Cityscape marks year of tough challenges but solid progress for Damac Properties

In spite of a turbulent 12 months the company is confident that it can show investors and end users that it has continued to make solid progress on all fronts.

Since last year's event Damac Properties has handed over three projects - The Crescent, Executive Heights and Lake View.

In addition it has completed the structure of six further developments - Emirates Gardens 1 & 2, Smart Heights, Business Tower, XL Tower and Lago Vista. A total of seven contracts have been awarded since May with at least four more to be confirmed before the end of 2009. Those awarded so far include piling and enabling works at Marina Bay and Harbour Heights in Abu Dhabi; piling works at Burjside Boulevard in Dubai and enabling works at the Piazza in Qatar and at Surburbia in Downtown Jebel Ali.

On the construction side, the company's two flagship properties in Dubai continue at pace with Ocean Heights at Dubai Marina having reached 76 floors and Park Towers at DIFC expected to reach the top floor this month.

Chairman of Damac Properties Hussain Sajwani said that the progress seen in the last 12 months was all the more remarkable given the economic circumstances and financial crisis that had enveloped the world.

Sajwani said:

"It is important for us to come to Cityscape and demonstrate to people that we have continued to move forward and that in spite of some severe challenges that we are focused and committed to construction and delivery."

Sajwani added, "We have had to make some tough business decisions and learned some harsh lessons in the last year but we have taken all these steps with a view towards ensuring that the company can move forward."

"We have continued to award contracts and make progress at our main sites and whilst we have reviewed our construction plans we have not cancelled any projects in Dubai which is testament to the strength and solidity of this business," he continued.

Mr Sajwani also credited the continued successful progress made by DAMAC Properties during the year as being down to a coordinated and holistic view of the company's overall position. He pinpointed the company's Recovery Programme - where customers were offered the chance to switch their investment in an off plan development to one that was almost ready or well under construction as being pivotal to this.

"It was very important that we adapted to this rapidly changing market place and this meant looking at the changing circumstances of our customers as well," he said.

"Our Recovery Programme has given people the chance to realise their investment sooner than they had hoped. They can start receiving a rental income or even trade in the second hard market which is much more buoyant than the off plan market now and is likely to continue in this way for the foreseeable future," he stated.

Mr Sajwani added that whilst he believed the eyes of the world would be on Cityscape in 2009 that it was important to look forward and not focus on an era of rapid real estate growth that had gone forever.

He said, "At last year's event I was asked many times whether the UAE would be immune from the crisis that had already taken a firm hold of the US and Europe by then and I responded that we could not expect to be unaffected - but how we reacted that would be important."

"This has not been an easy year for any developer but I feel happy in what we have still achieved in delivering units to customers and planning for the future in a coordinated and effective manner. We are continuing to award contracts for new developments and we are working closely with our contractors on site to meet deadlines and deliver our promise of 25 towers by the end of 2011," Sajwani said.

Currently Damac Properties has 11,313 units under construction and has delivered 3,029. By the end of next year the company is expected to hand over a further 7,100 units across the GCC region.