Sunday, December 14, 2008
AFRICAN AMBITION
Hayan Merchant, CEO of Ruwaad Holdings, tells Arabian Business how his company's plans for a spectacular-scale development in South Africa will tap into the continent's immense potential while utilising the lessons learnt from Dubai's rapid transformation.
In the Middle East you have to run as fast as you can just to stay where you are. So claims a smiling Hayan Merchant, CEO of Ruwaad Holdings, while sitting relaxed on a comfortable-looking black couch. "It is obviously a very competitive landscape," he says, "but the landscape has space for a lot of people."
That may be so, but focusing solely on the Middle East property industry isn't on Ruwaad's agenda. Instead, the Dubai-based company has spent the past two years developing blueprints for a huge, multi-million dollar project in Africa.
Amazulu World, a 16,500 hectare-entertainment and destination project, will be the continent's largest development. Located in the northeast of South Africa, Amazulu World will target national, regional and international visitors.
For Merchant, the announcement is the fulfilment of a long-held dream: "It is the single largest development to be initiated in the history of Africa and that in itself sets the stage for what Ruwaad intends to do," he states. "It will hopefully help us achieve a level of differentiation from our colleagues in the industry."
A model of the development, first unveiled at Dubai property exhibition Cityscape, looks impressive. Globular zones of construction float in a sea of green, intersected with snaking blue rivers. A pristine strip of beach extends the entire length of the structure.
Ruwaad's stand stood out among the more run-of-the-mill glitz. However, the Zulu dancers Ruwaad flown over from South Africa perhaps proved more eye-catching than the company's construction plans.
It was a clever publicity stunt, with the Zulus, dancing to a tribal African beat, entertaining the crowds. A startling glimpse of Africa amid Dubai's homogeny of gleaming sophistication, they provided an apt reminder of the continent's raw vitality and promise.
"Africa in general is a fairly untapped continent," Merchant says eagerly. "It's the most resource-rich continent in the world with over a billion people. It is really an untapped market with a lot of potential and that's why developers need to start focusing on the African continent, once they are done looking at the Asian continent. That is the talk of investment groups at the moment and Africa is really the next frontier left for global development."
Merchant claims the project - set up in collaboration with His Majesty King Goodwill Zwelithini kaBhekuzulu, King of the KwaZulu-Natal province in which Amazulu World will stand - will create 200,000 direct jobs in the area.
Ruwaad's management also expects the development to increase tourism in the region by 40 percent.
The project will initially target Africans, before being marketed to other regions. "It has to be very affordable for the African community to gain these experiences at a world-class level," Merchant explains.
According to Merchant, the development will offer a sports village, lifestyle community with hotels, spas and resorts, nature reserve and marina. It will also have an international theme park - a project recently confirmed following Ruwaad's tie-up with Paramount Pictures.
The agreement between the two companies grants Ruwaad the rights to build Paramount entertainment and theme parks across the globe.
The partnership also gives Ruwaad access to Paramount Pictures' catalogue of trade licence and movie rights, for titles such as Titanic, Braveheart, Forrest Gump and The Godfather. "It's different from an amusement park," emphasises Merchant.
Theme parks are a lot more dramatic. Obviously, they are themed, so they are less based on rides and more on experiences. If you look at Disneyland, it's a theme park and not an amusement park because Disney's an experience. People who want to go on 10 rollercoasters would go to an amusement park.
Merchant seems incredibly excited to be working with Paramount, a relationship that he considers "a stamp of quality". He reiterates proudly that Paramount is the only studio based within Hollywood, though the name still appears in rivals' addresses.
"The reason we were so keen on the relationship with Paramount was because of the credibility and history it has," Merchant enthuses. "It is a 98-year-old institution, the first motion picture studio in Hollywood and the most advanced to date." Ruwaad's CEO claims Africa's geographical position between Hollywood, Bollywood and Europe's film industry makes it the perfect location for a movie-based theme park. Yet the theme park is only one of several zones that will make up the entirety of Amazulu World.
"The development has a sports city, a health city, an education city and entertainment city," Merchant says. "It also has a marina, lifestyle city, and so many different zones that are huge in their own right."
