Samir Salya looks at one Dubai developer with designs on London

Dubai-based Sobha Group is planning to diversify its portfolio and take on developments in London and the Philippines. This will be in addition to its large-scale plans in Saudi Arabia through a partnership with a US based firm.

Drive for overseas developments

The Sobha Group is known for its premium projects in Dubai, along with a decently sized portfolio in southern India. Chairman of the group, PNC Menon, says: “In our calculations we have set internal targets of how much further we can grow in Dubai/UAE and India.

“For the higher growth in future, we need more markets to be in. It’s only new geography that can keep us maintaining the growth numbers on the financials. And make us better prepared to go through the ups and downs of a market cycle.”

London the obvious choice

This move to overseas will be happening over the next two years and London is an obvious market for the group to target. While at first glance the Philippines doesn’t seem as obvious, the group believes it’s also an area rip for development.

The chairman says: “If you see the scale of remittances coming out of the Gulf back to the Philippines and the kind of growth that economy has been having, it will seem an obvious choice for a developer to be. There is significant cash flowing through the system.”

If the Sobha Group does break into the Philippines then they could be setting a trend for others to get involved as well. Historically, UAE developers tend to go towards Malaysia or Indonesia in the Far East.

London represents opportunity

The group sees London as a natural extension for its portfolio. The chairman says: “There are always opportunities be had in that city with property… and I’m saying this only about London and not the whole of the UK.”

UAE retail and institutional investors have always been interested in London, particularly when it comes to the central addresses. It’s only been in recent years that developers have been taking a more active role in this area as well.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing.