UAE developer to delay IPO

MARKET CONDITIONS: Al-Banaa has three projects in Abu Dhabi (pictured), Dubai and Fujairah. (Getty Images)

Al-Benaa, a two-year-old real estate development and management firm, said on Sunday it is reviewing projects and will delay its planned initial public offering (IPO) due to poor market conditions.

The firm, which has joint venture deals with two Singapore-based companies, had launched three projects in the United Arab Emirates and had planned to boost its capital via an IPO next year, its chief executive officer said.

"We are reviewing our projects due to the market crisis impact. Construction costs are going down and there are some other issues, so we need to look at all aspects now," Noura Jasem Al-Nowais told reporters.

Financial markets have tumbled around the world, including in the Gulf, amid a credit squeeze that has seen interbank lending dry up and investor sentiment sour while fears of a global recession have grown.

"We were looking to increase our capital through an IPO but it is not the right time now," she added.

Set up in 2006 with a capital of 100 million dirhams, Al-Benaa has three real estate projects in Abu Dhabi, Dubai and Fujairah, Al-Nowais said, declining to state investment outlays or details of the IPO.

The company had inked joint venture agreements with SEF Singapore and the Far East Organisation of Singapore for real estate and facilities management.

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