< PreviousIND USTRY | 40 Vol. 23/12, December 2022 solidified it as the Arab world’s second-largest economy. On top of this, the UAE’s renowned emirate, Dubai, has increasingly ourished to comple- ment the country’s growth. Moving up one spot from its ranking, Dubai ranked nd in the Global Cities Index ; signi cant growth in business activity, human capital, and political engagement have also helped the metropolitan city main- tain its grip for the top spot in the MENA rankings while it has attracted investors from all over the world. Moreover, Dubai is now seen as the most cosmopolitan city in the world with 9 percent of its residents being foreigners. The introduction of the UAE Golden Visa in 9 bolstered the country’s appeal further. Since the programme’s inception, over 65, recipients, across sectors such as science, entrepreneurship, and healthcare have been awarded this How Golden Visas are driving foreign investment to Dubai The programme will subsequently accelerate Dubai’s breakthrough to become one of the top 20 wealthiest cities in the world by 2030 Popular destination Dubai ranked 22nd in the Global Cities Index 2022 ECONOMY | Driving investment Henseler says the UAE’s visa reforms have been a timely introduction BY JEFFREY HENSELER , FOUNDER AND MANAGING PARTNER OF PASSPORT LEGACY, UAE HQ Over the past 5 years, the UAE has demonstrated consistent improvement to elevate its global stature. This progress has been spearheaded by the country’s forward-thinking nature and deter- mined long-term vision. Adaptable policy frameworks, frequently updated regulations, a exible business environment, and diversification away from oil have arabianbusiness.com 41 $100BN The projected value of the global residence by investment (RBI) market by 2025 | ECONOMY residency-by-investment (RBI) visa to reinforce the country’s strength on an international scale and simulta- neously see an in ux of investment that has bene ted its economy. Why has interest in the UAE’s Golden Visa surged? As a 10-year residency programme, the Golden Visa is providing greater stability for those who successfully acquire it. In addition to expatriates being able to work, live, and study in the UAE without needing a sponsor, the country’s RBI initiative also provides the ability to stay outside of the UAE for more than the usual restriction of six months to keep one’s residence visa valid, and enables 100 percent ownership of their businesses on the country’s mainland, among other bene ts. During a time in which the world is experiencing great turbulence, these advantages have sparked strong interest among foreign investors. Increased in ation rates, a looming recession, and the UAE’s strategic location, which makes it favourable for conducting global business, have also been key contributing factors. As a result, Dubai is expected to attract a signi cant share of the global resi- dence by investment (RBI) market, which is expected to grow ve times to $100bn by 2025. As tighter regulations continue being placed on companies and people around the world, the UAE’s visa reforms have been a timely introduc- tion. The country’s known tax-free incentives will also continue attract- ing significant investment as busi- nesses can easily shift to the Middle East to bypass inconvenient restric- tions. This is being seen rst-hand as Dubai currently ranks as the leading foreign direct investment (FDI) hub; it attracted 492 FDI projects during the rst six months of 2022 re ecting an 80.2 percent increase from the same period last year. Why will foreign investment in the UAE hold steady? Leading real estate developers have from French, Canadian, Pakistani, and Egyptian investors. Moreover, Dubai ranks as the 23rd most popular city in the world for ultra-wealthy residents with approx- imately 65,000 millionaires situated in the emirate. As more HNWIs make the UAE their home, the UAE’s Golden Visa programme will be increasingly sought out, and this will subsequently accelerate Dubai’s breakthrough to become one of the top 20 wealthiest cities in the world by 2030. Portugal implemented a similar Golden Visa a decade ago, and its proven success can be viewed as a benchmark for other countries look- ing to capitalise on providing such incentives. During these ten years, over AED23bn has been invested into Portugal’s economy and 29,253 people have obtained their Golden Visa; the UAE has seen its Golden Visa awarded to more than double this number of recipients in a signi cantly smaller window of time, and there is still tremendous room for growth. Residency programme Dubai is expected to attract a signi cant share of the global residence by investment (RBI) market Dubai ranks as the 23rd most popular city in the world for ultra- wealthy residents with approximately 65,000 millionaires situated in the emirate now begun o ering Golden Visas to those who are willing to invest a minimum of AED2m in Dubai’s prop- erty sector and this is seeing notable interest from Indian, British, Italian, and Russian nationals, respectively. Signi cant investment has also come IND USTRY | 42 Vol. 23/12, December 2022 Property prices in Dubai continue to increase at an unprecedented rate since the beginning of . According to the Dubai Land Department, Q marked the highest quarterly volume of sales transactions over the past years, achieving a total of ,5 transactions worth AED59. 