THE 1% MAN
1- You are Dubai’s 1% man, you are clearly a marketing maverick and a -master at it. Mr. Sajan, how important a skill is this for business leaders and do you think enough business leaders pay attention to this?
I have been a strong believer of marketing. Since the early days of Danube Group, we’ve been using various marketing strategies to create an impact. Even with very few funds in the 1990s, we successfully marketed our brand. What we did was very interesting – we utilised small trucks and branded their tyres. It was visible and strong. It also gained popularity very quickly, making Danube Building Materials visible everywhere. Marketing is the most effective way to boost brand visibility and sales, especially in Dubai. Nowadays, social media stands out as the best owned marketing tool. Currently, we’re putting in our best foot forward to promote Danube Properties and we’ve been trying multiple mediums and platforms. You name it, we’ve done it. Danube Properties is reaching new heights, quite literally, every day!
JOURNEY SO FAR
2- What inspired you to start Danube Group, and how has your journey been so far?
I started off my career at a very early stage in life. I was 16 and studying in college in Mumbai when my father’s untimely death forced me to take up a part-time job to manage day-to-day family expenses. My father’s colleagues then asked me to work with them – as they understood our family’s needs. I continued my college studies and then worked in my father’s office to make both ends meet.
Eventually, my uncle, who ran a building materials shop in Kuwait, extended a lifeline by offering me a job once I turned 18. I embraced the opportunity and quickly adapted to the business, displaying leadership qualities as I helped expand its success. I helped expand my uncle’s business as it continued to flourish due to my efforts and that is when I saw leadership quality in me. I made the right decision at the right time and handled sales very efficiently. The Gulf War in 1991 compelled us to return to Mumbai, but I was determined to pursue my dream in Dubai.
A few months later I landed in Dubai to pursue my dream. By then, I realised that I was good at selling building materials and I had a natural talent for business. In Dubai, I started scouting for a building materials supply business for a company that helped me to build contacts and relationships. By 1993, I had built a strong network to launch my own business. This is when Danube Building Materials was born in Dubai as a small building materials supply business with a retail outlet and an office to manage the supply. The rest is history – and today we are the largest supplier of building materials in the GCC, and we also ventured into real estate development, retail, and hospitality, among other businesses.
DUBAI REAL ESTATE
3- How do you stay ahead of the competition in the rapidly changing business landscape of the Middle East?
There are a number of strategies behind Danube being at the top. First is our unique 1% payment plan which is also our USP and has created a wave of expats who always wanted to own a home in Dubai. And we also take pride in being the first developer to launch this revolutionary 1 percent payment plan in Dubai.
Second, all our homes are fully furnished. All the apartments are beautifully furnished from our own sister brand – Danube Home. Also, Danube building materials is the number 1 building materials company in the region. This ecosystem helps us deliver properties on time.
Third, 40+ amenities—all of this at an affordable price. Apart from the regular run of the mill amenities that other developers provide, like tennis courts, play areas and swimming pools, we go an extra mile and provide amenities like nanny on board, secretary on board, doctor on call, aquatic pool, among others.
4- How do you see the future of real estate in the Middle East, and what opportunities or challenges do you foresee?
The Middle East remains a robust destination for global real estate investment due to various factors such as world-class infrastructure and a positive growth outlook. Despite experiencing significant growth in the last two years, the real estate market especially in Dubai is relatively one-third of the sky-rocketing prices in London, Singapore, Hong Kong, and to some extent, Mumbai. This growth can be attributed to the path-breaking policies adopted by the UAE government, which have had a positive impact on not only the real estate sector but also other sectors of the economy.
The Dubai real estate market will continue to grow in the next 2 years by at least 40% and this inspires confidence among property buyers.
For the individual property buyers, quality, price, location, timely delivery, payment plan as well as developers’ credentials will make a significant difference in buyers’ choice.
5- What major trends are bound to influence the real estate sector in UAE in the future?
We believe that the UAE government’s policies to attract more investment such as Golden Visa, tax-free income as well as its status as the safest destination will be the key factors that will influence the real estate market in the coming years Of late, Dubai has seen a massive increase in investors from new markets such as Western Europe, attracted by higher returns. Most of the global studies have rated rental and capital returns offered by the Dubai market higher than the other major cities around the world. And this will be a key factor that will dictate the market.
6- Where do you see Dubai real estate in the next 5 years?
We expect the Dubai real estate market will see sustained growth over the next 5 years as it has matured and is no longer a transitional market. Also, the emirate’s population will continue to increase in the coming years as new job opportunities will be created as well as more high-net-worth individuals will flock to the emirate to cash in on higher capital and rental returns. In addition, the government’s pro-business and pro-investor policies will continue to attract fresh capital into the real estate sector. For example, the recent decision by Dubai to drop the AED 1 million down payment requirement will definitely give a fillip to the market as it gives wider access to buyers In 2023, we also witnessed rents sky-rocketing and it will continue to do so in 2024. The Dubai real estate market will continue to grow in the next 2 years by at least 20-25% and this will inspire further confidence among property buyers. So mark my words – the right time to invest in real estate is now!
