Building of a business empire

ONE of Bahrain's highly-respected entrepreneurial families has launched a commemorative publication to celebrate 70 years of success.

The book traces the progress of Y K Almoayyed & Sons from its inception in 1940 and provides a fascinating in-depth written and pictorial journey of business life in the kingdom.

It provides an insightful reflection into the family's early endeavours, significant milestones as well as highlighting its development.

Chairman Farouk Yousuf Almoayyed said: "From a modest one-man shop which opened in 1940 in the Manama Souq, this company has grown and developed into the largest, fully-integrated and diversified corporations in the Kingdom of Bahrain.

"Throughout 70 years of commercial trading, Y K Almoayyed & Sons Group has been regarded as a trusted partner and excellent service provider. The board of directors and management are committed to pursue the continued growth of this company to further develop and enrich Bahrain's diversified economy. We are working and planning for the future."

Born in 1918, Yousuf Khalil Almoayyed was the sixth child of a large family. He started trading at the tender age of six when he bought sweets and peanuts on his way home from school and sold them for a small profit to friends and family. He attended the Boys' School in Manama until he was 13 and was then tutored by a private teacher from whom he learned English.

As a young man, he began travelling with his father, a pearl merchant who traded between Bahrain and India, learning the skills, making contacts and acquiring responsibility for the valuable pearls.

Conscious of the changing times and, with the advent of cultured pearls, Yousuf, realised the natural pearl industry was in doubt and tapped into general trading. In 1940, at the start of the Second World War, he set out on a business adventure by establishing his own trading company, thanks to the 2,000 rupees (which was then about BD200) he received as a gift from his father.

He bought his first consignment of paints, tools, wires, light bulbs, coffee, tea and sandalwood from India and opened his first shop on Tijjar Road.

Before long he became the provisions supplier for the Bahrain Petroleum Company (Bapco) as well as the British Navy and Royal Air Force.

In 1946, Yousuf went travelling with a group of dynamic Bahrain businessmen and friends, all of them looking to secure exclusive sales rights for recognised international brand names which added stature and ensured financial reward through sales and after-sales services.

Their names became legendary. Ahmed and Ebrahim Kanoo, Salman Uchi and Yousuf boarded an Imperial Airways sea plane at Gudaibiya, which was the location for arrivals and departures of the 'flying boats' as they were then known, bound for London.

During this initial trip Yousuf secured his first agencies, including General Electric Company (GEC). He was later to bring the first refrigerators to Bahrain.

Looking to the future as always, Yousuf started sales trips to Saudi Arabia; he travelled alone and followed exhaustive schedules. His business flourished and grew steadily as he developed the export of his goods from Bahrain.

In 1952 he moved his shop to new premises incorporating three floors for trading and administration at Bab Al Bahrain. There was a sign outside which announced 'Distributors of 41 famous companies' and the store became renowned for supplying the sought-after GEC electric fans.

But business life was not all plain sailing. In 1962 his entire stock was destroyed in a warehouse blaze. Despite suffering huge losses, financially and emotionally, Yousuf fought back and gradually regained his former position of prominence.

Yousuf and his brother Abdulrahman decided to develop the site of their former family home on the coastline of Manama, the area now known as Government Road. An eight-storey building was designed and it was to become the tallest building in Bahrain.

In 1966 the new 'skyscraper' was ready for occupation. The company moved there from Bab Al Bahrain and YK's head office still operates from there today.

Yousuf's son, Farouk, the eldest of seven sons and the present day chairman of the group, joined his father also in 1966 at the age of 22. A university graduate with a degree in mechanical engineering, he was given the chance to 'learn the ropes' in the Bab Al Bahrain store as a salesman of everything they stocked, mostly tools and electrical appliances and also, later, cars.

There was no preferential treatment for him, all employees - men or women, local or expatriate - were treated the same. Sincerity was expected from everyone, plus self-discipline and a strict observance of time-keeping.

Farouk said: "My father had the perception to allow me some freedom whilst maintaining a watchful eye on the company's financial activities and expansion. Our partnership worked well. He was the backbone and strength of our business but he also had a restraining influence in the over-exuberance of my youth and enthusiasm."

Yousuf passed away in 1996.

Today the company employs 5,000 people. The group comprises of Y K Almoayyed & Sons, Ashrafs, Almoayyed Contracting Group and Almoayyed Properties. It represents over 300 leading brands from all over the world and has businesses in key sectors and markets including automotive, construction equipment and contracting, real estate, security, interiors, electronics and home appliances, beauty products and cosmetics, medical technologies, facility management, building materials, furnishings and luxury goods.

The impressive Almoayyed Tower, a 47-storey business and retail complex in Seef and iconic landmark of the Bahrain skyline, is part of the Almoayyed Properties portfolio.

As part of the 70 years celebrations, Farouk recently donated BD1 million to the health ministry to expand the nephrology department at Salmaniya Medical Complex. The gift will be used to provide operation theatres and beds at the intensive care unit for organ transplant patients and donors and help reduce the pressure on staff and the patient waiting list.

"We feel blessed that Bahrain provides quality healthcare for Bahrainis and expatriates," he said. "Moreover, it was my father's vision to contribute to the society and we, as his children, are trying to follow in his footsteps.

"It is the customers who have enabled our growth as one of the largest organisations in the region and it is our duty to pay them back as a sign of gratitude."

This article provides just snippets of the information featured in the book entitled Y. K. Almoayyed & Sons - 70 Years of Success. It will be distributed by the company to business partners and interested parties.