Elia Nuqul: Governance and Strict Family Separation Safeguard Multi-Generational Enterprise Growth

As a part of our series about 5 Things You Need To Run A Highly Successful Family Business, I had the pleasure of interviewing Elia Nuqul.

Elia G. Nuqul is the third generation of his family to work and lead within the Jordan-based Nuqul Group, a modest, diversified conglomerate. The Group was founded in 1952 by his late grandfather, namesake, and Palestinian refugee, Elia C. Nuqul. Since its beginnings, Nuqul Group has grown to 31 companies employing more than 5,000 employees, selling products and services across 85+ countries. Currently chaired by Elia G.’s father, Ghassan Nuqul, the group operates in industries ranging from manufacturing and trading, to financial services such as wellness and hygienic FMCG, banking and insurance, investments, automotive dealerships, truck and bus dealerships, construction (building materials), packaging, stationery, mattresses and bedding, and more.

Fine Hygienic Holding (FHH), the Wellness and Hygienic FMCG business unit is the core business of the Group and is a global leader. Elia G.’s role as the Head of the Wellness Categories, is to diversify FHH’s product portfolio beyond its core hygienic portfolio.

Elia G. is Co-Founder of Washy Wash, a Scout Investor for Beyond Capital, and a founding member of the Swedish Jordanian Business Network. Elia G. is also a Board Member of the Elia Nuqul Foundation, a non-profit organization (bearing the name of Elia G.’s grandfather), which not only provides educational opportunities, but also equips deserving scholars in-need with the intangible and soft skills needed to be both more employable while also empowering them to outperform peers throughout their careers. Elia G. is also an active investor and mentor, a member of several Family Business Forums, the Advisory Board of PwC’s Family Business Next Gen Program, and the Young President’s Organizations.

Elia G.’s impressive portfolio and accomplishments showcase his commitment to innovation, entrepreneurship, and social responsibility.

Thank you so much for joining us in this interview series! Before we dive in, our readers would love to learn a bit more about you. Can you tell us the story about what brought you to this specific career path?

Growing up under a very hard-working and successful father, I was always in awe and inspired by him and his career path. Such grit and passion made me want to succeed in my own career at a very young age. When I was younger, I would always spend time at the office wearing a suit, sitting in on meetings, and even spending time there after school and during the summer breaks. Some of my colleagues today have known me since I was about six years old and have watched me grow up.

I know the sacrifices my late grandfather endured to establish the business and feed his family of 70 refugees; my father then took the company to unprecedented heights. I feel extremely fortunate to have this platform which I cannot, for a second, take for granted. I internalize this as a sense of positive responsibility to not only sustain, but to grow. My lifelong dream has been to take this Group to heights it has never reached. I am fully committed to not only preserve and grow the legacy, but to also build one of my own.

It’s personal for me. It gives me a positive drive I can’t express.

Can you tell us a bit about your family business and your role in it?

In my current role, my largest time commitment is being the Head of the Wellness Categories at Fine Hygienic Holding where I am tasked with diversifying our product portfolio beyond the core hygienic products and into wellness. At the Group level, I would say I am the right hand of the Chairman (my father), and am being groomed to succeed him. I sit on the boards of the other businesses and subsidiaries, and work with the different business units on special projects,setting strategy, and deployment. I also work to bring new businesses into the Group and lead the family investment office.

Can you share the most interesting story that happened to you since you began this career?

At Fine Hygienic Holding we decided to diversify the business and explore new product categories. During this process, our CEO came across a video of a centenarian who attributed his long life to a ‘magic tea’ passed down through generations, which he had been drinking for 80 years. Intrigued by the video, the CEO sent me a note with a link to the video and a simple message: “Find him.”

After a long journey to find the man, a fair amount of tinkering with the recipe, a clinical study, (and a few years of blood, sweat and tears), we have launched eon, an all-natural, herball, longevity supplement beverage. To learn more about the story, click here.

It was by design that I single-handedly took this project from idea, to development, to market in order for me to go through the full process of the necessary steps in building a business from the ground-up. This is also an entirely new business model and market for FHH — it’s our first Direct-2-Consumer subscription-based online business and the first time we fully develop and launch a product out of the US.

What do you think makes your company stand out? Can you share a story?

Our founder and Group’s journey is one of perseverance and resilience. The Group has faced endless challenges, but always comes out on top. We have had factories shot down by missiles; the largest fire in an industrial operation in Jordan; a full management team of a market held hostage at gun-point; an 80% loss of our total market overnight from sudden border closures; unprecedented currency devaluations; and more. Despite all of these obstacles, our governance, leadership, and human resource (guided by the highest standards of ethics) has, fortunately, always prevailed.

