This is Economic Impact, conversations from Emirates Development Bank (EDB), the key financial engine for economic development and industrial advancement of the UAE. In each instalment CEO Ahmed Al Naqbi speaks to change-makers and thought-leaders in the UAE to learn how they’re contributing to the nation’s economy and realising the UAE’s economic ambitions.
In this episode we welcome Mr. Saleh Lootah, the chairman of the Food & Beverage Manufacturing Business Group as well as the Managing Director of Al Islami Foods and the President of the Harvard Business School Club in the GCC.
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Speaker 1: HOST
Speaker 2: GUEST
00:00:00 INTRO V/O
'This is Economic Impact...Conversations from Emirates Development Bank'.
00:00:05 Speaker 1
A'Salaam A'laikoom. Welcome to Economic Impact, Conversations with Emirates Development Bank. Today, we have a very special guest. I would like to welcome Mr. Saleh Lootah, the chairman of the Food and Beverage Manufacturing Business Group as well as the Managing Director of Al Islami Foods as well as, Mash’allah, the President of the Harvard Business School Club in the GCC.
Welcome, Mr. Saleh, it's a pleasure to have you. I would like to just start by jumping right into it and asking you a bit about your background and how did you get to the point of where you are today having all of these different responsibilities? I'm sure this has built up over time. We'd love to hear about that…
00:00:42 Speaker 2
First of all, thank you, Ahmed, for having me with you in your office today.
Let me tell you how do I, how did I get into the food business first? Because the food business is a very interesting story for me. And I think it's part of the reason why I'm here today.
I remember when I finished my school from the US and then came back. I met my uncle, [ARABIC REVERENCE GREETING HERE], so he's the founder of the Islamic Bank and he's the founder of the famous construction company, SS Lootah, and he's the founder of Al Islami Foods, right?
So, I remember when I came back, he met me and he told me. So, you finished?
I told him yes, I finished.
He said OK, I want you to go visit all the companies and come back to me. Where do you want to start?
I was between this decision. Should I go into governmental sector, or should I go into the private sector said let me go and explore the opportunity?
So I went to the bank, Dubai Islamic Bank, looking into what to do I find myself there, go to the constructions, go to the trading until I went to Al Islami Foods and then I thought of OK, going to the bank have met so many of the locals who were there…
00:01:57 Speaker 1
Right.
00:01:58 Speaker 2
I went to the constructions against so many locals were there.
00:02:01 Speaker 1
Right.
00:02:02 Speaker 2
Went to the food sector, which is Al Islami food...
00:02:03 Speaker 1
No locals.
00:02:04 Speaker 2
It was no locals.
So, I said, great, this could be an opportunity for me where I can prove myself.
00:02:10 Speaker 1
Right
00:02:11 Speaker 2
And he is a leader with a vision and he's always been doing business at the same times with values. Sometimes if you miss the balancing between doing the business and not really thinking of the values you will go into a wrong thing. So, he's been always my role model and how you’ve been able to balance between values at the same time to a successful business...
00:02:38 Speaker 1
Can I touch on that a bit because at EDB we definitely have a very similar philosophy with regards to values. As an organization, we believe it's very, very important in how we do our business on a day-to-day basis. What are some of those values that he had put forth through his organizations to ensure that they met certain standards.
00:02:58 Speaker 2
One of them - being fair. Being fair, with your employees being fair with your consumer, being fair with the society you live in, these are principles for him.
And er, having in your mind that whenever you start your day, you're doing it for the sake of the reward you get not only in this life, but in the day after. And whatever you do, [ARABIC REVERENCE GREETING HERE] whatever you would expect.
00:03:27 Speaker 2
For yourself, make sure that you give it to your brothers, and he raised the bar very high with Dubai Islamic Bank with Al Islamic Foods and most of his businesses, these were the fundamentals. Nobody can, can compromise on them and so many stories. If I take you through, we will never finish, in term of he, how he really embedded this philosophy in every employee.
