UAE’S inspiring journey towards a knowledge-based economy
The final preparations for Expo 2020 is underway, and if early projections are anything to go by, the event will be etched in the history books as an epoch-making show
The UAE is currently in the midst of embracing an ambitious vision for its future.
The nation’s exhilarating journey towards a knowledge-based economy is about to experience a particularly defining moment, in the form of the upcoming Expo 2020, where in the words of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, “Dubai will astonish the world.” The final phase of preparation is underway, and if early projections are anything to go by, Dubai Expo will be etched in the history books as an epoch-making event, whose impact will transcend generations.
Come October, the who’s who of the global business ecosystem will grace the event, along with hordes of tourists and those exploring opportunities in a nation that exudes unparalleled entrepreneurial spirit.
The mega event follows several watershed moments in recent months, with the cumulative effect of the UAE government’s progressive and visionary initiatives transforming the lives of citizens.
This palpable impact cuts across business and industry lines, including the regional real estate sector. The property market currently boasts a decade-high affordability, accompanied by steady sales, and the outlook is promising for the foreseeable future. What’s more, this dynamism extends to all real estate sub-segments, including the fit-out market, which, by one estimate, is expected to reach a volume of Dhs3.4 billion by 2022.
To gain a better understanding of the finer nuances transforming the UAE fit-out market, Gulf Today spoke with Ahid Shaikh, the Cofounder and CEO of Bianca and Bianco, a Dubai-based company addressing the rising demand for affordable luxury products, within the segment. Ahid Shaikh is an industry insider with nearly 15 years of real estate experience. Identifying a gap between affordability and luxury in the fit-out market, Ahid Shaikh, with the support of an equally dedicated team, launched Bianca and Bianco in a bid to meet this under-served need. The company’s vision and product range are proving to be a perfect fit, for a market that boasts a sizable aspirational middle class population, with a penchant for aesthetic living spaces.
“Luxury has age-old connotations of expense and exclusivity. We, at Bianca and Bianco, however, view luxury in a different light, as something that is inclusive and democratic,” Ahid says. “We are in the thick of an experience economy, where business-focused companies are revisiting their strategies and shifting the focus on customer needs. The customers, for their part, are in the market for innovative new products that do not burn a hole in their pockets. Homeowners are seeking an arresting, cosmopolitan look for their new homes, or looking to replace existing fittings that are becoming passé. Their decision to refurbish old properties in contemporary style and give a luxurious makeover is also validated by expert opinion, according to which, renovation enhances property valuation by 10-15%.”
Attesting to Ahid’s belief is a noticeable rise in renovations and refurbishment across the UAE, especially in older, established communities that display a glaring incongruity with contemporary design. Real estate owners are also recognizing a market pattern where new developments are mostly youth-centric. Tailored around the expectations and preferences of the younger generation, whose increasing role in demand-side economics is well-substantiated in recent studies, such trends are only likely to gain more momentum, with the passage of time. Owners are keen on giving existing properties a facelift through trendy and designer fittings, increasing their desirability and gaining a competitive edge in a market catering to an increasing proportion of millennials.
However, owners’ enthusiasm for luxury fittings has traditionally been tempered with affordability concerns — a bottleneck that Bianca and Bianco’s vision hopes to make redundant.
According to Ahid Shaikh, the need for affordable luxury in the fit-out market will only amplify over time, propelled by events and initiatives aimed at drawing a global young talent pool within diverse industries to the UAE. “Opportunity is one of sub-themes of the Expo 2020, underscoring the broader vision of the nation’s founding fathers, to build a city that carries the hopes and dreams of people from all walks of life. The Dubai government’s visa, freehold ownership and regulatory reforms are all aimed at attaining a distinct profile among major global cities, as a land of diverse and plentiful opportunities,” Ahid adds.
As the Emirati metropolis prepares to step into the next chapter in its inspirational success story, the real estate industry must be viewed within a larger macroeconomic framework.