Mirza Aijaz Baig, CEO, Ahlia Chemicals Company
Kuwait, often hailed as the pearl of the Middle East has long been known for its rich history of trade and bold entrepreneurial spirit. By the 1980s, the country was standing on the brink of a new era, driven by the explosive growth spurred by oil revenues in the previous decade. This unlocked immense possibilities, and the Kuwaiti government set its sights on creating world-class infrastructure that would place the nation on the global map. However as Kuwait’s skyline began to take shape with ambitious infrastructure projects, there was an evident gap in the availability of specialized chemicals to support this construction boom. At that time, Kuwait was a premature market in terms of construction materials, relying heavily on imports that often fell short of the region’s specific needs.
Thus, to bridge this gap and serve the market needs, a group of determined visionaries came to the forefront. They analyzed the existing market demand and future scenario given the growth pattern of Kuwait and its specific needs across the construction sector, and this led to the establishment of “Ahlia Chemicals Co.” Their mission was clear: to build a company that would serve as the region’s one-stop shop for all construction and specialty chemicals. With Kuwait’s economy thriving and foreign competition nearly nonexistent, Ahlia Chemicals was uniquely positioned to thrive. The founders were motivated by the oil boom and the Kuwaiti government’s push for self-sufficiency in industrial goods. They sought to fill the void in the market, not just to capitalize on the country’s growth but to actively support it by ensuring that the materials needed for construction were not only accessible but also tailored to the local environment. Ahlia Chemicals quickly became synonymous with quality and reliability, playing a crucial role in the construction of Kuwait’s modern skyline.
Navigating Crisis with Resilience and Strategic Vision
Shortly after the inception of Ahlia Chemicals in 1981, Kuwait witnessed a major crash of its unofficial stock market “Souk Al Manakh”, which was one of its kind in the history of the Middle East. The crash sent shockwaves across the region, triggering a massive financial crisis that reverberated through society as almost every family in Kuwait felt the impact, and the country was plunged into a deep recession. AhliaChemicals, still in its infancy, found itself navigating through a fragile economy that threatened the survival of even well-established businesses.
While still reeling from the aftershocks of this financial catastrophe, the company faced yet another devastating blow—Iraq invaded Kuwait in 1990, bringing the country to a complete standstill. By the time the invading forces were driven out by a US-led international coalition in 1991, the retreating Iraqi army had torched more than 700 of Kuwait’s oil wells thus hampering the infrastructure reconstruction program due to low oil production and economic downturn. Yet, Ahlia stood firm. With an unwavering commitment to serve the local market and backed by the steadfast support of its parent company, it not only survived but made a remarkable decision that demonstrated its long-term vision and perseverance. Instead of chasing profits during a period of widespread scarcity, the company made a bold strategic move: It offered its products “at cost” for several years, forgoing any profit margins to overcome the difficult period and position itself to regain market share in the future. Through such tenacity, strategic foresight, and a commitment to both their customers and country, Ahlia weathered the storm and solidified its position as one of the largest manufacturers of construction specialty chemicals in the State of Kuwait.
Delivering Innovative, Durable, and Eco-Friendly Solutions
Ahlia Chemicals products have undoubtedly made a significant impact on Kuwait’s construction industry in terms of contributing to more durable, efficient, and sustainable building practices. Their concrete admixtures, epoxies, sealants, and waterproofing solutions deliver promising durability to the concrete structures. “Our products tend to improve the performance of concrete, increasing its strength, resistance to environmental factors, and lifespan, reducing maintenance costs and the need for frequent repairs in buildings and infrastructure,” elucidates Mirza.
Moreover, as modern construction shifts toward sustainability, Ahlia has pioneered eco-friendly solutions by developing low and zero-VOC (Volatile Organic Compounds)products that align with global green building initiatives. These environmentally conscious innovations help construction projects reduce their carbon footprint and comply with sustainability standards. Besides this, Ahlia has pioneered advanced construction techniques by manufacturing quick-setting concrete, self-healing materials, and lightweight construction solutions, which help to optimize project timelines and reduce material costs. The local availability of these innovative products ensures that construction companies can meet project timelines efficiently, without compromising on quality. Additionally, Ahlia Chemicals’ weather-resistant coatings, thermal insulations, and UV-resistant materials have been protecting structures for decades from harsh weather conditions, ensuring they remain safe and operational for longer periods. This adaptability is vital for both commercial and residential construction.
Meeting Local Needs with Global Standards
Ahlia has consistently set industry benchmarks with its superior product offerings and relentless focus on innovation. In 2019, the company collaborated with Wacker Chemie A.G and Wacker Chemicals Middle East to launch two pioneering products tailored for the challenging Middle Eastern climate—Cap Silane Coat 100 and Cap Soil Stabilizer. Cap Silane Coat 100, a UV-resistant α-silane-based coating, provides durable protection for a variety of substrates and floors, while Cap Soil Stabilizer is typically applied for wind, dust, and rain erosion control. These innovations, engineered to meet Kuwait’s unique environmental conditions, exemplify Ahlia’s commitment to quality and localized solutions.
For many decades, Ahlia has consistently matched the quality of products offered by international companies importing chemicals into Kuwait. As a well-established company that meets international standards, Ahlia holds all the necessary approvals from key government ministries and benefits from a strong network of referrals. “Until 2016-17, our production capacities utilization was only up to 50%, however, as we speak now, we have reached up to 90% of our capacities and therefore, we have recently inaugurated our third and latest production facility,” opines Mirza. With rising demand from Kuwaiti construction companies, Ahlia is now focused on expanding its bitumen-related product manufacturing capabilities.
Ahlia’s confidence in its products is further underscored by its contracting arm, ABIR, which provides application and installation services with comprehensive warranties. ABIR has already made significant strides, signing contracts worth $25 million since its reinstatement in 2015, and is now setting its sights on large-scale infrastructure projects. Specializing in services like structural waterproofing, fireproofing, thermal insulation, and protective coatings, ABIR has earned a reputation for delivering quality results that meet stringent local and international standards.
Cultivating a Culture of Innovation and Excellence
At Ahlia Chemicals, the driving force behind their success isn’t just their innovative products—it’s the company’s commitment to building a strong, dynamic culture. Since 2012, the new management at Ahlia has been laser-focused on creating a strong culture, to achieve employee engagement which eventually drives continuous improvement and teamwork, both of which are highly crucial in the competitive construction specialty chemicals industry. By clearly communicating the company’s vision, they’ve ensured that every employee is aligned with Ahlia’s long-term goals. One major change introduced was “Employee Empowerment”. Each of the department heads was provided additional powers so that they take ownership of their respective departments. The emphasis was on promoting a collaborative work environment where ideas can flow freely, and regular feedback was encouraged,” shares Mirza. At Ahlia, innovative ideas don’t go unnoticed – they’re recognized and celebrated, keeping the company at the forefront of the construction chemicals industry. Beyond innovation, Ahlia emphasizes environmental responsibility and safety, ensuring that the company delivers eco-friendly, high-quality solutions while fostering a sense of purpose among its workforce.
Expanding Horizons: A Vision for Global Reach
Ahlia Chemicals has always been driven by a vision for sustainable growth, continuous innovation, and retaining market leadership. Recognizing the limitations of Kuwait’s market, Ahlia began expanding its reach beyond borders in 2016, establishing a solid foothold in Iraq. Today, Ahlia exports its high-quality products to regions like the GCC, Middle East, Africa, and Asia, with exports making up 40% of its total revenue. “We have always emphasized establishing a strong international presence by targeting emerging markets with high construction demand, such as GCC & Middle East, Africa and Asia. Moreover, because all our products are manufactured in accordance with ASTM, BS, DIN, and UEA standards, this makes Ahlia accepted in foreign markets and this also provides Ahlia an edge over its local manufacturers in those countries,” affirms Mirza.
Strategic partnerships have also been key to Ahlia’s growth. In 2017, Ahlia’s parent company, National International Holding Co., acquired a controlling stake in Alghanim SpecialitiesCo., a former competitor. This acquisition allowed Ahlia to streamline operations, eliminate competition to a large extent, and synergize its manufacturing and product offerings, strengthening its market position even further. Certified under OHSAS 18001:2007 and ISO 14001:2015, Ahlia is deeply committed to reducing its carbon footprint. By working closely with equipment manufacturers, the company continues to innovate towards net-zero CO2 emissions.
Innovation remains the lifeblood of Ahlia’s success, particularly through its investment in R&D. The company has developed advanced chemical formulations, such as self-healing concrete and smart coatings that adapt to environmental conditions, ensuring that it remains at the forefront of the evolving construction industry. Ahlia’s focus on digital transformation further exemplifies its forward-thinking approach. By integrating QR code technology into product packaging, the company has simplified access to technical data sheets and application methodologies, improving efficiency for clients and ensuring the highest standards of customer service.