By Ramy Sfeir, Karim Abdallah, Charly Nakhoul, and Zahi Awad
The GCC’s real estate sector has been struggling in recent years, with property values and real estate companies’ valuations falling significantly. The recent dual shock of COVID-19 and sharp decline of oil prices has exacerbated these problems.
In response, many companies have launched prompt measures focused on physical safety and financial liquidity to ensure business continuity. Yet to mitigate the fallout and emerge from the crisis in a position of strength, companies must do more. They should prioritize two sets of measures: stabilizing the business, and strategizing for the rebound.
The real estate sector will remain a vital engine of growth. Although the environment has become less predictable, companies can succeed by reinforcing their core capabilities in asset management, becoming lean and agile to decide on and implement changes more rapidly, and enabling themselves through digital transformation.
This article originally appeared in Construction Week, May 2020.