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Paris: The property market slowdown in Europe and the US has helped the market in Dubai, according to a senior executive of Dubai Properties.
"Investors are always looking for places where they can have high returns and the Dubai market fulfils that. So it worked in our favour," Yaqoob Al Zarouni, deputy chief executive officer of Dubai Properties, told Gulf News in an interview in Paris.
Al Zarouni was in Paris to promote the company's latest mixed-use development in Dubai, Babil, to foreign investors.
He said investing in Dubai's real estate gives investors the option to sell their units at a "neat profit" any time they want to get out of it.
Speaking about the company's source of funds, Al Zarouni said: "The funds come from within. We have the money and we utilise it."
Al Zarouni said Dubai Properties is now a zero-debt company, having started its operations four years ago with zero working capital. "However, as we grow our operations, debt is one of the options we are considering when it comes to expansion - local and overseas," he said.
Land bank
Speaking on Dubai Properties' land banks, he said the company has up to 30 big plots in the emirate with "massive areas".
"We are now testing the waters to launch futuristic international developments which we will announce in due course," said Al Zarouni. He, however, declined to name the countries.
Dubai Properties is eyeing other emirates of the UAE, including Abu Dhabi, to grow within the country.
Al Zarouni said there are no plans for Dubai Properties to list on the Dubai Financial Market.
"However, there are six entities within. Once the time is right, we will spin off some of them and they will be listed," said Al Zarouni.
He said the company plans to build more low-cost housing units in Dubai.
"We have plans to fulfil each segment. There will be more value-added houses having all the means of entertainment and life's essentials. The next phase of our value-added residences will be in the Dubailand area. We have already started working on the infrastructure and design," said Al Zarouni.
He said Dubai Properties has so far handed over 7,000 units of Jumeirah Beach Residences as well as 2,600 of the leased units.
"In the pipeline are another 5,000 units for lease in 2008. Along with this, over 3,000 units in Executive Towers and The Villa in Dubailand are to be handed over soon," Al Zarouni added.
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