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Zaid S. Al Khayyat, Managing Director of Al Khayyat Investments (AKI), explains how his company is preparing for future success through diversification, expansion, and family values.

AKI is soon celebrating its 40th anniversary. Can you take us back to the early days of the business, and how AKI set its roots in the region?

It has been an incredible journey these past four decades. AKI was founded in the U.A.E. in 1982 by Dr. Saad F. Al Khayyat, who remains our chairman. At the time, the company was licensed under Alphamed General Trading. With a staff of four and a first-year turnover of less than $100,000, Alphamed would go on to be a pioneer in its field. It continues to operate as an entity within the modern AKI portfolio, focusing on the sale and distribution of many of the world’s leading brands of pharmaceutical and medical products.

Through our achievements with Alphamed, new doors began opening for us. We also capitalized on untapped distribution and retail opportunities that we saw in other sectors. Our philosophy to forge progressive, profitable, and healthy partnerships caught the attention of those inside and outside of the pharma business.

From FMCG (food and non-food) to fashion and lifestyle, automotive, and more, AKI brands are regarded as leaders in their categories today. Our operations span across eight core business units within four business lines: retail, distribution, contracting, and automotive.

This has been a year of geographical expansion for AKI. Why have you made the decision to look beyond U.A.E. borders, and what is your strategy in this regard?

We have had many organic opportunities to expand beyond the U.A.E. We’ve actually been present in other GCC countries and markets like Iraq for a number of years, but our strategy has always been to lead the categories that we operate in. We do not enter a market if we do not wholeheartedly believe that we can create impact at scale over the long term.

This year, we’ve identified many opportunities to create this impact. We have entered Saudi Arabia and Egypt in the last 12 months, for example. We have also expanded our presence in countries like Oman. These investments all play a role in a wider expansion plan across the MENA region.

Diversification has also been a hallmark of AKI’s evolution. What verticals do you place your focus on today?

We recognize that different industries have distinct needs. Each AKI business unit thus brings specialized industry expertise to the table. In that sense, we see unique opportunities in every industry we operate in, and we are looking to new frontiers as well. This is why we’re continuing to invest heavily in our shared infrastructure, including a new fulfillment center located in Dubai Industrial City that will support all our business units in their growth plans.

AKI has been quite aggressive in investing in digital infrastructure. What spurred this strategy, and what value does it create for your people and partners?

The AKI board firmly believes in the benefits of technology to enhance our competitive edge and to bring efficiency in all aspects of our operations, while providing excellent customer experiences. Our technology platforms helped us navigate the early challenges posed by the Covid-19 pandemic. Today, automation and stringent system controls allow us to track and deliver inventory with high levels of accuracy, with over 2.5 million items picked in our warehouses monthly. Our larger customers have direct system interface with us too, allowing efficiencies for both parties. Real-time data for inventory levels and sales volumes also makes us a partner of choice. The use of automation, AI tools, and other state-of-the-art systems allows us to run a highly efficient operation and deliver on our business priorities.

AKI operates in fields where competition for talent is immense. What do you think is the key to finding and retaining the best people in the market?

People come first at AKI. A company is only as good as its people. This is true across all our business units and is a shared belief amongst our management teams. One of the characteristics that I think keeps people engaged at AKI is a genuine sense of cooperation and belonging. At AKI, we invest in people development as well as the resources to deepen collaboration with both internal and external stakeholders. This fosters engagement across AKI, and ultimately, better talent retention that goes beyond simple financial motivation.

Do you believe that being a family business has contributed significantly to AKI’s success?

Absolutely. Our “family” mentality remains an integral part of our corporate culture and extends to how we view people as the key source of our success. Having Al Khayyat family members play a guiding role in the business also helps us to connect our past with our future; the lessons we’ve learned and the relationships we have cultivated.

Moreover, I think being an independent private business has enabled AKI to stay agile and dynamic. We can make smart decisions quickly but can also adopt long-term strategies in our investments. By combining our family values with strong corporate governance, I believe AKI represents the benchmark of family business success in the U.A.E. and the wider region.

Having already achieved so much in terms of growth, what is your vision for the company moving forward?

In the last decade alone, AKI’s annual turnover has quadrupled. Our operation is now powered by more than 5,500 employees across eight countries. What ultimately keeps us moving from strength to strength are investments in our people and infrastructure. Our people lead with their expertise and experience in delivering success. We all share a cooperation mindset and an entrepreneurial spirit. Together, we plan to not just retain our leading position in the market, but to expand our footprint. We constantly want to innovate and look for greater value for our partners and stakeholders. We want to be first. So, while we look at our size and profitability like any other business, we also consider opportunities that will add equity to AKI and our partners.