The Dubai born and raised CEO acknowledges that Ruwaad's management will use the experience it has gained in the UAE to build effectively in South Africa. Indeed, Merchant contends that South Africa's undeveloped infrastructure is similar to Dubai 10 years ago.
"What the UAE is to the Middle East is what South Africa is to Africa," he declares. "The challenges that the UAE faced 10 years ago will be the challenges that we will probably face in Africa now, because it's not used to handling developments of this nature.
"What we are obviously trying to do - as many of the UAE developers are also doing - is really look at exporting the knowledge that has been gained in this region. What we have achieved here as a region over the last decade is tremendous and UAE developers - the ones looking for international opportunities - are seeing how they can capitalise on the experience they've gained here on the international front."
Merchant denies fear of a Middle Eastern property market slowdown is behind Ruwaad's decision to develop in Africa. He explains that Ruwaad's management has always considered Africa a potential location, adding that breaking ground in the continent doesn't demonstrate a lack of faith in the UAE property industry.
"The market or the public might see a negative market sentiment in the UAE, maybe, and then think another project being announced overseas means that people are trying to divert their interests there. But actually projects like this are conceived over years, so you know our interest in South Africa is not recent," he says rather defensively.
Nevertheless, he admits the changing financial climate necessitates some changes. These include putting extra consideration into planning developments to ensure any market fluctuations result in minimal profit losses.
The increasing cost of construction also has to be taken into account during the planning process, Merchant says: "There has definitely been an increase in construction costs over the past few years, to the point where developers who sold most of their developments without locking down their construction costs are now losing much of their profit.
"But it's all about careful planning and seeing how you cap out your construction costs so you can actually sell at the right price."
The challenges Ruwaad faces in Africa may be different from those in the UAE, but they remain multitudinous. All utilities, such as power and water, need to be coordinated, with the right infrastructure crucial for supporting construction.
Any deviations or setbacks during this stage could cause long delays, according to Merchant. It's this coordination, at this pace, that is required to ensure the project is steaming ahead," he expounds. "And that's what we have been focused on. The government has been extremely positive in ensuring there is a special purpose committee overseeing the pace at which all utilities are built."
Luckily, Ruwaad has an incredibly experienced team, who between them have worked on some of the world's largest scale developments; from Disney World and SeaWorld to London's Canary Wharf and the Pearl Qatar Island.
Merchant's own background is also nothing to sneer at. An executive director and board member of the Dubai 9 Group - the umbrella company of Ruwaad Holdings - he has experience across three continents in business start-ups, corporate restructuring and turnarounds, building strategic alliances and investing targeted equity. "I have been looking at the overall investments that the group has been doing across the different industries and spent time in the various industries where we have businesses," Merchant clarifies.
"But due to the heavy investment levels and what is required of Ruwaad, I've recently been focused more specifically on the development and exploration of Ruwaad's projects."
Merchant graduated from Warwick Business School in the UK and has taken business courses in the US at Stanford, Columbia and Michigan. Having been in the family business (his father owns the Dubai 9 Group) for seven years, he declines to reveal his age but admits he's in his "late-20s".
He may be a relatively young executive, but Merchant has crammed a lot into his life thus far. Before his high-flying career took off, Merchant played professional squash for Pakistan, taking instruction from the coach of a former world number one.
But his sports career hit the buffers when, during an eight-hour daily training session, he damaged his back through over-exercising. The injury still bothers him, although Merchant claims the skills gained from professional sports aid him in his current role.
"It was not about what you win and what you lose," he states fervently. "It is more about how it disciplines you and makes you realise that what you couldn't do six months ago you now can, because you put in the time and prepared yourself.
"Business and life in general are about ensuring you understand everything is achievable, providing you are realistic about your expectations and willing to put in the hard work required."
Because of his injury, Merchant now has to play "less interesting sports like golf" and avoid more strenuous activities. But his natural optimism combined with a deep and abiding faith means Merchant is convinced God has chosen this path for him.
