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OMNIYAT announces new corporate structure and $27 billion portfolio target

As per the growth strategy, OMNIYAT plans to increase its total ultra-luxury real estate portfolio value to $13.6 billion (AED 50 billion)

OMNIYAT announces new corporate structure and $27 billion portfolio target

The Lana, the first Dorchester Collection hotel in the Middle East and the tenth worldwide, takes inspiration from contemporary minimalism and the UAE’s rich cultural heritage. Emphasising spaciousness and natural light, the hotel radiates a sense of tranquillity and sophistication. And recently, the hotel served as the exquisite setting for an exclusive roundtable event, where OMNIYAT made a significant announcement. The choice of venue was fitting too, as OMNIYAT had opened the doors of this prestigious property along the Marasi Bay Marina, boasting elegant organic curves, verdant green spaces, and fluid layouts.

So, as we all took our seats, Founder and Executive Chairman Mahdi Amjad announced, “We are pleased to announce the launch of OMNIYAT Group, our newly-formed corporate structure. Over the next five years, we have set a target of AED 100 billion for our total group portfolio, with AED 50 billion committed to new ventures in various real estate sectors. As part of this strategy, we will be launching a new real estate company in Q3 2024, with an emphasis on capturing opportunities across multiple market segments. With a focus on understanding market demands and catering to a wide range of audiences, our group remains dedicated to achieving our vision of being the leader in all categories.”

He further emphasised the fact that every company and brand that OMNIYAT Group will invest in will adhere to the same values and principles that they have established at OMNIYAT. “I believe that each brand should strive to excel in its respective segment, just as OMNIYAT excels in the ultra-luxury market. By maintaining their own unique characteristics, leadership, and management styles, our portfolio companies will be able to cater to their specific market segments effectively and produce top-tier assets.”

How does the company plan to fund this expansion? “We have been consistently delivering and performing, resulting in a robust cash flow. We are grateful for the strong support received from local banks and institutions, as well as from our investment arm that collaborates with us on various projects. Plans are underway to enter the capital market next year, with discussions ongoing about issuing the group’s first bond. Moreover, various capital sources have been identified to facilitate this anticipated growth. Our balance sheet has also more than doubled in 2023, and we anticipate further growth of 40% in 2024,” Amjad explained.

As the discussion continued, a key topic of debate arose regarding the group’s high stake in the growth of Dubai’s real estate market, specifically the ultra-luxury segment. The question at hand therefore was the anticipated performance of the real estate market and whether there are concerns about a potential downturn or bust arising from global uncertainty.

Answering this question, Amjad stated, “Real estate investment is a long-term business model, regardless of market cycles. UAE, especially Dubai have a strong track record and vision for growth, creating an exceptional living experience that attracts global citizens. Particularly in the ultra-luxury segment, Dubai has proven to be an attractive destination for living, working, and investing. With a focus on the long-term view, I believe that the ultra-luxury market in Dubai will continue to grow and attract wealthy individuals.”

He continued, “The key to success in real estate lies in being in the right location, producing the right asset class that is unique and well capitalised to see the cycle through. Besides, Dubai offers competitive real estate prices compared to other capital cities like Hong Kong, Singapore, New York, Paris, and London. Hence, with the right strategy and resources, Dubai’s real estate market holds great potential for growth and profit.”

Based on the answers, the next question, which arose was regarding the demographic of buyers involved in the ultra-luxury real estate market and whether Amjad foresees any shifts in dynamics in the future.

He replied, “I cannot talk about the market on the whole but at OMNIYAT, GCC customers make up the biggest buyers for us. During a specific period in the business cycle, buyers from Eastern Europe experienced significant growth, however, what was most unexpected for me personally, and something I had never imagined possible in my lifetime, was the influx of Western European customers to Dubai. And while the Russian investors have always made their foray into Dubai since my start in 2005, and it grew significantly at one point as well, it never surpassed other customer bases to become the number one.”

In wrapping up the roundtable discussion, Amjad was posed with the question of whether there are plans to expand beyond the boundaries of the region in the next five years as part of the company’s growth strategy. He responded by emphasising that the brand is rooted in Dubai and will continue to prioritise growth within the Dubai market, expanding to the UAE and then the broader region within the specified timeframe.