00:03:56 Speaker 1
That's fantastic.
So, Al Islamic foods is where you decided to go. What was it that you found in Islamic foods that was interesting in the food business specifically, what did you find interesting and different or things that might have surprised you that, you know, someone going into the food business today might not realize - good and bad?
00:04:14 Speaker 2
You're absolutely right. See, when it comes for food you don't find, you don't find it an attractive sector.
People enjoy very nice offices. They don't want to go into the manufacturing side of the business. They don't want to go sweating in the roads, distributing their product. They don't want to go into the complexities of learning.
00:04:36 Speaker 1
There is no glamour…
00:04:37 Speaker 2
There is not that much glamour which you see in very nice high rise buildings. But it is fun!
I think in the food industry is not being served or presented properly for our young generations. So, this is where I find it interesting because when you look into food, most of the people what comes into their mind…farms,
00:05:03 Speaker 1
Or restaurants?
00:05:03 Speaker 2
Mainly agriculture or restaurants lately. Also it was, but if you look for the food sector, you look at from the farm to the fork, with farming, backing, logistics, storing, merchandising, retailing can be up to the consumer. How can we perfect every biller of this value chain?
This is what we are trying to promote. It has so many areas where our growth, where our local can excel and because I think, bad or good, Covid have seen an alarming, a wake up call, for everybody globally because if you remember when we had COVID and most of the countries start shutting their border and exporting...
00:05:47 Speaker 1
Right.
00:05:55 Speaker 2
Right. We are a country depend heavily on the import. I remember when the government came forward and looked into the issue seriously.
I remember they called us and one of the tough questions we all had. How much food do we have in the country? And how long this food could last? And how can we plan our next step?
00:06:24 Speaker 1
That must have been a very interesting conversation and plan that had to be put together. So, how did you, how did you go about that? Was there a coordination amongst the other industry, major industry players. Was it done independently and directly with the government channels? How did that happen? How did that go through?
00:06:40 Speaker 2
Let me tell you, we are really blessed by our rulers, and if you see, Al Hamdu’lillah, al Emirat, that we've been proactive compared to all the others countries surrounding us in term of technology, in terms of vision, in terms of really raising the bar continuously, this is a gift from Allah.
I don't see that oil is our gift from Allah. I see our leadership and being in the front, showing us what to do.
I always say within our private sector usually people will see the public sector go slower than the private sector, right. Globally, you always see the private sector excelling.
00:07:27 Speaker 1
Right.
00:07:30 Speaker 2
Here, especially in Dubai and the UAE, we see the public sector and government sectors with the leadership of Sheikh Mohammed Bin Zayed and the leadership or Sheikh Mohammed bin Rashid, we see that the public sector going faster.
00:07:46 Speaker 1
Yes, yes.
00:07:47 Speaker 2
The the way he put the targets, it's totally different. And they say if they change inside you. Leading way, yeah, is slower than the change happening outside you. You will be vanished. And this is what we see as a private sector when we see public sector and government and authorities going very fast in terms of delivering their objective. You as a private sector, you have to wake up, you have to excel and this is what, Al Hamdu’lillah, led I think us to be where we are.
00:08:19 Speaker 1
Right now, were there any objectives at the time? Was there objectives to meet certain targets with regards to production? Was there certain targets with regards to expansion of capacities?
00:08:30 Speaker 2
I'll tell you what happened, Ahmed, at that time. I remember I got a call from the executive office. So we have a meeting. When? When? When they lock. When they lock…
00:08:40 Speaker 1
The lockdown…
00:08:36
The lockdown. And I always remember this day. I remember it was 13th, I think when they announced that the lockdown is happening, so no Dubai Airport, no Sheikh Zayed Road, no Dubai Mall anymore.
It was a big hit for all of us.
I got a call, there is a meeting and we want you to come there. And when I went there, all authorities from disabilities customs. Right. I remember everybody were there.
