Indonesian President Dr Susilo Bambang Yudhoyono oversees agreement signing

AED 2.2 billion (US$600 million; IDR5446 billion) mixed-use development

Focus on boosting tourism to Lombok Island and create a 'new Bali'

Dubai, United Arab Emirates; March 19, 2008: The Bali Tourism Development Corporation (BTDC), a key partner assisting the Indonesian government in infrastructure building, has signed a joint venture with Emaar Properties PJSC, one of the world's leading property developers, to undertake the Lombok mega-tourism and mixed-use project.

In the presence of Indonesian President Dr Susilo Bambang Yudhoyono, Mr I Made Mandra, President Director, BTDC, and Mr Muhammad Lutfi, Chief, Investment Coordinating Board, signed the joint venture agreement with Mr Mohamed Ali Alabbar, Chairman, Emaar Properties, in Dubai, today.  

The flagship Lombok project is envisaged as a world-class residential and resort community sprawling over 1,175 hectares. Masterplanning for the AED 2.2 billion (US$600 million; IDR5446 billion) development will begin in April. Set on the pristine Kuta and Tanjung beaches, the project will be environment-friendly and integrate residential, leisure and hospitality zones. The JV will also explore further growth opportunities in Indonesia.

Mr Mandra said: "The joint venture with Emaar Properties underscores the strong bilateral business relations between Indonesia and the UAE. Indonesia welcomes investments that add to the socio-economic prosperity of our people, and Emaar with its proven competencies as a world-class developer, can contribute to the country's economic growth. The Lombok project will particularly focus on tourism to complement the growing appeal of the destination."

Mr Alabbar said: "Bali Tourism Development Corporation has been one of the prime drivers of the Indonesian economy, and has accomplished several milestone projects with a focus on infrastructure building. The joint venture lends momentum to our expansion plans for Indonesia, a key market where we have already been involved in developing eco-friendly homes in Ngelepen to rehabilitate the earthquake affected."

Emaar is one of the first developers from the Middle East and North Africa region to expand into Indonesia, an emerging market with strong growth potential, especially in the tourism sector. Last year, Emaar signed the Memorandum of Understanding (MoU) with Perusahaan Pengelola Aset (PPA), the state-owned Asset Management Company, for developing the Lombok project.

The focus of the project will be to drive tourism to the region by offering a diverse leisure spread such as diving, snorkeling, hiking and surfing sports, for which Lombok is acclaimed globally. There will be a 7 km natural waterfront supporting a marina, luxury residences, golf course and resorts to be operated by five-star hospitality chains.

Established in 1973, BTDC supports the Indonesian government in economic and national development, with emphasis on strengthening foreign investment and creating job opportunities. BTDC has been instrumental in the inception of some of Indonesia's renowned development projects including hotels, resorts and shopping complexes.

Emaar's expansion to Indonesia is in line with its Vision 2010 to become one of the most valuable companies in the world through geographic expansion and business segmentation. Emaar has a growing presence in Asia, and has already opened its first Emaar - Raffles International School in Singapore.

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About Emaar Properties PJSC:
Emaar Properties PJSC is one of the world's largest real estate companies and is rapidly evolving to become a global provider of premier lifestyles. Powered by its Vision 2010 to become one of the most valuable companies in the world, Emaar is charting a new course of growth with a two-pronged strategy of geographical expansion and business segmentation.

Emaar has highlighted its remarkable global growth by debuting on the Financial Times Global 500 ranking, which provides an annual snapshot of the world's largest companies. Emaar has been assigned A- and A3 ratings with stable outlook by Standard & Poor's and Moody's Investor Services, respectively.

Replicating its successful business model in Dubai, Emaar is extending its expertise in creating master-planned communities to international markets. Emaar is also developing new competencies in malls, hospitality & leisure, education, healthcare and finance, which have evolved from its integrated approach to customer service and property development.

Listed on the Dubai Financial Market, part of the Dow Jones Arabia Titans Index and certified to ISO9001:2000 for quality standards, Emaar is developing Burj Dubai, the world's tallest building and free-standing structure, and The Dubai Mall, one of the world's largest shopping and entertainment destinations. In Saudi Arabia, Emaar is developing the US$26.6 billion King Abdullah Economic City, the region's largest private sector-led project. Emaar's portfolio currently covers the following countries: the UAE, Saudi Arabia, Jordan, Syria, Lebanon, Morocco, Egypt, Turkey, Libya, Algeria, India, Pakistan, Indonesia, the US, the UK, France and Canada.

An award-winning developer, Emaar has strengthened its product sale competencies, market reach and best practices through strategic acquisitions and joint ventures. Emaar acquired John Laing Homes, America's second largest privately held home builder; Hamptons International, UK's premier realtor; and formed a joint venture with US-based Turner International to strengthen execution capabilities.

Emaar has joined hands with Giorgio Armani and Accor Hotels to strengthen its presence in hospitality, and will launch ten luxury Armani Hotels & Resorts world-wide and 100 Formule 1 budget hotels in India. The company is opening educational institutions and healthcare centres in South Asia, Middle East and North Africa and the Subcontinent. Emaar acquired Singapore-based leading education provider, Raffles Campus, to extend expertise to its educational institutions.

Emaar holds 30 per cent equity in Dubai Bank, focused on retail and commercial banking. Emaar is also the largest shareholder in Amlak Finance, UAE's leading Islamic home financing company. For more information, visit www.emaar.com.

For further information, please contact:
Kelly Home / Nivine William
ASDA'A Public Relations                                
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Tel: (+971 4) 334 4550;
Fax: (+971 4) 3344 556  
E-mail: k.home@asdaa.com, n.william@asdaa.com

© Press Release 2008