I am reposting this article from Arab-News lest it goes missing in history. All rights belong to Arab-News:
Muhammad Al-Harbi
Tuesday 29 May 2012
Saudi Arabia’s rags-to-riches billionaire Sulaiman Al-Rajhi is
also a world-renowned philanthropist. He is the founder of Al-Rajhi
Bank, the largest Islamic bank in the world, and one of the largest
companies in Saudi Arabia. As of 2011, his wealth was estimated by
Forbes to be $7.7 billion, making him the 120th richest person in the
world. His flagship SAAR Foundation is a leading charity organization in
the Kingdom. The Al-Rajhi family is considered as one of the Kingdom’s
wealthiest non-royals, and among the world’s leading philanthropists.
Al-Rajhi is a billionaire who chose last year to become a poor man at
his own will without having any cash or real estates or stocks that he
owned earlier. He became penniless after transferring all his assets
among his children and set aside the rest for endowments. In recognition
of his outstanding work to serve Islam, including his role in
establishing the world’s largest Islamic bank and his regular
contribution toward humanitarian efforts to fight poverty, Al-Rajhi was
chosen for this year’s prestigious King Faisal International Prize for
Service to Islam.
In an interview with Muhammad Al-Harbi of Al-Eqtisadiah business daily,
Al-Rajhi speaks about how he was able to succeed in convincing chiefs
of the leading central banks in the world, including that of the Bank of
England, nearly 30 years ago that interest is forbidden in both Islam
and Christianity, and that the Islamic banking is the most effective
solution to activate Islamic financing in the world and make it a real
boost to the global economy.
The story of Al-Rajhi is that of a man who made his fortunes from
scratch, relying on grit and determination. Al-Rajhi threw away his huge
wealth through two windows — distributed a major part of his
inheritance among his children and transferred another portion to
endowments, which are regarded as the largest endowment in the history
of the Islamic world. He had to fight poverty and suffering during his
childhood before becoming a billionaire through hard work and relentless
efforts, and then leaving all his fortunes to become penniless again.
Al-Rajhi is still very active and hardworking even in his 80s with
youthful spirits. He begins his work daily after morning prayers and is
active until Isha prayers before going to bed early. He is now fully
concentrated on running the endowment project under his SAAR Foundation,
and traveling various regions of the Kingdom managing activities
related with it. He always carries a pocket diary containing his daily
programs and activities and he is accustomed to stick on to the schedule
he had prepared well in advance.
Al-Rajhi scored excellent performance results in almost all businesses
in which he carved out a niche for himself. In addition to establishing
the world’s largest Islamic bank, he founded the largest poultry farm in
the Middle East. The credit of activating the organic farming
experiment in the Kingdom mainly goes to him through launching a number
of farming projects, including Al-Laith shrimp farming. He also
established real estate and other investment projects.
Excerpts:
Sheikh Suleiman, have you become a poor man again?
Yes. Now I own only my dresses. I distributed my wealth among my
children and set aside a portion for endowment to run charity projects.
As far as I am concerned, this situation was not a strange one. My
financial condition reached zero point two times in my life, and
therefore I have had the feeling and understanding (about poverty) well.
But now the feeling is accompanied by happiness, relaxation and the
peace of mind. The zero phase in life this time is purely because of my
own decision and choice.
Why did you choose this path?
All wealth belongs to Allah, and we are only those who are entrusted
(by God) to take care of them. There were several reasons that prompted
me to distribute the wealth and that resulted in performing this virtue.
Most important among them is to foster brotherhood and love among my
children and safeguard their harmonious relationship. This is more
significant than any wealth in this life. I was also keen not to be
instrumental in wasting the precious time of courts in case of any
differences of opinion among them with regard to partition of
inheritance. There are several examples that everybody could see when
children entered in dispute over wealth and that led to the collapse of
companies. Nation has lost many large companies and their wealth that we
could have been saved if we tackled the matter in a right manner. Apart
from this, every Muslim should work on some endowments that could
benefit him in the life after death. Likewise, I prefer my children to
work on developing wealth, which they inherit after my death, during my
lifetime itself rather than I continue working to increase them.
Are you getting enough free time after the distribution of wealth?
