Dynasty Al Zarooni Real Estate is considering legal action against some Indian publications and those behind an alleged 'smear campaign' to malign its reputation, officials said. The campaign has allegedly been launched by a former employee of Kabir Mulchandani, chairman of Dynasty Zarooni, who was fired for alleged 'wrongdoing', Gulf News has learnt.
Two Indian publications ran reports referring to some investors' complaint that "he [Mulchandani] had misled them by showing a different property and selling them another". One of the reports said "Dubai's Real Estate Regulatory Authority [Rera] is probing Mulchandani's operations after nearly 30 NRIs from India, Russia and UK complained online".
Dynasty Zarooni, formed in 2005, is a joint venture between Hilal Al Zarooni and Kabir Mulchandani. The company has been engaged in developing, buying and selling residential and commercial properties to wholesale investors and cashing in on soaring prices and growing demand that fetched solid returns.
"Dynasty Zarooni, having a real estate portfolio in excess of Dh20 billion, has been the target of a series of false accusations in relation to complaints from investors, with regards to their Ebony & Ivory project in Jumeirah Lakes Towers," the company said in an e-mailed statement.
The project is being developed by Al Fajer Properties, a leading property developer in the UAE, managed by its president Shaikh Maktoum Hasher Al Maktoum.Over the past week there have been a number of internet blog stories and these culminating with a article in the Indian media, incorrectly quoting Rera officials, the company said.
The Ebony & Ivory development project is a Dh2.7 billion project, which was originally sold out within hours of its launch. "To date, the construction of all of the towers being developed by Al Fajer Properties is progressing rapidly," the statement said.Meanwhile, the Rera has given Dynasty Zarooni a clean chit.
"Dynasty Al Zarooni Real Estate has no violations relating to the registration of property brokers until August 25, 2008," Rera said in a letter yesterday, a copy of which was obtained by Gulf News.Hilal Al Zarooni, president of Dynasty Zarooni, told Gulf News, "We are pursuing legal action against those who are behind this campaign that is damaging our reputation."These imposters have not only targeted Dynasty Zarooni, but the UAE real estate market as a whole. The imposters should be brought to justice." he said.
Gulf News - By Saifur Rahman (Business Editor)
Kabir Mulchandani
Dubai-UAE
Kabir Mulchandani Interview - Arabian Business Forum Dubai
Kabir Mulchandani
Sunday, October 23, 2011
Thursday, October 20, 2011
To Invest or Not to Invest that is the Question? Kabir Mulchandani
The recent Arab Spring shook the Middle East. However, the UAE remains stable and safe, with business activities at a normal level. There as been no such uprising in the region and the country has become a default refuge from unrest. These aspects have lead to a trend slightly different than the usual: more traffic from Arab countries to the UAE and more business.
Europe’s growing sovereign-debt crisis and the unstable US economy could well be the cause of this “regionalization” – Arabs investing their petrodollars in other Arab countries, the UAE being the centre of such activity. Dubai has seen none of the violence that has destabilized the region. Its hotel, retail and residential real estate sectors are enjoying a boost from general stability of the country.
According to Reuters, anecdotal evidence suggests that Arabs, middle class and above, are buying Dubai property to hedge their risks in other countries. Similarly in India, a weaker currency is encouraging Indian expatriates in the Gulf to invest in domestic markets. According to the Economic Times, non-resident Indians, especially those living in the Gulf, have invested about Rs 75 crore in August and September of this year in the region, the largest pay-in in over 2 and a half years.
Recently, Russell Investments classified the UAE as an emerging market as opposed to the frontier market designation given by MSCI (Morgan Stanley Capital International) and Standard and Poor’s. The UAE is the first Gulf Cooperation Council (GCC) country to graduate from frontier to emerging market status within the Russell Global Index series.
The market in the UAE seems to be welcoming investments. In addition, articles say that those willing to invest in the UAE, have a longer term approach to investing and are not phased by short-term market fluctuations. This clearly demonstrates the relatively higher comparative value of investing in the UAE over other parts of the world.
