The Financial Times has published news that the company Emaar is selling hotels, modern schools and clinics in an effort to raise funds, by selling property that is not basic, but at the moment when real estate prices in Dubai have fallen.
Foreign investments consultant Mahmut Busatlija has said that news about CEO of Dubai based company Emaar, Mohamed Alabbar, a co-investor with the Republic of Serbia in the Belgrade Waterfront project, selling property worth US$1.4 billion in the midst of decrease in real estate prices indicates there are major problems in funding of his projects, thus this Belgrade based built-up area might get a new owner.
“Alabbar is a financier of major projects, but with other people’s money, and he does business by pulling investors’ sleeves and persuading them to invest money in the thing that he offers. He is a known manipulator who is using other people’s money and he has probably over-invested in certain business ventures thus he lacks funds for other obligations,” Busatlija has said.
He has added that Alabbar is also famous for his plan to build a new Cairo, which would cost between US$60 and US$80 billion, and he is popular in Montenegro as well where he often resides. The entire America, as Busatlija has said, realizes half of its annual profit not by building and production of certain goods, but with manipulations on secondary financial market, and “Alabbar operates in the same fashion.” He has pointed out that, if Alabar had over-invested, he would have to establish priorities in alienation of property, thus he could offer Belgrade Waterfront for sale as well, as this project, although worth around EUR3.5 billion, will certainly not bring high profit since he will, not without a reason, fund it for 30 years, with only EUR100 million a year.
“When Arabs expect high profit and when a certain project is important to them they realize it in two years,” Busatlija has said. He has added that structure of an investment in Belgrade Waterfront, as a joint project of the Republic of Serbia and Alabbar, must be public, but not even Serbia respects that, while this is common for Arabs as they are investing their own money.