Snasco to go ahead with its projects amid slowdown

Snasco, a Sharjah-based master developer, has changed its business plan and will continue to develop all its projects despite a slowdown in the regional property market, a top executive of the company said.

"We have not changed our plans and will carry on with our earlier strategy despite there being a financial crisis in the world," company General Manager Dr Omar Mashabi told Emirates Business.

The company's two major projects in Sharjah are Al Basateen, a low-rise residential and commercial project, and Sharjah Investment Centre, a mixed-use industrial project. "None of our projects have been put on hold. The crisis has been a good time for us to understand the market." In fact, the company is looking at launching a new master development by year-end in the region.

"We are studying the proposals and we expect to launch some projects by end of the year," he said.

According to Mashabi, property prices in Sharjah have stabilised compared to declines in other emirates.

"Our projects have not seen any price declines as we have carefully studied the location and demand before launching the project. Moreover, the crisis has substantiated our policies."

Sharjah does not allow sale of freehold properties to expatriates, but offers a leasehold option to non-UAE or GCC citizens who wish to purchase property.

The company, however, is not looking at acquisitions in the realty sector.

"We believe in launching our own projects and so we are not interested in acquiring any project launched by any other developer." Although the developer is facing delay in payments from investors, Mashabi ruled out any financial problems arising for the company.

"We are well funded to complete our projects… We don't need any bank loans. We are working with our investors and are offering flexible payment plans."

In December 2008, Snasco ruled out replicating the model of Sharjah Investment Centre in other countries. "We will not be replicating the Sharjah Investment Centre model in any other country as the projects that we launch are specific to the needs of the certain area," he said.

Mashabi believes there is still an enormous amount of room for further development across the Gulf, including the UAE. "In years to come, the market will mature in all sectors, from more sophisticated mortgage financing options to consolidated brokerage firm mergers.

"This means the market will restructure itself, not slow down," he said.

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