This year coincides with the fifty anniversary of founding Alkhorayef Commercial House, established by our father Sheikh Abdullah Albrahim Almohammed Alkhorayef, may Allah have mercy upon him.

He was trading in food stuffs, at that time. But through time, the activity expanded to a tile plant and an ice plant, beside the drilling machines and agricultural lands, as a result of the agricultural boom at that time. Later things settled on importing and selling agricultural equipments including pumps, engines, etc.

The father, may Allah have mercy upon him, died on the 2nd of Safar, 1395H, due to a disease that did not grant him a long respite. He was well-known for his generosity, tolerance, love to do good deeds, and help the needy.

One of his most important qualities was his absolute trust in the people around him, which acquired him the love of those who knew him or interacted with him. He inherited us a bright name for the family, we still making use of it till now, and built us a strong commercial base.

The big brother, Sheikh Ibrahim Alkhorayef - may Allah have mercy upon him - completed the glorious march and brought together the small family, turned its businesses into a bigger entity, and established the present Abdullah Ibrahim Alkhorayef Sons Company.

The Company grew bigger during his time and diversified its businesses and activities according to the strategy of diversification of businesses and sources of income to include activities other than the agricultural equipment. Factories for the production of agricultural, petrol pumping, and paper equipment were built.

Sheikh Ibrahim was reputed for the good manners, gentleness, kindness, flexibility, and love to do good deeds. He died in 1406H (1985).

After the death of brother Ibrahim, may Allah have mercy upon him, I continued with my brothers the expansion of the Group’s activities till they reached the present form, with grace of Allah Almighty and efforts of the brothers, may Allah protect them.

We now have a comprehensive evaluation to our businesses and relations with each other and with others. We pay attention to each case that we esteem necessary to restore or develop.

The third generation of the founder’s grandsons became more active and showed love to continue in this secured deep-rooted entity. I see in them exerted efforts and love to continue, develop, and stay united to maintain this entity.

Our goal is to satisfy our customers with all possible means and ways. I hope the march would go on for those who would write an article tilted “ a march of one (or two) hundred years”. We are no less than any other family businesses that preceded us and which continued for hundreds of years.

I hope, before I pass away, I would be satisfied and delighted of the founder’s achievements and achievements of the sons and grandsons who proceeded along the same road.

I salute all employees in this strong edifice and say to everyone of them “you owe us all appreciation for you efforts and loyalty.”

Fifty Years Since the Foundation of Alkhorayef Commercial House

By: Abdulrahman bin Abdullah AlkhorayefChairman of the board of directors

Editorial

Issue 26, Jan 2006 �

Editor - in - Chief

Saud Abdulaziz Alswailem

Editing Supervisor

Mohammed M. Al-Shihri

Chairman Board of DirectorsAbdulrahman Abdullah AlkhorayefAbdulrahman Abdullah Alkhorayef

To strive for leadership in all its business activities by supplying quality products along with professional after-sales support through its carefully selected and highly professional employees and to play a vital role in technology transfer and environmental protection.

Alkhorayef’s MissionAlkhorayef’s Mission

Abdullah Ibrahim Alkhorayef Sons CompanyRiyadh 11411 P. O. Box 305Tel:(+9661)4351479-4351480 Fax:(+9661)4358852

Alkhorayef CommercialCompany (Ltd.)Riyadh 11411 P. O. Box 305Tel:(+9661) 4955452 Fax:(+9661) 4950261

Alkhorayef Industries Company Ltd.Riyadh 11551 P. O. Box 42852Tel: (+9661) 2651124 - 2652057 Fax: (+9961) 2652348

Alkhorayef AgriculturalProjects CompanyRiyadh 11583 P. O. Box 53390Tel:(+9661) 4351479-4351480 Fax:(+9661) 4352968

Alkhorayef Operation& Maintenance CompanyRiyadh 11595 P. O. Box 62637Tel:(+9661) 4351479 Fax:(+9661) 4357410

Saudi Parts Center Co.Riyadh 11551 P. O. Box 42679Tel:(+9661) 4950917-4953479Fax:(+9661) 4953351

AlNakhil PaperIndustries CompanyRiyadh 11416 P. O. Box 22815Tel: (+9661) 2650201 Fax:(+9661) 2650182

Saudi Installment HouseRiyadh 11451 P. O. Box 18331Tel: (+9661) 4925000 Fax:(+9661) 4922570

Alkhorayef ManagementServices (AMS)Riyadh 11411 P. O. Box 305Tel:(+9661) 4600858 Fax:(+9661) 4600815

Vision Statement Our Vision to reach a leading position in all the fields of our scope activity through our comprehensive solutions systems that satisfy all our customers’requirements.

Publisher

P.O.Box 26450 Riyadh 11486Tel: 4193123 - 4192153

Fax: 4192640

All correspondents should be sent to Editor -in-Chief, G.M., Human Resources Department

P. O. Box 305, Riyadh 11411Tel: 01/4955452 Fax: 01/4950261

E.Mail: sswailem@alkhorayef.com.

View published in Alkhorayef bulletin express only their writers and the Bulletin shall hold no responsibility towards them.

Trans Orient ModernMachinery Co. Head Office:Riyadh 11412 P. O. Box 4605Tel: (+9661) 4786161 Fax:(+9661) 4775439

Contents

5

8

18

25

Sheikh Abdul Rahman Alkhorayef Talks to Al-Iqtisadiyah

HE Minister of Agriculture Inaugurates Alkhorayef Agricultural Exhibition

Images and Stances from the Living Memory

Abdullah Ibrahim Alkhorayef Sons Company

Longing to the PastFifty years have elapsed since Alkhorayef Group was first established. It is undoubtedly an important station that deserves us to stop at it and contemplate the realized achievements and successes that, thank Allah, continued to half a century.

My Father, May Allah have mercy upon him, and his Experience in Life (12)

Men’s horizons and dreams in looking at the future are not alike. And what everyone builds in his imagination never resembles the others. Attitudes may be converging, but the perception of what each one wants in the future is different.

Clarity of Vision and Strategy is the Road to

SuccessFifty years ago Alkhorayef’s march was started in commercial business with big ambitions realized by grace of Allah and clarity of vision from the very beginning of this national economic edifice which is still going surefooted.

Alkhorayef and Industry Horizons

The (Western) pump knows as (Alkhorayefiyah) narrates the story of the whole Alkhorayef Group of Companies (AIA) in the industry world, from complete importing of all parts to 100% manufacturing of them in the Kingdom of Saudi Arabia.

12

14 15 16

News

Engr. Mohammed Alkhorayef Receives a Plaque from Minister of Water and Electricity

The Ministry of Water & Electricity held in Riyadh Intercontinental Hotel, an inauguration and rationalization ceremony directed to the private sector and sponsored by HE engineer Abdullah bin Abdulrahman Al-Hussain, Minister of Water. The Minister handed over engineer Mohammed bin Abdullah Alkhorayef, president and CEO

Alkhorayef Participates in the 52nd Session of Damascus International Exhibition

Sponsored by President Bashar Al-Asad, President of Syria Arab Republic, the 52nd session of Damascus International Exhibition was inaugurated where Alkhorayef Group of Companies (AIA) participated in the fair.

Mr. Naji atri, Syrian Prime Minister, and Mr. Muneeb Saem Al-Dahr, Syrian Minister of Energy, and Dr. A’mer Lutfi, Syrian Minister of Economy and Commerce, paid a visit to Alkhorayef exhibition, which gained the admiration of all

for manufacturing affairs, a plaque as a token of thanks and appreciation for the distinguished support and sponsorship of Alkhorayef Group of Companies (official sponsor) to the inauguration ceremony of the third stage of the National Campaign for Awareness and Rationalization of Private Sector.

visitors. Alkhorayef Group of Companies also held,

on the fringes of the exhibition, a number of panels and lectures about the application of modern irrigation systems included a panel in the Research Center of the Ministry of Irrigation in Damascus, a lecture in the branch of the Ministry of Irrigation in Halab, in addition to a number of visits and field rounds in many regions in Syria Arab Republic.

� Issue 26, Jan 2006

HRH Prince Salman bin Abdulaziz, Governor of Riyadh Region and Head of the Region’s Council issued an instruction to all provinces of Riyadh Region showing the resolution of HRH Minister of Interior No. (6811) dated (18/11/1426H) that included the appointment of local councils’ members for the development of provinces and centers in all Riyadh Region for the period starting from 23/11/1426H to 23/11/1430H., where HE Mr. Saud bin Abdulaziz Alswailem, General Manager of AIA’s Human Resources Department, was appointed member in Thadiq Province Council.

On this occasion, the editing staff of Alkhorayef magazine, on behalf of Alkhorayef Group of Companies’ employees, is delighted to congratulate him sincerely and wish him continuous success.

