Set for success

By Rebecca Goozee, Deputy Editor

Iconic projects. Sustainable development. Innovative construction. Hydra Properties is the fastest growing real estate company in the Middle East, blazing a trail of landmark projects across continents in just three years. So what’s next? MENA Infrastructure sits down with Dr Sulaiman Al Fahim to find out exactly what he has planned for the multibillion-dollar company and how he plans to weather the current financial storm.

“One effect of the global financial downturn is that property buyers and investors will become more and more discerning and more sophisticated in their choices. They will ask for more value for their hard earned money”
-Dr Sulaiman Al Fahim, Hydra Properties

Established three years ago, Hydra Properties is one of the region’s fastest growing real estate companies, with many high profile projects underway both in the UAE and internationally with a project up and running in Mexico and deals being worked on in Costa Rica, Panama, Pakistan and Montenegro. When the so-called Donald Trump of Arabian business, Dr Sulaiman Al Fahim, set the business up it was with high expectations. “Through a mixture of distinctive leadership, comprehensive and constantly updated knowledge of the real estate sector, a dedication to excellence and an unwavering commitment to near-perfect customer satisfaction, we have covered all bases and are better equipped to provide not only high-profile real estate but also the whole, wonderful experience of property ownership,” he says with a winning smile.

It was hardly surprising that Al Fahim grew up to be an entrepreneur when you take a look at his early life. Exposed to the business world at a young age he began working in his father’s pharmacy after school from age 11, and aged 14 he began investing in the stock market under his mother’s name before investing in the property market at just 15. When he hit 18 he founded the Sulaiman Al Fahim Group, which financed education and sports in the UAE. After a decade of experience in the real estate business and armed with a PhD in Real Estate Investment and an MBA in Finance and Real Estate from the Kogod School of Business in Washington DC, Hydra Properties was born.

“Before I launched Hydra Properties, I worked out there were five key people I needed to hire,” explains Al Fahim, in his book Brand Builder. “And choosing these five people would be my five most important decisions. For each of the five key jobs, I interviewed 100 people. Yes, it took forever – around 250 solid hours of interviewing people.”

And it is Al Fahim’s determined attitude that has led to the success he has enjoyed with the company. But as the effects of the global economic downturn hit the Middle East, how does he plan to get through these difficult times? “Well, one effect of the global financial downturn on the real estate sector is that property buyers and investors will become more and more discerning and more sophisticated in their choices,” explains Al Fhaim. “They will search the market for properties that will give them the best returns on their investment and ask for more value for their hard  earned money.”

Al Fahim believes that as Hydra Properties offer truly iconic projects, constructed to top-level industry standards, they will have no problem in continuing to attract investors. “With the highest regard to meet the dynamic demands of the customer’s lifestyle and strict attention to detail, property investors will continue to see this whether times are tough or not and this is the distinct advantage of investing in real estate developed by Hydra Properties.”

Innovation and sustainability
In these current tough times innovation becomes even more important to the design and construction process as investors become more meticulous in their choice of investment. Al Fahim believes that the importance of having constant innovation as an integral component of an overall business strategy cannot be emphasised enough. He says that presenting innovative designs and construction techniques to the market is one of the few ways to make a distinction and become recognised as an important player in the real estate market, rising above the competition.

“If you are a property developer and you do not challenge yourself to present a unique value proposition to your customers then what good have you done? If you do not innovate and exercise creativity and resourcefulness, you will just be one of many. If you want the market to know who you are and what you can accomplish, you have to show them exactly what you are capable of,” says Al Fahim.

That said, Al Fahim is keen to emphasise that Hydra Properties do not innovate simply for the sake of innovation. “We develop properties and we reform what requires reforming to remain competitive,” he says. “We know the demands of the people and we try, to the best of our ability, to satisfy these demands. We are aware of what’s happening in other business sectors as well, and so we try to incorporate this knowledge into our project designs.” 

