After earning his degree in Management Information Systems, Ali Al Rahma began working at a bank in Dubai. Within a few months he realised that although there were opportunities in financial services, he was more interested in starting his own real estate company. He entered the industry in the early 1990s before the real estate market took off.
Al Rahma believed at the time that there was enormous growth potential in real estate brokerage. However, he admits, he had no idea it would be this big or would grow as quickly as it has in the past few years. He attributes the real estate boom to the vision and leadership of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and to hard-working people who believe in a vision and have contributed to the development of the city.
As a child, he spent a lot of time with his father who was the commercial consul for Oman in Dubai. Al Rahma also worked in his grandfather's electronics store from the age of 10, earning a reputation amongst customers as a tough negotiator. In 2000, Al Rahma started Eqarat, an online marketplace for buyers and sellers of real estate in the region. The site was a success. The chairman has subsequently increased his products and started expanding internationally. However, his focus and passion remain in Dubai.
"Dubai today is very different from what it was ten years ago. You have to be on solid ground professionally. As
a businessman, you have to know where you are going and have a clear objective. You also need to have access to financial support to sustain the business in order to grow from there.
"Ten years ago you could decide to start a business one day on a whim and still make it. I met many people who said "I will try to open a shop"; they
did and the venture was successful.
You can no longer do this. The business environment is more complex. Planning is needed.
I am convinced that this city will have a different face in a few years' time. Every day we get bigger and every day new people come into the country. Service specialisation has started in commercial, retail, management and residential areas of real estate.
At Eqarat we now offer a comprehensive total solution –
from listing, customer service and contracts, to finance and accounts, after sales service, resale and property management for both buyers and sellers. We have real estate experts, who are continually soliciting high- value projects for prospective investors and developers here in
the UAE and across the globe."
I
I find one thing most annoying and that is that in every meeting outside Dubai, someone will ask, "When will the bubble burst?" This is a stupid question. We do not have a bubble. The economy in Dubai is supported by value chains that make this city's growth sustainable. There is trade, tourism, real estate and other related businesses tied into the city's economy. There are supporting industries and specific areas of expertise within each sector.
It is built from the ground – not from the sky. Behind it there are plans and tremendous activity. When people hear the name Dubai, they envision a growing, booming emirate. You name any mega company in the world, they are either based here or they have a representative located here.
I am married with no children. I am very systematic and have a standard routine. I divide my time between my family and friends. I read a lot at night. I travel a lot which allows you to meet people, discover new things and this
I believe, inspires your spirit. I believe in keeping life as simple as possible.
I gather my greatest inspiration from my father. My father and grandfather knew the late Shaikh Rashid and I was privileged to be able to meet him numerous times when accompanying my father.
I feel that my employees are like family to me – like my sons, daughters, brothers and sisters. I love the fact that they are working in harmony towards shared goals. They come early and leave late because they are committed.
Me
Me and my beginnings
I was born in Dubai in September 1966. Our family home was next to the creek in Bur Dubai beside the museum. Back then, all of Dubai was in that area. Where Emirates Towers are now was previously just desert. I studied in Al Sha'ab School during my early years. For high school, I studied at a school in Jumeirah called the Imam Malek School. I had a normal childhood. My friends and I played a lot of football in the sand next to my home. Just before sunset, our mothers would come and take us home.
Me and my mentors
When I was a student, my grandfather had an electronics and home appliances store by the creek. Every summer
my father would leave me with my grandfather while he attended to business. I worked as a salesperson in my grandfather's store from the age of 8 to 14.
I experienced success and a sense of accomplishment when I sold something. I was very successful in selling items in the store. I worked from 8am to 1pm and between 4 and 8pm. Sometimes I used to sneak out and play with my friends. My grandfather didn't like that. He wanted me to be in the store selling. Customers were attracted to me. They were amused and impressed that such a young kid could be an accomplished bargainer. No one took advantage because of my age.
My grandfather relied on me and paid me a salary of Dh30 per month. It may not seem like a lot now but it was a good income for a kid back then. I really enjoyed that time and I learned a lot of lessons in how to do business.
My father, Hussain, was the commercial consul for Oman in Dubai. The late Shaikh Rashid and my father had very good relations with the Omani government and the market. Prior to taking the post of commercial consul, Shaikh Rashid had a conversation with my father. He told him that he could not find anyone better than him to help develop commercial relations between Oman and Dubai.
My father was honoured and took the position without hesitation. He did a great job establishing commercial ties with Oman. He really enjoyed his work and the role that he played in developing commerce in the emirate.
I feel blessed to have such a great father. He is both my friend and my teacher.
He remains wholly supportive of what I do.
I recall that when I was 22 years old and in the early stages of running my first business, I ran out of money. I immediately sought the aid of my father. His response was that if he lent me the cash, after one month it would finish and that I would be no further ahead. He told me to close the business or borrow from a bank.
I left disappointed, but knowing that he was right. It turned out to be a very strong lesson for me on how to be independent. It helped me understand later that parents who bail out their children driven by compassion are not doing them a favour in the long run. It takes a lot of strength and courage to say no to your children and force them to fend for themselves. My father and I share a great relationship. We talk on the phone every day.
Me, education and my career
I attended university in the UK and graduated from Manchester Blackburn University, which is one of the branches of the Manchester Business School.
I focused on management information systems. This university is well known for its emphasis on IT and technological innovation.
My first job here in the UAE was with Standard Chartered Bank. I started out as a clerk in charge of dispatching.
I collected and distributed letters from management. It wasn't exactly what I had expected after working hard to earn a degree. Even though I was qualified to do more meaningful work, I didn't complain. I decided to be patient and learn as much as possible.
I didn't have to wait too long for a promotion. Within six months I became the assistant manager of the Deira branch. For me, it was a time of self-discovery. It made me see what I liked to do and what I could be successful doing. But I really couldn't see myself working in a bank for my entire career. At the same time, I gained confidence, knowledge and the insight needed to strike out on my own. After nine months of working in the bank, I decided to start my own business.
Me and business in Dubai
In 1991, I opened my first real estate company, Castlegate Real Estate, in a tiny place on Al Diyafah Road. It was a small office of about 1,000 square feet. My team consisted of an administrative assistant, an accountant, two sales reps and myself.
I will never forget what happened only two days after opening my business. An Emirati gentleman knocked on our door. After the introductions he asked me, "Why did you open a real estate company in this place? There are already four real estate companies here. Couldn't you find another location?" I said, "I liked this place so I took it." As a novice businessman, his questions made me more wary of competition. There was plenty of opportunity in the market, but there will always be others who will focus on what you are doing rather than going out and reaping rewards from the new opportunities that present themselves daily.
I had expected my new neighbour to come in and welcome and congratulate me on the new business. Instead, I got a competitor who didn't want me there.
In 1990, there were no freehold properties. Dubai only sold property to GCC nationals. Our market was very limited. Like any business, there was plenty of competition.
I positioned my firm as one of the new professional local companies in Dubai. Since then I have gained a reputation as a professional broker in the city. The business grew very fast and I worked day and night. We earned a good reputation for our professionalism and became the second largest real
estate company in Dubai.
As we grew, the city grew too and other real estate companies surfaced. Once many competitors began entering the market, we decided to become proactive in how we managed our business in the changing environment.
I had to rework our business strategies so that we could distinguish ourselves from others in the same line.
I love learning and I am committed to continuously working at improving my knowledge. Knowledge is both an end and a means to an end. You gain something in the learning process and you also benefit from putting the knowledge you've acquired into practice to help you achieve your goals.
In 1993, I decided that I would return to school for an MBA to improve my business knowledge. This type of education helped me to better manage the growing business and to fully pursue investment opportunities.
I completed my MBA at Hull University in the UK in 1995. I graduated with a focus in general management. In 1996, my plans for a joint venture in the real estate market became a reality. We opened an office in Al Moosa Tower on Shaikh Zayed Road. It was a very prestigious location at the time.
The partnership lasted three years.
I couldn't see myself working in general trading. I always felt that real estate was a part of me, so my partner and I shook hands and parted ways. After that, my plan was to re-focus on real estate. In 2000, this sector was not yet booming, but it was beginning to surface.
Me and Eqarat
I returned to what I do best. That was when great things started happening in Dubai. It was the late 1990s and the IT revolution took off in this part of the world. Internet City was developing and we had high hopes of making Dubai an IT hub for the region. In addition the government announced that the first Middle East e-government system was to be set up in Dubai.
I saw the IT revolution, so I studied IT and MIS and with my experience in real estate, it made sense to combine the two.
I decided to merge my strengths, knowledge and experience with the vision of the Dubai government, so I started the first dotcom real estate company in the region and called it Eqarat.
It entered the market with a bang.
Eqarat was a huge success. I started to identify the needs of both buyers and sellers and then I tailormade a portal to deal with property services that were in demand by both.
I contacted IBM consultants and formed a board. Our team consisted of technology consultants, market surveyors, designers and many others. It was truly a multifunctional exercise that resulted in a powerful portal for the region. The initiative took six months to reach completion. It was
a real challenge to prove to myself that I could do things better than my competitors, and with flair!
My aim in starting this type of business was first and foremost to shorten the distance between buyer and seller and to promote an international brand. It also globalised our company as once you are online, you are accessible to the world.
After some ups and downs, the venture proved to be a success. Once the market was aware of our service, we had over 2,000 freeholds. Buyers and investors worldwide came here for real estate opportunities. Emaar was the first developer and others successfully followed. We were one of the agents selected to sell for Emaar and we were ready for the next wave in the real estate story.
Myself
Do you think the current pace of real estate development is sustainable?
This market is young and there is huge potential for growth. Emaar was created in 2000 and look at what has been accomplished in those eight years. In 1999 there was a big announcement in Dubai and it was a moment that I will never forget: Shaikh Mohammad spoke to the public. Everyone I knew was glued to their TVs at 8pm that evening.
The vision and plans that were announced in his speech created a massive shift in Dubai's profile. He said that he had aggressive plans for Dubai for the next 10 years. He emphasised that he could not do it without help from all people in Dubai, both nationals and non-nationals. He promised that he would do what it took to make Dubai an international city. Part of his message was a description of massive, aggressive projects. What you see now is only part of his vision for the city. Horizons were pushed back. We all believed in and shared that vision.
We know that the future will continue to look bright in Dubai.
I believe that Dubai will continue to grow. Dubai's success didn't happen overnight. The groundwork was carefully laid to create a successful business hub for people to live in, work and generate income. If people come here with an idea and the ability to turn it into a reality, they can do it.
– As told to Sarah Sayed, a Dubai-based freelancer
