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Arabian Business Magazine
Al Mazaya Looks Towards a Future of ‘Global Expansion’
The real estate giant looks forward to a steady growth in performance and geographical diversification in the next five years
1. Can you give an overview of your firm’s current operations?
As a highly distinguished real estate and land developer in the Middle East region, Al Mazaya has gained great confidence amongst investors, markets and the community at large. As such, we are currently involved in an impressive number of projects across the GCC and Mena Region, there are plans to engage in more developments in the future.
Al Mazaya follows one strict procedure to maintain the success of our current operations: we monitor the markets and developments around the world very keenly to ensure that each investment is made in the interest of the company’s long-term sustainability. In short, Al Mazaya makes informed decisions with regards to its investments.
Our H1 financials for 2016 report a staggering AED 50.26 million in net profit. Revenue from sales have also increased by 16.7 per cent and revenue from leasing activities have increased by 18.2 per cent.
Although the financials are on an upward trend, we are looking forward to steady growth in performance, thanks to our comprehensive vision for the future and prudent strategic planning.
This year, we will be participating in the Cityscape Global exhibition, an excellent platform to showcase our newest developments. We hope that the networking opportunities will translate into mutually beneficial sales for all involved. In particular, we will be showcasing our Q-Line and Queue Points projects – both have limited availability and are due to be sold out shortly. We will also be showcasing our Ritim Istanbul project, a great luxury investment opportunity as the Turkish real estate market is booming at the moment.
2. What have been the highlights during the first half of the year? What are the biggest projects you are working on right now?
Al Mazaya’s most recent highly successful venture is the Ritim Istanbul project in Turkey, a USD 400 million development that covers over 39,000 square metres. The colossal residential and retail structure took just over three years to build and 80 per cent of the residential units have already been sold!
The consumer market and end user demand in Turkey is staggering, leading to an unparalleled success for us in the Ritim project.
We are also currently engaged in developing a medical facility in Sabah Al Salemn. The 17-storey development has been allocated to a leading contractor in the field and is expected to be completed by the end of 2017.
We have to stress that the regulations in the GCC and other cities in the UAE have been critical to our success in the field. The regulations are highly advanced to support end users and developers like Al Mazaya to build good infrastructure for the burgeoning tourism sector.
3. How do you see the real estate market developing where you are?
Real estate relating to the tourism industry is in high demand at the moment. Many investors and clients are gearing up for Expo 2020 and the new tourist attractions.
The influx of tourists will be a steady source of leasing income in 2020 and beyond. With the market projected to be in recovery by 2017, clients have started looking for investment opportunities like hotel apartments.
4. What are the biggest challenges and opportunities you see in your industry right now?
It is important to bear in mind that Al Mazaya does face challenges in the open market. Currently, the global political arena is full of economic and social unrest. Al Mazaya has put in place several insurance measures to ensure that our investments are safe.
Our business model is very dynamic – it is flexible and easily amended in response to changing circumstances of the country and economy, thus maintaining financial results.
Furthermore, the market is highly competitive, with more developers trying to enter the market. Market demand also varies from city to city and consumer’s requirements; in some areas, the market is picking up drastically and consumers are buying more.
5. Are you looking at any geographical expansion? What’s the five-year plan for your company?
Al Mazaya is looking toward a future vision of ‘global expansion’. In five years’ time, the company looks forward to crossing the boundaries of the Middle East and tapping into a bigger market and demographic, thus diversifying our investments and managing risk for the future.
As global developers, we will be looking past Dubai at many other opportunities outside the region, particularly in North America and Europe. This will diversify Al Mazaya’s investments and ensure that risk in any one particular region is minimal.
Diversification and expansion will also open up various financial markets and new client bases. The company is currently conducting market research in taxation structures, best financial tools and filtration structures to ensure that any investment yields maximum returns.
6. Which sector do you think is performing best, and why?
The mid-range housing sector has been in high demand from end users over the past few years. This is largely due to a burgeoning middle class in the GCC. Many development companies like Al Mazaya have been targeting this demand and trying to maximise sales and housing opportunities.
The hospitality sector has also been performing exceptionally well. With the Expo 2020 on the cusp in Dubai, serviced apartments and hotels that cater exclusively to tourists have been a focal point. This is to capitalise on the revenue that the Expo would bring in over the next three years.
7. What rules and regulations do you think could be instituted to improve the performance of the industry?
The regulations in the GCC and other cities in the UAE have been critical to Al Mazaya’s success. The various regulations for ownership, residency, visiting visas and foreign investors in the region have helped to create a new demographic for developers like Al Mazaya to target and cater towards. This leads to the widening of the consumer base for real estate.
Furthermore, the regulations in the GCC are highly advanced to support end users and developers like Al Mazaya to build good infrastructure for the burgeoning tourism sector.
