Annemarie Retera, owner of Just Kidding, says the company wanted the warehouse look and feel, similar to what is found in Holland. Charles Crowell for The National
Annemarie Retera, owner of Just Kidding, says the company wanted the warehouse look and feel, similar to what is found in Holland. Charles Crowell for The National
Annemarie Retera, owner of Just Kidding, says the company wanted the warehouse look and feel, similar to what is found in Holland. Charles Crowell for The National
Annemarie Retera, owner of Just Kidding, says the company wanted the warehouse look and feel, similar to what is found in Holland. Charles Crowell for The National

Sites for success: choose the right location for your business


Alice Haine
  • English
  • Arabic

When the owners of JustKidding wanted to expand their business, they knew they needed to move the baby store to a new location.

Despite being located in an 8,600-square-foot warehouse in the heart of Dubai, it was not enough to satisfy the company's ambitious growth plans.

JustKidding had set up shop in Al Quoz - the industrial centre of Dubai and a location that required its average 30 customers a day to have a map to find it.

"It was enough to survive, but we needed to move to expand," says Annemarie Retera, a mother of two from the Netherlands, who launched JustKidding with her Dutch husband, Ben Boenk, and fellow parents Patrick and Sencha de Groot, from Holland and Korea respectively, in 2004. "So as soon as we had the opportunity to move, we did.

"We picked Al Quoz because we thought it was different from being in a mall. We wanted the warehouse look and feel because it was also something we had back home in Holland, where you have warehouses in business areas being rebuilt as stores - and besides that we needed a lot of space."

The JustKidding team opened their Al Quoz store in 2006, selling everything from high chairs, to strollers, maternity wear and accessories and featuring 20 individually designed nurseries.

"It was more successful than we could have ever envisioned because it became a shopping destination in its own right," says Mrs Retera. "There were no cafes in the area, so people only came to shop, which means that although footfall was not that high at the time, everybody bought.

"But we knew we needed to move to get more traffic because nobody passed by the store and thought, 'That's nice, let me have a look'. It was hard being in a position without a visible landmark, but it, of course, also has to do with your financing."

JustKidding's dilemma is a perfect example of how important location is for a new start-up, particularly in the UAE, where the nation's premier cities, Dubai and Abu Dhabi, expand and change on a daily basis.

Get the location right and a business can capitalise on its site; get it wrong and the decision may not only lose customers, but also the business as well. But for companies starting out, the emphasis is often more on keeping the budget down rather than splashing out on a premier position.

"It's location, location, location because where a business positions itself can make or break a business, especially in retail," says Vikas Arora, the senior commercial consultant for the estate agent Better Homes. "Any new business needs visibility combined with accessibility. So if a retail store or an art gallery stuck in the middle of an industrial zone, like Al Quoz, moves to a prime location, such as Umm Suqeim, it can make a huge difference to their revenue. They may see their rent double, so it's a big financial commitment, but one that invariably pays off."

This was a move taken by the JustKidding team, who picked a prime spot near Safa Park on the side of Sheikh Zayed Road, the main artery through Dubai. And with its proximity to several primary schools and nurseries, most of the passing traffic would be the brand's target market - mothers on their way to school to either drop off or pick up their children.

Their launch plan was scuppered, however, when the new building was not ready by January and with the Al Quoz rental contract up, the company needed to find a stop gap to house the store. They settled on a space in Dubai's Gold and Diamond, next to More Cafe - another popular spot for the store's target clientele.

"It was a temporary solution and despite being a third of the size of the Al Quoz store, there was an immediate difference in sales as our footfall more than doubled. That did not transfer into one-on-one sales, but it had an impact," Mrs Retera says.

"We were never intending to open two stores, but when the Al Safa store opened on May 12, we decided to keep both open as footfall has also doubled there. We will see what happens from here, but the difference in the number of customers from both locations has already been significant."

The JustKidding team based their relocation decision on being closer to their clientele, something location expert Mr Arora says is among the top 10 considerations any business should give when choosing the right spot to position their business.

"A business that chooses to set up their restaurant in the Karama area of Dubai is catering to a low- to middle-class segment with the demographics of what a Karama location represents, which is a South Asian and Filipino population," Mr Arora says. "A high-end footwear retailer or nursery in Umm Suqeim, on the other hand, would cater their quality and pricing to a more high-end clientele of Emiratis and expatriates."

