In this episode of The Bilna Sandeep Show, I sit down with Mr. Ahmed Raafat, Head of Procurement and Supply Chain at ARM Holding, to talk about career transitions, procurement strategies, and the future of AI in construction.
Procurement’s Changing Perception in Dubai’s Booming Real Estate
Procurement has not always carried the best reputation in the construction and real estate sector. In fact, as Ahmed Raafat, Head of Procurement and Supply Chain at ARM Holding, recalls, when he first decided to pursue a master’s degree in supply chain and logistics back in 2011, colleagues teased him: “Are you moving from engineer to storekeeper?”
At the time, procurement was undervalued, often seen as a back-office function rather than a strategic driver of projects. But Ahmed had a different vision. His foundation as a civil and site engineer gave him an insider’s understanding of the project cycle. He recognized that procurement, unlike site work, allowed him to serve multiple projects simultaneously, influencing not just delivery but also cost, quality, and risk.
Seventeen years later, procurement has become his field of leadership, and his journey highlights how essential the discipline is for shaping successful construction outcomes.
From Site Engineer to Head of Procurement
Ahmed graduated as a civil engineer in 2003 and began his career in the UAE in 2004. He started on construction sites, moved into project engineering, and later worked in technical roles. But it was in procurement and supply chain where he found his true calling.
“In procurement and supply chain, I can serve multiple projects at a time, more than being on a site. I can influence cost, quality, risk—and there is always a room for learning.”
This constant exposure to challenges, whether related to specifications, sourcing, or timelines, keeps the work dynamic and rewarding. For Ahmed, procurement is not just a career path—it’s a lifestyle that sharpens professional skills while enriching personal growth.
Defining Procurement in Simple Terms
So what exactly is procurement? Ahmed breaks it down simply:
“Procurement is a relationship. It’s about creating trust, communication, negotiation, and collaboration with stakeholders and vendors.”
This trust-based relationship is what expedites actions, resolves conflicts, and drives cooperation across the many moving parts of a project. Strong vendor and stakeholder relationships are often more effective than processes or paperwork in solving problems quickly.
The Skills Every Aspiring Procurement Leader Needs
For young civil engineers who want to move into procurement, Ahmed outlines five crucial skills:
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Contract Knowledge – Understanding the basics of contracts and their role in projects.
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Technical Skills – Being able to evaluate technical criteria and apply practical site knowledge.
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Communication Skills – Essential for negotiations, reporting, and collaboration.
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Relationship Building – Developing trust with stakeholders and vendors to ensure smoother project execution.
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Vendor and Stakeholder Management – A critical skill that saves time, money, and effort by fostering cooperation on both sides.
Lifelong Learning: Courses and Memberships for Procurement Professionals
Ahmed emphasizes one principle: never stop learning.
For those pursuing a career in procurement, he recommends:
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CIPS (Chartered Institute of Procurement & Supply): A globally recognized body offering diplomas, memberships, and fellowships that strengthen technical and managerial procurement knowledge.
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Negotiation and Business Strategy Courses: Platforms like Harvard Business Online provide programs such as Negotiation Mastery and Strategic Relationship Management.
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Foundational Certifications: Institutions like APICS or CPPM provide entry-level knowledge that builds a solid base for deeper learning.
The Gap Between University and Industry
One of the biggest challenges Ahmed identifies is the gap between academic learning and real-world practice. While universities focus heavily on technical skills, they often overlook soft skills such as communication, negotiation, teamwork, and leadership.
These are not just “extras”—they are essential to thriving in procurement. Graduates without these skills are left to learn them the hard way, through trial and error in professional settings.
Ahmed believes universities should integrate soft skill development into their core curriculum:
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Communication and negotiation training
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Mentoring and coaching techniques
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Teamwork and collaboration science
Without this, young engineers may struggle in the multicultural, fast-paced environment of Dubai, where interacting with diverse stakeholders is part of daily life.
The Multicultural Advantage of Dubai
When Ahmed first arrived in the UAE, he expected to meet only Emiratis. Instead, he found himself immersed in a melting pot of cultures—a reality that came as both a surprise and a challenge.
“I thought I would come to UAE and find UAE people. But I found more people from outside the UAE than from within. That was a culture shock.”
Yet, this diversity is also Dubai’s strength. With its tolerance and inclusivity, the city creates an environment where professionals not only learn from one another but also adapt to global ways of working. For procurement leaders, this exposure to multinational environments builds resilience, adaptability, and a broader perspective on problem-solving.
Procurement as a Strategic Partner, Not Just a Cost Cutter
In most large-scale construction projects, time is the biggest challenge. Business users often expect deliverables “yesterday,” and procurement teams are caught between speed and thorough evaluation. Ahmed emphasizes that procurement’s role goes far beyond just cutting costs:
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Value Creation: Procurement contributes to innovation and solutions, not just savings.
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Reputation Protection: Delivering substandard quality can damage a company’s image as much as it affects budgets.
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Strategic Partnership: Procurement must be engaged from the earliest stages—feasibility studies and planning—so that vendors, materials, and risks are assessed before the project even begins.
This early involvement ensures procurement can conduct proper research and development (R&D), prepare checklists, and provide valuable insights that influence the project’s success.
