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Damac enters new markets
One of the UAE’s largest real estate developers, Damac, is entering a new area for itself: the technology sector. To this end, it has allocated 1 billion euros, which will go to the development of this industry in Germany. According to company representatives, the investment will be used to support data centers and the development of new technologies.
Damac believes that Western Europe has huge potential and that now is the ideal time to invest in its IT business. Despite the fact that its main field of activity is the construction of luxury real estate in Dubai, the company is actively developing other areas – the fashion and technology sectors. An important step in diversification for Damac was the acquisition of De Grisogono SA, a Swiss company engaged in manufacturing jewelry. The deal took place this spring, and in 2019 the developer bought Roberto Cavalli, a fashion holding from Italy.
Damac was founded in 2002, and since then it has expanded into the United Kingdom, Oman, and Qatar. In 2017 it won the status of the fastest growing business in the world in the Forbes Global 2000 ranking. The basis for the primacy was the 3-year revenue growth, sales volume, and a number of assets. Since then, the company has not lost its position in the market and continues to implement large-scale projects in Dubai and the UAE. The head of the business is billionaire Hussein Sajwani.
The company’s most famous projects are Akoya Oxygen, Aykon City, and Damac Hills.
In April of this year, Damac announced that cryptocurrency can now be used to buy its properties. So far, objects in Dubai can be purchased for Bitcoin and Ethereum, but soon the list of available coins may become wider. According to the developer’s representatives, this solution will be unique to the real estate market and will open up new opportunities for further development. The transaction process will now become easier and faster for many clients, which means that more people from around the world will be able to become owners of luxury housing and commercial properties from Damac.
The UAE government is also promoting the use of cryptocurrencies. Emirates is developing regulations to regulate transactions in digital assets, which will allow them to expand their use. The country is already issuing official licenses for e-money providers and services related to e-money. In addition, a number of major international crypto exchanges have already opened offices in the UAE, including Binance, Kraken, and FTX Europe. At the beginning of the year, Damac’s management also said it was planning to develop its own metaverse, where NFT could be used.