boosting the economic growth and strengthening the competitive advantages of the industrial sector compared to the conventional means.
This memorandum is seen as the cornerstone of future cooperative programs, aiming specifically to accomplish digital transformation via the integration of the artificial intelligence technologies, the conduction of free studies and the provision of the necessary recommendations and suggestions intending to edge up the industries particularly the small and medium ones, which is part of Industrial Modernization Centre’s scope in different governorates.
The scope of the cooperation within the agreement encompasses digital transformation, automation, the Internet of Things, training programs, cadre preparation, an evaluation of the companies’ readiness for the digital transformation intervention, and the chances of collaborations in shoring up the expansion of digital solutions in the areas of public safety, supply chains and shipping.
About Obeikan Investment Group
Obeikan Investment Group is one of Saudi Arabia’s 100 largest companies, with more than 3,000 employees and operations in 16 countries. Obeikan is a global leader of industry across a diverse range of sectors, inclusive of manufacturing, technology, education and health. Pictured at the Future Minerals Forum is EUR Chairman, Tony Sage, Obeikan Group CEO, Eng. Abdallah Obeikan, His Excellency the Minister of Industry and Mineral Resources for Saudi Arabia Mr Bandar AlKhorayef, His Excellency the Vice Minister of Industry and Mineral Resources for Saudi Arabia Eng. Khalid AlMudaifer, with advisors Mr. Scott Taylor and Mr Abdulaziz AlRebdi
During this month, the group opened a headquarter for its digital subsidiary, Obeikan Digital Solutions (ODS) in Cairo to convey their expertise and beneficiate the Egyptian market with the cutting-edge solutions in the digital field.
About Industrial Modernisation Centre (IMC)
IMC was established aiming to support industrial enterprises and create a favourable business environment for the industrial sector, under the umbrella of the Ministry of Trade and Industry. Over years, IMC has worked to push the Egyptian industry sector towards global competition, as it has provided support to thousands of industrial facilities, through various packages of technical support services, programs and projects that have led to increased production, increased exports, reduced manufacturing costs, and improved competitiveness.
The move comes as part of the Group’s strategy to lead the digital transformation efforts in the MENA region
Eng. Abdallah Obeikan: The Group is committed to supporting the Egyptian market, believing in the country’s potential in the digital transformation sector. This is an integral part of Egypt’s Vision 2030 and aligns with Saudi Vision 2030.
Dr. Hesham Dinana: The company is cementing its presence in the local market through a series of strategic partnerships between ODS and government bodies during the coming period
Mohamed Khalil: Obeikan aims to be the “Business Partner of Choice” in digital transformation in manufacturing, education, human capital management (HCM), and enterprises across different market .
Cairo, January 18, 2023: Obeikan Investment Group (OIG) announced a significant expansion of its presence within the Egyptian market with the opening of the headquarters for its digital subsidiary, Obeikan Digital Solutions (ODS), in Cairo. The move is part of OIG’s strategy to provide the best-of-breed technologies to the business community, helping to drive digital transformation in the Egyptian market. The announcement came in a press conference attended by Eng. Abdallah Obeikan, CEO of Obeikan Investment Group, Dr. Hesham Dinana, Chairman of Obeikan Egypt, and Mohamed Khalil, Chief Commercial Officer of Obeikan Investment Group.
As part of its ambitious strategy to draw the digital transformation map in the Arab region, OIG aims to become the “Business Partner of Choice” in digital transformation in manufacturing, education, human capital management (HCM), and enterprises. Banking on the conglomerate’s 40+ years of experience, ODS is exporting the decades-long know-how coupled with the cutting-edge digital solutions and the product of its R&D investments in order to support organizational digital transformation in Egypt, in line with the country’s digital transformation strategy.
Obeikan Investment Group (OIG) is a family-run business, founded in 1982 by the Obeikan family. With headquarters in Riyadh, today, OIG has strong foothold in manufacturing, packaging, printing, supply chain, and education, and other diversified investments. On top of being the leading provider of fully integrated packaging solutions in the region, OIG had a growing focus on digital transformation; providing proven models that helps manufacturers and enterprises to achieve operational excellence with productivity-enhancing applications, and performance improvement end-to-end solutions.
On this occasion, Eng. Abdallah Obeikan, CEO of Obeikan Investment Group, stated that inaugurating the office of its flagship digital arm, Obeikan Digital Solutions, is part of the group’s expansion strategy and a continuation of the its 40+ years of experience in the KSA, in education, technology and other industries. “Today, OIG is in the forefront of manufacturing, packaging, printing, supply chain, and education. With more than 3,000 employees and USD 1.6 bn assets, OIG operates in 16 countries through 20 factories and 25 companies, achieving a whopping USD 1 bn sales volume and 22 bn packs manufactured annually,” he further added.
ODS operation in Egypt reflects the company’s commitment to the Egyptian market. “We believe in the country’s potential in the digital transformation sector. This is an integral part of Egypt’s Vision 2030 and aligns with Saudi Vision 2030. Egypt and Saudi Arabia have long-term mutual interests in different developmental and investment fields. Such strong bilateral relationships have prompted the group to expand in the Egyptian market through Obeikan Digital Solutions, to further enable the country’s digital transformation efforts as part of Egypt Vision 2030,” Obeikan added.
ODS operation in Egypt reflects the company’s commitment to the Egyptian market. “We believe in the country’s potential in the digital transformation sector. This is an integral part of Egypt’s Vision 2030 and aligns with Saudi Vision 2030. Egypt and Saudi Arabia have long-term mutual interests in different developmental and investment fields. Such strong bilateral relationships have prompted the group to expand in the Egyptian market through Obeikan Digital Solutions, to further enable the country’s digital transformation efforts as part of Egypt Vision 2030,” Obeikan added.
He went on to say that Obeikan Digital Solutions’ presence in Egypt speaks to the company’s dedication to the Egyptian market and the immense possibilities they see within the digital transformation space, thanks to the efforts made by H.E President Abdel Fattah El-Sisi. “The solid ties between Egypt and Saudi Arabia have encouraged the group to expand even further in the Egyptian market. This expansion comes in line with KSA’s strategy and efforts, particularly in digital transformation policies, led by H.H King Salman and H.H Crown Prince Mohammed bin Salman.” Obeikan highlighted.
At the helm of Obeikan Egypt, Dr. Hesham Dinana, commented on the ample chances existing in the digital arena in Egypt, which are being stimulated by the government’s efforts in establishing futuristic infrastructures that utilize digital and technology-savvy solutions, as seen in the construction of fourth generation cities. He went on to say that the company puts its decades of knowledge to use and aims to bring forth outstanding digital facilities including a wide range of services and solutions pertinent to various industries and sectors, in alignment with the Egyptian government’s “Digital Egypt” initiative.
The move seeks to further expand the company’s portfolio and customer-base. With the aim of fortifying its role in the Egyptian market, ODS plans to form partnerships with the government, such as an agreement with Industrial Modernization Centre (IMC) to drive the digital transformation in the manufacturing companies and provide industry 4.0 solutions to meet the needs and another MoU with Arab Academy, among other entities.
For his part, Mohamed Khalil, Chief Commercial Officer of Obeikan Investment Group, stated “Obeikan aspires to be the leading business partner in digital transformation in several key sectors namely; human capital management (HCM), industrial operations, manufacturing, enterprises, and education. We want to pass on over 40 years’ knowledge and digital expertise to promoting digital transformation of companies and governments in different markets that we operate in, utilizing our leadership in digital transformation R&D.”
“For the coming period, OIG is putting forth a strategy to grow its operations and expand its investments with an experienced portfolio of over forty years. Not only has OIG provided the latest learning management system (LMS) and student management system (SMS) in the education sector, OIG has emerged as the region’s preeminent for innovative digital services and complete solutions for HCM, industrial operations, manufacturing, enterprises, and education through digital transformation processes.” Khalil highlighted.
About Obeikan Investment Group (OIG)
Obeikan Investment Group (OIG) is a family-run business, founded in 1982 by the Obeikan family with a single commercial print shop. With headquarters in Riyadh, today, OIG has strong foothold in manufacturing, packaging, printing, supply chain, and education, and other diversified investments. On top of being the leading provider of fully integrated packaging solutions in the region, OIG had a growing focus on digital transformation.
Aiming to drive forward social and economic growth with the strength of local manufacturing excellence, the company is one of Saudi Arabia’s 100 largest companies, with USD 1 bn sales volume, USD 1.6 bn Assets and 22 bn packs manufactured annually. With more than 3,000 employees, OIG operates in 16 countries through 20 factories and 25 companies.
Today, OIG is harnessing the power of technology to become constantly better—more productive, more precise, more responsive—in everything we do. Now, digital transformation of our operations is the common imperative across all of our business lines, elevating our products and service to ever-higher levels, reducing production costs, and preserving the environment.
Amid the recent expansion moves conducted by the Saudi Obeikan Group and the launch of its activities in Egypt that is aiming to support different sectors in the Egyptian market to integrate digital technologies and innovation within their operations. Mr. Eng. Abdullah Obeikan, and Prof. Dr. Ismail Abdel Ghaffar Farag, President of the Arab Academy for Science, Technology and Maritime Transport signed a cooperation agreement in the field of supporting emerging companies in the industrial sectors and the smart manufacturing.
