Hussain Sajwani is an entrepreneur and businessman, as well as the founding father of DAMAC Properties Dubai Co. The company was founded in 2002 and they focus on residential, commercial and leisure property development. The company is based in Dubai, United Arab Emirates.
Sajwani’s first foray into the business world was in the food service industry. The company provided food service to United States military troops during Operation Desert Storm in 1991. In fact, there is plaque in Dubai that marks the origin of the business and recognizing its service to military troops during Desert Storm. DAMAC also provided catering services to people employed in the energy industry in Abu Dhabi. The food service entity is still part of the DAMAC Company and it serves as a reminder for Sajwani’s entrance into the business world. While operating the food service business, Sajwani learned the importance of developing strong business skills, strategies and methods and they are all strengths he employs today.
DAMAC is gearing up to take advantage of property price recovery in the United Arab Emirates. The company is preparing to offer IPO shares (initial public offering). Even though DAMAC currently has a healthy financial outlook so any cash raised from an IPO offering will fund expansion.
Sajwani was prompted to enter the property development business rather than stay with just the food industry when he saw he was making small profits. As property in Dubai was being developed in 2002, Sajwani saw a tremendous potential and future in property. As development exploded in Dubai, Sajwani jumped into the deep end of the property development pool, the company began to offer high end development and implemented a very aggressive marketing program.
When the market all but bottomed out in 2008, Sajwani’s experience told him it was more than a seasonal lull in sales. He implemented policies to offset any slump in sales by cutting costs and preserving cash. They were able to ride out the storm and when the industry turned the corner, DAMAC had enough cash flow to ramp up and get back to business.
As a result of the development industry bottoming out experience, DAMAC formulated a business model that has built in preparation for a market downturn. Land that is purchased outright and not mortgaged, each escrow account is independent from others and cash is not transferred from one account to another making all projects support itself.
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