#36 - July 2016

ISSUE THIRTY SIX - JULY - SEPTEMBER 2016

ISSUE THIRTY SIX - JULY - SEPTEMBER 2016

A golden goose?

GULF INVESTORS COULD FIND INVESTMENT OPPORTUNITIES IN WAKE OF BREXIT

A GOLDEN GOOSE? A CPI Financial Publication

PROPERTY INVESTMENT SEYCHELLE'S EDEN ISLAND 38 Issue 36 Cover.indd 24

EXCLUSIVE INTERVIEW ACTION ICON DOLPH LUNDGREN 36

MOTORING LAMBORGHINI'S JEKYLL AND HYDE 30 7/17/16 4:37 PM

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CONTENTS

Editor's

LETTER

ISSUE THIRTY SIX - JULY - SEPTEMBER 2016

Greetings, all Welcome to the 36th issue of WEALTH Arabia. I hope you enjoy what is certainly our finest issue yet.

For the last few months, as we toiled away on the issue you are now holding, one big question mark loomed above our heads like a confused security guard in Metal Gear Solid—what was the UK going to do? Now that we know that the will-they-won’t-they divorce between Great Britain and the European Union is really going to happen, the question now becomes, what happens to the rest of us? According to the many experts we spoke to, this broken egg could turn out to be golden for some, as many investment opportunities will pop up as a result. See pages 10-15 for more.

We were also lucky enough to speak with Dolph Lundgren, the star of The Expendables series, Universal Soldier, Ivan Drago in Rocky IV, and much more.

If you’ve watched an action film in the last 30 years (especially one that you found at the local video store), you’ve enjoyed the work of Dolph Lundgren. And speaking with him was a sincere pleasure— he’s humble, matter-of-fact, and plain-spoken. You can tell why he hasn’t always found himself at home in the world of glitz and glamour, but that doesn’t mean he doesn’t have a taste for the finer things. Read more on page 36.

Till next time,

William Mullally

OPINION

06

WEALTH Arabia

10

Summit 2016

NEWS & ANALYSIS

08

The latest analysis from the investment world

INVESTMENT

10 14 16

Keep calm and carry on

Brexit’s impact on the Gulf

18

Room to lever up in GCC bond market

PRIVATE BANKING

18

Private banking in GCC set to thrive

26

WEALTH MANAGEMENT

22 28

The diamond standard Compound interest

PROPERTY

26

Dubai luxury property market ‘alive and kicking’

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CONTENTS

ISSUE THIRTY SIX - JULY - SEPTEMBER 2016

MOTORING

30

30

Lamborghini: Jekyll and Hyde

GOOD TALK

36

Dolph Lundgren: he comes in peace

Eden Island

LUXURY PRODUCTS Goop: luxury with a story

Chief Executive Officer ROBIN AMLÔT robin@cpifinancial.net Tel: +971 4 391 3723 EDITORIAL editorial@cpifinancial.net

ADVERTISING sales@cpifinancial.net

Managing Editor GEORGINA ENZER georgina@cpifinancial.net Tel: +971 4 391 3728

Business Development Manager WEALTH Arabia DANIEL BATEMAN daniel@cpifinancial.net Tel: +971 4 3752526

Editor, WEALTH Arabia WILLIAM MULLALLY William@cpifinancial.net Tel: +971 4 391 3718

LUXURY FASHION

38 44

Chairman SALEH AL AKRABI

48

LUXURY RESTAURANTS

48 50

Do it with Sass

CHAT

Sitting down with a restaurant mogul

38

EDITORS SARAH OWERMOHLE sarah@cpifinancial.net Tel: +971 4 375 2527 JESSICA COMBES jessica@cpifinancial.net Tel: +971 4 364 2024 NABILAH ANNUAR nabilah.annuar@ cpifinancial.net +971 4 391 3718

Sales Director OMER HUSSAIN omer@cpifinancial.net Tel: +971 4 391 5419 Business Development Managers NIKHIL MATHUR nikhil@cpifinancial.net Tel: +971 4 391 3717

MOHAMED MAKSOUD CONTRACT mohamed@cpifinancial.net Tel: +971 4 391 5320 PUBLISHING EDITOR SARAH SPENDIFF NAPOLEON sarah.spendiff@ ESTAMPADOR cpifinancial.net Tel: +971 4 3913729 napoleon@cpifinancial.net Tel: +971 4 391 4680 Contributors Isla McFarlane Head of Contract Tom Paye Publishing & Business Harry Tregoning Development Sean Evers VINOD THANGOOR Philipp Good vinod@cpifinancial.net Hamzah Shalchi +971 4 391 3725 Chief Designer BUENAVENTURA R. JALUAG, JR. jun@cpifinancial.net Senior Designer FLORANTE MAGSAKAY florante@cpifinancial.net Creative Designer ANA MAKSIĆ ana@cpifinancial.net Online Editor MATT AMLÔT matt@cpifinancial.net Tel: +971 4 391 3716

London Bureau ISLA MACFARLANE isla@cpifinancial.net Tel: +44 7857 429476 Finance Manager UMAIR AHMED KHAN ACA umair@cpifinancial.net Tel: +971 4 391 3727 Data Analyst NADINE ABOUZEID nadine@cpifinancial.net

Administration & Online Content Manager Subscriptions SIYA PAINAYIL enquiries@cpifinancial.net siya@cpifinancial.net Tel: +971 4 391 4682 Tel: +971 4 391 3722 Tel: +971 4 391 3709

ISSUE THIRTY SIX - JULY - SEPTEMBER 2016

ISSUE THIRTY SIX - JULY - SEPTEMBER 2016

Head Office P.O. Box 502491, Dubai Media City Dubai, UAE Fax: +971 4 390 9756

A golden goose?

GULF INVESTORS COULD FIND INVESTMENT OPPORTUNITIES IN WAKE OF BREXIT

A GOLDEN GOOSE?

WEALTH WARNING!

A CPI Financial Publication

PROPERTY INVESTMENT SEYCHELLE'S EDEN ISLAND 38

Sales Director JON DESPRES jon@cpifinancial.net Tel: +971 4 433 5321

EXCLUSIVE INTERVIEW ACTION ICON DOLPH LUNDGREN 36

MOTORING LAMBORGHINI'S JEKYLL AND HYDE 30

Remember, if you wish to act on any of the information you read in WEALTH Arabia, consider taking independent advice first. WEALTH Arabia is written for a general audience and the information contained herein may not be appropriate for your personal circumstances.

Don’t miss your copy of WEALTH Arabia. Subscribe now, full details at: www.wealtharabia.net and on Twitter @wealtharabia.

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www.cpifinancial.net Registered at the Dubai Media City Printed by United Printing & Publishing – Abu Dhabi, UAE © 2016 CPI Financial FZ LLC All rights reserved. No part of this publication may be reproduced or used in any form of advertising without prior permission in writing from the Managing Editor.

WWW.WEALTHARABIA.NET

7/19/16 2:49 PM 2016Finan

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OPINION

A MEETING OF THE MINDS Y

ou know, we don’t get together enough these days.

This November, I’d like to change that. After so many years, I think it’s finally time we all get together in one place. That’s why we at CPI Financial are launching the WEALTH Arabia Summit 2016.

Some have you have probably been to our other events. The Banker Middle East Awards and the Islamic Business & Finance Awards have been going strong for over a decade, but with WEALTH Arabia’s foray into the event space, we knew we had to do something different. With WEALTH, an awards wasn’t what we had in mind.

The WEALTH Arabia Summit 2016 will be an invitation-only forum about knowledge and networking, not accolades.

It is the premium forum bringing the region’s highest earners, leading single and multi-family offices and service providers

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together. For GCC HNWIs and their representatives, it will offer an intimate environment for a focused discussion of key new drivers shaping the future of the industry, with vetted invitations making sure that only those truly worthy of attendance will be the room.

Most importantly, it will connect HNWIs to the right people, and provide key industry information and actionable investment advice to HNWIs from only the most trusted key investment executives.

If you are interested in attending, or have any feedback on what you’d like to see at the forum, send an email to me at william@cpifinancial.net. We can’t guarantee you a spot, but we would love to discuss this more.

I can’t wait to see you all there. It’s about time we did this.

William Mullally

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7/19/16 2:49 PM

WEAL

Not your copy?

WEALTH Arabia is a controlled circulation magazine delivered directly to specific, named HNWI individuals across the GCC. Institutions may also arrange bulk purchase orders of the magazine and its supplements to circulate among internal and external stakeholders.

If you wish to arrange regular bulk deliveries, please contact subscriptions@cpifinancial.net for terms.

To receive your own copy, please email subscriptions@cpifinancial.net with your following information stating ‘WEALTH Arabia’ magazine NAME POSITION COMPANY ADDRESS LINE 1 ADDRESS LINE 2 ADDRESS LINE 3 PO BOX ZIP/POSTAL CODE COUNTRY

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02/08/2015 7/17/16 4:17 10:51 PM

NEWS & ANALYSIS

Trevor Cullinan, S&P Global Ratings Analyst

G

old’s momentum has continued, so much so that investors have started to look at other metals for value. Will gold’s future remain bright?

Ole Hansen, Head of Commodity Strategy, Saxo Bank

B

etween now and 2050, the proportion of elderly in Saudi Arabia will increase 15 per cent from three per cent. How will that weigh on the Kingdom?

Age-related Government expenditure on pensions and health care would rise to 14 per cent of GDP by 2050 from six per cent today by our analysis. This could lead to a rapid increase in Saudi Arabia's net debt ratio to 340 per cent of GDP by 2050 if Governments were to take no further policy action," said Cullinan. "The sovereign credit ratings on Saudi Arabia would decline to speculative-grade in such a no-policy-change scenario, which is not our base case."

"Owing to growth in the young population, subscribers to Saudi Arabia's generous pension system have been outstripping growth in the number of beneficiaries, contributing to the overall financial health of the system, However, over time, we believe Saudi Arabian Governments will likely consider demographic reforms to the system to ensure its sustainability.”

