The challenge of opening a mega gym in Dubai

Microsoft executive Ali El Amine's new 11,000 square metre sports complex in Dubai marks the rise of the mega gym in the UAE. But such ventures are not without their challenges.

Microsoft executive Ali El Amine opened FitRepublik in Dubai Sports City in January. Satish Kumar / The National

When the Microsoft executive Ali El Amine developed a passion for CrossFit in 2011, he pondered opening a chain of affiliates across the Middle East to cater to demand for the fitness programme.

But less than two weeks after starting his business plan, he realised it was a difficult business model to make profitable. CrossFit centres, like other types of gyms, are sensitive to industry trends, he discovered. There may be some committed CrossFit enthusiasts in it for the long term, but others will quickly move on to new fitness fads. The second challenge is that many gyms run at low capacity: they may be buzzing before and after office hours, but during the day, when clients are at work, they are empty.

“They all struggle because of high costs,” Mr El Amine, 39, says. “Rent is expensive and getting qualified people is expensive. So you get very fancy places with very weak personnel; or you find outstanding personnel in very limited spaces.” Undeterred, the businessman explored other ideas and this year finally achieved his goal — opening FitRepublik in Dubai Sports City in January.

The state-of-the art complex spans more than 11,000 square metres and includes an Olympic-sized swimming pool; 300 pieces of cardio, strengthening and training equipment; a mixed martial arts zone and a gymnastics centre kitted out with bars, beam, vault, mats and four foam pits.

Fadi Ghandour and Arif Naqvi, the founders of the UAE logistics company Aramex and Abraaj Capital respectively, are the main financial backers; Mr El Amine declined to say how much they invested.

It’s the “one stop shop” Mr El Amine says he set out to create, catering for all walks of life from professional athletes to children.

The entrepreneur, who is also the consumer channel lead for Microsoft in the Arabian Gulf, hopes to benefit from economies of scale (paying for one big place works out less than paying for numerous smaller spaces, he says) and centralising the IT, human resources and operations functions. He is also managing customer flow to ensure the complex remains busy throughout the day.

The main building, housing the swimming pool, is light and airy and stationary bikes are set up alongside the pool for the convenience of triathletes. There is a bank of seats for spectators and a juice bar; special acoustics cut out the echoes that are usually heard poolside, making it easy for spectating parents to socialise.

FitRepublik already has 2,800 members, exceeding initial projections — a testament to the nation’s growing appetite for exercise. Joint studies from the Dubai Sports Council and the Dubai Health Authority show the emirate’s residents upping physical exercise.

In 2009, just 34.4 per cent of residents engaged in physical activity. That figure rose to 41.9 per cent in 2013.

One of the major recommendations of the 2009 report was that more sports clubs should be built to encourage residents to exercise.

Mr El Amine has hired staff with national and international accolades. Marian Stoican, the head gymnastics coach, was a member of the Romanian Olympic gymnastics team and European vault champion.

“Our main objective is to make people better versions of themselves, whether they aspire to be professional athletes or lose a few kilos,” he says.

But are more mega-gyms of this scale feasible?

“Sporting facilities like this have been lacking for quite some time and I see room for more around the UAE,” says Guillaume Mariole, the managing director of Ignite, the UAE’s first provider of corporate wellness programmes. However, their success will be determined by their location and accessibility. Training always has its fads and trends, equipment will need to be upgraded and maintained, depreciation needs to be factored. This I fear might be a challenge.” For now, Mr El Amine is working with the management team actively absorbing customer feedback.

Parents have requested a study area for children to do schoolwork between exercise classes and clients are also asking for sports not yet offered.

“We never thought adults would want to do gymnastics,” says Mr El Almine, who is currently working on improving his own backflips.

FitRepublik’s team plans to expand to other locations and markets, but for now the focus is the Sports City venue.

“We like to walk before we run,” adds Mr El Amine.

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