According to the UAE Investor Attitudes Index as published in UAE daily – The National, about 60 per cent of the investors surveyed said it was a good time to put money in gold, and half said fixed-rate bank deposits were smart investments. The survey was based on interviews with over 750 people in the UAE, who are market investors, majority whom were expatriates.
Dubai’s roar and rumble has always been connected to the real estate market. There is still over-supply in the market and investors seem to not want to invest heavily in real estate. Though there are still a number of challenges to overcome, it seems stability is on its way up.
To add to that my own experience: I transfer property every day. My optimism comes from real demand and real purchasers with real money. I see a steady growth in prices until 2014 but then I see a significant jump between 2014 and 2016. Then probably in 2017 and 2018, when suppliers are against us to come back, hopefully we will have some stabilization.
Once pending infrastructure projects are near completion, more investors are likely to look into investing in the property market which is certainly taking an upturn.
According to a recent survey of the industry by PricewaterhouseCoopers (PwC) and INSEAD Abu Dhabi, the private equity industry in the Middle East and North Africa (MENA) has emerged stronger from the global financial crisis and the recent political turmoil in the region. In addition, the survey showed the small-and medium-sized enterprises (SMEs) sector has emerged as new investment target for the regional private equity players.
All in all, there seem to be enough good reasons to invest in the UAE in the long-term. The rest, time will tell!
Kabir Mulchandani
Skai Holdings
Dubai, UAE
Europe’s growing sovereign-debt crisis and the unstable US economy could well be the cause of this “regionalization” – Arabs investing their petrodollars in other Arab countries, the UAE being the centre of such activity. Dubai has seen none of the violence that has destabilized the region. Its hotel, retail and residential real estate sectors are enjoying a boost from general stability of the country.
According to Reuters, anecdotal evidence suggests that Arabs, middle class and above, are buying Dubai property to hedge their risks in other countries. Similarly in India, a weaker currency is encouraging Indian expatriates in the Gulf to invest in domestic markets. According to the Economic Times, non-resident Indians, especially those living in the Gulf, have invested about Rs 75 crore in August and September of this year in the region, the largest pay-in in over 2 and a half years.
Recently, Russell Investments classified the UAE as an emerging market as opposed to the frontier market designation given by MSCI (Morgan Stanley Capital International) and Standard and Poor’s. The UAE is the first Gulf Cooperation Council (GCC) country to graduate from frontier to emerging market status within the Russell Global Index series.
The market in the UAE seems to be welcoming investments. In addition, articles say that those willing to invest in the UAE, have a longer term approach to investing and are not phased by short-term market fluctuations. This clearly demonstrates the relatively higher comparative value of investing in the UAE over other parts of the world.
According to the UAE Investor Attitudes Index as published in UAE daily – The National, about 60 per cent of the investors surveyed said it was a good time to put money in gold, and half said fixed-rate bank deposits were smart investments. The survey was based on interviews with over 750 people in the UAE, who are market investors, majority whom were expatriates.
Dubai’s roar and rumble has always been connected to the real estate market. There is still over-supply in the market and investors seem to not want to invest heavily in real estate. Though there are still a number of challenges to overcome, it seems stability is on its way up.
To add to that my own experience: I transfer property every day. My optimism comes from real demand and real purchasers with real money. I see a steady growth in prices until 2014 but then I see a significant jump between 2014 and 2016. Then probably in 2017 and 2018, when suppliers are against us to come back, hopefully we will have some stabilization.
Once pending infrastructure projects are near completion, more investors are likely to look into investing in the property market which is certainly taking an upturn.
According to a recent survey of the industry by PricewaterhouseCoopers (PwC) and INSEAD Abu Dhabi, the private equity industry in the Middle East and North Africa (MENA) has emerged stronger from the global financial crisis and the recent political turmoil in the region. In addition, the survey showed the small-and medium-sized enterprises (SMEs) sector has emerged as new investment target for the regional private equity players.
