arabianbusiness.com 3 Contents February 2023 www.arabianbusiness.com SUBSCRIBE NOW +971 4444 3000 www.itp.com/subscriptionarabianbusiness#arabianbusinessarabianbusiness COVER STORY Setting the new normal Hisham Mansour, founder and MD of investment juggernaut CFI Financial, sits down with Arabian Business to discuss how his rm has sought to adapt to the changing retail investment landscape while growing as a global organisation REAL ESTATE Property prices Dubai real estate is still affordable relative to global markets and is supported by the UAE’s positive economic outlook, according to the CEO Fakhruddin Properties 12 FIRST WORD While the world appears to grapple with ongoing macroeconomic dif culties, the opportunities continue to arise in the region ” 06 Matthew Amlot Managing Editor matthew.amlot@itp.com pears g ulties, nue LEADERS 20 OUTLOOK Food security With UK companies leading the way, new agritech solutions are revolutionising the industry and tackling issues from food security to climate change, says Commissioner Simon PenneyFIRST WORD | Matthew Amlôt, Managing Editor 4 AB LEADERS February 2023 In this feature, Orlov helps break down his journey to the top, and the tough decisions needed to nd success in an industry more prone to failure than success. Ultimately, the self-made billionaire attributes much of his success to hiring the right people: “It’s people, people, people. Getting the right team. To hire them, to keep them and then sometimes yes to re them,” he told Arabian Business. The full story of Orlov’s growth is a fascinating tale in growth. Turn to page 20 for the full story. With the year o to such a positive start, we at Arabian Business have been hard pressed to keep up with all of the news coming out of the region. As such, this month we have included not one, but two supplements with the issue. One of these is the rst in a series of regular contri- butions to the Arabian Business ecosystem: Leaders. e Leaders edition of Arabian Business aims to pro le one top business executive that is paving the way for the future of industry in the Middle East, and share exclusive insights on their journey to the top. This month features Hisham Mansour, the founder and managing director of retail investment giant CFI Financial. CFI, which has selected Dubai as its global HQ, has had a meteoric rise in the retail investors space. As technology has dramatically altered the way in which investors can connect with markets, CFI has been able to o er more services to more customers than ever before. As the Middle East has arisen as a global hub for busi- ness, likewise CFI has also begun to cater to more in the region. A long-time industry insider, Mansour refers to this change: “It is amazing to see how the Middle East has devel- oped as a market with rapid economic growth and diversi- cation e orts, especially in recent years and particularly looking at countries like the UAE and Saudi Arabia.” Check out the full interview in our Leaders supplement. Finally, this month also marks the release of our Dubai 100 list. The list has been compiled by the editorial board of Arabian Business and represents a power ranking of 100 people in the city of Dubai. The list includes some expected, and unexpected names, and we have chosen to release it in full as a supplement to this issue. Feel free to check out all of the names, and take note of the faces that you need to watch when doing business in Dubai. With that I’ll let you get to reading. Until next time. Everything to play for MATTHEW AMLÔT @MatthewAmlot 70% The percentage business leaders from across the UAE and Saudi Arabia who have a more positive outlook for the year, according to a new survey by Gedeon Mohr & Partners Hello and welcome to the February issue of Arabian Business. The year has gotten o to an exciting start here in the Middle East. While the rest of the world appears to grapple with ongoing macroeconomic di culties, the opportunities continue to arise in the region. Our cover story this month features the enigmatic and successful Alexander Orlov. Co-founder of a restaurant empire, with over 100 outlets in UAE, Russia, Kazakhstan, the USA, Uzbekistan, Monaco and Hong Kong. From Geor- gian to Greek and Italian to Peruvian, you name it, chances are Orlov has done it somewhere, and done it well.AB LEADERS February 2023 5 SUBSCRIBE NOW www.itp.com/subscriptions +971 4 4443000 XPT VIEWS Learning from life How Sunny Varkey created a global education empire #23/12 • December 2022 UAE: AED 15 KSA: SAR 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 Inclusive of VAT X LV interviews THE AVIATOR James Hogan is back UAE: AED 15 KSA: SAR 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 Inclusive of VAT #23/11 • November 2022 D PTH NEWS Dynasty From luxury to real estate: Inside the world of Abbas Sajwani UAE: AED 15 KSA: SAR 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 Inclusive of VAT #24/01 • January 2023 PUBLISHED BY AND © 2023 ITP MEDIA GROUP FZ-LLC. 