With a series of successful offers, Deyaar Development concluded its participation in the global event Cityscape Dubai 2017, where the company launched a range of exclusive promotional offers on several of its projects, including the luxury «The Atrium» project, which features a 30-story residential tower, and »Midtown,» for which exclusive payment plans were designed, in addition to the «Moon Rose» project, and the booth witnessed a growing turnout of exhibition visitors.
A delegation from Amlak Real Estate visited the booth and held a meaningful discussion with Mr. Saeed bin Mohammed Al-Qatami, the company’s CEO, to highlight the company’s activities, achievements, and vision.
To begin with, could you tell us about the company’s founding?
Diyar Development was established in 2002 with a paid-up capital of 18.38 million UAE dirhams, and, thank God, it has experienced steady growth over the past decade to become one of the leading real estate development companies in the region. Following the initial public offering in May 2007, the company’s capitalization reached approximately 5.78 billion dirhams. Our achievements have continued across all sectors of the real estate industry, and, praise be to God, over the years we have gained experience and trust, building our strategy on investing in Dubai first.
Do you consider the returns from facilities and property management to be worthwhile?
As I mentioned earlier, we possess experience, trust, and managerial expertise. By the grace of God, Al Diyar Development manages manages more than 21,000 residential units stretching from Abu Dhabi to Ras Al Khaimah, and our business is constantly expanding despite the fact that the return rate is modest, reaching 3%, while at the same time, owners consider it substantial.
How do you view competition in the property management market, and what are the annual income rates?
There are many promising companies operating in this field in both the UAE and Saudi Arabia. They manage and operate properties worth billions of dirhams and do their utmost to satisfy both the tenant and the owner simultaneously. As is well known, this sector does not require as much capital as real estate development. As for us at "Diyar Development," thank God, we are in a good position, and our annual income from property management is around 60 million dirhams.
News reports suggest you have a partnership with Millennium. Can you tell us about this collaboration?
Yes, we have had agreements with Millennium since 2015. The company is distinguished by the diversity of its hotels and properties, as it owns three-, four-, and five-star hotels. and based on our experience in the market, we have found that collaborating with a single operator is better than working with two different ones. God willing, by mid- 2018, we will have approximately 1,000 hotel apartments, Of these apartments, we will offer 90% on the market, while reserving a small portion for businesspeople and investors. God willing, 2019 will serve as the introductory year for the public to learn about these hotel apartments, and we will focus on retail sales, highlighting their services and features, especially since they take into account the customs of Arab societies and the teachings of Islamic law. This is in addition to the fact that we rely on modest returns.
Do you have a new approach to facility management?
We are working on completing some projects, 60–70% of which have been sold, and we are retaining the rest for the company to own, so they become company assets alongside property management. We also have a new initiative in the form of another project in Al Barsha, near Mall of the Emirates, which contains 408 hotel apartments allocated to the hospitality sector, hospitality sector, especially since the emirate is moving in this direction, which is a vital and attractive sector.
Are there competitors in hotel services for the hospitality sector?
Yes, we do have competitors in this area, but most of them offer their services in three- or four-star facilities, whereas our services are diverse and keep pace with the latest developments in hotel services, while adhering to Islamic dress codes and guidelines.
What is the capital required to enter this field?
The services and facilities management sector does not require a large amount of capital; companies can start with 15–20 million dirhams. However, this business requires strong management, a well-structured system, and strategic thinking.
What is the current challenge facing the real estate sector?
We see that the current challenge facing large companies is the abundance and diversity of supply. The Dubai market is highly competitive, particularly with new and emerging projects, and products are fully ready depending on their size. for example, low-rise buildings are ready within 18 to 24 months, while high-rise towers are completed within two to four years. Currently, the market has a balance in prices based on supply and demand.
How do you view the Saudi presence in the UAE?
We always welcome our Saudi brothers to their second home, the UAE, for tourism and investment. Their numbers have increased over the past four years, and according to the Statistics Authority, they rank second after Indians.
What are the most prominent projects you are currently working on?
We have a number of strategic and important high-quality projects distinguished by their prime locations near the Mall of the Emirates and Business Bay, such as "The Atrium" project, which is very close to the «Downtown» and Dubai Mall, which can be reached by car in just a few minutes. Thank God, we have completed 80%, and we promise our clients that it will be fully completed and ready by the end of this year, 2017.
What about your investments abroad?
We are currently exploring partnerships in various economic sectors based on demand and available investment opportunities, of course in addition to real estate development. We are also exploring ways to leverage our extensive expertise in facility management and establish collaborations with property owners and companies to provide full oversight of their properties.
How did you exit your investments in the Kingdom?
By management decision, we exited the Saudi market. I was the strongest opponent of this move and strongly advised that we maintain a presence in the Kingdom due to its strong economic position and constant activity, but in the end, we deferred to the majority opinion. Nevertheless, we still maintain good relations with major Saudi real estate companies, so we entered into a good partnership in a company where we held 40% shares, as did Al-Bayan and Al-Muhaidib (40%), and Prince Faisal bin Salman owns 20%.
We had vital projects; our work on these projects included designing the Raffles Kempinski Tower hotel. By the way, we are active in tower construction, and we designed the Al-Rajhi Villas in Diriyah.
Do you have any desire to re-enter the Saudi market?
Yes, we are currently considering offering our services in both Riyadh and Jeddah, and there are projects under review. and we have preliminary discussions with some Saudi investors and may enter into partnerships with them in the future. We hope to benefit from the projects launched by the Kingdom’s government in the Western Region, especially since they encompass all sectors and are strategic and large-scale projects.
Any final words?
We hope to meet you again in Riyadh, and we thank you for your initiative in featuring us in the pages of the distinguished real estate newspaper "Amlak," which did not merely cover events within the Kingdom; rather, it reached all real estate professionals in the Gulf countries to serve as their media arm in achieving their goals and conveying their message.