He claims with intensity: "I am a firm believer that everything happens for a reason and that God always has a plan for you. Though you may not realise it, there is definitely a path you have to go down. What I am doing now is very exciting and though golf is not as interesting as squash, it is something I'm beginning to like."
This positive outlook is undoubtedly at least partly responsible for Merchant's affinity with the African culture and people, whose respect and willingness to prosper he finds unique.
"South Africa also has a great vision," he adds. "They've gone through a very tough time over the last few decades and they want to achieve something. They want to deliver something to the world and they will.
"All we are trying to do is support that vision. South Africa has the potential to be the gateway to Africa.
"Over the next five years, a lot of international eyes will be on Africa and the potential it has to offer. And we want to make sure that South Africa and our development are best positioned to accommodate that demand."
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Tags:
Hayan Merchant, Hanif Merchant, Ruwaad, Ruwaad Holdings, Paramount, Paramount , Pictures, Viacom, Rehan Merchant, Aman Merchant, Dubai 9 Group,
Emirates Neon Group, Emirates Outdoor, Emirates Neon, Muhammad Hanif Merchant,
Theme parks, Dubai, UAE, South Africa, Durban, Kwa Zulu Natal, KZN, Versace, Emirates,
Real Estate, Hospitality, Tourism, Stanford Business School, Columbia Business School, Michigan Business School, Center for Creative Leadership, Disney, Sentosa, Hong Kong,Pearl, Qatar, Dubai Festival City, Employment
Monday, November 10, 2008
Hanif Merchant talks about the sustainable benefits of Ruwaad’s ‘Amazulu World’ to KwaZulu-Natal and to South Africa
“This development will have a significant, positive impact on the South African economy and will cause positive ripples in terms of the environmental, tourism and social benefits,” explained Hanif Merchant. Ruwaad’s Amazulu World is expected to create more than 200,000 new jobs, and will increase tourism to the region by almost 40% through attracting millions of tourists.
Hayan Merchant, Group CEO of Ruwaad explained some of its many key elements including Africa’s first world-class internationally branded entertainment theme park, a shopping destination, a sports village development, a lifestyle community and an education and health village – all of which will be the largest in Africa. “These will be developed in addition to hotels, resorts and spas, a marina, a variety of residential offerings, community facilities, and nature reserves,” Hayan Merchant said.
The project by Ruwaad will be a master-planned, uniquely African destination development covering approximately 16,500 hectares of land. “It will be the biggest and most comprehensive development of its kind anywhere in the African continent,” added Hanif Merchant.
Ruwaad recently appointed a number of design, communication and corporate consultants for ensuring the development’s success, which include WATG, Jack Rouse Associates, XFACTA marketing, Deloitte and Cox Yeats.
Tuesday, October 28, 2008
Chairman of Ruwaad, Hanif Merchant and Group CEO Hayan Merchant announce 'Amazulu World' project in South Africa, at Cityscape 2008
Ruwaad, has announced during Cityscape 2008, plans to develop ‘Amazulu World’, a multi-billion dollar themed entertainment and mixed-use destination development on the north coast of Durban in South Africa.
The project will be a master-planned, uniquely African destination development covering approximately 16,500 hectares of land, and will be the biggest and most comprehensive development of its kind anywhere in the African continent.
As a vibrant, harmonious and integrated leisure, living and working environment which is designed to be eco-friendly, minimise the impact on the area’s natural surroundings and embrace the area’s rich cultural and historical heritage, Amazulu World will incorporate many distinctive features to appeal to national, regional, and international visitors.
“Amazulu World, with a size of almost 16 500 hectares is the single largest development to be initiated in African history. We are very proud to be leading this hugely exciting development and to be bringing to investors, residents and tourists in Africa a world-class destination experience, in collaboration with our international partners,” commented Hanif Merchant, Chairman of Ruwaad.
Hayan Merchant, Group Chief Executive Officer of Ruwaad stated; “Amazulu World will have a perfect blend of development zones. Among the key elements are Africa’s first world-class internationally branded entertainment theme park, as well as Africa’s largest shopping destination, Africa’s most comprehensive and advanced sports village development, Africa’s largest lifestyle community and Africa’s first dedicated education and health village; alongside a number of hotels, resorts and spas, a marina, a variety of residential offerings, community facilities, and nature reserves.”
