Hussain Sajwani knew in 2002 Dubai’s future was in property. The company he established is called DAMAC Properties and is strongly associated with exceptional marketing stunts and building magnificent golf courses with Donald Trump. Hussain Sajwani did not begin his career in properties but in the industry of food service. Long before DAMAC existed, he had served the food service needs during Desert Storm for the United States Army. He has worked for Americans in the Gulf, Bosnia and Somalia.
DAMAC remains a part of Hussain Sajwani‘s operations as a reminder of the importance of cultivating important friendships. His skills are being used well as the UAE property prices are recovering. He is considering using the London Stock Exchange as a venue for an initial public offering. Hussain Sajwani believes there are numerous options available for DAMAC. His company has a low debt ratio and a cushion of bonds and cash. This may lead to expansion or provide additional funds for the business owners. He is leaving his options open.
Dubai was at the beginning of a six year boom in real estate when he decided the future was in property. In 2002, DAMAC properties emerged and it was far from being mid-market. Hussain Sajwani build extraordinary developments and employed aggressive marketing. His key to the business model was off plan sales. He was one of few who realized there was a crash coming in 2008. The precautions he took preserved his cash and decreased his costs. He was out of the woods the very next year. Hussain Sajwani survived the crises by controlling his costs, being careful with his cash, reigning in certain projects and using strict measures for buyers in bad situations.
According to an interview with CNBC, Hussain Sajwani does not believe DAMAC is in any danger because he does not feel the property bubble in Dubai is inflating again. He has stated the market is different now due to the tough new conditions imposed by the Dubai property regulator on escrow accounts and land sales. His business model has three basic principles. He will not hold debt for land. He ensures all escrow accounts remain independent. He retains cash reserves for DAMAC.