Ask anybody from Abu Dhabi to Zanzibar. The name Virgin is synonymous in the business world with Sir Richard Branson, the British entrepreneur who has made an incredible career, and a US$5 billion (Dh18.4bn) business, out of selling dreams.
He might call it a "branded venture capital investor", but that is what it really does - it sells a dream to consumers, and occasionally to international investors.
The dream has morphed over the years, from hyper-hip music in the 1970s, to super-cool air travel in the 1980s, to fast, efficient rail travel in the 1990s. There have been other dreams on offer too - shopping, drinks, bridal wear, mobile phones, holidays (including Zanzibar) and financial services - but they all have the same unique selling point: an image of youth and rebellious adventure, slightly wacky but ultimately reliable. Virgin shows that the next generation is as good as the old-timers at business. The kids are all right, it says. They can put the show on in the barn.
The brand mirrors the image of the man himself. Though he hits 60 his next birthday, he still gives the impression that he has his finger on the pulse of "youth" in a way no other entrepreneur can master. He will invariably dress casually, in jeans and jumper, though occasionally in a full bridal gown or colourful national costume of whatever country he is launching in that day. He is as ready to spin a flight attendant in his arms, or join the boys for serious drinks at the bar, as he is to attend a board meeting.
The Branson achievement has been to sell this dream to successive generations of consumers and investors without altering the basic image. Virgin was "cool" in the 1970s, and for some people at least, it is still "cool" today. His business is a textbook study of branding and marketing in a changing world.
The classic Virgin formula has proved irresistible for punters from the US to Singapore, and last week it showed it had just as much pulling power in the Gulf, with the $280 million deal with the UAE investment company Aabar. Even as Virgin dreams go, this is the ultimate - a trip to the stars onboard the Virgin Galactic spacecraft. Per Abu Dhabi Ad Astra, you might say.
A couple of years back, I attended a rather glitzy party at the Roof Gardens restaurant in London's swanky Kensington. The bash was Branson's personal "thank you" to Will Whitehorn, who had been his faithful communications mouthpiece for many years, but who was moving on to become president of Galactic.
It was a Virgin bash par excellence. Grey-haired investment bankers mingled with Virgin flight attendants in daring evening attire; the drinks flowed and the music got louder. Whitehorn eventually gave his farewell speech in an astronaut suit from a podium arched by digital starlight. This was the Virgin dream in all its intensity.
That kind of vision must have been overpowering for Aabar, part of the International Petroleum Investment Company run by Sheikh Mansour bin Zayed Al Nahyan. Its $280 million outlay for a 32 per cent stake values Galactic at an eye-watering $900 million, despite the fact that no space tourists have yet made a trip beyond the stratosphere and the first flight is still two years off.
Virgin says some 300 people have signed up for a flight, and put down deposits for the trip, which will cost £200,000 each. Virgin has already sunk £100 million into Galactic to get where it is today, with the prototype SpaceShipTwo vehicle. The UAE will get the rights to Virgin space tourism in the region, and Abu Dhabi will also invest $100 million in a satellite-launch facility in the Emirates.
All exciting, cutting-edge stuff, a classic of the Virgin genre, and on the 40th anniversary of the moon landings, it must have been difficult not to get carried away with the astromania of it all.
The deal fits another Virgin pattern too. Virgin Atlantic, the global airline and still Branson's baby, is 49 per cent owned by Singapore Airlines; Virgin Trains is only 51 per cent owned by Branson's group, with the balance in a UK transport company. There are many other examples of Branson selling equity stakes in his businesses to well-heeled investors, while maintaining the impression that they still have the Virgin "touch".
It would be mean to disillusion starry-eyed Gulf investors, and there is no doubt the project is a mould-breaking, exciting enterprise that deserves success. But it must be pointed out that Virgin dreams do not always come true, and sometimes verge on the nightmarish, for consumers and investors alike.
In particular, Branson has not had much luck when his companies bravely go onto the world's stock markets. His formative experience with Virgin Group in the 1980s was a disaster, and since then there have been others whose return for investors has hardly been stellar - Virgin Victory, Virgin Express, Virgin Media and Virgin Blue come to mind. Just last week he sold his American company Virgin Mobile for less than half its flotation value.
Abu Dhabi should reach for the stars, by all means, but the financial people should keep their feet on the ground.
fkane@thenational.ae
The five pillars of Islam
OIL PLEDGE
At the start of Russia's invasion, IEA member countries held 1.5 billion barrels in public reserves and about 575 million barrels under obligations with industry, according to the agency's website. The two collective actions of the IEA this year of 62.7 million barrels, which was agreed on March 1, and this week's 120 million barrels amount to 9 per cent of total emergency reserves, it added.
