< Previous20 C EO M I D D L E E A S T MAY 2 0 1 9 E-COMMERCE OPPORTUNITY THERE IS STILL MASSIVE ROOM FOR GROWTH, AS E-COMMERCE PENETRATION IN THE MIDDLE EAST AND NORTH AFRICA (MENA) REMAINS LOW COMPARED WITH OTHER REGIONS MIDDLE EAST AND NORTH AFRICA (MENA) E-COMMERCE IS WORTH $8.3 BILLION AND HAS GROWN BY 25% ANNUALLY SINCE 2014 Notes: This includes all business-to-consumer e-commerce sales for fashion, personal care, beauty, electronics and groceries and excludes business-to-business and consumer-to- consumer e-commerce, food delivery, travel, entertainment, services and auto; GCC stands for Gulf Cooperation Council and includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabiaand UAE; MENA includes all GCC countries and Egypt, Algeria, Iraq, Jordan, Lebanon, Libya, Mauritania, Morocco, Syria, Tunisia and Yemen Sources: OMD Arabnet; eMarketer; E- commerce Foundation; Euromonitor; BMI Re- search; PayPal Insights; PAYFORT; Bain analysis Notes: E-commerce excludes food delivery; penetration is defined as percentage of e-commerce retail sales over total retail sales; India includes consumer to consumer; GCC stands for Gulf Cooperation Council and includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE; MENA includes all GCC countries and Egypt, Algeria, Iraq, Jordan, Lebanon, Libya, Mauritania, Morocco, Syria, Tunisia and Yemen Sources: Household expenditure surveys; Forrester; Euromonitor; Bain analysisMAY 2 0 1 9 CEO MIDDLE E A ST 2122 C EO M I D D L E E A S T MAY 2 0 1 9 BUSINESS | SGH GROUP THE ART OF SUCCESSION AS MAKAREM SOBHI BATTERJEE ASSUMES THE LEADERSHIP OF SAUDI GERMAN HOSPITAL GROUP, HE REFLECTS ON THE HEALTHCARE LEGACY OF HIS FATHER, ENGINEER SOBHI BATTERJEE AND SHARES HIS PLANS TO TAKE THE REGIONAL HEALTHCARE PROVIDER GLOBAL President of BAB Holding and Vice Chairman and Deputy President of one of BAB’s largest groups, Saudi German Hospital Group, Makarem Sobhi Batterjee.MAY 2 0 1 9 CEO MIDDLE E A ST 23 Woods committee in Washington DC. He is the founding president of the Young Entrepreneurs Organization (YEO) in Saudi Arabia and holds an MBA from London Business School. GOLD STANDARD Makarem Sobhi Batterjee was awarded an honorary doctorate from the United Nations for his efforts in empowering the women of Saudi Arabia thanks to the opening of Saudi Arabia’s first women- only fitness centre, the aforementioned Gold’s Gym, which has more than 25,000 members. It was a challenging achievement that called on every ounce of his power to sway opinion. Women’s gyms were unheard of in Saudi Arabia before this. The project was an exercise in changing perceptions. “When I started this project in 2005, gyms for women in Saudi Arabia simply did not exist. We focused on, and highlighted, the medical benefits of exercise and I eventually managed to convey that fitness is a vital part of preventative care and wellness. It was both a big business risk and extremely challenging, but in this part of the world it was much needed,” he notes. His work in championing women’s health and empowerment has been rec- ognised by the World Economic Forum and the Bretton Woods Committee, a network of highly prominent world lead- ers working together for international economic cooperation. “We plan to invest a lot of time and effort in opening 50 Gold’s Gym across the region and provide wider access to fitness facilities for communities in the region. Our focus is on raising aware- ness about health and wellness through preventive care. The very fact that we are born human is a blessing and to have a purpose of helping others through the family business of healthcare and educa- tion is a second blessing. I feel blessed to continue the mission and message of my family in this region – and hopefully outside the region, too.” ROM HUMBLE BE GINNINGS IN THE pharmacy business, the Batterjee family enterprise established by Shaikh Abdul Jalil Batterjee almost 100 years ago, grew to become the largest healthcare company in the region today. The driving force behind this success is the founder of the Saudi German Hospitals (SGH) Group, Engineer Sobhi Batterjee, who with his brother Dr. Khalid Batterjee have grown their hospitals from one facility in Jeddah in 1988, to an impressive 10 hospitals open today with many more to come. The SGH brand along with many other well-renowned brands are part of Bait Al Batterjee (BAB) Holding, the parent company established by Engineer Sobhi Batterjee and Dr. Khalid Batterjee as a way to keep all the family businesses consolidated under one entity. The family, under their leadership, has long been close to the heart of Saudi enterprise and has been key in progressing healthcare and education