Modern day merchants

AK Almoayed Group businessman and chairman Khalid Almoayed

“God willing the new generations will uphold our reputation.” A reputation that Almoayed is clearly proud of. “We like to feel that our family name in the building materials sector is synonymous with quality and honesty and I’m honoured to
get this feedback from some of our traditional customers.

“We are trustworthy and we have earned a reputation that was created by my father, grandfather and great-grandfather.”

Almoayed says they traditionally purchased their steel from Europe and then the Far East before shifting to the Gulf region where it was more convenient to transport and easier on cash flow.

Since supplies from the Gulf have diminished, Almoayed says they’re looking to steel producing countries like Turkey and others from around the world, but is cautious that the quality of steel is maintained.

“There are some places that are offering steel which does not meet up with the specifications of our engineers in Bahrain so we do not buy it,” he says.

“There is good and bad steel everywhere in the world and some of our competitors are supplying steel below the accepted standards and claiming it is otherwise, but they are always found out.”

In an industry where demand is high, fierce competition is bound to follow and Bahrain’s building material industry is no exception.

Anybody who is starting a new business in building materials is probably making a mistake, says Almoayed, because without an established name it is difficult to oust a competitor on limited margins.

“Suppliers have always got the problem that there are always too many other suppliers because the business is guaranteed to go on.  People will always build houses and property and so on,” he says.

And it seems that trading in steel and building materials will remain a focus of AKA’s activities for some time yet. The company is currently building new supply sheds and revitalising its steel factory – a sign they are optimistic about the future despite the gloomy financial climate.

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Almoayed says he believes Bahrain is better placed than some other Gulf countries to deal with the economic crisis because the country has not over-extended itself in terms of high-end property development. 

But like any successful merchant, he is not burying his head in the sand with regard to tightening liquidity markets and the inevitable tough times ahead.

“Anyone who tells you that we have not been affected is not telling the whole truth.

“No one can claim prosperity forever, there are ups and downs in growth and there are ways to deal with the dips and the rises in the economy, and in your business.

“I hope that the Gulf will sustain its development and growth but there are new challenges and requirements.
“We have first to admit that we have been affected and then start dealing with it.”

Khalid A Almoayed is a member of Bahrain’s Upper House, the Shura Council, and a key board member of several groups including the General Trading & Food Processing Company (Trafco), and Bahrain Petroleum Company (Bapco).

He also chairs his own company, Khalid Almoayed & Sons as well as Ace Almoayed Consultants, the Bahrain Businessmen’s Association and the Alliance Francaise de Bahrain. Almoayed is a qualified civil engineer after obtaining a bachelor degree from Birmingham University in the UK.