In times of difficulty, we believe in investing rather than holding back and preserving. For example, during the height of the Covid-19 pandemic, we launched a new brand and introduced the only mask in the world with 99.999% kill-rate against Covid-19 in eight days! Our innovative solution not only protected heads of state and ministers, but also those most at risk, the front lines, by reaching every corner of the world.

We believe success is a decision. When you make that decision, put in the work, and are always guided by deeply-rooted principles, it can be achieved.

Beyond that, we strongly believe one cannot be successful without giving back to the community. We also believe in building grass-roots projects for sustainable socio-economic development. An example of that is FHH’s project of Kheir Al Koura. In the first, true PPP project in Jordan, we identified a village whose inhabitants’ socio-economic capacities were classified as below poverty line, We intervened to set up more than 13 projects, such as: establishing a legal clinic; a chemical-free commercial farming operation; a packaging operation; a food processing operation; a robotics lab; a culture and folkloric organization; and more. All of this impacted 5,000 families, and an estimated 30,000 beneficiaries. After eight years, the full project became sustainable and self-sufficient, and ownership was handed over to the female-led community’s organization.

Are you working on any exciting new projects now? How do you think that will help people?

What I can share is the wellness project at FHH as a whole, and more specifically eon, are the most exciting projects. This is because they have the power to not only positively impact families and save lives, but also because of the ability to revolutionize the health of the world at affordable costs.

eon is a story for the ages (mentioned in Q3 and highlighted below). The fact is the marquee product, eon Longevity +Plus, is backed by one of the largest clinical studies conducted in the supplement space, proved to provide 9+ essential health benefits. Some doctors are wondering if this could be the world’s healthiest beverage.

The Story of Eon:

None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?

I consider myself extremely fortunate and privileged to have a father who allows me the freedom to be myself. He treats me as an equal partner, rather than just his son, and consults me on the biggest decisions. The reason I point this out is because the above is actually seldom the case with family businesses in the MENA region. Notwithstanding his supportive nature, he also holds me to the highest standards and expectations. When I was in high school, my father advised me to choose a degree/program that I was passionate about and enjoyed. When I told him I wanted to pursue a degree in Industrial Engineering, he challenged me to explain why I chose that field over others. My response revealed that I had not done my homework, so he urged me to do more research to gain a better understanding of my chosen field — and the outcome was the same.

I must also share the invaluable role my mother and wife play in my life. They not only are my source of wisdom, which I believe is especially essential in the context of family businesses, but they also offer their unwavering support.

I have to call my mother out for raising me the way she did, as much of the man I am today is because of her. And my wife, for keeping up with me, whether it was taking time out of our honeymoon to visit a manufacturing facility for eon, waking her up to 3am calls, or coming back hot headed after a long day at the office.

How have you used your success to bring goodness to the world?

Our commitment to the community and the highest ESG standards is unwavering, and supports my core values.

The late founder of Nuqul Group, my grandfather, had a humble beginning as a Palestinian refugee. Growing up with nine siblings in a cramped single-room space, he was the brightest of the lot and earned a full scholarship to study in the UK. However, he was denied the opportunity due to the British Mandate’s ban on Palestinian students studying in the West. Fortunately, the President of the American University of Beirut learned of his predicament and offered him a scholarship to study engineering. Unfortunately, he had to abandon his studies only 10 days later, having run out of money to buy the bare essentials of water, food, and clothing.

During that period, his family of 70 was displaced from Palestine to refugee camps in Jordan. He made the arduous journey to Lebanon and Syria, sneaking across the closed borders, to reunite with them.

It was during this challenging period that my grandfather made a vow to himself. He promised that, should he ever become successful, he would do his utmost to educate as many students as possible, ensuring that they would not face the same obstacles he had encountered.

After achieving success, he began sponsoring education for friends, employees, and those in need. In 2008, at my mother’s suggestion, my father established and institutionalized the efforts further, cementing my grandfather’s promise with the Elia Nuqul Foundation. The foundation is funded by 1% of the Group’s net profit and donations from corporations and individuals. The foundation has four pillars: the Scholarship Fund, Enhancement Programs, Fellowship Network, and Community Service and Social Entrepreneurship Programs. The foundation has graduated 700 students to date, 71% of whom found jobs before graduating. Currently, the Foundation supports 70 students in universities, with women comprising 70% of the student population. I am currently co-leading the Foundation with my father. The most critical focus isn’t providing monetary support — it’s the three pillars focused on equipping the deserving scholars with the necessary soft and intangible skills to not only make them more employable, but more effective employees. In fact, one of our students is currently working on projects with NASA, and another is completing her PhD at Yale University.

