Techno Q aspires to be leading ICT solutions provider in Middle East; aims QR1bn turnover

Qatar Electronic Systems Company (Techno Q), which will soon be listed on the venture market of the Qatar Stock Exchange, is aiming to be QR1bn turnover entity as it seeks to expand domestic operations in cloud migration and cyber security; while planning foray into emerging markets and strengthening operations in Saudi Arabia as well as exploring options on joint ventures and acquisitions.

The company, which seeks to maintain its position as leading ICT (information, communication and technology) solutions in the Middle East, has already initiated discussions with liquidity providers as it gets listed on June 26 and is open to seek credit rating as it has also got long term plans to get listed in Saudi Arabia, where it finds immense potential.

"We are expanding our operations in Qatar into other (related) services as well into IT (information technology), cloud migration and cybersecurity," Zeyad al-Jaidah, Techno Q managing director and one of the founder members, told Gulf Times.

It is increasing efforts on the group’s expansion strategy to neighbouring markets, mainly Saudi Arabia, where the group established a 100% owned subsidiary at the beginning of 2023 to focus on AV, ELV and hospitality related projects, as well as Oman, where the group holds 98% equity interest in QIS to focus on similar projects in this neighbouring country.

On the expected turnover in the medium to long term, Abdulla al-Ansari, Techno Q executive director and co-founder, confirmed that the company is eyeing QR1bn in the next five years.

"If we expand service-wise and geographically, hopefully we can reach our aspiration (of QR1bn turnover)," he said.

In 2023, the company reported revenues of QR269.4mn at a compound annual growth rate of 17.1% over the past three years, and net income of QR19.7mn. As per its listing prospectus, revenues were QR330.92mn in 2022 with a vast majority of it coming from projects.

Over its 28 years of operations, the group’s portfolio include the design and execution of cutting-edge race electronics for a premier international racing competition in Qatar, the creation and setup of sophisticated security access control systems for a number of football stadiums for a globally recognized sporting event, and the supply and installation of a comprehensive CCTV and Access Control Systems for Qatar’s largest hospital.

"The growth is in technology because it must be upgraded every five years roughly. So this is going to be continuous," al-Jaidah said.

Highlighting its plans to expand into cloud migration, al-Ansari said the trend now is that first move to the cloud, then once you are on the cloud, there are lots of associated services in terms of security, in terms of applications and so on."

Asked whether the company has inorganic plans to grow; al-Jaidah said "we are actually now, as we speak, also looking into this possibility in order to grow a little bit faster, to try to acquire small companies and make a jump."

Asked about the potential acquisition, he said it has hired a consultant to start looking at acquisition in the region. He said the company is also open to forming a joint venture with companies that are not small.

"So, we are looking at all possibilities to jumpstart our expansion... These will jumpstart our presence in the market instead of starting from scratch, hiring a team and doing that, these services from scratch," he said.

Asked how the potential acquisition would be funded, he said "we have cash reserves as well. So, we can utilise part of that for acquisitions."

On listing, al-Jaidah said it will help enhance its visibility in the corporate world and "we don't need the money to expand... So we are not under that pressure."