Damac is often connected to developing glitzy properties, glamourous golf courses deals with Donald Trump, and catchy marketing stunts. Hussain Sajwani is the Damac owner, chairman and founder with an outstanding history in food services. Her service during Desert Storm to the United States was honored with a special plaque. The food business remains part of Damac as a reminder of Hussain Sajwani’s business expertise, and important international friendships. The Hussain Sajwani family has additionally maintained an important friendship with Donald Trump’s family. Learn more: https://www.linkedin.com/in/hussainsajwani
Hussain Sajwani began in the food business in the 1980’s by providing catering services in Abu Dhabi. Even with contracts he established with the US Army, the catering business had low margins, and was too small. His future began to change in 2002, at the start of a boom in real estate in Dubai that would last for six years. He had some experience in mid-market hotels and had dabbled in real estate in Dubai, but the Damac properties of 2002 was far above mid-market. They aggressively built and marketed top of the line developments.
Hussain Sajwani was among the few people who saw the crash of July of 2008 coming. He knew the dropping sales were a lot worse than a summer lull. His quick actions preserved his cash and cut costs. His cash floor protected him until May of 2009 when the worst was over. Damac survived because they took extreme care with cash, reined in some projects, controlled costs, and used strict new measures when a buyer was facing difficulties.
The business model of Damac properties is now based using three principles. They will not hold debts to cover land, and 100 percent must be paid at the start. All their escrow accounts must be independent, and cash is never transferred between accounts. Finally, cash reserves are retained in government bonds or fixed deposits so the construction schedule can be supported. Hussain Sajwani is considering expansions now that Dubai’s economy is recovering. This includes Turkey and Saudi Arabia, although nothing is yet definite. He is settling a dispute in Egypt, and believes the political situation in Syria is too difficult. Learn more: https://www.facebook.com/HussainSajwaniOfficial/