The below has been based only on the type of business booming in Saudi Arabia &/ or

a business which has a proposed bright days for a longer/ ever-lasting duration.
Saudi Business Market current types:
1.

Wholesale business/ Suks/ Supermarkets,

a. Consumer goods
i. Households,
a. Needs an initial investment to considerably substantial limit ~ In millions,
b. The initial investment depends on area where the new unit is to be opened/ established,
c. Customer Survey at & around the new area is very very important,
d. Huge competition - Region/ province-wise,
e. Needs Empty land & prime location,
f. Low Risk,
g. Survival mainly depends on updating & upgrading,
h. Customer complains/ maintenance/ ergonomics to be taken care of.
i. Good profit.
j. Capital or initial investment recovery depends on time, customer counts or tie-ups with organizations, companies.
ii. Food & cutleries,
a. Needs an initial investment to considerably substantial limit ~ In millions,
b. The initial investment depends on choice & type of the customers in the area where the new unit is to be opened/ established,
c. Choice of the Customers to be surveyed at & around the new area is very very important,
d. Brand competition - Availability of multiple choice,
e. Needs prime location & existing building/ shop/ suk can be refurbished,
f. High risk,
g. Survival mainly depends on quality of service, quality of units & quality of timeliness,
h. Customer complains/ maintenance/ ergonomics to be taken care of.
i. Good profit.
j. Capital or initial investment recovery depends on time, customer counts or tie-ups with organizations, companies.
iii. Electronics,
a. Needs an initial investment to considerably substantial limit ~ In millions,
b. The initial investment depends on need, type & choice of the customers in the area where the new unit is to be opened/ established,
c. The state-of-the-art & current electronics era to be surveyed,
d. Availability of affordable & multiple choice,
e. Needs prime location & existing building/ shop/ suk can be refurbished,
f. Medium risk,
g. Survival mainly depends on quality of service, quality of units & quality of timeliness,
h. Customer complains/ maintenance/ ergonomics to be taken care of.
i. Good profit.
j. Capital or initial investment recovery depends on time, customer counts or tie-ups with organizations, companies.

2.

iv. ..
Construction
a. New Building/ Maintenance of Old ones,
i. Housing,
ii. Commercial,
iii. Social.
b. Electromechanical,
i. Workshops,
ii. Maintenance jobs,
iii. Machine shop set-ups,
c. Infrastructure,
i. Road/ highways,
ii. Bridges,
iii. Crossings,
iv. Railways,
v. Colleges/ schools/ Universities,
vi. ..
d. Oil & Gas,
i. Turnkey/ EPCC,
ii. Engineering,
1. FEED,
2. Main/ developing FEED.
iii. Procurement,
1. Manufacturing,
2. Vendor development,
3. Stockiest,
4. Import/ stock/ supply/ export (applies when dealing with Out of Kingdom business),
5. ..
iv. Construction,
1. Temporary Construction Facilities,
a. Offices,
b. Camp,
c. Catering/ mess-hall,
d. Supply & Maintenance.
2. Earth moving,
a. Excavation, exposition,
b. Fill material,
c. Sand,
d. Marl.
3. Civil,
a. Pre-casting,

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b.
c.
d.
e.
4.
a.
b.

Cast-in-situ,
Raw material supply,
Ready-mix,
..
Fabrication/ Piping/ Pipeline,
Pre-engineered material,
Pre-fabrication,
i. Pipe spools,
ii. Structural fabrication heavy/ light.
c. Painting/ coating.
5. Mechanical,
a. Equipment,
i. Rotary,
ii. Vessels,
iii. Boxes,
iv. Exchangers,
v. ..
6. Electrical & Instrumentation,
a. Over-head power line OHPL,
b. Specific discipline viz. X-mer, Rectifier,..
c. Calibrations, surveys, ..
7. Telecommunication,
a. FOC,
b. SCADA,
c. RTU,
d. Corrosion Monitoring System,
e. Metering System,
f. Filtration System,
g. Leak Detection System,
h. PLCs,
i. CCR,
j. ..
8. Pre-commissioning/ commissioning,
a. Caliper survey,
b. Water filling/ Cleaning/ Flushing/ Pressure test,
c. Dewatering/ Drying/ Purging/ Lay-up.
d. Leak-test.
v. Manpower supply,
1. Specific disciplines,
a. Skilled
i. A grade,
1. QA/QC Inspectors,
2. PCON personnel,
3. Safety personnel,
4. Contracts personnel,
5. ..
ii. B grade,
1. Pipe fitter,
2. Fabricator,
3. Welder,
4. Rigger,
5. Scaffolder,
6. ..
b. Unskilled
i. Labourer,
ii. Helper,
iii. Mason,
iv. Carpenter,
v. ..
c. ..
v. Sub-contracting,
v. ..
2. Any.
3.

