MAG’s $1.36bn-worth portfolio includes residential developments across Dubai
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Mohamed Nimer, CEO of Dubai-based development company Moafaq Al Gaddah (MAG) Group expects hotel developers to benefit from Dubai’s construction boom.
Speaking to Big Project ME, Nimer said increased activity in the market is a healthy indicator of the demand for various construction units created in Dubai after it won hosting rights for the Expo 2020.
“Current estimates of existing hotel units are 85,000 – these were constructed in Dubai over time,” Nimer said. “Another 85,000 are required for the Expo – which means we will need 350 hotels on an average, and have to build them in the short duration that leads up to 2020.”
MAG Group’s portfolio is currently worth $1.36 billion (AED5 billion) and includes residential developments across pivotal locations in the UAE, such as Meydan, Business Bay, Jumeirah Village and International City. “Construction of hotels and residential units will bring with it other infrastructural demands, such as schools, clinics, hospitals and so on. MAG group will enter as many of these sectors as possible,” Nimer added.
Project announcements in the market are being made based on such figures, Nimer said, adding all construction undertaken for the Expo will benefit Dubai even after the exhibition has concluded.
“The question is asked a lot – ‘what happens to the construction and developments after the Expo?’ This was even asked earlier, when Dubai initially began its development work in 1999-2000,” he said. “The need for such hotel developments was questioned back then, but look at the demand for them today.
“One of the many positives of the Expo is that companies are being encouraged to complete their projects in time for the event. If a developer firm had earlier planned to complete his project in, say 2021, chances are good it will want to quicken its construction pace and advance completion in time for the Expo 2020,” Nimer added.