Sajwani and Damac Properties Worked Hard to Survive the Property Crash of 2008

Posted by Benjamin on May 18, 2017

From 2007 through 2009 the world went through a financial crisis different from any other one in economic history.

It began in the United States with the fall of major Wall Street investment banks after the revelation that they had actively and knowingly bought and sold consolidated debt instruments based on repackaged home mortgages which would soon have a high foreclosure rate.

However, many banks and other financial organizations including trust and pension funds around the world had also bought large amounts of mortgage collateral instruments. Read more: Meet Our Board | DAMAC Properties

They had faith in the historically reliable financial solvency of the American home buyer. Although some suffered foreclosure, most made their payments on time.

It came as a worldwide shock when the world discovered that many mortgage companies were approving loans to anybody who could sign their name. They no longer verified income and the overall capacity to make the monthly mortgage payments, because the major banks of the world were taking the financial risk.

In July 2008 Hussain Sajwani of Damac Properties noticed the fall of demand for his luxury properties. The Damac owner founded Damac in 2002 in the United Arab Emirates and Dubai. Learn more about DAMAC owner:

Some people told him the economic slowdown was caused by summer, but Hussain Sajwani realized the situation was worse than that. He cut costs to preserve cash. He cut back on some of his projects. Sometimes Hussain Sajwani had to take strict measures against buyers who were also suffering from the economic conditions.

By taking these strict measures to conserve cash, Damac preserved cash, and is now the largest real estate developer of luxury properties in the Middle East. They have also expanded into North Africa, Lebanan, Qatar, Jordan and Saudi Arabia. He recently opened a golf course in one of his residential properties tied in with Donald Trump.

A second one, designed by Tiger Woods, is still under construction but should open at the end of 2018. Hussain Sajwani and Donald Trump made those deals for Damac back in 2013, long before Trump’s electoral campaign began.

Recently Trump said that Hussain Sajwani had made him a terrific offer, but he had to turn it down. As president, he has to be careful of perceived conflicts of interest. However, the Trump family and the Hussain Sajwani family remain friends.