Damac is associated with eye-catching marketing stunts and glitzy property developments. It’s most recent projects was a golf course that they created recently with Donald Trump. Mr. Sajwani takes pride in his first business venture where he performed Food Service to the United States Army at the time of Desert Storm.
The founder and chairman of Damac, Hussain Sajwani, made a comment that he works with Americans all over the world including Somalia, the Gulf and Bosnia. The food portion of the business is still a big part of the Damac Corporation and still has the ability to cultivate important international friends in high places.
Damac is once again putting their good skills in use by considering to publicly offer shares to the London Stock Exchange IPO Ventures. Because it is the early stages of the process he is constraining his comments in regards to the IPO. However, he does state that because of the size of his company and the structure of it, the options are limitless.
One of the reasons he chose to join the IPO, still hypothetically speaking, is because of the cash and bonds cushion. He believes that it will help in the expansion of his business. Damac owner and his business advisors will not give too much information on the value of the IPO, but they believe that it can be worth billions. This will be a big step from the food industry he started in the 1980s.
In 2002, Dubai was at the beginning of a six year real estate boom and decided that property was the answer to success. The Damac Properties and the Hussain Sajwani family emerged during this peak of change and built high quality developments and market them at an aggressive rate. The key to their business model was off plan sales.
In 2008, the sales suddenly dropped any actively chose to cut costs to preserve cash. By May the next year they had enough cushion to protect themselves, and even though the Dubai bubble was the inflating, Damac chose to raise prices and increase off plan sales.