Everyone is big about cars in the Arabian Gulf. Whether it is a Ferrari, Jeep, Porsche or a more humble Fiat, people are keen on keeping their cars clean.
After working for years at oil companies and the World Bank, the Saudi-born Alawi Alsaqqaf teamed up with his cousin from the UAE, who shares his name, to set up Ibex Car Care.
“I own a car and I see the booming numbers of cars,” said Mr Alsaqqaf, the vice chairman of Ibex Car Care. “I was always trying to think of a good business idea and this was it.”
Research by Neilsen shows that car purchases in the UAE are expected to surge as three in four consumers said they plan to buy in the next two years.
Car makers, too, have reported increasing sales growth in the region last year on the back of a rising population and a credit glut, particularly in the UAE.
For instance, the South Korean car maker Hyundai is reported to have sold 22,192 units in the UAE last year. While the company did not provide a percentage growth figure for the country, overall sales in the Middle East are said to have risen by 3 per cent in 2014. Nissan, the Japanese car maker said that sales of its Patrol SUV in the region were up 90 per cent between April and November, from a year earlier.
While on the luxury side, Abu Dhabi was the biggest individual importer of BMWs last year, with a 68 per cent increase contributing to a 40 per cent rise in total UAE sales.
Ibex Car Care has an environmental edge over traditional car washing services – it saves water. The Ibex method only consumes 2 litres per wash, says the company. The appliance, or trolley, that the company uses to wash cars is based on its in-house research and development. Using traditional methods for washing cars, a household can consume up to an average of 150 litres of water per wash, according to the International Carwash Association.
“We studied all the available technologies and we found out that we can come up with better designs,” says Mr Alsaqqaf. “We made the design and we registered it as a patent for an industrial model at the Ministry of Economy.”
“We try to promote this as an environmentally friendly option. It’s a green product. At the same time, it achieves a very professional finish, not scratching the car.”
Ibex trolleys conserve water by using mist instead of hoses to spray soap and water over the car’s surface.
Ibex’s business model relies on saving time. It claims its customers would ordinarily spend 45 minutes driving back and forth to a petrol station’s car wash, but the firm sends its staff to a client’s work or residence to wash their car while they are busy. It sells subscription packages, the most typical of which is Dh200 for 16 washes a month.
The company also sells its trolleys to households and businesses and trains the buyers on using them.
“If you go to your office and find your car clean when you leave, that’s a service,” said Mr Alsaqqaf.
Believing strongly in the product, Mr Alsaqqaf and his business partner took personal loans to fund the project. They are hoping to receive financial support from the Khalifa Fund to help their expansion plans. The fund, set up in 2007, provides financial support to entrepreneurs who want to launch or expand a business.
“Hopefully when we get funds from Khalifa [Fund], which they promised us, we will have our own factory [to make the trolleys],” he said. “We have pride to manufacture this product in the UAE, and the design is our patent.”
Ibex manufactures its product at a fibreglass factory based in Abu Dhabi.
“Khalifa Fund loves the idea,” he added. “They think it is a good product, but they need to make sure that there is a demand for it.”
In order to demonstrate demand, Mr Alsaqqaf said he will be working over the next 30 days to collect letters of interest from the company’s major clients such as Emirates Transport.
“We have been talking to Emirates Transport. They came and they saw the trolley and they liked it. They said they want 100 pieces,” he said.
Despite being only eight months old, Ibex has ambitions to expand in the UAE and in the GCC over the coming two years.
“So far, we have one branch operating and four are in the pipeline. We are planning to have 60 car cleaners in 10 sites by the end of this year,” said Mr Alsaqqaf.
“Eventually we will be looking to franchise the business, which is something that we are working towards. But first we need to be strong here and establish the business.”
Saudi Arabia and Qatar will be two markets that Ibex Car Care will be looking at, according to Mr Alsaqqaf.
With regard to government support, Mr Alsaqqaf said that Abu Dhabi Distribution Co (ADDC) helped them to promote their green business at exhibitions. “We received support from the water and distribution company [ADDC]. They invited us to show our trolleys in the Water Summit in January and, there are more events to show our products,” said Mr Alsaqqaf.
With UAE residents’ daily water use about double the international average, Abu Dhabi is making strides to encourage more efficient use of its resources.
The capital raised its water and electricity tariffs on expatriate residents at the beginning of the year. It also started charging Emiratis for utilities for the first time.
Mr Alsaqqaf is also looking beyond the region.
“We will participate in the Las Vegas International Car Wash Show, which will take place in May,” he says.
Ibex is offering competitive prices on its services as the company strives to capture a greater market share.
Ibex charges about Dh20 per individual wash for small cars and Dh25 for bigger cars.
“I am putting up competition prices. We are starting at the bottom. We are small and unknown and we still want to capture the market,” he says.
“Luckily, the business has enough [market] share for everybody. There are plenty of cars.”
selgazzar@thenational.ae
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