Creating What Doesn’t Exist: Josef Kleindienst Discusses Innovation in Real Estate and AI-Driven Hospitality

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The Kleindienst Group is gearing up to celebrate its 40th anniversary in 2025. With a commitment to creating new experiences, the company is transforming the vision of experiential tourism and eco-friendly living through its monumental $6 billion initiative, The Heart of Europe.

In a recent discussion, Josef Kleindienst, the founder and chairman of the group, shared insights on innovative underwater living, the introduction of AI in hospitality, coral ecosystem restoration, and the legacy he aims to create.

How would you characterize the evolution of the Kleindienst Group as it celebrates its 40th anniversary this year?

We began our journey with just two desks and an important ethos: if it’s not there, we’ll create it.

Four decades later, Kleindienst Group stands as the largest European real estate developer in Dubai, with over 1,500 employees engaged in hospitality, tourism, marine engineering, and real estate ventures. From the outset, our goal has been to make an impact through innovation, sustainability, and a long-term perspective.

The Heart of Europe epitomizes that ambition, presenting a six-island destination designed to redefine the luxury hospitality experience. As pioneers, we were the first to successfully develop a complex, multi-island destination within The World, Dubai – a challenge unprecedented in the industry. This involved overcoming significant regulatory, engineering, and environmental hurdles with no existing guidelines. Nevertheless, we persevered, engineering the unimaginable and bringing our vision to fruition.

Today, we have introduced voco Monaco Dubai, which is flourishing as a destination attracting visitors globally. We’ve also completed the luxurious Sweden Beach Palace and constructed the Nice Hotel. These milestones illustrate the Kleindienst vision: to establish bold, innovative, experiential, and environmentally friendly communities that provide top-tier experiences.

We didn’t just build a resort; we actualized a vision and contributed to a forward-thinking model of tourism in Dubai.

The Heart of Europe is celebrated for groundbreaking concepts such as underwater living, climate-controlled avenues, and car-free islands. What is your approach to innovation, and what future developments do you foresee in Dubai’s real estate and hospitality sectors?

Innovation is integral to our ethos — it underpins everything we do. Our main objective is to generate world-class, immersive destinations that have never been experienced before and to make them tangible.

This perspective has led to The Heart of Europe being designed as a $6 billion landmark characterized by pioneering elements, including underwater bedrooms, climate-controlled streets, the soon-to-launch Snow Plaza, and islands devoid of cars powered by solar energy. These aspects are not mere design embellishments; they are carefully crafted experiences intended to push the boundaries of hospitality and immerse guests in remarkable environments.

Looking ahead, we will unveil the region’s first Buddha-Bar Hotel & Floating Villas, an $817 million luxury wellness resort that is part of Honeymoon Island — a concept centered around floating villas, diving zones rich in coral, and marine-inspired architectural designs. This represents a critical advancement in our mission to lead the upcoming era of restorative, experience-focused tourism while aligning with Dubai’s ambitions for innovation and sustainability.

How is sustainability woven into your projects, from solar energy initiatives to coral restoration? What does premium sustainable living entail for the next decade?

At Kleindienst Group, sustainability is the cornerstone of our efforts. Each component of The Heart of Europe is engineered to reduce harm while enhancing regeneration, employing 100% solar-energy operations, car-free movement, zero-waste systems, and water recycling rates exceeding 97%.

Our most significant achievements, however, lie beneath the water’s surface.

Through the Coral Institute, we have successfully rehabilitated over 100,000 coral fragments and constructed thriving artificial reefs surrounding our islands — fostering a self-sustaining marine environment that safeguards biodiversity and improves underwater habitats. These reefs serve not only conservation purposes but also as destinations for exploration.

Visitors can dive directly from their villas into vibrant coral ecosystems, navigate curated dive zones off Honeymoon Island, and observe the resurgence of marine life in areas that were previously lifeless. It is a unique merger of tourism and conservation, where guests actively participate in nurturing nature.

This is our vision for the future: to create destinations that are sustainable and high-performing while delivering unforgettable experiences that contribute positively to the environment.

With the rise of AI transforming the real estate landscape, how is the group utilizing technology to enhance both operations and the customer experience, including the introduction of Olivia, your AI-driven concierge?

We are not merely developing real estate; we are crafting interactive, intelligent ecosystems.

Our AI concierge, Olivia, offers guests, brokers, media, and investors 24/7 immediate access to updates, insights, and support on demand. AI serves a deeper function as well, facilitating seamless engagement with customers—ensuring that every interaction is smooth and personalized.

Our dedication to innovation propels us toward a future where AI is intricately woven into our core operations. Going forward, we intend to harness AI to refine project planning and enhance guest experiences in hospitality.

What is your long-term vision for The Heart of Europe, and what guidance would you provide to other developers aiming to balance ambition, impact, and innovation in today’s environment?

Dubai’s future is ambitious, and as developers, it is our responsibility to help shape it.

The overarching vision for The Heart of Europe is to become a destination in its own right: not merely a place to stay, but a compelling reason for travel. Our aim is to create a cultural, innovative, and hospitality hub that brings the best of Europe to Dubai.

Every developmental phase aligns with national strategies, encompassing the UAE Tourism Strategy 2031, Dubai’s D33 Economic Agenda, and Centennial 2071 through initiatives such as renewable energy integration, coral reef restoration, smart infrastructure, and long-term tourism investments. Our objective is to generate value for all stakeholders, ensuring every project is both commercially viable and prepared for the future—climate-positive and experience-centric.

To fellow developers: think beyond the present; focus on what lies ahead. The most successful projects will not necessarily be the largest, but rather those that leave a lasting legacy environmentally, economically, and culturally. If it does not contribute to the future, it is merely construction.

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