Sunday, Jan 25, 2009

Gulf News

Dubai: Zabeel Investments Executive Chairman Mohammad Ali Al Hashimi said the group will remain focused on strategic growth and development of its portfolio during 2009.

Zabeel Investments currently has Dh22 billion in assets under management, covering property, hospitality, construction and education.

"We will meet the challenges of 2009 head-on," said Al Hashimi. "While the global crisis is a reality and we can't ignore how this will impact on the UAE's dealing with international markets, our long-term planning will ensure we overcome the short-term challenges. From a UAE perspective, we are moving ahead as planned; however outside our borders we are taking our time to consider the opportunities available, and ensuring that we don't take on overvalued prospects."

Al Hashimi said the market correction will allow mature investors and those with long-term plans to benefit.

"Speculators had long influenced market prices to an extent that as a developer you had to keep reviewing cost in line with perceived demand. Our target market has and always will be end users who believe in the Dubai model and who share our long-term commitment to the city.

"The Government of Dubai's commitment to the continued investment strategy as outlined in the Budget for 2009 is in line with the vision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, for Dubai to be one of the leading cities of the world."

Zabeel Properties, the property arm of Zabeel Investments, will deliver two key developments in 2009; both on the Palm Jumeirah.

"From the outset, we were determined to keep our Dh18 billion property portfolio focused on Dubai and on the high-end luxury segment, which has proved a prudent one. While there has been some impact to the Dubai market by the global crisis, it is much less apparent than in other parts of the world, allowing us to keep to the status quo," he said

In terms of its strategic equity stakes, Zabeel Capital, the group's wholly-owned investment arm will continue to look at distinct local and international investment opportunities, in line with the same strategy laid down in 2008 and building on the existing Dh3.6 billion portfolio.

"We looked at a number of opportunities during 2008, however with the anticipated shift in the markets, we could see that we would get better value for our money if we were to wait. There are a host of really solid investments out there to choose from; brands with a strong heritage and loyal customers; however we will continue to wait for the optimum conditions before considering any new additions to our portfolio. Our strategy with our investments has always been one that has focused on companies with good track records and solid future growth plans."

The group holds a number of key international investments, including stakes in the European Aeronautic Defence and Space Company, and Sony Corporation as well as its acquisition of a 50 per cent stake in leading US-based hospitality development and management company, The Light Group.

From a regional perspective private equity leader Abraaj Capital, Emaar Properties subsidiary Emaar Industries and Investments, Asteco Property Management, Depa United Group, Arzaq Holdings, Capital Club Limited and Madaares have all received investment capital from Zabeel.

The company has also partnered with Emirates Investment Group and DIFC Investments to form Empire Aviation, established a joint venture, ZSML Construction, with Turkish construction firm Sembol Construction and created wholly owned subsidiaries Essque Hotels and Zed Communications.

Gulf News 2009. All rights reserved.