< Previous10 Vol. 25/06, June 2024 COMMENT Luxury meets well-being MAG unveils Keturah, a new concept set to elevate Dubai’s booming property market tion in Dubai’s market, Talal Moafaq Al Gaddah, founder and CEO of Ketu- rah, founded a revolutionary luxury well-being real estate and hospitality concept, Keturah, to redefine the industry landscape and set the company apart from competitors. The Ritz-Carlton Residences, Dubai, Creekside was the first Keturah project and is the first development in the region to pursue a WELL Health- Safety Rating certification. As part of Keturah Resor t, the project was conceived to combine luxury, well-be- ing and a true sense of community. Comprising 12 mansions and 177 residences across seven buildings, Keturah Resort presents an array of world-class amenities that elevate the living experience: A five-star wellness hotel, a private members-only club, a women’s club, a kids club, a holistic wellness centre, and Michelin-star restaurants create an enticing tapestry BY ARABIAN BUSINESS STAFF BRAND VIEW Keturah Resort is along Dubai Creek, facing the serene Ras Al Khor Wildlife Sanctuary Dubai’s real estate market has exper ienced tremendous growth in the post-Covid era, cementing its status as a premier invest- ment and living destination globally. Major development projects, both resi- dential and commercial, continue to transform the emirate’s skyline at a staggering pace. Luxury property has seen a particu- lar boom, as high-net-worth individuals (HNWIs) and investors look to capital- ise on the burgeoning real estate sector. A wide variety of lavish properties catering to HNWIs have sprouted across the city. From beachfront apart- ments to mansions overlooking golf courses, the ambitions of developers seem boundless. At the same time, buyers demand exclusive communities with a whole host of superior amenities. Seeing an opportunity for innova-arabianbusiness.com 11 BRAND VIEW 177 The number of well-designed residences across seven buildings at the Keturah Resort of indulgence. Additionally, a 550-metre promenade, sustainable and organic-focused retail spaces, 24/7 private parking with valet services, and a gated community with unparalleled views of the wildlife sanctuary contrib- ute to an unmatched lifestyle. Keturah Resort is along Dubai Creek, facing the serene Ras Al Khor Wildlife Sanctuary. Oasis of rejuvenation By placing health, well-being and qual- ity of life at the core of its develop- ments, Keturah has tapped into increasingly important considerations for modern home buyers. Its resort- style projects offer residents and guests an oasis of rejuvenation through serene landscapes, wellness facilities and a holistic lifestyle. The second launch part of the Keturah brand, Keturah Reserve in Meydan, is another first in the Middle East, unveiling the ‘Bio Living’ concept. The project offers transfor- mational living through the design of space where nature is incorporated into the built environment to improve occupants’ physical, mental and emotional health. Bio Living creates the perfect synergy between interior design, architecture, and landscape with complete respect to the surround- ing ecosystem. Both interiors and architecture are crafted from the same raw materials and colours to subtly merge the archi- tecture with the surrounding desert landscape. Travertine, wood and bronze link inside with outside. The restrained colour palette of bleached bone, cham- pagne and bronze further introduces the natural landscape inside the home. Lush growing nature is visible from every vista, including olive trees, palm trees, green walls, balcony planters and rooftop gardens. Project features Keturah Reserve features 93 town- houses, 90 villas, and 540 units across six apartment block buildings. The project was developed to foster a thriv- ing and harmonious community with communal spaces like The Park (featur- ing open-air meditation and exercise Keturah Reserve features 93 townhouses, 90 villas, and 540 units across six apartment block building zones), an outdoor pool, and women’s and men’s gyms and spas. Just as with the architecture, activities such as the Pilates Studio, WaterBike pool, Silk Rope classes, and a rooftop meditation and yoga space are all designed to develop and strengthen the body’s core from the inside out. The third project, Stabio Garden Living by Keturah, was recently announced and will be developed in Stabio, Switzerland, marking Keturah’s international expansion. It will feature around 180 units across 10 buildings; state-of-the-art amenities, such as a fitness area, wellness area, a kids’ indoor and outdoor play area, a co-working space, and a bicycle storage space. It is expected to be completed by the second quarter of 2027 and will embody the Bio Living