Asaad Joudah PromotedEngineer Mohammed bin Abdullah

Alkhorayef, chairman of the board of directors of Alkhorayef International for Equipment (AIE) issued in 01/01/2006 a resolution appointing HE Mr. Asaad Mahmoud Joudah general manager of AIF, according to the job description prepared for that and starting from the date of the resolution.

Here we all congratulate Abu Mahmoud and wish him success.

Mr. Asaad MahmoudJoudah

Alswailem a Member in Thadiq Province Council

Saud A. Al-SuwailemHuman Resources Manager

Engineer Mohammed bin Abdullah Alkhorayef, Chairman of Alkhorayef International for Equipment (AIE), issued on 01/02/2006 a resolution assigning HE Mr. Fayez Mahmoud Al-Anie Deputy Chairman, responsible for, and supervisor of sales and AIE’s international branches as of the date of the resolution. Congratulations and best wishes of success.

Mr. Fayez Al-Anie Promoted

Al-Iqtisadiyah newspaper published in its edition no. (4447) dated 12/11/1426H (14/12/2005) a lengthy dialogue with HE Sheikh Abdulrahman bin Abdullah Alkhorayef, Chairman of AIA’s board of directors, in which he spoke about the history and current status of Alkhorayef Group of Companies (AIA) and his future vision for the Group. He also tackled the economic reforms and that it should include the administrative system, tenders and declaration of successful bidders, increase of banks, and expansion of insurance base.His Excellency had also mentioned that bureaucracy and absence of regulations were two obstacles in the economic development and should be eliminated. About the family companies, he said that the family companies owned about 80% of the group of

Sheikh Abdulrahman Talks to Al-Iqtisadiyahcompanies operation in the country.Concerning trends of Alkhorayef Group of Companies, Sheikh Abdulrahman Alkhorayef said that they had a trend to make the Group’s most future investments in oil, manufacturing, and water. He also mentioned that AIA’s industries had reached forty countries around the world e.g. USA. The Group had also managed to invade a lot of the international markets e.g. China, Korea, and Argentina. Alkhorayef offices are now in different parts of the world.

His Excellency concluded the interview by mentioning the agricultural sector and that despite the difficulties it encountered; it constituted fifth of the national domestic product (NDP) of the country. He also said: “if you do not produce your food by yourself, then you are poor.”

Sheikh Abdulrahman Alkhorayef

Mr. Fayez Mahmoud Al-Anie

Issue 26, Jan 2006 �

News

A Contract Signed with Watania

Project in JoufA contract was signed with

Watania Project in Jouf for the import of 20 center pivot irrigation systems (ALMUTAWWAR), within the framework of the new field expansion in the project.

The signing was celebrated in the expansion area in Jouf and attended by a number of division managers in Watania Company.

Saq Group Visits Alkhorayef Factories

A group of general managers of big agricultural companies (Saq Group) paid a visit to Alkhorayef factories to get acquainted with the latest products of Alkhorayef Industries Co. Ltd. that include pumps, gearboxes, center pivot irrigation systems, electric generators, control panels, and tubes.

Signing Contract with Al-Suhaiman

A contract was signed with HE Mr. Mohammed Abdulrahman Al-Suhaiman to import pumps and Volvo engines (48 groups) for use in one of the agricultural projects in Basita – Jouf and Qassim region.

6 Issue 26, Jan 2006

Installing THEKEY System in

NADEC Co.The THEKEY system was

installed, thank God, in NADEC Project in Haradh. It automatically controls the irrigation system (center pivot irrigation system – pump and engine) to achieve the minimum consumption of water; under the policy of improving the agricultural production level.

The operation was successfully accomplished in the presence of head of Research & Development Section in the Company, product manager of Irrigation Systems, and a number of NADEC project engineers.

It worth mentioning, that this system has been installed in many other companies.

HE Sheikh Bandar Alkhorayef was selected member of the board of directors of Al-Washkan Company Ltd., proprietor of the first low-priced Saudi Air Company under the name of “Sama”.Editing staff of Alkhorayef bulletin congratulates “Abu Ibrahim” on behalf of Alkhorayef Group of Companies (AIA) and wishing him more success and progress.

Bandar Alkhorayef Member of Board of Directors of Sama Aviation

Issue 26, Jan 2006 �

� Issue 2�, Nov 200�

Reportage

HE Minister of Agriculture Inaugurates

Alkhorayef Biggest Agricultural Exhibition

In a big ceremony that comprised many of those concerned with agriculture from inside and outside the Kingdom, HE Dr. Fahd Bilghinaim, Minister of Agriculture, accompanied by Sheikh Abdulrahman Alkhorayef, inaugurated the Agricultural Exhibition of 2005. Starting with Alkhorayef pavilion his Excellency and his companions lifted the curtain and announced the launch of the (THEKEY) product, which will make a revolution in the world of managing irrigation water as an integrated system.

Alkhorayef Group spent Fifty years in the agricultural sector, during which it provided many products and was the development leader in the field of manufacturing agricultural equipment such as center pivot irrigation systems, pumps, gearboxes, and control panels.

Alkhorayef Group succeeded in these fields through integrated teams that had been working for the provision of developed engineering solutions. That policy allowed for the start of nationalization of technology and moved through the research section to develop technologies suitable for targeted markets. Alkhorayef Group is proudly planning to export some technologies to outside the Kingdom to enhance the international position reached by our products. It started with the countries of the Middle East, the West, near East, Australia, and New Zealand and exported

many agricultural and service solutions in order to become a name worthy of trust.

After receiving a team of specialists in all fields of work in the Company, we started a tour in the exhibition which comprised several sections. The first to begin with is:

Local Manufacturing Equipment Stand (Alkhorayef Industries Company Ltd.):

THEKEY SystemThe exhibition that provided the

automatic control of center pivot irrigation systems, took into the account the quality of soil, water, crop, surrounding atmospheric conditions, and other influencing factors that affect the quality of crop. it also included the control of the diesel engine through a panel with a touch-screen in Arabic and English characterized by easy use that amazingly led - in its preliminary experiments in many agricultural projects - to saving water, energy, and keeping up with the general policy of saving water and maintaining high productivity.

The show also included illustrative models for many parts of ALMUTAWWAR center pivot irrigation system, many other types of modern sprinklers that save energy and provide accurate irrigation applications suitable for all types of crops, and Permabite pipes lined with polyethylene of various measures suitable for many irrigation applications and

use with hot and chilly water. The pipes were also tested with sea water. The Company guarantees these pipes for ten years. The pipes positively affect saving of water and energy consumed. The quality of crop is kept through the aid of specialized team in irrigation systems and through transferring technical irrigation expertise to customers.

Western Turbine Pumps and Randolph Gear Boxes:

They were present in the exhibition. The show included various models of pumps that cover requirements of water pumping to different applications of deep water lifting.

� Issue 26, Jan 2006

Issue 2�, Nov 200� �

Ultra pipesThey were available in various

forms of lifting pumps suitable for different water types. The most prominent pipes were those lined with high density polyethylene and which represented the latest technologies for use with water of high chemical content causing rust and erosion of iron. The double leakage proof pipes, pipes painted with erosion proof, and pipes manufactured of rust proof iron were also displayed.

Gulf Power Electric Generators:They were available in

different powers of 32 – 2500 KVA and based on the best international diesel engines such

as John Deere, Volvo Penta, and Comenz, which were assembled with Stamford electric generators in Alkhorayef Industries Co., to suit may applications that included the continuous or reserve electric covering. They were supported by a wide range of power and control panels such as automatic switches and panels of parallel generating units.

Industrial Pumps:They were for many applications

starting from different liquids transference to sewerage projects, and were assembled to suit different applications and customer needs. They were from Cornel International Company, the leader in the fields of

different liquids drainage. They were either electrically operated with US motors, John Deere, or Volvo Penta diesel engines according to the required pump power; in addition to different control systems whether the individual control or within central control chambers of stations.

John Deere Ring Equipment Stand:

The equipment stand of the famous John Deere included many agricultural plows for different uses such as gardens and open field with horse powers of 50 – 375. They implemented the latest technologies in engines and power transmission to provide the highest efficiency and

Issue 26, Jan 2006 �

productivity standard of its kind. Besides, there were equipment for soil preparation, cultivation, and harvest of fodders from John Deere. The famous Brazilian Nojera equipment for treating forage and seeds for poultry and livestock were also displayed.

Volvo Penta Power Stand:With a high level delegation

from Swedish Volvo Penta Company we came to the engines stand of famous Volvo Penta, which launched this year the latest technologies in engine control. It took into the account the easy maintenance, high saving of diesel consumption, and analysis of technical faults that help save time and effort in maintenance.

The horse powers were of 102 - 653 to meet different agricultural and industrial applications; beside a capability of controlling it as a separate unit or within a group remotely controlled by a central control chamber.

US Electric Motors:There were many choices

from US Motors to suit all electric applications whether horizontal or vertical engines with different speeds and designs i.e. industrial or agricultural with powers starting from ¼ to 2500 hp. These engines were limitless and could be designed according to the need, required application, and operating current.

