The Emirates Today, through a series of dialogues, monitors how the business community in the Emirates deals with the repercussions of the emerging Corona virus (Covid-19). The dialogues include elite businessmen and investors in sectors such as tourism, hospitality, aviation, real estate and retail, and other vital sectors, To find out the mechanisms applied by private sector companies to overcome the effects of the current crisis, which affected the local and global economy.
The effects of the economic support plan, implemented by the Central Bank with a value exceeding 256 billion dirhams, are also being monitored, as well as a series of incentives offered by local and federal governments, as part of efforts to reduce the repercussions of the spread of the Corona virus epidemic on the national economy. The series of dialogues touches on how the return of activity again, to various economic sectors, will restore the spirit of activity and the prevailing economic life cycle before the emergence of the "Corona crisis", as well as the investors' vision about the future of the national economy, and how to restore the achieved levels of growth before the repercussions of the virus, along with monitoring any Incentives or requirements for investors from government agencies, to help them regain their activity, and increase growth rates and employment opportunities during the coming period. The UAE economy has major ingredients that make it more capable and tough in facing economic crises and fluctuations, and includes the successful economic diversification policy, which the Emirates started more than 30 years ago, along with having huge investment assets that provide them with sufficient financial liquidity, in addition to open economic policies and the work environment The competitive advantage of the UAE.
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Soba Real Estate Company reported that a large part of its response to the repercussions of the crisis of "Corona" came thanks to the ability of the UAE to develop flexible institutions capable of facing economic challenges and providing a stable system during difficult times, and this is reflected in the stimulus packages launched by the federal government and governments Domestic, as well as the stimulus package for the central bank, which all favored the continuity of economic wheel rotation during the crisis period.
The company pointed out, in statements to «Emirates Today», that «one of the things that helped the company to overcome the crisis is its ability to provide self-liquidity for its projects without relying on banks, we are one of the few companies in the world that have internal resources to implement any project from A to Z ». She stressed the need to take advantage of this crisis, which came in such a sudden way to confirm the importance of planning and preparing for crises, and focus on support and collaboration with members of society.
Quick response
In detail, the founder and chairman of the Soba Real Estate Group, PNC Menon, said: “The company's response to the challenges of (Covid-19) was rapid, as we gave priority to the health and safety of our employees and customers, and we were keen to follow all the rules and guidelines of social divergence imposed by the relevant authorities. . In spite of the repercussions of the epidemic and the closing period during the national sterilization program and following the business model from home, the construction work in our real estate projects is still proceeding according to schedule. "The success of the integrated business model applied by (Soba Real Estate), which is one of the most important factors that helped us to overcome the crisis and to fulfill our obligations to our customers," Menon said. He added, "The integrated model of (Soba) is considered one of the few models applied by companies in the world, where the company has the internal resources to implement any project from the ground up."
He continued: «During the period of the epidemic, we succeeded in avoiding reliance on any other company to implement our projects, as the problems of the global supply chain have severely affected the business of other companies.
Restructuring
Regarding the implementation of «Shoba Real Estate» plans for restructuring, Menon said: “(Shoba) is a family company, and announced the appointment of two people in senior executive positions, outside the family, namely, Jotzna Hadji as the company’s president, and Francis Alfred as the general manager and CEO. . This strategic move came within the framework of a long-term vision to ensure business safety and success, and to enable professional experts to manage the company, by giving them more powers in the decision-making process. Since that time, (Shuba) has achieved continuous growth and maintained good profits, and I am confident of its ability to overcome the crisis without the need to take major measures to restructure.
Housing units
On the change in the company's handling of the current crisis compared to its response to the global financial crisis during 2008, Menon said: “In 2008, more than 70,800 new housing units were delivered, in general, before Dubai was affected by the global financial crisis that came due to the collapse of the sector Globally thriving real estate, which was a major contributor to government revenue. This has caused the market to slow, due to the oversupply of demand.
He continued: «But in the current crisis related to the Corona virus, the epidemic led to a complete transformation in our daily life, and fears caused a number of potential buyers to move away, in addition to the postponement of the Expo 2020 Dubai, which was expected to attract 25 million visitors and investors, so The outlook for this year's results has changed. Despite this, a large portion of the sales of (Shoba Real Estate) includes international investors in the markets that are largely affected by the (Covid-19) epidemic. Now, we are still witnessing a renewed and large response from investors in these international markets. ”
Activity returns
Menon added: «In conjunction with the return of activities and businesses again in the country, and the end of the closing period, we are optimistic that more buyers are looking to benefit from the incentives offered to dealers and invest in the market. We are confident that the real estate sector will boom again, as soon as the Expo 2020 begins in 2021. ” On the factors that help Chuba Real Estate to manage the effects of Covid-19, Menon said: “According to the company's business model, we do not need to rely on other companies to implement our projects when any exceptional circumstances occur. We are supported by an interior design team and an integrated supply chain that includes our manufacturing facilities, and a three-level quality verification process to ensure the implementation of stringent standards when delivering projects, as well as projects that meet the aspirations of real estate investors. ”
Creations
He added: «We are proud of the ability of our team to overcome this period with the least possible interruptions in construction operations and our reputation for delivering projects on time. So, continuing to work on our projects, amid the current repercussions, is an achievement in itself and testifies to the quality of the company's business model. ”
He continued: «We are seeking to continue working on the delivery of the (Soba Hartland) project by 2025. Thanks to the implementation of our supply chain within the company, we have more freedom to achieve the best results from design to completion of the project».
Regarding the advice learned from dealing with the epidemic, Menon said: “I think that the sudden occurrence of the epidemic has shown all of us the importance of planning and early preparing for crises. A crisis presents an opportunity to demonstrate the ability of companies to deal with their consequences. We are at a time when we should refrain from promoting and focus instead on support and collaboration with members of society. ” He added, “Companies must provide high-quality products to their customers, but companies are also responsible for looking after their employees, as employees look to managers and corporate leaders to be a source of moral support for them during times of crisis. So providing a transparent and sympathetic environment allows employees to work effectively and eliminate any concerns. ”
stability
The founder and chairman of the Chuba Real Estate Group, PNC Menon, said that "the foreign investor is looking with enthusiasm for the efforts of the UAE and Dubai in dealing with the repercussions of (Corona), as it has established for itself a global position in dealing with these repercussions, as it is an ideal destination for investment Real Estate », stressing that the investment is strongly linked to the availability of security and safety for both residents and visitors alike.
PNC Menon:
"The sudden occurrence of the epidemic demonstrated the importance of preparing for crises."
"The company's response to the (Covid-19) challenges was swift."