The company has expanded recently by concentrating on oilfield technology and forming joint ventures with major international companies
Shoaibi Group in numbers
$80m: Paid-up capital
35: Number of subsidiaries
$500m: Revenues in 2009
Source: Shoaibi Group
While Shoaibi Group has grown steadily for about 34 years, the company has expanded most rapidly in the last five years. By concentrating primarily on oilfield technology and forming joint ventures with major international companies, the group has managed to maintain its momentum despite the global slowdown of 2008-09.
Choosing well-established joint venture partners such as Technip, Halliburton and J Ray McDermott has allowed the company to maintain a level of business that has been beyond the achievements of similar companies.
Saudi Arabia’s long-term plans for its hydrocarbon resources has also been a help to Shoaibi Group. Barely any oil and gas projects have stalled in the kingdom, unlike some countries elsewhere in the region.
Some potential obstacles to future growth remain. The GCC region is still investing in its upstream oil and gas sector, but some downstream oil and gas projects, particularly large petrochemical projects have been delayed due to feedstock issues.
Expanding into the wider region may also happen at a slower pace than planned, as countries in North Africa generally move less speedily with major hydrocarbon projects. The political situation regarding Sonatrach has also resulted in several projects being delayed in Algeria.