5 bn. We have witnessed an upward trajectory since the end of , with a steadier and more notable rise in prices this year. But what is it that makes investors want a piece of the pie in Dubai? Are they just looking for a high ROI? While Dubai real estate red hot but prices will continue to rise in the bull market The ‘Dubai effect’ responsible for attracting local and foreign investors extends beyond ROI Economic contributor Dubai has established itself as one of the fastest growing real estate markets globally REAL ESTAT E | BY GAURAV AIDASANI, FOUNDER AND MANAGING DIRECTOR OF UNION SQUARE HOUSE REAL ESTATE BROKER (USHRE)arabianbusiness.com 43 $16.1BN The value of 22,504 real estate transactions in Dubai in the second quarter of 2022, according to the Land Department | REAL ESTATE ROI tops the priority list of any inves- tor, Dubai’s overall success and status on the global stage has been one of the main reasons driving investors to choose the Emirate as a home and an investment destination. The ‘Dubai effect’ goes beyond ROI. It is the impact of the vision of the leadership, the enabling e orts of the government, the neutrality and inclusion of the policies, the safety of the nation, the luxury of the lifestyle, the friendliness of the people, as well as the opportunity and growth poten- tial this land has to o er. The conver- gence of all that in ‘one solution’ is what makes the ‘Dubai o ering’ stand out globally. Against all odds, Dubai has achieved a systemic and speedy recovery from the pandemic, emerg- ing stronger and opening travel and investment corridors early on. Host- ing the World Expo, embracing virtual properties, launching initiatives to boost foreign investment and continu- ing to develop infrastructure, lifestyle and luxury o erings, are all factors jointly contributing to Dubai’s leading position as a global investment hub. It is Dubai’s overall appeal to inves- tors and tourists that is helping the city rapidly overcome global economic and political turmoil and underpinning the property market’s rebound. As a result, the real estate sector has seen great gains since the begin- ning of this year. Villa prices have doubled in the most established Dubai localities such as Emirates Living, Dubai Hills Estate and Arabian Ranches. Villas in Dubai are expected to continue to dominate the market in 2023. Key areas such as Palm Jumeirah will maintain their upward trajectory and further appreciate in value, draw- ing investors and homeowners look- ing for high ROI and upscale living. Apartment prices have also seen about 25 percent increase since the start of the year. Prices of waterfront units such as Beach Vista at Emaar Beachfront have doubled since their launch. Five-star hotel units have seen 30 to 40 percent increase in prices. With the current home price The ultimate beneficiary is the investor. We’ve seen property rentals going up more than 25 percent in some areas across the emirate. Looking at the period between 2002 and 2008, early investors back then saw their property value increase by up to 300 percent. That was the time Dubai estab- lished itself as one of the fastest grow- ing real estate markets globally. It is during that period that we started witnessing the rise of mega projects, an increasing investor appetite and a more upscale property proposition. Investor interest is also increas- ing in Dubai’s o -plan properties. The good news is prices are still reasonable and payment plans are still feasible for most investors despite the surge in demand. These are all signs of healthy growth, which is fundamental to lessening the impact of long-term price uctua- tions due to the cyclical nature of the real estate sector. Despite today’s bull market, the city’s overall housing sector hasn’t reached its 2014 peak level yet, espe- cially in the category of residential apartments. Therefore, we are most likely to see further growth and a surge in prices. On the up Dubai’s real estate sector has seen remarkable gains since the beginning of this year Specialist Investor interest is increasing in Dubai’s off-plan properties, says Aidasani trends expected to continue through 2023, the price hike is likely to exceed pre-pandemic price levels. According to data released by Reuters in Septem- ber this year, investors can expect an average growth of 3 percent in prop- erty prices during 2023.IND USTRY | 44 Vol. 23/12, December 2022 experiencing life in the UAE. However, with the recent changes, we can expect an in ux of skilled work- ers to join our communities – from young jobseekers utilising Job Explora- tion Entry Visas and Temporary Work Mission Permits, that allow stays of up to 9 days, to entrepreneurs and inves- tors with a Business Entry Visa who may take up residency for up to six months. Furthermore, the new Green Residence Policies that o er ve-year residency will eliminate the