Majaal on finding space

Majaal WarehousingCompany, a wholly-owned subsidiary of the First Bahrain Real Estate Development Company, embraces SMEs and revolutionises the country’s warehousing industry

Prior to 2007, small and medium enterprises (SME) in Bahrain struggled to find warehousing space. The domination of larger companies left them to use whatever remaining piece of land or space they could find and possibly afford. Majaal Warehousing Company saw this need and started to create that much-needed space.

Mr Amin Al Arrayed, the company’s managing director, shares with the International Metalworking News -Middle East & Africa (IMNE) how Majaal has lived up to its name, and how the company’s foresight has allowed it to define the industry and gain ground in terms of market share.

IMNE: How did the company start?

Al Arrayed: We wanted to diversify our portfolio of products. So, we conducted research studies on the SME sector, looked at all the companies that provide storages, and we found that, while larger companies have the capacity to invest on warehouses, the smaller ones had difficulties because they didn't have the resources, what was available to them was of poor quality, and they questioned if it was a good use of their capital. Some small companies even resorted to simply converting residential units into warehouses. Can you imagine that? We saw that and we wanted to fill the gap in supply. So, in 2007, we decided to invest in small and medium enterprise warehousing and started acquiring land in the Hidd industrial area, which is in the East of the country, near the transportation hubs. It is a very strategic location, as it is only 10 minutes from the airport and just 5 minutes from the Khalifa bin Salman new sea port.

IMNE: What does “Majaal” mean?

Al Arrayed: “Majaal” means “space” in Arabic. Since we are in the business of providing space, it makes a lot of sense. It is easy to pronounce in both English & Arabic, so it works well for the company.

IMNE: What previous experience did you have that made you confident you could succeed in this field?

Al Arrayed: I studied economics and banking and I started my career working for the Central Bank of Bahrain. I did research for the bank and served as superintendent for 5 years. Then I moved to a commercial bank (BBK) in Bahrain and worked as senior manager for the bank for a further 5 years. I specifically worked on the mortgage and prospective finance so that gave me a good insight into the real estate market. It allowed me to become knowledgeable in the real estate financing industry.

IMNE: Can you explain to me a bit the nature of your business? I understand that apart from being a focused developer and operator of industrial facilities, you also offer support services including business administration and logistics support, a 24/7 security, state-of-the-art ICT provisions, transportation assistance, and fit-out management services. How do all of these tie together?

Al Arrayed: Our basic offer is the space. The additional significant services you mentioned are what our tenants require on-site; services they identified they also need.

IMNE: How has Majaal’s own technology and expertise influenced and impacted the warehouse buildings in the Middle East?

Al Arrayed: We created a new category in warehousing, and that is the SMEs. We were the first to enter this sector and we pretty much defined it. In that sense, I believe we have made a significant impact on the market, as we have raised the bar in offering services. To share with you, we have recently been commissioned by a big landowner in the Bahrain Investment Wharf who has taken interest in our business model. So this shows how other people in the development sector are responding and showing interest in our business model.

IMNE: What steps are you taking then, from a management point of view to stay competitive and progressive? 

Al Arrayed: I think the most important thing is to continue to innovate. It is crucial to listen to our tenants and provide them with what they need. So we do surveys to understand their requirements, look at the ways we can further improve, and stay ahead of the curve. It is a continuous review process. So if you will notice, we tend to do projects in phases, instead of just one project in its entirety, because it allows us to get feedback from the clients and improve the services as we go or develop.

IMNE: I read that your company has signed a key sponsorship agreement with Hilal Conferences & Exhibitions (HCE) to participate at the Gulf Industry Fair 2014 next February. Is this the first time that you will be sponsoring the event? Will you keep up the public exposure, attend local international shows and stay out front in the media?

Al Arrayed: This is the third time that we are sponsoring the Gulf Industry Fair. Ever since we opened our doors, we have been involved in this event because it is important to showcase our products. The fair provides that avenue; it gathers investors from the Gulf Cooperation Council or the GCC, which is our market. We want to expand our market in the bloc, and through the fair, we gain access to investors and tenants who want to avail the services we provide or the space.

IMNE: In what areas, or departments, will you continue to invest?

Al Arrayed: Well, we continue to invest on the offers or services we currently provide. It is not so much about creating a new product but enhancing what we have, the existing departments in the business. It is an ongoing process of upgrades.

IMNE: Do you currently have any joint ventures from and R&D or marketing perspective with foreign companies? Would you entertain this idea if you don’t at present?

Al Arrayed: Yes. We have a number of joint ventures. We do have tenants from other countries and we have started partnerships with landowners in the head area. One is with Mazaya Holdings, which is a Kuwaiti company.

IMNE: How has the company progressed over the years?

Al Arrayed: We have made significant growth. We began acquiring land in 2007, where we acquired two plots each of 20,000 square metres. Then, we added another 20,000 square metres in 2008,. So, we currently have 60,000 square metres in total.

IMNE: How involved is the company in the Middle East’s warehouse buildings?

Al Arrayed: We are heavily investing in the warehousing and industrial business. To my knowledge, we are the first company in the GCC to focus on SME warehousing.

IMNE: To sum up, what would you say were the keys to Majaal’s ongoing success story?

Al Arrayed: I believe the key is the fact that Majaal is very flexible in terms of offering its space. Since we also cater to the small and medium enterprises, apart from the large companies, we can provide a space of as small as 250 square metres to many thousands of square metres. To illustrate that point, one of our clients is the local distributor of Proctor and Gamble and it occupies 10,000 square metres. And we also offer space to a small bakery and it occupies 250 square metres. What I mean to say is, everyone can find a space in our units. And that allows us to take a big share of the market.

By: Mia Aureus