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Despite the already elevated demand and positioning in precious metals, the overall picture remains supportive. Slowing growth, the potential for an even easier monetary policy and record-low bond yields have all helped create strong and ongoing demand from real money investors.

"Positive gold momentum also continues to attract hedge funds and CTAs through futures. These investors are more responsive to adverse movements but having seen support hold at $1,305/oz these traders have so far seen no reason to ease up on what is already a record long position. "

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Norbert Rücker, Head Commodities Research, Julius Baer

W

hat will the Fed do? After long planning to continue to slowly hike interest rates, will global conditions derail that? It looks increasingly likely.

Christopher Chu, Fund manager – Asian equities, UBP

A

re oil prices on the way back up? Maybe not at the rate that some would hope, but there is reason to at least expect the market to not dip further once more, despite the glut of supply.

Oil posted big losses after a disappointing US storage report. Despite the significant supply outages including Canada’s wildfires and Nigeria’s pipeline attacks earlier this year, the oil market’s massive inventory overhang persists. Bloated gasoline and diesel stocks in North America, Europe and Asia raise concerns that refiners could slow oil purchases in the coming weeks in light of soft margins. Moreover, supply disruptions are temporary and a double-edged sword. Canadian oil sands production is swiftly rebounding and getting back on track to its long term growth path. Libya increasingly garners attention as the recent political progress could pave the way for a partial restoration of the civil-war torn country’s oil exports. Hedge funds and other investors have begun to unwind their excessive long positions which should weigh on oil prices going forward.

With prices having eased towards $45 per barrel we upped our view from cautious to neutral. Oil’s most likely path going forward is range-bound around current levels. We expect no sustained price recovery and see price range-bound around $45 per barrel.”

In our opinion, the Federal Reserve is more likely to pause its current rate cycle, representing its second change when the US central bank suggested that the economy could now only withstand two hikes from an earlier expectation of four. Following weaker than expected jobs numbers in May and further USD strengthening from market volatility, Fed Chairwoman Yellen would probably prefer to maintain interest rates, with the earliest rate hike in December after the US Presidential election. The European Central Bank and the Bank of Japan are likely not only to expand their quantitative easing programme, but also to have a greater tolerance for interest rates slipping further into negative territory.

This accommodative policy backdrop should portend well for emerging markets that have traditionally traded at higher risks premiums relative to developed markets.”

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BRITAIN VOTED TO LEAVE THE EU BY 52:48 PER CENT IN A HISTORIC REFERENDUM ON 23 JUNE, MAKING IT THE FIRST COUNTRY TO LEAVE THE UNION IN ITS 60-YEAR HISTORY.

KEEP CALM and carry on

THE UK’S DECISION TO LEAVE THE EU HAS WOUNDED FINANCIAL MARKETS AROUND THE WORLD, BUT THERE ARE OPPORTUNITIES FOR GULF INVESTORS WHO CAN HOLD THEIR NERVE 10

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ritish MP Michael Gove sneered that the UK had “had enough of experts” as over 17 million voters chose to ignore every economists’ dire warning and march the UK off a financial cliff. On the dawn of the EU referendum result, Britons awoke to find that, overnight, they had become poorer than France. In less time than it takes to boil a kettle, the FTSE fell more than eight per cent. The sterling plunged to a low not seen since 1985 before most Britons had even had a chance to drink their morning tea.

The only certainty the UK’s Vote Leave campaign promised was uncertainty, and

it delivered in spades. Markets went into freefall and billions evaporated in the volatility. High Net Worth Individuals, who owe much of their fortunes to the financial services industry, were especially hard hit.

The world’s 400 richest people had $127.4 billion sliced off the value of their assets in the immediate aftermath of the result, according to Bloomberg data.

DON’T PANIC!

In times such as these, keeping a stiff upper lip is easier said than done and many investors will be wondering where to go from here.

However, if people are more willing to take expert advice than they were on 23 June, now is not the time to panic—now is the time to pick a long-term investment strategy and stick with it.

“Amid the short term volatility, retail investors should be very careful about trying to time the market and stay focused on company fundamentals of profits and cash flow growth,” Russ Mould, Investment Director at AJ Bell, told Wealth Arabia.

“Ultimately now is not a time to make investment decisions based on short-term volatility and speculation. People should ...cont. overleaf

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MARKETS WERE ROCKED IN THE IMMEDIATE AFTERMATH OF THE UK'S VOTE.

cont. from page 11

only take action if it is aligned with their long-term investment goals.”

However, there is always opportunity in crisis. As shares in British banks plummeted on 24 June, gold surged 6.5 per cent to a high it hadn’t seen since July 2014. In sterling terms, gold appreciated close to 20 per cent in two days. “On Friday last week [24 June] gold jumped a massive $100, but profittaking brought prices back to the $1,300 range,” said Nikolas Xenofontos, Director of Risk at EastMarkets. “What is interesting about the rise in gold is that it pushed out of a predictable price range so we may see higher highs. Along with other precious metals, the fundamentals are providing a lot of support for gold.”

According to Schroders, gold remains an under-owned hedge against global central bank credibility and under-appreciated global

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risks, particularly from China. Within the gold investment universe, Schroders believes that gold equities in particular offer a compelling investment case, and should outperform the price of gold over the coming years.

KEEP CALM AND INVEST IN COMMODITIES?

Commodities in general defied expectations and performed well in the wake of Britain’s shock decision. “Markets and currencies can be extremely sensitive to political events, as we've seen time and again. What has seemed interesting in relation to Brexit is the surprising lack of volatility that commodities have shown. After years of tumbling prices and sensitivity to even small-scale events around the globe, commodities are holding up rather well in light of the UK's decision to leave the EU,” said Xenofontos.

Agricultural commodities seem to have largely shrugged off the politics of Brexit, although all commodities strengthened against the sterling after its sensational fall on 24 June and further fall on 5 July.

WTI Oil and Brent Crude showed greater vulnerability. Both took a few hits on the day of the EU referendum result, spreading ripples of nerves about economic growth; but both have since rallied and retracted most of their losses, although they were still trading below pre-referendum levels at the time Wealth Arabia went to press.

“While it's still early days in the new postBrexit era, and much will change over the coming years, so far as commodities are concerned the initial reaction has been far less wild than many feared it could be prior to the referendum,” said Xenofontos. “Overall, the situation remains surprisingly positive, with commodities proving

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INVESTMENT

more resilient than expected in the light of such a shocking political move by the UK. It's certainly an encouraging starting point for the coming two years, as the country's Brexit negotiations really get underway.”

BUILDING FORTUNES

Even stocks that performed badly may present opportunities for investors. Some housebuilders saw almost a third of their value demolished overnight, and yet retail investors have been queuing up to buy their shares.

“Retail investors have been taking advantage of buying opportunities following the dramatic fall in share prices,” said Mould. “In the immediate aftermath of the vote, trading activity on our investment platform was five times normal volumes. Approximately two thirds of these trades were buys, compared to one third sells.”

Housebuilders and banks dominated the top 10 most frequently purchased stocks. Indeed, shares in property developer Taylor Wimpy, which triggered the London Stock Exchange’s circuit breaker when it plunged 20 per cent on 24 June, were the third most popular buy.

Fellow developers Persimmon and Barratt Developments also featured in the top 10.

“These figures suggest investors are taking advantage of short-term volatility to snap up some bargains,” said Mould.

“Market volatility driven by sentiment rather than company fundamentals is normally short-term and many investors seem to be focusing on what really drives share price valuations over the long term—profits and cash flow growth.”

Although vulnerable to dips in confidence, market fundamentals are in housebuilders’ favour. The UK’s decision to leave the EU has not altered the fact that people need a roof over their heads and the UK suffers from a chronic housing shortage. The UK has been undersupplying houses for years, and needs to build around 200,000 new homes a year to solve what has escalated into a housing crisis. It currently builds around 90,000.

“Interest rates remain at historically low levels and could potentially drop further,” said Steve Turner, spokesperson for the House Builders Federation in UK, told Wealth Arabia. “As such, the underlying demand for new homes remains extremely strong and builders will continue to scale their output to meet this demand.”

HOUSE OF FUNDS

Housebuilders’ developments are an even more promising investment, especially for those not standing on British soil. Thanks to the fall in sterling, many overseas buyers can effectively enjoy a 10 per cent discount. “Here at Property Frontiers we’ve experienced a noticeable surge in enquiries from overseas buyers in our off-plan properties since the Brexit vote,” Ray Withers, Chief Executive Officer of Property Frontiers, told Wealth Arabia.

“The pound’s plummeting value in the wake of the Brexit vote meant that foreign investors could suddenly enjoy superior buying power in terms of off-plan property in the UK,” he added. “Buying when the exchange rate is so favourable means that they can pick up an off-plan home now at a bargain price, then sit back and allow the market to settle in the wake of the Brexit decision while the property is built.”

Not only are foreign investors getting more for their money, but opting for off–plan means that any short-term price fluctuations in the property sector can sort themselves out by the time their off–plan purchase has been constructed.

Although the same discount applies to ready-made property for foreign investors, it seems to be a less appealing option.

Prices in the prime London property market, traditionally a go-to investment for High Net Worth Individuals in the Gulf, were already softening in the run up to the EU referendum.

Arguably, the prime London market has been slowing down since mid-2014 for a number of reasons, most of which have nothing to do with the UK’s decision to leave the EU; the threat of a mansion tax, the imposition of higher rates of stamp duty as well as an additional rate for investors and second home buyers have all conspired to dampen market sentiment.

However, Britain’s decision to leave the EU will shake the confidence of a market that relied on being a safe choice. “One of the main attractions for overseas investors, particularly from outside Europe, was that London represented a safe haven and a good place to park assets,” Mark Lawrinson, Portico London's Regional Director, said.

“Given current levels of uncertainty, it's hard to make the case that this is still true, and there is a risk that this may diminish investment appetite.”