As earlier I am still working on developing endowments. I will donate
and give alms from it until Allah takes over this trusted deposit. I
have worked out a meticulous scheme for this endowment and developed it
with the support of specialist consultants and agencies. This idea
struck me long before. Usually people in the Islamic world set aside
one-third or one-fourth of their wealth for endowment and that will be
effective only after their death. But in my case, I decided to implement
this decision in my lifetime itself. So I invited my children to Makkah
during the end of Ramadan and presented the idea in front of them. They
readily agreed it and then I distributed my wealth among my children in
addition to setting aside a part of it for endowment. I sought the help
of consultants to facilitate the procedures for the distribution of all
my assets including properties, real estates and stocks, and that was
completed in a cordial atmosphere. All my children are now fully
satisfied with my initiative and they are now working on these
properties in my lifetime.
How much wealth you distributed among children and set aside for endowment?
He laughed without giving an answer.
How do you feel now about your projects?
I would like to point out that there were some factors that prompted me
to make investments in certain specific areas. My experiment in money
exchange was the temptation to set up a bank. The absence of any Islamic
banking was also another factor in establishing Al-Rajhi Bank, which is
now the world's biggest Islamic lender by market value. I began the
experiment with opening an office in Britain where we introduced Islamic
banking system at a greater level. The experiment was a success and it
had received total backing of the Saudi Islamic scholars at that time. I
still recall the application made for getting license for the bank was
turned down in the beginning. This was because the concerned British
officials did not have any idea about Islamic banking. Therefore, I went
to London and met with the manager of the Bank of England and two of
his deputies. I told them that Muslims and Christians see interest as
forbidden (haram), and the Muslim and Christian religious people are
unwilling to make transactions with banks based on interest and instead
prefer to keep their cash and other valuables in boxes at their homes. I
tried to convince them that (if we establish Islamic banks) this money
would be helpful to strengthen the world economy. These talks were
helpful in convincing them and they agreed to open Islamic banks. Then I
traveled widely throughout the world in the West and East, and met with
the chiefs of central banks in various countries and explained to them
about the salient features of the Islamic economy. We started working
and achieved success through launching it in the Kingdom and
implementing it in London. When I returned to the Kingdom from London, I
met the late Grand Mufti Sheikh Abdul Aziz bin Baz and Sheikh Abdullah
bin Humaid, and informed them about the plan saying: 'We would reach, by
the grace of Allah, the Islamic banking within a stipulated period of
time.' They praised me for the initiative. We started aggressively
implementing the project and that is in the form of Al-Rajhi Bank as you
see now. Regarding Al-Watania Poultry, the idea of establishing such a
venture struck me after my visit to a poultry project abroad. I saw that
the way of slaughtering chicken was not proper. Then I decided to make
investments in the field of poultry after considering it as a duty to my
religion and nation. I started the project even though making
investments in poultry involved high risks in those days. Now Al-Watania
has become a mega Saudi project that is instrumental in achieving food
security in many respects. The company enjoys a 40 percent market share
in the Kingdom, and Al-Watania chickens are naturally fed and halal
slaughtered in accordance with the Shariah principles.
What about your insistence on introducing organic farming through Al-Watania agricultural projects?
As you see, now I am 85 and still enjoy good health. If we pursue
organic farming as our healthy food style, we can bring down cost of
treatment to a great extent. We made several experiments in the field of
organic farming. Our numerous experiments met with setbacks in the
beginning. This prompted many engineers and workers to reach a
conclusion that it is impossible to have organic farming and profit
together. In the beginning, they were firm in their view that this would
not at all be successful. But I insisted that it would work and
continued compelling them to proceed with the venture. At one time, I
took a firm position and told them either to do organic farming or quit.
Now we are reaping the fruits of this lucrative business in line with
my vision to provide only the healthiest, safest and most trustworthy
food to consumers. Al-Watania Agricultural Company stopped using
chemicals and artificial fertilizers and focused exclusively on organic
methods such as the use of pest insect repellants and animal manure.
Your austerity and thriftiness on spending are well known. Please comment?
I am not a miser. But I am always vigilant against extravagance. I
always try to impart this lesson to all those working with me whether it
is in banking or poultry or other projects, and I am more concerned
about it when it is coming to the case of my children. In the past, I
never gave money to my children when they were young in return for
nothing. When any one of them approached me to give them cash, I asked
them to do some work in exchange for it. In our life, we practice some
extravagance without being aware of it. But it affects our whole life,
exhausting us and putting a burden on our country. For example, there is
no logic in putting heavy curtain on our windows and then lighting
lamps in daytime when we get sunlight free of cost while electric lamps
are costly.
Despite all your wealth, why don't you still have a private aircraft?
