CNBC in January had an opportunity to sit down with Hussain Sajwani, Founder and Chairman of DAMAC properties during the World Economic Forum 2018. They touched on many different subjects including the development of two golf courses, Sajwani’s outlook on the property market in Dubai, and opportunities he sees in the United Kingdom.
Regarding the construction of two golf courses designed by Tiger Woods, they will be managed by the Trump Organization. Concerns raised whether President Trump, often associated with his brand, would effect DAMAC’s business performance as a result of his decision on Jerusalem.
Hussain Sajwani reassured his interviewers that he believed there would be no effect whatsoever. In fact, not only did the completion of the first golf course result in favorable results regarding its design and build-quality of the course, but DAMAC could see growth when results are shared later on. Sajwani also added that the golf course is one of the best in the world.
When it came to the property market in Dubai, Hussain Sajwani first addressed concerns of overcapacity. The market in Dubai is calling for at least 15,000 units every year, where over the last three years DAMAC has produced less than 10,000 overall units in each of those years. Therefore, not only is there room for growth but in the coming years, he expects production to draw closer to 10,000 to 12,000 units. Not just coming close to a supply and demand equilibrium, but it is also clear there is room for substantial growth in the market moving forward.
Lastly, Hussain Sajwani remarked his thoughts on growth in the United Kingdom. With an overflow of cash flow, he believes this cash is not fully leveraged at presence. Therefore there is a desire to invest in the right places. One of which is the UK, especially following Brexit where the pound is now priced more attractive when compared to pre-Brexit. The property marketing is also much more appealing as a result.
With the foreseen continued growth, Hussain Sajwani surely can expect to see DAMAC continue to perform despite perceived headwinds such as the recent headlines the President made.