concept, incor- porating nature into the built environ- ment to improve its occupants’ physi- cal, mental and emotional health. As regional populations continue to grow their focus on preventative health- care and wellness, Keturah is set to fill an important need. Both developers and investors recognise the value and cachet well-being attributes bring to their portfolios. The brand is thus perfectly primed to make its mark on Dubai’s ongoing construction boom. Keturah Reserve in Meydan is another first in the Middle East, unveiling the ‘Bio Living’ concept12 Vol. 25/06, June 2024 BRAND VIEW Looking for value Victor Orlovski, founder and Managing Partner of R136 Ventures, breaks down the future for venture capital and the startup ecosystem in the region What is your assessment of the current state of the venture capital landscape in the GCC region? Where are the biggest opportunities for growth and investment? The GCC and especially the UAE is a very attractive market for global capi- tal. We are living now in times of de-globalisation and disintegration, capital in general and banks in particu- lar are the driving force of globalisa- tion that was governing the world order for over 60 years. But in the beginning of 21st centur y we are witnessing first a slowdown of globali- sation and starting from 2009 a rapid deglobalisation which is accelerating BY ARABIAN BUSINESS STAFF Venture capital is the most sophisticated, insiders-driven capital that requires a lot of patience, knowledge and special attitudearabianbusiness.com 13 BRAND VIEW $2.1BN The venture capital invested in the GCC in 2023, according to a report from PwC We are witnessing the next Industrial Revolution that may change not only the way we live and behave but change ourselves as species now. Regional hubs therefore are becoming important for capital to land upon. The GCC is clearly one of these hubs. Good governance, low tax, secu- rity, tolerance to different cultures and traditions and great quality of life are the driving force of relocation of finan- cial and human capital to UAE. Meanwhile, venture capital is mostly a proxy of great entrepreneur- ial and technolog ical talent. It appeared and started developing in Silicon Valley in the 20th centur y mostly due to vast migration of talent to this part of the world. In order to build a venture capital ecosystem in the region, it should out compete other regions for the best young entre- preneurial and tech talent. Venture capital is the most sophisti- cated, insiders-driven capital that requires a lot of patience, knowledge and special attitude. Venture capitalists aren’t searching for alpha, they are building alpha with the founding teams. For that reason, venture capital knowledge and the ecosystem are yet to be built in the region. It should become a destination not only for the richest but the smartest and the most ambitious risk takers. It’s a little bit of a chicken and egg problem as talent will go to where it may prosper and flourish the most and capital is inevitably part of entrepre- neurial success. The GCC should promote new regulations and regimes building up a proper legal framework in such areas like mobility, robotics, finance, bio engineering, construction and others. It should attract best students through building and main- taining a world class high education. Venture capital could not be built in years but rather a decade and there is still a lot to be done to make this region a leading hub in global innovations. Larger regional companies are focused on digital transformation and innovation - how can they go beyond incremental improvements and achieve true breakthrough innova- tions? What strategies or mindsets need to change? Incremental innovations are the enemies of the breakthroughs, same goes for status quo and prosperity. That’s the reason the most innovations are happen- ing in startups that put “all eggs into one basket” and fail miserably 99 times of 100, but the one that survives becomes the next big thing. The largest GCC enterprises are not different from those in the US, EU or China. Certainly, competition drives inno- vation. State laws should allow this competition to happen. On the other hand, startups need exits and most of them are happening through M&As with larger companies. Large regional companies should learn to innovate through acquisition of smaller scale Good governance, low tax, security, tolerance and great quality of life are the driving force of relocation of financial and human capital to UAE, Orlovski says innovative startups and learn how to integrate them into their value chain. This is a hard lesson to learn but at the end it will promote both innovations in large organisations and launching even a great number of startups in the region. Also, states