Beyout Investment Group to focus on expansion in service sector

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Abdulrahman Al-Khannah, CEO of Beyout Investment Group (BIG) talks with The Business Year (TBY) about how BIG Holding’s listing on Boursa Kuwait will transform the family office into a public company, enhancing growth opportunities, institutional interactions, and legacy preservation.

How do you anticipate the listing of BIG Holding on Boursa Kuwait influencing the company’s growth trajectory and plans?

Transforming our family office, Beyout Investment Group, into a public company is a crucial objective. This move not only aligns with our goals but also addresses a key challenge faced by family offices, as statistics indicate that only 20 percent last beyond the third and fourth generations. Institutionalizing our family office into a public company is therefore a strategic step toward preserving our legacy. It provides a structured framework that safeguards the company’s heritage. Beyond legacy protection, going public opens doors to significant growth opportunities, especially those driven by government initiatives. Public companies, in comparison to family offices, are better positioned to bid for government-driven opportunities.

Additionally, the transition to a public company enhances our interactions with financial institutions. The established government structures surrounding entities like the Capital Markets Authority (CMA), Boursa, Central Bank of Kuwait, and the Ministry of Commerce contribute to proper governance. This, in turn, fosters trust among financial institutions, creating a conducive environment for accelerated growth. Speaking of financial growth, the public company status offers various tools such as sukuk and share swap, enabling us to allocate funds strategically. Whether through acquisitions, opening new channels or bidding for opportunities, the financial flexibility of a public company outweighs that of a privately owned company or a family office. The decision to go public is driven by the desire to secure the benefits of being a public company and leveraging the enablers that fuel our company’s growth.

How is BIG Holding working to attract investment opportunities from foreign companies?

Our core strategy involves partnering with multinational companies to enhance the business landscape in Kuwait. Through initiatives such as exhibitions and my role as a panelist on business practices in Kuwait, we actively promote a conducive business environment. Becoming a public company amplifies our global visibility. International companies researching Kuwait invariably turn to the stock market to identify leading players. Transparency as a public company builds trust for these multinational entities, facilitating their entry and operations in Kuwait. I have personally witnessed the positive impact on international partnerships, as being public enhances visibility and attracts companies eager to collaborate. This move positions us for further growth in collaboration with such partners.

Could you provide a more in-depth overview of BIG Holding’s strategy?

Our strategy focuses on both vertical and horizontal expansion within our specialized service sector, primarily HR solutions. Vertically, we aim to add more labor-intensive services while staying close to our core capabilities. On the REH side, we excel in BOT and PPP projects, capitalizing on government initiatives. Horizontally, we are expanding geographically, having established in Saudi Arabia, Bahrain, and Qatar, replicating our successful Kuwaiti model. Regarding real estate, our current priority is a significant contract with the Public Authority of Housing Welfare (PAHW), M1 Project (Beyout Plus) a 250,000-sqm industrial development valued at approximately USD300 million. This project reshapes our REH strategy, requiring focused attention over the next three years. We remain open to opportunities in PPP and BOT, possibly taking a lead role based on our track record to attract more investors.

How does BIG Holding plan to integrate sustainability into future investments?

As sustainability pioneers, our company has consistently upheld the highest ESG standards while working with the US government, multinational companies, and the Kuwait government. This commitment is reflected in our long-standing adherence to top-tier sustainability practices. Notably, the aforementioned PAHW project underscores our dedication, with a specific sustainability clause in the technical evaluation. To remain competitive and maintain relationships with the government and sophisticated clients, sustainability is a crucial focus. As we move toward an IPO, targeting the premium market necessitates the issuance of a sustainability report. This requirement is not only mandatory but also integral to our overall strategy, contributing significantly to our success as a group.