Succes Stories

 

Private investment firm expanding portfolio

 

Al Qudra Holding

Al Qudra Holding, the first private investment firm in Abu Dhabi, was founded in 2005 with initial paid-in capital of AED 550 million and managed to achieve net profits of more than AED 216 million in only seven months. The company has continued to expand and now has a market capitalization of more than AED 3 billion, with turnover for the first half of 2008 of around AED 1.5 billion.

Al Qudra has activities throughout the United Arab Emirates as well as many projects abroad. CEO Mahmood Al Mahmood, who was reelected the group’s CEO in a recent board meeting, explains, “All of the Middle East is being developed, and Al Qudra is the pioneer in this process. What differentiates Al Qudra is our exceptional human capital and our ability to deliver what we promise. Concerning investors and partners, we want smart money, which is often harder to find. The right human capital: that is what we are about.” Hamad Abdullah Al Shamsi, Chairman, adds, “Our investment strategy includes attracting the highest caliber of competencies and expertise, particularly local talent.”

Global network of strategic partners

Supported by a global network of strategic partners, Al Qudra now manages a diversified group of companies operating in a range of sectors, including real estate, infrastructure and utilities, services, trading, healthcare, education, financial services, agriculture and industrial manufacturing, with a special focus on privatization initiatives and build-operate-transfer (BOO) projects. Al Qudra is currently expanding its portfolio and aims to capitalize on projects with high investment potential throughout the Middle East-North Africa (MENA) region.

The group’s strategy is to collaborate with strategic partners that have solid expertise in Al Qudra’s areas of interest, diversify its investment portfolio across markets and sectors, and continue to enhance its reputation as a master property developer through its real estate arm, Al Qudra Real Estate. In Dubai, Al Qudra’s projects include the Palm Jumeirah and Bawadi, two of the emirate’s most ambitious developments.

Staying on the cutting edge

Al Qudra’s objectives are to become a major global investment group, to develop an innovative range of projects that enhance shareholder value, to be recognized as a preferred strategic partner for investors, to attract the most qualified human resources, and to be a responsible corporate citizen. Mahmood explains, “We want to pioneer new technologies and better methods, thus ensuring that in all our developments and companies, we are always at the leading edge and promoting the highest standards.”

CEO Mahmood welcomes new partnerships with international companies and investors, for example in the group’s real estate ventures. Al Qudra Real Estate recently sold a building at Cityscape Dubai for AED 210 million, around AED 2,300 per sq ft, and Mahmood says that the group’s real estate division is performing “exceptionally well”.

Future plans include creating asset-management arm

Al Qudra plans to create an asset-management firm to add to its current portfolio of companies. Mahmood explains, “We want investors to know that we are not just local or regional; we are enhancing our presence throughout MENA and going increasingly global. We aim to be an international brand and to provide quality. I am excited about our asset-management project and the new talent we will be working with, because talent breeds talent. At Al Qudra, we always push forward. We want to be known as a leading strategic investor, not just a strategic partner.”

Mahmood worked with the Abu Dhabi Investment Authority for more than a decade and is one of the region’s most respected financial-sector leaders. His goal is to develop all Al Qudra’s subsidiaries, and he says that he is currently looking into opportunities in the commodities market and at ways to develop the local agricultural sector, since Abu Dhabi “has a great deal of oil, but not so much food. In addition, consumers are thirsty for innovation and new products. Al Qudra will be the corporate farmer.”

Other goals for the dynamic group are to continue to serve as an exemplary corporate citizen, to focus on socially responsible and environmentally friendly projects, and to work hand-in-hand with Abu Dhabi’s ruler Sheikh Mohammed Bin Zayed Al Nahyan and with Dubai’s Sheikh Mohammed in achieving both rulers’ visions. “Al Qudra is not just interested in financial gains. We are in it for the long term. We aim to focus on being a good partner, and the profits will come afterwards,” Mahmood says.

IPO postponed

Al Qudra said last year that it would conduct an initial public offering that would involve a 55 percent share in the company and would raise around USD 1 billion, the UAE’s second-largest IPO to date, but the group recently announced that it would postpone the offering until later this year “given recent discussions around the revised companies’ law, allowing for institutions in the United Arab Emirates to offer less than 55 percent through an initial public offering.” For investors, Al Qudra will continue to be one of the region’s outstanding investment opportunities.

