‘If it doesn't exist, create it,' Josef Kleindienst on real estate innovation and AI-powered hospitality
The Kleindienst Group prepares to mark 40 years in 2025. Spearheaded by a belief in building what doesn't yet exist, the company has reimagined what experiential tourism and climate-conscious living can look like through its flagship $6bn project, The Heart of Europe.
In this interview, the group's founder and chairman, Josef Kleindienst, reflects on the concept of underwater living, launching AI-powered hospitality, regenerating coral ecosystems — and shaping a legacy that is enduring.
As Kleindienst Group celebrates 40 years this year, how would you describe the company's evolution?
We started with just two desks and one mindset: if it doesn't exist, create it.
Four decades later, Kleindienst Group is Dubai's largest European real estate developer, with a team of more than 1,500 people working across hospitality, tourism, marine engineering, and real estate. From day one, our mission has been to deliver impact – through innovation, sustainability, and long-term vision.
The Heart of Europe is the clearest expression of that ambition: a six-island destination built from the sea up to redefine what luxury hospitality tourism can look like. We were the first developer to successfully deliver a complex, multi-island destination on The World, Dubai – something that has never been done before. That meant solving unprecedented regulatory, engineering, and environmental challenges, often with no blueprint to follow. But we stayed the course. We engineered the seemingly impossible and brought it to life.
Today, we've launched voco Monaco Dubai into a thriving destination attracting guests from around the world. We've delivered the luxurious Sweden Beach Palace and completed construction on the Nice Hotel. These aren't just milestones, they're a living expression of the Kleindienst vision: to create bold, experiential, innovative, and climate-positive communities that deliver world-class experiences.
We didn't just develop a resort: we delivered a vision, and helped shape a future-forward model for experiential tourism in Dubai.
The Heart of Europe is widely recognised for pioneering concepts like underwater living, climate-controlled streets, and car-free islands. How do you approach innovation, and what's next in redefining real estate and hospitality in Dubai?
Innovation isn't just part of our process — it is the foundation of the process. We are driven by a single goal: to create world-class, immersive, and experiential destinations the world hasn't seen before, and make them real.
That mindset has shaped The Heart of Europe into a $6bn destination defined by firsts; from underwater bedrooms to climate-controlled streets, soon to be launched Snow Plaza, and zero-car islands powered entirely by solar energy. These are not design flourishes; they are engineered experiences, built to challenge the limits of hospitality and fully immerse guests in something extraordinary.
What's coming next is the region's first Buddha-Bar Hotel & Floating Villas, a flagship $817m luxury wellness destination that forms part of Honeymoon Island — a concept built around floating villas, coral-rich diving zones, and marine-inspired architecture. It's a key step in our strategy to lead the next era of restorative, experience-led tourism, aligned with Dubai's vision for innovation and sustainability.
Sustainability is a core pillar of your development, from solar power to coral regeneration. How are you integrating environmental resilience into your business model, and what does sustainable premium living look like for the next decade?
At
But our most ambitious work is happening below the surface.
Through the Coral Institute, we've restored over 100,000 coral fragments and built thriving artificial reefs around our islands — creating a self-sustaining marine ecosystem that protects biodiversity and enhances the underwater environment. These reefs are not just conservation tools — they're destinations in their own right.
Guests can dive straight from their villas into living coral habitats, explore curated dive zones off Honeymoon Island, and witness marine life returning to areas that were once barren. It's a rare convergence of tourism and restoration, where guests don't just experience nature, they contribute to it.
This is our model for the future: sustainable, high-performing destinations that offer unforgettable experiences while actively healing the environment.
With AI rapidly transforming the real estate sector, how is the group leveraging technology to enhance operations and the customer journey – including the launch of Olivia, your AI-powered concierge?
We're not just building real estate. We're building responsive, intelligent ecosystems.
Olivia, our AI concierge, provides guests, brokers, media and investors with 24/7 real-time access to updates, insights, and on-demand support. But AI's role goes much deeper. Currently, it enables seamless customer engagement — ensuring every interaction is frictionless and personalised.
Driven by steadfast commitment to innovation, we are advancing towards a future where AI is deeply integrated into our core processes. Moving forward, we plan to leverage AI to enhance project planning and the guest hospitality experience.
What's your long-term vision for The Heart of Europe – and what advice would you offer to developers looking to balance ambition, impact, and innovation in today's market?
Dubai's future is bold, and our job as developers is to help shape it.
The long-term vision for The Heart of Europe is to become a destination in its own right: not just a place to stay, but the reason people travel. A hub of culture, innovation, and hospitality that brings the best of Europe to Dubai.
