In the earnest bustle of the Congress Centre at the World Economic Forum Annual Meeting in Davos, Switzerland, Rachid Mohamed Rachid stands out from the crowd.
He cuts a stylish figure, as befits the chairman of Valentino and Balmain, nailing the tricky Davos business-casual look in soft, dark-hued winter attire.
Rachid, also the founder of Alsara Investment Group, takes his time to answer when asked the eternal question for his industry: can a brand truly call itself luxury if it is available at every airport and in every city centre?
“The balance is very challenging,” he concedes. “So, yes, you want to be seen, you want to be present. But you also want to be exclusive. And I think that's the secret of success in luxury.
“If you lose your balance, either you don't grow, or actually you grow too much in the wrong direction, and then you lose your exclusivity, which means people don't see [the brand] as luxury any more. And unfortunately, some brands have gone through that in the last 20 years,” says the former Egyptian minister of Trade, Industry and Investment.
“Luxury is one of the industries that has been growing consistently in the past 20 years, at rates of between six and eight per cent. This is unusual, it was only probably luxury and technology that were growing at that rate,” he says.
In addition, he says, the luxury market has displayed remarkable resilience. “As we see even today, with the prospect of recession, the performance of luxury is much stronger than the main market because you are catering to consumers who have a higher ability to spend money,” he says.
For Rachid, there is an emotional quality to luxury that goes beyond the bottom line. “For me personally, I love brands, all my life I've been in consumer goods. There is nothing stronger in the manifestation of the strengths of a brand than in luxury … in luxury, marketing is not even giving the consumer what they want. Luxury is just doing it and then the consumer wants it … because that feeling of luxury is an amazing thing. So, the emotional part in luxury is very, very powerful.”
Up until Covid-19, the luxury market had proved immune to wider economic and financial downturns. And with China opening up again this year, a post-pandemic recovery is forecast for the sector. “China's consumption before the pandemic was almost 35 per cent of the global consumption, which was almost equivalent to the US and Europe combined. And that is the whole consumption [of Chinese buyers], meaning inside and outside [the country]. And of course, historically, it started outside of China,” he says.
“Now, with the opening up of China and the lifting of all restrictions, we are hopeful because China dropped like 50 per cent, so now we are hoping that it will come back again into the market, and also the Chinese travellers will come back into the different capitals of the world.
“All the brands, including ourselves, we invested heavily in being present in China. The lockdown there in the last three years … created a very unusual situation for everybody. But the reality is also that there has been a surge in the markets in the US and in Europe, driven by what is called ‘revenge buying’.
“So, people after the pandemic, they just went out, and wanted to spend money and they wanted to buy a lot of things. And rich people, the reality is that after the pandemic, they became richer, and they're spending more money because of the cash around.”
However, the next big opportunity for luxury is not likely be a geographic market, but a demographic of customers born between the mid-1990s and 2010. “Gen Z became one of the main targets for luxury and the consumption of luxury dropped now to an average of mid-20s. Obviously, that means that a lot of marketing, a lot of products, a lot of activities are directed to younger consumers, and that is definitely taking shape in a very, very aggressive way.”
Luxury and tourists “go hand in hand”, he says, which is also where the Gulf and the UAE will benefit. “In the Gulf today, we have more than one centre, in Dubai, Doha, Saudi Arabia, which are targeting more and more tourists … When people travel, they want to buy and they want to buy exclusive.”
This growth and the presence of luxury in the region are also helping to encourage an environment and ecosystem that can support local brands, he says. “It's going to take some time, but it's going to happen.”
Bidayat, an international investment company Rachid founded, supports creative entrepreneurship in the Mediterranean region. “We started with Egypt, and our philosophy and our intention is to take these brands, which have something unique in terms of creativity, to the global scene. We believe you cannot succeed unless you go global in your mind.
"So, from a supply chain point of view, from a manufacturing and quality point of view, communication has to be up to the global standard. And I think you know there is a lot of potential in the region, not only in Egypt … the Gulf, in Lebanon and Morocco and Tunisia. All those countries have really a lot of potential.
“There is a lot of creativity in the region, which is an amazing source of inspiration in terms of culture and in terms of history. And at the same time, we are very close to centres of production … in India or Asia, or in Turkey or Europe.
“To create luxury brands today is almost equivalent to creating global brands; you cannot be luxury and be very limited. So, that creates a little bit of a challenge, really, to move from just an idea to become a real luxury brand.”
