Hussain Sajwani, the chairman of Damac Properties, one of the United Arab Emirates' largest private real estate developers, sought to downplay the severity of flooding in the country earlier this month, characterizing the incidents as merely “pockets of problems.” This statement comes in the wake of a historic weather event that saw the typically arid Gulf nation receive roughly a year’s worth of rain in less than a day, a deluge unprecedented since records began in 1949.

On April 16, the UAE experienced torrential rains that led to flash floods, causing significant disruptions across the region. The floods engulfed vehicles, with many being fully submerged, forcing hundreds of drivers to abandon their cars to escape rising water levels. The extreme weather event resulted in the closure of schools and businesses, the grounding of hundreds of flights, and widespread damage to properties, cars, and businesses. Many residents lost power and running water, while others were trapped in their homes or airports.

Despite these challenges, Sajwani emphasized the rapid recovery efforts in the UAE, contrasting them with responses in other countries. “I think the subject was overexaggerated, honestly,” he told CNBC’s Dan Murphy at the World Economic Forum’s “Special Meeting on Global Collaboration, Growth, and Energy for Development” in Riyadh, Saudi Arabia. “Fine, we get some, in one of the malls, some damage. But if the mall is 3 million square feet ... and if a 100 meter leakage or whatever happens — it’s not the end of the world and it was fixed the next day.”

Sajwani recounted his experience arriving in Dubai from London just hours after the rain had stopped, visiting all major properties owned by his company to assess the damage. “There were pockets of problems, I’m not saying no, but it was overly exaggerated,” he reiterated. He drew parallels to similar natural disasters in other parts of the world, noting, “Any country, I mean, you see floods and things like that happen in Miami regularly and houses get destroyed and people get evacuated. That’s today with the environment changing. Everywhere in the world you’re getting those kinds of storms, OK, and Dubai has been hit with that. But they managed it very well.”

Despite acknowledging the severity of the storm, Sajwani downplayed the need for new measures or lessons, stating that such a storm was an anomaly, the likes of which hadn't been seen in 75 years. The UAE’s National Center of Meteorology reported that some eastern parts of the country recorded up to 250 millimeters (10 inches) of rain in less than 24 hours, whereas the UAE typically sees 5.5 to 8 inches of rainfall annually.

The lack of adequate drainage infrastructure and the extensive urban paving exacerbated the flooding, leaving water with nowhere to go in many areas. Dubai Airports CEO echoed the unprecedented nature of the storm, underscoring the challenges it posed.

The cleanup efforts continue as authorities work to restore normalcy. A multistory apartment building near the Dubai-Sharjah border sustained significant structural damage, leading to its evacuation due to collapse risk. Some developers in Dubai offered free repairs and committed to proactive measures in response to the floods. Damac Properties, in particular, collaborated with local authorities, deploying tankers to collect floodwaters and assist residents. A Damac official confirmed that their upcoming developments remained unaffected.

Speaking to CNBC, Sajwani stressed that Damac Properties’ infrastructure was robust, which helped mitigate the impact of the floods. He highlighted a preemptive action plan implemented days before the storm hit, following a warning. “We had zero impact. I mean zero impact. I’m telling you 98% of our units, maybe more, were intact,” he asserted.

While Sajwani's comments aimed to reassure stakeholders about Damac’s resilience and the UAE’s rapid recovery, the event has spotlighted the growing challenges posed by climate change, even in regions unaccustomed to such extreme weather. The real estate sector, particularly in rapidly developing regions like the UAE, may need to re-evaluate infrastructure resilience to cope with future climatic uncertainties.