Hayan Merchant explained how South Africa was the natural choice for the destination, especially in terms of the ongoing infrastructural development and predicted economic growth in the country, and described how the development will bring a significant economic uplift to the region. “South Africa does not only offer an excellent year-round climate and some of the world’s most outstanding natural beauty, but recent developments in the country have been pushing it to become one of the strongest emerging markets in the world. The 2010 Soccer World Cup, heavy investment in infrastructure including upgrading railways and expanding ports, and the recent surge of significant foreign investments in telecommunications and tourism projects, will support this development in becoming the Destination Choice of Africa, and into one of the leading destinations in the world,” said Merchant.
The proposed development is directly north of the Thukela River and is located east and west of the N2 national road, a regional path of growth that connects the city of Durban with Richards Bay and the rest of the northern KwaZulu-Natal province. Furthermore, the project will be situated close to the USD $1 billion new King Shaka International Airport.
A development on the scale planned by Ruwaad is expected to have a significant, positive impact on the South African economy. Initial studies indicate that Amazulu World will create more than 200,000 new jobs, and will increase tourism to the region by almost 40% through attracting millions of tourists. Through which, Ruwaad are hoping to provide a large number of opportunities and a sustainable future for the community living close to the project and in the KwaZulu-Natal province in general.
His Majesty King Goodwill Zwelithini kaBhekuzulu, the King of KwaZulu-Natal commented; “Ruwaad has demonstrated to our community its firm commitment to developing a destination that fits inline with our area’s unique natural, cultural and historical character. With confidence, the local community is hugely excited to welcome Ruwaad to our province, and we look forward to the future employment, and economic growth that will contribute to the sustainability of our area; for the inhabitants of today and those for generations to come.”
The Premier of KwaZulu-Natal, South Africa, The Honourable Sibusiso Ndebelecommented that he is confident the Amazulu World destination will pave the way forward for even more foreign investment to come into South Africa and that the destination would “make South Africa a sustainable destination of choice and an economic hub that will boost trade, tourism and development for the entire African continent.”
Ruwaad are moving swiftly to complete the social and community participation procedures for the project, in order to obtain the approvals required from the South African government, necessary to begin the project’s construction. The project is scheduled to be built in multiple phases over a period of 25 years.
Saturday, October 18, 2008
Ruwaad appoints Chief Development Officer
Nicholas Bashkiroff has proven master-planning experience on some of region’s pioneering developments
Ruwaad Holdings announced today that it has recruited a Chief Development Officer।
Nicholas Bashkiroff joins Ruwaad with more than 25 years of comprehensive experience in the pre-development stage of business, gleaned from his extensive work with large development organizations in the United States, Asia and the
Ruwaad Holdings’ group CEO Hayan Merchant, speaking on the appointment said; “We are entering a very exciting period in terms of the development of our first destination, and needed a competent professional with proven experience, to efficiently lead the team responsible for making our unique projects successful.”
“Nicholas is a dynamic and tenured professional who has pioneered the success of many master-developed projects, so we look forward to benefitting from his inimitable skills, as we embark upon this important next phase,” he added.
With his astute sense and sagacity for creating winning developments, Nicholas was Development Director for the Pearl Qatar in
Bashkiroff is a graduate from the Environmental School of Design at the
Hayan Merchant, CEO of Ruwaad represents Middle East and Africa Region at prestigious Forbes Global CEO Conference in September 2007
The esteemed annual conference - this year entitled ‘Drivers of Success’ - which invites high level CEO’s and key business leaders from around the globe will this year be held in Singapore, and will act as a forum for senior business decision makers to meet and discuss new challenges going forward in the global economy.
As head of Ruwaad – a company whose mission is to create iconic destinations around the world – Hayan Merchant recently signed on a prominent $2.5 billion dollar deal with US giant - Paramount, in a long-term partnership that will create the region’s first Paramount Pictures-branded multi-purpose destination. The planned development will incorporate boutique hotels and resorts, large themed retail areas, attractions and adjoining lifestyle properties based around the vast Paramount Pictures’ intellectual property library.
