Building Industry Roadmap Must Change; Zarghani: Financial Architecture Is Today’s Necessity

Mehdi Zarghani, Secretary of the Mass Builders Association, has declared that continuing with past methods or halting projects are both dead ends in the current economic climate. He stressed that the only effective solution is a fundamental change of approach, including implementing “financial architecture,” conducting feasibility studies before construction, and revising laws with the active participation of the private sector.

In an interview, Zarghani pointed to the profound changes in the country’s business environment and emphasized the need for a fundamental review of traditional development and construction models. Stating that “the map has changed,” he added that this shift does not mean stopping projects, but rather requires altering procedures and adopting new strategies.

Financial Architecture; Replacing Traditional Methods of Resource Provision

Zarghani highlighted the major risks facing the construction industry, such as policy changes, currency fluctuations, and inflation, and asserted that the greatest danger lies in continuing with past methods. According to him, merely having good land or a suitable design is no longer sufficient; industry players must move towards “financial architecture.” The Secretary of the Mass Builders Association emphasized that traditional methods, such as relying on the developer’s capital, pre-sales, or bank facilities, no longer meet current needs and that a combination of new financial tools must be integrated into the construction process.

The Need for Law Revisions and Effective Private-Sector Presence

Referring to discussions held with executive officials and legislators, the Secretary of the Mass Builders Association noted that many problems originate from existing laws, and it is essential to revise them with the active participation of the private sector. Criticizing decisions made behind closed doors that prove ineffective during implementation, he said: “Such decisions lead to incomplete projects and a flawed economy, ultimately resulting in the waste of national resources.” Zarghani expressed hope that with the new approach of the government and organizations such as the Chamber of Commerce, this participation will become operational.

Operational Solution: Feasibility, Market Understanding, and Quality Focus

When asked about his proposed solution, the Secretary of the Mass Builders Association emphasized three main components: precise feasibility studies before investment, a thorough understanding of the market before construction, and intelligent financial architecture. Zarghani added that “quality of life” should be the foundation, avoiding designs created solely for sales purposes.

The Mass Builders Association’s New Approach; From Contracting to Development

Explaining the Association’s new approach under the banner of “development,” Zarghani said: “The main problem of the industry is not a lack of capable contractors, but rather a weakness in project definition and a traditional view of construction.” He announced the gathering of developers with ideas and vision under this approach, emphasizing that a successful developer must simultaneously manage financial, branding, sales, and marketing teams, while delegating construction solely to contractors.

The Mass Builders Association’s Outlook

In concluding his remarks, the Secretary of the Mass Builders Association described the organization as “the gathering place for the country’s building developers” and said that by pooling capabilities and leveraging each other’s strengths, the Association will have an active presence in decision-making bodies. He also recalled past effective collaborations between the Association and Sama Media, expressing hope that in the new era, fruitful cooperation with media and industry activists will continue.