should prioritise regimes that help the best interna- tional startups to build their hubs in the region. What can governments in the GCC do to further stimulate the develop- ment of strategic technologies like AI and create a more fertile ground for their adoption? The recipe is simple but hard to build. The GCC should become the destina- tion for the next generation of Steve Jobs, Elon Musk and Sam Altman like individuals and thousands of their supporters. It should be an early adap- tor of cutting-edge legislation and regulation in pharma, new materials, robotics, use of AI and many other areas. It should build a cutting-edge processing and data powers and be a global centre of education and learn- ing for young talent across the globe. Looking 10-15 years out, what major innovations or new sectors do you foresee emerging that could funda- mentally transform our economies and societies in the GCC and beyond? When we look 10-15 years down the road I would envision our world to go through a dramatic pivot, I would even say existential changes. We are witness- ing the next Industrial Revolution that may change not only the way we live and behave but change ourselves as species. We are certainly not ready to enter the era of a super intelligence, super mobility, excessive and everlast- ing almost free accessible on demand energy and ultimate quantum level unlimited compute power. We should dramatically transform our societies, social habits, biases, states governance and the world order. These changes won’t come without a great pain and tensions. But I hope that we are being the most adaptive species on this planet will overcome these challenges and will find our way. 14 Vol. 25/06, June 2024 BRAND VIEW Emaar announces new AED55bn residential community in Dubai The Heights Country Club and Wellness, Emaar’s latest residential masterplan, aims to provide an exclusive retreat lifestyle Dubai development giant Emaar has revealed plans for a new masterplan in the city with a focus on health and wellness at a grand event held at the Armani Hotel on May 20th. The Heights Country Club and Wellness community spread across 81 million sq ft will house over 11,400 residential units with the aim to provide an exclusive retreat lifestyle. The master community w a s unveiled with several VIP guests, inves- tors and stakeholders in attendance. The AED55bn development will merge high-quality amenities with serene landscapes to become a sustainable residential hub to foster health and wellbeing in Dubai. BY ARABIAN BUSINESS STAFF The Heights Country Club and Wellness includes chic townhouses and semi-attached villas that blend linear forms with elegant curvesarabianbusiness.com 15 BRAND VIEW 11,400 The number of carefully-designed residential units at the The Heights Country Club and Wellness project by Emaar The project’s strategic location, just 10 minutes from the expanding Al Maktoum International Airport, under scores its accessibility and convenience. The airport’s expansion will transform it into the world’s larg- est, with a capacity to handle 260 million passengers annually. Emaar’s vision for The Heights includes chic to wnhouses and semi-attached villas that blend linear forms with elegant curves, mirroring the natural environment. Arabian Business takes a closer look at Emaar’s upcoming master community, and here is all you need to know about The Heights Country Club and Wellness: Located at the junction of E611 and E77 in the Al Yalayis 5 commu- nity of Dubai, residents are set to benefit from a community that encourages wellness. The prime loca- tion is situated close to key logistics and industrial employment centres. The core of the community feature an open space area running over 1.3 million sq m and a cycling track which spanning for a length of 38km. In addition, the area will also feature expansive parks, event plazas and more. The Heights Country Club and Wellness will boast an exclusively designed spa facility, upholding the prestigious Emaar Hospitality brand The residential offerings at The Heights include four-bedroom semi-attached villas and three-bed- room, four-bedroom townhouses. The development ensures easy access to Dubai’s urban centres while provid- ing an escape from the busy city. The community f acilities are comprehensive and include several provisions: • State-of-the-art wellness centre • Expansive greenways • Family parks • Multiple community centres • Retail space • Gourmet and organic F&B options • Schools • Hospital • Botanical gardens • Sports courts Accessibility and mobility are key features of The Heights, as all resi- dents are situated in close proximity to local and distr ict parks, and community centres. The Heights Country Club and Wellness offers a range of lifestyle amenities including a wellness centre focused on health and fitness, exer- cise areas and sports courts for active lifestyles. The community also features outdoor spaces such as medi- tation areas, nature trails, BBQ areas and playgrounds. “The Heights Country Club & Wellness is our response to Dubai’s prog ressive vision of promoting well-being. By combining lush land- scapes, advanced wellness facilities, and dynamic community spaces, we are creating an environment that goes beyond the typical aspects of luxury living by providing a holistic lifestyle that benefits residents’ physical and mental health,” said Mohamed Alab- bar, Chairman of Emaar Properties. Life at The Heights Country Club and Wellness aims to embrace a holis- tic approach to community living with a strong emphasis on wellness and the outdoors. The country club aims to become a central hub for community engagement and wellness activities. The new masterplan embodies the ethos: ‘Where Life is Well-Lived.’ 16 Vol. 25/06, June 2024 COMMENT The future of family businesses Has the NextGen checked out? not willing to operate current tradi- tional businesses the family has built over multiple generations. Many of these are old-school businesses they find boring. Industrials, chemicals, manufacturing, pharma, equipment – all seem to make this list. The NextGen forgets that everybody can’t be an internet or consumer startup. As long as the business is profitable and can generate future generations of family wealth, it’s nothing to scoff at. So, if you have NextGen family member excited about operating the traditional family business, consider yourself blessed. Build a professional career plan that you would build for a high-performance young professional in your firm. Firstly, understand the career goals of the family member, what are their competencies, and what excites them. There is no point being part of one’s own family business if these basic expectations aren’t addressed. Then have a senior HR professional assigned to all family members in the business so that they can track and enhance their personal and professional develop- ment. Follow that with a customised one-y ear management trainee BY SANJIV ANAND, CHAIRMAN, CEDAR MANAGEMENT CONSULTING INTERNATIONAL FA MILY BUSINESS Many of the NextGen are not willing to operate current traditional businesses the family has built over multiple generations Eighty percent of the world’s companies are family owned. Almost all SME businesses are family owned, and often even large ones. 260 of the top 500 family busi- nesses are listed. They are generally profitable, and account for 60 percent+ of a country’s GDP. And we know most world economies are growing. So, this is all good stuff. But here’s the catch. Data shows that the number of family business surviving for the next generation is declining. Around 30 percent of survive second generation, 15 percent survive less than third generation, and less than 10 percent survive fourth generation. While these number will be better in the Middle East and Asia, this still is concerning, and begs the question – has the next generation checked out? Answering this question is not only important if you belong to a family that owns a business, but even for a profes- sional, because unless you live on another planet there is an 80 percent chance that you work for a family business. I figure there are 4 different kind of NextGen family “personalities” in play. 1. The operator You’re lucky. Many of the NextGen are arabianbusiness.com 17 FA MILY BUSINESS programme that rotates the family member across all key functions so a decent understanding of the overall business is developed. Check progress every quarter, and at the end of the year, do a proper assessment so that an operational role is finalised to move into. Ensure the individual is put on some strategy/operational committees as an observer – not a decision maker. It’s impor tant to stretch the personal, professional, and deci- sion-making competencies. Lastly, compensate well. My general recom- mendation is 30 percent - 50 percent over the market rate of an externally hired professional. It’s a small price to secure the family’s future wealth. 