And indeed an important aspect within innovation is sustainability. All projects in the Hydra Properties portfolio consider the environment and sustainability in both the design and construction, as Al Fahim maintains that sustainable development is an important consideration for the company. He believes that a combination of escalating energy prices, increased fear of inducing damage to the environment and the need to provide a healthy and comfortable setting where people can live, have gained significant importance in recent years.

“If there is a time to act on saving the environment and, at the same time, achieve progress without harming our natural surroundings, it is now. This is something that cannot be put on hold because sooner or later, the effects will come back to us,” he says. “A commitment to sustainable development is a significant investment that Hydra Properties makes with every project that it launches to ensure that we and many generations after us will have a bright future and a balanced eco-system.”

Al Fahim is keen to point out the new Leadership in Energy and Environmental Design (LEED) certification, which encourages and accelerates global adoption of sustainable green building and development practices through the creation and implementation of universally understood and accepted tools and performance criteria. “So if creating ‘green’ buildings and maintaining a sense of the environment is important in other parts of the world, it should be crucial for our area,” he says. “With the prevailing climatic conditions, energy saving becomes a must, as does proper heat insulation and the provision of green areas.” 

Al Fahim believes that as the region is, or rather was, in the midst of a construction boom, it is only right that the many buildings, towers and skyscrapers that have been constructed over the past few years, make logical consideration for environmentally friendly construction standards, and make those considerations now, rather than years after the projects have been completed. “Green building standards should be integrated from as early as the planning phase of a project to be spared from the added costs and inconvenience of dealing with it later.”

Projects
A dedicated philosophy to sustainable and environmentally friendly practices have helped the real estate giant carved quite a niche for themselves as a socially committed company. It was only a matter of time before Al Fahim took his ideas to the global market. The first international development, Hydra Waves, in Mexico was a landmark in Hydra Properties transformation from a local UAE company into an international player in the area of real estate development.

Launching Hydra Waves took considerable efforts from the Hydra teams, both at the UAE headquarters and on the ground in Mexico. “Unveiling Hydra Waves was part of our strategy for expansion on international level,” explains Al Fahim. “After accomplishing all we did in the UAE, which at the time was going through a real estate boom, it was time for the company to expand internationally.” For Al Fahim, business considerations dictated that property was developed outside the UAE. “Capital, as you know, will be attracted to areas where stability, security and growth potential exists. Business should be ready to exploit every possible opportunity. That’s why we see investments by big names in the Levant, North Africa, other GCC states, the Indian sub-continent and elsewhere.”

Mexico is the second largest foreign direct investment recipient among developing countries. Foreign direct investment in Mexico surpassed US$119 billion between 1995 and 2002. “Mexico has a strategic geographical location with direct ‘just in time’ access to the North American market, with access to world-class inputs and technology. Mexico also benefits from the largest network of Free Trade Agreements, which grants preferential access to markets in North America, Western Europe and to 10 emerging markets in Latin America. It also boasts a skilled and competitive labour force.

“In the last few years, Mexico has implemented reforms on its Foreign Investment Law and has subscribed to several Free Trade Agreements and Bilateral Investment Treaties. For us, it turned out that the best investments in Mexico are in hotels and real estate development, on naturally attractive areas that are considered major tourist destinations.”    

Investment
Al Fahim sees foreign investment as a vital component of Hydra’s continued success. He believes that as an individual investor you should never put all your eggs in one basket because all free markets will experience a cycle of boom and bust. “You need to diversify your portfolio so that it can withstand any unforeseen circumstances, which is similar to Hydra Properties’ approach to real estate and property investment in that if a downturn hits one market, our developments in other places and will remain safe and unscathed.

“We launch projects abroad because we acknowledge the fact that, apart from the UAE, there are other destinations that can offer strong investment returns for us and our clients. This is ultimately what we are after – for our customers to grow as we grow.” 