Balancing Cost and Quality in Procurement
The pressure to save costs is a recurring theme in procurement, but Ahmed is clear: quality cannot be sacrificed. He highlights the pre-qualification process (PQQ) as a crucial safeguard. This involves:
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Reviewing vendor experience lists and client references.
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Examining previous projects, including size, specification, and level of luxury.
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Checking completion timelines and delivery records.
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Conducting site visits and requesting mock-ups for quality assurance.
By shortlisting vendors through these measures, procurement ensures that quality standards are validated before price negotiations begin.
Why the Lowest Bid Isn’t Always the Best Choice
Ahmed recalls a real case where three vendors—one local, one Far East-based, and one European—submitted bids for finishing materials. The European supplier was the most expensive upfront. However, when his team evaluated the product lifecycle, durability, and operational costs (OPEX), the European supplier turned out to be the most cost-effective over a five-year period.
“One mistake we do during tender evaluations is we only look at CAPEX (capital expenditure), not OPEX (operational expenditure). The cheapest option today may be the most expensive tomorrow.”
For procurement professionals, this means evaluating tenders must include long-term operational costs, not just initial investment.
The COVID-19 Impact: From Procurement to Supply Chain
The pandemic reshaped procurement into something broader: supply chain management. Previously, supply chain concepts were mostly associated with manufacturing or FMCG sectors. Post-COVID, construction and real estate companies began embracing the term, integrating procurement, contracts, and logistics under one umbrella.
Key shifts included:
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Resilience and Risk Management: Procurement strategies now account for unexpected global disruptions.
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Digital Transformation: From e-meetings to digital documentation, processes moved online. What once required physical files and in-person meetings is now streamlined through dashboards and cloud-based approvals.
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Localization of Supply: COVID exposed the risks of over-reliance on overseas suppliers. As a result, local manufacturing and regional sourcing surged, with international brands establishing factories in the UAE, Saudi Arabia, and Oman.
This shift not only improved resilience but also boosted local economies by increasing demand for regionally produced materials.
Digitalization and the Rise of AI in Procurement
Reflecting on his early days, Ahmed recalls sending supplier inquiries via fax and carefully filing receipts. Today, the industry is almost unrecognizable.
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End-to-End Digitalization: Processes from sourcing to payment (S2P) are now digital and often paperless.
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Environmental Benefits: Paper reduction contributes to sustainability goals.
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Efficiency Gains: Mobile-based approvals and automated dashboards save both time and resources.
Artificial Intelligence (AI) is the next frontier. While it cannot replace people in areas like negotiation or empathy-driven decision-making, AI is already automating routine and tactical tasks, freeing procurement professionals to focus on strategic planning and human-driven insights.
Ahmed predicts that within five years, AI will dominate compliance checks, vendor onboarding, and data analytics—but tender evaluations and strategic decision-making will remain human-led.
The Human Factor in Tender Evaluations
While AI is revolutionizing procurement, Ahmed stresses that human judgment remains irreplaceable—especially in tender evaluations.
“Tender evaluations today are a combination of technical and commercial assessments. While analytics and compliance can be automated, the technical criteria and negotiations still require human input.”
Human skills—such as negotiation, critical evaluation, and contextual decision-making—are essential to ensure the right balance between cost, quality, and long-term value.
Overcoming the Fear of AI
The fear that AI will replace jobs is not new. Ahmed compares today’s hesitation with the resistance companies faced when implementing ERP systems like Oracle, MS Dynamics, or SAP a decade ago.
“Every new technology faces resistance. That’s human nature. But once people understand and practice it, they see how it makes their work easier.”
Ahmed emphasizes his three guiding P’s of Procurement:
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People – The foundation. Employees must feel included, supported, and secure.
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Process – Clear procedures that guide operations.
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Platform – The tools and technologies that support people and processes.
By prioritizing people, leaders can manage transitions smoothly, build trust, and ensure adoption of new systems.
Resistance to Change in Construction
Compared to other industries, the construction sector is traditionally slower to adopt new technologies. Many companies still resist digitalization or underestimate the value of innovations such as AI and social media.
Ahmed explains that he has personally faced resistance in past organizations. The key to overcoming it lies in:
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Communication – Explaining how new systems improve efficiency.
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Pilot Projects and Demos – Showing teams how tools work in practice and how they make workloads lighter.
When employees realize that these tools reduce overtime, free up capacity, and simplify their work, they become advocates rather than opponents of change.
Ensuring Transparency and Fairness in Vendor Management
Procurement often faces scrutiny around favoritism in vendor selection. To address this, Ahmed stresses the importance of structured vendor relationship management (VRM) policies.
His approach includes:
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Clear KPIs for professionals managing vendors.
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Equal opportunity for vendors to register and onboard through defined systems.
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Checklists and weighted scoring criteria to ensure decisions are transparent and measurable.
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Human oversight to complement system-driven processes.
“We give equal chance to all the vendors to participate. Everyone gets the same opportunity to be registered and onboarded—and the same chance to compete.”
By combining structured policies, transparent scoring, and equal opportunities, procurement leaders can protect both organizational integrity and professional reputation.
FINAL THOUGHT
As we look at the future of procurement with AI, digitalization, and local supply chains, one truth remains: people are at the center of it all. That’s the insight Ahmed leaves us with—technology can support us, but trust, communication, and leadership will always define the industry.”
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