Haute couture, for Rachid, is the ultimate luxury when it comes to fashion, and analyst forecasts say the segment will show steady growth over the next five years. “So if you go to an haute couture fashion show, which is usually in Paris, I mean, this is art, this is the ultimate art. Some of the pieces will never be sold, but are made really to express the art of it.
“Some of the pieces are going all the way up to half a million euros or a million euros, and they don't end up being used, but represent the highest presentation, creation, fashion and manufacturing.”
The next push for haute couture will be into "made to measure", he says. “Ready-to-wear is the expression of haute couture in a democratic way … made to measure is an extension, getting nearer to haute couture.”
As the industry changes, sustainability has become an important topic, he says, with both positive and negative connotations. “Negative because, unfortunately, we have seen with the surge of what was called ‘fast fashion’, there has been a lot of pushback against the fashion business, because of the negative impact on sustainability. But at the same time, most companies, and in our case, all our companies, have sustainability portfolio programmes. We are part of what is called the Green Fashion Initiative; we are seeking all the time now to look at raw materials that are going to be recycled, [and] the tracing of our products is becoming more and more important.
“Even the idea today, which was not even thought about before, to resell products, like second-hand luxury, it's picking up dramatically in the world.”
Contrary to what people say, “we luxury companies, we are supporting that, we are not against it.
“To be able to have a piece of luxury clothing and going on the market to sell it back again … this is a positive thing, not only because it's good for the environment and sustainability, but even from a value preservation point of view. So if people feel they can buy something that can maintain its value for the long term, it's also very good for the environment and for the market.”
Overall, Rachid says he is optimistic about the Middle East region this year, especially with stable oil prices for Gulf economies, and the expectation that interest rates have plateaued and could reduce for other countries in the region needed to raise funds internationally.
Veil (Object Lessons)
Rafia Zakaria
Bloomsbury Academic
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
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Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
CHATGPT%20ENTERPRISE%20FEATURES
%3Cp%3E%E2%80%A2%20Enterprise-grade%20security%20and%20privacy%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Unlimited%20higher-speed%20GPT-4%20access%20with%20no%20caps%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Longer%20context%20windows%20for%20processing%20longer%20inputs%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Advanced%20data%20analysis%20capabilities%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Customisation%20options%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Shareable%20chat%20templates%20that%20companies%20can%20use%20to%20collaborate%20and%20build%20common%20workflows%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Analytics%20dashboard%20for%20usage%20insights%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Free%20credits%20to%20use%20OpenAI%20APIs%20to%20extend%20OpenAI%20into%20a%20fully-custom%20solution%20for%20enterprises%3C%2Fp%3E%0A
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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UAE currency: the story behind the money in your pockets
DMZ facts
- The DMZ was created as a buffer after the 1950-53 Korean War.
- It runs 248 kilometers across the Korean Peninsula and is 4km wide.
- The zone is jointly overseen by the US-led United Nations Command and North Korea.
- It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
- Donald Trump and Kim Jong-Un met at a building in Panmunjom, where an armistice was signed to stop the Korean War.
- Panmunjom is 52km north of the Korean capital Seoul and 147km south of Pyongyang, North Korea’s capital.
- Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012.
- Mr Trump planned to visit in November 2017, but heavy fog that prevented his helicopter from landing.
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
UAE currency: the story behind the money in your pockets
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EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
More coverage from the Future Forum
The Freedom Artist
By Ben Okri (Head of Zeus)
Checks continue
A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.
Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.
Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
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Defence review at a glance
• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”
• Prioritise a shift towards working with AI and autonomous systems
• Invest in the resilience of military space systems.
• Number of active reserves should be increased by 20%
• More F-35 fighter jets required in the next decade
• New “hybrid Navy” with AUKUS submarines and autonomous vessels
Mercedes-AMG GT 63 S E Performance: the specs
Engine: 4.0-litre twin-turbo V8 plus rear-mounted electric motor
Power: 843hp at N/A rpm
Torque: 1470Nm N/A rpm
Transmission: 9-speed auto
Fuel consumption: 8.6L/100km
On sale: October to December
Price: From Dh875,000 (estimate)
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'Laal Kaptaan'
Director: Navdeep Singh
Stars: Saif Ali Khan, Manav Vij, Deepak Dobriyal, Zoya Hussain
Rating: 2/5
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Abu Dhabi traffic facts
Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road
The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.
Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.
The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.
The highest levels of traffic were found on Sunday, November 10.
Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019
