Hurrah for the credit crunch!

A leading businessman has said the credit crunch might actually be good news for Dubai. Find out why.

The chairman of luxury property developer Damac Properties says he is confident that a recovery in the real estate sector in Dubai will be seen in 2010.

Hussain Sajwani said that while he believed that the property industry was undergoing a "correction" in the UAE, it would ultimately lead to a more mature market where strong companies would continue to be successful.

Sajwani, who announced company profits of Dhs500 million for the first nine months of 2008, said: "I believe that the market will recover in 2010 and that Damac Properties will be well placed to take advantage of that.

"We are financially strong and the majority of our customers have already paid a large percentage of the cost of their units. This means that we have the funds to continue to build everything we have committed to undertake and that whilst other smaller developers may struggle to deliver, we can and will, meet our commitments.

“It is already widely expected that there could be a shortfall of property by up to 20 per cent in Dubai 2010 and those companies that can continue with their plans will be the ones to capitalise on this."

His comments came the day after master developer Nakheel announced 500 job cuts and delays to some of its major projects. Damac has reiterated its commitment to projects in Dubai, Abu Dhabi, Jordan, Qatar, Iraq, Egypt and Saudi Arabia but has confirmed that plans for projects in India, Pakistan and Morocco will be delayed until market conditions have improved.

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