And that was the question. How much food do we have? And one area I think we weren't ready at that time were data…
00:09:25 Speaker 1
Right.
00:09:32 Speaker 2
Informations, right, because retailer, we were there; wholesaler, we were there; manufacturer, we were there. Authority we were there, right. But there is no synergies in term of datas.
00:09:39 Speaker 1
That's so interesting.
00:09:40 Speaker 2
Everybody was having his own datas, right. So, I think from that day we saw the government and the authorities being pushing that. How can we really relate and collect these datas to make the right decision.
00:09:52 Speaker 1
And is this now been become a common, common practice?
00:09:54 Speaker 2
Much better. Absolutely, yes, yes.
00:09:56 Speaker 1
I'm assuming so, that's fantastic. So it's essentially something which was a silver lining that due to that experience became very clear that having some form of centralized data would allow for better management of food supply in the country…
00:10:08 Speaker 2
For all the stakeholders for manufacturer to do the proper forecasting; for retailer to order the right reordering; for end user; for municipality; for government to make the right decisions. Data is essential, especially in this era we are in right now.
00:10:28 Speaker 1
That's great. So going back to that time, obviously it became a high priority and it's something that's on our agenda and our radar as Emirates Development Bank food security is one of our primary sectors and definitely that was one of the, I would say silver linings of going through the COVID experience was understanding the requirement and need for us to have the self-resilience and reliance in the country on the ability to do so.
How have you found since COVID the industry has developed, how have you found new players coming into the industry? Have you found more manufacturers? Um, we see a lot happening obviously from our side as a as a Development Bank that finances a lot of these projects, but I'm curious from an insider of the industry. How have you seen the development of that?
00:11:14 Speaker 2
As I told you, COVID was a big wake up call for everybody's private and government, and from that day, food security being in every agenda of an important meeting, globally, because people understand that this is a big challenge which we have to be prepared with.
And we've seen different strategies, and I remember some of the countries went and acquired land abroad. Some of the countries start investing in food companies and grow them.
Some of the countries have done major investment in the logistics for their own manufacturing. So I think, Al Hamdu’lillah, we've been lucky as I told you that we've been proactive all the times from the from the initiative the government are taking.
So, from that day we've seen a big shift in the sector…government being really more proactive, listening to what the private sector is looking for because Ahmed, food security challenge cannot be solved by government alone, and this is a this is my belief, it has to be hands in hand with the private sector. They have to work together in assessing the situations and coming with a joint plan in how we will be overcoming this challenge. So from that day, as I said, more investment has have been in the sector.
I see a very proactiveness from government to whatever we say, they listen and they really help the sector going forward.
And one of the area which we as a group and me as Saleh taking it seriously, is really developing national talented individual who could lead the sector. We're still far from where we want to be because as Shikeh Zayed [ISLAMIC REVERENCE GREETING HERE] said, “Machines cannot do the job”.
00:13:17 Speaker 2
Building cannot do the job.
00:13:19 Speaker 1
It's the human capital, individuals.
00:13:20 Speaker 2
It's the human capital, the talented individual who we have really to invest in, to give them the knowledge, the practice and the engagement of understanding the business sector overall, and this is where we come up with different initiatives with the, with the authorities and we have initiative called ‘Ishraq’, with the Human Resource Department of Dubai Government.
We're working with NAFIS mainly to develop the right curriculum and the right experience for these nationals to really lead the road going forward.
00:13:57 Speaker 1
And does this curriculum put the individual on a path to understand how to set up and establish a manufacturing business in the food industry or, or the food industry in general?
00:14:08 Speaker 2
As I said, Ahmed? If you look into the food sector overall and the value chain from farm to fork, you see different verticals. As I said from farming…in term of packaging, in terms of storing in term of logistics, retailing, marketing and advertising, merchandising.
For all of these vertical, it's a science in its own right. It's not like before one size fits all. So, this is what we are trying to do.
