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    • Dubai’s construction industry, facing a temporary slowdown in 2019, provided multiple investment possibilities at discounted valuations thereby creating an opportunity for real estate players to enter or expand their business in this market during this time

    A temporary slowdown in Dubai's Construction Sector provided an investment opportunity

    • The construction sector was the 6th largest sector of Dubai’s economy but it had come under substantial pressure in 2019-20 due to a prolonged slump in oil prices
    • The construction industry remained resilient and the outlook for the sector remained cautiously optimistic as builders experienced financial pressure with delay in payments, fewer contracts awarded and compressed margins from previous years.
    • A few mega construction projects that were lined up such as the World Expo 2020, Dubai Creek Harbour and the Bluewater Island indicated a slow revival of the industry post 2020.

    Case: Identification of the risks and validation of target’s growth factors

    • NRI assisted a Japanese Mechanical, Electrical and Plumbing (MEP) service provider in evaluation of the Dubai MEP and Construction market and provided support to expand its presence in the region at the right time as valuations were running low.
    • NRI validated the identified target company’s recurring revenue and growth. In addition, it also conducted a rapid primary & secondary research on its markets, customers, suppliers, and competitors in the region. Furthermore, assesment of the potential upside and downside of transactions, highlighting indemnities and other risk mitigating tactics were also studied.
    • Also, NRI acted as a project manager carrying out a complete diligence exercise that covered the legal, financial and tax portions.

    Commercial Due Diligence Framework

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