Not long ago it took barely a couple of spreadsheets to compile a list of freehold properties on offer in Dubai and the list did have some life. Today compilation of such a list is a much more difficult task and the data is in danger of being outdated as quickly as it can be put together. That is the pace at which new offerings are being added, not to speak of the freehold projects waiting to be unveiled in other emirates such as Abu Dhabi and Ras Al Khaimah.
When the construction business booms, other businesses follow suit. For instance, a dramatic upturn in the residential market is a supplier's delight as the new homes create the demand for other new things services, products and facilities.
Going by this logic, Dubai's electronic and white goods trade must be going through one of its busiest and most profitable seasons. But unfortunately the ground realities are quite different.
As the freehold property business acquires increasing sophistication, the local electronic trade is faced with the harsh reality that by and large it has been kept out of the loop and has little role to play in the boom. The market has undergone a drastic transformation.
Gone are the days when the homes were created as per the choice of those who live in it. The new offerings are mostly smart homes, with a large part of the basic amenities already in place and decisions on brand, costs etc vest with the big builders or their contractors, who tie up bulk supplies from the best possible sources. The local dealers are simply kept out of the picture.
Some of the developers have subsidiary companies, specialised in providing these services. With manufacturing facilities abounding in countries such as China, these companies get products made under their own name from OEM manufacturers. The items procured in this manner include television sets, refrigerators and other air controlling devices, kitchen equipment, light fittings and a host of others. Not only does the route save money for the developers, it also adds profile to the projects and the properties.
But the developers' gain invariably becomes the local trade's loss. Dubai's electronics and home appliances trade is lamenting the fact that the unprecedented boom in the residential market is not bringing them a fair share of the business. With many other problems to contend with, the trade is already struggling to carry on.
Trade sources point out that this is a new trend in the market, which in times of boom shared the prosperity among the local players and suffered as a flock in times of trouble. But in the changed situation, even a market boom is of no help as rank outsiders with no stake in the market are walking away with the benefits.
Credibility
As the determining factors get narrowed down to cost alone, issues like brand and credibility have ceased to be relevant. The inevitable result is that the quality of the products deployed in the new homes may be suspect, but this issue would come up only after some time when the owners start moving into their new homes.
There have already been complaints that cost compromises have led to poor quality of materials being used in some of the constructions and that in the hurry to build quality is getting shortchanged. Lack of effective supervision has snowballed into an issue that undermines credibility.
Irrespective of how this matter will get resolved, the local electronics trade has a task cut out for itself. Isolationist policies are unlikely to show a way out. Perhaps the trade needs to rethink its strategies and forge partnerships with the new players so that it also stays in contention.
The writer is a UAE-based journalist.
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