All in all, there seem to be enough good reasons to invest in the UAE in the long-term. The rest, time will tell!
Kabir Mulchandani
Skai Holdings
Dubai, UAE
Sunday, October 16, 2011
Kabir Mulchandani at The Arabian Business Forum 2011
I recently spoke at the Arabian Business Forum that took place at the Armani Hotel. It was my first public appearance in over a year — felt good to be out there again. As you may know, I have been through a lot over the last few years. The Forum gave me the opportunity to tell my story to 200 business professionals and media, a story that has often been told incorrectly by others.
It was great to be part of a speaker list that included the UAE Minister of Economy, HE Sultan Bin Saeed Al Mansoori and some of the region’s most prominent business figures: Hussein Dabbas, President of Royal Jordanian, Mohi-Din BinHendi, President of BinHendi Enterprises, Tirad Mahmoud, CEO of Abu Dhabi Islamic Bank, and V Shankar, CEO of Standard Chartered Bank.
Speaking at the Forum was also the perfect opportunity to launch my new company SKAI Holding. At SKAI we aim to identify nearly complete, strategically located developments, inject capital into them, complete them and sell them off. We already have a few projects in the pipeline and I’m really excited about this new venture.
For those of you who would like to read my story — you can check it out here. Am open to questions if you have any!
Hopefully will be able to share a video of the talk from the Forum. Will keep you posted here.
It was great to be part of a speaker list that included the UAE Minister of Economy, HE Sultan Bin Saeed Al Mansoori and some of the region’s most prominent business figures: Hussein Dabbas, President of Royal Jordanian, Mohi-Din BinHendi, President of BinHendi Enterprises, Tirad Mahmoud, CEO of Abu Dhabi Islamic Bank, and V Shankar, CEO of Standard Chartered Bank.
Speaking at the Forum was also the perfect opportunity to launch my new company SKAI Holding. At SKAI we aim to identify nearly complete, strategically located developments, inject capital into them, complete them and sell them off. We already have a few projects in the pipeline and I’m really excited about this new venture.
For those of you who would like to read my story — you can check it out here. Am open to questions if you have any!
Hopefully will be able to share a video of the talk from the Forum. Will keep you posted here.
Kabir Mulchandani
Dubai, UAE
Thursday, October 13, 2011
Entering the Blogosphere by Kabir Mulchandani
The power of online communication, including social media, is truly astonishing. New technology has connected us in ways that were unimaginable just a few years ago, bringing us closer, empowering all of us to share our opinions – giving a voice to the previously voiceless, as we have seen so powerfully illustrated in recent months here in the Arab world.
This blog is my own small contribution to that dialogue. I would like to use this space to share my thoughts and opinions, and to engage in a conversation about the property market, entrepreneurship, new books and new ideas about how to change things for the better.
I think I can say with confidence that I’m an expert when it comes to the property sector here in Dubai. But I don’t claim to know any more than anyone else about some of the other issues I plan to discuss in the weeks and months to come.
That’s why I would really like to use this space as a forum for discussion and debate – about real estate, business and life here in Dubai, the city I am so proud to call home.
Blogging is new to me, so I don’t know with any certainty where this will lead, and what direction these entries will take moving ahead. I do plan to write here about once a week, though, so please stay connected.
Thanks for reading!
Kabir Mulchandani
Dubai, UAE
This blog is my own small contribution to that dialogue. I would like to use this space to share my thoughts and opinions, and to engage in a conversation about the property market, entrepreneurship, new books and new ideas about how to change things for the better.
I think I can say with confidence that I’m an expert when it comes to the property sector here in Dubai. But I don’t claim to know any more than anyone else about some of the other issues I plan to discuss in the weeks and months to come.
That’s why I would really like to use this space as a forum for discussion and debate – about real estate, business and life here in Dubai, the city I am so proud to call home.
Blogging is new to me, so I don’t know with any certainty where this will lead, and what direction these entries will take moving ahead. I do plan to write here about once a week, though, so please stay connected.
