Ambition and realism in the work of construction companiesMay 18, 2017
Mr. Moutaz Al Khayyat – Chairman of the board of directors of Urbacon Trading & Contracting
A recent study issued by Ubhar Capital For Research drew my attention which stated that several real estate and construction companies in the Gulf region has made programs to recapitalize by reducing the capital, and selling shares for a strategic investor in order to compensate the losses and extinguish them.
“Ubhar” company, according to a recent research motion issued and published by the company in Al Bayan Emirati Newspaper, expects the decline of real estate companies in the gulf region due to reduction of projects resulting from the fall back of oil prices, stating that most companies remain in alarming situation to majorly depend on government affairs in its cash flows.
However, what drew my attention further is that the study sees that the only way for these companies to move forward is by diversifying the sources of income or focus its operations in countries which have ambitious plans to deal with the reduction of oil prices or provide carefully planned tenders to contract with financially stable developers. I specifically indicate here the diversification of the sources of income, because by doing so to construction companies or even to the economy in general is a successful treatment which proved to be effective globally. For example, some European countries depend on agriculture as the most prominent source of income for its economy however at the same time they are industrial countries which industries include all sorts of fields therefore diversification in the sources of the economy’s income creates a vitality representing a strong impregnability for any structure or economic sector in particular during the times of crisis and major challenges.
As well, the ambitious and realistic plans play a major role in protecting construction companies. As much as the companies provide major plans it should be at the same time realistic and credible, by that I mean delivering projects in the specified delays and meeting the needs of the markets and the consumer in an exemplary manner without any problems or obstacles. This is what we need right now i.e. ambitious and realistic work whether in a small or major project which work during several years.
Although the study expects that the real estate and const4ruction companies in the Gulf will remain under pressure over the next years, especially with the unanimous expectations for the oil prices which will remain less than 60 dollars per barrel during the years 2017-2018, however, I believe that the diversification of sources of income and commitment to real and ambitious work plans in addition to the collaboration between the private and public sectors will enable the companies to successfully face these challenges.
This article was originally published on the following website : http://entrepreneuralarabiya.com/2017/05/18/م-والواقع
معتز الخياط , #معتزالخياط , #معتز_الخياط
Moutaz Al Khayyat, #moutazalkhayyat , #moutaz_al_khayyat