Additionally, we have spearheaded the first, and most successful, Public-Private Partnership (PPP) in Jordan, aiming to create sustainable socio-economic development in a poverty-stricken town in the North. Our approach involves initiating projects and establishing businesses and cultural centers to become self-sufficient, ultimately transferring ownership to a non-governmental organization (NGO) created for the town. The projects have included an olive oil operation, chemical-free farming (industrial scale), packaging operation, industrial kitchen, robotics lab, sales arm, legal clinic, cultural and folklore organization, and a library, many of which were managed and operated by women. Over 7,000 families have benefited from this program, and, three years ago, ownership was successfully transferred to the town’s NGO.

How do you define a family business? How is a family business different from a regular business?

I would define a family business as a company owned and established by a family, which may also include multiple generations of family members working together to manage the business, or a single member spearheading it. These businesses often foster a strong sense of loyalty and commitment to the company’s success, for obvious reasons.

One of the main differences between a family business and a regular business is the level of emotional investment family members typically have in the company. Because the business is often passed down from one generation to the next, there is a sense of pride and responsibility associated with it. Family members are often more willing to put in long hours and make sacrifices to ensure the business thrives.

I am proud to be part of a family business and believe our shared history and values give us a unique advantage in the marketplace. While we certainly face challenges, I am confident in our ability to navigate them and continue to grow and succeed for generations to come.

In your opinion or experience, what are the unique advantages that family-owned businesses have?

Family businesses are a double-edged sword, being both a significant blessing and a considerable responsibility. The blessing of a family business lies in the readily-available platform that successive generations can inherit and build upon. Conversely, it also bears the burden of controlling the family’s wealth.In my humble opinion, family businesses are typically more stable and demonstrate a greater degree of commitment and loyalty. They can also be more adaptable and versatile, providing the flexibility to pivot quickly in response to market changes.

What are the unique drawbacks or blind spots that family owned businesses have?

Running a family business comes with its own set of challenges. Family dynamics can sometimes make it difficult to make objective business decisions, and conflicts can arise when family members disagree on the direction, management, or strategy of the company.

In family businesses, you may face many opinions, and each shareholder is rightly entitled to theirs. Some are able to separate emotions from sound decision-making, whereas others might feel too attached and emotional about a business, which could hinder proper business decision-making.

Furthermore, as the family grows, the opinions and perspectives change, which becomes more of a challenge. We all know how family relationships with in-laws develop. When there’s a business and the incomes of the families depend on the business performance, that dynamic is very different.

I see the biggest issues arise when the businesses aren’t performing well in a family business. Whether there are internal or external factors,family members not-involved in the day-to-day management tend to blame the patriarch/matriarch, often due to their lack of knowledge in businesses, management, and operations governance. Conflicts can surface, and wrongful judgments can be made, which leads to strained relationships. Yet, when the businesses are performing well and yielding dividends, no one speaks up because everyone is happy. It’s a paradox of sorts.

There are ways to minimize and reduce these issues. We have found the most success through established family protocols, separation of management from ownership, and establishment of a conflict resolution mechanism.

What are some of the common mistakes you have seen family businesses make? What would you recommend avoiding those errors?

I think family businesses often struggle due to poor succession planning and poor governance, including the lack of meritocracy based job appointments. If incompetent family members take on leading roles, it can lead to the demolition of a business not only because of their lack of knowledge, but also because well-performing employees who do not see growth opportunities, but rather career ceilings within that business. This can lead to those employees to look for jobs elsewhere, where they have the ability to progress further in their careers. Furthermore, it also sends a very negative sentiment across the whole organization.

Conflict resolution is another area where family businesses can end up failing if not taken seriously. All families have issues, but with family businesses these issues are magnified since there is money involved. This makes the need for proper conflict resolution mechanisms that much more critical.

What advice would you give to other CEOs or founders of family businesses to help their employees to thrive?

Encourage your employees to test and fail so they learn from the failure and don’t repeat the mistake. Ensure all decisions regarding hiring and roles are given only on merit-based criteria. Ensure you have diverse teams built of people who challenge you and bring their own experiences and expertise to the table. Ensure there are proper career-development plans,and clear succession plans. Ensure you hire and promote based on merit instead of nepotism. . Ensure you incentivize and reward handsomely (within means and reason of course). Finally, and most importantly, separate management from ownership, and ensure there is a family protocol to govern the family and the business, separately and collectively.

How do you define “Leadership”? Can you explain what you mean with a story or example?

Leadership is what happens when you are not there. Leadership is stepping in when it matters and getting your hands dirty when needed. Leadership is choosing the harder right, over the easier wrong. Leadership is holding high standards and making bold decisions. Leadership is acknowledging that sacrifices need to be made, and, more times than not, work has to come first.

