Saudi billionaire Mohammed Al Amoudi is growing his businesses in both Saudi Arabia where he got his start and where his father is from, as well as Ethiopia, birthplace of his mother. Indeed, Sheikh Al Amoudi is the biggest individual investor in Ethiopia with a portfolio of interests from hotels and gold mines to agriculture and cement. He is also the country’s most prolific philanthropist. “I have been fortunate in my business career and I believe in giving back to the community,” says Sheikh Al Amoudi.
We recently spoke about his commitment to philanthropy as part of BNP Paribas ‘ and Forbes Insights‘ wider look into philanthropy around the globe. The report, BNP Paribas Individual Philanthropy Index: Measuring Commitment in Europe, Asia, Middle East, lays out significant differences by region. In the Middle East and Africa, Sheikh Al Amoudi is setting the standard for philanthropic giving. Read on for more of our discussion.
FI: What are your core areas of philanthropic focus?
Sheikh Mohammed Al Amoudi: Geographically, I tend to focus upon the Arab World and Africa generally, but particularly Saudi Arabia and Ethiopia. My companies in Morocco and Sweden also have active Corporate Social Responsibility Programs in those countries. In terms of sector, I invest primarily in education and healthcare-related philanthropy directed at improving the health of the wider population (cancer awareness and treatment in the Arab world; and HIV/AIDS awareness and treatment in Africa). I have strong interests in supporting sport, primarily football, and also in developing cultural relationships within national communities and their diasporas, with special reference to Ethiopia.
FI: What led you to focus on your core philanthropic area(s)? A specific event or insight? Something that affected a family member or friend? A family tradition?
Sheikh Mohammed Al Amoudi: I have been fortunate enough to achieve a great deal during my lifetime and to have benefited from the support of the local communities for my business projects. In return, I think it is only right that I ensure that the community benefits from my business success. The public policy motivation is that the maximum benefit should be given to the largest number of people while remaining highly focused on outcomes. God has blessed me so that I can be generous with those in need.
The geographical concentration on Africa and the Arab World derives from this being the environment in which I was born and grew up. My interest in specific areas of healthcare derives from a sense of the current greatest need within respective communities. Football is a personal interest which has been turned into a philanthropic initiative directed at encouraging social cohesion during the difficult process of African modernisation.
FI: How personally involved are you in your philanthropic endeavors, and how would you characterize your primary role? (Deciding on grants? Overseeing effectiveness of programs? Publicizing your cause?)
Sheikh Mohammed Al Amoudi:: I make a personal commitment to the direction and success of all the programs in which I invest. I make all major philanthropic decisions myself after taking account of a range of expert opinion.
FI: Do you use your business acumen in your philanthropic work? How?
Sheikh Mohammed Al Amoudi: There is a natural link between the effective running of my businesses and the effective direction of philanthropic funds. I apply business principles to my philanthropic work so that maximum value is given to the causes I support.
FI: What is innovative about your approach to philanthropy?
Sheikh Mohammed Al Amoudi: I have been fortunate in my business career and I believe in giving back to the community. Since most of my successful business activities have been within the African and Arab communities (although I also have important businesses in Sweden and other developed countries), it is only right that any surplus for philanthropic activity should be directed at supporting those communities which need it most. I tend to focus on providing the tools and means for others to sustain themselves and their families. I hope that my example will encourage others to adopt the same strategy.
FI: Which vehicle do you utilize in your charitable planning? (eg. capital projects, foundation, gifts) Why?
Sheikh Mohammed Al Amoudi: Each case is different but I can say that a proportion is devoted to the support of university education. Through the years I have provided major support for universities in Saudi Arabia, including King Abdulaziz University, King Saud University, King Fahd University and King Abdullah University for Science and Technology (KAUST). My donations have been used for the construction of buildings on campus, including some that generate rental income which is in turn used to support certain University programs. I have also supported education in relation to healthcare issues through university endowments such as the cancer research center at KAUST devoted primarily to breast cancer. Another is to work with trusted partners such as the Clinton Foundation in relation to HIV/AIDS treatment and prevention in Ethiopia, plus upcoming work with the Gates Foundation in relation to food security and agriculture development. A significant emphasis is upon self-sustainability. For example, with our food security agriculture projects in Ethiopia we give neighboring farmers plots of land and provide them seeds and access to our farming experts; we then purchase their crops at market prices. This enables the local farmers to become self-sustaining and no longer dependent on charity. My team uses a variety of methods to ensure that the funds are used most effectively.
FI: How do you promote your philanthropy to attract more money to the cause?
Sheikh Mohammed Al Amoudi: My approach is simply to help others through the various projects and then hope and expect that others are encouraged by my example to do the same.
FI: What’s your time horizon for making a meaningful impact? Are you looking to have a major impact in five or ten years and then shift your focus to another area (either another geographical area or another area of philanthropic focus)? Or do you anticipate focusing on the same area indefinitely?
Sheikh Mohammed Al Amoudi: These matters are under continuous and permanent consideration. Time horizons in the Middle East and Africa can differ from those in the West. We tend to be more patient, and take a longer view.
FI: How do you attempt to measure the impact and cost-effectiveness of your efforts? Do you rely on qualitative measures like site visits or interviews with beneficiaries? Do you use any quantitative metrics, and if so, what do they measure?
Sheikh Mohammed Al Amoudi: I continually review and assess the impact and value of my investments in philanthropy.
FI: What are the biggest challenges you face in fulfilling your philanthropic vision?
Sheikh Mohammed Al Amoudi: One significant challenge is to find the right projects to invest in. The second major challenge is to ensure the adequate delivery of services in the funded areas so that the achievement of my philanthropic goals is maximized.
FI: Who do you partner with — government agencies, businesses, other non-profits?
Sheikh Mohammed Al Amoudi: I will partner with whomever I am convinced will be most effective in any particular situation. For example, I am pleased to partner with the Clinton Foundation on HIV/AIDS treatment and with the Government of Ethiopia on ICASA 2011 and the universities in Saudi Arabia on education and research initiatives. Most recently, we are negotiating to partner with the Gates Foundation on food sustainability and agriculture in Africa.
FI: Do you, or does your charity, use social media to promote your cause, and in what ways? How about traditional media (TV, radio, print)?
Sheikh Mohammed Al Amoudi: The organizations which I fund will often have vigorous promotional programs related to their needs, especially if they are involved in health awareness. I am pleased to contribute to these programs insofar as they raise awareness of issues such as HIV/AIDS, breast cancer prevention and the essential unity of all Ethiopians overseas and at home regardless of ethnic origin.
FI: Do your philanthropic interventions generally have an exit strategy (such as hand over delivery to the local government, leave a profitable business model in place to fulfill the need, create self-reliant community organizations, etc.) or are they intended to remain in place in perpetuity?
Sheikh Mohammed Al Amoudi: Each project has its own natural trajectory and there is no general rule that can be applied.
FI: What percentage of your own net worth do you plan to leave to charity? Roughly what percentage of your income do you give to charity in a typical year?
Sheikh Mohammed Al Amoudi: As a person of the Muslim faith I tend to adhere to principles of Zakat, which is somewhat equivalent to tithing in the Christian faith.