After-sale-service Stand:Many programs and sale

offers related to spare parts of all equipment marketed by Alkhorayef were presented. Many specialists provided demonstrations for spare parts to clarify merits of using these programs. The maintenance provided the latest systems for analyzing faults of ring equipment, diesel engines, and demonstrated techniques of use. There were programs of minor or general maintenance for the different equipment, which emphasized the merits of maintenance works in the Company including the warranty for maintenance and spare parts provided at major maintenance works in Alkhorayef’s workshops spread in all regions of the Kingdom.

Reportage

�0 Issue 26, Jan 2006

Sheikh Abdullah Alkhorayef (may Allah have mercy upon him) founder of Alkhorayef Group of

Companies (AIA)

Spicial file

My Father, May Allah have mercy upon him, and his Experience in Life

Future horizons and dreams of men aren’t the same and never alike in imagination. Attitudes may be close, but everyone’s perception to what he wants in the future is different. I say this while I am trying to read what was going in my father’s mind since he was a young boy in Huraimla plowing, seeding, and harvesting - as others who shared him this trade which drew grooves on their hands that were only later possible to erase and left their bare feet with fissures in the clayey soil that needed persistent and continuous work to flood workers with its blessings. The tough hands were familiar with the axe stick, plow’s arm, and sickle’s handle.

That was a unique sign for the worker’s effort who loved life free of desperation or grumbling. People are created on earth to work and produce for the higher aim which Allah Almighty says: “I have only created jinn and humans for worshipping.” And this aim will never be achieved by laziness. The aim needs a vehicle that leads to it. Allah Almighty says: “ work and Allah, his Prophet, and believers will see thy work.” Laziness is disappointing, but what amuses a human being is that he is free on earth and has the choice. A man may find himself involved in a work that he dislikes. As a result he complains and growls while working, curses his luck, becomes discontented of those around him, and does not achieve the work properly. This is indeed the despair itself that negates the freedom Allah has granted human beings.

�2 Issue 26, Jan 2006

Any work should be given the proper effort, though there is a room for choice and change. Thus I imagined my father who had the hand of a craftsman and the wide thought. He was, to anyone who witnessed him, a blaze of activity in the field. Or might be said that he was created for that work and that work was created for him. But if you looked at that active man a bit further than the mere visual perception, went deep through his clear eyes to the core of his thinking and what he drew – through his silence or talk - and through deep faithful thinking in the creations of Allah, you would see that he, may Allah have mercy upon him, was farther than could be limited by the small field. And thus is said that aspirations of men are equal to their determination. Had Abdulmotalab, the grandfather of Prophet Mohammed (PBUH), not thought of providing and ensuring water for the pilgrims? Had he not been thinking many times about Zam Zam well? Where was it located? And as a result the vision equaled the thinking.

My father, may Allah have mercy upon him, had a real vision from Allah Almighty. He hastened to someone whom he could trust in interpreting it. Hence was the promise and endeavor. Hadn’t Allah Almighty said in the Holy Quran that:” he who would fear Allah would render him an outlet and provide him with the means of subsistence unexpectedly?”

Huraimla is excused if it only ensures us with the minimum subsistence. For that is its capacity. The late Imam Al-Shafiae, may Allah have mercy upon him, said that Allah Almighty had bestowed five benefits upon traveling. My father’s destination was Riyadh, the evolving capital that started to occupy its suitable place as a bright capital for the Kingdom of Saudi Arabia.

My father’s epic, of seriousness and work that depended on Allah first and foremost, started from Riyadh. He worked and diversified his ways in seeking subsistence. He worked as a salesman for some kinds of foods, some agricultural tools, and guarantor to drilling artesian wells. The imported mosaic tiles amazed him. He established a simple plant for the floor tiles at a time when people were in the starting stage of shift in the housing construction. The floor tile was a popular trade and demanded. As a result my father’s wealth, thank Allah, grew bigger.

Despite the diversity of works, my father did not forget the importance of agriculture in the country’s economy and the growing need for the agricultural products. It was his first craft; why not provide his services to it and encourage it? But that should be in a modern style and by using technologies in this filed. Consequently, he was interested in agricultural machinery, engines for lifting water from artesian wells, and other tools that help ease agricultural work. It is time for the traditional water engines to relax, be a symbol of a past era in which they performed their suitable role, occupy their place in the history museum, keep silence forever, and be replaced by the roaring modern machinery in lifting water efficiently. The inspiring constructor loved that work as if he and the work were looking for each other. They both met on a good time.

The past period of work was fluctuating and was a period of experience for both market, people, and the surrounding milieu. That period produced an expert and a knowledgeable captain. From here emerged our successful investment policy that acquired a wide reputation as to the quality of work, machines, honest dealing, and faithful achievement. That success was not accidental, but a result of my father’s religious personality that put things in their right places.

All that effort my father exerted had never made him forget his religious tasks and obligations. He was neither away from religious scholars nor their advices. The religious character was reflected on the education within the house and honest interaction with people outside. This religious attitude forced him to send my brother Saad and me, at the age of eleven and nine consecutively, to seek

knowledge in Dar Al-Hadith in Al-Madinah Al-Munawarah. It was a hard experience for both of us at that early age. Our father wants us to be religious scholars and bearers of this honorable science.

Despite my father’s love to religious scholars, he was open to science, invention, and what other nations had, which could benefit us and our nation. He wanted us to learn their languages and acquire their knowledge. The Prophets tradition goes:” wisdom is the lost thing of the believer. Wherever he finds it he is the most worthy of it.”

My father sent me to learn English language in Britain and continue studies in administrative sciences in USA. Honest interaction was his slogan that he never deviated from. Besides, he was tolerant and never harsh on debtors. He awaits them for long periods and might cancel debt altogether if they were destitute. He behaved according to the Prophet’s tradition that says:” a man, from the past nations, was subjected to accounting and he was found to have nothing of the good deeds except that he was rich, used to mingle with people, and ordered his servants to leave those could not pay the debt. Allah Almighty said: “We are most worthy of that deed. Let him go.”

My father, may Allah have mercy upon him, was our good example in work, interaction with people, and in interaction in the house with wife and children. We were brought up on mutual love and respect, honesty, and eating and drinking from Halal “permissible” money. The fruit of his raising and advices is now; thank Allah, clear in the cohesion of our family. His system proceeded with his sons. My brother Ibrahim, may Allah have mercy upon him, had led the establishment and my brother Abdulrahman is now following suit. The establishment grew bigger and became as a deep- rooted tree with branches high in the sky, shady, and fruitful.

May Allah have mercy upon my father and enters him paradise. These emotions and recollections were only a little of what I have in my memory. My father’s school is life’s school with many stations. It is said that “torrential rains begin with a drop.”

By: Hamad bin Abdullah Alkhorayef

Chairman of the board of directors of the Saudi Installment House

Issue 26, Jan 2006 �3

Fifty years ago Alkhorayef march was started in the commercial work with big ambitions realized by the success from Allah Almighty and clarity of vision from the very beginning.

The key of success was the satisfaction of customer requirements with a big concern about the quality of products and services provided by a strong and honest work team, which was the key of success to this national economic edifice which still carries on surefooted on the system of the founder father Abdullah bin Ibrahim Alkhorayef, May Allah have mercy upon him.

Partners in Alkhorayef Group were keen to apply and maintain the system; in addition to diversify activities to make use of the big experiences acquired for entering new fields. So focus was on the agricultural sector, which was the core until the Group was able, by the grace of Allah, to meet customer requirements in that sector through provision of all technologies and high-quality services starting from grading the land up to the harvest. It later transferred and nationalized knowledge and technology by producing and developing irrigation systems needed by the Kingdom to suit our local environment.

In 1986, after the expansion in the stations of saline water conversion and electricity and basic service networks, the Group hurried to establish Alkhorayef Operation & Maintenance Company (AOMC) to satisfy the market’s need for such companies that supervise operation, maintenance, and water distribution processes of these stations and networks.

Due to that system of expansion, the rest of the Group’s companies were established such as Saudi Parts Center Co. (SPCC), Saudi Installation House (SIH), Trans Orient Modern Machinery Co. (TOMMC) for printing machinery and equipment, and AlNakhil Paper Industries Company (APIC). The Group also entered many fields till its products and services covered the manufacturing and marketing of agricultural systems and equipment, operation and maintenance, lubricants, systems and equipment, land and marine sports, oil production pumps, oil fields, reverse engineering, establishment and operation of saline water conversion and purification stations, and production of electricity, paper, pipes, and power transport lines.

As values are one of the Group’s strategy components that include the development of market communities where the Group works in and transfers technology to, this strategy has made the Group a main partner in these markets and enabled it to spread geographically. Not only had that, but the name of Alkhorayef become a synonym to leadership wherever mentioned.

Now Alkhorayef’s products and investments are in USA, China, Russia, Europe, Africa, and Australia; and the Group is able to compete strongly in these regional and international markets.

