Emaar Middle East will build mixed-use developments across the region
Dubai, November 30, 2004: Emaar Properties and Al Oula of Saudi Arabia today announced the setting up of a new company which will build a wide range of mixed use developments in the Kingdom and other GCC countries.
The joint venture agreement to set up Emaar Middle East was signed by Emaar chairman Mohamed Ali Alabbar and Sulaiman Al Muhaidib, Chairman of Al Oula.
This new company will invest in various instruments and develop master planned communities in strategic countries in the Gulf Cooperation Council countries and the Middle East region.
Alabbar said: "Al Oula has made significant strides in the real estate business and Emaar Properties is glad to welcome them as partners in this new venture. Emaar Middle East will invest in viable real estate development options in this region while bringing value to our clients, partners and shareholders. Real estate markets are evolving across the Middle East and Saudi Arabia in particular. We love these evolutions because they challenge us to greater heights."
"We have already identified our key potential areas and hope to capitalise on the opportunities to develop high quality lifestyle projects in the Kingdom and other Gulf states.
Al Muhaidib said: "As part of Al Oula's continuing success, this agreement will provide resources and momentum to create many more top quality developments in Saudi Arabia and other GCC states on scales and quality similar to what Emaar Properties has delivered in Dubai. We have also developed quality projects across the Kingdom."
Mansour Al Othaimin, Executive Director, Emaar International Development, said the establishment of this new company is necessary to sustain real estate growth in the region.
"Emaar Middle East will greatly assist the growth of the real estate sector across the region and I'm sure will provide more lifestyle opportunities to investors," he said.
Ayedh Al Gahtani, Managing Director, Al Oula commented:"Emaar Middle East has the potential to break new ground in real estate development in the region. We are glad to be part of this new company."
The joint venture between Emaar and Al Oula comes close on the heels of the property major presenting resounding third fiscal quarter results in which the Dubai-based property major set records for both revenue and income. Emaar is also creating records at the Dubai Financial Market (DFM). As of November 27, Emaar's PE ratio now stands at 20 crossing the market average of 19.2.
Emaar, which is the only UAE listed company to be featured on the Dow Jones Arabia Titans Index, reported an impressive AED 1,039 million in profits for the period ended 30 September 2004, compared to AED 503 million in the same period a year ago, or a growth of 107%. In annualized terms, this equates to an earnings per share of AED 0.523 (2003: AED 0.270 per share). Revenues grew 59% to AED 3,808 million during this period from AED 2,392 million for the same period.
-Ends-
Note to Editor:
About Emaar Properties PJSC
Emaar Properties is a Public Joint Stock Company listed on the Dubai Financial Market. With an asset base of US$7.7 billion including the land bank, the Company's vision is 'Shaping the Future. Today' and focuses on innovation, meticulous planning and the pursuit of excellence. The Company has witnessed tremendous growth since its inception in 1997 and boasts a rapidly growing tenant base. Currently, it has several major real estate projects under various stages of development including Dubai Marina, Arabian Ranches, Emirates Hills, The Views, The Meadows, The Springs, The Lakes, Hattan Homes, The Greens, Emaar Towers and The Residences at Burj Dubai. The company also owns and manages the Gold and Diamond Park. Emaar has started construction on its most ambitious project to date, the Burj Dubai Development, which comprises The Burj Dubai, The Dubai Mall, The Boulevard, The Old Town, man-made lakes, landscaped parks, etc. Emaar was recently selected for inclusion in the newly created Dow Jones Dubai International Financial Centre Arabia Titans Index. Emaar currently represents 5.7% of this index, which comprises 50 blue-chip companies located throughout the region.
While Emaar continues to actively pursue expansion in its core business of innovative, high quality real estate development, it has diversified into related business lines to further build value for its 41,000 shareholders. In line with this corporate belief, Emaar also owns and manages three subsidiaries - Dubai Bank, focused on retail and commercial banking, EMRILL, a joint venture with the UK-based Carillion which provides innovative property and facilities management services, and its technology and communications company, Sahm Technologies. Emaar is also the majority single shareholder in Amlak Finance, UAE's first mortgage finance company.
About Al Oula
Al-Oula based in Al-Khobar - Eastern region of Saudi Arabia - has established an innovative concept in real estate and housing projects, in addition to creating a novel model for newly executed Saudi Real estate companies. Diversification in investment continue to be one of the most prominent strategies on which the company relies. The company provides various services that include Real Estate Investment Trust, Third party Real Estate Marketing (Middle East Region), Real Estate Assessment and Evaluation, Infrastructure and Land Development (Electricity, water, telephone, sewage, roads and landscaping ), Special Real Estate studies, Research and Consultancy, Tourism Investment Projects, Mortgage and Financial Services, Property and Project Management. Among the main projects are Al Oula Towers, Al Thuraya, Oula Al Shatee, Al Zumurd, Al Diyar, Ajyaal, Souq Al Oula and new projects (Jeddah Land).
For further information, please contact:
David D'Souza/ Lina Anani
ASDA'A Public Relations
Exclusive Affiliate of Edelman PR Worldwide in
Middle East and North Africa
Dubai,
UAE
Tel: +971-4-3355969,
Fax: +971-4-3356080
E-Mail: info@asdaa.com
Emaar Properties
David D'Souza
Tel: +971-4-367-3566
Fax: +971-4-367-3705
E-Mail: davidd@emaar.ae
© Press Release 2004
