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UAE Freezones Biz News Updates
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Market sentiment across the UAE rising
The real gross domestic product is expected to reach 3.7 per cent this year
as the non-oil economy is showing increasing signs of promise in several
leading indicators.
Consumer and business sentiment across the UAE has improved significantly
due to a strong rebound in the real estate and equity markets, and this
positive momentum will continue until 2020 with a possible slight dip in
2018, according to top official of an investment firm.
Talal Thabet, chief executive at Profound Investments, said real gross
domestic product is expected to reach 3.7 per cent this year as the non-oil
economy is showing increasing signs of promise in several leading
indicators.
“Consumer and business sentiment will drive momentum straight through 2020
with a chance of slight dip in 2018. But nothing unmanageable. I believe the
UAE has been extremely competent in measuring, monitoring, putting in
measures to avert major dips as it already has since October 2008,” Thabet
told Khaleej Times in an interview.
Profound Investments Company, or Pico, is a Dubai-based firm that finds
investment solutions for the ultra-high net worth individuals and fund
managers. It can be considered a boutique company with a global reach across
five continents.
“We work with a diversified portfolio base, but for a select few clientele.
We currently advise on assets valued at over €3.4 billion. Our clients’
collective net financial liquid worth is over €500 billion outside their
non-liquid asset base. We manage assets. We create assets. We release
assets,” Thabet said.
Under Pico, he said there are three main lines of investment segments and
disciplines — food and beverage, agriculture and real estate.
“Our investments and technical ability also includes private equity, venture
capital, incubation, succession planning, acquisitions and mergers, and of
course for our very special clients we also act as their family office.”
“We have a select few clients that we work with and advise globally. We
advise on investments in Europe, the Far East and of course in the GCC. In
terms of the assets that we create, like Park Central, the UAE’s only
24-hour organic deli in Dubai, and Nonno, which is the world’s thinnest
pizza and others we design, and launch them to sell them. That’s what we
do.”
Dubai business environment
Thabet said Dubai has done a fantastic job in the last few years to maintain
its status as one of the most attractive places to visit for both business
and pleasure.
“Dubai is a fantastic city to live, work and play in. I mean the quality of
life is impeccable; I tend to travel a lot, and people around the world
always speak with envy about Dubai, and always that they would love to be
here.”
“In terms of the business environment in Dubai today, I believe it’s healthy
and positive for several sectors of the economy. Of course the recent
announcement of wining... Expo 2020 means a lot for businesses that are
already here and for those who want to get in on the action. Either way, I
would confidently say that all roads currently lead to Dubai.”
Thabet further said Dubai has developed a perfect environment for “creative
investments” as the emirate promotes the stable and transparent financial
environment and institutions.
“We are protected by clear and unambiguous laws and fiscal standards. We
secured the best designers money can buy and the best brand strategists in
the region,” he said.
Brands promotion
Thabet shared his strategy to expand business in Dubai and the UAE by
creating local brands in key segments including food and beverages
“We intend to create more and more brands that are world class, well
capitalised and easily operated. The brands that we create, like Nonno, was
designed in Dubai and yet after launching the first outlet, we already have
over 30 territory requests for franchising.”
“Germany, Austria, the UK, France, Saudi Arabia, Bahrain, Hong Kong,
Thailand, Pakistan, etc; each territory comes with a signing fee of Dh1
million from the master territory franchisee and yet we intend to sell the
concept, the IP, the mother company for approximately Dh9 million. The buyer
makes their money in year one and within three years goes IPO. It’s a simple
model.”
“We are not in it for the long haul. We are in it for the creative and
dynamic part of creation. We have a lot of fun doing it. Besides its time
that we create brands and export them to the world. Nonno is the first pizza
design for women. About 82 per cent of our callers are women. Each Nonno
lounge costs the franchisee less than Dh700,000. It’s a phenomenal concept.
We are very pleased with it and praise our marketing and business supports
teams on a fantastic job done.”
To a question about prospects for Nonno, he said: “We intend to sell it, as
I mentioned above. Like we intend to sell every brand we create and operate.
From Dubai to the world.”
About the plan to expand the company’s presence in other Gulf nations, he
said: “Our brands may expand out across the region”, but Profound
Investments does not have any intention to open other offices in the region,
for now.
He said Profound Investments has so far been operating three brands — Park
Central, Zad Food Stores and Nonno.
“We have many more brands in the pipeline and two of them [which are under
design] will be launched soon while seven more in the vault with conceptual
designs are completed.”
Hospitality outlook
Thabet said World Expo 2020 is an enormous boost to the economy especially
for tourism and trade. He said the number of hotels in Dubai will double
until 2020. Currently, over 82,000 hotel rooms and apartments are available.
Referring to tophotelprojects.com, he said more than 60 new upscale and
luxury hotel projects with more than 29,000 rooms are under construction.
Hotel investors will focus on four-star and three-star rated hotel projects.
“So yes, it’s very promising. But judging from our F&B consultancy division,
we are getting a lot of failed attempts asking us to assist and advise on
their concepts, and running operations. We find that if you don’t plan right
from day one, and take your time in pre-opening phases, you will be in
trouble. So study, plan, and make sure you are over capitalised. I think
this is why there are so few local brands and so much international imports,
which is a real shame.”
“We believe the Dubai economy will have a surge towards the end of September
through to the end of the year which makes this a prime time for
acquisitions. This window is a six-month period. Your acquisitions should be
revenue generating, like rented homes, or restaurants or small business with
a strong client base.”
“Being selective is extremely important. We always say don’t buy an average
company or home for a great price. Buy a great company or home for an
average price. That’s what will protect you in the long run.”
About the company’s performance, he said Profound Investments had a
fantastic 2013.
“We launched Nonno delivery, we agreed to develop two high-end resort like
residential projects in Europe. We had a record year in real estate sales,
we had a record year in terms of requests for creative investments on behalf
of investors.”
Today, he said Profound Investments is involved in major real estate
development projects in Europe with returns of over 55 per cent in less than
two years.
“I have huge expectations. Dubai is doing well and will continue to do so.
And the concept of creative investments is what we do well. We are in the
right place at the right time and our investors are getting the benefits. We
can’t ask for more. Al Hamdulillah,” Thabet concluded.
Sept 14, 2014 |
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Courtesy Khaleej Times
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