Reinvigorated Deyaar eyes international expansion

After six difficult months and a new chief executive, Deyaar Developments is close to implementing a new strategy that would take it into new countries and increase its number of master developments both here and abroad. In another sign that UAE companies are looking to the rest of the world to take advantage of distressed assets, Markus Giebel, Deyaar's recently appointed chief executive, said the company had changed its strategy from focusing just on the Emirates to dividing its efforts 50-50 between its home market and international projects by the end of 2009.

Mr Giebel said the company had enough money to build its current projects, but would likely have to look to international financing to fund its overseas growth. "If the credit market is still tight, it will slow down our international expansion," Mr Giebel said today at the first day of Cityscape Dubai. "There are a number of opportunities internationally because of the current market." With a current land bank of 20 million square feet, Mr Giebel said Deyaar's 2009 strategic plan would include moving into countries such as Tunisia, Turkey and Saudi Arabia. He said the company was also interested in the US because of its distressed assets.

"The company is actively looking for opportunities to buy up companies in these countries, especially companies with distressed assets. "Saudi Arabia is an oil producing country, which means it is a strong country despite the state of the international markets." While Deyaar has been known for developing single towers, Mr Giebel said the company would step up to bigger developments such as communities and iconic buildings as part of its new strategy.

Mr Giebel replaced Deyaar's former chief executive Zack Shahin, who was arrested by Dubai police in April on charges of financial wrongdoing. Mr Shahin appeared in court in Dubai on Sunday but was denied bail and remanded in custody for a further 30 days. He has been in custody for seven months. Deyaar, Mr Giebel said, had enacted new safeguards including internal audits and a new corporate governance system to prevent any irregularities in the future.

On Sunday, Deyaar said its net profit climbed 56 per cent in the third quarter to Dh311.9 million (US$85m), compared with the same period last year, marking the second straight quarter of profits following the management shake-up in April. Its share price has suffered, dropping 53 per cent since the beginning of the year. [e-mail]