Emaar to pay 10pc dividend, plans new projects
Dubai, April 23, 2012
Emaar Properties, builder of the world's tallest tower Burj Khalifa, will pay a 10 per cent cash dividend for 2011 and said it would strengthen its market leadership in Dubai by launching new projects this year.
Shareholders, at its annula general meeting today, also approved a new board with seven new members.
Emaar chairman Mohamed Alabbar said Emaar, which is about 30-percent owned by Dubai's sovereign investment vehicle, would focus on boosting revenues from its global operations next year and enhancing profit from recurring revenues.
The developer has been gradually shifting its focus away from Dubai realty, hard hit in the emirate's 2008 property collapse, in favour of its retail, hospitality and leisure business. It owns the Dubai Mall, billed as the world's largest, and operates the Armani-branded hotels.
The United Arab Emirates' biggest developer by market value had net profit of Dh1.8 billion in 2011, down 27 percent from the previous year.
Addressing the shareholders, Alabbar, said: “The positive economic impact of our trophy assets, such as Burj Khalifa, The Dubai Mall and The Address hotels within Downtown Dubai makes us a catalyst for the economic growth of the city. Having underlined our credentials in superior developments and ensuring best-in-class customer service, we will strengthen our market leadership in Dubai by launching new projects in the city this year.”
With total assets of more than Dh60 billion ($16.35 billion), investment properties and fixed assets of Dh16.4 billion ($4.47 billion) and development property valued at Dh26.2 billion ($7.14 billion), Emaar highlighted its robust fundamentals in 2011. Last year, Emaar recorded a net operating profit of Dh2.058 billion ($560 million) and annual revenues of Dh8.112 billion ($2.209 billion).
The shopping malls, retail and hospitality businesses of Emaar contributed Dh3.36 billion to annual revenues, representing 41 per cent of the company’s annual revenue for 2011. In addition, the contribution of international operations to 2011 annual revenue almost doubled to Dh1.81 billion ($493 million), compared with Dh973 million in 2010.
The Dubai Mall, the flagship development of Emaar, hosted record visitor arrivals of 54 million in 2011, and is billed as the world’s most visited shopping and leisure destination.
Emaar is focused on strengthening its competencies in developing prime real estate assets in the Middle East and North Africa region and the Indian Subcontinent as well as its successful shopping malls and retail and hospitality and leisure businesses, and expanding to key markets globally, he said.
Members of the new board of directors are: Mohamed Alabbar; Hussain Ahmad Dhaen Alqemzi; Ahmed Jamal Jawa; Ahmad Thani Rashed Al Matrooshi; Abdulla Mohammed Saeed Al Ghobash; Jamal Majed Bin Thaniyeh; Arif Obaid Saeed Aldehail; Abdul Rahman Hareb Rashed Al Hareb; Fadhel Abdulbaqi Abulhasan Alali; Marwan Abedin; and Abdulla Saeed Balyoahah. - Reuters and TradeArabia News Service