Jassim Albastaki offers some of his trademark products at the Gulfood trade exhibition in Dubai late last month. Satish Kumar / The National
Jassim Albastaki offers some of his trademark products at the Gulfood trade exhibition in Dubai late last month. Satish Kumar / The National
Jassim Albastaki offers some of his trademark products at the Gulfood trade exhibition in Dubai late last month. Satish Kumar / The National
Jassim Albastaki offers some of his trademark products at the Gulfood trade exhibition in Dubai late last month. Satish Kumar / The National

Cafe2go to for the camel


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At the end of 2009, Jassim Albastaki was casting around for business ideas. Getting the master franchise for one of the food and beverage chains not already in the UAE seemed a good way to go. But of the four companies he contacted, two failed to return his calls; one said no outright; and the fourth shocked him with its high franchise fee.

He decided to invest his money in creating and building his own brand.

"I will create a unique concept," he recalls thinking. "I will create a brand for the UAE and go global."

When he analysed the market, he saw that the major coffee chains all had very similar offerings, but in Asia the chains used soya milk and rice milk. He decided to draw on his Middle Eastern heritage and do something with camel milk. He would call his chain Cafe2go and introduce a branded camel milk called Camellos.

"My unique concept [is] camel products: from the milk to the meat, drink to food," says Mr Albastaki, who was an exhibitor at the Gulfood trade show in Dubai last month. "UK, US investors will take a chance [on me because] I am giving them something different. There, they cannot have a camelccino."

Or, for that matter, a "camel juice" - a blend of camel milk and the customer's choice of orange, lemon or strawberry juice.

Two generations ago, consumption of camel milk was common, according to Mr Albastaki. But slowly this has changed.

The entrepreneur was yet more firmly convinced of his concept when he realised how healthy camel milk is compared with cow's milk. It's much lower in fat, has 10 times more iron and three times more vitamin C.

Concept decided upon, the next hurdle was making it palatable. Camel milk is quite salty and has a different density from cow's milk. But Mr Albastaki created a secret blend at his coffee factory in Spain (another part of his business is supplying hotels and restaurants in the Middle East with coffee and coffee machines). He also experimented with the milk - temperature, steaming technique and the like.

The result was a beverage as delicious as a regular coffee, Mr Albastaki says. He also started experimenting with camel meat - especially how to make it tender - so as to be able to introduce a range of camel snacks: fajitas, mortadella, hot dogs and burgers.

Camel meat is considered one of the healthiest red meats with low cholesterol.

While this experimentation was initially tricky, the benefit is that it now hinders competitors who are trying to copy his idea.

At the same time as he was developing his products, Mr Albastaki was engaged in an epic clash of wills with officials at Dubai Municipality, the Roads and Transport Authority and the Department of Economic Development, who were resistant to his idea of a mobile coffee shop, it never having been done before in Dubai.

At a recent conference on entrepreneurship, Mr Albastaki recalled his 11-month war of bureaucratic attrition and concluded by saying: "Never think negatively. Always stay positive. You should [guide] each government official; he should not guide you."

He was insistent about the mobile coffee shop because, again, it was a new idea for the UAE, it meant being able to reach a wider range of customers and it meant offering another element of flexibility to those who might want to invest in his franchise.

"I'm flexible in size, investment, menu - that is also part of the business concept," he says. "We have kiosks, pushcarts, big outlets."

As well as the mobile unit, Cafe2go has branches in Dubai in the Murooj Rotana hotel, on Sheikh Zayed Road and, within two months, in the Dubai Airport Freezone. This will be a drive-through.

Perhaps the ultimate measure of Mr Albastaki's success is that the man who was rejected as a franchisee in 2009 has become a franchiser himself.

He has already sold Cafe2go franchises for Qatar and Libya, and talks are in the "final stages" for deals in Bahrain, Saudi Arabia, Malaysia and Singapore. There is also interest in Egypt.

"We have so many people interested," he says. Getting to "the US, UK, Europe with my brand - that is not difficult. I have a nice, unique product concept and business concept. I am bringing an Arabian touch in a modern style."

Tree of Hell

Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla

Director: Raed Zeno

Rating: 4/5

Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.

Based: Riyadh

Offices: UAE, Vietnam and Germany

Founded: September, 2020

Number of employees: 70

Sector: FinTech, online payment solutions

Funding to date: $116m in two funding rounds  

Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices

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Who has lived at The Bishops Avenue?
  • George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
  • Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
  • Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
  • Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills. 
Hunting park to luxury living
  • Land was originally the Bishop of London's hunting park, hence the name
  • The road was laid out in the mid 19th Century, meandering through woodland and farmland
  • Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds

 

Tales of Yusuf Tadros

Adel Esmat (translated by Mandy McClure)

Hoopoe

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The details

Colette

Director: Wash Westmoreland

Starring: Keira Knightley, Dominic West

Our take: 3/5

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”