Majaal on finding space

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

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

IMNE: How did the company start?

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

IMNE: What does “Majaal” mean?

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

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

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

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

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

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

Al Arrayed: We created a new category in warehousing, and that is the SMEs. We were the first to enter this sector and we pretty much defined it. In that sense, I believe we have made a significant impact on the market, as we have raised the bar in offering serRoshe Run Kaishi