4.
5.

Logistics,
a. Supply chain management,
b. ..
Service Industry,
..

Strategist to adopt;
Market Survey,
o Business to penetrate into,
Vision for next 25 years/ long term goals,
Maximum profit at lowest risk,
Low initial investments.
o Competition,
Local,
Expats.
o Strategy to deal with competitors,
Solid referencing,
Establishing contacts to exemplary extents.
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o Initial Capital Investment needed,

Funds through?
Trade-offs?
New funds generation & re-generation.
o Resources available & needed,
o Co-Existence (& Co-Subsistence).
o ..

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CASE STUDY
v.

Manpower supply,
1.

Specific disciplines,
a.

Skilled

i.Agrade,

1.
2.
3.
4.
5.

QA/QC Inspectors,
PCON personnel,
Safety personnel,
Contracts personnel,
..

ii.Bgrade,

1.
2.
3.
4.
5.
6.
b.

Unskilled
i.
ii.
iii.
iv.
v.

Labourer,
Helper,
Mason,
Carpenter,
..

..

c.

2.

Pipe fitter,
Fabricator,
Welder,
Rigger,
Scaffolder,
..

Any.

b.

Unskilled
i.

Labourer,

a. Needs an initial investment to a considerable limit,

1st Month

2nd Month

No. of New Labourers

No. of Transferred Labourers
Visa Fees
Air-tickect (~)
Transfer fees
Medical/ Health Insurance
Accommodation
Travelling
Food
Iqama fees
Clinic & Ambulance
Miscellaneous Expenses

2,000.00
10,000.00
3,000.00
3,000.00
5,000.00
50,000.00
20,000.00

Incremental Total
Cumulative Total

3rd Month

4th Month

5th Month

10
3

10

12

15

6,000.00
600.00
3,000.00
900.00
900.00

20,000.00
2,000.00
10,000.00
3,000.00
3,000.00

24,000.00
2,400.00
12,000.00
3,600.00
3,600.00

30,000.00
3,000.00
15,000.00
4,500.00
4,500.00

10,000.00
6,000.00

10,000.00
20,000.00

10,000.00
24,000.00

10,000.00
30,000.00

223,000.00
223,000.00

27,400.00
250,400.00

68,000.00
318,400.00

79,600.00
398,000.00

97,000.00
495,000.00

Direct Expenses (Salaries of employess)

Indirect Eexpenses (Salaries of Office staff + stationary + miscellaneous)

12,000.00
50,000.00

3,600.00
50,000.00

12,000.00
50,000.00

14,400.00
50,000.00

18,000.00
50,000.00

Incremental Total
Cumulative Total

62,000.00
62,000.00

53,600.00
115,600.00

62,000.00
177,600.00

64,400.00
242,000.00

68,000.00
310,000.00

GRAND TOTAL (Direct + Indirect)

Total approximate expenses for first 05 months

285,000.00

366,000.00

496,000.00

640,000.00

805,000.00

120000
10000

805,000.00

b. The initial investment depends on strategic planning & number of resources,

Initial investment
805,000.00
Factor of contingency
845,250.00
Rick Factor/ Force Majeure
887,512.50
Total approximate expenses for first 05 months
887,512.50

5%
5%

c. Customer Survey & project look-up,

i. Extensive Travelling,
ii. References/ Contacts utilization & optimizzation,
iii. Negotiating,
iv. Relationship development,
v. Competition/ Futuristic vision,
vi. Market shall know you, advertizing, profile building & publicity,
vii. Continuous market survey & vigilance,
viii. Channels to be extablished to get more new visas & transfers.
ix. Avail advanced business strategic planning.
d. Huge competition - Region/ province-wise,
i. Local man-power suppliers,
ii. Timely availability of resources,
iii. Competitive rates to be offered,
iv. Promptness.
iv. Competitors may pursue the labourers too,
iv. Stand-by labourers.
e. Needs office & Camp,
i. Existing office can be utilizated,
ii. Camp facility - Neat & clean with cooking provision (& maintenance),
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iii. Bus/ coaster,

