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1. §§§§§§§§§§
OGER SYSTEMS
Business Plan
2013
Document Authors:
Wael Ghazzawi
Contributions by:
Nidal Hamdan
& Fadi Halabi
www.OgerSystems.com
Oger Sys. Oger Systems Ltd. is a technology system integrator that pro-
vides Turn-Key solutions and services starting from concept,
NEXT GENERATION SOLUTIONS design, implementation to comissioning wrapped with Project
Management Methodology.

2. INTRODUCTION
U nderstanding the government planned future city
expansion of both Jeddah and Makkah allows us to
To do so we need to first start by building financial return
models that reflect the investment-cycle for a specific
better forecast the expected categories, distribution, and category of projects (“Hotels, Universities, Schools, etc.“) in a
size of business opportunities that will become available specific region (Makkah or Jeddah) highlighting the factors
at the different growth phases. And as such would allow us that sets or drives the delivery deadline, while integrat-
to create a customized set-up that uses selective brands ing the effects that certain region specific risks might pose
and develops industry specific services that would insure on our investment (Floods). From that point we can then
providing a selective edge on competitors which is integral define the project portfolio that is most profitable and has
for securing Mega-sized projects that follow international the least amount of risk for maximum returns on our invest-
standards. ment.
The size of our investment should however have an upper Furthermore we will be introducing a new prototype Arial
limit that is a set reflection of the company’s planned size based survey software system that allow us to analyse vast
of growth, which maintains an acceptable ratio between our areas and pin-point areas of interest with potentially high
trained & integrated staff to the Man-Power infrastructure yielding projects in addition to providing an initial idea
required to implement these projects. about the type, size, and construction phase of the project
before even having to visit the site in person.
At the same time the investment needs to be distributed
over a multi-category multi-sized type of acquired projects In the sections to follow we will discuss in depth the strat-
that mitigates risk by allowing a smooth cash flow-cycle egy we are proposing, while presenting a list of upcoming
that prohibits large projects from hogging all the liquidity in major projects specific to Jeddah - Makkah region.
favour of small short cycle projects that offer faster returns
with lower margins.
2

3. MAJOR GROWTH ZONES - JEDDAH
J eddah Municipality released a draft of its upcoming
strategic 20 years growth Plan reflecting the zone dis-
services tailoring to both Hajj and tourism where by the
distance between Jeddah and Makkah is reduced by the high
tribution and land use schema to be followed (Please refer speed train services that are in close proximity constituting
to figure 1 on the next page). a second hot area for future growth - (Refer to Opportunity
Zone 2).
The major change was the creation of a new international
Airport (KAIA - King AbulAziz International Airport - Jeddah) Note: Additional Opportunities will be presented below.
located closer to Obhur Creek. This effectively allowed the
move of the city business center to Obhur Al-Shamaliah ( In addition the municipality has created a list of areas that
21°43’43.40”N, 39° 5’24.27”E) where the new Kingdom tow- are considered a priority for investment and growth which
er is being built in a Mega-Construction Zone surrounded by consist of the following: Thuwal, Dhaban, Asfan which need
an entirely new city -(Refer to Opportunity Zone 1). to be investigated further to understand the type of invest-
ment they will attract based on their proposed purpose in
More importantly the municipality is planning to release the overall picture.
the old airport land space in favour of urban development,
with an area of around 1,200 hectares of vacant strategi- A small highlight of the potential project opportunities that
cally located land space surrounded by several important are currently or will soon be available in Jeddah Region will
historical, cultural and educational districts as well as other be presented in the upcoming pages with a short summary
proposed developments. The site is due to become the larg- of the logistical value of each opportunity.
est single development in jeddah history which will be in
close proximity to a proposed major transportation hub, that
is directly adjacent to the expanded national raid network.
Making this area a prime investment location for hotels and
3

4. 4

5. OPPERTUNITY ZONE 1 - HHR - JEDDAH
CENTRAL JEDDAH
H arameen high Speed Rail project (Jeddah Station) is also known as the “Western Railway” or “Mecca-Medina high speed
railway”, is a 449.2 kilometres (279.1 mi) high speed inter-city rail transport system under construction in Saudi Arabia.
It will link the Muslim holy cities of Medina and Mecca via King Abdullah Economic City, Rabigh, Jeddah, and King Abdulaziz
International Airport. It will connect with the national network at Jeddah. Its primary purpose is to facilitate the inter-connec-
tion between Makkah and Maddinah (the Harameen) facilitating pilgrimage.
Logistical Value General Information
The project is one of 4 building hot spots in Jeddah with a gov- Engineering designs have been prepared by Foster + Partners
ernment investment value of over 773 Million USD, and Buro Happold. According to SRO, the stations will be ‘to the
highest international standards and specifications’, with ‘aestheti-
Project Duration cally iconic’ designs which take into account Islamic architectural
traditions. The stations in Makkah and Madinah will be ‘consistent
From: Q1 2011
with the religious dimension’ of the holy cities.
To: Q4 2014 (Delayed)
Status: Under Construction - Bidding for LC Systems
Main Contractor
Opportunity Saudi Oger - El-Seif Engineering Contracting Company.
Nidal Hamdan will be forwarding the information for the bid
requirements for El-Seif which is a saudi Oger subcontractor.
5

