Rizwan Sajan On Billion-Dollar Empire, Dubai Real Estate, Investments & Business | FO319 Raj Shamani

Rizwan Sajan clarifies the perception of Dubai being expensive, stating that on a carpet-to-carpet comparison basis, it's often more affordable than many Indian cities like Gurgaon. He highlights Dubai as a hub for vacation homes and investments, attracting those seeking a civilized and luxurious lifestyle. Dubai's unique advantages include zero income tax, no extra tax on property profits, and high returns on investment with 8% rental returns and 15-20% annual appreciation. The city boasts excellent infrastructure, including hospitals, road systems with extensive taxi and bus networks, metro and tram stations, and upcoming air taxis. The education system offers diverse curricula (IB, Indian, US, UK, Arabic universities) with affordable schooling options. Despite its growth, living expenses are not necessarily higher than in major Indian cities, especially considering the higher earning potential.

Rizwan Sajan shares his humble beginnings, born in a Mumbai slum. His family moved to a small a 'chol' after winning a lottery for subsidized housing. Growing up, he faced financial difficulties, receiving only 15 rupees in pocket money monthly. At 12, to earn money and fit in with wealthier schoolmates, he started a business selling school books and stationery from a wholesale market, making a 10-15% margin. He continued this by selling festive items like Rakhis and firecrackers. At 14, he even delivered milk for 50 rupees a month. A pivotal moment was a disheartening encounter with his crush while delivering milk, which further fueled his determination to earn money and escape his circumstances. At 16 and a half, his father tragically died in a train accident, thrusting him into family responsibility. He recounts the painful experience of identifying his father's body and the subsequent lack of support from relatives, which instilled in him a stronger resolve to be self-reliant and help others.

After his father's death, Sajan secured a job through his father's former employer, earning 600 rupees. He then moved to Kuwait for a better-paying sales job in building materials, where his commission alone reached 1.5 to 2 lakhs rupees. He became a skilled salesman, focusing on building strong customer relationships and selling diverse building materials like plywood and steel. The Iraqi invasion of Kuwait forced him to return to India, losing all his wealth. He then moved to Dubai, starting with a lower-paying job but with a 25% commission on sales. His entrepreneurial spirit led him to identify an opportunity during the war: facilitating telegram messages for a fee, making a 10x profit. Back in Dubai, he started a building material brokerage firm. A key incident involving a consignment of damaged wood led him to directly enter the trading business, securing materials on consignment and selling them after refurbishing them, earning significant profits. Danuib became the number one building material company in the Middle East by offering a comprehensive range of products under one roof, fulfilling diverse customer needs, and strategically expanding across the UAE and other Gulf countries. He emphasizes the importance of understanding customer pulse and being a first mover in the market.

With the success of his building materials business, Sajan ventured into real estate. His first project, Dreams by Danuib, involved developing 170 villas worth 500 million Dirhams. Leveraging his strong relationships with banks and his established Danuib brand, he secured a bank loan covering the entire land cost, essentially starting the project with zero personal investment. Sajan credits his marketing acumen for his success. He used unconventional marketing tactics like branding spare tires of SUVs and painting cars with his company's logo to boost brand awareness. His key strategy in real estate was to target the 85-90% of Dubai's expat population who wished to own homes but couldn't get traditional bank loans. He introduced an innovative '1% per month' payment plan, making homeownership accessible. This plan, coupled with 20% down payment, reduced risk for banks and ensured customer commitment. This unique offering, along with affordable pricing (2.5 million Dirhams per villa), quickly sold out his first project. Danuib has since launched 33 projects, with 16 delivered and 15 currently under construction. He has earned the moniker '1% man' for his innovative payment scheme, which has garnered global recognition.

Danuib stands out as the third-largest private developer in Dubai (and sixth overall), achieved through a commitment to quality, a flexible 1% payment plan, and offering fully furnished apartments. Danuib properties boast 40-50 unique amenities per building, including a doctor on call and a 'nanny on board,' beyond typical sports and wellness facilities. They also offer before-time delivery and post-purchase property management services, ensuring high rental returns and maintaining building standards. Sajan believes in providing a '360-degree solution' to buyers, which builds trust and discourages seeking discounts. He emphasizes that Danuib sells a lifestyle, not just apartments, and while their prices are competitive now, he foresees them increasing in the future. Sajan prioritizes a calculated and sustainable growth pace, avoiding the pitfalls of over-leveraging and rushing into too many projects. He references his uncle's wisdom about dying rich, not just living rich, which guides his cautious approach to expansion and project delivery.

Sajan recounts the severe challenges faced during the Covid-19 pandemic, with inventory piling up, no sales, and mounting expenses. However, he made a crucial decision: to not fire a single employee and not cut salaries, even if it meant dipping into his own reserves. This decision fostered immense loyalty and motivation among his staff, leading to record profits the following year. His business philosophy is to always calculate potential losses before embarking on a project, ensuring he can absorb the impact if things go wrong. This approach allows him to take confident steps forward, knowing his downside risk is controlled.

Sajan strongly recommends investing in Dubai for its robust economy and quality of life. He highlights the benefits of diversifying investments beyond India, citing Dubai's tax-free environment (no income tax or capital gains tax on property), world-class hospitals, efficient transportation, and diverse education system. Despite perceptions of high living costs, he argues that rentals in Dubai can be comparable or even cheaper than in major Indian cities like Mumbai, especially considering the higher earning potential. For young entrepreneurs, he suggests focusing on businesses with global reach due to Dubai's interconnectedness. He advises starting a property brokerage firm with 1 crore rupees, leveraging Dubai's generous 5% commission rates (compared to 2-3% in India). Success in this competitive market depends on strong digital marketing, lead generation, and having capable sales personnel to convert leads. He also notes that the most challenging aspect of real estate is selling the units, emphasizing the importance of strong marketing, both traditional and digital.

Sajan emphasizes the critical role of digital marketing in real estate for lead generation and higher return on investment. He reveals an upcoming marketing campaign, 'Danuib Hai Na,' featuring Kartik Aaryan as the brand ambassador. The campaign aims to position Danuib as the go-to solution for all home and building-related needs, leveraging the actor's work ethic and strong promotional drive. He shares a 'dark reality' of the real estate industry: the danger of over-leveraging. He warns against getting carried away during market upswings, as a sudden downturn can lead to significant debt. He reiterates his philosophy of calculated expansion and avoiding the chase for being 'number one' to maintain stability and deliver consistent value to customers.