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DPG Focused on Execution, Delivery

DUBAI - The Dubai Properties Group, or DPG, has put all its focus on executing and delivering its projects on time, even as most of them are under review, and it promises to hand over five new developments to customers before the end of the year, Group Chief Executive Officer Khalid Al Malik told Khaleej Times on Monday.

DPG, formed from the three-way consolidation in August of Dubai Properties, Sama Dubai and Tatweer — all owned by state conglomerate Dubai Holding, has emerged as a market leader with probably the largest land bank and project portfolio in the UAE.

“Today we are a much stronger company with a huge portfolio and massive opportunity to lead the market,” Al Malik said, adding that integration, realignment and down-sizing were global trends aimed at delivering improved returns to shareholders and stronger customer service.

“Smart companies are the ones which have taken the decision to move on with this (consolidation). At the end of the day all of this means better returns to the shareholders, and better service to customers. What else would you want?”

Al Malik said that the merged entity has managed to cut costs and become more financially viable, but he refused to give any figures on profits or the value of its project portfolio. He also refused to comment on a proposed merger of DPG with Dubai’s largest listed firm Emaar Properties.

More important at the moment is the flow of cash that the company receives as projects progress past various milestones and are finally delivered, Al Malik said.

“Financially we are also very strong. As we deliver, we get more cash that we can use for other projects.”

And that’s why Al Malik said the focus of his company is on delivering as many projects as possible. “Today what we are focusing on is the delivery of projects. There are no cancellations in our agenda. All our projects are under review, but (for) those that are near delivery stages, we will stand by our commitment.”

Before the end of 2009, DPG will hand over residential and commercial developments in Shorooq Mirdif, The Executive Towers and Vision Tower at Business Bay, and Al Waha and The Villa at Dubailand, he said.

Al Malik said another tangible advantage of his merged company is its property portfolio, which is not only large but also diverse enough to address the needs of a huge base of customers. “Whatever a buyer may want, be it studio, villa, executive apartment, piece of land, etc., the company has it. So the company is addressing a much larger segment of the market.”

While the global crisis has raised questions about the industry’s credibility and investor confidence has been shaken, Al Malik said that he believed a smooth recovery was possible “if all the players in the market — the companies, the government and regulatory authorities — get more actively involved and put their full weight behind the industry.” He said he could see an improvement in the mortgage market, with more banks willing to lend, though with tougher eleigibility requirements.

“Banks have started lending but of course at much (more) stringent standards. This is an insurance that the banking and finance industry is also very careful about who they are lending to, which gives us a kind of assurance that we wanted. We would like more progress in the area (of mortgage loans), but we do understand and support the cautious approach banks 
are taking.”

Authorities are also more involved than before, helping to cement future development by adding transparency and stability to the market, he said.

“Like RERA, Dubai Municipality, Dewa, all these authorities are very active putting together the right rules, systems and processes in place, which will help development of the industry and the economy.

“I am very much in favour of regulations, systems and processes. That improves transparency, governance and control, and that helps you whether you are a buyer or a seller because you need some kind of stability and assurance in the market.”

· ovais@khaleejtimes.com