The selection and invitation to the conference for representing the Middle East and Africa region is a testament to the young entrepreneur’s astute business acumen and achievements in the UAE’s investment and development sector.
Merchant will be addressing a niche audience of the top decision makers in the world, and his focus will be “Global real estate: the new location for investment”. Merchant will draw on his business knowledge and experience to demonstrate the UAE and the Gulf region as a strategic location for real estate, hospitality and tourism investment and development.
Major global real estate players will join Merchant in the conference including Kwek Leng Beng – Executive Chairman of the USD 20 Billion Empire of the Hong Leong Group; Lawrence Ho, Chairman and CEO of Melco International Development, Hong Kong; and Kushal Pal Singh – Chairman of DLF India – the largest real estate company in India.
“It is an honor to be invited to this influential conference, not just as an ambassador for Ruwaad, but as an ambassador for the Middle East and Africa region as a whole. The opportunity to interact with so many important and accomplished global business leaders and to communicate the strong fundamentals of our regional economies, will help in further creating awareness of the strong investment and business opportunities available in the region,” Hayan Merchant said
As the only delegate invited from the Middle East property sector, Merchant will be discussing what’s behind the trend of investors looking to put their money into bricks and mortar, and which prime geographical locations are worth investors taking a look at - in discussions which are likely to point to the huge potential for development and investment in the Middle East and Africa region.
Merchant, who has an accolade as one of the youngest, most prominent CEO’s in the Gulf region has pioneered and structured a number of strategic partnerships in various industries, in his capacity as Managing Director of the Dubai 9 Group. The Group is a stakeholder and one of three founding members of Enshaa Holdings, a premier property development holding company which is developing, among other destinations, the Palazzo Versace Resort Development in Dubai and the Palazzo Versace Resort on Australia’s Gold Coast through Emirates International Holdings, and Emirates Sunland.
Other key speakers at the event include the Honorable Prime Minister of Malaysia; Michael Spence - the 2001 Nobel laureate in economics; John Mullen - Global CEO of DHL and Sheldon G. Adelson - Chairman of the Las Vegas Sands Corporation.
Ruwaad and Paramount Licensing announce plans for an Iconic Themed Destination in the UAE.
"Paramount Pictures has released award-winning films that appeal to audiences of all nationalities and ages,” said Metzger. “This universal popularity, combined with Ruwaad’s in-depth understanding of regional markets will translate into a destination that is appealing to everyone – whether for living, working or playing.
Ruwaad recruits new HR Director in face of rapid company growth
Kalidas Rajan, who has over 25 years of industry experience and diversified business acumen in human resources, project management, profit center responsibility and operations, was headhunted to Ruwaad to work directly in partnership with Ruwaad Holdings’ CEO, Hayan Merchant, in order to source and recruit key leaders and professionals that will form the stable base for Ruwaad’s future successes.
“As a business we are entering a pivotal stage of expansion which requires that we ensure our human resources are committed to the business aims and goals of Ruwaad, and our plans for the company’s growth,” Hayan Merchant commented on the appointment.
“Kalidas has a proven track record in developing organisations’ HR, through implementing a number of different initiatives that help to seek out the most suitable candidates for different roles, improving employee rapport and job satisfaction and in turn helping to improve the functioning of entire businesses,” he added.
Kalidas who holds a B.Sc in Mathematics and a postgraduate degree in Management joins Ruwaad with a number of significant career achievements including the restructuring of a chemical manufacturing company - turning it into a cash generating unit, and the successful development and building of infrastructure for a new township within 15 months of start-up. Kalidas also successfully relocated 400 families to a new location; a rare event recognised by the World Bank, which saw Kalidas being invited to present a paper at a World Bank seminar in India.
Ruwaad Holdings last year announced a partnership with Paramount Pictures to develop theme parks across 20 countries including the UAE. The Ruwaad destination that will become a focal point for tourism in the UAE is set to include a Paramount Pictures-branded theme park as part of a planned $2.5 billion destination, envisioned to incorporate boutique hotels and resorts, large themed retail areas and adjoining lifestyle properties.