The Merchant developer

zoom

The Group CEO of Ruwaad Holdings talks to Matt Warnock about reasonable approaches to the current financial situation.

A couple of years ago, I interviewed a big name architect who had made the rather interesting sideways move from designing luxurious marinas, the field in which he had become internationally famous, to creating high-end watches.

In a time when most jewellery is seen as brash and an off-the-rack suit looks every bit as good as a Saville Row special, a man's timepiece and his car, he claimed, are the only outward manifestations of success that today's man can still embrace.

It's an axiom that has, in the main, held to be true; but, as I arrive to interview Hayan Merchant, I'm remaindered that there's at least one more expression of achievement that is open to men: their office. Sitting in the Emaar buildings beneath that most towering of all monuments, the Burj Dubai, Ruwaad Holdings' office is a breath-taking ode to modernity - more sprawling penthouse suite than traditional corporate nvironment.

Detractors may say that this is a fitting metaphor for Dubai's real estate industry; its reputation has certainly suffered from a smoke-and-mirrors lack of transparency, whether by design or by accident, until now.

However, this is the company built in the image of its Group CEO; and Merchant is known throughout the industry for his straight-talking, shoot-from-the-hip style.

"What's happening now is happening for the first time since 1929. The current situation is just the same," says Merchant of the economic slowdown. Pessimistic rumour-mongor? Not at all. Just a realist, a pragmatist.

"Whether you're in the USA, the UK or even Russia, at the ground level, it's the same in all these places. All the key cities will have similar stories to tell. Dubai has done an excellent job in marketing itself, so perhaps it takes centre stage a little. However, even 18 months ago, returns in the UK or USA were barely as good as they are here in the UAE right now."

While he may be known for his frank approach, Merchant's answers are also considered. There's something of the academic about him, as he speaks with absolute confidence and draws on studies and precedent. "Banks are clearly making reviews, and this is a transitionary time. Companies need to readdress expected appreciation and yields."

There has been a change of sentiment too, says Merchant, along with a realisation that the previously held sentiments may not have tied in with reality. "Looking ahead to the next six or 12 months, as developers, we'll need to see how things pan out. The current situation removes certain types of investors from the market which could well result in better products and better deals for the general public. Like years ago, we're likely to see more end-users buying; and buying closer to completion."

A realist he may be, but Merchant still has a great deal of faith in the UAE's property market. "At Ruwaad, we're taking a prudent approach and paying a lot of attention to financing and studying the sector's background. But the market confidence is already in place for the sector to continue - just on a more cautious setting.

"Timeframes will always produce hurdles and there are certainly challenges to be faced - over the next few years, financing, for example, will be an issue - although the short-term problems should have little effect on Ruwaad. We've considered all the issues and everything is going according to plan and will be produced on schedule."

If Ruwaad Holdings has produced a textbook demonstration of ‘rolling with the punches' where the credit crunch is concerned, then look up ‘welcome with open arms' for the company's attitude towards the new regulations that are currently being introduced throughout the sector.

"Regulations can only be positive. More regulations equals more confidence from the investor community. This opens up the real estate market to the likes of pension and investment funds."

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM