Money & Me: Travel and tourism executive says it’s got to be tangible

Despite winning - and losing - on the Dubai property market, Emirati entrepreneur Saoud Mohammed Al Darmaki still believes that tangible investments, such as land and real estate, are best.

Saoud Mohammed Al Darmaki earned Dh9,000 in his first job. Mona Al Marzooqi / The National

Saoud Mohammed Al Darmaki is the founder and chief executive of Premier Travel & Tourism. The Emirati, 35, was born in Al Ain and is a father to three children, a daughter aged five and two sons aged six and two.

How did your upbringing shape your attitude towards money?

My parents always told me to save money, and I believe by saving you can reach your future goals. That doesn’t mean that you shouldn’t enjoy life – but enjoy your life by planning your life.

How much did you get paid for your first job?

My first job was in public relations in 2006 at the Abu Dhabi Department of Economic Development. My starting salary was Dh9,000. I worked mainly on protocol and in media relations. It was my job to receive VIPs who came to meet the department’s chairman – whether that was sheikhs or delegations from other countries. Back then, I was saving money and still had more than enough left over.

Are you spender or saver?

I like to spend – but not without a limit – and save at the same time. I spend money on the important things: my house, my family, my life, my business.

What is your most cherished purchase?

My car: a BMW 7 series, 2012. It is easy to drive, and offers a great service. It cost me Dh320,000. I used to have another car but I sold it and then put the difference into the new car. Normally, I like to spend on travelling. I like the Gold Coast in Australia where I studied, and Melbourne most of all.

Have you ever had a month where you feared you could not pay the bills?

No. Sometimes I might have a problem where I face a big bill – but I can manage it.

What has been your best investment?

I bought an apartment in Dubai in 2008 for Dh240,000 and sold it after the crisis in 2014 for Dh320,000. It was an experience and I learnt from it. Buying real estate is the best investment – not buying the papers to a property, but buying something you can touch and see.

What do you regret spending your money on?

In 2008, I also bought an off-plan residential studio apartment from a very famous developer, who I won’t name, in Dubai. But after the crisis, they said that the project was cancelled. I went to my lawyer and the company refunded me: I got my Dh300,000 back. For this project, even though the company is very strong financially, many people lost their money. In 2015, everything has changed. Before it was risky – you would buy a house, and it would be only be a piece of paper. Next time I buy a property, I will be more careful.

What financial advice would you offer your younger self?

When I was young, I never thought about saving money. Many Emiratis would buy a patch of agricultural land, work it for six months, and then sell it back to the government at a profit. Nowadays, more Emiratis have changed to other ways of investing – mostly real estate or stocks. But nobody knows what’s happening in stocks – they will never be stable. I don’t like stocks, because there is a risk. But in property, you might lose 10 or 20 per cent, but not 90 per cent. Most importantly, don’t buy something without having the land or a real building. A document doesn’t mean anything.

Do you have a plan for the future?

My main focus for the next two to five years is to invest in my travel and tourism business. We plan to buy luxury buses to transport groups of tourists.

If you won Dh1 million, what would you do with it?

I’d buy a fleet of luxury buses.

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