Abdallah Hageali

The real estate sector is a big contributor to the UAE’s GDP, last year it contributed 8%. How do you assess the real estate industry and what are the main factors behind its contribution?

The real estate industry is a really important factor in the UAE. The growth it had in the past 3 or 4 years was tremendous especially with the success story of Dubai; this growth has spread all over the Emirates. At the moment real estate is one of the major employers in the UAE. Through the real estate industry other business lines that are directly related to this industry will nourish, such as hospitality, education, retail and health care sector.

How do you see the future of the real estate sector?

The UAE still has major of shortages in real estate; based on the most conservative report the supply will not meet the demand till 2010. I see a lot of opportunity for Growth in the UAE.

So the contribution to the GDP will stay consistent?

I would believe very strongly so.

The newly established real estate regulatory agency introduced significant structural changes to the real estate legislation, there have been projects like the new 5% rent cap to cut inflation so how do you asses this change in law?

The law that was recently passed brings comfort to investors and end users, it puts the laws into effect and it insures that industry is properly regulated. I think all the major developers have been calling in for this law, which will place confidence especially with institutional investors. In respect to the 5% rent cap, it is measure to control the rising cost of rental properties. It helps but will not resolve the problem until the supply and demand is stabilized.

Is there any particular part of the legislation that is the most important to the industry?

The most important part of the legislation that RERA has put into effect is the escrow law and the regulation for the real estate agency. This will insure the protection of the investors and the end user. I believe the industry is moving in the right direction.

What are the positive effects for the developers themselves, not the investors?

This regulation will have positive effect on developers; it lays the ground rules for the developers and insures that everyone is operating with the same standard.

So only the strongest developers that are most credible will survive?

I would say the not only the strongest but the industry professionals.

So the Egyptian Investment Bank has declared that property prices in the Emirates shot up by 20% in 2007 also we see the soaring inflation of about 10% in 2008, so how will this affect demand? Do you think we may be headed for a market correction?

Population growth in the UAE as per recently issued statistics, is growing at a fast rate. The gap between the supply and demand is high, and that is the one of the main driver in the price increases. Another factor is the increase in the prices of raw material. These factors are contributing to the property price increase. Inflation is more of a regional if not a global issue due the growth that was experienced in the major developing countries. As long the demand is outstripping the supply I do not see price corrections in the near future.

The electricity distribution, roads, infrastructure, productive resources these are all the major challenges and some of them are causing delays in construction.

I agree these are challenges that face all economies that are growing in such a pace. I believe that these challenges will be overcome in the near future.

On the business level how does Tameer guarantee high quality products on time whilst facing these challenges?

At this stage Tameer always aligns itself with reputable companies whether it’s from a consulting point of view or contractors. These alliances insure that we deliver the products we have promised. It’s a challenge.

So basically you’re managing well the relationship between contractors?

Yes, you have to have strategic alliances with world leaders and work with them so they deliver on time with the quality it should be delivered.

In 2005 Tameer holdings investment formed a partnership with Al Rajhi investment group and this has marked a significant point in the firm’s investment portfolio in the market exceeding the 40 billion mark. You are one of the leading developers in the region so what is your competitive advantage compared with the other competitors in the market?

Al Rajhi Investment Group is a major shareholder in Tameer. They joined the company in 2005. They brought with them the tremendous network and experience of other industries they are involved in. This partnership and their solid financial strength with the experience of the management team on board will give Tameer the competitive advantage. 

So it’s about corporate structure and aggressiveness strategy?

Tameer has gone through corporate restructuring last year, which enabled us to diligently pursue the aggressive strategy the shareholders have put in place.

And what is your current position in the markets?

We’re considered one of the leaders in this market, and the achievements that Tameer has done in the three years in tremendous.

What is the relationship between Al Rajhi Investment Group and Tameer? What are the fittings and complimentary parts to this deal?

Al Rajhi Investment Group are major shareholders in Tameer, they bring in the experience they have acquired in other industries that they are involved in, the financial strength needed for growth. Tameer has real estate experience with s solid management team. I believe it is a perfect fit.

Can you tell me more about your major achievement, your biggest and best project and why is it special?

All our projects are special and I think all of our projects as achievements. If you look at our projects each one is unique and was a challenge to get it to where it is. We strive to have our projects in prime locations and iconic which will differentiate it from any other projects. This is one of the reasons of our success in this short period of time.

You mentioned the property and construction market in the Middle East is witnessing an ongoing boom attracting international investors from around the globe. So how do you attract your investors, what are your plans in terms of clientele?

Our projects speak for themselves. We have consistently delivered on what we have promised. This in time will increase our credibility and the confidence of our investors in Tameer. 

An in terms of you clientele for instance are they more from the GCC countries?

Our clientele base is wide spread, Europe, GCC and the Far East.

As one of the major market leaders what is your social contribution?

We have a program for CSR and it’s led by our team in Tameer.

Tameer Holding mentioned: we have signed a number of agreements and launched several new projects; we have entered new local and regional markets such as Abu Dhabi and residential property developers. What are your further extension plans?

Expansion now will be mainly in Northern Africa, GCC countries and Asia so those are the regions we will be targeting.

And what are your goals for growth?

Our vision is to become the most trusted real estate company. I think having that, becoming one of the trusted names will generate the growth we endeavor.

How do you see the future of the company?

Tameer has a great future. The growth that we have experienced and the strategy in our expansion, will lead us to consistently be one the leaders in this industry

Are you looking for any global partnerships?

We are always open to strategic and global partnership. This will be part our growth.

You have been in the industry for the past 20 years, what is your ambition in Tameer?

I strive to have Tameer one of the industry leaders which others would like to follow.

Is there any specific message you would like to give to our audience or readers?

The growth and the potential for growth in the UAE is one of the best promising ones. The UAE is the place to be.