Thanks for reading!
Kabir Mulchandani
Dubai, UAE
Sunday, October 9, 2011
After the Crisis Dubai Real Estate Today - Kabir Mulchandani
The financial crisis of 2008 effected Dubai as much as the rest of the world, especially the real estate industry. While the dust hasn’t entirely settled, the sector has returned to enough stability to make a few observations and predictions. And, the good news is, opportunities once again abound.
A return to off plan developments and sales is some way off, with large amounts of inventory still to sell-off.
Industry predictions of a return to speculation, fueled by cash-rich speculators buying up property in distress sales at rock-bottom prices, have failed to materialize. In fact, fire sales were largely notable by their absence, with canny property groups and even buyers holding onto their assets.
What we have, then, is something that more resembles mature real estate markets the world over than the ”gold rush” mentality of five years ago. To that end, here are five observations and predictions about the current state of the property market in Dubai.
1) Speculation is dead. The days of “irrational exuberance” are over. End users and measured investors looking for balanced, diversified portfolios will define buyers in Dubai for the next few years.
2) Off plan, as we know it, is over. For now, anyway, property developers and estate agents must concentrate on reducing inventory. There may well be scope for some niche developments, perhaps at the low to mid-end, but in general, I don’t see investors, or lenders, having much appetite for truly off-plan developments (meaning those that exist only as blueprints) for the foreseeable future.
3) Cash is no longer king. Post-crisis, with banks reining in lending and the country’s biggest mortgage providers not providing mortgages, cash was supreme. Now, liquidity is returning, with good deals for mortgages once again being advertised in print and on radio. It’s still cheap to rent, but once those rents bottom out, and inevitably start to rise, we’ll see house prices follow suit.
4) Location is everything. The headlines may not have reflected this, but demand for high-end properties on the Palm, the Hills and other ultra-prestigious developments barely abated over the past three years. Villas changing hands for 10, 15, even 20 million dirhams has not been unusual. Established developments in the upper and mid-level, too, have been proving attractive. Yes, prices are down from the highs, but the market for properties in the Greens, Lakes and similar developments is returning. Most exciting, though, are the areas surrounding Burj Khalifa, especially Downtown, which are proving extremely desirable, and show sentiment is positive for developments – and developers – with proven track records.
5) It’s not just about luxury. One of the healthiest consequences of the bubble bursting is a clear differentiation in terms of location and price points. Where, once, virtually all properties were marketed, and sold, as the height of luxury, we can now easily distinguish between projects, developers and buildings, and price them accordingly.
It’s highly unlikely we’ll return to the speculative heights of 2007, but that’s a good thing. Instead, we can look forward to a mature, stable real estate market, where choice abounds and value can be more readily quantified.
Kabir Mulchandani
Skai Holdings
Dubai-UAE
A return to off plan developments and sales is some way off, with large amounts of inventory still to sell-off.
Industry predictions of a return to speculation, fueled by cash-rich speculators buying up property in distress sales at rock-bottom prices, have failed to materialize. In fact, fire sales were largely notable by their absence, with canny property groups and even buyers holding onto their assets.
What we have, then, is something that more resembles mature real estate markets the world over than the ”gold rush” mentality of five years ago. To that end, here are five observations and predictions about the current state of the property market in Dubai.
1) Speculation is dead. The days of “irrational exuberance” are over. End users and measured investors looking for balanced, diversified portfolios will define buyers in Dubai for the next few years.
2) Off plan, as we know it, is over. For now, anyway, property developers and estate agents must concentrate on reducing inventory. There may well be scope for some niche developments, perhaps at the low to mid-end, but in general, I don’t see investors, or lenders, having much appetite for truly off-plan developments (meaning those that exist only as blueprints) for the foreseeable future.
3) Cash is no longer king. Post-crisis, with banks reining in lending and the country’s biggest mortgage providers not providing mortgages, cash was supreme. Now, liquidity is returning, with good deals for mortgages once again being advertised in print and on radio. It’s still cheap to rent, but once those rents bottom out, and inevitably start to rise, we’ll see house prices follow suit.
