Gulf property developers will be able to withstand the worst effects of the global credit crunch by banding together to manage both supply and financing, says Nasser Chammaa, chief executive of Solidere International, the Lebanese developer.

As the global crisis hits Dubai hard, the property market in the Gulf’s financial centre is showing signs of a sharp correction after a seven-year boom, and many construction projects are under review.

“There will be an impact on demand and many projects will be postponed,” says Mr Chammaa, head of the Lebanese property development company that rebuilt Beirut from the rubble of the civil war and is now managing developments in the emirate of Ajman, in Saudi Arabia and in Egypt.

“But four or five big operators control about 85 per cent of the market in the Gulf and there is huge government presence in these companies, so I think they will come together and work jointly to ensure that the impact of this crisis is not as big as it could have been without collaboration,” he told the Financial Times.

Solidere – the Lebanese Company for the Development and Reconstruction of Beirut Central District – is a real estate giant at home, having been founded in 1991 by Rafiq Hariri to rebuild Lebanon after the civil war. The company thrived under Mr Hariri thanks to his excellent political ties – until he was assassinated, while prime minister, in 2005.

Solidere’s redevelopment transformed the downtown area – a district often referred to simply by the company’s name – and more residential and commercial developments are now planned in central Beirut.

But many projects are behind schedule because of political upheaval in Lebanon. The country was without a government and the downtown area was paralysed with protests for much of last year.

As its projects in Beirut progress, Solidere has been expanding rapidly abroad. It created an international unit in 2006 and incorporated it in the Dubai International Financial Centre last year, taking a 33 per cent stake.

Solidere International and Ajman are developing Al- Zorah, a Dh220bn ($60bn) self-contained city on the United Arab Emirates coast which will cover an area of 12 sq km. The developers say $10bn worth of land, 25 minutes from Dubai airport, has already been sold.

In Egypt, Solidere has joined forces with the Sixth of October for Development and Investment Company to develop two mixed-use town centres in the suburbs east and west of Cairo.

In Saudi Arabia, it is part of a consortium developing Jeddah’s centre, charged with revitalising a 3m square ?metre area in the city through land reclamation and urban rejuvenation.

“Solidere has expanded regionally to take advantage of the opportunities abroad and to leverage its know-how and experience,” says Nassib Ghobril, head of research at Byblos bank. “They?.?.?.?have established Solidere International as a regional player based in Dubai.

“The question not just for Solidere but for all of these projects is: will they be continued as planned or postponed or scaled back? We don’t yet know what will be the full impact of the financial crisis on real estate in the Gulf.”

But Mr Chammaa, who has been chairman of Solidere since its inception, says it will be able to weather the looming slowdown.

“Every developer will be affected by what has happened. To say otherwise is foolish,” he says. “But what I’m saying is that our situation is such that we will be able to withstand this crisis much better than others.”

The reason? “We have a very healthy balance sheet and we have a good net cash position with a significant amount of receivables in rent and from the sale of land,” Mr Chammaa says.

Solidere is due this month to report its first-half results and Mr Chammaa says they will be “a very good percentage better” than previous periods. Last year, it recorded net profits of $156m in 2007, up 18 per cent on the previous year, but consolidated with Solidere International, net profits would have been $224m last year.

Far from being crippled by the financial crisis, Mr Chammaa insists the credit crunch is strengthening the company’s ability to bargain. “Our situation in Ajman – we have $700m-$800m in cash and $2bn in receivables – means we are in a position to negotiate with the contractors and bring the prices down,” he says.

Some analysts question whether Solidere will fare as well in the region as it did in Lebanon, where it enjoyed a monopoly and had close ties to the government.

Mr Chammaa dismisses such questions, saying Lebanon’s recent history means Solidere can endure the most trying of conditions.

“Solidere survived despite two or three wars, a major economic downturn that lasted a few years, and we were blocked from doing many things when Hariri was out of power,” he says. “I think the experience we have gained in Beirut gives us all the skills to survive and to do really well outside Lebanon.”