need for a sponsor, and therefore attract those operating as freelancers, digital nomads, and even young families. A market ripe for high returns for homeowners The UAE’s new visa policies are set to create staggering demand for holiday homes and short-term rentals, with an in ux of visitors staying in the country on a short and mid-term basis. Many of these individuals and families will struggle to nd the right accommoda- tion, but this is a challenge that property owners can easily solve, while leverag- ing this opportunity for themselves. On one end of the spectrum, job seekers travel to the UAE for short periods of time to look for work and attend interviews – primarily on the job seekers visa. Rather than booking pricey hotel rooms, this market will require flexible short-term rentals while they search for work opportuni- UAE Golden Visa reforms will drive Dubai real estate sector and holiday home growth As the UAE continues to make it easier to live and work in the country through the Golden Visa programme, the real estate sector is set to bene t Expat magnet The UAE’s new visa policies are set to create demand for holiday homes and short-term rentals REAL ESTAT E | View The UAE’s new visa policies will attract digital nomads and young families, Khatib says BY REEM AL KHATIB , ENTREPRENEUR We have recently witnessed a range of new visa options being announced, which are set to boost the number of people look- ing to call the UAE home. While the country has long established itself as a popular tourist destination and an international travel hub, residence visa policies were previously limited to those that were already employed, investors or business owners. This created barriers for investors looking for opportunities in the coun- try as well as digital nomads, freelanc- ers and families who were keen on arabianbusiness.com 45 27.3% The rise in residential rents in Dubai in October 2022 compared to a year earlier, according to consultants CBRE | REAL ESTATE ties, attend interviews or network at industry events. This can also be said for temporary work employees. What’s important to note is that both groups will prefer this type of accommodation due to the fact that they o er homestyle amenities to better manage budgets, as eating out daily and using laundry facilities at hotels can often be costly. This can also be said for temporary work employees. What’s important to note is that both groups will prefer this type of accom- modation due to the fact that they o er homestyle amenities to better manage budgets, as eating out daily and using laundry facilities at hotels can often be costly. Freelancers, digital nomads and entrepreneurs tend to have the same preferences as short-term job seek- ers, but require more exibility. Digi- tal nomads – otherwise known as globetrotters – often seek a home away from home, which is precisely why they prefer short-term rentals. Unlike hotels, holiday homes provide a home-like environment and allow guests to truly immerse themselves into the local culture. Lastly, families will be looking for temporary accommodation solutions that will allow them to get a better understanding of the areas best suited to them, before putting down roots. For many, this could take up to six months, which can be a long time to take up resi- dence in a hotel, particularly when trying to accommodate multiple family members and nding the right facilities for children. Holiday homes can be the most cost-e ective option while o er- ing the space and convenience required by families, in addition to the authentic day-to-day life of residents. Capitalising on this opportunity as a property or holiday homeowner Utilising properties as short-term rent- als, especially those that are currently vacant investment properties, has the potential to o er positive returns for investors, if managed properly. With the in ux of new visitors and visa holders, now is the time for homeowners to capitalise on their investments. But the apartment in downtown with high- speed wi connectivity and easy access to shops and restaurants, could be the perfect option for digital nomads. Outsource the rental process The new visa policies introduced in the UAE will not only create consistent and rising demand but may also raise the guest turnover ratio. This can make it difficult to efficiently manage the day-to-day activities that come with operating a holiday home. Moreover, it can be overwhelming to keep up with when, where and how to list your prop- erties, as competition is highly likely to increase with the rising demand. Having worked with numerous homeowners across Dubai since 2016, the team at GuestReady has had the opportunity to understand the pain points faced by those looking at rent- ing out their properties and created the solutions to alleviate them. From mastering the formula of how to gain visibility among tenants to managing a carefully curated and seamless guest experience, GuestReady helped thou- sands of property owners optimise their villas and apartments at a mini- mal investment. It’s important for homeowners to know that they can enjoy the extra