in the region. BAB Holding presides over the largest healthcare group in the region and its portfolio includes hospitals, clinics, pharmacies, educational facilities, hospital construction, pet care, IT and fitness centres, as well as divisions that focus on more traditional real estate. BAB Holding has a workforce comprising more than 7,000 employees, and one of its biggest achievements includes the world’s first gym for women in Saudi Arabia, established in 2005 by Makarem Batterjee, the son of Engineer Sobhi Batterjee. Makarem Batterjee is President of BAB Holding and is also the Vice Chairman and Deputy President of one of BAB’s largest groups, the Saudi German Hospital (SGH) Group. As he prepares to take the group from regional powerhouse to global healthcare player, Makarem Sobhi Batterjee – entrepreneur, leader, visionary and star of Rotana’s popular business reality TV show, Shark Tank – talks to CEO Magazine in an exclusive interview, revealing how he is balancing his family’s legacy with his own ambitious vision. “It’s my ambition to be not just a regional healthcare player, but a regional brand that is going global,” he tells CEO Magazine at his corporate offices in Downtown Dubai. His high-rise office, a symphony of contemporary minimalism softened by elegant cream touches, seems a far cry from the sleek and functional hospital wards over which he presides, but it is the nerve centre from which he operates when in Dubai, which is often. “Who can resist Dubai?” he says with a smile. “There are so many synergies that exist between Saudi Arabia and the UAE, which is why it is important to have an office here, too”. His advisers and executives buzz around him, but the younger Batterjee exudes focus and affability, bantering with his staff and with the CEO photographer. As a relatively young leader, his stewardship of the Saudi German Hospital Group is impressive enough, but Makarem Batterjee has already achieved much more. Assuming the mantle of a vast family empire is just the beginning for this dynamic entrepreneur. “Both my grandfather and father have been driven by ‘doing good’ for others and this is part of my core philosophy,” he says. It is a philosophy that has been recognised at the highest levels. He was selected as a Young Global Leader by the World Economic Forum in Davos in 2008 and anointed the youngest member of the prestigious Bretton F 7,000+ employees comprising more than 40 nationalities “AND IF ANYONE SAVED A LIFE, IT WOULD BE AS IF HE SAVED THE LIFE OF ALL MANKIND.” – FROM THE HOLY QURAN, AL-MAIDAH 32.24 C EO M I D D L E E A S T MAY 2 0 1 9 BUSINESS | SGH GROUP It is a statement that is both ambi- tious and humble. It echoes the phi- losophy of the family business, which is a line quoted from The Holy Quran: “And if anyone saved a life, it would be as if he saved the life of all mankind.” (Al Maidah, Verse 32). Makarem Batterjee is adamant that this remains a core component of his vi- sion moving forward. “The motivation is not to make money; that is not our model. We are here to improve healthcare and relieve suffering first and foremost and I believe that money follows if you are sincere in your purpose. We are in the business of doing good and driving positive change in the MENA region, through healthcare and education. The SGH brand has great goodwill in the region and that is also be- cause we were early pioneers in the media; our brand is widely recognised across the Middle East and Africa.” Makarem also founded Humania Capital, an investment platform dedicated to delivering enhanced and much needed health services in the region. In addition to the projects underway, Humania aims to become the most credible healthcare platform in the MENASA region striving to deliver high-quality healthcare with affordable pricing. THE POWER OF EDUCATION Educational facilities form a core component of the family holding group and building on this, Makarem Batterjee presides over the Global Business School (GBS) in partnership with leading international business schools. GBS aims to establish a new educational benchmark within the Kingdom. “We are one of the largest in- vestors in education in the region. We have one of the largest private medical colleges in the Middle East. We were one of the first companies in Saudi Arabia to develop private- sector higher education in medical SGH FIRSTS IN SAUDI HEALTHCARE INCLUDE: THE FIRST LIVER TRANSPLANT, THE FIRST TOTAL HIP REPLACEMENT SURGERY, AND THE FIRST TO INTRODUCE COCHLEAR IMPLANTS. SGH WAS ALSO THE FIRST HOSPITAL IN THE MIDDLE EAST TO PERFORM A GALLBLADDER REMOVAL. HH Sheikh Humaid Bin Rashid Al Nuaimi inaugurates SGH Ajman. Eng.Sobhi