8. What plans do you have for the second half of the year?
Al Mazaya is continuing its development in the GCC and MENA region where new projects of more than $200 million USD will begin construction in the 3rd Quarter of 2016. Some examples are the Q Series, Al Mazaya Residence in Oman, and new projects in Kuwait City and Dubai that feature mixed properties. We have also recently invested in a medical facility in Sabah Al Salem, a 17-storey development that is due for completion in 2017.
9. What does Al Mazaya expect out of this year’s Cityscape?
2016 in particular is an excellent time to be participating in Cityscape; financial experts in the region speculate that the market is well on its way to a strong recovery and advice investors and consumers to invest in property with minimal risk.
Cityscape is an investment hub and an excellent platform for Al Mazaya to pursue its three goals for this year’s exhibition: networking, more investment opportunities and improved sales of our current projects.
We will be showcasing our latest developments, Queue Point and Q-Line, which only have 20-25% availability. These developments are mid-level luxury apartments that are highly affordable and in prime locations in Dubai land. Queue Point now offers a 20/80 payment scheme – a down payment of only 20% is necessary to secure your dream home and 80% can be paid at the time of completion. The registration fee of 4% will also be waivered for all Queue Point apartments. To sweeten the deal, Al Mazaya now offers a free year of service for all new investors!
Moreover, we will also be showcasing the Ritim Istanbul project, a USD 400 million luxury development that covers over 39,000 square metres and consists of 863 residential apartments, ranging from 1 to 3 bedrooms. Whilst the demand for Ritim apartments in Turkey is staggering, we would like to showcase the apartments as investment opportunities for clients in Dubai as well.
Furthermore, we have recently launched a new project in Oman entitled Mazaya Residence, which is a distinguished Oasis located in the heart of Muscat and comprises of a community of apartments, retail shops, swimming pools and recreational areas. We aim to capture the strong spirit and family ideals that the Omanis hold dear and intertwine them with modern conveniences such as full time security and indoor parking. We aim to present the project at Cityscape this year as a perfect balance of modernity and Omani tradition.
10. We know that Al Mazaya has developed a large portfolio over the years. But, in your opinion, which development stands out? Why?
Al Mazaya has been involved in countless geographically diversified projects in different sectors over the years. In my opinion, each project has its own brand, value and quality – these are aspects that are unique to each project. The recent project in Ritim, however, has managed to combine the 3 aspects in one of the most vibrant real estate markets in the last 10 years, thus creating an unparalleled success for Al Mazaya.
Ritim Istanbul has been the biggest and most recent successful development for AL Mazaya. A USD 400 million collaborative project, it is set on 39,000 square meters of land on the Asian side of Istanbul, with six residential towers and a retail complex that spreads over 22,000 square meters. Although it’s only reaching 95 per cent completion, 80 per cent of the residential units have been sold out. Handovers are currently and gradually taking place.
To develop such a large plot of land into a successful residential and retail establishment took us a little over three years – this, in itself, is a huge success. The high percentage of units already sold indicates strong consumer confidence in Al Mazaya’s developments.
11. What is your vision for Al Mazaya in the future / ten years’ time?
We have our sights set on expanding globally to new markets in the USA and Europe. Currently, we are studying these markets closely from various critical points: taxation structures, best financial tools and filtration structures, for example. This is to ensure that any investments in such markets will bring Al Mazaya more success with minimal factors of risk.
Furthermore, Al Mazaya is also continuing its development in the GCC and MENA region where new projects of more than $200 million USD will begin construction in the 3rd Quarter of 2016. Some examples are the Q Series, Al Mazaya Residence in Oman, and new projects in Kuwait city and Dubai that feature mixed properties.
12. What challenges do you see for Al Mazaya in the future?
Currently, the global political arena is full of economic and social unrest. Al Mazaya has put in place several insurance measures to ensure that our investments are safe. Our business model is very dynamic – it is flexible and easily amended in response to changing circumstances of the country and economy, thus maintaining financial results.
13. What does it take to successfully run a large company like Al Mazaya?
It takes a combination of 5 key factors – a clear vision, determinant mission, a supportive board, a strong team, and analysts and researchers with strong market knowledge.
Market knowledge is key – researching the market, networking, and getting to know the sector you’re working in are major contributors to success, as well as knowing when to invest and re-invest in your business.
Property development is not an easy field to break into. Making sure that the early profits gained from projects are reinvested into future projects is vital; it should never be used to declare personal gain. Getting to know your investors and building a mutually beneficial relationship with them is also a crucial element. This way, you will receive swift, personalised services at competitive rates, thereby benefitting your business.
If you find yourself dedicating “too much time” to work, you are probably on the right track. Seeing a project through to completion takes conscientiousness and (sometimes) round-the-clock work.
14. What words of wisdom would you give to up-and-coming executives in the property development field?
Constantly keep up-to-date with regional and global forces – changes occur every minute, every second even. To be successful in this field, surround yourself with people who have the same goal as you: to see your company prosper. To do so, you have to keep your eye on frequently changing forces that can (and often will) impact your projects. By endeavouring to stay on top of these changes, you will progress nicely in your career.