As here is no ample room to talk about the Group and its activities and work strategies due to the many articles included in this edition that covered other important aspects, I thought of focusing – in this quick report – on the importance of clarity of vision and strategy as a road to success, which we, in the Group, are very concerned about it.

Our ambitions are endless. So we believe that what is coming conceives a lot, Allah willing. We will be keen to continue the geographical spread, make use of our capabilities and manufacturing experiences, and transfer them to communities we are working in. We will also continue in the product diversification processes; in addition to other new products and services, especially in oil fields services, and focus on technologies developed by the Group, equipment manufactured in the Company’s establishments, and bear in mind the responsibility of trust our customers placed in us throughout the world.

Finally, I confirm the complete keenness of our employees through the preparation of work environment that enables them to perform the jobs assigned to them in convenience and reassurance, and raising the level of their professional skills through internal and external training programs starting from our deep belief that human capital is the real wealth.

Clarity of Vision and Strategy is the Road to Success

Saad bin Abdullah Alkhorayef,

Chairman and CEO of AlKhorayef Commercial Company (ACC)

Spicial file

�� Issue 26, Jan 2006

In the middle of Alkhorayef’s march that lasted for half a century, the Group took off towards the industry world. If we cast a look at the first product, which was the well-known Western pump, introduced by the founder, we will find that it narrates the tale of the entire Group in the industry world from a complete import of all parts to the comprehensive manufacturing, amounting to 100%, in the Kingdom of Saudi Arabia and exports to more than thirty countries in the world.

Under the encouragement and balanced support from the government of the Kingdom and a vision towards the future with the strategic option of industry, the industry sector was built for the Group on three pillars:

1. The market and production size are the basic motives to evaluate a competent industry for competition with others.

2. Technology transfer, comprehension, and development through strategic partnership and use of modern technology in production.

3. Efficient management and qualified labor force able to interact and cope with technology must be provided.

Soon after, the industry played a leading and pivotal role in developing and enhancing the Group’s position for competition inside the market.

The vertical integration played the most prominent role through raising the rate of the product’s added value to rates of 70% to 100%, according to the product, by either adding new production lines or procuring raw materials from local sources.

As a result, the cost was reduced and ability to enter the competition in the local and international market was raised.

Thanks to the industry that boosted the first determination to head for neighboring markets such as Egypt, Iraq, Libya, Sudan, and Iran.

Among the various challenges we faced and which were enjoyable, was the Iraqi market at the peak of its boom, during the UN food for oil program. After the Group introduced the center pivot irrigation technology through experimental models that proved efficient and beneficial for the Iraqi farmer, we gained export contracts that were more than the capacity of our factories for years, let alone the demand of the local market and other markets.

Our technical partner at that time was keen that we should not import more than the capacity of the factory so that he could satisfy the shortage from his other factories around the world. To us that was a catastrophe and a loss not only in the existing contracts, but in loosing the opportunity to enhance the competitive ability and satisfy future requirements.

Thank Allah; and due to efforts of workers, we were able to change some production lines to raise production capacity and improve quality. We also automated some manual operations in addition to adopting an effective program of incentives.

All that hiked the production capacity to three times, enabled us to fulfill all contracts, and satisfy demands of other markets without the need to import from other factories of the technical partner; and with a limited cost compared to other costs of import.

Thus we were able to own the technology, develop it, and launch new products the last of which was “Thekey”- automatic control system linked to meteorological station to run the irrigation process and reduce water and energy consumption to more than 40%.

The Group’s works were completed by the integrated building of different industries such as petrol pump industry and the only foundry in the Middle East to reengineer spare parts used in desalination and petrochemical stations. Thank Allah; we were also able to enter big international markets such as USA, Australia, New Zealand, Spain, and Portugal.

By the Kingdom of Saudi Arabia joining the World Trade Organization (WTO) at the end of December, 2005, our strategy will be heading, by the help of Allah, towards enhancing our presence in the main markets and entering new and promising markets such as those of South American countries: Brazil, Argentina, and Venezuela through strategic partnerships there.

To enhance our competitive ability the Group, Allah willing, will open offices in China to support the production base of the Groups’ factories; in addition to introduction of new products based on the aforementioned three main pillars.

Alkhorayef and Horizons of Industry

By: Mohammed bin Abdullah Alkhorayef,

President and CEO for Manufacturing Affairs

Issue 26, Jan 2006 ��

But I will try here to focus on my late father Shaikh Ibrahim AlKhorayef’s role and most importantly his achievements in AlKhorayef’s journey. When he started at an early stage helping his father Shaikh Abdullah AlKhorayef along with my uncle Abdulrahman, he was mostly sent by his father for field trips to farms following up projects which enhanced his experience and further his love for farming. His role of leadership started after the death of my grandfathe Sh. Abdulllah at at the begining of 1975 and from that time till the time of his death December 1985 a period which didn’t exceed eleven years he was able - with the help of uncle Abdulrahman and the rest of uncles, later- to realize many achievements.

That period included the most important years experienced by the Group, during which it achieved unprecedented rates of growth. The most important achievements were:

He was able to capture opportunities related to government support for the agricultural sector and exploited these opportunities in the best possible manner to increase the Group’s market share in the agricultural sector.

- He established Abdullah Ibrahim AlKhorayef Sons Company (AIA) which was begining of AlKhorayef Group as we see it today.

- The Group achieved in 1983 the hihgest sales fugure that never repeated till 1992 when the activities expanded, compared to 1983 which was confined in the agricultural sector.

- The Group obtained, in that period, the right of representing the most important agencies such as Valmont and John Deere.

- Plants were established for the production of the irrigation systems and pumps.

- SABA company was established, which served the Group’s activity in importing from USA and, later include a number of companies.

- Constructing the present site in Kharj road which contains AlKhorayef Commerical Company, Saudi Parts

Center Co., and international sales.- He recognized the importance of Information

Technology at early stage and decided to start the MIS system for the Group in 1981 by investing in the AS400.

- He was concerned with developing farms. He used to pay the farms special great attention, as an extension to his father’s dreams. I remember that, in his most field visits to the farms, he used to remember his father, and wished his father was alive to see the growth achieved by the farms and transformation of these deserts

to vast green patches.His farsightedness had an important role in his

achievements, compared to others in the same time and conditions. He felt the importance of expansion and making use of the unrepeated opportunities. The Group was able to make use of the first boom of the Kingdom in the best possible manner. The Group was able to grow much faster, and financially enhanced its position. It was able to continue achieving growth and exploit these gains later in investments and new activities to reduce dependence on agricultural sector.

Socially, he had a vital and essential role in making use of the qualities he inherited from his father. He made use of the good reputation, conduct, and expanded that base

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Longing to the Past, Proud of the Present, and

Aspiring to the Future.

By: Bandar Alkhorayef

This year AlKhorayef Group celebrates its 50th Anniversary, it is surely an oppotunity to reflect on the continuous success and achievements during half a century. It is a time to look back on memories and longing to the past, to be proud of our present achievments and looking forward to our future and it is an occasion that reminds us of those who have worked hard in establishing the AlKhorayef name and creating a strong foundation for its growth, starting from my grandfather Skaikh Abdullah AlKhorayef, the founder, my late father Shaikh Ibrahim AlKhorayef, my uncles and every one who have been part of our history from our long valued employees, customers and suppliers.

Sheikh Ibrahim Alkhorayef, may Allah have mercy upon him

�6 Issue 26, Jan 2006

of relations, build on strong grounds, with others.

He was a first class public relation person that expanded to all levels and reached His Majesty King Khalid bin Abdulaziz at that time, where the group was supervising His Majesty’s farms: in addition to a number of their Royal Highnesses, religious scholars, ministers, high level officials, dignitaries, family members, friends, customers, represntatives of all of foregin compaines and employees.

He was an extraordinary man of relations. He left a clear mark on everyone who had directly or indirectly dealt with him for the special style in treating others. He was humble, used to appreciate people, and put exert efforts in achieving their demands and sensing their needs.

He was able to earn the love and respect of all who know him, watch their needs, avoid insulting them, be faithful to them, and share with them the pleasant and sad occasions.

He was also good-hearted, good-mannered, tolerant, accepting the other, benevolent, and generous. These qualities enabed him achieve this distinct position in the hearts of people on different levels.

All the above qualities contributed in promoting the good reputation of the family and company on proper bases proved powerful over the years.

Undoubtedly, he had a role in deep rooting the culture of interaction with others to become a part of the culture we enjoy today.

If we look at the time when he first

shouldered responsibility after the death of hid father, we would find that he succeeded in the first test. he was able, with uncle Abdulrahman, to bring together his borthers and sisters and their mother, unite them, and acquire their love and appreciation.

He adapted these principles, throughout his life, in all of us. He was an example for others keen in bringing people together, and avoided reasons of dispute. These qualities, thank Allah, later became unquestionable in our family.

