Emaar Properties yesterday broke ground on its $500 million (Dh1.84bn) project in Syria and said it is collaborating with a government-entity to float a new company in that country.
Emaar Properties yesterday signed a Memorandum of Understanding (MoU) with the Syrian General Organisation for Housing to float a new company that will initiate several socio-economic developmental projects in the country.
The initiative was formalised on the sidelines of the SyrianEmarati Economic Forum currently being held in Damascus.
At a ceremony attended by the Syrian Prime Minister, Muhammad Naji Al Otri, and Deputy Prime Minister for Economic Affairs, Abdullah Dardari, Emaar Chairman Mohamed Ali Alabbar and Syrian General Organisation for Housing Chairman and Director-General Omar Ghalaounji signed the MoU, which will be finalised in six months.
The incorporation rules for the new company and equity participation of Emaar and the Syrian General Organisation for Housing will be decided soon, the company said.
Representation to the board of directors will be commensurate with the equity held.
Initially, the new company will roll out, in phases, affordable housing units at different locations across the country, targeting the middle-income segment.
Several other socio-economic development projects, are being planned.The location of the new housing units will be finalised after the masterplan and reclamation proposals are approved by the Syrian Government.
Other development projects will be initiated after elaborate social surveys and other infrastructure assessment.
"Emaar's new initiative in Syria is important from a socioeconomic perspective," said Chairman Mohamed Ali Alabbar. While we have already announced multi-million dollar real estate developments in Syria, this MoU offers Emaar the opportunity to serve a cross-section of the community by delivering affordable housing solutions and other support." He said that Syria is an emerging market with a huge potential for growth.
Emaar is expanding operations in the Middle East, North Africa and Asia as its home market becomes saturated, seeking to profit from expanding populations and economic growth.
Syria's population of 18.8 million will grow by 2.3 per cent this year, according to the US government data.
Syria is a middle-income developing country currently embarking on an incremental economic reform.
Property laws have been revisited and new development strategies are being formulated across the board.
The Syrian Prime Minister had recently said that the government was paying attention to developing the local housing sector in the country.
Emaar Properties has pledged to become one of the world's most valuable companies.
Emaar Properties has commenced work on its $500 million Eighth Gate project in Syria. The project is a mixed-use development in Yafour, minutes from the Damascus city centre.
A joint venture between Emaar Properties and IGO, an offshore investment and property development company, the Eighth Gate will be similar to Emar's master development plans in Dubai, the company stated.
"Syria has great potential for future development and is a remarkable location for Emaar to develop high quality real estate projects on an international scale," said Majid Saif Al Ghurair, the Emaar board director.
"The Eighth Gate is our first project in Syria and we are pooling in all our capabilities as well as tapping local and international talent to make it the best start." The Eighth Gate project builds upon the ancient history of Damascus in its architectural style of ornately decorated buildings influenced by traditional Islamic design. A signature tall gate marks the access to the main plaza.
The city walls of Damascus have had seven gates as access points.
By Emirates Todat Staff
© Emirates Today 2006
