Hussain Sajwani, DAMAC owner, and founder is one of the most astute businessmen in all of the Middle East. His ability to see coming trends in real estate and his reputation for a solid strategy in these matters is well-known throughout the region. His attention-getting promotions for his real estate property is special, and everyone knows about it. His “Free Bently with every luxury apartment,” is a sample of his genius in this area.
Sajwani got his start, however, in the food servicing business, as during Desert Storm he supplied the US Army with his food service company. This venture was a great success, and he learned a great deal about meeting deadlines and delivering a good product. Also, he has offered food service to American Troops in Bosnia, Somalia, and Abu Dhabi. Read more: Hussain Ali Habib Sajwani | Bloomberg
While the food business is still a going concern with Damac, the real money-maker is in real estate where Sajwani states that with the food business you can make millions, but with real estate, you can make billions. Certainly, his eye for the future has paid off.
Damac builds and markets top-of-the-line real estate properties and markets them very aggressively, making off-plan sales as a normal process making them the key to plans for growth and expansion. Keys to continued success and growth involves by controlling costs, keeping a good abundance of cash, and being very careful not to expand too rapidly.
Hussein Sajwani uses a strict formula of three major principles for his business model. First land is always purchased and paid for 100 percent with cash. That way the project is locked in for good. Secondly, all escrow accounts are strictly independent, in other words, there is no exchange of funds from one account to another, so each development supports itself. Thirdly, cash reserves are kept in fixed accounts or government bonds. Sajwani keeps a very low debt to equity profile, currently running about a 10 percent debt ratio.
When Sajwani sees other investors at an 80 percent debt ratio, he just shakes his head and wonders how they can stay in business. Sajwani is incorporating the rest of the Hussain Sajwani family into the daily operations of the business as well, as the future approaches and he wants to sustain the growth of Damac Properties into the future.
Learn more about Hussain Sajwani Family: http://gulfnews.com/culture/people/high-riser-1.25193