19 June 2008
Dubai: Emaar Properties has more than $100 billion worth of international developments in the pipeline, which could represent up to 70 per cent of the company's revenues by 2010, according to officials.
Speaking at the monthly Dubai Property Group (DPG) meeting, Arif Amiri, senior director for investor relations and corporate governance at Emaar, said: "With a pipeline of projects valued at over $100 billion, we forecast international operations to contribute around 60 to 70 per cent of our total revenues by 2010."
In 2004, Emaar had 15.8 million square metres of land. Today, it has more than 519 million square metres in its landbank internationally, including in India, Morocco, Libya, Saudi Arabia, Indonesia and the United States. Just over 22 million square feet of the total is in Dubai.
It is estimated that Dubai currently caters to about 6.4 million hotel guests annually. This figure is set to increase to about 12 million by 2010.
Keeping this in mind, Emaar is set to branch into the hospitality sector, including the Armani-branded hotel in Burj Dubai and the 63-storey The Address in Downtown Burj Dubai with 196 rooms and suites.
Emaar will replicate The Address concept domestically and internationally.
Amiri estimated that by 2010, 12 to 15 per cent of Emaar's net profit will be generated by non-property related developments, including hospitality, retail, healthcare and education.
Emaar already has 105,000 square metres of retail space in Dubai and it is planning an additional gross leasable area (GLA) of 360,000 square metres.
"By 2012, we'll be expanding our retail to the international market. We'll have 1.3 million square metres of GLA by 2012, internationally," Amiri said.
Over the next four years alone, Emaar has development projects worth Dh39 billion.
Big deals
These projects include the joint venture with Bawadi to develop Emaar Bawadi, a 70 million square foot Asmaran project in Dubailand, which will boost Emaar's dwindling landbank at home.
Emaar has eight projects under way in India with a landbank of 13,024 acres. There is also $4.5 billion worth of development going on in Egypt across four projects and $400 million worth of development in Turkey over 73,571 square metres of land.
Emaar is also developing in Saudi Arabia, including the Dh100 billion King Abdullah Economic City.
"It will make the Saudi economy more robust. This city resembles a new era for Saudi Arabia.
"We've had an overwhelming response in Saudi Arabia because there is a gap of about one million units of requirement," Amiri said.
"Emaar is the one that created, with the support of His Highness [Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai] and the government, the freehold market in Dubai," Adel Lootah, executive director of DPG, said at the meeting.
By Suzanne Fenton
Gulf News 2008. All rights reserved.