Property developer reports exceptional sales

Property-developer Deyaar reports that its projects are selling out almost immediately on release. Deyaar was established in 2002 and its IPO in May 2007 was the largest in the region up to that time. Now with new management and with activities throughout the Gulf and beyond, Deyaar continues to launch new projects, and Chairman Nasser Al Shaikh says, “All three of Deyaar’s latest launches sold out on the first day, which shows that the Deyaar brand name is still going strong.”

Al Shaikh has a long-standing commitment to Deyaar, whose shares are owned 43 percent by Dubai Investment Bank, for which he serves as a board member. “Deyaar is a solid brand that we are taking to the next level. It’s an easy challenge,” he says confidently, noting that any question of wrong-doing in the company ended with the change in management, and now the future is very bright.

International perspectives

Deyaar has a very international perspective, not only in the kinds of buyers it attracts but also in the company’s growth strategies. Al Shaikh explains, “We have had to pull back a little in Kazakhstan because of the political framework there, but our sales in Turkey and Lebanon are going extremely well.” Deyaar also has projects in the U.K. and is expanding into Saudi Arabia, India and Qatar.

Al Shaikh is certainly not troubled by any worries that the regional property-market boom will go bust. “Oil prices are, of course, very high and a recent McKenzie analysis said that by 2020, total oil revenues of the Gulf States should reach around USD 9 trillion, with oil prices of around USD 100 per barrel on average. With that kind of liquidity, no crash in the Gulf region’s property market is coming anytime soon,” he says confidently.

As for Deyaar’s advantages in the increasingly competitive local property sector, Al Shaikh says, “Deyaar has an exemplary track record, we have the strongest team, we invest in our human capital, and all that makes the difference in our developments.” In addition, Deyaar serves as a true one-stop shop, offering a full range of property services that include development, management, and leasing and brokerage services for residential and commercial properties.

Force for progress

Deyaar is working to build a better Dubai not only through its property ventures but also through its community-service initiatives, which include a significant scholarship program. Education, in fact, is one of Deyaar’s key interests, as it is for Sheikh Mohammed. Al Shaikh says, “We need change and advancement in our education infrastructure in Dubai in order to equip the next generation to be able to maintain or surpass the growth that we are experiencing now. We also need more international academic institutions here.”
A vibrant, entrepreneurial private sector is the key to Dubai’s success and will continue to drive the emirate forward in the future, Al Shaikh believes. “The private sector must take charge, initiate change and promote higher standards,” he says, adding, “We stand behind our ruler’s vision for Dubai and we are working toward it.”

Dubai Golf City: Five themed courses and much more

Dubai, long known as the City of Gold, is becoming the City of Golf as several major new golf projects get underway, and the most ambitious of these is the AED 12 billion Dubai Golf City, also known as Tilal Dubai.
Dubai Golf City will cover 55 million sq ft within the high-profile Dubailand development and will feature an array of upscale residential, sports and leisure facilities, all set in lushly landscaped grounds. It will be the world’s first multi-themed golf course and the largest single-phased golf-course development ever built. In addition to five world-class themed golf courses, it will include a six-star resort and spa, a boutique hotel, residential developments and more.

Developer Benaa Al Watania LLC, a subsidiary of Thani Investments, the Dubai-based group that recently closed a USD 100 million Musharaka sukuk issue, is anticipating that Dubai Golf City will host major tournaments in addition to helping to position Dubai as a major golfing destination.

One of region’s lowest-density developments

A distinctive feature of Dubai Golf City is that it will be one of the lowest-density projects in the region, with 70 percent green space, in line with H.H. Sheikh Mohammed’s vision of a greener, more environmentally friendly Dubai.

A self-contained community, Dubai Golf City will have – in addition to its golf-oriented and tourism components – its own retail outlets, mosques, schools, parks, lakes, and children’s play areas. Thani Investments Chairman Abdulla Saeed Al Thani commented, “Golf City has a very distinctive master plan that involves a focus on ‘social interaction’ in various project elements, including public squares, courtyards, and traditional souks.”