6. OPPERTUNITY ZONE 1 - OLD AIRPORT
CENTRAL JEDDAH
T he decision to reutilize the old airport for urban development made available 1,200 hectares of vacant strategically lo-
cated land space surrounded by several important historical, cultural and educational districts as well as other proposed
developments. The site is due to become the largest single development in jeddah history which will be in close proximity
to a proposed major transportation hub, that is directly adjacent to the expanded national raid network. Making this area a
prime investment location for hotels and services tailoring to both Hajj and tourism where by the distance between Jeddah
and Makkah is reduced by the high speed train services that are in close proximity constituting a second hot area for future
growth
Logistical Value General Information
No Information available yet. No Information available yet
Project Duration Main Contractor
From: - No Information available yet.
To: -
Status: -
Opportunity
Expected to be a hotel dominated region that service the Hajj
season and pilgrims.
6

7. OPPERTUNITY ZONE 2 - JCPD
CENTRAL JEDDAH
J eddah Center Project Development is dedicated to redeveloping the central business hub of the city of Jeddah and pre-
serving the historic area, the project will be the largest city center urban project in the Arab world. Jeddah Center Project
has a land area of around 6 million square meters and the project will result in a total built-up area of 12.7 million square
meters. In co-operation with the Jeddah Municipality, the vision is for the Jeddah Central District to once again become the
heart of the city. The project will economically rejuvenate Jeddah Central District, create world class business, residential and
retail facilities, revive the historical and cultural heritage of Jeddah, purify its marine environment and reunite the city with
the sea. The end result will create job and housing opportunities for Jeddahs young population, 60 % of which is under 25.
Logistical Value General Information
The project is one of 4 building hot spots in Jeddah with a gov- The consortium includes world renowned companies such as
ernment investment value TBD USD, Solidere International, the company behind the re-birth of Beruit
city center, the Urban Development Company, a Saudi real estate
Project Duration developer engaged in multiple mega projects in the Kingdom, and
renowned regional partners such as Siraj Capital and Al-Tijaria &
From: -
Venture Capital Bank.
To: -
Status: Under construction.
Main Contractor
Opportunity No Information available yet.
A new city center consisting of business towers, water front, flood
gateways, new infrastructure, Malls, Hotels, Entertainment facili-
ties. 7

8. OPPERTUNITY ZONE 3 - SPORT CITY
OBHUR AL-SHAMALIYAH
K ing Abdullah Sport City (KASC) consists of a 60,000 seats football stadium, a 2,000 seats multi-sports hall, external
athletic stadium with a 1,000 seats tribune, several training fields (football pitches, tennis courts, athletic sports,…), a
mosque and parking for 45,000 cars. The Major size of the business opportunity will be centered around Public Address,
Audio-Visuals, Fire Alarm, CCTV, and news reporter rooms.
Logistical Value General Information
The project is one of 4 building hot spots in Jeddah with a gov-
On 12th September, 2011, BESIX signed the Contract for the
ernment investment value of over 552 Million USD,
construction of the King Abdullah Sports City Project. In a 50/50
joint venture with Al Muhaidib Contracting, BESIX will develop the
Project Duration
KASC Project in Jeddah Saudi Arabia.
From: Q3 2012
To: Q4 2014 (October 31, 2014)
Status: Under Construction - Concrete Phase Main Contractor
Aramco - (Al Muhaidib & BESIX)
Opportunity
Nidal Hamdan is currently working to set a meeting with BESIX
since Al-Muhaidib is only responsible for concrete work.
8

