Eqarat.com, which was founded in 1991, describes itself as one of the leading real estate total solution providers both regionally and globally. The company has offices in Oman, Kuwait and Jordan and is planning expansion in Saudi Arabia, Morocco, India and the UK.

Eqarat.com says it continually expands and invests in its human resources and describes its staff as multi-cultural, educated and knowledgeable. The company provides specialised training to its employees in areas of property consulting, customer relations, market updates and research.

In this exclusive interview founder, CEO and Chairman Ali Hussein Al Rahma gives his views on Dubai's burgeoning real estate market.


Why do you think the real estate sector dominates the economic scene in Dubai?

To answer this question we have to trace the phases real estate goes through, starting with the investor who looks for a plot of land. He has to go to brokers who in turn go to land owners. Then the investor registers the land after funding its purchase through a finance company or bank that asks for guarantees and requires insurance. Then comes the building phase that involves contracting companies, consultants, labour, machinery and road networks. Then buyers invest in properties or sell them. Therefore, real estate involves all business sectors.

But who leads the sector?

It is driven by large companies or major developers such as Emaar and Nakheel, and each runs other companies. Projects such as The Palm Jumeirah and The World give momentum to the market and encourage others to raise their standards.

There are currently around 1,550 real estate projects in Dubai. Is there a danger of over-expansion and supply exceeding demand?

There is considerable expansion but it is not spontaneous or happening in a vacuum. Rather it started with sound planning and an awareness of the importance of real estate and its effect on the economy. If it were spontaneous, growth would have slowed down and problems would have emerged. Behind each project in Dubai there are careful plans and market studies.

What about population make-up?

Dubai has always been the largest centre in the Middle East for its mixture of nationalities. And we as nationals are part of the strategy of moderate harmony where everyone wants to live in peace with each other. This has given Dubai and the UAE a leading place among the countries of the world. As nationals we consider ourselves as Arabs and therefore are not a minority but a majority. Other GCC states have allowed or are planning to allow foreign ownership of real estate.

Do you see a risk of chaos emerging in Dubai's real estate market?

Overall there is no chaos as there are laws and best practices in place. But you find some chaos here and there when projects face difficult circumstances or the owners cannot manage them correctly.

What is the weakest part of the market?

It's the availability and price of building materials. There are certain commercial alliances and blocs that work to raise prices despite efforts by the Ministry of Economy, which recently reduced the price of a bag of cement from Dh32 to Dh18. Cement disappeared from the normal market and appeared in the black market. The problem is caused by inadequate controls of markets.

Are there any other negative points?

Other negative points are less important and there are strenuous efforts under way to overcome them. For instance, negative practices by non-licensed brokers affect the real estate market in Dubai. But the Land Department and Real Estate Regulatory Authority have solutions and register and train brokers. But some still insist the scale of development in Dubai is too much. Dubai was born anew in the third millennium and is like a snowball that cannot be stopped. But there is a strategy and clear vision.

How would you justify the current increases in the price of properties?

These increases are partly the result of higher production costs. You have to consider that the price of land has risen due to strong demand while building material and labour costs are high. Bringing a worker here a number of years ago cost Dh1,800 but now it costs more than Dh7,000. Also salaries have risen. So prices increased but the profits and the return on investment did not change.

Some have reservations about Dubai's economic approach.

I believe Dubai's economic approach is very successful in all fields, even the industrial sector. Real estate accounts for 18 per cent of Dubai's gross domestic product and tourism 20 per cent. Realty and tourism are closely connected. In addition, Dubai has achieved success in the education, health and finance sectors.

What are the company's sales figures so far this year?

Total sales from the beginning of 2008 to the end of April amounted to Dh1.1bn. Sales in 2007 was Dh3.8bn. There are around 22 million users of the website.



Ali Hussein Al Rahma

Founder, CEO and Chairman of Eqarat.com


Ali Hussein Al Rahma has a postgraduate degree in management from the University of Hull in England.

Over the last 18 years he has become a prominent figure in the UAE real estate market.

His strategic vision has played a major role in the success and growth of the company.