Let me tell you that I have many planes but they belong to various
airlines. I have ownership in all of them to the tune of the ticket fare
that I pay for each travel. I always travel in economy class with the
conviction that Allah bestowed us wealth not for showing arrogance or
spend extravagantly but to deal with wealth as a trusted property.
What about the recreation and hobbies of Sheikh Al-Rajhi? How do you spend free time?
I have not any special recreations. However, I find happiness and
enjoyment while making a trip to the desert. I never went out of the
Kingdom on a tourism trip.
What about your will? What are its salient features?
Regarding my will related with wealth, I have already implemented it in
my lifetime. As for the remaining aspect of my will, it is a public
matter and also involves certain private matters, besides encouraging my
children to maintain their kinship and always reminding them about the
life after death.
How do you see your children's private investments? Are there any directives to them?
A number of them are doing an excellent work in accordance with their
knowledge and experience. Most often, I try to guide them when I noticed
anything undesirable even if it is in their private investments.
Regarding my younger children, I always guide them, especially in the
case of their investments. This is purely out of my keenness that they
should be honest in their work as well as in spending wealth given by
God as a trusted property. I am also eager to hear about my children
that they are interacting with the society in the best possible manner,
and that they are serving their religion and nation.
In what way you like to spend your time? What are the places that you like most?
I used to travel between Riyadh, Qassim, Al-Jouf, and Al-Laith to
oversee my projects there. I always prefer to visit the farms in Qassim
and Al-Jouf.
How could you preserve many old and precious things and antiques at Suleiman Al-Rajhi Museum?
A long time ago when I was in Jeddah, I was keen on preserving heritage
pieces and gathered them together, especially those related with money
exchange. There would be a history with every human being. The museum
tells the story of money exchange. I particularly kept registers and
cash boxes that were used when I started the money exchange business.
The first cash box was made of wood, and there was a huge treasure box
in which we kept our gold and silver. The artifacts kept at the museum
tells the evolution of currency in the Kingdom through issuance of bank
notes, as well as some currencies and coins that were in circulation
among the Haj pilgrims. A major factor that prompted me to set up the
museum was the visits made by a large number of officials from various
countries to know more about these old coins and currencies. We have had
to exhibit these rare collections in front of them to explain about our
history and heritage, especially those related with money. I was keen
to furnish the museum with historic and heritage pieces, especially with
the same materials used for construction in the past. Hence, the roof
of the museum was made of palm branches, and that was the case with the
seating arrangements at the museum.
Al-Rajhi's punctuality
The interview also sheds light on many qualities of Al-Rajhi, including
his punctuality. "In the beginning of my business career, I had
appointments with several top European company executives and officials.
I still remember that I reached late for such an appointment due to an
unavoidable reason. My delay was only a few minutes but the official
excused himself for the interview. Later, after expansion of the
projects, the same official came late for an interview with me so I
excused myself for the interview. I always carry a paper to note down
the schedule of meetings and stick to the schedule at any cost."
Al-Rajhi continued: I am always keen to strictly adhere to the
Islamic principles throughout my life. Once I received an invitation
from an Arab government to attend an investment conference there. On the
sidelines of the conference, I was invited to take part in a dinner
reception. When I reached there, I found a recreational program, which
is contrary to our religious customs and traditions, taking place. So I
quit the place immediately and, Abdul Aziz Al-Ghorair from the UAE also
joined me. Soon minister plenipotentiary rushed to us, and we explained
to him that the function is against our Islamic tradition. So he
informed us that the recreational party would be cancelled. When they
canceled that party, we participated in the dinner.
Tackling crises
Al-Rajhi said: There was a huge fire that gutted down one of my
factories managed by my son. When he came to inform me about it, I told
him: Say praise be to God. I asked him not to submit any report about
the losses to the authorities seeking compensation. In fact, the
compensation is from Allah and it is essential for us to be satisfied
with What Allah destined for us. Assam Al-Hodaithy, financial director
of Al-Watania Poultry, said: "When the fire broke out at the factory, we
decided not to hurt Sheikh Al-Rajhi by informing about it at that
moment. Later, when we met him next morning, he told us to shift the
factory to another place and remove the debris until completion of
reconstruction." There was a similar fire at Al-Watania Poultry project
in Egypt. The company incurred losses worth SR 10 million Egyptian
pounds. When the concerned factory official contacted Al-Rajhi to inform
about the fire, he was surprised to hear an instant reply from him:
"AlHamdulillah."
http://www.arabnews.com/sulaiman-al-rajhi%E2%80%99s-life-rags-riches-story