Winston Churchill once said that the best argument against democracy was a five minute conversation with the average voter.

However, a better argument could be market data from 24 June. Perhaps it is time to start listening to experts again, and their message is clear: keep calm and carry on.

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GREAT BRITAIN AND THE UAE HAVE A TRADITIONALLY STRONG RELATIONSHIP.

Brexit’s impact on the Gulf

THERE ARE BOTH DIFFICULTIES AND SILVER LININGS TO THE UK’S MOVE TO EXIT THE EUROPEAN UNION, WRITES SEAN EVERS, MANAGING PARTNER, GULF INTELLIGENCE 14

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INVESTMENT

T

here are many layers of autopsy to dissect on the surprise vote to exit the UK from the European Union (EU) on the 24 June, including the knock-on impact on global energy markets and the new economic opportunities for the Gulf countries. The immediate impact of the UK’s squeezed 52 per cent majority to leave the EU was swift and significant. Many financial institutions and investors who had bet against a leave vote were blindsided and the FTSE 100 closed the day at 3.2 per

cent lower and the pound sterling fell to its lowest value since 1985.

What short and long-term impact will the divided scenes playing out in the UK’s political corridors have on the UAE? The Central Bank of the UAE said that, “Due to the limited interconnectedness between the UAE and UK financial systems, there are only few channels through which uncertainty about future UK and EU relations could affect the UAE financial institutions.”

Yet, on the 26 June, the Dubai Financial Market General Index opened 4.7 per cent lower—the sharpest fall in a single day of trading in six-months. Plus, the uncertain outlook created by Brexit depressed the already low oil prices for nearly a month, which does little good for the robustness of the UAE and wider Gulf ’s financial markets. However, the UK’s decision to leave the EU has only had a short-term impact on the oil market. The oil price has pushed above $50/barrel in a rare move this year as concerns over the larger-than-expected drawdown in US crude inventories and potential operational crises in Norway and Venezuela take centre stage.

Sectors in the UAE that are likely to be most affected on a longer-term basis by the UK’s political shift include real estate and tourism, as a weakened pound sterling and Euro negatively affect holiday spending and property purchases in both the UAE, UK and wider Europe. The pound sterling has already shown signs of recovery, which is not entirely noteworthy considering the significant potential for upward movement after a three-decade low just ten days ago. Still, the gradual recovery of the currency suggests that the domino effect of falling share prices on the UAE’s financial markets is temporary and not the start of a recession in the UK. Campaigners fighting to remain within the EU had flagged this up as a particular concern and it would and still could have considerable ramifications on the UAE’s economy and trade market.

But, while the UK’s economy remains stable, Brexit will remain good news for the quarter of a million British expatriates living in the UAE who benefitted from the weaker pound sterling against the dirham. It is not such good news for the minority of British expatriates who are paid in pound sterling for their work for British-based companies, with such employees likely seeing a sudden and disproportional drop in wages. Falling wages combined with the high cost of living in the UAE could force some highly-skilled expatriates to pack up and head home, which would not be welcomed news for the UAE’s economic growth plans. Dubai, for example, hopes to emerge as a pivotal hub in the global economy by 2020—local and foreign expertise forming the crux of the strategy.

Brexit has the potential to create a new local and global identity for the UK. While the UK’s leadership is unclear— exacerbated by Prime Minister David Cameron’s resignation on 24 June— there is also a silver lining. The UK, a country long beset by political apathy, has spoken and economic growth is on the horizon as long as the country sets aside its divided opinions. Brexit could provide a golden opportunity for the UAE and fellow Gulf countries that want to deepen their relationship with the UK—a globally respected ally in the West—and participate in economic areas previously closed off to them. For example, GCC countries have been attempting to negotiate Free Trade Agreements (FTA) with the EU since the late 1980s, which the UK may now be more willing to facilitate on a bilateral basis. The UAE and wider Gulf can gain from the UK’s position as one of the world’s strongest economies by supporting the country as it deepens its considerable clout with international and multi-lateral institutions. Will the UK’s phoenix rise from the ashes and if so, what opportunities can the UAE and wider Gulf seize upon?

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INVESTMENT

Room to lever up in GCC bond market

INCREASING LEVERAGE IS EXPECTED, BUT THERE ARE STILL MANY UNKNOWNS, WRITES PHILIPP GOOD, HEAD OF PORTFOLIO MANAGEMENT AT FISCH ASSET MANAGEMENT

T

he GCC’s sovereigns and corporates have, for some time, come under increasing pressure from credit ratings agencies. This pressure is set to grow as debt obligations in the region increase. As that process develops, it will be new bond issuances that enhance diversity in the region, improve liquidity and lead to a broadening of the Middle East’s fixed income investor base. Findings

by Fisch Asset Management’s subsidiary, Independent Credit View (I-CV), whose services are commissioned by investors as opposed to issuers, have clearly indicated that corporate governance in the Middle East needs to improve, particularly in regard to transparency surrounding the use of proceeds. This improved transparency will, in turn, require improved dialogue between issuers and investors. So, where is the region now, and where is it heading?

There is no doubt that Middle East countries have the capacity to lever up.

The region has the highest average ratings globally, but budget deficits need to be addressed through a combination of investment and reform. The funding of these deficits can be achieved at a sovereign level or among government related entities.

Privatisation will also play a key role. This is an exciting time for the region’s markets and the current scenario offers plenty of

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interesting opportunities for investors.

Corporate governance still has room for improvement, and this will have an impact on pricing power–open dialogue with investors will positively affect credit assessments for issuers.

We recently reviewed Emirates Airline, who I-CV rated at BBB-/Marketweight for the issuance of senior unsecured debt. The report highlighted Emirates’ longstanding track record in successful airline operations as a strength, as well as Dubai’s ideal operational and regulatory environment. Key weaknesses included geopolitical and economic risks, along with oil price erosion. Although the market prices the 4.5 per cent Emirates Airlines 2025 issue with a risk premium of 230 basis points over Treasury (and this is in line with BBB Emerging Market Corporate Credits), we do not see much relative value, and we are therefore not currently invested.

Other leading GCC issuers are also under scrutiny. Saudi Telecom Company (STC), for example, was recently rated at A- by I-CV. Assessment highlights included its high and stable margins, free cash flow, pursuit of a regional expansion strategy, and the stability that is provided by state ownership. While the current low oil prices that have battered the Saudi economy

do not seem to have impacted STC, that situation could change very rapidly. It has also been noted that up to 20 per cent of outstanding receivables could be classified as doubtful debts, which is a significant concern for any investor.

In March, Moody’s Investors Service said, unsurprisingly, that lower oil prices would slow growth and increase budget deficits in GCC countries in 2016. Last August, an I-CV credit analysis for Dubai’s DP World rated the port owner and operator at BBB (Marketweight), noting that despite its efforts to diversify it remained dependent on the UAE’s economic development. With the UAE’s economic growth expected to slow as a result of low oil prices, the proximity of companies such as DP World to unstable geopolitical regions in the Middle East presents commercial risk.

Such commercial risk is not carried by corporates alone, but by sovereigns too. I-CV’s latest review for Kuwait rated the country at A. Kuwait is endowed with abundant natural resources, large oil reserves and high per capita income, as well as a relatively robust fiscal position, a well-endowed sovereign wealth fund and large foreign currency reserves. However, important and glaring weaknesses have impacted Kuwait’s credit rating. These are,

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namely, limited economic diversification and dim growth prospects due to the oil price collapse. Oil is responsible for 90 per cent of Kuwait government revenues, and the country operates a generous welfare state largely financed by oil income. Diversification should now be regarded as a necessity, not a luxury.

But should we be comparing the GCC region with Latin America? Argentina’s recent experience, for example, suggests that there are obvious opportunities for GCC economies to exploit the sovereign debt market. Latin America’s third largest economy has just sold $16.5 billion of sovereign debt in its first international bond issue since defaulting in 2002. The deal’s underwriters received nearly $70 billion in orders for the bonds. This ‘emergency’ bond was issued by a government in a far worse fiscal position than any country in the GCC, and on top of a poor track record for defaulting, yet the issuance was four

times oversubscribed. GCC countries still sit on large cash and oil reserves, and carry a relatively low default risk.

Investor confidence in the Middle East as a growth market is still fairly robust, while transparency and governance at both corporate and sovereign level are showing signs of improvement. In short, GCC bonds remain an appealing prospect, particularly when we consider the recent success of prominent Latin American issuances.

We’re currently expecting increasing leverage across the GCC at a sovereign, corporate and household level. This will result in further downgrades throughout the region and, probably, higher risk premiums. On the other hand, the starting point for GCC credits is fairly comfortable, and investors can be expected to absorb the first wave of issuances relatively easily. The GCC will increase its weighting on various indices and more global investors will

look at the region. Ultimately, this will bring improved liquidity in the secondary market.

With room to lever up, there are clear opportunities for investment and reform at GCC sovereign level.

Demand for capital can readily be met by the issuance of sovereign debt, as well as by government-related entities.

Another obvious way to attract capital is to divest a portion of the vast number of government-owned businesses across the GCC. The main threats to this process are misallocation of capital, coupled with domestic hesitancy and external doubts over fiscal policy reform.

We expect a number of sovereigns, such as Oman, Qatar and Saudi Arabia to issue in different tenors. This will give a clearer indication of risk appetite for bank and corporate issuance thereafter.

Our view is that risk premiums will maintain their elevated position for the time being.

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The UAE is perceived as a safe haven in the region that encourages investors and wealthy individuals to relocate their wealth and themselves to the country.”

PHOTO:SHUTTERSTOCK

– Bruno Daher, CEO of Credit Suisse Middle East

Private banking set to thrive

WITH PRIVATE WEALTH IN THE GCC ON THE INCREASE, THERE IS OPTIMISM THAT PRIVATE BANKING WILL SEE BIG GAINS IN THE REGION 18

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THERE IS A SHIFT IN THE RISK APPETITE OF HNWIS WHO ARE NOW ADOPTING A MORE CAUTIOUS APPROACH.

