Above the competition

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CEO Riad Kamal is proud of the firm’s quality projects.

CEO Middle East asks Arabtec CEO Riad Kamal, the man at the helm of one of the Middle East’s biggest construction companies, about the future of the region’s construction sector.

What sets Arabtec apart from its competitors in the Middle East?

There are a few good regional construction companies in the Middle East and Arabtec is one of them. Arabtec has been consistent in delivering quality of the highest standard on all the projects the company has completed, or is still involved in, a strategy essential to our success. Most of our senior and middle management staff have been with the company for many years, demonstrating loyalty, professionalism and dedication.

From the date Arabtec became a public company our strategy was to expand geographically and to diversify the types of services that we provide. This has been evidenced through our acquisition strategy which commenced in 2007. Our vision is still on track, although the circumstances in Dubai are causing us to look at new markets earlier then we might otherwise have done.

Do you believe that the value of real estate will continue to drop in the region or do you foresee prices stabilising soon? If so, when?

Prices have dropped already and are expected to stabilise in the near future. There will continue to be a significant market for real estate in the region because of the large size and needs of the population across the GCC countries. Currently, there are not many affordable units available and there will be a growing need to change the mix of products/units on offer to cater for these needs. In Dubai, plans for future real estate development will start to be more realistic, with robust feasibility studies being undertaken to support the decision for any new construction.

In Abu Dhabi, construction activity has recently started to increase. In the UAE capital, the supply of real estate currently does not meet existing demand and we believe that the prospects for the real estate industry in the emirate are good.

The Kingdom of Saudi Arabia has a much larger population, with a significant shortage in facilities and a high demand for housing and infrastructure. In Saudi, studies show that there is a requirement for an additional two million housing units, in order to meet expected demand, in the near future. It is there that we see a wealth of opportunities for the construction industry in the region.

The GCC will still experience positive growth in the future because the demand is there. The growth however will not return to the same levels that were enjoyed prior to the final quarter of 2008.

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