Signature courses

Mr. Al Thani says, “We are delighted to be working with world-class partners. The championship courses will be the most challenging, enjoyable and memorable designs and will become a central attraction in Dubai. We look forward to announcing partners in the near future.”

Golf City CEO Rishard Camball adds, “Dubai Golf City is to be the most exclusive and greenest micro-community in the region, and it is also designed to foster environment-friendly and healthy living for expatriates and locals alike.” He adds that Dubai Golf City’s golf courses will be challenging enough to be chosen by international golfing leagues for championship tournaments, while also providing a chance for local and regional players to improve their games.

Gated residential development

The gated residential development in Dubai Golf City will contain 148 mansions, 543 villas, and 2,750 town houses, all fully equipped with state-of-the-art amenities and featuring distinctive architectural styles. “The architecture provides a fusion of Arabic, Islamic and Moorish design elements, resulting in a unique style that harmonizes with the culture and history of the region. Also, the architectural character of the overall project is very rich,” Al Thani explains.

A plus for golf-lovers is that all these new homes will enjoy unobstructed views of Golf City’s distinctive golf courses: the Oasis, Wadi, Desert, Parkland, and ‘Links’, each with its own unique style. Twelve themed villages around the golf courses will complement each course’s special character. All Golf City’s residential units will be elevated around 30 feet above the ground, to offer the best possible views.

For visitors, Golf City will also have its own ultra-upscale resort and boutique hotel, which will also be elevated to provide truly breathtaking views across the development’s landscaped acres. “We are building a community where all who love golf and are associated with it can come together and share their love of the sport with like-minded people,” Mr. Al Thani points out. He adds, “The development will provide a balanced mix of sports, leisure, education, hospitality, retail, and recreation.The idea is to create a self-sufficient community devoted to golf.”

Dubai Golf City is the most ambitious golf development to date in Dubai. In 2001, Dubai was named ‘Emerging Golf Destination of the Year’ by the International Association of Golf Tour Operators. Dubai Golf City joins a prestigious list of world-class golf courses throughout the emirate and takes golfing a step further by offering not only five separate golf courses in one development, but also an unprecedented range of amenities and services. Golfers all over the world are expected to be drawn to Dubai Golf City to play golf, and then to stay longer to discover the development’s many other attractions.

Building Dubai’s success story

Dubai’s economic success story is the result of close cooperation between dynamic leaders, a forward-thinking public sector and a committed private sector.

Dubai Holding helping to bring vision to reality

Dubai Holding, created to consolidate the emirate’s large-scale infrastructure and investment projects under one corporate umbrella, now has 19 subsidiaries with activities in more than 11 sectors, including technology, telecommunications, energy, health and education, tourism, real estate, finance, hospitality, biotechnology, and industrial manufacturing.

Mohammad Al Gergawi, Chairman, explains, “With most of Dubai Holding’s existing projects moving rapidly, Dubai Holding continues to research, identify and execute future projects that will benefit not just the United Arab Emirates, but also the region as a whole. The measure of a nation’s advancement lies not only in the number of skyscrapers it bears, but also the heights of progress that its people have attained.”

Dubai Holding’s subsidiaries include Dubai International Capital, Dubai Investment Group, Dubai Properties, Jumeirah Group, Sama Dubai, Tatweer (which manages several companies in the real estate and hospitality sectors), and TECOM Investments (which operates companies and oversees investments in the information-technology and telecommunications sectors, including Dubai Internet City, Dubai Media City, Dubai Studio City, Dubai Knowledge Village, du and others). Dubai Holding also has investments in many foreign enterprises.

In a move to strengthen its position in the financial-services sector, Dubai Holding recently announced that it had consolidated its investments in Dubai Islamic Investment Group and Dubai Bank under Dubai Banking Group, to form a global Sharia-compliant investment company.

Dubai World taking the vision abroad

Dubai World, the government’s foreign-investment arm, is one of the world’s largest corporations, is described as “Dubai’s flag-bearer in global investments.” Known for its business strategy of combining pragmatic acquisitions and prudent investments, Dubai World focuses on transport and logistics, the maritime sector, urban development and investment, and financial services. DP World’s IPO in November 2007 was the biggest in the United Arab Emirates to date, raising almost USD 5 billion.