Batterjee and Dr.Khalid Batterjee with the late H.R.H Prince Sultan Bin Abdulaziz Saud during the opening of SGH Riyadh.MAY 2 0 1 9 CEO MIDDLE E A ST 25 education and it has been very suc- cessful,” notes Makarem. “Now we’re also in executive edu- cation. We’re planning to launch one of the top business schools in Saudi Arabia. We’re also expanding our medical colleges in Saudi Arabia and other countries.” The group provides medical educa- tion through its Batterjee Medical College (BMC); to date, thousands of female and male students from the region have en- rolled. The college offers programs in med- icine, nursing, pharmacy and dentistry. Many students have moved on to become employees at Saudi German Hospitals. “We believe in ‘employability’ and education that ends in employment,” he states. “We have provided thousands of jobs within the business to those who study with us and have the right attitude; passion, willingness, warmth, discipline and a strong work ethic.” CONTINUING A LEGACY While he stamps his identity on an array of new business ventures, in over- seeing the expansion of Saudi German Hospital Group across the Middle East, Asia and Africa, Makarem Batterjee is continuing the legacy started by his father. Does he feel a sense of pressure, or obligation, in this respect? “Saudi German Hospital was founded by my father and uncle 30 years ago in Saudi Arabia, but just because you’re not the founder doesn’t mean that you don’t know the busi- ness,” he says. While his father contin- ues to mentor him, the Saudi German Hospital (SGH)Group shows no signs of slowing down. The hospitals in Ri- yadh and Jeddah are being renovated this year, and the group has already opened its milestone 10th hospital – SGH Ajman – this year with another to open in Dammam in 2019. “I hope I could be seen as an ambas- sador for healthcare, I would be proud and honoured to be that, but I think my greatest honour to date is to be a human being. I have always believed that the ultimate purpose of the group is not just to make money, but to improve people’s lives by providing better healthcare services and better education. What lifts a civilisation or society up is the soft infrastructure such as education and health. Health is a basic need for a human being and the second step in the hierarchy of human needs is education, because you are what you learn. And I believe that these industries are truly worth putting my soul into.” Makarem Batterjee receives the visionary of the year award at Gold’s Gym International Convention in U.S.A. SGH Jeddah; the hospital was founded in 1988 and continues to operate as a leading medical facility in Saudi Arabia.26 C EO M I D D L E E A S T MAY 2 0 1 9 BUSINESS | SGH GROUP sues, they can call me immediately and we will always take care of the needs of the patient calling. That is the spirit I am trying to hand down. I believe that succession should be managed by example, not just by words. What else is important to be a good leader in a family business? If you want to be successful, the secret to ensuring that people buy into your vision is that you have to be the first to sacrifice. A leader must be the first to give and is the last to receive. Don’t think that just because you are KEEPING IT IN THE FAMILY AS HE PASSES THE BATON OF SAUDI GERMAN GROUP TO HIS SON, ENGINEER SOBHI ABDULJALEEL BATTERJEE SHARES HIS INSIGHTS ON SUCCESSION AND PREPARING MAKAREM TO CONTINUE THE FAMILY LEGACY. E ng.Sobhi, you established a huge healthcare empire. What are some lessons that you will pass on to Makarem? Passion is key in taking my place. In our industry, passion for helping people is crucial. It’s why I always had my phone number printed in all our hospitals, so that when people visit us and are wor- ried about their family or have any is- Founder and President, Saudi German Hospital Group, Engineer Sobhi Abduljaleel Batterjee.MAY 2 0 1 9 CEO MIDDLE E A ST 27 ‘number one’ you deserve it all. When it comes to family, money is the last thing you should worry about. Losing the power of family relationships is wrong, if you lose your relatives you will also lose your business. In your book, A Road To Success, you write that a person is the product of genes, upbringing and environment. Can you tell me about how you applied your philosophy in raising Makarem? Genetics are very powerful. A goose will not give birth to a crocodile, but I also raised him by example. When my chil- dren were younger, I used to take them out of school on business trips so that they could see and understand the busi- ness world. At a big conference recently in Ajman during the opening of the hospital, I asked my youngest daughter, who is just seven: ‘What are you here for?’ She said ‘I am here to help relieve suffering’. That’s how you raise children. You defined your own destiny, but was there an expectation that your son would continue your vision? Not necessarily. I believe that we have given him a broad direction but he has been very determined to continue the family legacy and take our group to the next level. He is well-educated and he has a well-running organisation that I built from nothing. We are regional and I believe Makarem will take it global. The challenges he faces include paying attention to the family; this needs talent, patience and sacrifice. When it comes to family, money is the last thing you should worry about. The love and support of your family is priceless. What is important in ensuring the best succession process possible? Succession is not easy for the incoming leader. It is critical that the founder is there to make it easier. The senior people in our organisation still insist on calling me when a decision is to be made, but as part of succession I involve Makarem in these decisions. What is your relationship with Makarem like? Makarem is my teacher in many aspects even though he may not realise it. He is a thinker and is very well educated, he has an MBA from one of the most well- reputed business schools in the world, London Business School. He often applies tools that I had never heard of. He once told me to read Think and Grow Rich by Napoleon Hill, the book blew my mind! The theory of my own book is inspired by what I read. As Saudi German Hospital enters a new phase, aspiring to be global, what are your hopes for the group? We see healthcare and education as our heritage. I believe that we have a higher purpose and a mandate to serve human- ity. I will keep working towards that and passing this mandate to my children and grandchildren. Today we are operational in Saudi Arabia, UAE, Egypt and Yemen and we are moving into Morocco, Paki- stan and other countries… we will not stop. It will take a very powerful force to stop the Bait Al Batterjee group and our family drive. Your son has established new ventures and been awarded internationally – what are you most proud of about him? He is persistent; when he has a vision he will pursue it until it becomes reality. When our children graduated school, he was the first to come to work and wanted big rewards quickly. We knew he must earn them. He was to start in the kitchen of our hospital in Jeddah, but in reality, it wasn’t the place for him. A family adviser recommended a psychometric test and it revealed that Makarem is an entrepreneur. One day he brought me the franchise for Gold’s Gym and it has been a huge success. He was selected as a Young Global Leader by the World Economic Forum at Davos and was the first Saudi member of the Bretton Woods Committee. I predict he is going to be amongst the leading healthcare personalities in the world; saying this publicly is part of building ambition in your children. You do this by telling your children how great they are, not how incapable they are. Who damages children? The parents make or break them. Even Makarem says: ‘Don’t fire your staff, fire them up’. “WHEN IT COMES TO FAMILY, MONEY IS THE LAST THING YOU SHOULD WORRY ABOUT. THE LOVE AND SUPPORT OF YOUR FAMILY IS PRICELESS.” Eng. Sobhi Abduljaleel Batterjee (right) with his son Makarem Sobhi Batterjee.28 C EO M I D D L E E A S T MAY 2 0 1 9 BUSINESS | THE INVISIBLE WOMEN BY MEGHA MERANI AND BERND DEBUSMANN JR BEHIND EVERY GREAT MAN THERE’S A GREAT WOMANMAY 2 0 1 9 CEO MIDDLE E A ST 29 Or so goes the old adage, commonly believed to have originated from feminist movements that began in the US back in the 1940s. It was initially used in an attempt to give recogni- tion to the wives or female figures who significantly contributed to the lives of successful men. But though well-meaning, it’s not hard to see that stating a woman stands ‘behind’ the success of man is both patronising and defeating. Such statements have no place in our world if we are ever to progress towards a gender-equal and gender- neutral society. Women neither need nor want to stand behind. From Zelda Fitzgerald to Lillian Disney and Mitza Maric – history has abundant instances of women whose work went unrecognised. Jane Hawking also remained un- acknowledged for decades as she unfailingly supported her husband, the famed physicist Stephen Hawk- ing’s pursuits. And no matter how substantial her support, not many likely recall Zelda Le Grange’s name as they re- vere her boss, South African leader Nelson Mandela. THESE ARE THEIR STORIES. BEHIND EVERY GREAT MAN THERE’S A GREAT WOMANNext >