Face-to-face: What's the future for the UAE?

Yousuf Sharaf, Sharaf Industries, Managing Director
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Should there be a focus on government-funded projects to pull the industry through the downturn?

Yousuf Sharaf, Sharaf Industries, Managing Director: Projects like the metro, which has been funded by the government, will continue but will be slower than before just like any other projects. It all depends on the strategies of the business.

Salvatore Saker, Green Precast CEO: The government funded projects are pretty much holding the economy together. In times like this, where the private investor hangs onto his cash, it is the leaders, in many markets, that realise it is up to themselves to keep the economy thriving and providing work. Housing in most countries dominates between 30% to 60% of any economy and it certainly will for the next 15 years.

When do you think we will see an upturn in building material costs?

Yousef Sharaf: It is already happening; HH Sheikh Mohammed bin Rashid Al Maktoum said that we have already passed the bottom of the crisis. Now we are in recovery mode and gradually moving forward. Cement is holding up well with there being no drastic drop in the price.

Salvatore Saker: Based on all the research and developments that we conduct on a daily basis the cost of construction materials will definitely go up in the next 12 to 16 months for many reasons. In every country, developed or non-developed, there is a huge demand for housing units and supply. Take the UAE out of the equation and there is still an underlying demand that is much greater then the supply.

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FEATURED COMMENT Either Mr. Salvatore does not know maths or there is a typing mistake. The market is already oversupplied, demand is muc   2 Comments Read more comments »

Is the UAE facing an oversupply of residential units over the coming two years?

Yousuf Sharaf: No, I don’t think so. We have to view this time as a transition. We are already adjusting and by the end of this year the country should be a lot steadier. It is difficult but it will get back on track.

Salvatore Saker: Taking the UAE as part of the whole equation, globally there is an underlying demand that is far greater than the ongoing supply. I have read a report that has stated we need to build, on average, 30,000 houses a day to catch up over the next three years.

In which GCC markets do you see the most demand in the foreseeable future?

Yousuf Sharaf: The UAE, in particular Dubai, has the most potential. Qatar and Saudi Arabia are moving in the right direction and Iran also has a lot of potential but Dubai’s philosophy is different. The scale and scope we operate under, offers a great place to develop a career.

Salvatore Saker: We are about to start operating in Saudi Arabia and in Qatar, where we are negotiating contracts. We also want to be in Kuwait. We were amazed by the number of consultants within these markets that came to us with half of their questions already answered through their research. We have received more than 20 invitations to date to start work in these three markets.