This was something taken into account by Yunib Siddiqui, the owner and chief executive of Jones the Grocer, a luxury delicatessen and cafe. The store recently opened its fourth UAE store in a prime location in Al Manara, on Sheikh Zayed Road, in a glass unit built especially for the store and located near to the brand's upmarket clientele.

"It was a prominent location and I did some market research in the area, walking and driving around to speak to people living in the villas nearby. We saw some more construction coming up around us and with the access to Sheikh Zayed Road, it all started to look like a very good site," says Mr Siddiqui.

What made the location even more attractive was that, unlike most commercial spaces that are rented out as a shell, which means the tenant is responsible for the financial cost of fitting out the site to their specifications, the landlord wanted to incorporate the Jones the Grocer concept into the development process from the outset.

"The landlord wanted us as the anchor tenant, so it was built to accommodate our basic requirements from scratch. We were able to talk about the type of glass on the exterior; the flooring, access and parking. It was all done from an early planning stage before it was even a hole in the ground. And it's had an effect because before we even opened, we had tonnes of enquiries and people walking in and asking if we were open yet."

Mr Siddiqui already has experience of setting up stores in the UAE. His first opened in the Al Mamoura district of Abu Dhabi in 2009, his second in Al Raha Gardens and his third in Khalidiya earlier this year.

While the first store caters to a business community and the second to a residential area, Mr Siddiqui says his least successful store has been in Khalidiya.

"The Khalidiya site is the trickiest one - the problem there is that it's a bit of a construction zone around it, so we had to take a long-term view on that site. There are four or five towers coming in, which will be great in the future, but it doesn't make it very accessible now. The site is not performing in terms of expectations."

What is clear from both JustKidding and Jones the Grocer's stories is that positioning on Sheikh Zayed Road, the main road through Dubai, was a significant and lucrative step.

The road literally cuts through the heart of the city, offering offices and retailers the opportunity to put prominent signage up to advertise their presence. But getting a location right first time is hard, particularly in a nation that has witnessed such enormous expansion over the past 10 years.

With dozens of new residential communities and commercial hubs emerging in Dubai and Abu Dhabi, a business can pick a prominent location and find that five years down the line the city has shifted. This forces companies to think ahead - particularly as the two cities appear to be developing towards each other.

Over the past 10 years, Dubai has seen a whole host of communities - residential and commercial - emerging, including Media City, Internet City and the Marina. Similarly, Abu Dhabi has progressed towards Dubai with developments such as Yas Island, Al Reef Villas and Khalifa City, which is why it makes sense for new businesses to locate themselves in properties that give them easy access to both markets.

This is the scenario for Adventure HQ - a 30,000 sq ft outdoor adventure superstore launched by the Sharaf Group last month in the Times Square Center on Sheikh Zayed Road.

"The geographic location is fantastic because it's got the local Emirati contingent living in Jumeirah, high-net-worth western expats in Jumeirah plus the upwardly mobile western expats in the Marina and Old Town area, which are all just 10 minutes from Times Square," says Sam Whittam, the founder and general manager. "And we will attract a lot of people from Abu Dhabi because it's easy to take Exit 42 off Sheikh Zayed Road and pull straight into the centre."

Adventure HQ has already transformed Times Square - also owned by the Sharaf Group - knocking out 10 fashion retailers to accommodate the new venture and creating a climbing wall and high-wire adventure trail to help attract visitors to the store and the mall. And the choice of location obviously works. In the first week of business, there was a 30 per cent increase in traffic to the mall and the electronics retailer Sharaf DG experienced a 25 per cent increase in footfall.

"It means that people are not only coming to see us, but more are coming also to the mall itself," Mr Whittam says. "Times Square has a lot of parking, which, for a destination store like ours, with bulky goods, makes it very easy for people to come in, shop and get out. If we were in Dubai Mall or Mall of the Emirates, sure we'd get more footfall, but they would not specifically be our target market. You'd get people wandering in and not buying anything, so we may not be able to give that same level of service that we offer here."

And Mr Whittam believes it's all about getting it right the first time.