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PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Offices in KSA, UAE, UK, US, and INDIA I ME IA GROU CEO Ali Akawi MANAGING DIRECTOR Alex Reeve DEPUTY MANAGING DIRECTOR Anil Bhoyrul E I ORIA EDITOR-IN-CHIEF Rob Corder, rob.corder@itp.com MANAGING EDITOR Matthew Amlot, + 971 4 444 3264, matthew.amlot@itp.com SUB EDITOR Edward Liamzon, +971 4 444 3474, edward.liamzon@itp.com ARABIANBUSINESS.COM INDIA EDITOR James Mathew ESIGN SENIOR DESIGN MANAGER Geri Batara Sonny DESIGNER Mohammed Irqsosy S U IO VIDEOGRAPHER Muhammad Kaleem, Julius Garcia PHOTOGRAPHER Marwan Elsayed VIDEO EDITOR Liju Cheruvathur RO UC ION & IS RIBU ION PRODUCTION MANAGER Denny Kollannoor PRODUCTION COORDINATOR Mahendra Pawar SENIOR IMAGE EDITOR Emmalyn Robles E EN S & MARKE ING DIRECTOR OF AWARDS & MARKETING Daniel Fewtrell, +971 4 444 3684, daniel fewtrell@itp.com CIRCU A ION DISTRIBUTION COORDINATOR Avinash Pereira CIRCULATION EXECUTIVE Rajesh Pillai AER ISING GROUP COMMERCIAL DIRECTOR Saraswati Agarwal, +971 4 444 3352, saraswati.agarwal@itp.com SENIOR COMMERCIAL MANAGER Mansi Khatwani, +971 4 444 3242, mansi.khatwani@itp.com COMMERCIAL MANAGER Samir Glor, +971 4 444 3320, Samir.Glor@itp.com I GROU CEO Ali Akawi CFO Toby Jay Spencer-Davies CORPORATE WEBSITE itp.com CIRCULATION CUSTOMER SERVICE +971 4 444 3000 WEB arabianbusiness.com6 AB LEADERS February 2023 IND USTRY | No bubble in UAE real estate: Prices are going higher Dubai real estate is still affordable relative to global markets and supported by the UAE’s positive economic outlook Property magnet The UAE’s transport network, world-class facilities and unmatched safety standards are some of the bene ts that make it a prime real estate destination REAL ESTATE | BY YOUSUF FAKHRUDDIN , CEO, FAKHRUDDIN PROPERTIES Contrary to popular belief, the UAE’s economic activity in the real estate industry has been resilient, suggesting that growth prospects for the year remain positive. Prices are steadily rising, and the landscape of the real estate sector is expanding as new projects become available. Furthermore, the expansion in the number of investments and develop- ments indicates a healthy and growing interest in residential and commercial developments within Dubai’s property market. The value add of the robust infrastructure and healthcare, arabianbusiness.com 7 7.6% The UAE’s expected GDP growth this year, according to a report from the UAE Central Bank | REAL ESTATE combined with high living standards and a strong sense of security, have made Dubai an attractive destination for investors. In the past few years, its real estate market has more than doubled in size due to these factors. The emirate’s reliable infrastructure in terms of transport network, world- class facilities, and unmatched safety standards and protocol are just some of the bene ts that make it a prime real estate destination compared to other global locations. Moreover, Dubai is still relatively a ordable compared to other metro- politan cities worldwide, while o er- ing an equally high, if not higher, standard of living. The city is also home to a booming economy due in part to its location on the Arabian Gulf coastlines. This geographical advantage gives it exclusive access to some of the world’s largest trading ports, making it a prime spot for international business. The recent projection from the UAE Central Bank expecting a leap in gross domestic product growth to 7.6 percent this year due to the incredible performance of some non-oil indus- tries, including tourism and hospital- ity as well as property development and real estate. As Dubai progresses towards becoming a more sustainable global hub, the residential real estate industry is projected to ourish. The 2040 Vision of Sheikh Moham- med bin Rashid Al Maktoum and its underlying focus on green spaces and sustainable architecture has been reinforced by the Dubai 2040 Urban Master Plan – manifesting in greener living experiences that are expected to increase demand for property and boost residential property values. An in ux of capital has further bolstered these developments in Dubai’s property market from both domestic and international investors. The Dubai Land Department (DLD) revealed gures showing a whopping 10,000 sales transactions worth AED30.5bn for the month of Novem- ber 2022. The UAE’s real estate market is now considered one of the most attractive in the region, making it a prime destination for investment. Proof of the same lies in the fact that Dubai has retained itself as the leading hub for residence and citizenship by investment (RCBI) for the second year, and this can largely be attributed to the fact that over 150,000 Golden Visas have been issued so far. The UAE also leads the world with 35 international RCBI specialists in 2022, climbing up from 30 in the previous year, making it an ideal destination for a wide array of purposes. The real estate market in Dubai, especially, provides a unique combi- nation of value, cutting-edge infra- structural technologies and conve- nience that is appealing to all kinds of investors. We, at Fakhruddin Proper- ties for instance, have woven some advanced sustainable and secure technologies into our developments, and focused on giving the residents health-centric living spaces. Owing to all these factors, the UAE’s real estate market has been witnessing growth despite challenging global economic conditions and while this is a testament to its resilience, developers may bene t from being cautious and prepared ahead for any untoward movement in the market. Global city Dubai has retained itself as the leading hub for residence and citizenship by investment Developer Dubai’s real estate industry will continue to