By Bernd Debusmann Jr
The managing director and CEO of Gargash Group advises that investors take time to observe the market before investing in any one asset class
UAE residents should be cautious about any investments amid the current Covid-19 pandemic, according to Gargash Group managing director and CEO Shehab Gargash.
Gargash is also the founding chairman of Daman Investments, a non-banking financial service company based in Dubai that has been operating since 1998.
In an interview with Arabian Business, Gargash that that in the current climate, he advises against quick investments and any expectation of returns-on-investment.
“Hold on to it and watch what happens. Do not rush into investments today. I do not think there will be an imminent, overnight bounce back of growth and activity,” he said. “It’s going to come back, but it will be more deliberate. It’ll take more time.”
Gargash added, “If I was an investor with AED 1 million, I’d hold back and watch and observe. I’d make a convinced decision before I take the plunge and go into one asset class.”
At a wider level, Gargash said he believes many companies in the UAE are preoccupied with survival, rather than in longer-term outcomes.
“People aren’t looking at their strategies, or their plans. They’re looking at the daily details of expenses, revenue, cash in the bag,” he said. “The immediate oxygen for the business to live through this.”
“Many businesses will not appreciate the impact of what they thought were very small elements, like levels of leverage and borrowing that seemed manageable a few weeks ago,” Gargash added. “These will deal a fatal blow to a lot of businesses.”
A feature-length interview will be available in print and online in the next edition of Arabian Business magazine, due Sunday, May 31.