Crunch time

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Dougall Harvison, Bluehaus.

In reality, only four or five hotels opened every year, Sweid claimed, and reiterated the company's growth target of 40 percent per year over the next two years.

"There are certain developments in Dubai that have to be done. It's not by choice as much as by force," he said, citing infrastructure projects such as the Dubai Metro.

Furthermore, if Dubai looks like it may not be entirely cushioned from the impact, there are other regional markets that still offer plenty of opportunity. "[There] will be quite a noticeable slowdown [in Dubai] but Abu Dhabi will definitely compensate for that slowdown in the short run, as well as in the long run," Sweid said.

"We're actually gearing up for it to potentially affect us next year but thankfully we have an office in Abu Dhabi and everyone is saying that even if Dubai slows down, Abu Dhabi probably won't," agreed Corrigan.

Invariably, there will be a slowdown, but this let-up in pace could have silver lining of sorts. "These are small emirate states without massive infrastructure to support, so if they are very wise and very careful and very cautious and maybe even throttle back a bit, it will help them," said John Carolan, director of KCA International.

After a whirlwind couple of years, it could give the industry time to stop and take stock - and start working to more reasonable timeframes. And it may also serve to raise the standard of work, and companies, on the market. "That's thing about this credit crunch, it might actually clear a few of the rogue traders," said Harvison.

"There's a lot of companies over here that set up overnight, because they think it looks easy," Corrigan agreed.

"I think if anything positive comes out of a market slowdown in Dubai, it's going to be that the more robust and mature and professional companies are going to be the ones that reap the benefits. We are expecting that we might have to do more speculative work and clients are going to be expecting more upfront - which is what you would expect in a mature market. I think we have just had it too easy for too long, to be honest."

Flexibility will be the key to survival, agreed Carolan. "We are just watching the way the wind blows but we are going to be very flexible on how we adapt and change to these circumstances. And sometimes it changes gradually and you don't even really notice and sometimes it changes very quickly and you have to be on the ball to make sure that commercially you are still in front of the game," he maintained.

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READERS' COMMENTS

When the going gets tough the weak starts to fall through!
Posted by Hal-Luke Savas, London, United Kingdom on Friday 12 December 2008 at 06:42 UAE time

The golden rule of buildings industry is that the tough marketing gets going when the going gets tough. One can not market buildings like lemons but one can market buildings where others fail. The difference between failures and the winners is the degree of gambling and professionalism involved in managing the business. The starting point is to squeeze out every Dirham or Pound through existing portfolio by superior facilities management and invest back every Dirham or Pound saved into BMS (Building Management Systems). Naturally you will need a professional workforce to achieve the merry-go-round but if you are achieving it then you are managing professionally.

In short, a professional will not be running away from (so called!) hard times but see it as an opportunity to increase productivity, effectiveness and the efficiency of his building stock by rolling it into superior marketing.

That is the real challenge folks; so let scare stories be scare stories.

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