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Global financial crisis will not hit Salam-Yetti Project: Sama CEO

MUSCAT — Farhan Faraidooni, CEO of Sama Dubai Company, the arm for international development and real estate investment of Dubai Holding, has denied rumours about suspension of works of Salam-Yetti Project, executed by the company in the Sultanate, saying that “work on the project is on and will not be affected by the international financial crisis and will continue as scheduled”.

“We will offer the residential units for sale during the second quarter of the next year as per a pricing policy that will cope with the developments in the real estate market,” he added.

“What applies for the Salam-Yetti Project applies for the other projects executed by the company in Dubai, Qatar, Bahrain, Morocco and Tunisia,” he said, adding that Sama Dubai was keen on proceeding with its plans as scheduled for completion of its projects and fulfilment of its obligations toward its clients and the community.

“But, at the same time, we do not ignore the financial crisis witnessed worldwide which made the company review its project plans,” he said.

The international financial crisis has cast a shadow on the various sectors, including the banking and real estate, he said.

“Sama Dubai and the other companies operating in the field of real estate development cannot work in the same manner in the light of the aftermaths of the international financial crisis and impacts of the same on the states of the region,” he said, pointing out that the world was “witnessing a new stage, which will necessitate the companies operating in the field of real estate development to re-programme their plans and mechanisms as per the new economic outcomes”.

The states of the region would not escape the impacts of the international crisis as they operate within an integrated international financial and economic system, he said, stressing the need for transparency in disclosure of the facts of concern to the public.

Speaking on the banks’ reluctance to finance real estate projects in the present time, he said: “I hope the banking sector will begin to finance the same during the second quarter of next year in the light of the 2008 disclosed profits of the companies.”

Sama Dubai currently holds investments estimated in billions of dollars in the Middle East and North Africa and is planning to extend its operations worldwide.

On completion, the Salam–Yetti project will represent a unique tourism destination and a prestigious residential complex in terms of the natural beauty of the area and the opportunities the project will create.

The project, which occupies a strategic location between Al Hijr Mountains and the Gulf of Oman, began less than a year ago in cooperation between Sama Dubai and Omran Company of the Ministry of Tourism of the Sultanate of Oman.

The concept and design of the project rely on the features of the rich Omani heritage and culture and aim at meeting the requirements of tourists from all around the world.

The Salam-Yetti project is 25km from the centre of Ruwi, which hosts the business centre of the capital. It takes 45 minutes from Muscat International Airport and 20 minutes from Al Qurm to reach the site of the project.

The project, spread on a total area of 4.19sqkm, is expected to improve the surrounding environment, develop residential areas and preserve the natural beauty of up to 70 per cent of the project’s area. The project, worth $1.7b, is carried out in two phases: the first phase will be complete in 2011 and the second is expected to be completed by 2013.