Al Muhaidib Group

ABOUT THE FOUNDER

Abdulkadir Al Muhaidib was born in 1923^[7] into a merchant family who is originally from the Najd area in modern-day Saudi Arabia.^[8] Many Najdi families had been migratory traders for centuries, and their livelihood depended on trading in Basra, Iraq, where they would spend most of their time, visiting their homeland on an annual basis. Abdulkadir’s family settled just outside Basra in the town of Al-Zubair, which was largely developed and inhabited by Najdi families to the extent that it has been referred to by historians as “Najd on Iraqi soil.”^[9]

FOUNDING STORY

When Abdulkadir was in his late teens in 1940, he embarked on a business venture with a simple supplies shop in Al Zubair.^[10] Three years later, he pivoted to the comestibles trade, opening his first food store.^[11] Proving successful, he decided to expand his business activities once again, this time in partnership with his brother Abdullatif Al Muhaidib.^[12] Together, the brothers in 1946 established Abdulatif and Abdulkadir Al-Muhaidib Company,^[13] which specialized in trading agricultural produce and livestock from across Iraq and the Indian subcontinent, China, and Southeast Asia. As their business grew, they established an office in the Iraqi capital of Baghdad, while maintaining their Basra headquarters.^[14] Following the 1958 revolution in Iraq and the severe economic aftershocks,^[15] the two brothers were forced to separate, and Abdulkader headed to Dammam in the east of Saudi Arabia where he continued to pursue the business.^[16] By then, he had three sons — Suleiman (born 1956),^[17], Emad, and Essam (born 1959)^[18] — and one daughter, Tamader.

GROWTH PHASE

At this stage, the business was renamed A.K. Al Muhaidib & Sons Co.^[19] and focused in particular on the rice importation and distribution market.^[20] This increasingly profitable branch of their operations 1959 later became known as Mayar Foods.^[21]

Al Muhaidib’s move back to the family’s Saudi homeland happened at an exceptionally propitious time. The oil boom of the 1960s and 1970s in the kingdom provided a broad array of new business opportunities,^[22] and family businesses already established in trade with small “startups” spearheaded the diversification and massive expansion of the local economy.^[23]

In 1964, the Al Muhaidib family took a significant step toward business diversification with the establishment of the Hoshan Group.^[24] In 1971, they established Masdar, a building and construction materials company.^[25] Building on their long-runningoperations in the wholesale food trade, in 1977 they ventured into retail food sales, launching another new company, Al Mehbaj.^[26] This was followed two years later by Savola Investment Holding Group, encompassing many brands in the food and retail sectors.^[27] In 1979, after the founder’s son Suleiman Al Muhaidib joined the operations, the business was renamed A.K. Al-Muhaidib & Sons Group of Companies.^[28]

In 1980, Bawan Holding was founded as the result of a merger between Abdullatif & Mohammad Al Fozan CO. and Abdulkader Al Muhaidib & Sons General Trading Company.^[29] This marked the family business’s entry into the industrial and infrastructure sector, which later grew to include 18 subsidiaries in construction, power and water, manufacturing, utilities, cooling solutions, energy and chemicals, manufacturing and furnishing, transportation and logistics, and real estate.^[30] In 1996, the group established the Al Romansiah restaurant chain, offering traditional Saudi Arabian cuisine.^[31] Founder Abdul Kader passed away in 1996,^[32] leaving behind his three sons to lead the business.

One year later, Al Maha General Trading, a food sales and distribution operation, was established in Baghdad, Iraq.^[33] In 2001, the family business began to arrange a series of distribution licenses and joint ventures starting with Nestlé, one of the first European corporations to conduct direct sales and distribution operations in the Kingdom of Saudi Arabia.^[34] In 2009, the company opened the Al Arkkan Training Center to provide food safety and environmental health programs for its workers.^[35]

TODAY

Still headquartered in Dammam, Saudi Arabia, the group runs 35 key subsidiaries^[36] and over 200 branches internationally,^[37] with operations in the UAE, Kuwait, Algeria, Iraq, Turkey, Morocco, South Africa, China, and Vietnam.^{[38] [39] [40]}

From the family’s second generation, Suleiman serves as Al Muhaidib Group chairman, his brother Emad is vice chairman, and youngest brother Essam is CEO.^[41] The founder’s daughter, Tamader, is vice president of Al Muhaidib Social Foundation.^[42] In addition, members of the third generation are involved in the business operations in different capacities: Musaab bin Suleiman is CEO of Al Muhaidib Entertainment Ventures, Abdullah bin Emad is the investment director for food and consumer investments, and Essam bin Majid is the group’s vice president of industrial and infrastructure investments.^[43]