Andrey Rogachev provides insights into the dynamics of Dubai as the regional design and architectural hub.
Investor and strategic management expert Andrey Rogachev discusses the role of international partnerships in the UAE, using the example of the exclusive representation of the German premium construction paint brand Profitec. in an interview with Arabian Post, he shares insights on how industry leaders are driving nearby markets forward to take advantage of a record influx of affluent individuals and investors from around the world. In recent years, Dubai, being one of the most progressive destinations in the Middle East and North Africa (MENA) region, has focused on attracting international investments.
Arabian Post: Andrey, you have been a multi-sector investor and a financial expert. Not long ago, you announced the successful completion of a deal for the exclusive representation of the German premium construction paint brand Profitec in Dubai. Can you tell us about your role in the project?
Andrey: Yes, we signed an investment agreement with Al Paintura Global Paints Trading L.L.C., which has been operating in the UAE since 2023. One of its main activities is the wholesale and retail sale of premium paint products in the Middle East. Al Paintura is the exclusive distributor of the premium German brand Profitec in the UAE, Saudi Arabia, Qatar, and Bahrain, with plans for further expansion of the products throughout the Middle East.
AP: So, it turns out that you are currently the only ones in Dubai who can officially sell the brand’s products?
Andrey: Exactly, we are the sole distributor of the brand’s products in Dubai, which means there are no other representatives of the brand in the region. This means that the entire range of premium construction paints will be supplied directly to us as the sole authorized dealer.
AP: Are the Emirates, particularly Dubai, a challenging market for products in this sector?
Andrey: I wouldn’t say so; the Emirates are open to foreign investments in any industrial sector. The government here understands how international consumer demand will maximize benefits for the country’s economy, and consequently for its citizens, residents, and those who contribute to its development.
AP: According to a report, by the end of 2024, the UAE paint and coatings market is expected to reach over $770 million. The average annual growth rate is expected to continue rising. How pronounced Is this trend?
Andrey: This sector is well-developed in the country. Everything needed for construction and finishing work is manufactured here. Currently, the Emirates produce rebar, window units, doors, paint products, and finishing materials independently. Over the last decade, small craft workshops have grown into large factories whose activities cover neighbouring regions.
AP: Did these factors influence the decision to choose a partner? And from an investor’s perspective, how do you evaluate a company before considering it for partnership?
Andrey: Certainly, they influenced it.
First, it’s essential to evaluate the market itself. Any new market is an attractive proposition to an investor in terms of selecting an international location for diversifying their portfolio. The market refers both to a geographical unit and a specific business sector; in our case, the production of paints and coatings. Of course, we exercise caution, so we prefer to start our ventures with familiar and understandable formats, such as exclusive partnerships with established and reputable international brands.
AP: The Emirates are constantly being developed, which creates additional demand for both personnel and materials…
Andrey: That’s right. The production and distribution of construction paints is a complementary industry for the most dynamic segments of the Emirati economy, such as construction, development, and real estate.
Over the past three years, Dubai has seen a spurt in real estate transactions. The high demand for office and residential spaces fuels interest from investors worldwide. This means that the growth in new construction projects and those being put into operation will continue, ensuring demand for paint and coating products.
AP: Businesspeople have highly developed intuition; did you sense that Dubai is not only becoming the capital of the latest architectural projects but is also shaping its own renovation culture?
Andrey: Dubai, like all the Emirates, is a territory of records. Every day you hear about a new project, startup, or cutting-edge technology.
Currently, there are about 500 developers operating in Dubai. According to the real estate agency fäm Properties, as of the end of 2023, there were 554 investment and construction projects actively underway here.
This means that following the purchase of residential and commercial properties, the next stage will be the finishing work, whether for personal use, rental, or resale.
AP: The ProfiTec brand is known beyond the UAE and has an excellent reputation as a sustainable industry leader. How did you come to collaborate with the brand?
Andrey: There’s a saying in Russia: “If it weren’t for bad luck, there would be no good luck.” Despite the intensive construction in the Emirates, the quality of renovation work among local companies remains low for now. This creates a high latent demand for quality finishing services. Clients have become more focused on quality, safety, and environmental friendliness of the materials used by craftsmen.
The high standards set by incoming European and Russian companies impose strict requirements on the choice of service providers. After all, the Middle East is about luxury and wealth; the specifics of the region allow for the use of the most expensive materials and the creation of unique items without a bearing on costs.
ProFitec is precisely that premium brand that professionals work with.
AP: Will the brand focus on the growing regional demand for professional paints in the architectural sector or on functional materials for the construction market?
Andrey: We are interested in building relationships with different audiences—through retail with private clients, through wholesale with retail buyers; and comprehensively selecting solutions for corporate segment needs.
AP: When a company enters new markets, it is always looking for new points of development, new directions, and niches. How do you plan to expand the brand’s product portfolio and adapt to the Middle East?
Andrey: The Emirates, although a young state celebrating its 53rd anniversary this year, have been shaped over millennia by various civilizations, cultures, and trade routes. This part of the Arabian Peninsula is rich in myths and legends that support entire industries, not to mention the marketing of global companies.
We have numerous scenarios for development ahead of us. Of course, we will study traditional practices and explore new approaches in finishing for both commercial and residential properties.
From my personal observation, I have noticed that the interior of a private home in Dubai is not just about a space furnished with elegance and taste; it’s about an emotional impact. The interior conveys certain messages and tells stories that reflect the beliefs and ambitions of its owners. Now we just need to find the right colors for these stories, which is why we arrived at the right time.
AP: Manufacturers are constantly trying to improve the properties and quality of their products, production technology, and make them safe and environmentally friendly. What innovations in product manufacturing would you highlight?
Andrey: Changes in the paint industry occur frequently due to the emergence of new technologies and methods. ProFitec regularly enhances its production processes by offering innovative paints, varnishes, glazes, plasters, and building protection products. All paints from the brand’s different lines are eco-friendly and safe. Market experts trust the brand for its progressive technologies and the quality of raw materials. Additionally, having our own laboratories allows the brand to continuously improve.
AP: Share the company’s plans for this year; what strategic objectives are you setting?
Andrey: Our top priorities are opening a showroom in Dubai (we plan to have a grand opening in February), expanding our dealer network in the Middle Eastern countries, and opening a second headquarters in Saudi Arabia. However, the most crucial stage is to rapidly increase sales volumes. We have many developments with projects and agents in the Middle East, so it is now important to increase our inventory and range of paints.
Also published on Medium.