income without having to be involved in the time-consuming management process, while also creating greater supply of great housing experiences for those who are new to the country. Ultimately, this is a win-win solution for all. Safety and security Dubai is emerging as a safe haven destination due to increasing global economic uncertainty question remains: what can property owners do to ensure they fully reap the bene ts of this opportunity? Reassess current and potential rental opportunities Evaluating your property to under- stand how to take advantage of the upcoming demand is essential to get ahead of the market and maximise returns for your portfolio. You might be surprised at what you nd – opti- mising your real estate investment to better suit the new generation of UAE residents, with simple changes such as uplifting interiors or o ering guidance on local experiences, could bolster your returns even further. Position properties in the right light Positioning properties correctly is crucial in securing future demand. This is determined by a number of factors, the most important being location, neighbourhood, type of property and the demographic you are targeting. For example, if a three-bedroom villa is listed as a family-friendly home, and quality service is provided, encouraging good ratings and reviews, it will natu- rally become a top choice for families visiting the UAE. Similarly, a studio REAL ESTAT E | 46 Vol. 23/12, December 2022 Proposed and designed by Italian design studio Lazzarini, Pangeos “takes its name from Pangea, the supercontinent that existed millions of years ago during the late Paleozoic and early Mesozoic eras.” Lazzarini added: “Translating this into a somewhat futuristic expres- sion, Pangeos extends its length for 55 metres ( ,8 ft) and measures metres ( , ft) at its widest point — the wings. If realised, the turtle-shaped vessel will become the world’s largest structure ever built.” The oating yacht will see 9 villas and apartments on each ‘wing’ of the turtle-shaped tearayacht. While the interiors of Pangeos are yet to be revealed, Lazzarini expects $8bn to be the total investment in construction, with a timeline of eight years. Pangeos will also be comprised of nine different bows, which are further divided into several blocks. Saudi Arabia’s $5bn turtle-shaped oating city The superyacht, titled Pangeos, will be capable of hosting up to 60,000 guests and will also feature malls and beach clubs Massive The Pangeos is an itinerant floating city, comprising various hotels, shopping centres, parks, ship and aircraft ports 60,000 The number of accommodations Pangeos is capable of hosting BY ARABIAN BUSINESS STAFF Saudi Arabia will soon be home to a $5bn terayacht titled Pangeos. The new project, is shaped like a turtle and will accom- modate up to , people. On completion, Pangeos will become the largest oating structure ever built.arabianbusiness.com 47 | REAL ESTATE The bows begin from the entrance of the port area to the main square, that extends into a wide terraced villa and subsequently leads to private houses, buildings, and rooftop terraces, with an upper ‘shell’ zone that offers the landing of various ying vehicles. In the lower space, the design team houses 30,000 cells or cluster compartments and provides an unsinkable oating solution for the basement, which is conceived to be realised mainly in steel. Pangeos will feature a rooftop garden, mall and a beach club and a ‘Terashipyard’ infrastructure that is 650 metres wide and 600 metres long, providing direct access to the sea. While it is proposed for Saudi Arabia, Pangeos is designed to sail around the world non-stop, as it will be equipped with virtually endless green energy supplies. Powered by nine HTS engines of 16,800 Horsepower each, Pangeos is expected to cruise at a maximum speed of 5 knots (5.7 mph/9.2 kph), drawing its power from ocean waves and the solar panel-covered roof. In addition, “the virtual spaces of the watercraft can also be purchased under an NFT collection,” Lazzarini said, and added that users will be to collect certain content and access in the virtual properties with their credentials. “The same credentials will also work as a property deposit in case of a real construction,” the design studio said. If realised, the turtle-shaped vessel will become the world’s largest structure ever built City of the future Pangeos is expected to cruise at a maximum speed of 5 knots 550 The length in metres of the Pangeos terayacht project Superstructure The yacht will have 19 villas and 64 apartments on each wingIND USTRY | 48 Vol. 23/12, December 2022 employee in question is an outstanding performer. (Imagine saying, “Salem, I know you’re our top salesperson. But that FBA business you’re running from your guest bedroom means we need to let you go.”) A “no side hustle” clause is also problematic to enforce since the employee in question – or the entre- preneurial-minded job candidate you might not decide to hire – is also more likely to be an outstanding performer. A study published in Academy of Management found that employees performed better at their