Want inside knowledge about one of the region’s largest firms for construction, civil engineering, and design services? Mohammed Al Kooheji joins us to talk about the inner workings of his field—and to give us some important advice for the future.
First of all, thank you for this opportunity. Would you mind introducing yourself briefly to our readers, and just giving them a short description of what you do?
My name is Mohammed Al Kooheji. I graduated from the University of Nebraska with a degree in mechanical construction management, then attended Kellogg University and Harvard before joining the family business here in Bahrain. I have deep experience in large-scale industrial, commercial, and planning projects in addition to project management. I handled planning and cost control at Kooheji Contractors for four years before being promoted to chief operating officer there.
What are the achievements you’ve been most proud of?
By grace of God, Kooheji has been in business for 43 years, with the most sophisticated projects happening over the last seven or eight years. Fontana Tower was a major milestone achieved by Kooheji, a $35 million design-and-build project. Another was the Alba smelter, a complicated structure with an 84-meter span. To erect beams at that height was quite challenging, and our method of installation, in collaboration with Motridal of Italy, was new for Bahrain. We were also part of the World Trade Center, which was erected with propellers by provided by us, in association with a Singaporean contractor.
Is there anything specific that makes Kooheji Contractors unique?
Kooheji’s founders are dedicated to the values of commitment, engagement, and respect. Kooheji has built an innovative value proposition within the market. We maintain an in-house engineering firm, and we are always looking at how a project can be positioned differently, in relation to all the competition being offered by other players in the market. We ensure that the buyer will get a good return, and that the project will be a viable and sustainable investment for them. In addition, Kooheji offers supply-chain management that’s well-structured in terms of international procurement, sourcing the best-quality items at the best rate, and reflecting the savings to the buyer. We can build something of very high quality at a very competitive rate, and that’s the challenge of the industry today. Our development philosophy offers an above-market, community-living lifestyle with all the amenities at very competitive rate.
What, in your opinion, are the current market shifts in the real estate industry due to the oil collapse?
I think it’s quite challenging for all market segments in the region. If incomes go down, the behavior of the consumer will also change: they will be very careful in terms of spending. People will look into energy-saving techniques: green houses, green buildings. They will look more into sustainability.
THE CHALLENGE FOR THE DEVELOPER WILL BE TO REALLY UNDERSTAND THE NEW MARKET BEHAVIOR TRENDS THAT ARE EMERGING: KNOWING HOW TO BALANCE THE PRODUCT, WHERE TO BALANCE IT, AND WHICH MARKET SEGMENT TO CATER TO.
Excellent answer. Do you think the shift you spoke about can help offer new opportunities to entrepreneurs and startups in Bahrain?
Definitely. All entrepreneurs and mega-companies have come out of recessions. Opportunities emerge from market transformation. Entrepreneurs observe new market trends, and are the first to cater to them. With e-commerce, entrepreneurs are identifying untapped opportunities with many underutilized resources, and they’re looking to create a win-win situation with mutual benefits for the end user. Before long, you have infrastructure and financial capability, and you can dominate the market. Today, it’s all about quick market shifts, intellectual property, and the ability to quickly read and adapt to change.
In your opinion, how does the real estate industry help to provide job opportunities?
As the market evolves, we have different jobs opening, and for entrepreneurs in Bahrain, this represents a real opportunity to look into facility management. In Dubai, for example, we see a market that has matured to tens of thousands of apartments in complicated complexes. It requires sophisticated knowledge to manage these properties, and landlords will be willing to hire people to manage them. In terms of job creation, you have sales, marketing, maintenance, operation—all of these job openings come with any property.
How do you think we can encourage local Bahrainis to get into the building and construction industry rather than relying on foreign workers?
I’m a member of the training committee, and we have identified jobs that require certain skill sets that are currently being done by expats with very good pay. What we have discussed with the Ministry of Labor is how to improve awareness of these jobs at the high-school level.
One of these opportunities is in national document control. Any bank or other organization will need professional document controllers who can make a professional archive or system for that enterprise. Another skill set we have identified is in civil engineering.
TODAY, WHAT MAKES THE U.S. OR EUROPE DIFFERENT IS THAT THEY ARE VERY FOCUSED AND PRECISE. APPLICANTS DON’T NEED TO KNOW EVERYTHING—THEY NEED TO KNOW SOMETHING, BUT WITH PERFECTION.
This is true in civil engineering. In the end, if you graduate without specializing, it will take you a long time to acquire the required niche knowledge and be able to contribute to the industry. Another area of specialization is the accuracy engineer, responsible for quality assurance, quality control, and setting the benchmark for an organization.
Startups and entrepreneurs generally believe that the real-estate industry is very traditional and conservative. How do you think we can change that mentality?
Real estate has proven that it’s a safe haven for investors. If you look at any statistics from the last 30 or 40 years, you see that real estate has always escalated, despite any uncertainties or instabilities in the market. I would say that looking at real estate from a very narrow perspective is the problem. We need to view it in terms of catering to the logistics of different service sectors, like tourism and entertainment.
What do you think Bahrain has too much of?
Maybe it has too many shopping malls. We can see this trend emerging, and it is alarming, actually—when you see the footprint of the malls, and the new behavior of all the youngsters doing all of their purchasing through the Internet.
What do you think Bahrain has too little of?
I think we lack public beaches. When tourists come to Bahrain, the first thing they see is an island. They have the feeling they can access water sport activities, everything related to the sea. Unfortunately, that’s not the case. We need very nice elevated walkways next to the sea, so you feel you are on an island. We need entrepreneurs offering food, sports activities, water skiing, boating, fishing, snorkeling, deep-sea diving.
Expats aren’t impressed by high-priced towers. They have that in their hometown. They want simplicity, because they are coming out of this very materialistic lifestyle. They just want to get out of their daily routine and pressure. Take them out to the desert, take them out to the sea, expose them to the culture behind one of the oldest civilizations in the Gulf. We have so much to show these people.
Thank you very much for this opportunity.
Sure. Thank you!