Dubai, UAE, March 18, 2007: Emaar Properties and Dubai Holding today announced that the two companies have reached an agreement in which Emaar will issue 2.364 billion new shares to Dubai Holding in lieu of land and will work towards a strategic partnership to drive further growth in Dubai and international markets.
Emaar Properties will call for an Extraordinary General Meeting to be convened for shareholders’ approval of the increase of the company’s capital with the issuance of new shares to Dubai Holding.
Dubai Holding is the largest and most holistic conglomerate in the Middle East and has established a firm foothold in 11 industries, developing and launching initiatives spanning diverse sectors of the economy. In January this year, three of the world’s leading credit agencies namely Standard & Poor’s, Moody’s Investor Service and Fitch, assigned ace ratings to Dubai Holding. The positive ratings cast a strong vote of confidence in the Group’s intrinsic financial strength, its strategic role in Dubai’s economic development and the Emirate’s phenomenal growth as a thriving hub.
Emaar Properties is one of the world’s largest real-estate companies and is evolving relentlessly to become a global provider of premier lifestyles. A Dubai-based Public Joint Stock Company, Emaar Properties is listed on the Dubai Financial Market (DFM) and is ranked among the top four stocks of the Dow Jones Arabia Titans Index.
Emaar Properties announced record revenue of AED14.006 billion (US$3.813 billion) and net profits of AED6.371 billion (US$1.735 billion) for the financial year ended December 31, 2006, registering a 68 per cent and 35 per cent increase in revenue and net profits, respectively.
Commenting on the equity participation, H. E. Mohammad Al Gergawi, Executive Chairman of Dubai Holding said: “Dubai Holding’s mission is to provide a better future for all, to dynamically support the development of Dubai as a world-leading hub and to drive our companies to become leaders in their respective fields in the Middle East and beyond. Emaar has generated tremendous value for its shareholders. The company has established an exceptional track record in Dubai, aggregating valuable expertise, know-how and resources in property development. Today, as an international player with a substantial presence outside of Dubai, Emaar has amassed a valuable land bank, embarking on landmark initiatives to provide the crucial catalyst for this region’s economic growth. Through equity participation, Dubai Holding and Emaar can jointly tap these remarkable prospects and be an integral part of the region’s incredible growth story.”
“Dubai Holding is the driving force propelling the extraordinary rise of Dubai and its prominence on the global map,” said H. E. Mohamed Ali Alabbar, Chairman, Emaar Properties. “It is one of Dubai’s most visible success stories in global investment and development today. We are highly impressed with Dubai Holding’s singular vision and on-target growth strategy. Under its comprehensive corporate umbrella, Dubai Holding has created a spectrum of companies that have each become a world-class leader in its field.”
Dubai Holding currently has 19 companies operating in a variety of sectors, ranging from health, technology, finance, real estate, research, education, tourism, energy, communication, industrial manufacturing, biotechnology and hospitality.
In line with its Vision 2010, Emaar has outlined a new course of growth through a twin strategy of geographical expansion and business segmentation. Replicating its successful business model in Dubai, Emaar is extending its expertise in creating master-planned communities to international markets. Simultaneously, Emaar is developing new competencies in retail, hospitality and leisure, education, healthcare, finance and industry, which have evolved from its integrated approach to customer service and property development.
“Emaar is en route to becoming one of the world’s most valuable companies in the world,” said H. E. Mohamed Ali Alabbar. “We see exceptional synergies between Emaar and Dubai Holding in high-growth sectors, including real-estate, hospitality, healthcare, education, finance and industry. In our core business of real-estate, in particular, collaborative efforts between Emaar and Dubai Holding can translate into an enhanced value proposition for both our customers and shareholders. Both Emaar and Dubai Holding will enjoy greater economies of scale, extract improved cost structures from our construction contractors and suppliers, in addition to attracting and retaining the best human talent. Together, we can create a world-class company - one of the most valuable - that will truly put Dubai on the world map.”