full-time jobs when they spent the previous evening working on their side hustles. Nor do they bring their side hustles to work; the study found employees with a side hustle were no more likely to think about, be distracted by, or even spend time on their side hustle while at work than non-side hustlers are to conduct a little online shopping, check out the football scores, or see what they’re missing on TikTok. (In fact, there’s evidence that people with side hustles Why side hustles can make your employees perform better, not worse A study published in Academy of Management found that employees performed better at their full-time jobs when they spent the previous evening working on their side hustles Extra income A 2021 study found that employees performed better at their full-time jobs when they spent the previous evening working on their side hustles LEADERSHIP | BY JEFF HADEN , KEYNOTE SPEAKER, CONTRIBUTING EDITOR, LINKEDIN INFLUENCER AND AUTHOR Side hustles. Many people love them, most employers don’t. When I asked business owners how they feel about job candi- dates who have either started or claim interest in starting a business in their off hours, said they would think twice. The other six said they simply wouldn’t o er the candidate the job. Three of my CEO friends have gone a step further, adding language to their company’s employment contracts banning side hustles. Sound logical? Hardly. For one thing, a “no side hustle” clause is prob- lematic to enforce, especially if the arabianbusiness.com 49 50% The estimated percentage of millennials who are engaged in ‘side hustle’, according to development platform Career Masterclass | LEADERSHIP are more focused at work due to the feeling of psychological empower- ment that results.) Data is great, but so is common sense. Apart from technical compe- tence, think of the attributes you want your employees to possess. Initiative. Creativity. Problem-solving. Adapt- ability. Able to work with minimal supervision, while juggling multiple tasks and responsibilities. Eager to learn and grow. Clearly your nine-to- ve employ- ees may possess those qualities – but people with side hustles do as well, almost by de nition. “But why would I hire a candidate,” a CEO friend says, “who seemingly wants to someday quit and run their own business, and maybe even compete with us?” That question also sounds logical. Or not. One study found that nine out of ten professionals in the MENA region are considering changing jobs this year. Granted, “considering” doesn’t mean “will.” Yet the same study also determined the average job tenure is 2.7 years, with an average employee turnover rate of over 20 percent per year. Job-hopping has not only become normalised but is arguably more prevalent among top performers, since the best workers tend to have more options. That’s why smart employers lean into the changing nature of employment. Regardless of why – to be promoted, to land another job, or to turn a side hustle into a successful business – they know the best employees are eager to learn, grow, and develop. As Eric Ripert, co-owner and executive chef of NYC’s Le Bernardin, a three Michelin star restaurant, told me, “Yes, we train people that poten- tially will be competitors or work for competitors, but other restaurants do the same. They train employees who eventually come here. Ultimately, those young chefs one day will become better than us. It’s a logical progres- sion from generation to generation. We bring the brick, they step on it, they go higher. hope to eventually leave to launch their own restaurants. But he also knows they’re likely to stay longer at Le Bernardin if he gives them oppor- tunities to grow and develop, and not just within the scope of his restaurant. Just as smart bosses are willing to develop employees for the jobs they someday hope to land – even if that job may turn out to be with another company – smart bosses are willing to develop employees for the business they someday hope to run. The skills they gain from the developmental opportunities you provide – and from their side pursuits – will make them better employees now. They’ll be more engaged. More energetic. More focused. More productive. And oddly enough, more loyal. Your employees only care about what you want them to do when know how much you care about them. A great way to show you care? Prove you care about their futures – not just as workers, but as people. Do that, and the employee or job candidate with a side hustle is likely to be even more engaged and productive, because we all perform better when our work has meaning. To others… but just as impor- tantly, to ourselves. Qualities The best employees are eager to learn, grow, and develop Motivator Job-hopping is arguably more prevalent among top performers, Haden says “My generation learned from the talent and the generosity of our mentors,” Ripert said. “There will be many generations to follow that will do the same thing, and that makes us happy. It’s nothing to be worried about. It’s a natural part of life.” Ripert knows some of his employ- ees have side gigs. He knows some Next >