Emaar may need to adjust in current crisis

Dubai: The Emaar Properties Chairman said on Sunday that growth remains strong but the company may have to "adjust a little bit" in the face of a global slowdown and a liquidity squeeze here in the UAE and Gulf to which the government and the central banks have responded admirably.

Talking to presspersons on the sidelines of the World Economic Forum inaugural Summit on the Global Agenda in Dubai, Mohammad Ali Al Abbar said, being a global company operating in 18 countries, it is not affected by what happens in just one country.

"We are affected by what goes on everywhere," he said. "We watch the global scene very closely. We are not affected by just what happens in New York, or Bombay or Indonesia or Cairo."

And if the global scenario doesn't get better, he said, "we will take whatever action to protect our business, and for that if we have to redesign some of it we will do that."

Emaar share price has tumbled more than 70 per cent in 2008 and when asked about the continuing decline, he retorted by saying, "I would say GE share prices are down, Johnson and Johnson prices are down, so we are a part of the global scene. So whatever needs to be done have to be conducted, proper business have to be done."

More specifically, on what Emaar has done to allay fears of an adverse impact on the company, he said: "You have to be alert and watch what's going on in the market carefully. And if your customers are having difficulty finding finance, you have to facilitate and delay some of the payment. You need to help them out."

Silver lining

In a market, where many sales agents have recently confirmed that off-plan sales have seen a slump in some areas, and banks have made it hard to avail loans, speculators are now in a tough spot. And Al Abbar sees a silver lining.

"The great advantage in a market like this is that the flippers go home," he said. "And that is a wonderful thing ... we are in the business not for flippers but for end users."