Investing In Ethics: An Interview with Ayman Maamoun Tamer, Chairman of the Tamer Group
Ayman Maamoun Tamer, Chairman of the Tamer Group, discusses how the 98-year-old family business continues to innovate and keep ethics at its core.
The value of environmental, social, and governance assets in investing has grown to $40.5 trillion globally, how has this impacted the strategy of the Tamer Group?
Companies around the globe have to act on their purpose, which now includes not only making profit but adhering to Environment, Social, Governance and Data stewardship (ESG&D). ESG&D considerations are increasing in importance today. Such investment in the ecosystem opens the eyes of all industries to the need to build more sustainable business models with all stakeholders.
Tamer is a family business preparing today to introduce the fourth generation to be part of the management team. For the past 98 years serving the market in Saudi Arabia, Tamer has taken many initiatives to ensure sustainability of the business, which has survived for many generations. We have always kept the 3Ps in our strategy: people, planet and profit.
What changes have you made to make the Tamer Group more sustainable?
We are working to adopt common metrics and to eventually have clear and transparent reporting on the impact we are having on the planet and society, in addition to our other stakeholders. We need to look at climate change, nature loss, and fresh water availability among other things. And for people, we need to look at their wellbeing, dignity, and equality, and of course their skills and development for the future.
Although it sounds simple, I have realized that adopting good governance and focusing on sustainable value creation to all stakeholders is the only way forward. This should of course include our planet. Examples of such metrics under governance includes having a clear purpose for the company and having clear stakeholder engagement as well as ethical behaviors, such as anti-corruption.
We introduced corporate governance, segregation of duties and separation of ownership from management. This journey took almost two years to complete. We adopted a new strategy to serve Saudi patients and consumers through normal and tough periods. We gained the trust of our customers by being committed to serving them by providing the best quality products at the right time. We established our CSR arm, “SA’AID,” to give forward and contribute to the community in various projects.
How does your SA'AID program tie in to the Sustainable Development Goals?
SA’AID in Arabic means “forearm,” which symbolizes the part of the body that connects the body (“the community”) and the hand (“the company”). In English, “SA” is an abbreviation of Saudi Arabia, while “AID” represents reaching out and collaborating.
The Sustainable Development Goals are a complete mission that will require further focus and resources in order to achieve transparent reporting and real progress in this domain. SA’AID is just one arm managing our social community services, which include supporting different projects that focus on leveling up health, education, women empowerment, art and culture, workplace wellness, and community development for different categories of the community.
Where do you think growth in Saudi’s pharma sector will come from over the next ten years?
Saudi’s pharma sector grew from $7 billion in 2015 to $8.6 billion in 2019. Growth drivers for total market were mainly oncology, diabetes, and rheumatological diseases (immunotherapy). Vaccines and other biological drugs will also grow substantially in this market.
The government sector will remain the main driver for growth. The healthcare system in Saudi is and will still be supported by government services. Private sector contribution is increasing with all kinds of privatization initiatives supported by Saudi Arabia’s Vision 2030, but still the government will have the larger share of contribution.
How has Tamer Group’s governance evolved over the years?
Family businesses are often precariously short-lived and are vulnerable when it comes to handing down the business, especially from one generation to another. However, such a predicament can be overcome if there is transparency, accountability, family trust, no conflict but healthy discussion, and good leadership. Tamer Group has been governed according to an implicit agreement based on these principles, rules, and values among the members of both the second and third generations.
We have established a more formalized and structured governance within the family through a Family Constitution, and within the business by implementing the best corporate governance practices whether those practices are mandatorily required or not.
How has Saudi’s Vision 2030 changed the way you do business?
Digital transformation plays a major role in Saudi’s Vision 2030. Tamer Group has started to sync with the Ministry of Health in many initiatives, such as through its national screening program, and the national VNA and tele-radiology platforms. These initiatives help to share the experience of resources from Ministry of Health hospitals with other hospitals, which do not have the needed resources, to reach more patients and provide the best healthcare service for the Saudi community.
The localization of all industrial sectors is a central tenet of Vision 2030. Tamer Group is on a mission to develop the organization and the healthcare industry to help increase the income of the kingdom, generate job opportunities, and brighten the future for younger generations.
The group has invested in global and local startups. What are the factors that you consider before investing in a startup?
The first thing we consider in investments is the ethics of the industry we are entering. We often look at investments that have a holistic advantage to both the family office and regionally for the holding operating group. These investments include healthcare, pharmaceuticals, medical devices, manufacturing pharmaceuticals and vaccines, consumer nutrition products, consumer goods, and beauty products.
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