Tariq Chauhan, CEO of EFSI AM Amenities Administration
stated Tariq Chauhan, CEO of the corporate EFSI AM Amenities Administration: The enlargement of huge tasks and the shift in direction of outsourcing companies to the non-public sector contributed to elevating ranges of demand for specialised services administration companies, which prompted the corporate to broaden its operations in numerous areas of the Kingdom.
Chauhan defined in an interview numbersThe corporate manages greater than 32 million sq. meters throughout 118 energetic contracts, making it one in every of a restricted variety of service suppliers able to offering built-in, performance-based options, particularly within the aviation, healthcare, schooling and trade sectors.
He identified that the corporate’s revenues rose from 338 million riyals in 2022 to 803 million in 2024, at a compound annual development charge of 54%, indicating that rising buyer calls for for high quality and digital transformation supported this path.
He confirmed that the corporate had obtained new contracts price roughly 3.6 billion riyals from 2022 till March 2025, along with contracts price greater than 930 million riyals till July 2025, mentioning that the present portfolio – with a big authorities affiliation – contributes to enhancing the sustainability of revenues and profitability.
And the main points of the assembly:
*How do you view the services administration market within the Kingdom, and what’s the place of EFSI AM when it comes to market share in the primary sectors?
– EFSI AM has performed a pioneering function in growing the services administration sector within the Kingdom, and has contributed to its transformation from a sector that focuses totally on operation and upkeep (O&M) companies to a results-based mannequin. As one of many first firms to pioneer the results-based services administration mannequin, EFSI AM has established itself as a frontrunner on this sector.
Immediately, the corporate is one in every of a restricted variety of services administration suppliers within the Kingdom with a broad scope of operations and the power to offer built-in, performance-based services administration options for giant and specialised tasks.
This consists of high-growth sectors corresponding to mega tasks, aviation, healthcare, manufacturing, schooling, and industrial services. As of March 2025, the corporate manages greater than 32 million sq. meters throughout 118 energetic contracts, whereas sustaining a buyer retention charge exceeding 90% over the previous decade.
By way of the strategic concentrate on long-term contracts, a confirmed monitor document of achievements within the discipline of venture implementation, and the corporate’s sturdy presence in numerous areas of the Kingdom, EFSI AM is now not simply one other firm out there, however somewhat a number one nationwide firm within the services administration sector that contributes to supporting the Kingdom’s transformation journey.
*How do you assess the upcoming developments within the services administration market over the following 12 to 24 months, and what indicators are you monitoring to measure development traits?
The services administration market in Saudi Arabia is witnessing a speedy transformation pushed by Imaginative and prescient 2030’s concentrate on infrastructure growth, mega tasks, and elevating service high quality requirements. The scale of the services administration sector within the Kingdom of Saudi Arabia throughout 2024 is estimated at roughly 109 billion Saudi riyals, making it the most important market within the Gulf Cooperation Council area.
The outcomes-based services administration market, the corporate’s important focus space, is among the key development drivers within the sector. This sector is predicted to witness development at a compound annual charge of 12.0% in the course of the interval from 2024 AD to 2029, outperforming the services administration sector normally, to succeed in 32% of the entire market worth, which displays the present pattern to formally undertake this mannequin out there.
The services administration sector within the Kingdom is predicted to witness outstanding development in the course of the subsequent 12 to 24 months, in gentle of the persevering with shift from conventional fashions that rely closely on manpower, to adopting performance-based built-in services administration options. This transformation is pushed by excessive operational demand in mega tasks, elevated outsourcing of companies to the non-public sector by authorities businesses, and rising buyer expectations relating to the standard of companies, digital transformation, and sustainability.
We imagine that the majority of the demand might be concentrated in 4 sectors, together with mega and main tasks, healthcare and schooling, industrial cities and logistics facilities, aviation and transportation infrastructure, in gentle of the rising want for specialised companies, excessive compliance requirements, and operational readiness across the clock.
To observe market motion and determine accessible alternatives, we comply with a set of future and rapid indicators, corresponding to tenders supplied, traits in contract costs out there, and bulletins of latest tasks.
*How are the corporate’s revenues and earnings distributed throughout the primary sectors and geographic areas?
EFSI AM’s monetary profile displays the range of its portfolio throughout sectors and geographic areas within the Kingdom. As of the fiscal 12 months ending December 31, 2024, 45.8% of revenues got here from the northern area, reflecting our sturdy presence there. The Western area contributed 24.5% of revenues, pushed by sturdy exercise in infrastructure growth tasks, whereas the Central and Jap areas contributed 19.9% and 9.7% of revenues, respectively.
