Fighting back

zoom

Damac’s Sajwani believes property prices in Dubai will stabilise in the final quarter of 2009 and early 2010, and rise again in 2011.

Chairman and founder of private developer Damac Properties, Hussain Sajwani has seen Dubai bloom from a desert town to a 21st century metropolis. A key player in the emirate’s real estate boom, the property mogul is optimistic for both his home city, and the company he founded over 25 years ago.

Hussain Sajwani is running late as he swings into the bright room set on one of the top floors of Damac’s new offices at Dubai Internet City (DIC). Perhaps it is not surprising: the chairman of the Dubai-based developer has a lot on his plate these days.

Damac, the largest private developer in the Middle East, has found itself at the sharp end of international media criticism over the past few months. There have been rumours of cancelled projects and disgruntled investors, but Sajwani’s frustration is clear as he sets the record straight.

“Globally, I think we have an issue with the media,” he says, frowning, immaculately turned out in a snow white dishdasha, and polished black sandals.

“I think the negative side [of the media] is because of the tough competition. Everybody tries to break a story. Unfortunately, it is about getting the big headline regardless of how accurate the story is,” he argues.

Just three weeks ago the property firm was forced to issue a statement strenuously denying that its Hyde Park project in Cairo and Al Jawharah development in Jeddah had been cancelled, amid reports that pressure on investors to pay their remaining installments on time, or face action over breach of contract.

“Overall the media put themselves as a judge between two parties and a dispute. So if you bought something from me and you are unhappy, you can go to the media,” he says.

“I have 10,000 customers. Every customer that has a dispute is going to come and talk to you [the media]. The media should ask about the overall subjects of the industry, but they should not go into the issues of each individual customer. If you write something that is not accurate, it is unfair.”

While sensitivity is running high in Dubai following a spate of scathing stories in the British media, Damac, like all property companies in the region, still has its own issues to address. The group, which is part of conglomerate Damac Holding and employs 7,500 people worldwide, has been forced to axe three percent of its global workforce since October. It has also had to draw up a consolidation programme for its portfolio, which will see the developer prioritise certain projects.

“Our company had a plan for a soft landing. It was a harsh landing, so we’ve had to take some measures,” Sajwani explains.

“I think we realised the problem at a very early stage, and we were one of the first companies to take action in the first week of October,” he points out. “We have restructured the company and downsized the number of employees and offices. We have also switched our focus from launching new projects and buildings, to focusing on delivery and dealing with customer issues.”

It is all a world away from 1983, when Sajwani founded Damac as a local catering company servicing labour camps, schools and universities. Over 25 years, the conglomerate, Damac Holding, has through its subsidiaries diversified into everything from insurance to ceramic manufacturing and pest control. Subsidaries include the Bahrain-based Al Ahlia Insurance and Al Jazeira Service in Oman, which specialises in catering and service support.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Damac Parkside Project at DTJA
Posted by Hisham Elrufaie, abu Dhabi, UAE on Monday 27 July 2009 at 14:16 UAE time


Is this project going to start soon or is it cancelled?

told you so
Posted by paul, Dubai, UAE on Friday 22 May 2009 at 15:27 UAE time


I went to a DAMAC product launch a couple of years ago (for the buffet, which I have to say was ok but not great). The chairman spent the first 15 minutes of the event giving a speech dedicated to explaining why Dubai property was cheap and good value by international standards and why Dubai would absolutely and definitely NOT CRASH.

I think this sums up Dubai's problem - there was no humility to acknowledge a great deal of luck for the windfall, and no appreciation that there was a huge speculative bubble element in the market that simply could not be sustained. Instead the property companies convinced themselves that it could all last forever, and poured money into bigger and more absurd white elephant projects.

They say that pride comes before a fall. Look back to 2007 and 2008 and there was a lot more that pride on display. It was bordering on pure arrogance.

Damac Plse Add TANMIYAT
Posted by Mohamed Djirdeh, Dubai, UAE on Thursday 7 May 2009 at 23:30 UAE time


Thanks Mr. G. Dickinson, same with me with Tanmiyat Group. I bought a THREE B/R apartment on Dec 06, completion Dec 08. Paid 20%. No construction has been done, only a fence was put up few months ago. Feb 09 received first ever communication, letter of waiver of payment till end of April. On 02 March 09, second letter claiming FORCE MAJEURE. Can you believe 3 months after completion!!! Visited RERA no registration of contract!!! Now last resort the courts which want AED 30,000 as fees and a similar amount for lawyers!!! I suggest let us start a DEFENSE FUND? I suggest DUBAI CARES/GOVERNMENT should set up a defense fund.
Where else can we go MR. SAJWANI????? THE MEDIA. Yes THE MEDIA

Damac
Posted by Geoff Dickinson, Dubai, UAE on Thursday 7 May 2009 at 16:31 UAE time


I am a DAMAC customer and it has been a personal disaster for me. I bought in to HAZ Tower in June 2007 nearly 2 years ago. For the first year the property was on hold due to a dispute with Helal Al Zarooni. They finally issued contracts for the development renamed as Commercial Square in September 2008. Since then a fence and a portcabin has gone up. Nearly 2 years on I have paid 40% the project is not listed anywhere, I can not sell it. DAMAC refuse to give my money back. I have instructed lawyers who over a 5 week period have written 4 hand delivered letters to DAMAC and they have not replied to any of them. I understand delays, I understand the crisis. But developers can not take peoples money, keep it for 2 years, do nothing, refuse to give it back and refuse to reply.

View all comments (11) >>

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