Within the Dubai World portfolio are DP World, one of the world’s largest marine-terminal operators; Drydocks World and Dubai Maritime City; Economic Zones World, which operates Jebel Ali Free Zone (JAFZA) and other free zones; Nakheel, the property developer behind iconic projects The Palm and The World, among others; Limitless, the international real-estate master-planner; Leisurecorp, a global sports and leisure investment group; Dubai World Africa; and Istithmar World, the group’s international investment arm.
Dubai World announced in May this year that it planned to increase its USD 4 billion investments on the African continent over the next few years, just one of the group’s ambitious investment projects. Dubai World has port operations in Mozambique and Senegal and owns game parks in South Africa and tourism hot spot the Waterfront in Cape Town.

Sultan Ahmed Bin Sulayem, Chairman, says, “Dubai’s success has been built on being outward-looking, progressive and in tune with world developments. Dubai World is a powerful growth engine fueled by the belief that there is a world out there that’s growing more and more creative and exciting. Themes of ‘balancing global and local’ and ‘embracing global citizenship’ lie at the very heart of what we do and believe in.”

Tatweer raising Dubai’s profile

Tatweer, part of Dubai Holding, has over USD 170 billion in investments in tourism, leisure and entertainment, and is ranked one of the world’s fastest-growing conglomerates. CEO Saeed Al Muntafiq says, “We are always prepared for whatever might happen. Change is a large component of everything Dubai does. This city is built on surprises, and these surprises are not going to stop.” He calls the current prediction of 10 percent annual growth in Dubai’s tourism sector “very conservative”.
Created in December 2005, Tatweer has already been responsible for some of Dubai’s most significant developments to date and the company continues to launch major projects, including Dubailand, the biggest leisure, tourism and entertainment destination in the world. Dubailand is the cornerstone of the emirate’s tourism sector.

Other high-profile projects for Tatweer are Bawadi, the upscale hotel and mixed-use development; Tiger Woods Dubai, an exclusive planned community featuring the world’s first Tiger Woods signature golf course, Al Ruwaya; DreamWorks theme park; Dubai Healthcare City; Dubai Energy; Universal Studios theme park; Global Village; Dubai Industrial City; Mizin; Tatweer Lammtara Joint Venture; the Dubai Mercantile Exchange; and a recently launched project to build an AED 600 million Elie Saab hotel in Tiger Woods Dubai.

Tatweer’s Tiger Woods golf course will be a 7,800-yard, par-72, 18-hole championship course adjoining luxurious residential and hospitality components, a boutique hotel, a spa, a restaurant, a golf academy, and the Al Ruwaya clubhouse. This project is not Dubai’s only major golf initiative: Dubai Golf City (known as Tilal Dubai), part of Dubailand, will cover 55 million sq ft and feature an array of upscale residential, sports and leisure facilities set in lushly landscaped grounds.
Dynamic efforts like these will keep the Dubai success story going strong.

Developer focuses on upscale projects for discerning clientele

Exclusive, innovative and privileged: these describe the exceptionally luxurious properties developed by Abyaar Real Estate Development, a joint venture between Kuwait’s Aayan Leasing and Investment Company and Al Rashdan Group. Abyaar, listed on the Kuwait Stock Exchange, recently announced an impressive 78 percent increase in profits in first-quarter 2008.

Dubai Holding helping to bring vision to reality

Investing in real estate, Abyaar is building hospitality projects, and recently completed its luxurious Venti Quattro residential tower overlooking Dubai Marina. Abyaar’s strategy is to focus on the high-end market through creating projects in the best locations, designed by leading international architects and employing the highest standards of quality.

“Abyaar is built upon a simple philosophy – a demand for exceptional property exists and discerning customers will recognize quality,” says the company’s mission statement. “We do what we love to do. Like a top designer’s fashion show, Abyaar represents taste, designer luxury and creativity,” explains Marzooq Rashid Al Rashdan, Vice Chairman and Managing Director. He adds that Abyaar is collaborating with internationally known designer Christian Lacroix to develop projects worldwide.