We have so many courses and so many curriculum being presented, particularly that with most of the outcome is not meeting with the private sector wants.
00:14:51 Speaker 1
Where do you see the gaps? What are the things that you would like to see more of or let's say more? It sounds like more, er, sophistication around the curriculum or around the work that's being done there…
00:15:01 Speaker 2
Because we are in a very dynamic sector, the way you farmed 10 years ago, it's not like the same logistics, it's not the same marketing, distribution...you name it, even ordering with all these platforms you have from X,Y, Z, it’s not like the way you used to do it 10 years ago…
00:15:16 Speaker 1
Yes, very true, yeah.
00:15:21 Speaker 2
The way we eat has shifted totally, so having this dynamic sector trying to meet and exceed their expectations, the academic they've not been able to deliver it. This is why we're saying that the academic sector needs to be led by private sector...
00:15:41 Speaker 1
Right.
00:15:42 Speaker 2
People, to make sure that when they construct the curriculum, they meet the demand of the private sector in the future.
00:15:51 Speaker 1
Very interesting. That takes me to a good segue on entrepreneurship.
So, you know, essentially we're talking about the entrepreneurs of the future and you yourself obviously are an entrepreneur, a business owner, someone who's established several businesses as well as worked on in, in established businesses.
00:16:10 Speaker 1
How do you see the entrepreneurship ecosystem post COVID? I've personally seen obviously a big drive towards entrepreneurship…
I've seen that the generations of today are very different to the generations of the past, where they're much more willing to go into, let's say…let's say they're much more excited about not necessarily going to an office for a job, but rather to create something of their own.
How do you see it from your perspective? How have you seen the evolution of that, post-COVID.
00:16:41 Speaker 2
As I said, I see a big shift from where we used to be and where we are right now and this is an area which we are, in the HBS club of the GCC, really focusing.
I think we are just in the initial stage and the reason of having our permanent location called ‘The House’ is to make sure that we create this think tank location for people to come, explore ideas, challenge ideas, work together in finding solutions for the challenges our entrepreneurs are facing, giving them some of the wisdom and the experience of the old generations, mixing it with the technologies and artificial intelligence and all the latest happening for them to be able to apply it in their businesses.
Our government has realized that the future...in the future, we will be needing to have people who are more risk taker can go and open their own businesses and build it. At the same time they gave all the infrastructure required in terms of training, in terms of fund, in term of support…
I still see it is not having the full potential, I feel now we have bigger room to fill and as I said, the more we talk about it, the more we show people how to do it. The more we are standing with them step by step to succeed, the more we will be having such people.
In the old days, if you remember talking about 20-30 forty years, most of the locals went into the governmental right, er, sector. In the future, you cannot.
This is why it's very important for us to push, bring practical initiatives and make sure that we have showcases to show our next generations as a role model.
00:18:43 Speaker 1
Absolutely. What, what are the challenges that you see for entrepreneurs today?
I know obviously that it's a world of difference from pre-COVID to post-COVID in the sense of the environment and the ecosystem has all been developing quite well, but what are what are still some of the challenges that are in the ecosystem for an entrepreneur that either we need to address as a community or something which potentially they themselves just have to be aware of and need to be able to tackle.
Are there any major challenges out there?
00:19:11 Speaker 2
Education
00:19:11 Speaker 1
Education. Absolutely. Absolutely yes. Yes, yes, yes. We still have an old, old-fashioned way of educating, yes.
00:19:14 Speaker 2
Nobody talk about it in their educations. We talk about only when we graduate. This with them telling you that the whole world has changed and gone very fast with technologies and our education system is still talking about the same all things.
00:19:28 Speaker 1
Still post World War 2 mentality, right? You know, there's…
00:19:31 Speaker 2
Unless we fix the core of our education system, this challenge will happen and the sad news that see how many years we lose. Yes, until he graduate.
