IN 2007, when real estate businesswoman Melesa “Elsie” Chua went on a trade mission in Gulf Cooperation Council (GCC) countries (Kingdom of Saudi Arabia, United Arab Emirates, Qatar, Bahrain, Kuwait and Oman), she was struck at how overseas Filipino workers (OFWs) did not have confidence in the Philippines. Worse, they did not plan for their lives back home once their contracts expire, which they should since GCC countries do not grant citizenship to foreigners. “The challenge was not in selling homes and properties, but in orienting them to believe in the Philippines again, and teaching them how to save and invest,” says Elsie, president and CEO of CDC Holdings Inc.

She also learned that a lot of OFWs who have worked for more than 20 years abroad have not even purchased a home. The remittances would be spent by their families back in the Philippines for their wants and needs. “They felt na kinakatasan lang sila, thus the term ‘katas ng Saudi,’” relates Elsie. OFWs also thought that they needed to have P1 million on hand to be able to buy a new home.

Elsie thus decided to focus on this niche market, the first time home buyers among OFWs in GCC. “Understanding our market’s needs, we developed properties that are of superior quality but suitable to their budget. For as low as P1 million spread over a term through Pag-Ibig, our OFWs can acquire new homes that are conducive for new families and first-time home owners,” adds Elsie. Under the setup, Pag-Ibig can finance up to 90 percent of the contract price, and OFWs need only to pay about P8,000 monthly, so the homes really become attainable.

These developments include Manila Rivercity Residences in Sta. Ana, Manila, and Lions Park Residences in Parañaque, both condominiums. Also being marketed are Crisanta Villas, a townhouse project in Cainta, and La Joya de Sta. Rosa in Sta. Rosa, Laguna, which offers single detached units. OFWs can own a home of their own from as low as P950T for a studio and up to P2.5 million for a townhouse. Interestingly, most buyers go for the condos.

CDC Holdings is not new to tapping the OFW market. Back in 1992, the company started offering Philippine real estate projects to OFWs based in Japan. This was extended to OFWs in Asia Pacific and Europe in succeeding years. But they have never thought of zeroing in on OFWs in the Middle East because it was widely thought that they did not have the earning capability and the spending potential of OFWs in First World countries. During that visit to GCC in 2007, Elsie saw how progressive the countries were. “Opportunities for business and Filipino professionals abound in the food and service industries. Filipinos contributed to the growth and development of GCC,” adds Elsie. She also noted that OFWs in the region have a lot of disposable income as luxuries and vices are limited and their incomes are exempt from tax.

According to Charlene Chua, vice president for sales and marketing of CDC Holdings, and daughter of Elsie, based on statistics gathered from the Philippine Overseas Employment Administration, over 2 million or 25 percent of OFWs are in the GCC countries. Last year, they accounted for over US$2B or 15 percent of the total remittances made. Over a million OFWs are in Saudi Arabia, and more than 500,000 are in the United Arab Emirates. Since they are not to be granted residency by the countries they are in, most of these OFWs will go home in the future. It thus makes sense for them to invest in a home of their own.

To make it easier for CDC Holdings to reach its target market, it set up offices in Jeddah, Kingdom of Saudi Arabia, and in Doha, Qatar. “We learned that our OFWs were traumatized with their experience with other real estate companies. Once the initial reservation fee was paid, no follow through was made afterwards. We want to make our OFWs feel at ease with buying their homes, and guide them every step of the way. That’s why we thought our presence was needed there at GCC,” explains Elsie.

CDC Holdings also entered into a tie-up with the Arab National Bank to raffle off two house and lot packages to OFWs to increase awareness about the company and its real estate projects. It also made it possible for buyers to pay through local banks RCBC, BPI, PNB and through their foreign tie-ups with banks abroad.

Last year, CDC Holdings reported P500M in sales. This year, according to Charlene, they are targeting P1 billion, of which 70 percent has already been attained this November. “We’re expecting to hit our target by the end of the year. This is our peak season as OFWs are on their way back to the Philippines for a vacation,” says Charlene. In spite of the economic downturn worldwide, Charlene says they have not experienced a slowdown in sales. “It’s getting even stronger. OFWs have been awakened to the fact that they can invest.” Next year, the company is targeting sales of P1.5 billion as new developments will be started in and outside Metro Manila, including Cebu, Iloilo, and some provinces in Mindanao. Satellite offices will be opened in Oman, Bahrain and the UAE. To finance these, CDC Holdings will increase its capitalization to P500M next year.

“We acknowledge the contribution of our OFWs in keeping our economy afloat in this time of financial crisis. As they are integral to the development in GCC, they are also the cornerstone to our progress as a nation,” says Elsie. “We will work as hard in giving them their dream homes, and as conscientious in giving them a bright future once they settle back in the country. Overall, I believe that government and business should consolidate all efforts to protect, care, and secure the future of OFWs who have sacrificed for their families and for the country.”