Supporting ‘Vision 2015’

The company has created some of the most distinctive properties in Dubai and has begun to expand regionally, with projects in Qatar, Saudi and Egypt. Abyaar strongly supports Sheikh Mohammed’s ‘Vision 2015’ program and aims to do its part by creating new cultural attractions in Dubai. “Abyaar will have more cultural activities to help achieve Sheikh Mohammed’s goal of enhancing culture in Dubai,” Al Rashdan says.
The company’s upscale projects in Dubai include Acacia Avenues, ideally located near the beaches of Jumeirah near some of the emirate’s most luxurious hotels and media centers. A fully integrated urban center featuring ultra-sophisticated contemporary design, Acacia Avenues has a range of apartments and villas surrounded by landscaped gardens and offers many sophisticated amenities, including boutiques, restaurants and cafes, and a residents-only health club and spa as well as swimming pools, children’s play areas and more.

Acacia Avenues: Olgana and Hilliana Residences

Within Acacia Avenues is the 38-floor Olgana Residences tower, which has 32 floors of residential space divided into 30 one-bedroom, 61 two-bedroom, and 28 three-bedroom apartments, 14 four-bedroom townhouses, and one four-bedroom penthouse suite. All are luxurious and offer stunning views. Townhouse residents can enjoy their own plunge or communal pool, spa and fitness center. The development includes a health club, swimming pools, spa, squash courts, children’s play areas, cafés and shops.

The 45-floor Hilliana Residences, also within Acacia Avenues, offers six floors of five-star serviced apartments as well as a mix of private residential units, from studios to four levels of penthouse suites. “This is apartment living at its very best.” The interior is designed by the world renowned interior designer Andree Putman and common facilities for residence to enjoy include a state of the art gymnasium; wellness spa; sky lobby; business centre; reflection pool; lap pool; pool deck juice bar; kid’s pool; a library and concierge services, as well as a dedicated car park and integrated security system.

Ultra-upscale Venti Quattro

In partnership with the international Radisson SAS, Abyaar has also created a property that is exceptionally luxurious even for Dubai: Radisson SAS Venti Quattro, a striking 20-storey tower housing 152 designer apartments available as studios, or with one or two bedrooms. The first 15 floors are operated by Radisson SAS for the benefit of investors, while the top five floors are available for homeowners. Every apartment is fully furnished, from the well-equipped kitchenette to the wall-mounted television. Apartments have balconies with views of Dubai Marina or of the city skyline.

All interiors were conceived by renowned Italian designer Matteo Nunziati and combine cutting-edge minimalist Italian style and five-star elegance. Each apartment is unique and designed with meticulous attention to every detail, with custom-made Italian furniture and high-quality materials from the finest suppliers. As Al Rashdan points out, “We deliver the very best style and quality, as you can see in Venti Quattro. We only work with the best.”

Investment Potential

The company has become a favorite among investors looking for outstanding opportunities in the Middle East’s fast-growing property market. Al Rashdan says that around 25 percent of buyers of the company’s exclusive properties are from the United Kingdom and the United States. Abyaar was one of the first companies to comply with Dubai’s new regulations in which property-buyers pay for their acquisitions through escrow accounts.

Abyaar plans to launched a private placement of new shares representing 10 percent of its capital at that has been eagerly awaited by investors.

Al Rashdan concludes, “I believe strongly in Sheikh Mohammed’s vision and want to be a true supporter of it by developing the highest-quality projects and developments here in Dubai, and by inviting global institutions and people to see what a phenomenon Dubai really is as well as the endless opportunities for success here. For investors, Abyaar will always be the right brand and the right partner. We will continue to add value for our shareholders.”

ANC Holdings

ANC Contracting, founded in 1976, has grown to become ANC Holdings, one of Dubai’s most innovative and successful business groups.

After only three years of operations, ANC acquired its partner Thomas Bennett, a major manufacturer of aluminum and glass products, to enhance its portfolio. These two companies became the cornerstone of the group, which allowed ANC to become a diversified conglomerate with thriving six strategic business units mainly in the Construction, Manufacturing, and Trading, Education, Hospitality and Investment/Real Estate sector. Its diverse portfolio gives ANC synergy and the capacity to move into new markets.

