Arada chief: Opportunities aplenty for 'focussed and agile' developers
Developers that maintain "tight" relationships with contracting actors will succeed in the "dynamic" UAE market, according to Arada's Ahmed Alkhoshaibi
Despite softening market conditions due to macroeconomic factors regionally and globally, there are "plenty of opportunities" for developers that maintain "tight" relationships with contractors.
This is the view of Ahmed Alkhoshaibi, the group chief executive officer (CEO) of KBW Investments, and CEO of UAE-based developer, Arada.
Alkhoshaibi told ConstructionWeekOnline that oil price fluctuations have also contributed to muted construction sector activity.
"The macroeconomic situation, both here in the Middle East and around the world, combined with the uncertain oil price environment, has led to a softening in the regional construction industry over the course of the past two years or so, largely thanks to weakening government budgets," he explained.
"However, we see plenty of opportunity for focussed and agile developers [who have] tight relationships with contractors and sub-contractors."
These developers, the Arada chief said, would "benefit from what we see as clear demand in specific segments, such as the mid-market, that we are targeting".
Alkhoshaibi was speaking to ConstructionWeekOnline ahead of the Construction Week: Leaders in Construction UAE Summit 2017, due to be held on Tuesday, 19 September, 2017.
Established in January 2017, Arada was formed through a partnership enterprise between KBW Investments and Basma Group.
Arada recently unveiled the $6.5bn (AED24bn) Aljada master development in the UAE's Sharjah emirate.
The 2.2km2 urban district is expected to "raise interest in Sharjah even further, while strengthening its position as a secure and sought-after investment destination", HE Sheikh Sultan bin Ahmed Al Qasimi, chairman of Arada and Basma Group, said during the project's launch.
Alkhoshaibi says Sharjah will increasingly play a key role in the UAE's growth as a real estate hub.
"Regardless of the strength of the oil price, the UAE’s construction sector is one of the world's most dynamic, exciting, and diverse," he explains.
"While 2016 was difficult for many players, the first few months of this year have been more upbeat, helped by continued government spending on projects in the UAE as a whole, and more specifically Dubai in the lead-up to the Expo 2020 showcase.
"As for Arada, we are seeing huge interest in Sharjah, an emirate whose property sector has demonstrated stable over the last decade or so, and which is starting to garner strong interest from developers," Alkhoshaibi added.