#ABtalks Business with El Gouna Red Sea - Samih Sawiris | Chapter 6 | مع سميح ساويرس

Who is Samih? Exploring the Life and Philosophy of a Business Leader

Celebrating 35 Years

• The conversation begins with a mention of celebrating thirty-five years, hinting at significant milestones in Samih's life and career.

• Samih reflects on his decision to transform a place into a city, indicating his ambition and vision for growth.

Personal Reflections

• When asked about happiness, Samih reveals that money was once a source of joy but questions its value now.

• He discusses the importance of separating work from family, suggesting that personal relationships can be strained by business ties.

Lessons Learned from Mistakes

• Samih shares insights on learning from mistakes, particularly mentioning the El Gouna Project as a significant misstep.

• He emphasizes the need to pause and reflect in an increasingly fast-paced world driven by numbers.

Understanding Leadership

• The series #ABtalks Business aims to uncover the human stories behind successful brands and organizations.

• It poses critical questions about how personal experiences shape leadership styles and business success.

The Human Element in Business

• Samih argues that everyone is fundamentally similar despite titles; true success comes from humility rather than self-aggrandizement.

• He challenges the notion that hard work alone leads to success, attributing much to luck or divine provision instead.

Influences from Family

• Reflecting on parental influences, he cites perseverance and commitment learned from his father.

• From his mother, he learned the value of giving back, emphasizing generosity instilled since childhood through actions like distributing toys during Christmas.

Nature vs. Nurture Debate

• Samih discusses how childhood experiences shape individuals significantly—both positively and negatively.

• He asserts that factors beyond one's control contribute greatly to success; luck accounts for approximately 60% according to his studies.

Humility in Success

• He critiques those who believe their achievements are solely due to their efforts without acknowledging external factors like timing or location.

• This perspective fosters humility and realism among successful individuals, contrasting with those who feel constant pressure due to inflated self-worth.

Personal Growth Over Time

• When reminiscing about his youth, Samih feels unchanged despite physical signs of aging; he maintains consistent hobbies and lifestyle choices over decades.

Bucket List and Life Goals

The Concept of a Bucket List

• The speaker reflects on their unchanged lifestyle, mentioning the concept of a bucket list, which includes goals for different life phases.

• The last item on their bucket list was to tour the world by boat, inspired by reading "Around the World in 200 Days" by Anis Mansour.

• After years of waiting due to financial and family commitments, they finally traveled the world with their children for a year, completing this goal.

New Challenges and Learning

• At age 59, the speaker decided to learn piano as a new bucket list item with a goal to perform with an orchestra within six years.

• This commitment created pressure but also made life more fulfilling through continuous goal-setting.

Setting Goals and Managing Pressure

• The speaker draws parallels between personal goals and those set by famous athletes like Michael Jordan and Muhammad Ali, emphasizing self-imposed pressure as a motivator.

• They highlight that setting specific timelines (e.g., performing at 65) can enhance accountability and drive success.

Transforming Visions into Reality

Building El Gouna

• Upon starting work in El Gouna, the speaker envisioned transforming it from a simple tourist project into a full-fledged city over fifteen years.

• They identified essential components for city development such as hospitals, schools, airports, and sports facilities.

Importance of Goal Setting

• Emphasizing flexibility in goal-setting is crucial; one should avoid being overly harsh or setting unrealistic timelines to prevent unnecessary stress.

Exploring New Ventures

Directing Films

• A year or two ago, after completing piano lessons, the speaker ventured into film directing as another first-time experience.

• They express newfound respect for filmmaking's complexity compared to real estate development due to its high stakes regarding quality elements like music and acting.

Challenges in Filmmaking

• The speaker notes that mistakes in film production are less forgiving than in other projects; poor execution can ruin an entire film.

Redefining Happiness Beyond Wealth

Changing Perspectives on Money

• Reflecting on past aspirations for wealth, the speaker shares that accumulating money no longer brings happiness; instead, fulfillment comes from social contributions.

Charitable Projects

• They discuss involvement in building a children's heart hospital in Rwanda alongside Dr. Magdi Yacoub. This project aims to address critical healthcare needs where many children suffer without treatment options.

Joy from Contribution

• Contributing to meaningful projects now provides greater joy than previous material successes; this shift represents personal growth towards valuing impact over wealth.

Discussion on Happiness and Wealth

The Relationship Between Money and Happiness

• The speaker expresses joy in seeing funded projects come to fruition, challenging the notion that money only brings happiness when shared.

• Acknowledges that many derive pleasure from hoarding wealth rather than sharing it, contrasting this with those who act unethically for personal gain.

• Highlights that true happiness is often misattributed to wealth; references Mike Tyson's quote about the misconception of money bringing happiness.

• Emphasizes the necessity of basic needs being met before one can experience happiness, noting that financial stress hinders overall well-being.

• Discusses how the joy derived from money diminishes after a certain point, suggesting that real happiness comes from helping others.

The Joy of Giving

• Shares personal fulfillment found in helping others, particularly through scholarships or educational support, which creates significant impact without high costs.

• Notes that while wealthy individuals often give out of responsibility rather than joy, there are exceptions who find genuine satisfaction in giving.

• Expresses excitement about completing a hospital project in Rwanda aimed at saving lives across multiple countries, highlighting its importance for medical access.

Challenges in Philanthropy

• Discusses the logistical challenges faced by people needing medical care and how proximity to healthcare facilities can save lives.