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rivate banking and wealth management is always seen as a growing opportunistic area across the GCC. Many financial institutions, both local and international have thrown in their hats trying to take a slice of the pie as they tap into this opportunity. Market observers have however identified specific trends in this market segment. According to the sixth annual Middle East Asset Management Study by Invesco, family offices in the GCC are becoming more sophisticated with generational changes as they continue to seek professional help in wealth preservation and generation.

IS THE SECTOR A SAFE BET FOR UAE BANKS?

As the wealth segment gains popularity in the region, particularly in the UAE, some question if this market segment could be a safe bet for banks. Credit Suisse’s Global Wealth report expects the UAE to see an increase in the number of dollar denominated millionaires by 62 per cent over the next five years. Economic growth, combined with the fact that the UAE is viewed more favourably within the region (in terms of diversifying its economy, providing better infrastructure, maintaining

political stability) is believed to have helped its private wealth to grow at a faster pace compared to other Gulf nations in the past few years.

Bruno Daher, CEO of Credit Suisse Middle East highlighted three factors contributing to the increase in private wealth management offerings in the country. First is the growing wealth and number of millionaires in the UAE. Second, is due to a shift in the risk appetite of high net worth individuals (HNWIs) who are now adopting a more cautious/low risk approach. ...cont. overleaf

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PHOTO:SHUTTERSTOCK

PRIVATE BANKING

PRIVATE BANKS HAVE A LOT OF WORK TO DO FOR THE GCC'S ELITE.

cont. from page 19

Third, in the current economic environment, HNWIs are looking both at capital preservation and growing their wealth, which is why there is an increasing need for private wealth management advisory services.

“In Credit Suisse’s case, our expectations are to continue to grow our business in the region. Our clients are getting wealthier and looking for new ways to invest their money, and we want to be able to continue to serve them better and help them grow their wealth,” said Daher. Sharing the same sentiments, Jonathan Conner, Middle East Market Manager at J.P. Morgan Private Bank commented, “I think businesses must continually work hard to ensure they are delivering for its clients. As such, there is never room for complacency, especially when you want to stand out from the crowd. Within the wealth management industry, most firms typically specialise their offerings around net worth or investible assets. This allows them to tailor their advisory capabilities to a specific client focus.

For example, some banks focus on the mass affluent segment, some on the high-net-worth segment. In the Middle East, J.P. Morgan

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focuses on the ultra-high-net-worth segment, which includes many of the wealthiest families across MENA including the UAE.”

ENHANCING PRIVATE BANKING

Different banks have different approaches and strategies in driving their private banking and wealth management businesses forward.

“Most of the families we work with have a level of wealth that will likely outlive the current generation. With this as a backdrop, our job is not to help clients solve ‘how will I maintain my lifestyle or send my children to university’ but ‘how do I plan my legacy so that my wealth does what I intend it to do after I am gone?’ Our clients are concerned about ensuring that their wealth will meet the goals they set today several generations from now. Our clients also often have wealth that is tied to a family or to a business enterprise. They are, as I like to say, ‘institutions with arms and legs’.

They have institution-size needs, but very personal issues,” explained Conner.

He further stated that many clients are borrowing to finance their next idea, diversifying to preserve the wealth they created, and investing selectively in products to derive as much return as possible given their risk tolerance. He urged clients to think very carefully about tax, and more often than not, their need to access investment banking services.

“From an investments perspective, our offerings are constantly evolving, particularly given an ever-changing market environment. Our colleagues on the investments side of the business are currently looking at hedging strategies in equities, given our neutral outlook, as well as being very specific in the sectors they like, namely, healthcare, technology and financials. In fixed income, they have been rotating some equity exposure into investment grade bonds as well as extended credit, given what they see as better return asymmetry in credit markets,” said Conner.

On the hedge fund side, he pointed out that the company’s relative value managers have performed fairly well in 2015 and

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opportunities for investment, are some of the reasons why Daher believes that wealth is more likely to stay onshore in the future.

THE UAE ADVANTAGE

BRUNO BRUNO DAHER, DAHER, CEO CEO OF OF CREDIT CREDIT SUISSE SUISSE MIDDLE MIDDLE EAST EAST

expect our relative value and macro managers to continue their momentum.

“Private equity continues to be an attractive long term complement to a stock/ bond/hedge fund allocation. We currently like industries with above average growth, private credit funds that provide liquidity where capital is scarce and managers that can take advantage of select markets that remain dislocated,” he said.

On the other hand, Credit Suisse pursues a multi-shore approach, focusing on serving clients on an onshore basis and providing offshore services as they often seek multishore solutions for diversification reasons.

The firm combines its private banking, wealth management, asset management services and investment banking services.

AN INFLUX OF WEALTH

The UAE is said to have experienced an influx of wealth over the last couple of years. Industry players believe that political stability and security of the UAE, in the context of the broader region, is an important reason for individuals and companies wanting to set up offices in the country. In addition to this, Conner highlighted that the country has also been building the right infrastructure to encourage businesses and professionals to relocate. Apart from physical infrastructure, the UAE has also fostered an entrepreneurial spirit across the nation.

JONATHAN JONATHAN CONNER, CONNER, MIDDLE MIDDLE EAST EAST MARKET MARKET MANAGER MANAGER AT AT J.P. J.P. MORGAN MORGAN PRIVATE PRIVATE BANK BANK

“I personally know many people from the broader region, as well as from around the world who have come to the UAE, specifically to relocate their existing family business or to start up a new business. There are also professionals who came to the UAE with a large corporation and then left them to found their own business, as they have found the environment conducive for entrepreneurship.

While there is inevitably still some way to go and a need to refine and improve in certain aspects, the UAE has undoubtedly come a long way in a short period—and the influx of businesses and human capital is a testament to that,” said Conner.

Adding to this, Daher highlighthed, “For years the UAE, and Dubai in particular, has been actively seeking and attracting foreign investment. This influx of foreign funds has helped the economy to sustainably grow.

More recently, the UAE’s commitment to creating a more diversified economy by focusing heavily on growing non-oil sectors has been a key reason for this influx of wealth. Investors have benefited from boosts in various such sectors (such as real estate) over the past few years.”

Another factor contributing to this is also the fact that the UAE is perceived as a safe haven in the region that encourages investors and wealthy individuals to relocate their wealth and themselves to the country. Additionally, the growth of talent in the UAE, along with the burgeoning

A lot has been said about wealth management opportunities in the UAE. According to Daher, the UAE is interesting and unique in many ways for four reasons: the economy is well diversified; it has advanced infrastructure capabilities; it is strategically located; and it is stable.

“The UAE, and Dubai in particular, has been considered as one of the fastest growing financial centres in the world which has led may international bankers and big local players to set-up their regional hubs or offices here. While Dubai has been taking the lead, Abu Dhabi is also steadily emerging in this space. Therefore the UAE has a lot more to offer than before—growing wealth, more financial centres, a strong regulatory framework, and an excellent infrastructure— all of which contributes to and enable private banking businesses to thrive,” he said.

“They are living in an environment where there is huge growth and they understand the meaning of risk and investing in opportunity, so broadly we see that they have an entrepreneurial spirit when it comes to doing business. A drop in oil prices has also caused the UAE to review their investment opportunities in a globally diversified manner. They seek higher growth and not just the preservation of capital like many clients do in the more mature markets, but also growth opportunities. This is why our holistic approach has always helped them because their needs are not always traditional or capital preservation related,” Daher explained. Commenting on this, Conner added, “The UAE is a natural hub for the region. It has excellent infrastructure and has established itself as a pleasant place to live and work—for both clients and bankers alike.

This is true of other countries in the region too, but the UAE has certainly been very proactive in positioning itself in this way for a number of years now and in undertaking the necessary work to be able to deliver on this promise. As a private banking hub, I am sure it will continue to be a centre for relationship management that operates out of the region.”

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PHOTO:SHUTTERSTOCK

The diamond STANDARD

A NEW INNOVATION IN DIAMOND INVESTMENT AND WEALTH PRESERVATION HAS ARRIVED IN THE FORM OF VULT, WRITES MATT AMLÔT 22

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WEALTH MANAGEMENT

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iamonds have always had a concentrated value of wealth, with a size to value ratio several leagues beyond almost all other types of assets. However, their use as an investment has been limited in the past due to complicated market practices and a lack of fungibility. VULT, a new product from Secured Worldwide, a New York based start-up, is aiming to change this and provide a new way in which to invest in the diamond market and preserve wealth without the aforementioned downsides.

“Diamonds are portable, globally traded, unregulated, easily stored, highly concentrated stores of wealth.

Investment grade diamonds are hundreds of times more valuable than gold by weight. They are already recognised as a personal asset with lasting value. Yet loose diamonds have never emerged as a genuine asset class like gold, oil and other commodities,” said Joseph Lipton, CEO of Secured Worldwide and inventor of VULT, at the product’s launch.

The diamond markets are opaque and secretive with limited or non-existent

liquidity, making it difficult for private investors to engage in the buying or selling of diamonds. In addition with loose diamonds, one diamond is never truly an exact substitute for another, making trading harder and more difficult to quantify. The diamond industry also remains marred by a history of supply manipulation and cases of misrepresentation and faked diamonds.

“Only diamond dealers can access the wholesale market. They are the only ones who can determine the current price by talking to other dealers they have done business with over the years. They are the only investors who have really stored value and benefitted from diamonds over the years. Even the recent opening of the Singapore Diamond Exchange is limited to trading by registered diamond dealers.

“Even buying an expensive and rare diamond at auction does not access the true value as the auction process creates much higher prices over wholesale with the added costs for buying and selling.

This is one of the reasons dealers rarely buy at auctions attended by investors,” added Lipton.

However, a report by Bain & Company The Global Diamond Industry: Lifting the Veil of Mystery argued that a significant increase in the investment market for diamonds could potentially disrupt the market and increase demand, which would in turn “drive prices higher and create an even stronger outlook.”

