Al Mawarid Manpower likely to report robust earnings for 2023: CEO

Logo of Al Mawarid Manpower Co.

Al Mawarid Manpower Co. is expected to post strong net earnings for 2023, CEO Riyadh Al-Romizan told Argaam.

He added that the company's strategy is focused on providing human resources (HR) services and new products compatible with the fast-paced lifestyle in the Kingdom and in line with the plan of the Ministry of Human Resources and Social Development (HRSD).

The top executive touched on demand for the HR sector in the Kingdom, which witnesses strong growth. He also pointed out that the prices of services are appropriate in all sectors and in different activities. Further, the CEO clarified the size of the company's contracts and market share.

Here are the details of the interview:

Q: How do you see prices and demand for HR services in the corporate, individual, and hourly rental segments in 2023? 

A: The HR sector witnessed growth in the past years on robust demand. We expect this growth to continue amid strong demand for all sectors’ services, given that the business and individual segments in the Kingdom are growing strongly due to the increase in strategic projects and population, which is directly reflected in the size of demand.

As for prices, they are studied at all levels to suit the industrial, services and commercial activities and be affordable to all. 

Q: What was your estimated market share in the HR services in the corporate and individual segments by the end of 2022?

A: The company's market share is estimated at nearly 12-14%. 

Q: What was the size of Al Mawarid's workforce in 2022 compared to 2021? What about the number of domestic workers availble for recruitment in 2023?

A: Thankfully, the company's manpower increased by more than 30% in 2022 compared to a year earlier. We expect it to grow 25% in 2023 compared to 2022. 

Q:  How many effective contracts are in the corporate sector? And what is their value until the end of 2022? What is the average expiry date for these contracts? 

A: The number of business segment contracts reached nearly 300, with approximately SAR 750 million in sales, and around SAR 260 million for the individual and hourly rental segments.  

With regard to the average expiry date of contracts, it varies according to segments and contract periods, but exceeds two years.

Q: What is your view on the company's 2022 financials compared to 2021?

A: Thankfully, sales increased by more than 40% and earnings grew by the same percentage. We expect robust earnings growth for 2023 compared to 2022 as the company witnessed exceptional growth in the last three years, driven by the growth of the Saudi economy, giant projects, as well as the trust of existing customers.

Q: What will Al Mawarid's new strategy focus on? What are the most prominent new businesses related to expansion and investment?

A: The company's strategy focuses on providing workforce, related services, and new products compatible with the fast-paced lifestyle in the Kingdom, in line with the HRSD strategy.

We believe that the HRSD strategy aims to improve the work environment and increase market governance, which will positively impact the HR services companies. This, in turn, will be a key factor for achieving this strategy and governance, as well as developing the digital services for related parties (human resources, client, and external offices) as a separate platform was created for each of them, which includes all services through which we can accelerate the pace of work.

Employment of Saudis and secondment of Saudi employees are a new activity provided to Al Mawarid's clients through Swaeed Co. We expect strong growth in this activity, due to market need and added value provided by Al Mawarid to employees and customers.