On the stage of profitability, this balanced geographic distribution helps handle operational effectivity and enhance useful resource allocation throughout the Kingdom. Our capability to make use of property and workforce extremely effectively throughout the Kingdom permits us to keep up sturdy margins regardless of the inner challenges of a geographically distributed portfolio.
*In gentle of the sturdy competitors within the services administration market within the Kingdom, how was EFSI AM capable of keep its market share when it comes to the quantity and worth of latest contracts in comparison with rivals?
– EFSIM has a excessive capability to extend market share – even in a aggressive atmosphere – due to its strategic concentrate on offering built-in services administration options that present actual worth to clients. As a number one firm within the discipline of results-based services administration companies within the Kingdom, we take pleasure in sturdy relationships with key shoppers from mega tasks and main firms, based mostly on a confirmed monitor document of excellence when it comes to high quality of service supply, which makes us the popular companion for brand new tasks and tenders. That is evident within the buyer retention charge, which has exceeded 90% over the previous decade.
As well as, the corporate’s concentrate on high-growth, advanced sectors—notably mega tasks and the aviation sector—has contributed to enhancing its differentiation in comparison with different firms working out there. Between the fiscal years 2022 and 2024, revenues from mega tasks recorded vital development from 105 million riyals to about 395 million riyals, which displays our excessive capability to handle large-scale tasks. Likewise, the aviation sector achieved steady development, rising from 94 million riyals in fiscal 12 months 2022 to 177 million riyals in fiscal 12 months 2024, reflecting specialised capabilities and continued confidence from clients.
It ensures the diversification of the corporate’s enterprise sectors throughout mega tasks (49% of whole revenues in 2024), the aviation sector (22%), the oil and fuel sectors, schooling, commerce, and worldwide shoppers. Stabilizing revenues and profitability and decreasing dependence on one sector.
By leveraging operational excellence, long-term buyer relationships, and the power to broaden and mobilize sources rapidly throughout the Kingdom, the corporate has been capable of win and renew main contracts, whereas sustaining a powerful place to proceed doing so sooner or later.
*What are probably the most outstanding options of the corporate’s monetary efficiency over the previous years, and what measures are you taking to keep up steady revenues and profitability margins sooner or later?
EFSI AM has achieved sturdy monetary efficiency lately, as revenues greater than doubled, from 338 million riyals in fiscal 12 months 2022 to about 803 million riyals in fiscal 12 months 2024, with a compound annual development charge of 54.2%. This momentum continued within the first 9 months of 2025, as the corporate recorded revenues price 725 million riyals, a development charge of 24.7% in comparison with the identical interval in 2024.
Profitability additionally progressively improved, because the EBITDA margin elevated from roughly 9% to roughly 12%, whereas the online revenue margin elevated from 5.1% to six.4% throughout the identical interval.
These outcomes mirror the strategic diversification of sectors and a disciplined strategy to managing prices and bettering operational effectivity.
With the goal of guaranteeing steady revenues and defending margins sooner or later, the corporate will proceed to concentrate on securing built-in, long-term contracts, and repeatedly spend money on expertise and digital platforms to reinforce operational effectivity and disciplined administration of working capital. Mixed with excessive buyer retention charges, these efforts present a powerful basis for the corporate’s sustainable and worthwhile development.
*What’s the whole worth of present contracts underneath administration, and what’s the share of long-term agreements out of the entire contracts?
– Through the interval between fiscal 12 months 2022 and March 31, 2025, EFSI AM concluded new services administration contracts price 3.6 billion Saudi riyals. These contracts contributed to the worth of contracted tasks reaching 1.8 billion riyals, with the common remaining contracts reaching roughly three years, which displays our concentrate on long-term, multi-year commitments. We continued our development path via 2025, as we obtained extra new contracts price greater than 930 million riyals till the top of July.
As of March 31, 2025, we handle a powerful portfolio of 118 energetic contracts throughout all areas of the Kingdom and in key high-growth sectors. This diversified portfolio, with vital authorities involvement, offers visibility into revenues and helps sustainable profitability.
*Does the corporate have new tasks underneath examine or negotiation inside enlargement plans? What are an important strategic areas that you’re specializing in within the subsequent stage?
– We continuously examine and consider any new alternatives according to our strategic priorities for development. We primarily concentrate on enhancing the corporate’s presence in very important sectors corresponding to aviation, healthcare, and industrial services, on condition that our specialised experience in these sectors offers us clear aggressive benefits whereas persevering with to offer value-added outcomes to our current shoppers.
The corporate adopts a considerate and selective strategy aimed toward sustainably diversifying the enterprise whereas enhancing its core strengths.