Diamonds have some advantages over other assets, but the diamond industry as a whole is not set to change its focus from the luxury market to diamonds as an investment product.

VULT aims to change this by packaging loose diamonds together and creating a new transparent and equitable investment alternative. Each case contains a selection of ethically sourced, GIA certified diamonds which are D-F in colour, with clarity grades of IF to VS1, and a cut grade of Excellent. These are then sold in four denominations, white ($25,000), blue ($50,000), black ($100,000) and gold ($250,000). This creates a fungible asset class, as one VULT will always be of the same value as another VULT of the same type, with the ability to store a significant amount of ...cont. overleaf

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WEALTH MANAGEMENT

A VULT PROVIDES AN ALTERNATIVE WAY TO STORE WEALTH.

cont. from page 23

wealth in a small package. For an example of the concentration of wealth that diamonds offer, at time of writing a $100,000 VULT comes in at around 170 grammes whilst $100,000 in gold weighs just under 2.4 kg.

“As an investment, diamonds have historically kept pace with inflation.

However with the current financialisation of diamonds combined with increasing problems with fiat currencies, diamonds are likely to outpace that historic growth,” commented Lipton.

“Global investors were concerned about their cash holdings at the beginning of 2016 given currency wars (competitive devaluations) and negative interest rates on bank deposits in countries representing one quarter of the world’s GDP. Brexit injects additional uncertainty for holders of cash and cash equivalents regardless of currency. Diamonds and other portable alternative assets will increase in importance,” he added.

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The packaging of VULT is designed with security in mind. The case is made from sintered zirconia with a single sapphire crystal cover and a unique laserengraved serial number. In addition, each diamond has its own GIA certificate number laser-engraved.

VULT units also have a multi-layered authentication process which allows owners and potential buyers to remotely verify the diamonds via an app. Owners enter the verification code on the front of their VULT which is then followed by a multifactor authentication process via an optical signature recognition system. The extra layers of security make a VULT unit incredibly difficult to tamper with.

No personal information is required to purchase a VULT, beyond banking or credit card details. Ownership registration is also not required. As each VULT is verified based on the security features in its design, rather than by any registration

details, the identity of the owner can be kept completely private.

VULT units can be sold on the open market, or they can be sold at any point though the VULT market. VULT itself will participate in this market as a participant in order to help boost the market’s liquidity. In addition, should the owner want, the diamonds can be removed from the VULT and sold privately, although doing so will mean that the VULT cannot be traded itself.

This means that even if VULT as an entity were to no longer be in business the diamonds within the an individual VULT unit can still be sold by the owner, meaning the purchase cannot be rendered illiquid and obsolete.

In conclusion Lipton said that, “VULT provides the most cost effective route to physical diamond trading, storage and inbond custody available to investors anywhere in the world. The openness and transparency of our VULT Exchange has made us the first choice for investors looking to diversify into diamonds as a tangible, tradeable asset class.”

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IB&F Apr2

THE AUTHORITATIVE VOICE OF ISLAMIC FINANCE Essential reading for an expanding industry - Islamic Business & Finance is the world’s most thought-provoking monthly magazine dedicated to the development of Islamic finance globally.

Islamic Business & Finance is a controlled circulation publication. You may apply to subscribe via our website or by emailing subscriptions@cpifinancial.net

CPI Financial FZ LLC • PO Box 502491 Al Shatha Tower, Office 1209 Dubai Media City, Dubai, U.A.E. Tel: +971 (0) 4 391 4681 • Fax: +971 (0) 4 390 9576 • www.cpifinancial.net IB&F Apr2016 Issue 94-96.indd 1 p_22-24 Diamonds.indd 25

28/04/2016 14:38 7/17/16 4:27 PM

Dubai’s luxury property market ‘alive and kicking’

DESPITE CHALLENGES, DUBAI’S HIGH-END PROPERTIES CONTINUE TO LOOK STRONG FOR INVESTORS, WRITES HARRY TREGONING, FOUNDER, TREGONING PROPERTY

I

f you go to the UK at the moment, and parts of Europe, all talk is of Brexit and the state of the property market there. With the pound crashing by 20 per cent it looks bleak for the UK’s property market until some certainty is brought back, and that may not be until the end of the year.

However the impact on the UAE and Dubai housing market is sure to be negligible. Sure, some immigrants will leave the UK but this will be a relatively small number and even fewer will settle here in the UAE. It may just be a good time for UAE citizens and residents to get a relative bargain in the UK market.

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In the UAE, the luxury market goes from strength to strength in this market. We are looking at luxury villas which are priced from AED 370,000 ($100,000) rental a year and above and AED 6,000,000 and above to purchase. There are many projects coming online in 2016 and sales have been solid on these projects. The District One first phase in Mohammed Bin Rashid City is due to be released and this will be another popular project and the secondary market has already started to show promise much to the developer's dismay.

Other communities remain popular with these luxury accommodation choices around

Old Town holding their own in prices well, and Burj Khalifa never seems to disappoint.

Dubai continues to grow the new offerings in Akoya and those at Jumeirah Golf Estates are becoming more and more popular, especially as they are on route to the Expo 2020 site where so much employment is coming.

New schools that have opened continue to be great attractions to communities and the success of Foremarke and Nord Anglia have helped Barsha really come to the fore. There are still bargains to be found in this up and coming area.

Palm Jumeirah, Emirates Hills and Al Barari remain the jewels in the crown of the

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THE PALM JUMEIRAH REMAINS AN ATTRACTIVE INVESTMENT.

property market in Dubai with the Jumeirah Pearl imminently to join this exclusive club.

Villas at the higher end demand rents that are prohibitive to most customers, but they are still attractive to senior executives. The prices on the Palm for villas have fallen by 15 per cent from the highs of March 2015 and this could be reflected throughout much of the market.

To get the housing market going, it would be good to loosen the shackles of the second and third mortgage cash amounts needed. I was speaking to an investor just last week who suggested if he had to put less cash up for his mortgages he would immediately reinvest

in one if not two more villas but he has too much cash tied up in his existing properties.

This certainly would prove to be a popular move and would breathe huge fire into the sales market.

Despite challenges, the greens shoots of recovery are starting to come through and rentals have increased 50 per cent in terms of numbers within our agency comparing June with May and long may this trend continue.

Belying spurious rumours, Dubai is open for business and the luxury market is alive and kicking. The next twelve months looks to be increasingly busy and as petrol prices continue to recover, so should the housing market.

Tregoning Property is a Dubaibased boutique estate agency offering the highest levels of service and professionalism. Founder Harry Tregoning has over a decade of experience in property services, in both the UK and the UAE. Through the company's core team and strategically placed partners, Tregoning Property is ideally positioned to deliver great living and investment solutions across Dubai. Tregoning Property was founded in 2016 and currently employs four people.

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PHOTO:SHUTTERSTOCK

COMPOUND INTEREST MAY NOT GET THE PRESS, BUT IT GETS THE RETURNS.

DOUBLE or nothing

INVESTORS FOCUSING ON A COMPOUND INTEREST STRATEGY HAVE A HIGH CHANCE OF DOUBLING THEIR MONEY IN JUST SEVEN YEARS, WRITES HAMZAH SHALCHI, REGIONAL MANAGER, GUARDIAN WEALTH MANAGEMENT 28

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INVESTMENT

HAMZAH SHALCHI

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ouble your money in seven years’ may sound like a tagline from a getrich-quick scam, but it’s a very real opportunity for investors looking to grow their sizeable funds over a set period. The secret? One of the oldest tricks in the book; compound interest.

Once cited as the ‘eighth wonder of the world’ by Albert Einstein who also said, ‘those that understand it, earn it; those that do not, pay it’, compound interest is a relatively

low-intensity way of reliably maturing your investment over the long term. The idea is to let your money earn interest, which in turn earns interest, and this is most effective with an already sizeable starting funds. The key being discipline and patience.

Of course doubling your investments is highly dependent on your risk tolerance, but ultimately, as in any casino game, the higher the risk of loss also means the higher the risk of gain.

There is no doubt that markets have been uncertain over the last several years and understandably. The crash of 2008 has led stakeholders to be more risk averse than before. But the case for long-term investing in equities is stronger than ever and has only been reaffirmed from recent market volatility.

Yes, equity markets can also be volatile, but history has shown that throughout a wide range of crises, equities have delivered higher than average returns compared to bonds and cash over time.

For instance, despite huge global events such as the First Gulf War (1990), the burst of the ‘dot com’ bubble (2000) or even the Greece bailout (2010), an investment in the MSCI World Equity Index on 1 January 1980, with dividends reinvested, would have grown to 32 times its original value on 1 January 2016.

This is compared to 15 times its value in bonds and five times its value in cash.

The uncertainty of Britain’s recent EU referendum is also a good example of this. With UK stocks underperforming for a good 12 months before the vote, equities proved to weather the volatility and offer higher returns over the long term.

Of course past performance is no guarantee of future returns, but based on the same rational, there is no reason why an investment in a multi-asset investment portfolio could not double in seven years.

In fact, we are working with one product at Guardian Wealth Management that if you had invested a million dollars over the last seven years using a boutique investment proposition, you would have indeed doubled your money. With an average annual return of 10.57 per cent, the investment objective is to provide capital growth in US dollar terms, but with a reduced level of volatility via strategic exposures to a wide range of other asset classes.

Of course portfolio opportunities vary, but the most important thing to stress about any investment strategy is not time in the market, but timing in the market. For the most fastidious of investors who would like a benchmark quickly, there is a simple calculation that can be done to determine how long it will take an investment to double or, if you have a specific period in mind, what interest rate you will need.

The Rule of 72 says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight per cent interest, divide eight into 72 and get nine years. It can also be worked backwards, so if you want to double your money in seven years, just divide seven into 72 and you will get an interest rate of about 10.29 per cent. Although not exact, the rule is remarkably accurate as long as the interest rate is less than 20 per cent—any more and the errors become significant.