2. The entrepreneur This is the next gen family member who has limited patience, thinks the existing businesses are boring, values their independence, and want to chart their own path forward. OK, I guess if the family was not supportive, then how will new businesses be built, so I guess it’s fair to be supportive to this group – with some ground rules that an exter- nal investor would also expect. To start with a full business plan needs to be submitted to the family board for approval with a full investment and operational plan. Secondly, there must be a co-pilot who is an internal successful profes- sional or an external hire to co-run the business with the enthusiastic family member. Similar rules that a venture capitalist (VC) would apply to an investment should be applied – a PowerPoint idea should be at least moved to a proof of concept with some revenue, even if it is loss making for the 1st two years to show that the business has potential legs. Then series A/series B kind of investment expectations should be put in place with market benchmarked targeted returns of 40 percent-60 percent IRRs. And lastly to have the family feel like there is some skin the game, 20 percent+ of individual equity can be assigned. The rest with the family. Here there is a compensation cut where compensation should be at market rate or up to 30 percent below market. Skin in the game is a two-way street! 3. The investor This is a new career path that the next gen seems to be carving out for them- selves. No not the corner office, but the Family Office. They are not interested in operating anything, or for that matter building anything, but wanting to back and invest in companies. Till a few years ago, this role would not have been possible as family wealth was often managed by the group operating CFO. Then it w ent to a MFO (Multi-Family Office) model, and now even families with moderate wealth have their own Family Office (FO), and the young guns are keen to part of this team. Afterall, doesn’t it feel powerful and fun to play monopoly? Well, Ok. Game on. But it’s back to the rules again, very much like a VC/PE fund would have. What is the investment thesis, what sectors, what stage, what risk, what returns, what due-diligence, what processes, what timelines, what investment committee, target IRRs, liquid or closed-end, what geographies, what exits, etc. etc. etc. The basic operating model of any professionally run VC and PE fund. The co-pilot here needs to be a profes- sional fund manager/investor that has run another investment fund, and who under stand the value of investor The NextGen have forgotten that everybody can’t be an internet or consumer startup, Anand says money, even if it is internal. There are plenty of top business school VC/PE executive programmes that the Next- Gen must also attend if they want to be in this business. Here too is a compensation haircut. Remember most funds have an eight- year life after which the carry comes in to the fund managers? Well, I would give the family member 7-10 percent carry, give the fund no more than 2 percent of the investment amount to operate the fund every year, and a salary that is market rate. Most invest- ment professional recognise that the potential lottery is in year eight, so our young family member will have to show some patience. 4. The chiller This is the young family member who doesn’t want to take any responsibility but wants to enjoy all the benefits of wealth. As I sometimes say, they want to spend their life discovering them- selves – unfortunately on family wealth. What do you do? Well, unfortu- nately there isn’t much of a fix here. You can take a horse to the water, but you can’t make them drink. The best solu- tion under the circumstances is to provide a monthly “paycheck” for personal expenses, and an appropriate dividend check at the end of the year. Hopefully at some point in their life, they will wake up, face a deep personal or professional challenge that they must deal with, or find a life-partner who is a good influence. So, in the end, has the NextGen checked out? Well not really if you don’t look at it from the lens of being inter- ested in the same operating business. It’s just that this generation has less patience, is more independent, want to do things their own way, and we have largely provided them the safety next to dream big. Even if 70 percent of your NextGen family members pick one of the top three options and do them right, your home safe. Somebody once told me that never assume that what was the best business or career choice for you will always apply to the next generation. That time has come. CO VER S T O R Y | MONA K ATTAN 18 25/06, June 2024 Mona Kattan, xxx xxxxx x xxxxxxxxxxx xxx xxxxxxxxxx xx xxxxxxxxxxxxx xxx xxxxxxxxxxx xxxxxx Words Anil Bhoyrul //// Photography Vladimir Marti Styling Laura Jane Brown //// Styling Assistant Florence Webber THE HUSTLER Mona Kattan has already helped create a multi- billion-dollar empire. Can she do it again with her fragrance brand Kayali? Only a fool would bet against her 18 25/06, June 2024arabianbusiness.com 19 | SHAJI UL MULK arabianbusiness.com 19 Maybe when I am in my fifties, I will be more willing to calm down, but right now I have so much fire in me and so much appetite to disrupt, innovate and take risks. I like to hustle MONA K ATTAN | CO VER S T O R Y arabianbusiness.com 19Next >