Before he died, after his illness with the disease that caused his death, he was keen to write his will, in which he emphasized that all things under his name were his possessions and his brothers except his house and a few shares in one of the public companies.

This step had an important role in the unaffected continuation of work after he died, and indicated his understanding to the magnitude of responsibility he shouldered. It also indicated the absolute trust of his brothers in him. This is only a part of his character.

The best lessons we can learn

from his experience in life, is the love of people he gainded and good memory after all these years, which proves the success of his way in dealing with people.

It is proved that people do not easily forget those positively and distinctively affected their lives. They still remember him and keep telling

his honorable stances, which makes us proud that the Group and the family were blessed with

people like him.My brothers and I, still enjoy

appreciation and respect from others as a result of my father’s good reputation. Of course, it is one of the greatest, most important, and precious inheritances.

Today, as we celebrate the elapse of fifty years since the Group was first established, we remember and appraise the role of those preceded us and feel proud of their achievements and inheritance of good reputation and culture. It is our task to make them our example.

May Allah have mercy upon my grandfather, the founder Abdullah and my father Ibrahim. I also thank my uncles for continuing this wonderful journey and achieving the growth, expansion, and success.

We beseech Allah Almighty to take care of us and render us success in achieving more progress.

I seize this opportunity to congratulate my uncles, aunts, mother, brothers, sisters, partners, family members and the Group’s employees; especially those who lived the development stages of this great edifice.

Sheikh Ibrahim Alkhorayef, may Allah have mercy upon him, in a group picture with the company’s employees in his house. The picture shows also Sheikh Abdulrahman, Sheikh Hamad, and Sheikh Saad.

Sheikh Abdullah Alkhorayef, may Allah have mercy upon him, on the left and Uncle Sulaiman Al-Oraini on the right.

Sheikh Ibrahim Abdullah Alkhorayef, may Allah have mercy upon him, in a meeting abroad.

Issue 26, Jan 2006 ��

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Images and Stances from the Living Memory

Our interview with Mr. Abdulaziz Al-Bathi, translator of the late Sheikh Abdullah Alkhorayef, may Allah have mercy upon him, was not an ordinary interview. We sailed with him in a sea of memories that went back to many years ago. He tried to produce images and attitudes from his memory about the founder of Alkhorayef Company and his pioneer leadership that brought the company to success and distinction all through the fifty years since it was first launched.

Let us see what Mr. Al-Bathi says:

“I used to go from Malaz quarter to Olaisha quarter before the calling for dawn prayer and sit with Sheikh Abdullah. After prayer he used to show me the correspondences that he received from foreign companies. I read them for him. We discuss them and he decides what is appropriate. Afterwards, I go to my government work.

The next day I come in the same time with the letters directed to the companies typed in the small typewriter that I own. Sheikh Abdullah signs and sends them. He also used to invite me when foreign delegations of the companies he deals with in Riyadh are present.”

Sheikh Abdullah was distinct among all Saudi and Arab businessmen with his style in taking decisions or what is known as “decision making”. He was known as the “man of initiative,” and of unprecedented behaviors in work performance and dealing with developments. I admired these qualities in him and he encouraged me to cooperate with him.

I did not travel to any country

By: Mr. Abdulaziz Al-Bathi,Translator of the late Sheikh Abdullah Alkhorayef

with him, but when I traveled, personally, I used to execute the tasks he assigned to me. For instance, during my visit to Sweden, I discussed with Volvo Company the inability of the Swedish company to meet Alkhorayef’s growing demands for engines; as a result of my accumulated experiences that helped me best in the then ARAMCO’s Al-Kharj agricultural project.

I am proud of working with Sheikh Abdullah, may Allah have mercy upon him. He used to accept viewpoints patiently. He was like a fertile land that accepts any plant.

Sheikh Abdullah used to follow up his works after performing dawn prayer. Once, after performing prayer and while I was sitting with him a farmer came in from Al-Kharj holding a ball-size water melon. With tears, the farmer elaborated on his painful conditions. He explained to Sheikh Abdullah that the pump in his farm was inoperative. He came to Riyadh after borrowing some money from a number of people to repair or change the pump so that he could not miss the season. Sheikh Abdullah calmed him down, gave him the amount of money he borrowed to give it back to lenders, and immediately ordered the late Mohammed Al-Khudair, may Allah have mercy upon him, and Sulaiman Al-Oraini to take spare parts, a new pump, and go with the farmer to

repair the failed pump or install the new pump in case the old one is irreparable.

Indeed this was a rare stance that showed the character of the Sheikh and the way he interacted with others. There were similar stances that emphasized the leadership of the Sheikh and how he handled matters.

During a financial crisis, the Sheikh was asked to pay 600 Saudi sliver Riyals based on allegations that the amount was entrusted with him. The Sheikh collected the amount despite the financial crisis he was experiencing and paid the money to the man who was later realized that he entrusted the money with someone else who looked like the Sheikh. The man apologized for the Sheikh, kissed his head, and highly appreciated the stance.

The Sheikh’s sons are better successors for a better predecessor. They enjoy a good reputation and wonderful relations with people. They love doing good deeds and dislike evil ones. They are leading the company from good to better, aided by their father’s experience, which they developed and enhanced with faithfulness, dedication, knowledge, and modern science. And the most prominent thing is the joining of forces and collaboration in managing work, which is the secret of success.

�� Issue 26, Jan 2006

When those in charge of Alkhorayef magazine asked me to write an article about the charitable deeds of Alkhorayef Group, I approached Alkhorayef for permission; but he refused to grant it. Alkhorayef told me that they were deeds of piety and philanthropy that should not be disclosed.

There were many situations that deeply affected me. Here I chose one of them and ask Alkhorayef family to excuse me for not taking prior permission.

I joined Alkhorayef in 1981 i.e more than 25 years ago. Alkhorayefs, men and women, used to treat employees and workers as their brothers and sisters. There was once a governess from one of the Arab countries working in Alkhorayef’s house. Alkhorayef’s family used to treat her as their mother. Through time she was inflicted with old age diseases (blood pressure, diabetes, and arthritis). She stayed in the hospital for more than twenty days. Alkhorayef spent thousands of Riyals for treating her in one of the most modern hospitals in Riyadh. And when physicians decided that her case was desperate, it was decided to send her home. Alkhorayef’s wife, personally, and her son accompanied her in the journey back to her country. The office manager was first sent to the governess’s country to facilitate her reception. Alkhorayef’s family then came back after delivering the governess to her family and reassuring that all treatments were arranged with a resident physician to supervise her.

When that governess died, Alkhorayef’s family was very sad. Since her death, ten years ago, the name of that lady is still in the (list of sacrifices) that Alkhorayef used to slaughter for himself, on behalf of his parents, and grandparents.

They say Alkhorayef is school where many competent administrative cadres have been

graduated, do you think so?I agree. Alkhorayef is not just a school, but a university.

It is the only university that does not graduate students every four years, for employees and workers in Alkhorayef stay longer.

Alkhorayef, from the beginning, trained his employees and recruited - during the boom - excellent cadres from the managers of foreign companies, from Europe and USA (such as Ormond, Bowman, Charles, Jack Jenkins, Bob, Don Henrich and others,) who benefited from Alkhorayef and made others benefit from them. They had also trained Alkhorayef’s employees. The fruit of that training is the present competent cadres.

As to those who graduated from Alkhorayef University and went home, they occupied prominent positions in their countries.

What Alkhorayef has offered you?The question is better being: What Alkhorayef hasn’t

given you?Alkhorayef has given me everything, and whatever I

do I would not satisfy him. It is enough that he treats me as one of his sons. One of the laborers told me that Sheikh Alkhorayef said to him: “you are our brother and the only difference is that you are not inheriting with us.”

I hope one of my sons would find a chance to serve Alkhorayef and satisfy part of their grace and kindness they bestowed upon us.

Last word:I beseech Allah Almighty to grant this family progress,

success, long living in piety of Allah, and render their sons success in this world and hereafter.

Excuse Me for not Taking PermissionBy: Mohammed Abdulwahab Al-Rayyah

“Credibility is the Aim and Constant Title”Abdullah Marzoq Al-Marzoq

I joined work in Alkhorayef Company 26 years ago. I was employed through Sheikh Ibrahim, may Allah have mercy upon him, and worked with him in many businesses concerning the government sector.

The bases Sheikh Abdullah laid are still prevailing where credibility constitutes an aim and a constant title, whether in transactions with government bodies or even customers, where keenness to serve customers increases and providing them with all they need with transparency and complete honesty. That was what we found during our interaction with many individuals who respect this quality that remained steadfastly beside the introduction of different types of developments to cope with modern era in various fields of works.

I can say, after the long years I spent in Alkhorayef Company, I feel proud of my affiliation to the Company and that every New year passes acquires the Company more experience, success, fame, and distinguished performance of its open-minded management.