Bear in mind that these are annualised returns or long term averages, rather than a guaranteed 10.29 per cent return every year—they might return 10 per cent one year and lose 12 per cent the next. So if you have indeed doubled your money in seven years, it may be that the markets are down that year and you have to leave your money for several more years for things to turn around.

In the end, the key to any investment, compounding or not, is to plan carefully, choose your investments wisely and keep an eye on your portfolio.

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MOTORING

“THE LIGHT STEERING AND SMOOTH GEARBOX MAKE GETTING OUT OF THE CAR PARK A CINCH – THE HURACÁN, IT TURNS OUT, IS JUST A BIG, FOUR-WHEEL-DRIVE SOFTY.”

LOOKS LOOKS GOOD GOOD IN IN THE THE DESERT, DESERT, WOULDN'T WOULDN'T YOU YOU SAY? SAY?

JEKYLL & HYDE

The Lamborghini Huracán is a stylish city runabout as well as a bruising street fighter, writes Tom Paye

S

moked salmon, check. Cottage cheese, check. Hummus, cold cuts, carrots and cucumber. Check, check, check. The shopping list completed, it’s time to tackle what will likely be the biggest challenge of the day—navigating out of the car park in a $255,000 Lamborghini

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Huracán, which is very low, very wide and very prone to scratches.

It may be reasonable to assume that taking a full-blown Italian supercar for a jaunt to the shops is the height of stupidity.

But there is method to the madness. The Huracán—the new ‘baby Lambo’, as it’s

known—may very well be a fire-breathing, fuel-snorting mid-engined monster, but a minute or two inside suggests that it could actually be acceptable to live with on a dayto-day basis. The seats, made with a carbonfibre base, are quilted in sumptuous leather; the air-conditioning (lifted from Audi)

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is arctic cool; and the steering is light and nimble. A quick stop at the local Spinney’s in preparation for a dinner party later seems like the perfect opportunity to put the theory to the test. The supercar hoonery can be enjoyed after dinner.

The shopping bags just about fit into the supercar’s trunk, located at the front.

It’s an impressive amount of space, but not particularly deep—large enough to fit a medium-sized duffle bag into. That said, it’s carpeted beautifully, so anything that does find its way in there is going to be comfortable. Trunk closed, it’s simply a matter of squeezing into the just-about-

open driver’s door (thanks to a fear of dinging the car parked in the next bay), and slotting down low into the bodyhugging seat right in the belly of the vehicle.

And, of course, slipping out of the car park unscathed.

The engine start button is located to the right of the driver, almost at the bottom of the centre console. Obscured by a fighter-jet style toggle that needs to be switched open, the button pulsates with a red light, as if it’s burning to be brought to life. The button depresses with a solid, satisfying thunk, and the monster awakens with a tuneful bark, sung straight from its 5.2-litre V10 heart. It’s pure supercar theatre.

Inside, the delights aren’t only auditory; as the engine emits its first growl, a 12.3inch TFT instrument cluster on the dashboard springs to life. It may be a fully digital display shared with the Audi TT, but thanks to Lamborghini’s bespoke graphics, the movements are so fluid and natural that they appear to be analogue.

There aren’t many buttons, with most of the car’s functionality outsourced to that display, placed squarely behind the steering wheel. The screen can be customised to focus on information related to speed, revs or navigation—or a mix of the three. Extra information such as radio channels and the ...cont. overleaf

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MOTORING

“THE LAMBORGHINI HURACÁN IS TWO CARS. IT’S AN IRON FIST CLAD IN A VELVET GLOVE; IT’S A BRUTISH CLUB BOUNCER DONNING A THREE-PIECE SUIT; IT’S JEKYLL AND HYDE.”

THE AC IS EFFECTIVE ENOUGH TO KEEP YOU COOL EVEN DURING THE HEIGHT OF SUMMER.

cont. from page 31

like can also be programmed in, through the BMW iDrive-style scroller found near the start button on the centre console. It may appear complicated at first, but a few minutes playing with the intuitive controls is all it takes to completely master the digital readouts.

The AC controls are dealt with in the normal way—through a dedicated panel on the centre console—and are almost exactly the same as those found on the Audi A8. But given how effective the AC is, Lamborghini is unlikely to

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see any complaints from Gulf buyers on that front. Above the AC controls, there is a smattering of extra buttons, controlling things like the hazards and the electric windows, each eschewing the same fighter-jet button style found on the starter switch. Most importantly for navigating a car park, there is an optional switch to raise the nose height. Press down on it, and a small icon flashes up on the TFT screen. Once the icon is solid, it’s time to get going.

A pull on the left gear-shift paddle, stunningly crafted out of a single piece of metal, slots the gearbox into reverse, and a view of what’s behind pops up on the instrument cluster, thanks to a rearview camera. Manoeuvring a supercar out of a parking space used to be an act of heroics, but now it’s as easy as reversing the supermini that your son drives. The throttle is light, the gearbox compliant, and the steering exceedingly easy. Yes, the movements are completed gingerly and

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...cont. overleaf

carefully, but for a supercar, the Huracán is extraordinarily simple to thread out of the space. The hard part over, the light steering and smooth gearbox make getting out of the car park a cinch—the Huracán, it turns out, is just a big, four-wheel-drive softy. there is a reason why Lamborghini has opted to make the Huracán as usable as possible. It’s the follow-up to the Gallardo, the company’s best-selling car ever. Over 14,000 Gallardos were sold over the car’s 10-year lifespan,

meaning that well over half of all the Lamborghinis ever sold are Gallardos.

Why was it so successful? Well, it combined stunning, bedroom-poster looks and extreme performance with just enough comfort and real-world usability for it to be a daily driver. Purists lamented that the Gallardo wasn’t raw, visceral or scary enough, but buyers out-voted these types with their wallets, and now Lamborghini has to keep that market happy with the Huracán.

And that is how we’ve ended up with a mid-engined supercar that is just at home in the Spinney’s car park as it is at Yas Marina Circuit. The Huracán has built on the Gallardo’s usability and comfort, and dialled those factors up to 11. The Porsche 911s and Audi R8s of this world used to be described as the only truly usable supercars, but now Lamborghini has joined the party.

It really is that civilised.

But do not let the fact that it can perform as a daily driver fool you into thinking that

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A CAR THAT STANDS OUT, WHEREVER IT MAY BE.

cont. from page 33

the Huracán has gone soft. The vast swathes of leather and Alcantara might make for a comfortable cockpit, but with the fighter jet-style buttons, the enormous steering wheel, the sharp, cold paddle-shifters, and the rasp of an enormous V10 engine behind, there is enough theatre in here to offer a real sense of occasion. Despite the Huracán’s real-world usability, you’re never fooled into thinking that you’re pootling about in a normal sedan; driving the Huracán is an event that is as joyous trudging around town as it is flooring the accelerator.

That said, if you had to have one over the other, flooring the Huracán would certainly be the right choice. For all of its comfort and docility at low speed, a Huracán at full-chat offers one of the most exciting experiences that money can buy. Its direct competition is the likes of the Ferrari 488 and the

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McLaren 650S, and while the McLaren has the Lamborghini licked in terms of ultimate top speed, the Lamborghini trounces both its rivals when it comes to pure exhilaration.

Part of that is to do with the mighty, naturally aspirated V10 engine. It may have been adapted from the old Gallardo, but it’s been heavily reworked so that it now delivers 602 bhp to all four wheels (a rear-wheel-drive version was added to the range earlier this year). The best part, though, is that 75 per cent of torque is available from just 1,000 rpm, with the rest punching in as you make your way to the nearas-makes-no-difference 9,000 rpm red line. This means a 0-100 km/h time of 3.2 seconds, and a top speed well north of 320 km/h.

The numbers on paper only tell half the story; experiencing them is another matter entirely. On the well-finished steering wheel is a switch—Lamborghini calls it the ‘Amina’

(soul) switch—that allows the driver to select three different driving modes. Most of the time, it’ll be left in ‘Strada’ (road), which offers a fully automatic gearbox, softer suspension is a quieter engine note. We should be clear right now that the Huracán is still mightily quick when it’s in Strada, but things operate on a different level when you make the switch to either ‘Sport’ or ‘Corsa’ (track).

Stick the car in Sport, and everything changes. The steering becomes heavier, the suspension stiffens, and the exhaust is opened.

Find a quiet bit of open road, and flooring the Huracán in this mode becomes an adrenalinefuelled addiction. The acceleration is brutal, the engine a force of nature, the noise like the howl of a dozen hungry wolves carried across an arctic hurricane. The revs climb with an urgency that an analogue dial simply would not be able to keep up with. Outward vision

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DON'T MIND OUR HANDS.

“THE ACCELERATION IS BRUTAL, THE ENGINE A FORCE OF NATURE, THE NOISE LIKE THE HOWLS OF A DOZEN HUNGRY WOLVES CARRIED ACROSS AN ARCTIC HURRICANE.” becomes tunnelled and focused, as the vehicle smashes itself through space and time.

What’s really impressive, however, is just how accessible all of this performance is. Granted, it would be unwise to floor the Huracán on a busy road, but slight bends provide little worry. The all-new chassis structure, new suspension and lightweight body mean that the car simply grips like it’s glued to the road, even as the speedometer skyrockets through its numbers. In Sport mode, the new, seven-speed, dual-clutch gearbox shifts up automatically just before the 9,000 rpm red line, meaning it’s supremely easy to concentrate on attacking a fast bend. And when it’s time to slow down, the optional, fade-free, carbon ceramic brakes work with alarming force, sucking your face forwards as the G levels in the cabin begin to equalise.

BEAUTIFUL, BEAUTIFUL, FROM FROMTHE THE BOTTOM BOTTOMTO TOTHE THETOP. TOP.

