Locally-based companies need to be quick to react to new revenue streams from the property boom in the UAE, according to a leading interiors firm.
The UAE-based Gemaco Interiors has forecast up to 25 percent growth for 2004, thanks to the huge number of property developments springing up across the country. Soren Kraen, general manager of Gemaco, said: “While many companies are expanding into the GCC, we believe that there is enough potential for growth here in the UAE to register a 20 to 25 per cent increase in turnover this year.”
The firm recorded a turnover of Dh100 million in 2003, across a business that is split evenly between corporate and individual clients.
“We have made a conscious decision to focus on our key markets in Dubai and Abu Dhabi, as we believe them to have huge potential, rather than risk taking our eye off the ball by moving into new territories,” he explained.
Kraen believes that the market has grown through the increased number of long-stay expatriates, as well as the burgeoning number of home-owners in the UAE.
“Latest figures suggest that there are 100,000 units available to buy – either open now or currently available off-plan – in Dubai alone, and we see this as an area where we need to lead the way.”
According to Kraen, one of Gemaco’s key factors for success in this market is through its in-house design service. As well as providing a complimentary in-house interior design consultancy for corporate clients, Gemaco Interiors offers the same service to private customers.
“This interaction with the customer, whether it is a corporation or an individual, is one of the most effective ways to grow business organically. “Retaining a customer is four times cheaper than attracting a new one, and we see that parallel with markets as well. Developing our position in the UAE market is the most efficient way of growing our business.”
Gemaco Interiors was founded in 1989, and now employs more than 300 people. Its principal showrooms are in Abu Dhabi and Dubai, with warehouse facilities in Abu Dhabi, Al Ain and Dubai. Gemaco is currently involved in projects for Dubai Media City, Dubai Internet City and Dubai Sports City. (menareport.com)
© 2004 Mena Report (www.menareport.com)
