Luxury Watches Become a New Source of Cash in the UAE

**Tim Elliott** (0:00)
This is Mira Business FM, it's the Morning Drive. Alternative assets right now, and luxury watches are no longer just status symbols. They are, of course, still status symbols, but in the UAE, they're increasingly being treated as financial assets. So Dubai Business is tapping into that trend with a new buyback model. And what it does is it allows owners to unlock cash from high-end timepieces, and then there's an option to buy them back later on.
George Flo is the founder of The Heritage Club, that's the company behind what it says, is the region's first luxury watch purchase and buyback service, and he's here, welcome. Good to see you.

**George Flo** (0:40)
Good morning, thank you for having me.

**Tim Elliott** (0:42)
Good to have you here, George. I'm fascinated with this, because we're seeing this with different levels of alternative assets. The first time I've heard about this with watches. So, are we moving into an era where an AP, I'm going to use the right terminology, or a Patek Philippe or a Rolex, is just another form of liquid capital?

**George Flo** (1:03)
I think that's exactly what it is. I think people are becoming a bit more astute to the fact that they, you know, they can purchase a watch that they can enjoy, they can admire, and for it also to have an inherent, you know, secondary residual value that they can capitalize on. So, I think it's becoming a lot more commercially aware for, you know, buyers and collectors to, you know, know that what they've got on their wrist is ultimately a liquid asset.

**Tim Elliott** (1:35)
Well, it is. I mean, look, you see some amazing watches, you buy, in particular, there's a great deal of availability.
People walking around with, you know, a house on their wrist, probably a mansion on their wrist, a Marbella pad on their wrist. So, your buyback service allows owners to unlock cash from their watches. They have an option to buy them back. Why is now the time to introduce this here?

**George Flo** (2:08)
I think raising capital in Dubai, with Dubai being such a hub of business, I think is quite difficult.
You know, it can be quite rigid. A lot of the methods of raising finance, you know, the traditional methods of finance, often are quite long. They're quite tiresome. You know, we're talking banks, ATGs, debentures, draw down fees. You know, for a solution where someone who can literally come in and within 90 minutes have additional funds instantly, you know, it's that speed, that solution, that route to market that I think is paramount.

**Tim Elliott** (2:54)
You can see it now as well, can't you? I mean, I'm just looking, I'm looking at the watch that you're wearing today, which is a...

**George Flo** (2:59)
This is Audemars Piquet.

**Tim Elliott** (3:00)
Audemars Piquet, this is a Royal Oak...

**George Flo** (3:03)
Royal Oak Jumbo.

**Tim Elliott** (3:04)
Jumbo, right. Okay. So that's an expensive watch. I won't be crass and ask you how much it is, although I am fascinated. But the thing is, these are very widely traded items. The values of watches like that and many others are widely available. So I suppose if you're looking to leverage that value, you know exactly what you're going to get. You can very easily go online and you know what it's worth.
Is that kind of the thinking?

**George Flo** (3:34)
100%. Watches are now and have become a universal currency that everyone understands.
The residual values and the awareness and knowledge of watches is global. And they're very, very easy to ascertain a price, a current market valuation. And buyers today have become a lot more astute. Instead of just buying for the love of the watch or the craftsmanship, they're also buying knowing that it's an asset that potentially can appreciate, but it's also an asset that they can leverage as well.

**Tim Elliott** (4:12)
Certain models just appreciate, don't they?

**George Flo** (4:16)
Not all watches, not all brands appreciate. That's the common misconception. However, every watch, every brand does have a secondary residual value. So, you're never going to get stuck.
Someone once said to me, if you've got a Rolex, you'll never go skint, because you can always cash out wherever you are, anywhere in the world, because like I said, it's a currency that everyone understands.

**Tim Elliott** (4:45)
I think everybody knows what skint means, but for anybody that doesn't, skint is no cash. Anyway, I think people know that.
Tell me about the buyback model. How does it work? And how much traction are you starting to see? Because you're here, what, six months?

**George Flo** (5:00)