Khaldoun Rashid Tabari: Serial entrepreneur at helm of DSI

Khaldoun Rashid Tabari has guided Drake & Scull International from a small private company into one of the largest publicly listed contractors in the region with a backlog of projects approaching Dh10 billion (US$2.7bn).

But the pivotal period of his life, he says, was the time he spent in a Palestinian boarding school.

"If there is anything that shaped my life, it was that school," the 61-year-old executive says, as he relaxes in the conference room of the company's Dubai office.

He was 13 when his father died from cancer, leaving him an orphan. His mother had passed away when he was two.

Raised by his eldest brother, he developed his roots and work ethic at the Friends Boys' School, a Quaker institution in Ramallah. He fondly recalls the rigid schedule, the early mornings preparing meals for his classmates and long hours of enforced studying.

"It's all discipline," says Mr Tabari, a Jordanian who was born and raised in the Palestinian Territories.

"That's boarding school. Now I can see why I'm so disciplined when it comes to work."

Mr Tabari was something of a serial entrepreneur before buying the Middle East operations of Drake & Scull, an established UK company, in 1998.

He has developed or owned more than 20 companies, ranging from franchising such retail businesses as Mrs Fields cookies and Thrifty Car Rental outlets to developing chemical and aluminium manufacturers.

"I enjoy the challenge," says Mr Tabari, a self-described workaholic, adding he is used to working 14 to 15-hour days.

"I've always looked at things and said, 'he's making money with it, can I do something with that?'"

Through the years, his businesses experienced fluctuations that have prepared him for the economic roller coaster of recent years.

"We went through times the cash was not there," he says. "We would be in a job and not get paid. Eventually things worked out."

The bad times helped him to develop his current business philosophy.

"If you are not prepared to lose, don't be in this business," he says.

"Adversity shapes people."

After graduating from the Friends school Mr Tabari went to the US to study engineering and business administration at the University of Colorado in Boulder, earning a bachelor of science degree in management.

After his studies, Mr Tabari went to work in the UAE with his two brothers, who ran Ranya Trading & Contracting, a diverse operation involved in electro-mechanical engineering, construction materials and pharmaceuticals.

He eventually moved to London, where he spent two years importing and exporting materials, such as cables,lighting and heavy machinery.

In 1982 he moved to Saudi Arabia, where he developed his own electrical mechanical services company. "I had the skills taught to me by my two brothers," he says.

"They exposed me to the pharmaceutical industry and the electrical construction business."

Mr Tabari spent 16 years based in the kingdom, until he saw the opportunity to buy a majority stake in Drake & Scull International (DSI), the UAE-based international arm of the UK mechanical, electrical and plumbing specialist, which traced its roots to Arthur Scull's plumbing business in Bristol, founded in 1881.

The company's Middle East operation was launched in Abu Dhabi in 1966. It was generating revenues of less than Dh100 million a year when Mr Tabari bought the company in 1998. Within a few years the UK operation changed its name to Emcor Engineering and Mr Tabari acquired the remaining stake in DSI.

Over the years DSI was involved in several big projects of the fast-growing region, including the Emirates Golf Club, the first PGA-approved course in the Middle East; the Jumeirah Beach Hotel in Dubai; and the Four Seasons hotel in Doha.

As the company grew, Mr Tabari established his reputation for long working days - at least with his family.

"He's dedicated his life to his work," says his daughter, Zeina Tabari, who works as DSI's chief corporate affairs officer.

"I can't recall any moment when work wasn't his priority and passion."

Mr Tabari and his wife, Rola, have two other daughters and a son.

In 2008, at the height of the construction boom in the UAE, DSI crossed a milestone when it offered 55 per cent of the company to the public, raising Dh1.2bn.

Since then DSI has been on a buying spree, acquiring companies in Kuwait, Qatar and Saudi Arabia. It has also opened offices in Oman, Egypt, Jordan, Syria and Libya, seeking new business.

Behind the scenes, Mr Tabari was leading a restructuring of the company, as the Dubai construction business ground to a virtual halt.

In 2009 DSI acquired Passavant-Roedgier, a German company specialising in water and sewage treatment, which became part of DSI's newly formed Water & Power subsidiary.

Another subsidiary, Drake & Scull Construction, was formed as the company began reaching out for civil contracts, where it operates as the lead contractor, instead of simply working as a mechanical, engineering and plumbing (MEP) subcontractor.

Four years ago, all of DSI's business was from MEP contracts; by the end of this year Mr Tabari expects a quarter of the backlog to stem from water and sewerage projects and half from civil contracts.

The company, which now employs more than 22,000 people, has also managed to expand its geographic base far quicker than most other UAE construction companies.

By the end of the year more than half of its work will be based in Saudi Arabia, with the company's annual revenue expected to rise to Dh2.5bn, a 35 per cent increase from last year.

DSI's net income is expected to reach Dh200m this year, a 23 per cent increase from last year.

"What we promised shareholders in 2009 despite turmoil, despite downturn, we are set to achieve," he says.

With DSI positioned for the future, Mr Tabari acknowledges he is looking for ways to slow down. He has talked about preparing a successor, somebody to take his place in the day-to-day operation of the company.

"I've reached an age where it has becoming critical for me to start enjoying myself," he says.

He says he has no hobbies and is looking for ways to "lose weight and get in shape".

He has been "dabbling" in golf and has been considering an around-the-world trip.

"He needs to start enjoying life," said Zeina.

"I think it is the right time to do this."

Mr Tabari doesn't argue the point. "I don't plan to keep working 14 hours," he says. "I plan to work a normal eight hours."

kbrass@thenational.ae