DANUBE PROPERTIES
7- The concept of making luxury affordable is intriguing. Can you explain how your 1 percent per month payment plan works and how it benefits your customers?
1% percent payment is simple. You pay 20% upfront followed by the rest at 1% in the next 80 months. The 1% payment plan smoothens the process of buying by reducing the burden of paying a hefty amount upfront. It works for our buyers and they become super happy, especially, when they move into their apartments after having paid only 50-60 percent of the total amount, which saves their the rent – that goes directly into their savings.
We usually deliver homes after 36 months and sometimes before the promised delivery timeline. It is difficult, if not impossible, to beat this 1 percent monthly payment.
8- What’s next for Danube Group, and what new projects or ventures are you excited about?
We have recently launched Diamondz – a 65-storey skyscraper – a new jewel in our portfolio that will be built at the Uptown, JLT by 2027. Diamondz is Danube Properties’ 15th project which has been launched in the last 24 months. The project will be equipped with Salman Khan’s Being Strong Fitness Equipment. Our current portfolio includes 29 projects exceeding Dh 18 billion.
9- Your company has diversified interests in construction, real estate, and retail. Which sector excites you the most, and why?
This is like asking a father to choose from his children. From being the only and single employee to now a family of over 4500+, Danube Group has come a long way. Danube Group stands tall with several verticals, which include Danube Building Materials, Danube Home, Danube Properties, Alucopanel Middle East, Danube Hospitality Solutions, Starz Media (Filmfare), American Aesthetic Center, Casa Milano, and others. Among these verticals, Danube Building Materials is a pioneering company offering construction materials all across the region. It offers more than 50,000 products under one roof.
We have always believed in becoming a one-stop-shop and providing a complete and satisfactory experience to the customers just like Emirates Airlines – so right from building materials to furniture to putting your property on rent, we are at your service!
ENTREPRENEURIAL JOURNEY
10- What is your approach to leadership, and how do you motivate your team to achieve excellence? – We don’t have the written answer for this!
Hiring the right individuals is essential for the success of any business. If you were to visit my office at any time, you would notice the absence of clutter, including even a single piece of paper. Now you would ask why? Well, as a leader, I firmly believe in the power of delegation. By selecting the right people, assigning them tasks, and granting them the freedom to operate in their own manner, I facilitate a culture of empowerment. I do not micromanage their tasks. This approach enables them to assume ownership of their responsibilities, akin to entrepreneurs within the organization, and effectively manage their teams. It reminds me of the startup environment I once cultivated.
11- You have received numerous awards and recognition for your entrepreneurial achievements. Take us through a few.
Over the past six years, I’ve had the privilege of being nominated six times in the Forbes Middle East’s esteemed list of “Top Business Leaders in the UAE.”Among the notable recognitions, I was honored to receive the Mohammed Bin Rashid Al Maktoum Business Excellence Award from the Dubai Chamber of Commerce in 2012, alongside the prestigious Dubai Quality Award in the same year.
Additionally, I was bestowed with the Special Achievement Award by The Asia Pacific Enterprise Awards (APEA) in 2015, the Most Admired Retailer award by BARC Asia in 2018, and the Economic Times Global Indian Leaders title in 2022.
Furthermore, I’ve been recognized as one of the Top 100 Indian leaders in the UAE in 2020 and as one of the Top Indian Business Leaders in the Middle East in 2021 by Forbes Middle East. Notably, I was honored as one of the Icons of the UAE in 2023 by the India Today Group.
12- How do you balance business growth with social responsibility, and what initiatives has Danube Group undertaken in this regard?
I believe in the power of giving back to the society and Danube Group has always been actively involved in philanthropic and generous activities. We recently contributed AED 10 million to the Mother’s Endowment Campaign, an initiative by His Highness Sheikh Mohammed bin Rashid Al Maktoum. As a muslim, it gave immense satisfaction that I was able to create a mosque for the community in Dubai Studio City near our existing project Gemz in Furjan. We also continue to work towards our sustainability commitment in line with the sustainability narrative by the Dubai Government. We are fully committed to building green, comfortable, and sustainable homes and communities.
13- What advice would you give to young entrepreneurs who aspire to achieve success in the business world?
USP – Have an idea, a unique idea that sets you apart from the market and keeps you ahead of the market
Work experience – Research first and work in the same sector company to get the firsthand experience. Understand the market and then go ahead with your business idea.
Hiring – Make sure you hire the right people and delegate them with the work and give them the freedom to work according to themselves.
Luck and hard work are both important – Hard work is definitely a must. There’s no shortcut to success without the hard work. Many times an opportunity comes in front of you and that’s by chance, that’s by luck.
Rizwan Sajan | https://www.instagram.com/rizwan.sajan
Danube | https://www.instagram.com/danubeproperties