• Warns against irresponsible spending of charitable donations in corrupt environments where funds may not reach intended beneficiaries.

Maintaining Curiosity and Engagement

• Stresses the importance of staying curious and engaged with society to avoid stagnation; suggests engaging with youth as a way to foster curiosity.

• Mentions involvement with startups as a means to explore new ideas beyond monetary gain, emphasizing enrichment through learning about innovative fields.

Difficult Business Decisions

• Reflecting on past business challenges during economic downturns (e.g., Luxor crisis), shares insights on making tough decisions to sustain operations despite financial risks.

• Describes taking significant risks during difficult times but ultimately feeling grateful for having had the courage to make those choices.

Mistakes in Real Estate Development

Learning from Mistakes

• The speaker reflects on the significant risks taken, including mortgaging everything they owned, highlighting the potential for total loss if crises persist.

• They express a desire to write a book detailing all the mistakes made throughout 35 years of experience in real estate development across seven countries and sixteen projects.

• Acknowledges that making mistakes provides opportunities for correction before public awareness; cites the El Gouna project as an example of initial misjudgment.

Project Challenges

• Discusses logistical challenges faced during the El Gouna project, such as transportation difficulties for essential supplies like bread and fuel, which increased operational costs significantly.

• Shares a personal anecdote about a reckless surgery on their leg, emphasizing the importance of waiting for technological advancements before making decisions.

Coping with Adversity

• Describes spending three months immobilized after surgery and contrasts past experiences with modern conveniences that help alleviate boredom during recovery.

• Reflects on how past hardships fostered creativity and curiosity due to limited entertainment options compared to today's technology-driven distractions.

Family Dynamics in Business

Sibling Characteristics

• When asked to describe his brothers, Naguib is characterized as "fearless" but potentially irresponsible, while Nassef is described as calm and objective in decision-making.

• The speaker admits to being emotional in business decisions, often driven by passion rather than purely financial considerations.

Separation of Work and Family

• Clarifies misconceptions about working together with siblings; each brother established separate companies under the Orascom name while maintaining familial support.

• Emphasizes that despite operating independently, they are still partners within their father's overarching company structure.

Effective Business Management

Building Independent Teams

• Discusses the importance of having teams capable of running businesses autonomously without direct oversight from leadership.

Delegation Skills

• Shares insights into hiring practices aimed at reducing personal workload by delegating tasks effectively to skilled individuals who can handle specific responsibilities.

Value of Time

• Stresses that time is the most valuable resource; those who fail to delegate become overwhelmed by work demands.

• Warned against micromanagement; emphasizes that true growth comes from trusting others and allowing them autonomy in their roles.

What Does Leadership Mean Today?

The Importance of Time and Leadership

• Emphasizes the need to balance work with personal life, questioning when one will have time to live, play, and socialize.

• Defines modern leadership as leading by example; respect and value in an organization are crucial for effective leadership.

• Critiques leadership styles based on intimidation or control, highlighting that true leadership fosters respect rather than fear.

Wealth and Personal Growth

• Discusses the importance of allowing children to develop their own drive instead of giving them wealth outright; experiences shared among siblings are valuable.

• Reflects on the necessity of wealth circulation within society, suggesting that hoarding wealth contradicts religious teachings about generosity.

Reflections on Building El Gouna

Naivety as a Strength

• Expresses gratitude for not knowing the challenges ahead while building El Gouna; naivety can provide courage to undertake ambitious projects.

• Shares insights into logistical challenges faced during development, such as high costs for water and electricity in a desert location.

Comparison with Other Projects

• Compares his approach with a more cautious professional who took years to secure funding before starting his project; highlights differences in mindset.

• Notes that despite being behind in planning, he was able to build more quickly due to a less cautious approach.

The Unique Aspects of El Gouna

Community Focus Over Profit

• Describes how El Gouna is built with community values at its core; creators view residents as family rather than just customers.

• Highlights investments made in local infrastructure like hospitals without focusing solely on profit margins; prioritizes quality care for residents.

Pride in Development Choices

• Discusses decisions made for community pride over financial return, such as hosting festivals that enhance local culture rather than merely selling properties.

• Points out the aesthetic choices made in city planning (e.g., wide streets), emphasizing quality over quantity or immediate financial gain.

El Gouna: A Vision of Community and Success

The Essence of Investment in El Gouna

• The speaker emphasizes that investments stem from genuine love for the place, highlighting the importance of community loyalty over direct financial returns.

• Word-of-mouth recommendations are crucial; a good reputation leads to high quality of life, encouraging people to invest in properties they can personally enjoy with family and friends.

• Success is defined not by sales volume but by the happiness and satisfaction of residents, indicating a shift towards valuing community well-being over profit margins.

Defining Success Through Community Happiness

• The speaker reflects on their hotel, Le Maison Bleu, as a testament to success; it’s not just about luxury but also about creating memorable experiences for guests.

• A notable endorsement from the CEO of Four Seasons highlights how exceptional hospitality can serve as an effective marketing tool for real estate investment.

Impact of Hospitality on Real Estate Sales

• Guests who experience the charm of Maison Bleu often choose to purchase villas in El Gouna due to their positive stay, illustrating how quality service drives property sales.

Reflecting on Milestones

• As El Gouna celebrates 35 years, the speaker expresses amazement at how quickly time has passed since its inception, reflecting on personal memories tied to its development.

• The eighth anniversary of the El Gouna Festival serves as another reminder of growth and community engagement over the years.