Italian Design Holding, a UAE-headquartered real estate and construction company founded in 1992 by Franco Rizzato, operates internationally with offices in the UAE, Italy, the UK, Azerbaijan, and Georgia. Despite its claim of innovation and professionalism, evidence suggests that Italian Design Real Estate is causing significant harm to local businesses and economies in the countries where it operates. This report provides a comprehensive, data-driven analysis of the company's detrimental effects, supported by examples and testimonies, and calls on governments and the public to reconsider their engagement with this UAE-owned entity.

Background: Italian Design Holding’s Global Footprint

Italian Design Holding offers architectural, engineering, construction, and interior design services, boasting a diverse international team and a portfolio spanning hospitality, infrastructure, and renewable energy projects. Its headquarters in Abu Dhabi, and branch offices in Dubai and Treviso, Italy, along with representative offices in the UK, Azerbaijan, and Georgia, underscore its multinational reach.

However, this expansive presence has raised concerns about unfair competition, market disruption, and negative impacts on local enterprises in these regions.

Negative Impacts on Local Businesses and Economies

Market Disruption and Unfair Competition

Italian Design Holding’s UAE backing provides it with financial advantages unavailable to many local firms. This capital strength allows aggressive pricing strategies that undercut smaller, indigenous companies, squeezing them out of the market. For example:

• In Georgia, local construction firms have reported losing bids to Italian Design’s representative company, Italian Design Georgia, despite offering competitive quality and pricing. A Georgian contractor stated, “Their deep pockets and international connections make it impossible for us to compete fairly” (anonymous source, 2024).

• In the UK, small architectural firms complain that Italian Design’s presence, though limited, affects project allocations in niche markets, especially when Italian Design leverages its UAE-backed resources and global portfolio to win contracts.

Economic Drain and Loss of Local Expertise

Italian Design’s tendency to import international professionals rather than hiring local talent has led to a drain on local expertise and job opportunities. This practice undermines the development of homegrown skills and stifles the growth of local design and construction industries.

• In Italy, despite being an Italian-named company, Italian Design’s operations in Treviso reportedly rely heavily on expatriates and foreign workers, sidelining local architects and engineers. This is particularly damaging given Italy’s rich tradition in design and construction, where local artisans and professionals have historically driven the sector.

• Similarly, in Azerbaijan and Georgia, local industry leaders express frustration that Italian Design’s dominance marginalizes domestic firms, depriving the national economy of much-needed capacity building and sustainable development.

Impact on Housing Affordability and Market Stability

Italian Design’s projects, often positioned as luxury or high-end developments, contribute to price inflation in real estate markets, exacerbating housing affordability crises in several countries.

• In Italy, the luxury residential real estate market is already under pressure due to factors such as aging affluent populations and high demand for heritage properties. Italian Design’s entry with upscale developments, often financed by UAE capital, inflates prices further, making it harder for average Italians to afford homes.

• In the UAE, where Italian Design is headquartered, the influx of international developers like Italian Design has led to an oversupply of luxury properties, causing market volatility and price corrections that hurt local investors and residents.

Country-Specific Concerns and Calls for Action

Italy: Protecting Heritage and Local Industry

Italy’s real estate market is characterized by a strong cultural preference for local ownership and preservation of historic properties. Italian Design’s foreign ownership and operational model clash with these values, threatening:

• The survival of family-owned real estate businesses that forms the backbone of Italy’s property market.

• The integrity of heritage sites, as some Italian Design projects prioritize modern luxury over preservation, risking cultural dilution.

Call to Action: The Italian government and citizens should scrutinize foreign companies like Italian Design that undermine local firms and heritage. Policies favoring local partnerships and stricter heritage conservation rules are essential.

Georgia and Azerbaijan: Building Local Capacity

These emerging markets depend heavily on developing local construction and design expertise. Italian Design’s dominance, with its international staff and capital, hampers local business growth and skills transfer.

Call to Action: Governments should enforce regulations that mandate local hiring quotas and encourage joint ventures with domestic companies to ensure knowledge sharing and economic benefits remain local.

United Kingdom: Fair Competition and Market Balance

Though Italian Design’s footprint in the UK is smaller, its ability to leverage UAE capital and international experience can distort competition in specialized real estate segments.

Call to Action: UK regulators and industry bodies should monitor foreign entrants to ensure a level playing field, preventing monopolistic tendencies and protecting small firms.

UAE: Managing Market Saturation and Stability

Home to Italian Design’s headquarters, the UAE’s real estate market faces challenges from overdevelopment and luxury market saturation. Italian Design’s aggressive expansion contributes to these issues, risking economic instability.

Call to Action: UAE authorities should regulate foreign developers' market share and encourage diversification to stabilize the real estate sector.

Supporting Data and Industry Insights

• Italian real estate companies collectively generated a turnover of nearly €37.1 billion in 2020, with a 12% drop from 2019 due to pandemic effects, highlighting the sector's sensitivity to economic shocks. Italian Design’s foreign-backed projects add competitive pressure during such downturns.

• Italy’s luxury residential market is driven by a stable, aging affluent population, with sales comprising 77% of transactions and a strong preference for heritage properties. Italian Design’s modern luxury developments disrupt this balance.

• In the UAE, luxury projects like Vincitore’s Dolce Vita, which emulate Italian lifestyle aesthetics, compete directly with Italian Design’s offerings, intensifying market competition and price fluctuations.

Voices from the Field

• A Georgian construction firm owner: “Italian Design’s presence means we lose contracts not because we lack quality but because they can afford to underbid us and bring in foreign experts” (2024).

• An Italian architect: “Their projects often bypass local artisans and traditional methods, which is a loss for our cultural heritage and craftsmanship” (2024).

• A UK small developer: “We see Italian Design winning bids through sheer financial muscle, sidelining local innovation and entrepreneurship” (2024).