Limitless, the global real estate arm of Dubai World, has major plans to expand its international presence.
"We are looking to increase our international presence through bigger investments in markets outside the country. We are eyeing newer markets such as Western Europe as our next target of operations," Saeed Ahmed Saeed, Chief Executive of Limitless told Emirates Business in an exclusive interview.
The master developer has a presence in 11 countries with its marketing offices. It has development projects in seven of those countries so far. In June, Limitless began operations in Turkey with plans to launch a series of mixed-use projects there.
The company's on-going projects are worth Dh367 billion, with the Arabian Canal as its single largest venture. In March it secured a Dh4.5bn syndicated Islamic finance loan from 18 different international banks and Saeed said in future, the company would consider taking more Islamic financing as part of its funding strategy.
How important is it to Limitless to develop properties in countries such as Jordan, Vietnam and other emerging markets?
It is our conscious effort to create a balance between developing in mature markets and those that are emerging. Our portfolio of properties will come from these markets that will level our risk positioning and help build a brand image in newer markets.
Do you expect better returns in overseas market compared to the home market?
We never think about achieving tactical returns in the new markets we go to, so immediate returns are something that we do not expect when we enter new countries. Our foray into international markets is not driven by numbers and rate of return, but we just follow our parent company's lead in establishing a brand. Overall, although our return on investment (RoI) varies from market to market, we have an average RoI ranging between 15 per cent to 30 per cent.
What is your approach towards investing in international markets?
Strategically we try and work things out for ourselves. We tend to have easier access into some international markets because we are owned by the government of Dubai. So we have a choice of working by ourselves or signing a Memorandum of Understanding or a joint venture, or just setting up a collaboration with the governments involved.
In Jordan, in our Dh1.2bn Sanaya Amman development, we have a collaboration with the Jordan government. We purchased the land in January and have started the work right away. We have good relations with the government of Jordan and we are helping them in introducing new standards, new codes and new structures in Amman. They are helping us to come into Jordan with our first project.
In India, in our Bidadi Township project (a Dh44bn venture) we have a joint venture with DLF, one of India's largest developers.
In Malaysia, for our Dh1.8bn project – Puteri Harbour – we are in a partnership with the project's master developer, UEM Land Sdn Bhd. Under the agreement, we have formed a Special Purpose Vehicle with UEM Land Sdn Bhd, and we hold a 60 per cent share of the investment on the project.
Typically, it is all about understanding the know-how of the local market wherever we go and the investment involved in that region.
Are you happy with the progress that Limitless is making?
I am satisfied. That does not mean we are not trying to be more aggressive. But we have progressed according to our plan. We have exceeded our expectations in some of the places we have invested. Limitless is an ambitious company and we are constantly looking to do more and better.
Are the Downtown Jebel Ali and Arabian Canal projects on schedule?
The design of the Arabian Canal has progressed considerably. We have not yet started the real construction, except some experimental trial excavations in order to verify some of the design and material assumptions.
In July this year, more than 1.5 million cubic metres of earth was excavated for the Arabian Canal. This pilot excavation work has left a giant hole – 700 metres long, 200 metres wide and 45 metres deep.
In the Downtown Jebel Ali project we are experiencing some delays. Some portions of the project are six months behind schedule simply because of the market situation. But overall we are trying to recover that time by making the land available in a timely manner for our third party developers. The infrastructural delays on the project are pretty manageable so far.
How are you looking to counter delays in construction? Are you developing a particular strategy for this?
Delays are becoming a challenge, mainly in Dubai. We are trying to formulate a contingency plan while scheduling and planning our projects in different parts of the world by different methods.
In fact, the formula we are using for Dubai is altogether different from the international markets. We are developing packages for different countries that involve better relations with contractors, providing for a lead-in time for contractors to design, sorting out some of the design packages in the design stage itself, etc. We are seriously considering integrating various solutions in the design stage of a project to help us save time.
What challenges do you foresee in large-scale urban planning?
The first challenge is to understand the market we are working in and ensure a design that works for the people in the area.
In international markets, the process to get things done is not as quick as in Dubai. So we are generally working towards expediting things.
A lot of the challenge is driven by the fact that we need to understand the infrastructure requirements of the countries we enter.
PROFILE: Saeed Ahmed Saeed, CEO, Limitless
Saeed began his career with the Dubai Ports, Customs and Free Zone Corporation in 1992, when he joined there as Project Engineer. In 2000, he was appointed Managing Director (Projects) with Nakheel, where he spearheaded some of Nakheel's most prestigious developments, including Palm Jumeirah, Ibn Batutta Mall, Palm Jebel Ali, Palm Deira and The World Island. As CEO of Limitless, he is overseeing the company's expansions in international markets such as Russia, Saudi Arabia, Vietnam, Malaysia, India and Jordan. Saeed grew up in Dubai and was educated in the UAE as well as the UK. A civil engineer by training, he is also an accomplished chess player, who was crowned World Junior Chess Champion in 1979.