My wife is pregnant and had been eagerly waiting for a “babymoon” — but I had been extremely busy with work and had not been able to make time for a vacation since our honeymoon 1.5 years ago. As her pregnancy progressed, the timeframe we had to make the babymoon happen reduced to a point where it was now or never. In my efforts to be a model husband, we booked the trip, which was due to happen during one of the most critical work periods of my life. Two big projects I was leading were due a couple of days upon our return: the launch of my biggest ever project, eon, and the celebratory event of our Group’s 70th anniversary (of the founding of the group).

Acknowledging the importance of these two milestones, I had to ensure everything was set in motion prior to my departure, so I could manage follow-ups remotely. I had 48 hours to do so. During the trip, I was able to successfully launch eon, dispatching 3,000 samples to 8 different countries from 3,000 miles away that I had hand-packed individually. Beyond the campaign kick-offs and launch of eon, we also had a successful 70th anniversary event.

What are the “5 Things You Need To Run A Highly Successful Family Business”? Please share a story or example for each.

1. Separation of management from ownership — My father separated ownership from management around 20 years ago, whereby each entity within the group has its own management team, CEO/GM, Board of Directors, including independent members, non-family members, and industry experts.
2. Family constitution/protocol (with subsequent adaptations) — This document governs the relationship between the family and the business and aims to minimize and solve any potential future conflicts today. In our protocol, we have certain restrictions and very clear guidelines for involvement of family members in the business. For example: any family member looking to join the business needs to have completed a couple of years of work experience elsewhere; they apply as every other applicant (no family members allowed to be part of hiring process/interviews), and if hired, cannot report to another family member. The only preference a family member gets is if they are equally competitive and a finalist for a position, they would get the job. When I joined the family business in 2016, I had completed two years of work experience outside the group, at Monitor Deloitte Middle East, and was promoted during that two year span. I applied, went through the full process, was not interviewed by any family member, and got a job offer, which I accepted.
3. Conflict Resolution Mechanisms — There will always be opposing views, and there is no family with no issues/conflicts. It is therefore essential that the family agrees ahead of time on the mechanism through which any conflict is resolved. Within the second generation of our family business (father and siblings) there was a conflict. Within our family protocol, we have a clear, conflict resolution clause, which was activated. Upon resolution everyone was content, accepting, satisfied, and aligned on the outcome, and there was no hindrance in any relationships.
4. Effective family office (with diversified business) — In order for a family to be able to have a holistic, helicopter view of all the businesses, a family office is essential. One must manage investments, follow up on Board of Director matters, on key strategic projects, on unifying reporting making it easier for the shareholders to review, unifying strategy deployment, consolidating accounts, managing shareholder matters, completing admin related work on investments, and in some cases, managing different family requests.Our family office effectively does all of this.
5. Succession Planning — whether the plan is for the business to remain within the control and/or management of the family or not, it’s essential for all family businesses to have a succession plan. When my late grandfather was diagnosed with Alzheimer’s, my father ( who was the Vice Chairman and next-in-line), took over the responsibility of managing the whole group.

Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch with, and why?

Kobe Bryant. I have long admired his mamba mentality and live by it. He has inspired me and I can attribute a lot of my mindset and approach to everything in life to him.

If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be?

Access to education.

As Malcom X said, “Education is the passport to the future, for tomorrow belongs to those who prepare for it today.”

I also feel a lot of focus is lacking within the educational systems/curriculums on the soft and intangible skills side; not only are subject matters of sciences, arts, languages, important, but so are the soft/intangible skills and life skills.

How can our readers further follow your work online?

LinkedIn for my personal profile.

www.eon-longevity.com to stay up to date with our latest product launch.

Thank you so much for joining us. This was very inspirational.

About The Interviewer: Jason Hartman is the Founder and CEO of Empowered Investor. Jason has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. Empowered Investor helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Through Jason’s podcasts, educational events, referrals, mentoring and software to track your investments, investors can easily locate, finance and purchase properties in these exceptional markets with confidence and peace of mind.

Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate. While brokering properties for clients, he was investing in his own portfolio along the way. Through creativity, persistence and hard work, he earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased a California real estate brokerage firm that was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s sought after educational events, speaking engagements, and his popular “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 189 countries worldwide.

While running his successful real estate and media businesses, Jason also believes that giving back to the community plays an important role in building strong personal relationships. He established The Jason Hartman Foundation in 2005 to provide financial literacy education to young adults providing the all-important real world skills not taught in school which are the key to the financial stability and success of future generations. We’re in a global monetary crisis caused by decades of misguided policies and the cycle of financial dependence has to be broken, literacy and self-reliance are a good start. Visit JasonHartman.com for free materials and resources.