9. OPPERTUNITY ZONE 4 - KT - CITY
OBHUR AL-SHAMALIAH
T he expansion and growth Plan set for Jeddah City requires the creation of a new business center that utilized the
unused space at Obhur Al-Shamaliah which is logistically located close to the new KAIA international Airport and KASC
Sport City. This new area has a central peace which is the Kingdom Tower but more importantly it is surrounded by an entirely
new city similar to KAFD in Riyadh with multiple Tower, Hotels, Hospitals, Malls and an entirely new infrastructure to service
it. Moreover the location is considered as one of the major attractions for tourism in Jeddah, which allows us to predict that
the major distribution of building will be for tourism services with Hotels and Malls constituting the majority of the buildings.
Logistical Value General Information
The project is one of 4 building hot spots in Jeddah with a gov- The partners of Jeddah Economic Company (JEC) are Kingdom
ernment investment value of over 15 Billion USD, Holding Company, Mr. Samaual Bakhsh, Abraar, International Hold-
ing Company, prominent Jeddah businessmen Mr. Abdulrahman
Project Duration Hassan Sharbatly and Saudi Bin Laden Group (SBG). The capital of
JEC is made up of SR8.8 billion in land value, assets that are SR7.3
From: Q4 2011
billion, plus SR1.5 billion in cash contributed by SBG that further
To: Q1 2017
demonstrates their confidence in this extensive project. The Tower
Status: Under Construction - Concrete Phase
will be surrounded by a new City with its own hotels and towers.
Opportunity
Main Contractor
The real value for us is actually in the vacinity towers and hotels
TBA
being constructed where we can secure a full Solution Contract.
9

10. MAJOR GROWTH ZONES - MAKKAH
M akkah as a city is built around the holy tourism indus-
try and as such the majority of construction projects
This continues seasonal demand creates a business environ-
ment that is short-cycle low-risk fast-return with small to
are either Hotels or Residential houses that are active medium investment values where by a standard full system
seasonally. This fact presents an interesting component to hotel would have a sale opportunity value of around 14
projects that are specific to the Makkah region, where by Million SAR.
their date of completion is actually driven by the season
start date of major holy events such as Hajj. This is why no This means that when we decide on the type/location and
hotel in Makkah would have a construction span longer return of our to be acquired projects we need to take into
than 2 years and the period becomes shorter as the property consideration the profit margin versus the investment peri-
becomes closer to the haram location. od. Since and if the selection of the client was done properly
the rate of return from these small investments provides a
The high demand and low availability of housing in the holy very profitable model for Oger Systems to grow.
seasons creates a highly competitive environment for deliv-
ering on time to maximize the profit returns of the investor Furthermore we highlight the fact that most construction
which is an insured 400% reservation rate as a minimum, sites in our field would actually provide the physical cable
we note here that the pervious value is not a mistake but pulling via their own child company meaning that our
is a result of standard hotel policy in Makkah where by implementation phase is reduced to testing commissioning
they modify the room layout to fit the maximum number of and programing which can be fit in around 4 month at most.
beds in the available area as such a hotel with 300 single
bed rooms would actually contain 1200 people during the
season as a minimum.
10

11. OPPERTUNITY ZONE 4 - MAKKAH
ANY
U nlike Jeddah, Makkah has a continuous build spree of hotels and residential housing in nearly any free space available
and as such you would see hotels in an otherwise uncommon non-logical place this is a result from having Hajj Offices
do the reservation and provide transportation to and from The Hajj Fara2id. This leads to an interesting setting whereby
and as a result of the distribution complexity and high build rate resulting in a market that is simply harder to survey and
report resulting ultimately in less competition and higher profit margins. Add to that the lack of IT solution service providers
whereby IT companies have the choice of selecting which projects to take to maximize return based on their limited maxi-
mum man power.
Logistical Value General Information
Project values differ based on the solutions required by the hotel A sample of these projects that are common to Makkah and Ma-
but are usually between the value of 6 Million and 14 Million SAR. dinah are Bazel Al-Kheir 3, Al Rayan, Jabal Al Kabaa, Al Shurfah
Project, Burj Al-Jiwar, Multlaq Tower, Abraj Al-Bait, etc...
Project Duration
Main Contractor
From: Anytime
To: Next Year at Ramadan or Hajj season. Private Company (IBS, etc...)
Status: -
Oppertunity
Electronic GIS Survey followed by site visits allow us to pin-point
potentially rewarding areas where multiple hotels are being
11
constructed simultaneously.

12. PROJECT PIPELINE
§ SAR 62,161,757.96
SAR 12,500,000.00
TBA
TBA
S I
OTAIR Group
SAR 5,900,000.00
S I Al-Khoreji Co.
PROJECT PIPELINE
The Chart Above reflects in 3 colors the project pipe- Our plan moving forward is to have 64% of our business
line for Q1 and Q2 of 2013, in which the color Green opportunities per year in small investment cases, which
designates in Bid Projects, the color Blue designates allows a high profit margin in a short return cycle imple-
already won projects being implemented, the Color mentation project. This allows us to become more agile as
Purple reflects newly won projects that will have a the liquidity will not be held for elongated period in MEGA
start in implementation in the designated Quarter. project scenarios.
The total sell value of the above projects totals 74 mil-
lion SAR not including the selling value of the upcom-
ing KAP 1 which is undergoing final PO generation. Of
which the total profit is larger than 11 million SAR.
12