Issue 26, Jan 2006 ��

Sulaiman Abdulaziz Al-Oraini:

“I am graduated from Abdullah Alkhorayef University”

He worked with my father Abdullah Abdulrahman Alkhorayef in 1380H as a driver. After five years he was promoted manager of the Ice Factories and then the responsible for selling engines, pumps, and drilling machines. H was, and still, in charge of the Real Estate Department for the past 20 years, and represented the company in all government bodies, judicial authorities, sale, and procurement.

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In this interview Mr. Sulaiman Abdulaziz Al-Oranini highlights excerpts from his life long journey with Alkhorayef.

What were the conditions when you first joined the company?

At that time I was studying in the Teachers’ Institute and during the summer vacation I used to look for work, as all youths did to improve their financial conditions. Sheikh Abu Ibrahim appointed me as a driver. I used to deliver him to the farm and office. I loved working with him. Frankly, I was very pleased.

When the academic year was about to begin, Sheikh Abu Ibrahim said to me: “When you graduate from that institute what will they give you as a salary?” I said to him: “SR 250.0”. He smiled and said:” I will give you SR 300.0”. In fact I was in the boyhood where boys love appearances, cars, etc. especially that I was an orphan and found in Sheikh

Abdullah the great and kind father who treated me the same way he treated his sons. I used to live and sleep in the same room with Abdulrahman and Ibrahim, eat, drink, and wear as they do. I used to deliver Ibrahim and Abdulrahman by car to the university. At that time we had one car only.

What else do you remember of that time?

Abu Ibrahim was focusing on his real estate work in Riyadh and he was No.1 and the basic reference in the trade of plots. He sold many plots in Batha and Moraba. All today’s merchants were his students. He was also the reference in solving any problem and had the final word in the real estate realm.

Over that period, what did you learn form him?

I learnt a lot. I learnt the good treatment and how to deal with people, appreciate and observe their situations. His interactions with farmers were full of lessons and examples that indicated his manners and good nature. They remind me of the tales of the ancient wise Arabs we used to hear about. I, myself, had witnessed many of his noble stances.

What about the story of the farmer who obtained two pumps and paid the price of one?

This story indicates the wisdom and kindness of Abu Ibrahim, may Allha

have mercy upon him. A farmer bought one pump and lowered

it in the well. It seamed that he did not know how to operate

it. The pump went out of order. After inspection it was useless. When Abu Ibrahim knew the story, he ordered me to go to the warehouse and give the farmer another pump instead of the failed one. The farmer got the new pump and left the failed one behind. Afterwards, he came to take the failed one as he thought it was repaired. But Abu Ibrahim said to him: “Here is your pump. It is irreparable. If you want it you can take it. And take the second pump you have already had as a gift.” The farmer couldn’t believe it. He thanked, praised, and prayed for Abu Ibrahim for this stance. Abu Ibrahim esteemed that the farmer who paid SR 4000.0 for the first pump could not pay a similar amount for the new pump.

The help stances are many. Another one when Abu Ibrahim made farmers pay the due money in easy installments while he was drilling wells and installing pumps for them.

This was his usual style, may Allah have mercy upon him, especially with farmers, because he regarded himself a farmer who knew the secrets, difficulties, and requirements of agriculture. He was also keen to import and operate the best equipment from USA. Later; he procured the plant and installed it in Riyadh.

How was he treating his sons?

It was a perfect treatment that instilled in them trust, determination, and power to manage work. It helped them understand all details and bear different burdens. I remember here his stance with Ibrahim and Abdulrahman after they graduated from the university and he wanted to assign them in charge of the Company’s office in Al-Shimaisy. He gave the keys, including the (Tujuri) safe’s key, to Ibrahim. Ibrahim asked his father to count the money. His father replied:” this is your money, you can take care of it.” Abdulrahman and I counted the money.

20 Issue 26, Jan 2006

I also remember his advice for his sons after one of the Aser (afternoon) prayers when I wanted to leave. He insisted that I must stay. He said to them:” pay attention to the good treatment, faithfulness, loyalty, take care of different customers and do not be hard on them, and avoid raising prices.”

Gradually the sons started to undertake tasks and businesses and Abu Ibrahim, who was once the founder and leader in the trade of submersible pumps and drilling machines, slightly frequented visits to the company. Abu Ibrahim, may Allah have mercy upon him, had more than ten drilling machines operated by workers who had no wages but worked on certain rates. Each drilling machine had a daily register for the number of meters drilled in order to calculate the rates later.

After the death of Sheikh Abu Ibrahim, what happened to the Company?

His son Ibrahim, may Allah have mercy upon him, shouldered the responsibility and things went on with no change as laid by the late father. Some developments and technologies to update business and cope with the market were introduced. Ibrahim and his successor Sheikh Abdulrahman continued on the steps of their father in the good treatment of people of various sections, providing facilities for the farmers, and be kind and helpful to them. Sheikh Ibrahim’s sons then accessed work fields after the companies expanded. They are still on the same system and principles adopted by Shiekh Abdullah, may Allah have mercy upon him, fifty years ago.

Are you sorry for this change in your life and for leaving the teaching profession?

Never!! I am not sorry. I regard it a successful and appropriate step. Many of those who do not know me ask me where did you learn and study. I reply with pride that I studied in the University of my Father Abdullah Alkhorayef; who as well as his sons Ibrahim, Abdulrahman, and other brothers graduated me. I regard myself acquirer of the experience that nobody can have whatever he studies or learns.

What Alkhorayef Co. has given you after this long service?

It gave me a lot. I am proudly satisfied. Now when I enter any place, meeting, a government agency, or court people esteem me high and respect me. This reflects the position of Alkhorayef. They do not regard Al-Oraini is the one who came, but they regard me Alkhorayef. Many times I hear people say “Alkhorayef has arrived”. This is a good reputation and I am proud of, for they immediately meet my requests for everything I demand or want to buy without going back to anyone in the company.

How was the position of the father, Sheikh Abdullah, towards you?

It was indescribable! He used to treat me the same way he treated his sons. The Sheikh was kind and helpful with people he did not know and treat them with respect; what do you think he would treat me! Whatever I say I can not express my good feeling about the way the father, Shiekh Ibrahim, may Allah have mercy upon them, or Shiekh Abdulrahman, and his brothers treated me. I pray to Allah Almighty to reward them, Alkhorayef to continue its successes and distinction, and the sons to unite and keep on the same course.

So I preferred working with Sheikh Alkhorayef

Uncle Abdo Sufian

Uncle Abdo Sufian is one of the first men who worked with Sheikh Abdullah Alkhorayef, may Allah have mercy upon him, in 1374H.

He recalls those early beginnings when he worked in the company, owned by Sheikh Abdullah and Mohammed Al-Naem, which was the Ice and Blocks Factory. He was a technician of diesel engines. After the spilt of the company between the two partners, he preferred to join Sheikh Alkhorayef.

Uncle Abdo says: “I chose to work with Sheikh Abdullah Alkhorayef for his good manners and treatment. He was a very generous man though his financial conditions at that time were not that good. Generosity was his natural disposition. He used to provide me with all what I needed such as food stuffs etc.

This generosity continued after he died. His benevolent sons proceeded on the same track of their father in taking care and honoring his men and companions. So the Sheikh’s good deeds did not stop after he passed away.”

An official document stating that uncle Abdo Sufian had Joined work with Sheikh Abdullah

Alkhorayef in �3��H

Issue 26, Jan 2006 2�

Spicial file

The tale of Mohammed bin Rumaih with Alkhorayef Company is different. He did not work as an employee in the Company, but he was so close to it. He knew the founding father Sheikh Abdullah and Sheikh Ibrahim, may Allah have mercy upon them, and the rest of the sons.

With his humorous spirit and smile provoking comments he reviews his march with Alkhorayef that started more than 48 years ago when he first came to the Company and bought a pump in installments and paid SR 8,000 and had to pay SR 4,000 as a second installment. He, after some time, was surprised that Sheikh Ibrahim asked him to pay two thousand Riyals only and dropped the other remaining two thousand Riyals.

That was the beginning of interaction with the new born company. He is now an exclusive distributor of the Company in Al-Kharj and the surroundings.

In his youth, he used to love mechanics and he was given a chance to learn the principles of mechanics. He later undertook maintenance and installation and was named the (engineer).

Ibn Rumaih recalls many events and stories of the past years he spent with the sons of Alkhorayef. The most remarkable of which was the humane cases where many farmers were unable to pay their dues and pump prices. Sheikh Abdullah used to grant them a respite, postpone payments, and in most cases drop the due amounts.

Ibn Rumaih says that Sheikh Abdullah was a unique of his kind. He was a man in the full sense of the word and quite confident that good deeds would stay. That was his principle and secret of success. His sons proceeded on the same course after he passed away and thus successful, distinguished and superior.