In terms of the future Al Fahim is optimistic that growth will continue for the company. Embarking on global expansion and crossing continental borders in Mexico, as well as in Libya, with the Hydra Tripoli Tower, which is set to become the jewel in Tripoli’s skyline, Al Fahim is set for success. “This is just the beginning,” beams Al Fahim. “We are geared for success and we will maintain our status as an international property developer by launching more developments abroad, but at the same time revolutionising the development of our own country.” And I have no doubt that he will succeed in everything he puts his mind to.

Hydra Twin Towers, Dubai
The Hydra Twin Towers project at Jumeirah Village, Dubai was launched in July 2008. The towers, of 32 storeys each will be in between Meadows and Emirates Hills on one side and Jumeirah Golf Estates on the other. One tower will be an exclusive residential tower while the other will have luxurious hotel apartments, offering unrivalled facilities the project will include shops, spas, gyms, cafes and restaurants. Completion is expected by early 2010.

Golf Walk, Abu Dhabi
Designed in two phases the Golf Walk project will be home to 27 low-rise residential buildings looking on to a world-class, 18-hole golf course designed to PGA standards. Golf Walk will offer lust, verdant expanses, airy French-style courtyards and sprawling gardens. Smart home technology plus recreation areas and 24-hour security complement the architectural fusion of traditional Arabic and futuristic design.

Hydra Heights, Abu Dhabi
Located in Abu Dhabi’s most desirable waterfront city, the City of Lights on Reem Island, is a breathtaking community set amidst a waterfront oasis. The project consists of three towers, each rising to 30 floors with eco-friendly concepts and smart home technologies. Along with apartments are a range of shops and other outlets. Construction has commenced on the project.

Hydra Waves, Mexico
Surrounded by the picturesque Sierra Madre Mountains, the sunny palm-lined beach city of Mazatlan on the North Pacific Coast of Mexico is now home to Hydra Properties first international project, Hydra Waves. The development will feature a 26-floor five-star hotel with 500 rooms a group of 18-storey apartment buildings with 1000 apartments, each with a sea view, as well as a 1000-seat conference centre, shopping centre and ballroom. It was announced that 40% of the pillar work was completed in July 2008.

Tripoli Tower, Libya
The Hydra Tripoli Tower is in the heart of Libya’s capital. The mixed-use development will offer the comfort of discrete and opulent hospitality services, state-of-the-art modern offices and incomparable leisure facilities. Thirty of the 45 floors are dedicated to commercial and office space, while the remaining 15 floors are dedicated to a hospitality facility. The ground floor will feature a variety of retail stores, restaurants and cafes.

The celebrity CEO

2008 was a big year for Sulaiman Al Fahim, as he extended his global notoriety. Having brokered a US$312 million acquisition of Manchester City by Abu Dhabi’s United Group for Development and Investment in September, he spent the rest of the year being approached by A-list Hollywood executives looking for funding.

And as his reality TV show, the Hydra Executives, is currently being aired in the US it seems his public profile will increase making 2009 another huge year for the Emirati. The show features 16 candidates, eight from the US and eight from the UK, who are invited to Abu Dhabi to participate in a 16-week real estate competition. Al Fahim is the key player and host of the programme who judges the contestants throughout the many assignments they are given. Throughout the programme the contestants work on and develop an extensive personal business plan based on their idea for the real estate concept that won them a place on the show. At the end of the show the lucky winner will have their business venture funded to the tune of US$1 million.

Vision

Hydra Properties’ vision is focused on introducing an avant-garde definition to the concept of real estate development locally and around the world. Key to every project that Hydra Properties conceives of:
• The importance of the location is tremendously emphasised to ensure that the development is accessible to residents and offers the availability of basic services
• Every project's design must reflect its identity, including its inhabitants, what it plans to do for the resident community and, finally, what place it will take in the general society
• Consideration of the available infrastructure is valued thoroughly so as to ensure comfortable and convenient living standards
• Strict deadlines and delivery times according to a publicly announced time schedule must be adhered to
• Environmental considerations are primary to the approval of any project that Hydra green-lights