4) Location is everything. The headlines may not have reflected this, but demand for high-end properties on the Palm, the Hills and other ultra-prestigious developments barely abated over the past three years. Villas changing hands for 10, 15, even 20 million dirhams has not been unusual. Established developments in the upper and mid-level, too, have been proving attractive. Yes, prices are down from the highs, but the market for properties in the Greens, Lakes and similar developments is returning. Most exciting, though, are the areas surrounding Burj Khalifa, especially Downtown, which are proving extremely desirable, and show sentiment is positive for developments – and developers – with proven track records.
5) It’s not just about luxury. One of the healthiest consequences of the bubble bursting is a clear differentiation in terms of location and price points. Where, once, virtually all properties were marketed, and sold, as the height of luxury, we can now easily distinguish between projects, developers and buildings, and price them accordingly.
It’s highly unlikely we’ll return to the speculative heights of 2007, but that’s a good thing. Instead, we can look forward to a mature, stable real estate market, where choice abounds and value can be more readily quantified.
Kabir Mulchandani
Skai Holdings
Dubai-UAE
Monday, October 3, 2011
Why it’s Business as Usual in Dubai
Mark Twain once famously quipped, on seeing his own obituary printed in error by a newspaper: “Rumors of my passing have been greatly exaggerated”.
The same could have been said by Dubai at any point over the past three years. Even at the height of the debt crisis, when newspapers the world over were fighting with one another to do the city down, they all missed the point.
Sure, the mega real estate projects and developments, and the luxury malls and the 7-star hotels captivated the world’s attention. And so, when real estate, retail and tourism took a hit, it was obviously game over for Dubai, no?
Far from it. Dubai has never been about just hotels, real estate, mega projects, or bling. At its heart, this thriving city has been built on strong foundations of trade and tolerance, two things that have gone hand in hand, and helped the city establish itself as a world-class logistics and commerce hub.
Of course, trade, with its huge warehouses, gritty ports and dusty industrial parks will never be glamorous, or attract the attention of the mainstream press. A trip to Jebel Ali Free Zone takes you further from the glitzy and glamorous side of Dubai life than the 30km journey suggests, but these docks and these warehouses are the bedrock on which the luxury projects were built.
Hand in hand with the mega projects, too, came basic infrastructure developments that are second to none not just in the region, but in the world. Airports, the metro, roads and bridges were put up along with the skyscrapers and the malls, making the city easy to navigate, and not just for commuters, but for multinationals needing a secure, convenient and well serviced location in the Middle East.
Commerce, although dented by the global recession, is today helping to restore Dubai’s reputation as playground for the rich and powerful. The Dubai International Financial Centre (DIFC), the heart of the city’s commercial life, has in a few short years established itself as the GCC’s de facto finance hub. No mean feat, considering the equally ambitious, but wealthier, competitors.
For anyone looking to do business in the Gulf, or even further afield, the reasons to pick Dubai as a base are obvious. Great infrastructure, first-class services, a liberal environment, in terms of both business climate and society, combined with a strategic location straddling East and West, has made the city hugely attractive for multinationals and entrepreneurs from all corners of the globe.
In all, some 200 nationalities have chosen to live in this city. Safe, stable and full of opportunity, I first moved here to seize those opportunities in 2004. What I’ve found is a remarkable and unique place, a city that rewards risk and innovation, and one that I’m proud to call home.
Good Luck
Kabir Mulchandani
The same could have been said by Dubai at any point over the past three years. Even at the height of the debt crisis, when newspapers the world over were fighting with one another to do the city down, they all missed the point.
Sure, the mega real estate projects and developments, and the luxury malls and the 7-star hotels captivated the world’s attention. And so, when real estate, retail and tourism took a hit, it was obviously game over for Dubai, no?