Our narrator does not forget his journeys to France, Sweden, etc. he visited with the sons of Alkhorayef where he used to get acquainted with pumps and factories that manufactured them. His relation with all the sons was based on honest

interaction and fraternal treatment that continued stable and strong to the extent that he did not market engines for any other companies as he was morally committed with Alkhorayef Company.

A Feeling of GratitudeSaeed bin Huwail

I started work more than 43 years ago and was in the Ice Factory. When Sheikh Abdullah retreated from the Ice Factory, I stayed with him and his sons, after he passed away, and coped with all developments witnessed by the Company where businesses were expanding and going from good to better with the grace of the management of the sons of Sheikh Abdullah who laid the foundation of work and trends.

The trends and takeoffs continued till now where all, employees and customers, testify for the honest interaction, good treatment, and sincerity in work which is reflected as a bright success in reality.

I also remember the past days when Sheikh Abdullah and his son Ibrahim, may Allah have mercy upon them, and Sheikh Abdulrahman and the rest of the sons were kind to farmers, gave up many amounts, and accepted few ones as a service and encouragement for the farmers to engage in this productive work.

Their policy was successful and farms spread in many cities, provinces, and hamlets with the mercy of Allah and efforts of Alkhorayef Company which was the leader in the service of this vital sector which rendered many farms famous.

Many farmers express their feelings of gratitude to Alkhorayef Company that supported them and pushed them forward to success.

The 50th anniversary is an important occasion I seize to congratulate Sheikh Abdulrahman and his sons for the success, development, and prosperity they realized for the company left by their father and which is now one of the biggest specialized companies. I also congratulate employees and urge them to exert more efforts, diligence, and all the best.

“He was really a man, and that was his secret of success”

Mohammed bin Rumaih

22 Issue 26, Jan 2006

I joined work in 1393H. I used to follow up the company’s works in different ministries. As a result I traveled to Jeddah, Dammam, Dhahran, Al-Qaisumah, Hafer Al-Batin, Taif, etc to end transactions, accompany a geologist, or recruit workers. Thus I worked for many years till the projects expanded and I was no longer, alone, able to do the job. Afterwards, many employees were appointed. I worked in the Kharj Road for years and then transferred to Olaisha and followed up service-related transactions.

I can not praise the company’s owners, and if I try to laud them I will not be able to satisfy their right of magnanimity, chivalry, humanity, manners, or kindness. Abdulrahman Alkhorayef used to ask me: “Do you need something?” He used to give me money quietly and unnoticeably. I can not deny this kind act! Why should I deny the truth? He used to give me generously. He helped me educate my children in the university, buy my house, in addition to many other things no one could do. All his other brothers kept on the same course.

You ask me about the secrets of success? They are faithfulness, honesty, and loyalty. People go down and we go up.

I call all workers in the company to sincerity, perfection, and advice everyone not to say that I did so and so. For the owners of the company know every bit. And I always say: “Oh, Alkhorayef proceed from good to better. I beseech Allah Almighty to confer upon you success and prosperity.”

Mohammed Abed Zaid Al-Matari says:

“If I describe them, I would not be able to

satisfy their right.”

it gave me everythingAdil Abdulhadi Hussein

I joined work with Alkhorayef Company in the first of March 1981in the Personnel Affairs Section and after a short period I was transferred to the Information Technology.

I started work with Sheikh Ibrahim, may Allah have mercy upon him, and the rest of the brothers. The company was proceeding according to the founder’s plans and introduction of all necessary modernizations that coped with latest developments so that the Company could maintain its position and leadership.

I feel proud in working in Alkhorayef Company throughout this period and regard it an important stage in my life that gave me literally everything i.e. knowledge, position, and stability with every new day in the company where I acquire something new in the work and interaction.

On the occasion of the anniversary of foundation, I wish the company more success and prosperity; and emphasize that Alkhorayef’s family deserves all the best and success.

Issue 26, Jan 2006 23

Spicial file

Engr. Abdulkareem Talab:

“When it needs a humane help, regulations are

put aside”I joined work in 1977. I started as a well engineer

in Taif and afterwards transferred to the Engineering Section. Currently, I am the Project Manager of Water Wells.

The secret of Alkhorayef’ Company’s distinction is the credibility in dealing with employees and customers. I never felt, during my work period, I was a stranger in the company; but a member in it. Every employee is an important member in his position and character. So the management asks him, takes his opinion, and listens to him. The treatment is fraternal and all rules and regulations are put aside when matters require provision of urgent help to any employee.

After all these good years, I learnt from Alkhorayef credibility and modesty in treating people. Previously, water pumps were called “Alkhorayaifiyah” and now this term means honesty, trustworthiness, and straightness. Here I remember with pride that I, sometime ago, went to the Eastern Region to follow

Kamalualdeen Ahmed Awadalkareem:

“A situation I still remember since 32 Years”

I joined the company in 1973. I was then a laborer in the Wells Drilling Section. I remember that I worked in the first project of Wadi Numan District Wells, near Taif. We were a group of laborers drilling 45 wells there. The wage of a laborer was SR 200.0 a month. Afterwards; I was transferred to the Commercial Section and worked in selling pipes and pumps. I, finally, settled in the Service Section.

I will never forget the father, Sheikh Abdullah. He used to come to us in the wells project with

up the execution of a water project. It was a beautiful surprise when I entered one of the stores to ask about some equipment and the store keeper told me that the equipment were reserved for Alkhorayef, though we did not pay their price. The store keeper justified that dealing with Alkhorayef was an honor to him and a good reputation to his store. This is one of hundreds of examples.

I wish Alkhorayef progress and continuity with the same power and system. Indications tell that Alkhorayef is going in the right direction. The sons shouldered responsibilities form their father - the founder - maintained them, and, God willing, the coming generations will remain so.

I stress to all employees and workers the necessity of exerting continuous efforts, seriousness, faithfulness, diligence, and maintenance of trust for the company that never failed to provide them with what they needed.

his son Ibrahim, may Allah have mercy upon them. They used to sit with us, take meals and coffee, listen to our remarks, and laugh with us. These are deep-rooted memories that will never be obliterated.

I did not remember that the salary was once late, in all cases. I heartedly hope my sons finish their university education, and find a chance to work with Alkhorayef in order to know closely that what I used to tell them was just a little of the truth and reality I lived through these years.

2� Issue 26, Jan 2006

AIA is one of the biggest commercial groups in the Kingdom of Saudi Arabia. The Group started activity in the Saudi market fifty years ago, as it was established in 22/1/1377H. Over the time it made big leaps and occupied leading positions in the fields of its work that included the trade and industry of equipment, agricultural and industrial machinery, electric generators, lined pipes and tubes, oil production pumps, water pumps, lubricants, printing machines and equipment, carbonated paper industry, agricultural and animal production. It also included the fields of maintenance and operation; administration, consultation, and financing services.

AlA’s activities expanded to include many east and west countries in the world. It has many offices and branches in USA, Britain, Belgium, France, Russia, Turkmenistan, Kuwait, Oman, Egypt, Iraq, Sudan, UAE, in addition to branches in the Kingdom.

The Group effectively contributes in the growth of the Kingdom’s gross domestic product (GDP). It exports many of the Saudi products to the above mentioned countries as its products are known for the trusted quality; in addition to the excellent after-sale-service programs it provides, which include warranty, maintenance, and spare parts.

The Group’s geographical spread has also helped facilitate customer contact, satisfy their desires, and achieve their demands through the support of the Group’s elite workers who are selected, trained, and qualified to provide best services to customers in various fields.

Abdullah Ibrahim Alkhorayef Sons

Company (AIA)

Reports

Issue 26, Jan 2006 2�

26 Issue 2�, Nov 200�

Reports

ACC is the biggest company in Alkhorayef Group of Companies (AIA) and constitutes the back bone of the Group. Its activity was initially confined to the agricultural field, and expanded to include lubricants, maintenance of oil wells, and marine sport and fishing equipment.

In the agricultural field, the company provides an integrated program for agricultural equipment, and represents the biggest equipment manufacturing company in the world.

Due to the diversification policy adopted by Alkhorayef Group of Companies, ACC obtained the privilege of distributing Castrol products (lubricants) used in various engines: car engines, heavy engines, marine engines, electric generators, or aircraft engines.

ACC practices its marine activity in the trade of marine fishing equipment, tools, fiber glass boats, Zodiac rubber boats; Volvo Penta, OMC, and Yamaha marine engines; and various diving and marine sport equipment.

ACC’s reputation and success is probably attributed to the excellent after-sale-services provided to customers. ACC provides immediate maintenance units to all equipment it sells and keeps huge warehouses for spare parts in its main office in Riyadh and in branches all over the Kingdom.

ACC has entered oil fields, which is a vast new field. It established the Petrol Division which undertakes the import and installation of oil pumps,

Alkhorayef Commercial Company (ACC)

and their necessary maintenance works.This was a good fruit of the continuous big

effort exerted by ACC, balanced scientific planning, deliberate investment in human and material potentialities, and development of ACC’s equipment and facilities for electric submersible pumps. ACC entered this field in 1982 when it expanded its activity to include irrigation projects.

