Hussain Sajwani, the well-known DAMAC owner has built his business from experience and a solid foundational knowledge of business. Even though opportunities in the UAE abounded, Sajwani made his first fortune in the food service business, maintaining a strong presence during the original Iraqi War. His Damac company served the US Army during that time, and later in Somalia, Bosnia, and other Gulf regions. Read more: Hussain Sajwani | Newksira
The food service is still a part of Damac, but the profit margin is small compared to real estate, which Sajwani has by now established himself and Damac as leaders not only in his home country of UAE but throughout the Middle East.
Known for his unique and attention-getting property promotions, Sajwani continues this real estate expansion in a big way. While his promotions such as “Get a Bently with Your New Luxury Apartment,” he continues to expand his holdings with conservative financial scrutiny but with aggressive marketing.
Sajwani states that his current situation is a far cry from the food only days. He relates that with the food business you can make millions, but with real estate, you can earn billions. Sajwani runs his real estate very conservatively with a debt to capital ratio of only 10 percent. He wonders how some developers will be able to keep an 80 percent leverage position and survive.sin
Hussein Sajwani operates on a strict formula that is conservative from s business sense, yet aggressive from the marketing standpoint. First of all, there is never any debt on the land. Land is paid in full, in cash when purchased. This establishes the fact that the business is there to stay. In the second instance, all escrow accounts are operated independently, as there is never any transfers of funds from one account to another. This way each project supports itself.
Thirdly, cash reserves are maintained in fixed accounts or in government bonds. This so that there is a contingency against the market should it decide to take a nosedive. Without these rules, Damac surely would not have fared as well as it did during recent market slowdowns.
Sajwani is also considering the entire Hussain Sajwani family by integrating members into management and supportive roles as the business grows and expands.
Learn more about DAMAC owner: http://www.forbes.com/profile/hussain-sajwani