Corsa takes that excitement and builds on it, making everything rawer, harder and faster. In this mode, the gearbox is fully manual, the traction control backs off a little, and the steering becomes even heavier. This mode isn’t really usable on public roads, but if you do find yourself exploring it out of curiosity, the one thing that will stay in mind will be the howling of the V10 behind you. Because the engine is naturally aspirated—bucking the industry trend for turbo-charging—it sings at almost any rev limit, ranging from a baritone growl to a soprano shriek within a matter of seconds.

And it goes without saying that the car is insanely fast—much faster than anything even the hardened, light-weight Gallardos could ever achieve. It’s hilarious, ridiculous, beguiling, horrifying, and wonderful. That a car with so much computer-aided wizardry

behind it can evoke such a broad range of emotions is nothing short of astonishing.

The Lamborghini Huracán, then, is two cars. It’s an iron fist clad in a velvet glove; it’s a brutish club bouncer donning a three-piece suit; it’s Jekyll and Hyde. Some have derided the Huracán for its comfort, for its usability, for its restrained looks (sorry, but have you seen it?), and for a perceived lack of excitement. But those people forget two things. One, that the original Gallardo—and by extension the Huracán—was always meant to be a mass-market supercar. And two, when you open the taps, the Huracán is an adrenaline-pumping, heart-stopping stunner, capable of immense speed and excitement.

That you can control the Jekyll in this Hyde shouldn’t be used a stick to beat the brand with; it should be celebrated as an astonishing feat of engineering, which is exactly what the Huracán is.

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PHOTO: SHUTTERSTOCK

GOOD TALK

DOLPH LUNDGREN HAS STARRED IN ACTION FILMS FOR MORE THAN TWO DECADES, ON THE BIG SCREEN AND STRAIGHT TO VIDEO.

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I try to keep my martial arts friends and my old friends. Even with all the people around me, I try to keep those relationships alive. They mean a lot in this crazy business that I’m in.

He comes in peace

DOLPH LUNDGREN, LEGENDARY STAR OF THE NEW FILM RIOT, SPOKE CANDIDLY TO WEALTH WHILE ON HOLIDAY IN SPAIN ABOUT HIS LIFE AND PASSIONS

ON TRAVEL I like islands and beaches and getting away from everything. The sea, you know? That’s where I try to go if I have some time off or a boat or something.

That would be it. Away from everything.

I’ve got a few islands on my list of favourites. Bora Bora, I like that. I was in Hawaii—Kauai is nice. I like Oahu, Honolulu quite a bit. St. Barts in the French West Indies is nice too.

ON FASHION I used to do a lot of tailored stuff but I find it easier to buy a suit off the rack and have it altered. I like Tom Ford a lot—Tom Ford and Yves St. Laurent.

I used to buy more suits and be more classic, but now I’m a little more chilled I think—I try to relax and be a little more rock and roll. There’s some Gucci things that I think are pretty good.

ON MOTORING I have a Ferrari that I like a lot that I’ve had for almost 10 years—a 610—a 2+2 tourer that I keep in LA. I like that a lot. I have a Land Rover that’s about 20 years old that I like, with an open top built for the desert.

ON FINE DINING I like Nobu in Malibu. There are a lot of great restaurants, I do not know all the best places, but I like that one. There’s a steakhouse in Brooklyn called—Peter Luger’s! Yeah! That’s pretty good.

ON LUXURY ACCESSORIES Right now I’m wearing the watch we had in The Expendables—a Panerai, made of brass, a Luminor. I have a few other ones—Audemars Piguet, Rolex. I have a lot of watches, but I don’t try to collect them, like some people.

ON FRIENDS I had to move back to LA about five years ago, and since then, things are going better. I try to keep my martial arts friends and my old friends. Even with all the people around me, I try to keep those relationships alive.

They mean a lot in this crazy business that I’m in.

ON HIS LIFE My life has been pretty eclectic because it goes from studying chemical engineering to starring in The Expendables to hanging out with Andy Warhol to growing up in the small town in Sweden where I came from. I suppose you can say that I’ve been lucky enough to do a lot of different things.

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LUXURY TRAVEL

Finding your EDEN

EDEN ISLAND, A LUXURY MARINA DEVELOPMENT IN THE HEART OF THE SEYCHELLES ISLANDS, OFFERS BOTH THE IDEAL ISLAND GETAWAY AND FANTASTIC RETURN ON INVESTMENT

S

eychelles, a group of 115 islands 1500 miles off Africa’s east coast, may have the smallest population of any independent African nation, but what it lacks in size, it makes up for in its reputation as a paradise on earth. One of those islands takes the name from another famous paradise—Eden Island.

Since 2006, Eden Island has been one of the key destinations for investors looking for their own island sanctuary, either to enjoy, to rent for healthy return, or both.

“Four degrees south of the equator, Eden Island is a reclaimed island just off the main island of Mahé,” said Peter Smith, Head of

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Marketing for Eden Island. “In the late 1990s, about 400 hectares of land were reclaimed off the east coast of Mahé. Eden Island was one of those reclaimed islands, developed as a residential marina resort. It consists of 570odd homes, and a commercial precinct and super yacht marina.”

“We’ve been going for about 10 years now—we launched it in 2006 in the UK, South Africa and France, and we did really well in our first launch, and have continued to sell at a rate of about five properties per month.

We now sit at 500 sales and have the last 70 to go and are in the final phase of development as can be seen in the picture above,” said Smith.

Sales have been global, including to discerning investors in the GCC. “We’ve sold to 40 countries around the world.

We’ve done really well in France, the UK, and the UAE. Thirteen per cent of the value of properties sold on Eden Island were sold to UAE citizens. But we think there is still some room for growth in this market.

The UAE, in particular, is a perfect fit for a second home in Seychelles. “It’s four and a half hours away, there are two flights daily from Dubai, there is a flight a day from Abu Dhabi.

It’s a sought-after destination from the UAE. Sheikh Khalifa owns property there and has done a lot of investment in the

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EDEN ISLAND OFFERS PLENTY OF OPTIONS FOR ISLAND HOPPING.

Seychelles into a lot of social projects.

One of the key selling points for investors is how the investment is titled.

“Importantly, we sell property there on a freehold title. Eden Island is essentially the only place foreigners can buy on a freehold title. The deal we did with the Seychelles Government gave many favourable terms of purchase.”

As a result, many of the normal real estate investment headaches are washed away. “There are no transfer fees, there is no stamp duty, and when you buy a property there, there are no rates and taxes, and no capital gains tax. It’s an attractive

investment for someone who wants it as either a holiday home or an investment for rental returns.”

But it’s key attraction is still its beauty. “The main selling point is the whole environment, from a holiday perspective. A lot of people that come to Eden Island on holiday end up buying.

We have a rental pool there and we use that as an opportunity for speaking to people about investing. It’s a great environment to come and stay in. A beautiful holiday destination.

Two of the top ten beaches in the world are in Seychelles. The deep sea fishing, the snorkelling, the scuba diving, the sailing are all superb. It’s very safe. there are no hurricanes or

cyclones in the Seychelles. The climate all year round is stable. There is high humidity at certain times, but it’s 27-29 degrees Celsius. There is nothing ostentatious in the Seychelles—it’s just a pretty nice place to go and relax. And you can do that in some really magnificent resorts and hotels,” said Smith.

Rather than standing out, the developers of Eden Island went to great efforts to make it fit in with the architectural style of the area. “The designers took 2000 photographs of creole style homes when we started the project, and when you drive around the towns you’ll see elements from those houses in our architecture,” said Smith. ...cont. overleaf

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VILLAS HAVE SOLD WELL FOR THE DEVELOPERS.

cont. from page 39

Amenities are also a selling point, for both their convenience, quality, and quiet. “there is a clubhouse, gymnasium, tennis court, and four private beaches on the island. If you go to those beaches on a Sunday, you’ll will often only see one person at the most. there are good hiking trails and sailing between the islands—or island hopping, as they call it. You’ll travel to another small island only 20 minutes

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away that will make you feel like you’re in the middle of nowhere,” said Smith.

Yacht-enthusiasts will find it an ideal destination, as have the many who have already found their way to Eden Island.

“You get a spot in the marina as part of your purchase price, and about 50 to 60 per cent of people have boats. Some people bring boats, leave boats there, and have them looked after in Eden Island.

At times we have had up tp six superyachts in our marina in one month. Sailing around on catamaran is the most comfortable way when you’re island hopping,” said Smith.

Investors do not have to choose between renting it out and keeping it for oneself. In fact, many do both. “A lot of people live for eight to 10 weeks of the year, and the rest of the year, they put it in the rental pool and rent it out. The villas are generally kept by

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HOMES ARE SPACIOUS AND COMFORTABLE.

A PEEK INSIDE THE BEDROOM. THE LIVING ROOM OF AN APARTMENT.

the buyers for themselves, but there are a lot of villa buyers that bought apartments as second and third investments. Twenty five per cent of the people who bought in Eden Island have bought more than one property.

This is quite unusual for a destination like that, but supply and demand says there is little else comparable in the Seychelles, so if you’re going to invest in property, you might as well invest in Eden Island.” ...cont. overleaf

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BEACHES ARE OFTEN QUIET.

cont. from page 41

Reselling has found investors a healthy return. “We’ve had about 60 properties resold. We’ve managed to achieve up to eight per cent annual compound growth in prices since launch in 2006. Somebody who bought a one-bedroom apartment in 2006 for $235,000 is getting $500,000 today for that same unit. And since it’s dollar based and the dollar is strong, that increases your purchasing power elsewhere.”

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Renting, too, is attractive from an investment perspective. “The rental pool also gives you a yield. We have a formalised rental pool that has about 160 properties in it, some of which are long term. There is a big demand for accommodation for expats who work in the Seychelles. Of those properties in long term rental pool are let on an ongoing basis. We’re actually looking for more. And investors that rent their properties can expect up to four per

cent net return in terms of yield. We can offer a two year guarantee on rentals, but beyond that we’re still confident that there will be a take up of rentals.”

Investors interested in Eden Island should take note—the project is almost complete, and once that development is finished, there is not much more that will be built. “We’re in our final phase.

