The Business Year

Rayyan Nagadi, CEO of SEDCO Holding

SAUDI ARABIA - Finance

Rayyan Nagadi

CEO, SEDCO Holding

Bio

Rayyan Nagadi became CEO of SEDCO Holding Group in December 2021. He brings more than 22 years of experience in both the public and private sectors, leading mega projects in banking, public utilities, petrochemicals, infrastructure and building materials. Prior to joining SEDCO Holding, Rayyan was the CEO of the National Center for Privatization & PPP where he played a vital role in developing the privatization institutional framework, laws, and regularly coordinating with government and semi-government agencies to promote public-private partnerships (PPP). Moreover, Rayyan was advisor to H.E the Minister of Finance and serves on the boards and executive committees of several companies and the CMA advisory committee. He holds a Bachelor’s degree in Applied Electrical Engineering from King Fahd University of Petroleum & Minerals (KFUPM), Dhahran, Saudi Arabia.

“While we have a well-balanced and diversified investment strategy in key global capitals, our key focus is very much at home.”

What is your company’s vision going forward?

SEDCO Holding is one of Saudi Arabia’s leading privately-owned investment companies. Established in 1976, SEDCO has come to the fore thanks to a diversified and prudent investment policy and strong corporate governance. SEDCO Holding’s investments have focused both on local and international markets. We have a track record of investing in key sectors within the Kingdom, and have recently been prioritizing those highlighted in the Saudi Vision 2030. Locally, we have focused on direct equity investments in companies that fit our vision and strategy and those of the Kingdom. For example, SEDCO Holding owned 50% of Nahdi Medical Company (NMC), the largest pharmacy chain in the MENA region, which has recently conducted an IPO. Internationally, our focus has been on income-generating investments that meet our ESG and ethical investing criteria. Our focus has always been Kingdom-first. Now, with national transformation plans underway, this focus is even more essential as regulatory changes, government initiatives and giga-projects unlock new opportunities. Real estate remains an important pillar for us. I also see opportunities in education, hospitality, and healthcare — sectors where we already have expertise and a strong footprint. For us, COVID-19 led to the realization that localizing the supply chain is critical for certain industries. Accordingly, we are planning to expand into infrastructure and logistics to support national industries such as petrochemicals nationalize, localize and secure some of their supply chains. Other opportunities include advanced technologies, food security and more. We want to explore partnerships with like-minded providers and create knowledge transfer to localize some processes. We have a clear philosophy on choosing our partners, and seek congruence on world-view, values and governance. We are currently exploring a partnership with the Public Investment Fund (PIF), whom we are looking forward to working with.

What are your priorities moving forward?

SEDCO Holding refines, optimizes and adapts its strategy frequently based on our conviction and market movements. We have recently finished a refresh, which builds on our previous achievements while positioning us for new opportunities. We have in the recent past exited some investments that, while performing well, were no longer in line with our focus sectors. These exits, in almost all cases, were beneficial to SEDCO Holding as well as the purchasing party, which is testament to the capabilities we build within the businesses we invest in. The IPO of Nahdi, in which we hold a majority stake, is an example of this. Our refreshed strategy will be announced soon.

Given that SEDCO is a sector leader in investment strategy, where do you see potential opportunities as the country heads toward 2030?

Our focus is education, healthcare, hospitality, and infrastructure, along with real estate. The groundbreaking giga-projects introduced by the Public Investment Fund have changed our approach to real estate. We will continue to invest in the sector, with a view to localizing supply chains and building capabilities within the nation.

Can you tell us about your international ambitions?

We use our asset management arm SEDCO Capital to explore passive international opportunities, which are mostly in income-generating assets. While we have a well-balanced and diversified investment strategy in key global capitals, our key focus is very much at home. Our shareholders, board and management are all committed to exploring opportunities in the Kingdom, and supporting the economic transformation being catalyzed by the Saudi Vision 2030. We want to create tangible socio-economic value and support the nation’s strategic goals.

What are your priorities for the rest of 2022 in the short term?

We are currently optimizing our organizational structure to respond even faster to new opportunities. We are looking to expand investments in key sectors that we want to focus on. We are also expediting the development of real estate projects, particularly those near Saudi Arabia’s west coast. These projects are important for our hospitality investment plans in the next few years.

What will be your legacy in this company?

I look forward to continuing SEDCO Holding’s status as a family-owned business that is a pioneer in environmental, social and governance (ESG) rigor. Strong corporate governance is embedded in our DNA, and ethical investment practices inform our choice of investments. I will continue SEDCO’s legacy of prioritizing investments that create genuine value for shareholders but also for our wider communities. I look forward to expanding our Shariah compliant investment values across new projects and markets. I also look forward to supporting and amplifying key SEDCO CSR programs, such as our flagship “Riyali” financial literacy program that has benefitted over 1.7 million people; and our “Badir” company volunteering program that our employees derive so much meaning and satisfaction from. In addition, we want to create job opportunities for Saudi nationals in our headquarters, and across the Kingdom, in line with the Saudi leadership’s policy of nationalization.

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