The small engineering company Khalaf Al Habtoor developed in 1970 has now morphed into a modern-day global empire. Satish Kumar / The National
The small engineering company Khalaf Al Habtoor developed in 1970 has now morphed into a modern-day global empire. Satish Kumar / The National

Khalaf Al Habtoor: Discipline and resilience keys to success



The self-made billionaire Khalaf Al Habtoor is the chairman of one of the most successful conglomerates in the Arabian Gulf – the Al Habtoor Group. His early ambitions were modest – to move his family out of their palm frond hut into a real house, and some day to own a shop. The small engineering company he developed in 1970 has now morphed into a modern-day global empire, encompassing hotels, property, construction, motors, publishing and education. His latest mega-project, the US$3 billion Al Habtoor City complex is set for completion in 2016. Tomorrow, Mr Al Habtoor, 64, will be discussing Dubai’s development at the Emirates Literature Festival. Here, he talks about his life as an entrepreneur and his future ambitions.

You built your business from scratch. What’s your advice for budding entrepreneurs?

Have no regrets. You must learn from your failures as much as your successes. It is very important to do feasibility studies and apply due diligence before you embark on something. Make sure you know the sector you are investing in, and hire the right people with the credentials to do the job. Another equally important quality is discipline. I am a creature of habit, and never veer from my path. You learn from your own pocket; only do the business you know and don’t get involved in businesses you don’t know.

In your autobiography you said “I have achieved a lot, but this is only a fraction of what I plan to achieve”. What are those plans?

I have many ideas in my head that just need executing, and in business, the sky is the limit. But my main focus is on philanthropic work, on finding new ways to expand more in the UAE and beyond, mainly in the fields of research and education. The Al Habtoor Group is growing from strength to strength. Last year we completed and opened the Waldorf Astoria Dubai Palm Jumeirah - Hilton's luxury brand. We also launched Al Habtoor City, soon to be a major landmark in Dubai. It will encompass three top-rated hotels with three luxury residential towers, a marina on the Dubai Water Canal, a European-style Boulevard and a permanent Franco Dragone theatre production. This is very unique to Dubai - and the entire region. Our motors division expanded significantly, taking on two top Chinese brands and introducing three new tyre makers to the market. These are just a few examples of what we are capable of doing in 12 months. I don't want to give away my plans for the future, but they are on a similar scale to what we are doing now. I am not one to be complacent. Don't forget Dubai has now won the Expo 2020. This has created endless opportunities for the entire UAE and the Al Habtoor Group. On top of this, I am always eyeing up opportunities abroad.

How important is philanthropy in your life?

Very important. I am fortunate enough that through a lot of hard work I am in the position I am in and can more than provide for my family. I do whatever I can to help others. I strongly believe in peace, bridging communities, promoting sports and education and research. Without the support of the government, or businessmen and women, how can a country develop? Look at Dubai Healthcare City – the government has developed a state-of-the-art centre with research facilities that are first class. But we still need to ensure sustainability and that requires investment. Look at our neighbours, what is going on in Syria or Palestine? We can’t turn our back on these people. We all must do whatever we can within our power to help those in need.

How do you decide which charities to support?

I set up the Khalaf Ahmad Al Habtoor Foundation to bring all my philanthropic endeavours under one roof in a coordinated way. I believe I am the first if not the only businessman in the Arab World to give a 20 per cent stake of my businesses to a charitable foundation. The [foundation] is a 20 per cent shareholder in the Al Habtoor Group. All the philanthropic work I have done is focused on interfaith and inter-civilisation communication, research and education without any discrimination based on race, colour or religion. These fields are my top priority; along with improving the standard of living for UAE citizens.

How do you unwind after work?

I have 25 grandchildren. They are my oxygen – they encourage me to keep going. Plus, I play tennis every day, and have even played some of the world’s top players.

What is your favourite luxury purchase?

My iPhone. I don’t know if you can count it as a luxury but it keeps me connected to work, family and friends. My iPhone is my portable office.

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COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
Allardyce's management career

Clubs (10) - Limerick (1991-1992), Perston North End (1992), Blackpool (1994-1996), Notts County (1997-1999), Bolton Wanderers (1999-2007), Newcastle United (2007-2008), Blackburn Rovers (2008-2010), West Ham United (2011-2015), Sunderland (2016), Crystal Palace (2016-2017)

Countries (1) - England (2016)

How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The biog

Favourite food: Fish and seafood

Favourite hobby: Socialising with friends

Favourite quote: You only get out what you put in!

Favourite country to visit: Italy

Favourite film: Lock Stock and Two Smoking Barrels.

Family: We all have one!

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Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

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