Dubai
Deyaar, the developer with a sizeable plot and property base in Business Bay, is working towards a diversification strategy.
A feasibility study is being done to determine whether it made business sense for the company to take on the role of a hotel operator as well for its future projects. “Doing so will create extra income, no doubt, but we have to first make sure that such a role will be one we can good at,” said Saeed Mohammad Al Qatami, CEO. “We are meeting consultants and the near future should see us taking a decision.”
Some of the leading lights in Dubai’s realty circles have already made the switch, while others are widening the scope of their participation. Nakheel, for instance, has confirmed hospitality will be a key driver of its medium-term planning.
“More than ever, Dubai’s developers have to diversify … it’s not moving away from the core business of building properties where people want to live or work. But adding new categories related to development will help the developer capture different market segments. Sticking to one core competency may not be ideal any more.”
Widening the client base for its property and facilities management services can add clout to the revenue stream, according to the CEO.
“When the time is right, developing a presence outside of Dubai is something we are looking at — Saudi Arabia and probably Oman and Egypt are options,” said Al Qatami.
Deyaar has had a good year, with the overwhelming response to the launch of the twin-tower project, The Atria in Business Bay featuring both residential and serviced apartments, setting the tone. It holds a sizeable land bank, which includes some advantageously placed plots in Business Bay.
“This is one property market where different needs and tastes are noticeable and developers have to make sure they can respond in time,” said Al Qatami, who added that raising more capital from shareholders is not on the agenda now.
