By Andrew White
Drake & Scull CEO Khaldoun Tabari says announcement is 'very positive' for Dubai.
Khaldoun Tabari, the CEO of Drake & Scull International, on Thursday welcomed the Dubai World debt announcement, but suggested that the next few years will see consolidation instead of renewed growth.
“It’s very positive and we’re all very happy, but everybody has to be prudent,” Tabari told Arabian Business.
“There is not room for people to go out and borrow more money to build new properties, so it’s a time of consolidation.
“The flow of work will not be there; I do not see that there will be a surge in work,” he added.
“I think what this means is that everybody will try to meet their obligations in the market, but not for two or three years will we see a surge in construction because we have an oversupply.
“This will encourage people to consolidate and be a little bit more positive,” he added. “It is in line with what we have become accustomed to seeing from Dubai and its rulers.”
Last month, Drake & Scull International said it had $136.1m to spend on acquisitions in 2010, which includes three firms, as it continues to expand and weather a downturn at home.
Drake a contractor which specialises in mechanical, engineering and plumbing (MEP) businesses and listed on the Dubai Financial Market in March - has been rapidly expanding operations outside Dubai, where house prices have plunged some 60 percent since their peaks in 2008, and billions of dollars worth of projects have been put on hold or cancelled.
Finally someone with a realistic view of the whole thing.
Its positive to see Arabianbusiness.com has published some balance news amidst all jubilance.
Thanks for this comment -