Italy's name brands ride on Dubai's boom

First Armani, then Ferrari and now the Ferretti Group, an Italian builder of motor yachts, is using Dubai's property boom to leverage its brand. In a deal worth about Dh165 million (US$45m), Ferretti will provide eight yachts for the sole use the Ferretti Luxury Beach Residence and Pershing Luxury Beach Residence, two properties being developed by ACI Real Estate at Dubai Waterfront at a total cost of Dh6 billion.

Ferretti's boat architects and ACI's interior designers will work together to provide a similar level of quality and finish in the homes as the yachts. "The future of Italy has to be in the high, value-added concept," said Vincenzo Cannatelli, the chief executive officer of the Ferretti Group. "Luxury brands are part of our tradition, expertise and know-how," he said. "We're always looking for new ideas on how to market and service our customers in innovative ways. The idea of co-branding with ACI and providing residents with the possibility to use our yachts is something that we find quite compelling. I also believe that Dubai and Abu Dhabi will be one of the fastest-growing markets for yachts in the next five years and this is one way of consolidating our presence here."

As competition in Dubai's property market heats up, developers are looking for novel ways to stand out from the crowd. Several Italian brands have been used to bring a sense of elegance, style and quality to projects. For example, the fashion house Gianfranco Ferré Stresa lent its name to a residential and commercial project planned by GIO Developments, while Giorgio Armani struck a deal with Emaar Properties in 2005 for the development of upmarket hotels, apartments and resorts.

In Abu Dhabi, Ferrari is working with Aldar Properties to build a motor racing-themed development on Yas Island. "The key things that brand Italy has are heritage, style and culture," said Duncan James, the strategy director at The Brand Union Middle East. "These are things that money cannot buy. Buildings in Dubai are fairly homogeneous and Italian brands can bring a style that will stand out in the market. Italian brands are also looking for more exposure here and property is an obvious way of achieving that."

ACI is no stranger to the potential returns that can be reaped from associating its projects with well-known names. The former tennis champion Boris Becker and the former Formula One driver Michael Schumacher have given their names to commercial towers that ACI is building. Robin Lohman, the company's managing director, said more branding deals would be announced by the end of this year. "It's important," he said. "We've had good success with branding our commercial properties so we wanted to continue this for our residential ones. The market was quite simple four years ago but now you have to be more outstanding. Branding this way gives us better recognition. Competition has been raised and at the same time we want to increase and protect our market share."

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