Far from it. Dubai has never been about just hotels, real estate, mega projects, or bling. At its heart, this thriving city has been built on strong foundations of trade and tolerance, two things that have gone hand in hand, and helped the city establish itself as a world-class logistics and commerce hub.
Of course, trade, with its huge warehouses, gritty ports and dusty industrial parks will never be glamorous, or attract the attention of the mainstream press. A trip to Jebel Ali Free Zone takes you further from the glitzy and glamorous side of Dubai life than the 30km journey suggests, but these docks and these warehouses are the bedrock on which the luxury projects were built.
Hand in hand with the mega projects, too, came basic infrastructure developments that are second to none not just in the region, but in the world. Airports, the metro, roads and bridges were put up along with the skyscrapers and the malls, making the city easy to navigate, and not just for commuters, but for multinationals needing a secure, convenient and well serviced location in the Middle East.
Commerce, although dented by the global recession, is today helping to restore Dubai’s reputation as playground for the rich and powerful. The Dubai International Financial Centre (DIFC), the heart of the city’s commercial life, has in a few short years established itself as the GCC’s de facto finance hub. No mean feat, considering the equally ambitious, but wealthier, competitors.
For anyone looking to do business in the Gulf, or even further afield, the reasons to pick Dubai as a base are obvious. Great infrastructure, first-class services, a liberal environment, in terms of both business climate and society, combined with a strategic location straddling East and West, has made the city hugely attractive for multinationals and entrepreneurs from all corners of the globe.
In all, some 200 nationalities have chosen to live in this city. Safe, stable and full of opportunity, I first moved here to seize those opportunities in 2004. What I’ve found is a remarkable and unique place, a city that rewards risk and innovation, and one that I’m proud to call home.
Good Luck
Kabir Mulchandani
Dubai-UAE
Monday, September 26, 2011
Entrepreneurship Starting Out by Kabir Mulchandani
How many of you want to be an entrepreneur but don’t know where to begin? Starting up your own business is not easy, but neither is it rocket science. Here are some tips that may help you:
Narrow in on that one idea:
You need an idea, just one, well-researched, idea. It doesn’t have to be unique, it just has to be something that you are passionate about, and that you know there is a market for.
Be clear on your target audience:
The more niche your audience is, the better you will be able to cater to their needs.
Don’t quit your job:
You really don’t need to quit your job. Make time for it, when you see there is need to quit your day job, only then consider it.
Don’t invest all your money:
You will be surprised how little capital investment you need to get going. Budget wisely but be prepared to take some risks.
Read about successful entrepreneurs:
You can learn a tremendous amount by just reading what successful businessmen have done, what they have learnt and how that learning can be applied to you.
Some books worth reading:
–Screw It, Let’s Do It: Lessons In Life
–Forbes greatest business stories of all time
–Great businesses and minds behind them
Your enterprise does not need to be high-risk: Start small, be willing to lose the money you have invested; do your research but trust your instincts too.
Kabir Mulchandani
CEO Skai Holdings
webmaster@skaiholdings.com
Narrow in on that one idea:
You need an idea, just one, well-researched, idea. It doesn’t have to be unique, it just has to be something that you are passionate about, and that you know there is a market for.
Be clear on your target audience:
The more niche your audience is, the better you will be able to cater to their needs.
Don’t quit your job:
You really don’t need to quit your job. Make time for it, when you see there is need to quit your day job, only then consider it.
Don’t invest all your money:
You will be surprised how little capital investment you need to get going. Budget wisely but be prepared to take some risks.
Read about successful entrepreneurs:
You can learn a tremendous amount by just reading what successful businessmen have done, what they have learnt and how that learning can be applied to you.
Some books worth reading:
–Screw It, Let’s Do It: Lessons In Life
–Forbes greatest business stories of all time
–Great businesses and minds behind them
Your enterprise does not need to be high-risk: Start small, be willing to lose the money you have invested; do your research but trust your instincts too.
Kabir Mulchandani
CEO Skai Holdings
webmaster@skaiholdings.com
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