Riddoch told Khaleej Times, " There is simply too much demand for contractors and the industry has been unable to cope".

One of the issues construction companies must contend with is the speed at which visas are issued and the shortage of staff accommodation. "Demand [for the services of construction companies] is very high and contractors can't find accommodation for labourers," he said.

"Consultants [ie engineering firms, architects, designers] are also taking on more than they can chew," he said. Tender documents could take three or four weeks to be prepared, and there are often considerable delays in receiving job quotations, he explained.

To increase capacity, Damac is engaging consultants and engineering firms from abroad, such as Malaysia.

The failure of master developers to prepare the infrastructure for the land in a timely manner is also having a knock-on effect on developers. "We cannot move if the utilities are not ready," he said.

In Damac's case, when buyers have faced delays, they have been compensated. In the case of Marina Terrace, customers were paid interest on their money and those who arrived to find their apartments were not completed were accommodated at various hotels, including the five star Al Habtoor Grand Resort and Spa, at the company's expense, Riddoch said.

All units in that development were also fitted with free white goods and the kitchens and bathrooms were all upgraded from standard to premium, he said.

The next residential property to be delivered will be The Waves, also in Dubai Marina, at the beginning of August. Lake Terrace will be delivered in mid-2007.

When asked how Damac finances such large-scale projects, and so many at the same time, the executive confirmed that the company does borrow from banks but said: "We maintain very healthy ratios. We operate a very conservative policy on borrowings".

He also said Damac was the only company in the region that starts announcing and selling a project as soon as the plans are finalised with the master developers.

The nature of the development is indicative of Damac's "premium" business model. "We wait for top quality and top location. It took us two years to finalise the land in Lebanon," said Riddoch.

He also said: "While we want to be the region's luxury provider, we also want to do this globally."

Recently, Damac announced "La Residence by Ivana Trump", a $150 million real estate venture in Beirut City Centre. It is a 27-storey tower offering a mix of one, two and three bedroom apartments, along with duplexes and penthouses. All are fitted with smart home technology.

The Trump brand will be rolled out to other international locations.

While residential developments have been Damac's main focus, it is increasingly turning to commercial developments. To date it has launched five such projects in Dubai, and two more are in the pipeline. For investors, the yields at 14-15 per cent are higher than on residential projects, which are about 10 per cent.

Riddoch also said that the price of land in Dubai still remains reasonable compared with other parts of the world. For example, a plot of land costing Dh1,200 per square foot in Dubai would cost Dh2,400 in Beirut, Dh6,000-Dh7,000 in London and Dh12,000 in Hong Kong.

He is also bullish about the property market, allaying concerns in this respect. "Dubai is a hub, it has good infrastructure, and it attracts Europeans, Indians and Africans who are looking for a second home."

Nor is he concerned that Dubai's reputation will be affected by the actions of any unscrupulous operator. "Dubai business will not be affected by such things. There was the Enron collapse in the US and it did not result in the US shutting down," he commented.