"We could have done a concept like this in a shed out the back of Al Quoz and had a big open ceiling, but it wouldn't have had the polish that we have here because it's a lovely centre. And we picked this location for good business reasons - to create a destination centre."

This philosophy is certainly something shared by JustKidding's Mrs Retera, who hopes to achieve the same success for the company's first Abu Dhabi store - set to open in 2012.

"Location is very important to Abu Dhabi because I know from people living there that Abu Dhabi people don't like to drive too far, so it needs to be an easily accessible location. We haven't found the right spot yet, but we want to get it right first time. We have to move faster now."

Top Tips

Vikas Arora, a senior commercial consultant for Better Homes, identifies the key factors businesses need to consider when finding a suitable site for their company.

1. Legal status Your licence will decide early on where you can locate your business. Quite simply, you can either be in a free zone or you can be outside a free zone

2. Budget You can either afford your dream location or you can't, so your budget will determine both the location and the quality of the building

3. Size How big you want your office or retail space also determines your budget and location and companies need to factor in their future expansion plans to ensure they do not have to make a costly move to bigger premises within two to three years

4. Visibility Having a prominent presence in your chosen location defines who you are and the product line you are offering to your clientele

5. Accessibility Make sure you have easy access to a major road - something that is necessary for your clients, vendors and your staff

6. Facilities Ideally, you need adequate parking and to be located near restaurants, cafes and a grocery store to keep both your clients and your staff happy

7. Transport Proximity to the metro, other public transport and access to taxis is, again, crucial for both clients and employees

8. Stick with your speciality Establish your business in a shorter time span by setting it up in a hub specific to your product, such as a media company in Media City

9. Proximity to clients Position your business in close proximity to the people whose needs you target

10. The landlord Choose a landlord who has experience in leasing properties, understands the ongoing requirements of tenants and is flexible in the length of the leases he is willing to offer. This gives you options during time of expansion or a downturn

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Email sent to Uber team from chief executive Dara Khosrowshahi

From: Dara

To: Team@

Date: March 25, 2019 at 11:45pm PT

Subj: Accelerating in the Middle East

Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.

Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.

I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.

This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.

It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.

Uber on,

Dara

Business Insights
  • Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
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Scoreline

Australia 2-1 Thailand

Australia: Juric 69', Leckie 86'
Thailand: Pokklaw 82'

Yahya Al Ghassani's bio

Date of birth: April 18, 1998

Playing position: Winger

Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda

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.”

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UAE players with central contracts

Rohan Mustafa, Ashfaq Ahmed, Chirag Suri, Rameez Shahzad, Shaiman Anwar, Adnan Mufti, Mohammed Usman, Ghulam Shabbir, Ahmed Raza, Qadeer Ahmed, Amir Hayat, Mohammed Naveed and Imran Haider.

Manchester City (0) v Liverpool (3)

Uefa Champions League, quarter-final, second leg

Where: Etihad Stadium
When: Tuesday, 10.45pm
Live on beIN Sports HD

THE%20HOLDOVERS
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EAlexander%20Payne%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Paul%20Giamatti%2C%20Da'Vine%20Joy%20Randolph%2C%20Dominic%20Sessa%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204.5%2F5%3C%2Fp%3E%0A
Gulf Under 19s final

Dubai College A 50-12 Dubai College B

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Citadel: Honey Bunny first episode

Directors: Raj & DK

Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

Rating: 4/5

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Tentative schedule of 2017/18 Ashes series

1st Test November 23-27, The Gabba, Brisbane

2nd Test December 2-6, Adelaide Oval, Adelaide

3rd Test Dcember 14-18, Waca, Perth

4th Test December 26-30, Melbourne Cricket Ground, Melbourne

5th Test January 4-8, Sydney Cricket Ground, Sydney

World Cricket League Division 2

In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.

UAE fixtures

Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final

Top investing tips for UAE residents in 2021

Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.

Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.

Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.

Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.

Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.

Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.

Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”

Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI. 

MATCH INFO

Arsenal 1 (Aubameyang 12’) Liverpool 1 (Minamino 73’)

Arsenal win 5-4 on penalties

Man of the Match: Ainsley Maitland-Niles (Arsenal)

MATCH INFO

Norwich City 0 Southampton 3 (Ings 49', Armstrong 54', Redmond 79')

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