Hussain Sajwani is optimistic that the mega event will reap positive rewards for the real estate industry
Dubai-based luxury real-estate developer Damac is hoping that Expo 2020, which will be held next year, will help reverse the dip in the market caused by the COVID-19 global pandemic.
Hussain Sajwani, Damac's chairman, said COVID-19 had caused a significant negative impact on real estate due to social distancing measures and a major dip in tourism, but the company’s strong balance sheet had allowed it to absorb the shock.
“COVID-19 has upset the balance sheets for many companies, which industry leaders have been very vocal and transparent about, and while many analysts are forecasting a U-shaped recovery, we believe it may be some time before we see an upward recovery," he said.
“DAMAC’s strong balance sheet has allowed it to absorb much of the market shock and we are optimistic that Dubai Expo next year will reap positive rewards for the real estate industry as sales and transactions will increase, offsetting the dip in the market due to Covid-19.”
Sajwani made the remarks in a statement released alongside its Q3 2020 results, which showed nine-month losses of AED 931 million ($253 million).
He said work was continuing to deliver construction projects, and the company was cutting receivables, optimising operational costs and focusing on cash collections.
In its latest financial results, the company posted revenue of AED 3.7 billion ($1 billion), gross profit of AED 828 million ($225 million) and said it had delivered circa 1870 units so far in 2020.
At the end of Q2 Sajwani had said the company anticipated difficult market conditions for around 18-24 months but said Dubai Expo will generate some demand.
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