Ziad El-Chaar, the new CEO of developer Dar Al-Arkan, has plans to transform the Kingdom’s property market and go global in the process
It was said that a major fall-out with Hussain Sajwani, the founder and chairman of the group, over management style and the direction of the luxury developer had led to his abrupt departure.
Some of those aspersions were laid to rest when, a few weeks later, El-Chaar was named as chief executive of Dar Al-Arkan, the biggest real estate group in Saudi Arabia, and, at a recent meeting back in Dubai, the 48-year-old Lebanese man was happy to set the record straight.
“The headhunters are always busy in the region. I wanted to go and be a CEO of a real estate developer and take charge of the whole process, from planning and development thorough to sales.
“At Damac, there was a relatively young founder and chairman who wanted to be involved in all aspects of the business. But I have a great deal of respect for Mr. Sajwani. I was at his house just a few weeks ago and we’re still very friendly,” El-Chaar said.
In fact, the opportunity to take charge of Dar Al-Arkan — known as DAAR in the property business — enabled El Chaar to get back to one of the things he had originally joined Damac to do: Manage the international expansion of a regional group that had global ambitions.
He was head of Damac’s international operations for a number of years before; in a sign of the esteem in which he was held by Sajwani, he got promoted up to the MD’s job and board member role.
“DAAR is the number one in the Kingdom in terms of deliveries, market capitalization and land bank. It is a household name. But I think it was seen as something of a “sleeping beauty.” Now it’s our time to shine as an international developer,” he said.
El-Chaar was in Dubai to mark the first stage of that international expansion — the unveiling of a $218 million project to build a luxury apartment block, called the I Love Florence Tower, by the side of the Dubai Water Canal, in partnership with Italian fashion designer Roberto Cavalli.
It is the latest in a series of collusions between real estate developers and upmarket fashion brands like Armani and Versace, which have added even more glitter to the Dubai property scene. But the new DAAR tower is aimed unashamedly beyond the UAE. “It’s a project outside of Saudi but designed to cater for the Saudi customer. The Dubai launch was amazing. I’ve been doing these for years at Damac, but I’ve never seen 420 people show up on the first day. Around 150 flew in from Saudi just for the event,” said El-Chaar.
“In Dubai, Saudi customers’ first response is ‘we want to be in Downtown’, near the Burj Khalifa, the Water Canal and the Dubai Mall. There is not much land available there, but we’ve already decided our next development will be in the same area,” he added. The Florence Tower is scheduled to open in June 2021, and could be the start of a wider alliance between DAAR and the Italians.
“We might consider launching Cavalli in Saudi. The market would be good for a limited release long time to get projects up and running.
“Timing and implementation is a challenge in Saudi. Going through the whole development process is still time-consuming. It is not just bureaucracy, it’s just a complicated process to buy and develop on a big block of land. But it’s normal for the region. Even in Dubai it takes a long time to get a master plan done,” he said.
Was corruption a factor? El-Chaar was non-committal. “My focus is on real estate development, and I can only say there are a lot of factors that affect property development, negatively and positively. We’ve just got to push through regardless of what’s happening in the wider market,” he said.
The next phase of the international expansion plan is likely to include London, which is a market El-Chaar knows well and where DAAR already has an office, and Bosnia, which is an increasingly popular destination for Saudi real estate investors.
“The London market has been volatile, but sometimes volatility makes for an attractive acquisition opportunity.
“London is an easier market than Bosnia because the legal structure is there already. Land titles are clearer and more established. In Bosnia, you often get multiple owners, which makes buying large sites more complicated. It’s largely a fresh field development in Bosnia,” he explained.
But, with the economic transformation under way in Saudi Arabia, there is much to keep El-Chaar and DAAR busy in the Kingdom.
Its Al Qasr Mall in Riyadh has already given over a big chunk of space for a cinema venue, which will open next year, though an operator has not yet been chosen.
And beyond that, the opportunities seem unlimited. “Have you seen the size of Neom? It’s bigger than two Lebanons. I’m sure every developer in the world will be involved in that,” he said.
DUBAI: There were some dark mutterings in May this year when Ziad El-Chaar resigned his position as managing director of Damac Properties, the Dubai-based developer.