13. UPKEEP SPENDING PLAN
The following information specified below reflect the upkeep cost for maintaining and operating Oger Systems’ Jeddah Office
that coveres the area in and around Jeddah province and Makkah province for the purpose of detecting upcoming projects
and generating the financial paperwork required for the targeted projects.
Oger Systems - Jeddah Office 2013 Q1 Q2 Q3 Q4
Office Rent (Jeddah) 75,000.00 SAR 0 0 0
Office Supplies (Consumables) 1500.00 SAR 1500.00 SAR 1500.00 SAR 1500.00 SAR
Design Workstations (1 units) 8,250.00 SAR 0 0 0
Design Software (NetformX License - 1 seat) Quotation R. 0 0 0
AutoCad 2013 (License - 1 seat) Quotation R. 0 0 0
Fax Line (Cancelation) -2000.00 SAR -2000.00 SAR -2000.00 SAR -2000.00 SAR
PABX Service (Cancelation) -325.00 SAR -325.00 SAR -325.00 SAR -325.00 SAR
Internet Solution - 6MB - Unlimited (Replaced) 380.00 SAR 290.00 SAR 290.00 SAR 290.00 SAR
Local redundant Back-Up - 6 TB - Network Drive 0 0 0 0
Car Rent (1 units) 3800.00 SAR 3800.00 SAR 3800.00 SAR 3800.00 SAR
Project Acquisition - Fuel Cost (estimate) 1200.00 SAR 1200.00 SAR 1200.00 SAR 1200.00 SAR
Project Acquisition - Mobile Calls (estimate) 800.00 SAR 800.00 SAR 800.00 SAR 800.00 SAR
22” LCD Screen (6 units) 4800.00 SAR 0 0 0
NoteBooks (4 units) 12,000.00 SAR 0 0 0
Annual Spending Total = 130,500.00 SAR
(Excluding Licenses)
1.2%
TOTAL UPKEEP VALUE
The Spending Plan presented above covers the requirements for
operating an actively project seeking office where by a large per-
centage of the spending allocation is directed towards the opera-
tions required to establish communication with clients and to process
The Up-Keep Value represents 1.2% of the required paperwork to generate a successful bidding solution.
current Net Profit return taking only Q1 & Q2
into consideration and is expected to shrink
to a value of 0.8% by the end of Q4.
13

14. ORGANIZATIONAL CHART
Ali Zimmo
SETA Manager
Nidal Hamdan Wael El-Ghazzawi
Wester Region Branch Manager Western Region Project Manager
Fadi Halabi Raafat Hassanien
Sales Manager Sales Manager
Jeddah - Makkah Madinah
KAI - CCJ Project IBS- ARAC Hotel Al-Hamraa Hotel
Project Manager Project Manager Project Manager
Site Forman Site Forman Site Forman
Technicians Technicians Technicians
KAP 1 - Maddinah KAP 1 - Makkah KAP 1 - Jeddah
Project Manager Project Manager Project Manager
Site Forman Site Forman Site Forman
Technicians 32 SITE Technicians 16 SITE Technicians 14 SITE
14

15. WORKFLOW CYCLE
(7)Technical Feedback
(4) Project Evaluation
Wael El-Ghazzawi
Western Region Project Manager
Nidal Hamdan
Wester Region Branch Manager
(3) Oppertunity Documents
Fadi Halabi
Sales Manager
(9) Financial Proposal
(1) Project Detection
Jeddah - Makkah
(2) Client Evaluation
(5) Deal Estimation
Raafat Hassanien
Sales Manager
Madinah
(6) Design Generation
(8) Technical Proposal
Oger Systems
Design Team
REPORTING HIERARCHY
The organization chart on page 12 reflects the report- specified consultants which are mostly centralized in Jed-
ing and responsibility chain of command that will dah.
be in effect on the western region (Makkah, Jeddah,
Madinah). The Western Region Project Manager will handle the as-
sessment of potential projects and identifying the unique
The Sales department will be centralized in Jeddah technical difficulties specific to each site this will be
which is the most logistical location to cover all 3 reflected in the implementation costs of any out-going Bid.
provinces taking into consideration the project hot
spot distribution, where the structure calls for a per- In addition he will handle the Planning, Coordination and
manent presence of a sales manager in Madinah and selection of the Project Managers, formans and technicians
another sales manager to cover Jeddah and Makkah. specific to each acquired project while providing high level
technical direction for the different technologies being
Both Sale managers will be reporting to the Western deployed and handling the logistics of shifting man-power
Region Branch Manager, who will coordinate and as- between sites to keep the overall delivery deadline of all
sist in the communication and information transfer projects on track.
between the sites which are mostly located in Makkah
and Madinah and there respective owners and 15