Economic crisis has made businesses more efficient

Zaya, a UAE-based boutique property developer, is looking at a number of potential sites including the ones in Dubai, Qatar and Oman in the Middle East, and India in Asia to introduce ultra high-end luxury developments, according to its chief executive. "Apart from the $1.1 billion (Dh4bn) Nurai project, we haven't committed to any financial investments thus far because we are still in discussion stages with various potential investors after which we intend to carry out an intensive research exercise. We invest great time and resource in planning our developments to ensure they meet the lifestyle and financial expectations of our buyers," Nadia Zaal told Emirates Business in an exclusive interview. The company aims to bring some of the world's most exclusive experiences and brands to each and every project it does as Zaal believes in the philosophy of "with every crisis comes opportunity". According to her, the current economic situation has compelled companies to operate efficiently and effectively by creating the right products for the right market than just lean on favourable market conditions to raise profit margins. Excerpts: You launched Nurai on May 12, 2008, and since then we have not heard of Zaya launching any projects. How are you planning your way ahead? As a boutique property developer, we invest a huge amount of time and resources in planning our developments to ensure they meet the lifestyle and financial expectations of our buyers. Our first Nurai home is set for completion by the end of the month – notably ahead of schedule. With construction on Nurai progressing at a vigorous pace, we are firmly on track for delivery in December 2010. We are currently exploring a number of potential sites across the world for the new Makani concept as well as other concepts currently under development. Although no final decisions have been taken yet, our ultimate aim is to bring some of the world's most exclusive experiences and brands to each and every project we do. What sales have you achieved on Nurai project and is warehousing a strategy that you look to adopt during this slowdown period? Nurai's first release, which constituted 60 per cent of the development (approximately 40 units), was sold out in less than one month. At Cityscape Dubai 2008, we released a limited number of additional units, which were also sold out. Our team has the confidence and track record to apply innovation and creativity to their projects. Our sales to date are a testament to the strength of our offering in the market. We are backed by the financial strength and experience of our joint venture partners, which makes us well placed to face the challenges of the global property market. Zaya is a joint venture between Tasameem Real Estate and Assas, whose combined portfolio is in excess of $20bn. Tasameem has a development portfolio worth more than $15bn around the world (for example, The Hard Rock Café), while Assas is an investment holding company focused on investing in premium and luxury developments. Are you revising payment plans for investors in light of the slowdown? Our payment plans are linked to key construction milestones which have been carefully considered to create credibility and trust among our target clientele. We have always been dedicated to responding to the needs of our clients on a case-by-case basis should the need arise. In addition to the initial booking fee, the key construction milestones which we link our payment plans to are: foundation, superstructure, glazing and completion. Property prices in the UAE are declining and the luxury market seems to be worst hit. Is a diversification into affordable housing being considered? Contrary to popular belief, ultra high-end luxury developments such as ours continue to remain attractive as they operate in their own universe governed by the fact that the availability of such property is limited and the very wealthy are largely immune to the factors dragging down the broader market. Our focus on creating a distinctive debut development catering to a well-defined niche clientele reflects the strategy that will allow us to weather the credit crunch – particularly when combined with our geographical location. Nurai, our first development, is located just off the coast of Abu Dhabi, which continues to enjoy robust and, most importantly, sustainable economic growth rates and high wealth levels. Yes, times are challenging, but this is not to say there are no growth prospects; it is a matter of identifying these and using them to your advantage – with every crisis comes opportunity. The present economic situation has actually forced companies to begin operating effectively and begin to invest strategically and efficiently with the aim of creating the right product for the right market rather than bank on favourable market conditions to raise profit margins. Businesses that emerge stronger from the financial situation are the ones that exercise sound judgment and ide