The specs: 2018 Honda City
Price, base: From Dh57,000
Engine: 1.5L, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 118hp @ 6,600rpm
Torque: 146Nm @ 4,600rpm
Fuel economy, combined: 5.8L / 100km
More coverage from the Future Forum
COMPANY PROFILE
Company name: Klipit
Started: 2022
Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant
Based: Dubai, UAE
Industry: Digital receipts, finance, blockchain
Funding: $4 million
Investors: Privately/self-funded
'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press
England squad
Goalkeepers: Jordan Pickford, Nick Pope, Aaron Ramsdale
Defenders: Trent Alexander-Arnold, Conor Coady, Marc Guehi, Reece James, Harry Maguire, Tyrone Mings, Luke Shaw, John Stones, Ben White
Midfielders: Jude Bellingham, Conor Gallagher, Mason Mount, Jordan Henderson, Declan Rice, James Ward-Prowse
Forwards: Tammy Abraham, Phil Foden, Jack Grealish, Harry Kane, Bukayo Saka, Emile Smith Rowe, Raheem Sterling
Killing of Qassem Suleimani
Company Profile
Company name: Hoopla
Date started: March 2023
Founder: Jacqueline Perrottet
Based: Dubai
Number of staff: 10
Investment stage: Pre-seed
Investment required: $500,000
The studios taking part (so far)
- Punch
- Vogue Fitness
- Sweat
- Bodytree Studio
- The Hot House
- The Room
- Inspire Sports (Ladies Only)
- Cryo
2.0
Director: S Shankar
Producer: Lyca Productions; presented by Dharma Films
Cast: Rajnikanth, Akshay Kumar, Amy Jackson, Sudhanshu Pandey
Rating: 3.5/5 stars
Chef Nobu's advice for eating sushi
“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
“The ginger should be eaten separately as a palette cleanser and used to clear the mouth when switching between different pieces of fish.”
Fight card
1. Featherweight 66kg: Ben Lucas (AUS) v Ibrahim Kendil (EGY)
2. Lightweight 70kg: Mohammed Kareem Aljnan (SYR) v Alphonse Besala (CMR)
3. Welterweight 77kg:Marcos Costa (BRA) v Abdelhakim Wahid (MAR)
4. Lightweight 70kg: Omar Ramadan (EGY) v Abdimitalipov Atabek (KGZ)
5. Featherweight 66kg: Ahmed Al Darmaki (UAE) v Kagimu Kigga (UGA)
6. Catchweight 85kg: Ibrahim El Sawi (EGY) v Iuri Fraga (BRA)
7. Featherweight 66kg: Yousef Al Husani (UAE) v Mohamed Allam (EGY)
8. Catchweight 73kg: Mostafa Radi (PAL) v Ahmed Abdelraouf of Egypt (EGY)
9. Featherweight 66kg: Jaures Dea (CMR) v Andre Pinheiro (BRA)
10. Catchweight 90kg: Tarek Suleiman (SYR) v Juscelino Ferreira (BRA)
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
HWJN
Director: Yasir Alyasiri
Starring: Baraa Alem, Nour Alkhadra, Alanoud Saud
Rating: 3/5
The specs
Engine: 2.2-litre, turbodiesel
Transmission: 6-speed auto
Power: 160hp
Torque: 385Nm
Price: Dh116,900
On sale: now
MATCH INFO
Sheffield United 2 Bournemouth 1
United: Sharp (45+2'), Lundstram (84')
Bournemouth: C Wilson (13')
Man of the Match: Jack O’Connell (Sheffield United)
Company profile
Company: Splintr
Started: May 2019
Founders: Mohammad AlMheiri and Badr AlBadr
Based: Dubai and Riyadh
Sector: payments / FinTech
Size: 10 employees
Initial investment: undisclosed seven-figure sum / pre-seed
Stage: seed
Investors: angel investors
The biog
Age: 30
Position: Senior lab superintendent at Emirates Global Aluminium
Education: Bachelor of science in chemical engineering, post graduate degree in light metal reduction technology
Favourite part of job: The challenge, because it is challenging
Favourite quote: “Be the change you wish to see in the world,” Gandi
MATCH INFO
Uefa Champions League last 16, first leg
Liverpool v Bayern Munich, midnight, Wednesday, BeIN Sports
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50