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

Skai Holdings

Dubai-UAE

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

Kabir Mulchandani - My Story In My Words

This is my blog and I would like it to have my story in my words. Some of you may have heard of me, and some of what you may have heard may not be very positive. Beginning in early 2009, I was accused of a range of professional failings. But none of those accusations are true. 

Nevertheless, as a consequence of those accusations, I spent 140 days in custody here in Dubai. With the support of my legal counsel, I have since completely cleared my name. I have been found innocent by every court. I first settled in Dubai with my family in 2004. Business was booming here and across the globe. It was then that I started a property investment company called Dynasty Enterprises. We were very successful.

A few years later, we merged our business with the business interests of Hilal Al Zarooni, to become Dynasty Zarooni. Between 2004 and late 2008, Dynasty Zarooni invested in, marketed and sold residential and commercial property, primarily in high-growth areas of Dubai and Abu Dhabi. The company carried out transactions during that period worth in excess of 6 billion dollars. Then Lehman Brothers went bust and, like the rest of the world, Dubai was impacted by the global financial downturn.

Not long after the start of the global financial crisis, a legal complaint was filed against me by a small group of investors whose cheques to the company had bounced. These large-scale investors, who had invested in multiple units, accused me of a range of made-up acts of wrongdoing, including that some of the projects we had sold were non-existent and that we did not have legal title to sell others that did exist.

Although the courts have since affirmed that all these claims were bogus, I understand why these investors did what they did. These investors had placed very large amounts of leveraged capital in a wide range of projects, including in some projects that we had sold them. After the sudden downturn in the Dubai property sector, these investors were left in an extremely precarious position.

They were highly leveraged, highly exposed and probably frightened. They had written very large cheques – to Dynasty Zarooni and other companies – that they knew were not going to clear. They understood that the consequences of that could be severe.

What they did next was understandable but still wrong: they tried to make me the fall guy. Over the past few years, I have spent a lot of time with my lawyers and in the courts.

Even though I have been completely exonerated – and found innocent of every single charge made against me – there are still times I look back and shake my head in wonder.

I’ve concluded that life is a lot like the property market: it’s cyclical, and full of ups and downs. Reaching the peak of the cycle can be exhilarating. Hitting bottom can be devastating.

If we believe in ourselves and what we are doing, though, we just have to accept that life is cyclical. Despite the challenges I have faced, I continue to invest in Dubai’s real estate sector because I believe there are clear opportunities for success.

Kabir Mulchandani

CEO Skai Holdings Dubai 

webmaster@skaiholdings.com