00:19:44 Speaker 1
Yes, yes, 12 years of education and then another four potentially…
00:19:50 Speaker 2
Ahmed, just to let you know, we came up with a project called ‘Shine’ and Harvard Business School of the GCC. The idea of shine is to have work placement in the high school grade. So, as soon as you finish, first, high school. You have to have one month mandatory for you to go to the next class working as a work placement in private sector.
00:20:19 Speaker 1
To get real world experience.
00:20:22
Yeah. Otherwise you will wait until high school. Finished three years and then another four years for him to finish graduation. You're talking about seven years wasted and he don't have any link with the private sector.
00:20:32 Speaker 1
And that's great because you'll find that the students themselves will end up understanding, you know, what the expectations are of a work environment.
What are the things that are actually important to focus on in your studies? Because you know, typically you know when you're when you're in school, you have all of these subjects and don’t get me wrong, it's all fantastic stuff to learn. But what is really, really important to be successful in a career in a business.
These are things, I think, are, as you rightly said, not necessarily focused on during the education process. Unless you go to very elite institutions like Harvard or others where they, they, understand how to design curriculums around these, these issues after how many years?
00:21:15 Speaker 2
After seven years, this is what we are saying [ISLAMIC REVERENCE GREETING HERE] This is one of the area which he was focusing at in the early 80s. As soon as this kid get into the business and private sector, he starts to think...
You don't want him to become Bill Gates from day one. You want him to sit in a business environment and understanding what is a plus. What is minus? What is values? What behaviour? What does it mean saying a word in business? how to conduct yourself in a meeting.
All these small things add up…
00:21:56 Speaker 1
Absolutely
00:21:56 Speaker 2
...so when he is graduated, he's ready to go and excel.
00:22:01 Speaker 1
Absolutely. Very, very fascinating and very insightful.
00:22:04 Speaker 1
Er, one last item, which I wanted to touch on is that we have COP 28 coming up in a couple of months, a very important event for the UAE and the world as a whole and all eyes will be on the UAE, Insha’Allah, at that time for the food industry. What do you see for the food industry with regards to participation with COP, whether directly or indirectly?
How can the food industry also contribute towards the sustainability goals, the sustainability goals of the UAE in COP 28?
00:22:32 Speaker 2
We are having our future food forum on the 20th and 21 of this month (September 2023) in Dubai here...
00:22:40 Speaker 1
OK.
00:22:43 Speaker 2
...and this year, we're doing bigger, more delegations coming and one of the main point we will be discussing is the sustinabilities and the role of the food sector and food companies toward the event we are having this year.
As you said, food sector because of its importance - and because of its size - you don't go to the bank every day, but you eat every day.
00:23:09 Speaker 1
Right.
00:23:10 Speaker 2
So, it's something which you do on a daily basis. So, this is why food sector comes as the third or second important sector in our country.
For us to overcome all the challenges which will be discussed in COP 28, the food sector will have a major role to contribute as individual - and as corporate.
And this goes into as is, it goes into every element from all the stakeholders…manufacturer, farming, consumer and distributions…because everybody has a role. We talk about waste…
00:23:51 Speaker 1
Yes.
00:23:53 Speaker 2
Where do we start?
When we talk about CO2, who is responsible for all these elements? Food sector has to play a major role and we are working closely with Her Excellency, Mariam and finding initiatives, finding projects long term for all the companies to participate in.
00:24:23 Speaker 1
That's great.
00:24:24 Speaker 2
And we are coming with an award which will be launched in this Future Food, related to put the showcase of the good companies who are really working toward overcoming these challenges, we were talking about. In the COP 28.
00:24:40 Speaker 1
Right. I look forward to it and I look forward to seeing the development of the food industry. Mr. Saleh Lootah, thank you so much for your time today. We appreciate having you here with your insights and the conversation.
00:24:50 Speaker 1
Thank you so much.
00:24:51 Speaker 2
Thank you for having us, Ahmed.
00:24:51 OUTRO V/O
‘Economic Impact. Conversations from Emirates Development Bank’.