We’re planing on building another small marina close by, and we really want to finish selling and building the last 70

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LUXURY TRAVEL

AN AERIAL VIEW OF THE MARINA.

units. We’re also turning our attention to finishing our commercial area, of which much has already been developed but there is also another area that has potential for more commercial offerings and residential.

The last 15 per cent of homes left for sale really offer very exciting investment opportunities. Eden Island may be nearly complete, but the years of enjoyment that the project will surely engender is just beginning. www.edenisland.sc

BOATS OF ALL SIZES ARE FOUND IN THE MARINA.

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PHOTO: ELENA TUBARO/FLICKR

LUXURY PRODUCTS

GWYNETH PALTROW'S ENTREPRENEURIAL SPIRIT HAS PUSHED HER BEYOND THE RED CARPET.

Luxury with A STORY

GWYNETH PALTROW’S HIGH-END PLATFORM GOOP HAS GROWN FROM A NEWSLETTER TO A GLOBAL LUXURY BRAND. WEALTH CAUGHT HER GIVING INSIGHT INTO THAT JOURNEY AT IBM AMPLIFY 2016 IN TAMPA, FLORIDA 44

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I’ve had a lot of mentors.

They are women who have moved the needle, or really inspired me, or are very brave in the presentation of who they are in the world.

SECRET ORIGINS

Originally Goop was going to just be a database for my friends. But with the birth of digital everything, I thought at some point, this could be a brand. What was fascinating to me was, as an actress, I had represented many other brands. They borrow your likeness, you represent them, you go out to the press and talk about the brand, and I thought it would be very interesting to leverage myself for my own brand. Now, I’m leveraging myself for myself. It’s been an interesting journey.

KEEPING IT RELEVANT

I think we are really working on this idea of contextual commerce. What that means for us is, the more we can articulate why we have a certain product on our site and what it means to us, the more the product moves. Because we started from that place of integration when it came to commerce, it has been very successful for us. The segment of our audience that both reads and shops converts at a very high rate, showing that contextual commerce works well. We keep it fresh because the DNA is the content. The product that we buy is folded into that structure of what story we are trying to tell. Culturally, how are we trying to create interesting conversation? I think we do that, because we are trying to learn ourselves, asking questions that we want the answers to, essentially.

LUXURY SKINCARE

When we monetised the site, and the brand started to really solidify, I thought about what goop-labelled product I really wanted to start with, as I always knew I wanted Goop-branded products. I saw a very wide space in this particular market. We wanted to create a product that had very high efficacy, but is also non-toxic. A lot of luxury skincare had a very high price point.

We wanted to see if we could make luxury skin care that was non-toxic and organic at a more direct-to-consumer price point.

GOOP HAS LAUNCHED ITS OWN BRANDED PRODUCTS ON ITS WEBSITE.

GOING GLOBAL

I think we seem a lot bigger than we are.

We’re just getting going. The skincare launch has been very successful for us.

As we scale, we have the bones for the size we want to get to, and there is a lot of levers we can pull along the way in terms of distribution channels. Thirty-three per cent of our readers are international. It’s something we talk about a lot because the more traditional models of distribution, such as brick and mortar stores, are interesting, but I’m more interested in bringing things directly to the consumer, and seeing if we can scale in that direction.

I want to see how far we can push it.

INSPIRATIONAL FIGURES

I’ve had a lot of mentors. They are women who have moved the needle, or really inspired me, or are very brave in the presentation of who they are in the world, whether it be somebody who I’ve met only a couple of times like Oprah, or someone I never met like Ginny Rommity, the Chairwoman, President and CEO of IBM, or even women like Meryl Streep. There are a lot of women who have taught me so much about not only business, but what it means to be a modern woman, and the importance of being fully integrated ...cont. overleaf

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LUXURY PRODUCTS

GOOP'S SKINCARE PRODUCT LINE HAS BEEN MET POSITIVELY.

cont. from page 45

and reconciled as a woman as you go and present yourself in business and in the world, whatever that might mean.

STAYING HEALTHY

I think the best way to stay healthy is state of mind. If you feel good about yourself, you’re less likely to eat terrible foods.

I’m a big believer in moderation—I like kale but I also like to enjoy myself. I think it’s really important to go easy on yourself. It’s also important to exercise a bit, and understand the nutritional value of foods, but you’ve got to have fun and enjoy your life too.

What our bodies really do not like are processed foods—food product—food you open in a package and eat. It is fine once and a while, and a lot of restaurant food has a lot

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of sodium—things that make it taste good but aren’t necessarily that good. The books I write say, I’m an incredibly busy working mother and throwing together a meal at the end of the day is important to me. I like to feed my kids, but want it to taste good. I do not want it to be a punishment. If I just give them a scoop of brown rice, that is not fun for anybody. I think whole foods are really important. It’s not that complicated.

This doesn’t mean that flavours cannot be absolutely delicious.

STAYING AUTHENTIC

Our marketing machine at Goop is pretty non-existent. We’re pretty homespun. But honestly I think that, for good or for bad, like us or hate us, we are who we are. We have a

lot of integrity in our words and our deeds. We have a lot of authenticity, and when people find that, you resonate with them. I think that is the way to do it.

My favourite way to interact with a customer is to meet them in person. When I do a book signing, or I do an appearance for our skincare products, I love the opportunity to meet someone face to face and get real feedback.

WHAT’S IN A NAME?

Goop is just just my initials. It’s funny—I was brainstorming a name back in the day, and I was talking to a brand genius named Peter Arnell, a good friend of mine, and he said, ‘every great internet company has two O’s in the name…’

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1/4/16 7/17/1612:33 4:34 PM PM

The original combined family intimacy with an upscale atmosphere, catering to a jet setter crowd.

Do it with Sass

DIFC’S SASS CAFÉ BRINGS THE GLITZ AND GLAMOUR OF MONACO TO DUBAI 48

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LUXURY RESTAURANTS

THE LOBSTER SALAD IS A STAND OUT.

SASS CAFÉ HAS ALREADY ATTRACTED THE WORLD’S ELITE IN ITS DUBAI LOCATION.

W

e’re about to be served our mains—a finely cooked steak for me, and a lobster salad for my companion—when the restaurant suddenly starts buzzing. It’s been reasonably sleepy for most of the evening, owing to the fact that it’s the middle of the week, and because tonight,

there’s a musical event that doesn’t get going until midnight. This means that the increased excitement at the venue is palpable—something’s going on, and diners are looking up from their food and craning their necks to see what it is.

Our eyes drift towards the raised reserved seating area in the middle of the restaurant, big enough to accommodate at least 20 guests. They’re all standing to welcome the woman of the moment— Eva Longoria, who’s taking a break from the demands of the Dubai Film Festival to celebrate her just-announced engagement. And she’s chosen Sass Café Dubai as the place to do it.

It’s an episode that illustrates just how well the Dubai branch of Sass Café has done to replicate the glamour of its Monaco-based counterpart. Located in the Dubai International Financial Centre (DIFC), it’s yet another internationally celebrated restaurant to have opened up shop in Dubai. The difference here is, while some of the Dubai franchises attempt to put their own mark on the menu, Sass Café has stayed true to its roots, replicating almost everything from the Monaco restaurant with which it shares the name.

This is no bad thing, because, along with a fabulous Mediterranean-Italian fusion menu, Sass Café offers all of the glitz and glamour of a fine Monaco eatery

cum piano bar. In a market like Dubai’s, this makes Sass Café pretty unique.

The original was founded in 1993 by father and son team Sassa and Samy Sass. It combined family intimacy with an upscale atmosphere, catering to a jet setter crowd.

As mentioned earlier, the food is billed as a blend of Mediterranean and Italian, though it’s easy to detect the French influence in the menu, too. Whichever influence you choose from, though, Sass Café does it well. On the starter menu, opt for the Burratta Cremosa with cherry tomatoes and olive oil, or else the foie gras terrine with apple onion jam and brioche. For the mains, you really can’t go wrong with the classic garlic panfriend beef tenderloin with butter sauce.

If you’re feeling more adventurous, the BBQ-grilled Canadian lobster with red chili and lime coriander butter is a real highlight.

Weirdly, though, it’s after dinner that Sass Café really comes to life. Slowly, the food is cleared away, the lights are dimmed and replaced with high-energy music, creating an atmosphere electrified by the contagious liveliness of Sass Cafe’s infamous piano bar entertainment.

The restaurant even flies its Monaco performers to Dubai regularly, meaning it’s always worth sticking around for the musical entertainment.

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HNWI CHAT

SITTING DOWN WITH

a restaurant mogul

EVGENY KUZIN, Founder and Managing Partner of Bulldozer Group, behind internationally acclaimed restaurants in Dubai such as Toko Downtown, Sass CafĂŠ, Novikov and the latest addition to the high end restaurants scene, Cipriani

What's your favorite suit?

Tailored suits from Max Girombelli.

What is your favourite car?

The Mercedes Maybach S600, which I own.

Which watch do you wear most often?

Audemars Piguet Royal Oak Offshore.

Which is your preferred travel destination?

Ibiza.

Do you have a favourite restaurant in all the world?

My latest restaurant, Cipriani.

What's your personal life philosophy?

Recognise that your time is limited, so think big.

What are your hobbies outside of work?

Tennis.

EVGENY KUZIN

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What's your proudest memory?

The birth of my first daughter, Ilizaveta.

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Wealth

NOVEMBER 2016 - DUBAI Wealth Sindigate house p50_HNWI chat.indd 51ad.indd 6

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Some bonds are too strong to break.

As one of the most stable corporate banks in the UAE, Bank of Sharjah has built relationships with some of the region’s largest businesses, striving to offer the most solid, dependable and long-run banking solutions.

HEAD OFFICE: SHARJAH • BRANCHES: GARHOUD - DUBAI MEDIA CITY - ABU DHABI - AL AIN

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PRIVATE BANKING WEALTH MANAGEMENT: DUBAI MOTOR CITY

www.bankofsharjah.com

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