flourish, Fakhruddin believes The real estate market in Dubai provides a unique combination of value, cutting-edge infrastructural technologies and convenience that is appealing to all kinds of investors 8 AB LEADERS February 2023 STARTUP | Dubai developer says emirate’s real estate entering best phase yet The real estate market’s success is built off Dubai’s ‘amazing’ approach to handling Covid-19, the property tycoon Hussain Sajwani said Luxury developer The real estate sector now has more end-users looking to buy homes to live than ever before, according to Sajwani REAL ESTATE | rising rapidly over the past year. In some luxury areas, such as the Palm Jumeirah, prices more than doubled over the course of the year. The reason behind this rise is chie y due to a change in the demo- graphics of those coming to live in Dubai, Sajwani explained. Throughout the pandemic, the emirate saw a population increase as people around the world moved to the city to work, as the government’s successful approach to handling the pandemic won the country plaudits from the business community. Now, the people who moved to Dubai, along with their families, throughout the pandemic have decided to stay and purchase property. “They came to Dubai for six to nine months, and that was a major change. The majority of those families they Demand is crazy at the moment, especially for top luxury and second tier luxury The real estate market in Dubai has begun to enter its most sustainable period of growth yet, according to property mogul Hussein Sajwani. Dubai’s real estate market has been experiencing a post-pandemic surge, with prices across the city arabianbusiness.com 9 Rising demand The Dubai property market has been seeing a sustained demand surge in recent months $2.72BN The value of real estate transactions regis- tered in Dubai in the rst week of 2023, according to the Dubai Land Department | REAL ESTATE loved Dubai. Now you see top billion- aires from Europe moving to Dubai, buying homes, and moving their wives, and their kids into school in Dubai. This is a major change because before- hand Dubai was only a second home, not a primary,” Sajwani told Arabian Business in an exclusive interview. Dubai real estate now in ‘Phase 3’ For Sajwani, the Dubai property market has gone through three distinct phases since the emirate’s ruler, Sheikh Mohammed, loosened rules for expats to purchase freehold property in 2001. From 2001 to 2008, a period Sajwani refers to as ‘Phase 1’, the market was in its infancy, “with a lot of speculators, and overexcited investors.” In 2008, the global nancial crisis arrived at Dubai’s shores, instigating a tremendous collapse. Sajwani, who heads up property giant DAMAC, notes that at the time “no one thought it was going to be that bad.” Of the 200 private developers that had been working in the real estate sector at the time, there was only one survivor still standing when the crisis came to an end – DAMAC. “In the private sector there was only one survivor. Nobody else made it, everybody else either ran away, shut down, or left. We survived alone,” Sajwani recalls. Within a few years though, Dubai’s real estate market was back on track, with developers returning and prices rising. “Dubai has an amazing leader, and luckily we were out of the crisis within just three years. At the end of 2011 and early 2012, the market was booming,” Sajwani said. This period until the start of the pandemic in 2020 is Sajwani’s ‘Phase 2.’ Throughout those years, the market matured, with improved regulation. While some speculators and investors did return to the market – albeit to a lesser extent – most buyers were end users coming to live in Dubai. Typically, these buyers were from Middle East, Asia, India, and Pakistan, Sajwani said. range across the property market. “Now, this time buyers are ood- ing in from Europe: Germany, France, UK, Romania, Russia. From all kinds of countries an amazing number of people are moving to Dubai,” accord- ing to Sajwani. Dubai real estate prices could rise further These new buyers represent a broad swathe of di erent purchasing levels, from the “very very wealthy, to the very entrepreneurial, to owners of large businesses, along with a lot of technol- ogy companies and startups that are making Dubai their new home.” Prices for luxury property in Dubai, which many of these buyers might be pursuing, have more than doubled in response to this demand increase. Sajwani believes, “it’s possi- ble prices could go even higher because the land is very scarce in that category and there’s a lot of demand.” “In the middle level, prices haven’t gone up yet much, so still there is room for price growth. Demand is crazy at the moment, especially for top luxury and second tier luxury,” he said. Now, Dubai real estate has entered ‘Phase 3’. “My analysis post-Covid is a number of things have helped. Number one being the way govern- ment managed the crisis was amaz- ing,” Sajwani said. While other parts of the world, especially Europe, grappled with di - cult, lengthy shutdowns, Dubai went through a strict, short lockdown period before opening up. The proce- dures the authorities in the emirate, and the UAE at large, caused the econ- omy to bounce back a lot faster than elsewhere in the world. The real estate sector now has more end-users looking to buy homes to live than ever before, with a whole Next >