Hydra boss apologises for project problems

ALL ANSWERS: Dr Al Fahim has apologised for problems encountered regarding Hydra Village. (ITP Images)

The boss of one of the biggest developers in Abu Dhabi has apologised to investors amid mounting anger about price hikes at its flagship project.

Hydra Properties CEO Dr Sulaiman Al Fahim, who is taking part in a live online Q & A session for ArabianBusiness.com, said he was sorry to investors who have had "poor customer service".

Dr Fahim said: "It is clear that the communication has not been adequate. These projects were launched during the boom. We have hired a dedicated team to deal with these issues - but let me take this opportunity to personally apologise to all Hydra investors who have had poor customer service."

The Hydra boss also left his personal email address for investors to write about their concerns.

He gave a personal assurance that Hydra Village would be completed by the fourth quarter 2011.

Asked when he thought the property market in the UAE would recover, he replied: "With the wisdom of the UAE government, I think the worst is over. We are playing catch up, but I don’t really see any upturn until first quarter of 2010. But I also really don't see us reaching the good levels we experienced before until at least 2011."

Dr Al Fahim dismissed claims that over 1,000 Hydra Village investors were late with their installments and said: "I don’t know where your figures come from but they are wrong.

"As the CEO, I can tell you that my finance department is showing regular payments and new contracts being signed regularly."

He said he was willing to change payment plans, after investor complaints that installments are not linked to construction progress.

And he hit back at claims that the penalties for cancelling contracts are too harsh at Hydra Village.

"Firstly the rules and clauses were there from the time the investment was made. Obviously that was during the boom. Now I am fully aware that the market has changed, but the penalties listed above are far less severe than the original reservations that were signed by our customers. If anything this version is more favourable to you," he said.

But in an olive branch to investors he then went on to say: "But I also know that customer is king and we are trying to resolve issues. If there are specific cases where you cannot meet the payment because of the penalties or other reasons, I can tell you we will examine every case on an individual basis."

He signalled that investors were returning to the UAE real estate market on the back of a "dramatic improvement in consumer confidence".

Fallout from the global crisis has sent prices plummeting in the UAE and led to billions of dollars of project delays and cancellations.

Arabian Business reported that a group of disgruntled investors who had bought at the developer’s flagship project - Hydra Village in Abu Dhabi- had launched a public campaign over imposed price increases of units which they considered unfair.

Investors have also complained that construction on certain Hydra projects has been slow.

In response to the rising tide of investor anger Sulaiman al Fahim, hired Ahmed Khalil to head up Hydra’s customer service division.

At last months’ property exhibition Cityscape in Abu Dhabi Khalil said Hydra was issuing revised contracts to buyers in a bid to improve customer relations.

Abu-Dhabi based Hydra was launched in mid 2006 by conglomerate the Royal Group.

The developer specialises in residential and commercial property in the UAE, Lebanon and Pakistan.

Click HERE for Dr Fahim's responses in our exclusive live Q&A session.

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READERS' COMMENTS

Hydra Properties
Posted by Saleh on Friday 15 May 2009 at 04:52 UAE time


Has CEO Hydra considered the human cost of the unilateral decisions made by Hydra Properties? A number of families are facing emotional and financial trauma because of the arbitrary decisions and the business practices of Hydra (price increases, severe late payment and cancellation penalties, threatening letters).

Has he forgotten the message of Allah's Messenger (may Allah's blessings and peace be upon him) who said, "The Muslim is he from whose tongue and hand the Muslims are safe; and the believer is he whom men trust with their lives and their property."

He also warned his followers:
"save yourself from the cry of the oppressed, for there is no barrier between the supplication of the oppressed and Allah.”

He should know islam has placed great emphasis on Haqooq-ul-ibad (rights of other human beings), honesty and justice, and is intolerant of dishonesty in all its various forms.

CEO Statements inaccurate
Posted by Eddie Frost, Abu Dhabi, UAE on Thursday 14 May 2009 at 16:05 UAE time


I disagree with the CEO.

I have applied several times for a site visit. I have even filled out their request form. I was told only last week that site visits were still not permitted.

Those are the facts.

simply apologising for unethical behaviour doesnt mean you can get away with it.
Posted by the investor, dubai, United Arab Emirates on Wednesday 13 May 2009 at 00:52 UAE time


From what i made out from the man's comments they dont plan to change much except for apologising while continuing to give customers the short end of the stick.

Hydra Village
Posted by Bob, Abu Dhabi, UAE on Tuesday 12 May 2009 at 18:53 UAE time


Does anyone know of anywhere else in the world where a seller is able to sell an off-plan property without a contract and then a year or two later provide a contract showing an increase the price of what he has already sold?
Beware of buying Hydra Village units!

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