‘Entrepreneurship is the process of creating great ideas and following through on them’
We spoke to David von Rosen-von Hoewel, Founder of 25 Degrees, about Dubai’s property market, advice for entrepreneurs looking to expand their portfolio, and much more.
Before we start, you are the founder of Oceana Market, Lottoland, VONROSEN, and CareerConcept AG, but most notably for this Q+A, you are the co-founder of 25 Degrees. Can you tell us a bit about this company?25 Degrees is a boutique property development company that I launched with a friend in 2022 and chose to name after Dubai’s latitudinal location. We partner with top architects, interior designers, contractors, and trade specialists to push the boundaries of luxury property development in Dubai.
We’re relatively new on the block, but we’ve already begun developing private homes on Palm Jumeirah, giving them a modern, stylish, and European feel. And we have ambitious plans to scale over the coming months, so I’m very excited about where the future will take us.
What drew you to Dubai’s property market?I’ve always been drawn to Dubai as a city. It’s a beautiful place, a great location to do business, and, most importantly here, its property scene is world-leading in terms of quality and innovation. It’s one of the major reasons the city attracts so many expats year-on-year, and Dubai’s economy continues to grow at a steady pace. This market seemed like an opportunity I couldn’t pass on, and I’m eager to put my own stamp on it, which is why I co-founded 25 Degrees.
Dubai looks to become a global tech hub, but you’ve said that property prices could prove a hindrance to these plans. Can you explain what you mean by this?Over the last few years, Dubai has made huge strides to become a global tech leader. The city has already established three tech startups now valued at over $1bn (£782m): Kitopi, Vista Global, and Dubizzle Group. And it has committed significant investment to infrastructure, such as the AI and Web 3.0 centre being built by the Dubai International Financial Centre to attract 500+ AI and Web3 startups by 2028.
But, cool – and important – initiatives aside, we can’t ignore the fact that one of the leading incentives drawing talented entrepreneurs to Dubai has been competitive living costs. Dubai, while expensive, has maintained cheaper living than other more traditional tech hubs such as Silicon Valley, London, and New York. That status could now be at risk as the cost of living rises sharply, driven in large by spiking property prices and rent.
If this goes on for long, many of the top tech talents may be priced out of the market and choose to remain where they are or set up shop in cheaper emerging tech hubs. This would restrict the talent pool available to the most innovative tech businesses in Dubai – the very businesses that will drive the city’s tech success.
You invested more than half a billion AED in Dubai’s tech and property ecosystems through Oceana Market and 25 Degrees, what can you predict from the tech and property scene in Dubai to best benefit the company’s drive to move there?For me, investing in tech and property within Dubai was a no brainier. The tech and property sectors are what I see as two of the hottest markets in the globe at the moment. Tech is busier and more competitive than ever, and the global property scene is thriving as a result of businesses and people relocating in search of better working and living. Where Dubai becomes the best location to be involved in these sectors is its drive to get stuff done, which for me, remains unrivalled anywhere in the world.
In fact, it doesn’t matter about the sector. Any firm looking to move to Dubai can do so with confidence. The region has proven for many years that it doesn’t hold back with its ambition to innovate and become a leading city. Just look at the tourism sector, which is ranked no.1 globally – the reason it is so successful is because of the investment Dubai has committed to its iconic landmarks, luxury shopping, cultural attractions, entertainment, beaches, resorts, sports, and security to make it a top destination to visit.
For the tech sector specifically, there are already many initiatives that have been put in place and are still being ramped up by the Dubai government to ensure the region is an enticing place for growth. The Future District Fund has committed $1bn (£782m) to start-ups by the end of 2024, the Future Foundation has become a researcher and advocate of applications for the Metaverse, and the Smart City Accelerator is leading Dubai’s IoT, blockchain, and sustainable and smart city program. Dubai is relentless.
There’s no sign of the innovation slowing down – the tech scene is flourishing, and the property scene will continue to produce world-class real estate. Both of these factors will continue to draw in companies from around the world for many years.
You’ve also said that Dubai should be looking to capitalise on the AI race, which is the largest tech battle since Google won search engine dominance, but the only way Dubai can achieve this notoriety is by stabilising commercial property sector prices to encourage businesses to set up shop. How do you advise this to be done, from both the tech side and the property developer side?The locations that can house AI firms and technologies will cement their reputation as the leading business hubs for years to come. That’s why it’s so important for Dubai that it is a leader in this race, and stabilising property prices must be a part of its strategy.
This might require the government to divert from its traditional and hands-off approach to business and implement targeted policies to slow down the inflation in property prices. Many will assume this is out of the question, but by preventing a property bubble and maintaining an environment capable of attracting many top tech companies, the city will secure its position in the long term. The impetus is certainly there.
On the tech front, I think inevitably AI has a part to play. It should be utilised to speed up the construction and development of real estate and to reduce overhead costs. It could even be used to monitor and analyse market prices to assist in the regulation of the market, should the government choose to go down this route.
You have dabbled in multiple different business ventures including fashion, tech, gambling, and now properties. There’s a saying ‘A Jack of all trades is a master of none, but oftentimes better than a master of one’. Would you consider yourself a Jack of all trades?I’d say all of my ventures to date say a lot about my character. I’ve always been a very creative, ambitious, and determined person. I love doing new things, so if something interests me and I think I have something to offer and I can learn something new, I’m going to go for it headfirst.
When I launched VONROSEN, I had no experience in the fashion industry. But we were passionate about disrupting the space by creating high-quality, timeless garments that were free from the heavy branding that tends to dominate luxury clothing.
Then, when I made the move to the tech and gambling sectors with the launch of Lottoland, it was all about transforming the traditional lottery to give people a chance to play in countries where they’d never been able to. To solve this problem, we designed an innovative online platform to bring one secure and diverse lottery to regions all over the world.
Fast-forward to now, with the launch of Oceana Market and 25 Degrees. I saw the opportunity to contribute something new to Dubai’s thriving tech and property markets. So, I took it. I’m confident we’ll see similar success with those companies too.
My business interests aren’t restricted to one area, which has driven me to try my hand in all these different sectors. But there’s a lot I still want to do and many areas I haven’t explored yet – for example, I’ve recently entered into fintech and sustainable energy, and I have many more ideas in the pipeline. So I wouldn’t describe myself as a jack of all trades, not yet at least.
And while some might argue it’s better to stay in one place and perfect your expertise in a particular area, in terms of raw commercial success at least, I would argue that the entrepreneurial process is very similar no matter what sector you’re going into. It’s all about taking that creative idea and turning it into something successful. It’s that process that it’s important to be a master of. And I would rather be a generalist than a specialist who has only tried their hand at one thing.
What advice do you have for entrepreneurs looking to expand their portfolios?First of all, I would encourage all entrepreneurs to get outside their comfort zone and try new things. You never know where you might find success or be able to have a real impact, whether it’s in a new sector or a new region of the world. Always be on the lookout for the next opportunity, and don’t be afraid of failure.
This brings me to my second piece of advice – always follow your gut and don’t be afraid to make difficult decisions. If you fail, you’ll have learned something important. Ultimately, it’s better to try something and fail than to not try it at all – otherwise, you’ve both failed and learned nothing. As long as three out of five decisions go the way you’d planned, then that’s okay.
My last piece of advice is more operational – find the right people. I can’t stress the importance of finding the right people to found a business with enough. The early hires are the most important ones. They’ll help determine the success or failure of the business.
What, to you, makes a good business leader?Someone who is in tune with the modern world. You’ve got to be aware of all of the shifting markets, technological advances, geopolitical risks, social responsibility considerations, and so much more that could impact your business. Too often, I come across business leaders who think they know the best way to run a business, but the world is always changing, and with it, the best practices.
All the best business leaders are also creative. Entrepreneurship is the process of creating great ideas and following through on them. Of course, you can’t create a successful business if you can’t run a company, but it starts with the idea first.
Source: https://www.businessleader.co.uk/david-von-rosen-von-hoewel-interview/