Every phase is aligned with national strategy, including UAE Tourism Strategy 2031, Dubai's
To other developers: don't build for now, build for what's next. The most successful projects won't be the biggest, but the ones that deliver legacy environmentally, economically, and culturally. If it doesn't contribute to the future, it's just construction.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
2 hours ago
- The National
How the climate crisis is creating millions of refugees in the Middle East
• Remittance charges will be tackled by blockchain • UAE's monumental and risky Mars Mission to inspire future generations, says minister • Could the UAE drive India's economy? • News has a bright future and the UAE is at the heart of it • Architecture is over - here's cybertecture • The National announces Future of News journalism competition • Round up: Experts share their visions of the world to come
The National
2 hours ago
- The National
Nature's most underrated ally in the climate change fight is thriving in the UAE
Just beyond Dubai's skyscrapers and busy streets lies a five-square-mile wetland reserve that is a vital seasonal habitat for migratory birds. Earlier this month, the Dubai Executive Council approved a Dh650 million ($177 million) development plan for the Ras Al Khor Wildlife Sanctuary, as the reserve is known. And at the heart of this vision are trees – specifically, mangrove trees. The sanctuary is already home to thousands of mangrove trees, but it is in need of revival – which the new development plan does in addition to sustainably increasing its coverage area by 60 per cent. That's not just good news for birds and marine life; it's a bold bet on nature's most underrated ally in the fight against climate change. Countries are beginning to realise the massive untapped value of mangroves. They are nature's coastal bodyguards, buffering shorelines from storms and cyclones, reducing soil erosion and protecting against rising sea levels. Their tangled roots capture carbon dioxide – up to five times more than tropical rainforests – making them one of the planet's most powerful carbon sinks. Mangroves are also fish nurseries, bird sanctuaries and water filters. In the UAE, they provide critical breeding grounds for commercially important fish species such as mullet and sea bream. Ras Al Khor itself hosts over 450 species of wildlife, including large flocks of beautiful flamingos that rely on the mangroves and surrounding wetlands. Drones powered by AI are already being used in the UAE to plant and monitor mangroves at scale For coastal communities in the Global South, mangroves offer food security, income and natural protection all at once. Villages protected by mangroves have suffered significantly fewer casualties and damages during tsunamis and cyclones compared to those without them. These trees provide us with more benefits per square metre than any other ecosystem. The UAE sits at the crossroads of Asia and Africa which together host over 60 per cent of the world's remaining mangroves. This geographic position makes the Emirates a natural hub for mangrove conservation, knowledge exchange and restoration expertise. The government has already committed to planting 100 million mangroves by 2030, and this Ras Al Khor initiative is a major down payment on that promise. The country has become a hub for the wider industry associated with promoting the cultivation and spread of mangroves around the world. Large-scale, carbon-financed projects are being developed in the UAE and rolled out across Africa and Asia. The company is currently developing restoration and conservation projects on a coastal area similar in size to Luxembourg. NGOs like Emirates Nature-WWF and international players such as the IUCN are also active or headquartered in the UAE. The end result is a cluster that promotes knowledge-sharing and, ultimately, contributes to the fight against climate change in a niche, but nonetheless really impactful way. A single hectare of healthy mangroves can deliver the equivalent of nearly $33,000 per year in ecosystem services. This includes coastal protection, fisheries support, carbon sequestration and tourism benefits. Scale that up to the tens of thousands of hectares possible in the UAE and regionally, and you could be looking at a multi-billion-dollar nature economy. Mangroves also open the door to high-integrity carbon credits. As demand for nature-based carbon removal projects continue to rise, countries that can supply verified, high-quality blue carbon credits will stand to benefit. The UAE, with its ecosystem restoration commitments and home-grown blue carbon project developers, is perfectly placed to play a leading role in this marketplace. Historically, restoring mangroves has been slow, messy, and expensive. But that's changing fast. AI is now being used to map mangrove health, monitor growth and predict where restoration will succeed. Satellite imagery paired with machine learning can track seedling survival and carbon storage in real time. Drones powered by AI are already being deployed in the UAE to plant and monitor mangroves at scale. AI-powered tools are being used to map mangrove health, monitor growth and design community-led restoration projects that have the highest probability of success – saving time, money and effort. This innovation recently enabled the planting of 10 million mangroves at multiple sites in Mozambique in just three years. The UAE, with its tech-forward mindset and AI ambitions, could become a global hub for cutting edge nature-based solutions. With the right data infrastructure and policy support, mangrove forest restoration could become faster, cheaper and more transparent than ever. The Ras Al Khor announcement is a powerful moment for the UAE's mangrove ecosystem, and also a reminder to keep pushing to scale up. Indeed, the UAE has an opportunity to not only conserve existing mangrove forests but to lead a global mangrove renaissance. That means doubling down on science-based restoration using AI and satellite tech and continuing to draw investment in knowledge, training and project development. If done right, mangroves can become one of the UAE's most powerful climate assets. And that is the case not only for their value in biodiversity, but for coastal resilience, climate jobs and long-term economic stability. What's happening in the wetlands on the outskirts of Dubai provides a glimpse into an exciting future for the UAE and mangroves globally.
The National
2 hours ago
- The National
UAE Property: ‘How can I increase summer occupancy in my RAK rental unit?'
Question: I am buying an apartment in Ras Al Khaimah and want to rent it out for short-term rentals soon. How can I optimise summer occupancy and which local regulations must I adhere to? MP, Dubai Answer: Ras Al Khaimah is fast becoming a destination of choice, not just as a go-to staycation destination for the UAE holiday market, but also for longer-term visitors and tourists. With the arrival of the Wynn Al Marjan Island resort in 2026/2027, the emirate is likely to become more popular as a short-term destination. Here are a few things to remember and adhere to. By law, all tenancy contracts in RAK must be registered through the RAK Municipality e-portal. The fee is Dh25 ($6.8) plus 5 per cent of the annual rent. Unregistered contracts are unenforceable, stripping landlords of eviction rights and security deposit recourse. Standard residential leases are allowed up to four-year terms, but short-term leases of say two to four months must still comply with the Rent Act's eviction notice requirement, which is a minimum 90 days, and the security deposit rule, which is 5 per cent of the annual rent. Offer two- to four-month summer lets bundled with free utilities, complimentary AC servicing and optional maid services. UAE residents that enjoy staycations value turnkey, worry-free stays. List on leading short-let platforms such as Airbnb, local short-term rental agents and collaborate with GCC-focused travel agencies to tap into regional leisure traffic. Ensure your unit is presented in the best possible fashion by furnishing with high-quality appliances, blackout curtains, high-speed Wi-Fi, and a dedicated workspace to attract both families and remote working professionals seeking respite from the summer heat. Employ revenue management software to adjust nightly or weekly rates based on occupancy forecasts or get comparable data from portals and local holiday home agents. Look out for any local events that will potentially capture higher premiums. Conduct professional cleaning and safety inspections between tenancies to maintain high review scores. Offer flexible check-in/out times and transparent cancellation policies to build guest trust. Monitor competitor rates regularly to ensure your pricing remains competitive without eating into your yield. By combining regulatory compliance with targeted marketing and professional service levels, part-time RAK landlords can boost summer occupancy from roughly 45 per cent (unmanaged) to over 75 per cent, capturing premium short-let rates and maximising annual income. Watch: Businesswoman moves from Dubai to RAK to find some quiet Q: I would be interested to understand what are the emerging areas in Abu Dhabi and Sharjah in terms of capital appreciation, rental yields and which developers I should work with? CP, Sharjah A: While Dubai commands the headlines, Abu Dhabi and Sharjah are quietly delivering attractive risk-adjusted returns in well-priced, master-planned communities. I will list below some top picks that I think combine credible developer track records, infrastructure momentum and balanced capital appreciation. Starting with Abu Dhabi, the main master developer is Aldar. Some of its main projects are: Al Reem Island: Boasting a 7.2 per cent year-on-year price rise in the first quarter of 2025 and gross rental yields of 7.6 per cent for apartments, Al Reem Island blends waterfront views with high-street retail. The Central Market and Gate Towers precincts have strong presales, minimising completion risk and ensuring pipeline transparency. Yas Island: Driven by entertainment megaprojects such as Warner Bros, Ferrari World, Sea World, Yas Waterworld and the Yas Mall expansion, luxury apartments command 6.5 per cent to 7 per cent yields, with prices up 6.6 per cent in early 2025. The upcoming first Disney World in the Middle East will further elevate property prices and demand for both long- and short-term rentals. Al Ghadeer: A reclaimed land community by Aldar located on the Dubai-Abu Dhabi border, it offers entry-level pricing (sub-Dh1 million studios) and yields near 9.9 per cent, underpinned by affordable payment plans and infrastructural upgrades connecting to Sheikh Mohammed Bin Zayed Road. Main projects in Sharjah include: Aljada by Arada: This is a fully integrated town centre featuring three schools, 25,000 residential units, a 4.4-kilometre retail boulevard, hotels and public plazas, along with large green spaces and family entertainment areas. Aljada's off-plan apartments yield 5 per cent to 7 per cent, with an expected 7.5 per cent return on investment on handover. Arada's track record of delivering three large-scale projects on time adds to investor and end-user confidence. Tilal City (Sharjah Asset Management): Modelled on Mediterranean lagoons, Tilal City's early studio and one-bedroom launches delivered 6 per cent to 8 per cent yields, with mid-teen capital growth forecast as schools, clinics and malls open next year. Maryam Island: Launched in 2024, this waterfront mixed-use island has seen soft-launch price uplifts of around 8 per cent within six months and yields of around 6 per cent. This is driven by Sharjah's tourism push and the project's proximity to the Corniche.