Tayeb Baker, ANC Chairman, says he is currently focusing on Construction, Manufacturing, Hospitality, Alternative Energies, Nano-technology and Education. This might seem an unusual mix, but Baker knows what he is doing: he is building on ANC’s proven track record to expand in high-potential areas where ANC has a competitive advantage.

Growth market construction

With booming construction business in the emirates the group positioned itself as a major player in the industry. Within the group it has various companies specialized in civil construction, curtain walling, cladding, glass processing, architectural stainless steel, glass reinforced concrete, dry wall partitions, ceiling systems, interior design services, signage, steel fabrication, and building exhibition stands. The wide range of specialized services enables the Group to offer its clients a single window of complete design and construction services. With a continuous growth, the group has delivered some of the most complex projects undertaken in the industry.

Steel for construction boom

In the steel industry, ANC’s Dubai Steel Trading (DSTC) is ranked one of the region’s biggest suppliers of structural steel for all types of construction, including offshore oil and gas projects. Baker says, “Thanks to its huge steel storage facility, DSTC is well placed to serve customers across the Middle East, the Indian subcontinent and Asia.”

Now, Baker intends to take ANC’s steel activities to the next level. “ANC has already acquired a manufacturing facility to produce stainless steel. This is the first such plant in the Middle East. Moving forward the Group is in the initial phase of setting up an integrated steel plant in the region to supply growing local demand. This will also allow us to export internationally,” he explains.

Seeking partners for alternative-energy projects

ANC is particularly eager to get involved in alternative energies and wants to form partnerships with international companies in this field. “We are looking for the right international partner for windmill power. We want to go green,” Baker says, adding that ANC is already seeking sites for alternative-energy operations.
ANC aims to incorporate ‘green’ technologies in Kings’ College, the new school that it is building in an education partnership with Zabeel Capital. “King’s College will represent real innovation in school design,” Baker explains. In fact, ANC is committed to ‘green’ practices in all its ventures, and its education and alternative-energy projects reflect its commitment to benefiting the local community over the long term.

New technologies, best practices

Baker is also targeting the exciting new field of nano-technology, maintaining ANC’s tradition of focusing on the cutting edge. For example, ANC’s Freshly Frozen Foods, which supplies to the leading supermarket chains, was the first in Dubai to design, build and equip a specialized frozen-food production facility on par with the world’s best.

For 33 years, ANC has been quick to adapt to evolving markets and to employ the latest technologies and best practices. Dynamic, forward-thinking, internationally minded groups like ANC will continue to build a better Dubai. Mr. Baker says, “all this would not have been accomplished without my people, who are my biggest assets of the group.”

ANC Holding and Zabeel Investments form education partnership

Local as well as international investors are increasingly targeting Dubai’s fast-growing education sector. Dubai-based ANC Holdings has recently partnered with Zabeel Capital to develop Kings’ Holdings, a company focused on investment in education. Kings Holdings has earmarked AED 400 million for the joint venture for the development in the education sector.

ANC Holdings is one of the leading local conglomerates that run its business operation from Dubai. Concerning ANC’s investment in education, ANC’s Chairman, Tayeb Baker says, “Dubai has given us so much, and now it’s payback time. Being able to offer high-level education to my children was very important for me and I wanted to ensure that every child in the UAE has this opportunity through Kings’.”

Kings’ Dubai and Kings’ College

Kings’ Holdings already include a benchmark primary school, Kings’ Dubai, and the company now plans to open Kings’ College, for students aged one to 18, in 2009 to fill a need for high-quality secondary education in Dubai. Baker says that the school will ensure that each student receives personalized attention. The two schools, both of which follow the British curriculum, will cover around 1.3 million sq. ft in Nad Al Sheba. Around 2,000 students will attend the schools.

Kings’ Holdings schools welcome children with special needs, who “will be able to grow and learn under the same circumstances as all other children,” Baker says, adding that Kings’ Holdings plan to expand within United Arab Emirates and beyond. He explains, “Our schools offer quality and excellence far and above the norm, which is reflected in our fees. We want to be number one, the very best, for locals and expatriates.”
The schools are to be built using ‘green’ technologies and aims to be the region’s benchmark for cutting-edge educational programs.