Chairman & CEO’s Message

His Excellency Mr. Amr Al-Dabbagh

With the peak of summertime behind us and the days getting shorter, the summer season has not been short of activities across ADG. From Tanmiah Food Company’s (TFC) IPO to taking the first step to launch the 2021 Omnipreneurship Awards Sustainability Grand Challenge, our teams have been energetically getting things done. We have also issued our first annual Giving and Sustainability reports, covering our impact and achievements for the year 2020.  

It’s not a secret that the pandemic remains ongoing, but I am pleased to see how much we have adapted and the resilience shown by each of us across all group companies and the achievements we’ve made despite it. Here is to hoping the remainder of the year will be as active and vibrant. Wishing you and all your loved ones good health and happiness, today and always.

Saudi Arabia’s Fastest Woman is a C32er!

By Lana Ayoub, Communications Manager, ADG

You probably already heard the exciting news, but one of our very own made it to the Tokyo 2020 Olympics earlier this summer. After some gruelling training across countries spanning the U.K to right here at home in the Kingdom, Yasmeen Al-Dabbagh not only qualified for the Olympics, but also broke the national female record for the 100-meter dash.

Having taken part in the 100m race in Tokyo, Yasmeen’s sights are now set on preparing for the Paris 2024 Olympics.

Commenting on her overall experience to Arab News , she said “My motto in life has always been to never give up,” she said. “As much of a cliché as that may sound, it genuinely helped me overcome many obstacles and fears to get to where I am today. I was told by one of my biggest idols, who is now my coach, Linford Christie, that I have the ability to make it to the Olympics. Ever since then, I have been working really hard to get to where I am today but this is only the start. As the saying goes, a journey of one thousand miles begins with one step. I consider this as a first step on a long journey to come, inshallah.”

After all the excitement came to an end,  Yasmeen took to Instagram, saying “I fell short of my own expectations of breaking my personal record. Nonetheless, it was a reminder to put my trust in God, to be patient. It wasn’t my time, but my time will come InshaAllah. I gained an experience of a lifetime. I am determined to learn from my mistakes and grow as an athlete and competitor. This is only the beginning, and it just so happens to be at the world’s biggest stage. The Olympics lit a fire within me to aim higher and push further. Looking forward to competing again soon, and I hope to raise the Kingdom’s flag high”.

Good luck to our superstar C32er: we can’t wait to see what the future has in store for you!

Tanmiah’s IPO Journey

By Irfan Nagi, Chief Financial Officer, TFC

On the eve of June 8, 2021, we received approval from Capital Market Authority, KSA for floating Tanmiah Food Company 30% shares at the Tadawul which means out of the total 20 million shares, 6 million shares were offered to the public. This approval marks a very important achievement for Dabbagh Group, firstly as Tanmiah is the first fully dependent poultry business to be approved by the CMA and secondly this approval very clearly exhibits the groups governance and professionalism in conducting its business affairs paving way for future listings of its businesses.

We had more to celebrate shortly after this approval, by completing the quickest institutional book-building turnaround within 20 days.  The resultant book building was a whopping success whereby the IPO was oversubscribed by 95 times, the largest percentage in recent Tadawul history. This was followed by a successful retail subscription and listing on Tadawul and it beagn trading under the symbol 2281 on August 4, 2021 under the consumer staples sector. 

The IPO priced at SAR 67; the top end of the range previously set at SAR 59-67. In accordance with the IPO Prospectus, six hundred thousand (600,000) Ordinary Shares were allocated to individual investors, representing 10% of the total shares offered for public subscription, while five million four hundred thousand (5,400,000) Ordinary Shares were allocated to institutional investors, representing 90% of the total offered shares. Proceeds of SAR 402 million were raised by the offering.

Tanmiah embarked on this journey in September 2018 and went through a transformation of being a family owned business to a publicly listed company during this 2.5 year period.  The key drivers for Tanmiah equity story stems from KSA 2030 vision targeting 100% self-       sufficiency in local poultry production. 

Tanmiah’s IPO journey was marked to date with various milestones along the way. From business realignments to legal structure optimisation, strengthening our operating controls in addition of revalidation of risk management tactics, aligning Tanmiah’s governance in line with CMA and achieving high marks in our IPO readiness. These changes allowed us

1. To think and act more like a public company in our day to day affairs,

2. To make our employees more aware of and compliant with their responsibilities

3. To complete organizational changes, ensuring compliance with increased governance requirements.

4. To Inculcate a new culture of responsibility and empowerment

5. To automate the financial and operational MIS to improve reporting timelines and faster turnaround

6. To become more sustainable

Tanmiah reaped the advantage of these changes especially during the pandemic as we were ready with a business resilience plan well in advance as part of the IPO preparedness, which proved to be a perfect armour against the COVID 19 pandemic which hit the whole world and as a result Tanmiah was able to go through this difficult time with enhanced margins.

All of the above was achieved by a relentless and resilient IPO team lead by CFO, this consisted of staff from finance and were well supported by members from the other department as well. This entire achievement is a result of their dedication, hard work, and self-motivation.