iv. Clinic with Ambulance.
f. Low Risk,
i. Manpower/ labourers are prime resources, required everywhere,
ii. Payable are monthly salaries/ wages + miscellaneous expenses,
iii. You are in market.
iii. Employee run-away,
iii. Accidents/ fatality,
iii. Undue losses.
g. Survival mainly depends on relationship (& money offered),
i. Name,
ii. Relationship,
iii. Bank reserves,
iv. Back-up funds.
h. Resource welfare
i. Like us, many need labourers, so labourers' welfare is important,
ii. Promotional programmes,
iii. Annual appraisals/ bonus,
iv. Benefit schemes can be practiced.
i. Good profit.
i. Everlasting sub-contracting business,
ii. Availability of more transfers,
iii. To source the manpower where risk is minimal,
iv. Survey & practice new business statistics.
j. Capital or initial investment recovery depends on time, customer counts or tie-ups with organizations, companies.

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"AMOUNT INVESTED" AGAINST "AMOUNT EARNED" BY THE END OF THE YEAR

j. Capital or initial investment recovery depends on time, customer counts or tie-ups with organizations, companies.
st

1 Month
Standard : 12 hrs a day, sr 15 an hour & 26 days a month

nd

0.00
0.00

Initial Investment

887,512.50

Average Monthly Expenses needed

257,500.00

Expenses for the 07 months (other than the Initial Investment)

Total Invested Amount by the year end (approximate)
Amount Earned by the year end (approximate)
Delta / Variance

COMPARISON

rd

th

th

th

th

th

th

th

th

2 Month
3 Month
4 Month
5 Month
6 Month
7 Month
8 Month
9 Month
10 Month
11 Month
0.00
46,800.00
46,800.00
39,000.00
46,800.00
46,800.00
46,800.00
46,800.00
46,800.00
46,800.00
46,800.00
0.00
14,040.00
60,840.00
117,000.00
187,200.00
187,200.00
187,200.00
187,200.00
187,200.00
187,200.00
46,800.00
46,800.00

60,840.00
107,640.00

99,840.00
207,480.00

1,802,500.00

2,690,012.50
2,009,280.00
-680,732.50

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163,800.00
371,280.00

234,000.00
605,280.00

234,000.00
839,280.00

234,000.00
1,073,280.00

234,000.00
1,307,280.00

234,000.00
1,541,280.00

234,000.00
1,775,280.00

ST "AMOUNT EARNED" BY THE END OF THE YEAR

th

12 Month
46,800.00
187,200.00
234,000.00
2,009,280.00

COMPARISON

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Expense optimization
1st Month

2nd Month

No. of New Labourers

No. of Transferred Labourers
Visa Fees
Air-tickect (~)
Transfer fees
Medical/ Health Insurance
Accommodation
Iqama fees
Clinic & Ambulance
Miscellaneous Expenses

1,500.00
10,000.00
5,000.00
50,000.00
20,000.00

Incremental Total
Cumulative Total

3rd Month

4th Month

5th Month

6th Month

7th Month

8th Month

9th Month

10th Month

11th Month

12th Month

10
3

10

12

15

6,000.00
450.00
3,000.00

20,000.00
1,500.00
10,000.00

24,000.00
1,800.00
12,000.00

30,000.00
2,250.00
15,000.00

10,000.00
6,000.00

10,000.00
20,000.00

10,000.00
24,000.00

10,000.00
30,000.00

216,500.00
216,500.00

25,450.00
241,950.00

61,500.00
303,450.00

71,800.00
375,250.00

87,250.00
462,500.00

Direct Expenses (Salaries of employess)

Indirect Eexpenses (Salaries of Office staff + stationary + miscellaneous)

12,000.00
50,000.00

3,600.00
50,000.00

12,000.00
50,000.00

14,400.00
50,000.00

18,000.00
50,000.00

Incremental Total
Cumulative Total

62,000.00
62,000.00

53,600.00
115,600.00

62,000.00
177,600.00

64,400.00
242,000.00

68,000.00
310,000.00

GRAND TOTAL (Direct + Indirect)

278,500.00

357,550.00

481,050.00

617,250.00

772,500.00

Factor of contingency
Rick Factor/ Force Majeure

772,500.00
791,812.50
811,607.81

3%
3%

Initial Investment
Average Monthly Expenses needed
Expenses for the 07 months (other than the Initial Investment)

811,607.81
120,900.00
846,300.00

120000
10000

Expenses after optimization

Direct Investment

Total Invested Amount by the year end (approximate)

Amount Earned by the year end (approximate)
Delta / Variance

EXPENSES' OPTIMIZATION

1,657,907.81
2,009,280.00
351,372.19

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