ACC concluded an agreement with ESP (USA submersible pumps company). This agreement enabled Alkhorayef to take a positive and wonderful step in the field of analyzing the conditions of pumps, engines, and testing their performance; in addition to the provision of a group of high quality industrial and engineering equipment.

ACC has also prepared a modern workshop for maintenance and testing, which will allow accurate measurement definition of ESP equipment to suit well performance and reduce possibilities of costly mistakes.

Afterwards ACC replenished its capacities in oil fields and contracted with USA Plastic Lining Systems Inc. (PLS) specialized in the pipe lining technology and protection against rust and erosion. By so doing ACC is able to apply the technology of PLS in its field works. ACC has now modern equipment and services at its General Management in Riyadh and through a net of regional offices spread in important locations all over the Kingdom of Saudi Arabia.

26 Issue 26, Jan 2006

Alkhorayef Industries Company Ltd. (AIC)

May be the support received by the industrial sector from the government of the Kingdom of Saudi Arabia is not less than that received by the agricultural sector.

The Ministry of Industry granted different industrial licenses, after studying the feasibility of each project. Then the Industrial Development Fund (IDF) played a major role in pushing the industry wheel in the country by the free of charge studies and consultations it provided to the project owners and loans with encouraging and generous conditions that supported these projects.

AIA played an effective role in boosting the agricultural activity with another industrial one that will provide the essential requirements of agriculture in the Kingdom of Saudi Arabia. The most important of these requirements are water pumps, the mainstay of agriculture and irrigation systems. As a result Alkhorayef Western Lin for Pumps Ltd. and Alkhorayef for Irrigation Systems were established. Two factories were also established in the second industrial region in Riyadh on an area of 80,000 square meters. These industrial activities were lately combined under AIC.

AIC’s products include pumps, gearboxes, pipes, center pivot sprinklers, and polyethylene lined pipes.

AIC also produces water pumps under the commercial name of Western Pump, and gearboxes from US Randolph.

AIC has also added another tributary to this industry by establishing an iron pipe factory which will give the products quality integration. These pipes are used in irrigation, agricultural purposes, construction projects, transfer of gas and different liquids. AIC also produces high-quality mechanical irrigation systems under the commercial name of (ALMUTAWWAR), superior to the European and US systems due to the advantages and improvements compatible with the climatic conditions of our region.

Thus Alkhorayef for Irrigation Systems is able to provide farmers with center pivot sprinklers that spread in all parts of the Kingdom of Saudi Arabia and the region. These systems contribute in the irrigation of wheat, barely, and fodders. The best witness is the green circles spread in all parts of the Kingdom.

Recently, AIC made a big stride. It established a section for lining pipes with polyethylene. This modern technology will protect against erosion and rust. Thus AIC provides a radical solution to basic problems suffered by farmers. This section is the only one of its kind in the Middle East.

Issue 26, Jan 2006 2�

Reports

AAPC is one of the biggest agricultural companies in the Kingdom of Saudi Arabia. Its activity is confined to tow production sides: plant and animal. AAPC administers a number of big agricultural projects in different parts of the Kingdom; in addition to its own private projects.

AAPC administers about ten thousand hectares of agricultural lands in different parts of the Kingdom, and cultivates various crops including wheat, barely, fodders, potatoes, vegetables, and fruits. It is one of the biggest fodder producers in the Kingdom. It follows modern and developed techniques in agriculture, production, and management of agricultural projects. AAPC also owns a number of agricultural projects in the regions of Riyadh, Kharj, Wadi Al-Dawasir, and Jouf.

The Company prepares developed agricultural plans to support agricultural production in the Kingdom, and executes its plans to find other alternative crops instead of those supported by the state. The Company achieved high rates of production that amounted to more than 7.6 tons/hectare for wheat, and 9.1tons/hectare for barely.

AAPC is working in a big project for animal production in Jouf region where it raises and fattens sheep. The Company is developing another sheep project in Jouf region. It also started a small bee project, which is undergoing gradual development to become one of the company’s pillars of activity in the future, God willing.

AAPC conducts its researches and experiments on various types of agricultural crops such as oil and fodder crops to buttress its expansion and product development in various projects, achieve diversification in production, and optimum use of agricultural cycle.

The Company follows the policy decided by AIA’s board of directors in giving the Saudi youths a chance to train in its projects, reward them, and also a chance in different AAPC’s project after training periods.

AAPC provides farmers with advisory services: guiding services pertinent to fertilizers, insecticides, or irrigation etc.; or run their projects. The Company has a lab for the analysis of soil, water, and plants. Specialists provide the necessary advice in the light of these analyses and researches; in addition to field researches.

Alkhorayef Agricultural Projects Company

(AAPC)

2� Issue 26, Jan 2006

Maintenance is essential for the efficient use of installations and equipment and obtaining high return equivalent to the costs of their establishment, and guarantees their validity for continuous use that reduces the rates of consumption, erosion, damage, and ensures uninterrupted work due to failures. This could only be possible by implementing the proper protective maintenance procedures.

AOMC started from this point and proceeded activities in water works, maintenance of wells, necessary mechanical and electrical works,

Alkhorayef Operation & Maintenance

Company (AOMC)maintenance of sterilization systems, and water purification stations. The Company is carrying out maintenance, management, and operation of drinking water projects in the north western region of the Kingdom and some parts of the central region.

AOMC is specialized in maintenance of wells, submersible and turbine pumps, high pressure, and electromechanical works. It has high technical experience and necessary modern equipment to execute its missions optimally.

Issue 26, Jan 2006 2�

Reports

APIC is a young company with great purposes and very big aspirations. The company aims, in the first stage, at the manufacturing of carbonated paper (NCR), which has a growing demand in the local markets.

APIC’s productive capacity meets the needs of the Kingdom’s market, part of the GCC’s needs, and a number of other Arab countries.

APIC has made big strides on the policy adopted by Alkhorayef companies concerning

AlNakhil Paper Industries Company (APIC)

Saudi Parts Center Co. (SPCC)

Since its establishment, SPCC strived to provide special services to customers by ensuring high quality spare parts with competitive prices to different diesel equipment such as caterpillar, Commez, Volvo, Scania, Komatsu, from known international sources with long experience in manufacturing spare parts such as USA and Europe.

SPCC serves its customers through a network of branches spread in different parts of the Kingdom. Due to continuous development in SPCC and management keenness to acquire means of superiority in all fields, SPCC obtained ISO 2000:9001, which reflected its extent of concern in quality standards and growing interest in serving customers.

From this springboard, SPCC inaugurated

its new product SPI manufactured in the best spare parts plant in the world to provide customers in the Kingdom with a high quality, competitive price, and SPCC guaranteed product.

SPCC is proud that it owns the biggest workshop for renewing turbines according to modern electronic systems. The workshop operates in collaboration with SPCC’s branches to cover requirements of different regions of new and renewed turbines.

SPCC’s future perspective is clear in its strive to be the biggest spare parts company in the Kingdom through providing the best spare parts, focusing on after-sale-service, and covering the industrial field as it did in the agricultural one.

perfection and good performance. It chose for its plant the latest equipment and contracted with Bartsch Company – one of the oldest and leading German companies in this industry - to procure specialized technology; in addition to Bartsch supervising production and monitoring quality.

APIC is intending to diversify its products in the future to include a number of auxiliary paper products according to a prepared program for this purpose.

30 Issue 26, Jan 2006

SIH is a company for financing goods that live longer and required by consumers against paying the price in installments controlled by Sharia profitability rules.

Profitability installment system has many benefits reflected on the community. Through this system, individuals who need to buy things can ensure their needs for different goods.

SIH has met consumers’ needs as to buying a car, house furniture, etc. SIH buys the required good and sells it for those who desire it against installments that must be paid within

Saudi Installment House (SIH)

periods agreed upon that suit the customer’s income.

SIH achieved a tangible success, thank God, during the past years. The Company was established in 1990 and greatly expanded its activity. It ensured cars paid in installments and other various goods. It has also entered various new fields that support its plan and aspiration by financing the procurement of housing real estates, industrial projects, and required equipment for project owners according to the budget of each project and expectations of the cash flow.

TOMMC has joined Abdullah Ibrahim Alkhorayef sons company (AIA) in early 1993. Thus AIA entered a new field: the trade and maintenance of printing industry equipment, and packaging.

A constellation of leading companies for manufacturing printing equipment, packaging, and necessary materials for this industry represent TOMMC. MAN Roland (the German company for manufacturing Offset Printing Machinery) leads this constellation; in addition to the German Kolbus company (for manufacturing bookbinding lines), the German Gobel company (for the production of specialized equipment for printing and paper); Du Pont Nemours (for the production

Trans Orient Modern

Machinery Co. (TOMMC)

of printing films); Varityper (specialized in electronic typesetting equipment); and other inte