Tanmiah benefits in many ways by becoming a listed company and immediate advantage is by committing to high standards of governance, we become a more competitive business with a more diverse range of partners and voices onboard. The listing will improve the strength and quality of our brand and help it increase the already high trust that it enjoys. This will make it a more attractive prospect for lenders, investors, and employees. Our profile as a listed company will enable us to reduce our future cost of capital by facilitating easier access to both equity and debt financing, to the benefit of current and future shareholders. 

Communication is Key: Microsoft’s Chief Environmental Officer

By Lana Ayoub, Communications Manager, ADG

During our last Sustainability Council meeting, we were given a treat when Lucas Joppa, Microsoft’s Chief Environmental Officer spoke to us.

He shared the journey he made to his current role with us, highlighting what motivated him and lessons learned along the way.  From a young age, Lucas always believed that “nature makes the human world go around” and he is a firm believer that the global economy is predicated on the availability of natural resources. As he told our attendees, Regardless of the industry, “every single aspect of the overall human experience is predicated on the availability and abundance on natural resources”.

So with this mindset, Lucas combined his passion for science and the environment in his studies, landing him an opportunity to join Microsoft’s Blue Sky Research Division. Their task was to think 50 years ahead and how they could lead research programs that fell at the intersection of environmental and computer science. It was this experience that led Luca to develop what is now known as Microsoft’s “AI for Earth” program. One of the foremost lessons Lucas learned in getting AI for Earth started was this: words matter. Before it off the ground, Lucas had sent an email explaining his vision for the program, as a cross-company program to combine all the environmental work undertaken in his research division with deploy the best AI technology to tackle important societal topics such as climate, agriculture and water. Initially the idea received no responses. Months later after a conversation with a colleague who said she found the email he’d shared difficult to understand, Lucas explained it as “AI for Earth”, and that was that.

Once the communication became more clear, and the language aligned with that of the company (Microsoft) as well as their culture, the initiatives of the AI for Earth program took off and interest in it was elevated. Having a big vision like ADG’s “By 2025, ADG has the set the target to be ranked amongst the global top five wholly-owned family businesses in terms of contributing to the SDGs” is exactly what an organization needs to become a leader in sustainable practices across the world.

After an insightful talk, our ADG audience had a bit of time leftover for Q&A with Lucas, ending the session on an energetic note, with  sustainability council members remaining determined to forge their path forward, and make their sustainable mark.

Petromin For the Win

By Sahar Taleb, Chief Omnipreneurship Officer, ADG

The second round of the Omnipreneurship Awards is off to an exciting start! Al-Dabbagh Holding held our second CEO Pitch to determine which of our companies would be launching the second round of our Omnipreneurship Awards Sustainability Branch challenge.

Back in March, the CEOs of our Group companies pitched their ideas. The pitches we heard from our companies that presented were very impressive all looking for sustainable- carbon negative solutions to current problems they are facing in their sector. ADG’s team and group CEOs then voted on the winning idea, and it was a very close vote with only one point between the top three companies. However, the one that ended up standing out to our judging committee was Petromin Lubricant’s challenge. Petromin are seeking solutions to recycle used cooking oil into an environmentally sustainable, biodegradable lubricant, in line with global standards.

The competition will open for submissions from 15 August 2021, and will come to a close on 17th  of November, 2021. As with last year’s Omnipreneurship Award, this year will also see five shortlisted winners once proposals have been submitted. Out of the five shortlisted, one will be selected and receive USD$1 million, and will get to sign a deal with Petromin to further develop and implement their idea. The remaining four finalists will each receive USD$20,000.

In 2020, Al-Dabbagh chose Tanmiah to kick off our external Omnipreneurship Awards: Sustainability Branch. At the outset, Tanmiah was looking for innovative solutions to address the challenges posed by the excess amounts of poultry waste generated by their farms and how to transform this waste into value. We are now in the final stages of this competition and should be announcing our one million dollar awardee by the end of August.

Petromin Nissan Appoints First Female Branch Manager in the Kingdom

By Terence Byrne
Managing Director, Petromin Nissan

At Petromin Nissan the opening of a New Showroom is always a special occasion, but especially so a few months ago in Exit 28 Riyadh.

Etab Al-Mutairi became the first Female Branch Manager in the Kingdom for Petromin and was promoted to this position following her success as a Sales Executive at Khurais. The appointment whilst it is a ‘first’ for Petromin is very much hoped will lead to inspiring more Senior roles being led by ladies. Etab has taken to the role extremely well and has made it her own and we are starting to see the fruits of her labours pay off as sales and customer satisfaction have continuously improved and at this point in writing we are in fact having our best month yet!

We have a plan to continue to empower women within Petromin NISSAN and we are confident that more and more ladies will see what can be achieved and want to progress their careers with us, just like Etab. We already have female Sales Executives and other positions and we now really want the appointment of Etab to be a catalyst for the future, but not limited to Branch Management or a particular department.

We believe that the Motor Trade has traditionally been a male dominated space and industry, and it is obvious, exciting and pleasing that times are changing and at Petromin we want to be at the very forefront of these changes we would always invite all ladies to follow in the footsteps of what we hope will be the first of many appointments of this nature.