The agreement is signed between the Entrepreneurship Centre of the Academy and the Obeikan Digital Solutions Company, at the Academy’s headquarters in the Smart Village, in the presence of Ambassador Osama bin Ahmed Naqli, Ambassador of the Kingdom of Saudi Arabia in Cairo.
Ambassador Osama bin Ahmed Naqli expressed his bliss with such cooperation as it manifests the solid bond between the brothers in the Kingdom of Saudi Arabia and the Arab Republic of Egypt. He elaborated that one of the most significant targeted markets for the Saudi investors is the Egyptian market. And that innovation and the smart industry are crucial as they are considered the future for companies and major industrial entities, including the Obeikan Investment Group. Furthermore, the Ambassador highlighted the pioneering role of the Arab academy in reinforcing innovation and merging the industry with the scientific research.
Meanwhile, Engineer Abdullah Al Obeikan conveyed his gratitude from his side, for the current existence of the group in the Egyptian market, as it is visioned to be a major reliable reference in the digital transformation area and a key provider of integrated solutions in the field of education, innovation and digital solutions in the Mena and North Africa regions.
Obeikan mentioned also that the group is striving to provide various smart and integrated digital solutions in numerous sectors and fields, where the focal point precisely is to empower the industrial sector. Aiming to give tremendous support to entrepreneurs and start-ups via the group’s diversified programs and capabilities.
On the other hand, Dr. Ismail Abdel Ghaffar Farag, President of the Academy, expressed his welcome to the visit of the CEO of the group and the delegation accompanying him to the headquarters of the Academy, and the launch of Obeikan for its activities in Egypt.
Abdel Ghaffar pointed out that the academy supports the vision of the Egyptian state, to link the industrial sector with entrepreneurs and emerging companies with the aim of exploiting and directing youth energies towards projects and ideas that contribute in developing and finding cutting edge solutions to be able to cope with the most encountered challenges in the industrial sector, the most crucial of which is deepening local manufacturing and maximizing the utilization of local production inputs.
He also affirmed that the Arab Academy along with its various entities, branches, and Entrepreneurship Centre, don’t hesitate to exert any efforts intended to provide different means of support to Arab and Egyptian youth. The academy also keens on offering elements of growth and stability for the companies within the labour market, aiming to support them stand ahead of the competition.
It is worth highlighting that the main goal of the agreement is reinforcing the cooperation between the two parties and provide the needed technical support and assistance to entrepreneurs, start-ups and the innovative companies through rally competitions for students, start-ups and the hackathon, and also the axis of the smart manufacturing incubator, the competition’s applying terms will be announced soon.
On the margin of signing the agreement, a tour has been organized for the delegation of the Obeikan Group to the industrial laboratories in the academy, as well as the Entrepreneurship Centre, where some entrepreneurs and emerging companies, graduates and beneficiaries of the centre’s programs presented their project ideas.
European Lithium Limited (ASX: EUR, FRA:PF8, OTC: EULIF) (the Company) is pleased to advise that it has signed a non-binding Memorandum of Understanding (MoU) with Obeikan Investment Group (Obeikan) to build and operate a hydroxide plant in Saudi Arabia for the 100% owned Wolfsberg Lithium Project (Wolfsberg, Wolfsberg Project) in Austria. Tony Sage, EUR Chairman, commented: “The JV with Obeikan will allow EUR to focus its efforts on building the facilities to start mining concentrate in addition to benefiting from the JV opportunities. The huge energy cost savings will make Wolfsberg even more robust.” Eng. Abdallah Obeikan, CEO of Obeikan Investment Group, commented: “We are pleased to announce this MoU, a great step ahead in further strengthening the Saudi Australian economic collaboration. In line with Obeikan investment group strategy of accelerating sustainability within the energy field.” Under the MoU, EUR and Obeikan will work together to negotiate suitable commercial terms for the construction and operation of a hydroxide plant in Saudi Arabia, although no assurance is given that a binding agreement will be executed. Future Minerals Forum EUR were pleased to be in attendance at the Future Minerals Forum, held in Riyadh, Saudi Arabia, where they were welcomed by global mining industry leaders, governments, investors and other key players to foster and develop opportunities for long-lasting partnerships. About Obeikan Investment Group Obeikan Investment Group is one of Saudi Arabia’s 100 largest companies, with more than 3,000 employees and operations in 16 countries. Obeikan is a global leader of industry across a diverse range of sectors, inclusive of manufacturing, technology, education and health.
Pictured at the Future Minerals Forum is EUR Chairman, Tony Sage, Obeikan Group CEO, Eng. Abdallah Obeikan, His Excellency the Minister of Industry and Mineral Resources for Saudi Arabia Mr Bandar AlKhorayef, His Excellency the Vice Minister of Industry and Mineral Resources for Saudi Arabia Eng. Khalid AlMudaifer, with advisors Mr. Scott Taylor and Mr Abdulaziz AlRebdi
