The owner of Emaar Properties and Eagle Hills and investor Mohamed Alabar said that he made a mistake in Montenegro when he applied for the tender for beaches in Ulcinj, that he currently does not have a project and that in the event of potential construction, he will do everything in accordance with the wishes of the local community.
He made this announcement at the RE:D real estate development conference in Podgorica.
Alabar emphasized that investments are not easy, that they are as risky as opening a cafe, but that he wants advice and dialogue in all processes.
Asked about construction mistakes, Alabar emphasized that he made them in Serbia as well and that he built too quickly in Albania.
He stressed that he should not have participated in the tender for the beaches in Ulcinj, and that it was a stupid idea. Alabar added that he wanted to do a project for a nice beach bar, but that the financial estimate was bad, so he got nine beaches, after which he decided to return them to the local community because he did not want to be in that business.
"I have no intention of investing in Montenegro, everyone can relax. I don't have a single project in Montenegro and I want everyone to relax. I am currently working in 18 countries, and the projects are worth 55 billion," said Alabar, adding that he owns 90 hotels worldwide, while 200.000 people currently work for him.
Alabar added that everything related to Montenegro is currently at the level of an idea, but that he wants advice, not unnecessary criticism. He presented a presentation with a vision for Montenegro, which also showed the idea of an entrepreneurial fund for young people and their beginnings in business, and emphasized that he wants capable people to work for his company "Noon".
In the case of construction projects, he emphasized that he believes that parks and playgrounds for children and the University of Technology should be built. He pointed out that the summer season is over in four months, so a conference center can also be built to attract tourists at any time of the year and so that the economy would not be left without work for eight months.
He also pointed out that they want local businesses in all projects, which is shown by the fact that they have 600 of them in the Belgrade Waterfront project. He claims that he would also build beach clubs, lifestyle restaurants, but also social housing facilities, and that Montenegro also needs an international marina, an airport...
He stated that he builds social housing facilities of his own free will and does not speak about them.
"I pay taxes and I build. If I get the chance, I would like to work and build together and invite local businesses and communities to do business together... That is if we get the project," Alabar said.
Of the mistakes he has made so far, he claims that he did not have the best team when he started, and that he also lost a billion and a half when investing in the US in 2005. He claims that their annual profit is around four billion dollars.
He emphasized that the wishes of the local community come first and that he does not plan to take the beaches, but that they should be public and belong to the citizens.
He believes that a good investor should take a smaller part of the beach that is allowed by the planning documentation, after which an assessment can be made of whether the effects of the project are suitable for the community or give up at the start - if they don't want it.
He emphasized that the money in the event of his investment would come from trusted banks and that he wanted a partnership relationship, without buying and selling land.
"I believe that the contract between the investor and the owner must be clear, in case there is no construction, the land is returned to the owner. I have 12.000 investors in Egypt and 52.000 in Dubai, I invite local investors to create a company together if there are investments in Montenegro," he said, adding that anyone who wants and supports the idea can invest money, and that investors sit on the Board of Directors for projects and have transparent insight into tenders and all procedures.
Alabar pointed out that Porto Montenegro is better known worldwide than Montenegro itself, and that a room in the season is $700, while in the rest of the beach resorts it is $150, but that everyone could earn $700. He emphasized that salaries in Porto Montenegro are three times higher than in other places in the country.
There will be no investments, he says, if there is no good offer for the project, and he reminds that interstate agreements for EU countries are valid under the procedures of the Vienna Convention.
He claims that all procedures and potential decisions must be approved by the Assembly, after which the request is presented and coordinated with the investor, after which they are decided. He emphasized that every contract, street and job must go through procedures, while work on the project would be carried out by local companies depending on the construction documentation and permits.
"Everything has to go through parliament. If they can work with local partners, we can see what they want and don't want. Local laws dictate building heights and plans," Alabar said, emphasizing that some states require that half of the site be gardens, and that those requirements be respected.
He explained that he was building a project worth $4 million on 400 million square meters in Egypt, and that as such he put Beverly Hills to shame, because the value of the houses he purchased increased fourfold in the following period.
He referred to the project in Marassi, Egypt, where, as he claims, he invested 50 million in a children's playground, employed a total of 130.000 workers, 20.000 of whom are working today, invested 3,7 billion dollars, issued 1.626 tenders and paid 600 million in taxes. He pointed out that customer spending increased 11 times, house values increased three times, while salaries were 60 percent higher than in the surrounding area.
He claims that they are handing over the investment or management of beach bars and restaurants to local companies that have the will and in which they invest.
"I don't talk about the environment and sustainability because that's my business, and I don't do it if it's not like that. In Serbia, the value of real estate around the project has increased by 80 percent since 2015, and 10,5 thousand workers work there today. We pay 200.000 to the state daily, estimates that we pay 6 million per year are ridiculous," said Alabar.
Alabar said that he has been to Montenegro twice, that citizens recognize him on the street and tell him that they are glad he is here. He pointed out that one of them told him not to give up, and that it was an interesting message. He added that Podgorica is a beautiful city with surrounding hills.
He spoke at a panel on the development of megaprojects and their impact on the state's local economy.
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