Damac shelves some overseas expansion plans

EXPANSION RETHINK: Damac is shelving plans for expansion into India, Pakistan, Morocco and Tunisia. (ITP Images)

Dubai developer Damac Properties has shelved plans to expand operations into India, Pakistan and Morocco due to the current market conditions.

Hussain Sajwani, chairman, Damac Holding, also said a decision on whether the company would go for an initial public offering would also depend on the state of the markets and dismissed rumours that the company would merge with another real estate firm amid the global financial crisis.

"Damac is financially strong and we have no plans to merge with any other company," he said.

Damac was expected to list on the Dubai Financial Market by as early as first quarter 2009 to help fund projects at home and abroad, UAE daily Khaleej Times reported on Wednesday.

While confirming that the company would hold off on launching projects in India, Pakistan and Morocco, he reiterated his commitment to developments in Dubai, Abu Dhabi, Egypt, Kurdistan, Jordan, Saudi Arabia and Qatar.

“We will relook at the subcontinent and African markets in 2010 based on the situation,” he added.

His comments come just weeks after the company laid off 200 of it 8,000 staff although the chairman insisted Damac was still recruiting "staff for those departments that we need people".

Sajwani also dismissed as pure speculation reports about Damac’s merger move with another Dubai-based entity.

Sajwani claimed 2008 had been a good year with profits to the tune of more than 500 million dirhams for the first nine months of the year.

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READERS' COMMENTS

A Bit of Positivity
Posted by Joe, Dubai on Wednesday 26 November 2008 at 10:33 UAE time


Good to hear from one developer at least! Some money being made. Usually there are only negative stories about the private developers in the press.

Hopefully we will hear more good news soon

Please deliver your promises...
Posted by Peter Lee, DXB, UAE on Wednesday 26 November 2008 at 08:36 UAE time


Why not talk about delivering your promises first before your so-called "overseas" expansion...

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