Emaar fights the financial crunch

Emaar Properties plans to maximise productivity this year in order to soften the blow of the negative impact of the financial crisis.

The company recorded a loss of US $481.9 million (AED1.77 billion) in the fourth quarter of 2008, as write-downs on its US assets dragged the company into the red.

Emaar gained a profit of $1.5 billion in 2008, but this figure is 15% lower than its net operating profits of $1.8 billion in 2007. Despite this, the property developer plans to complete all its projects currently under construction.

"The primary focus of Emaar in the last quarter of the year was to face up to the new economic realities and identify innovative strategies to sustain businesses in an unprecedented downturn," said Mohamed Alabbar, chairman.

"We have placed emphasis on optimising resource use efficiency, and will continue to build on our strategy of business segmentation and geographic expansion," he said.

Alabbar added: "Revisiting the project pipeline is a natural response to the new economic realities. We have also been negotiating with our partners to rationalize thae project cost benefiting our shareholders and customers."

Alabbar said that government plans to increase public spending and develop Dubai's infrastructure would help Emaar increase profits and boost the flagging property sector.

The company marked last year with several milestones in its growth including the opening of the Dubai Mall, one of the world's largest shopping and entertainment destinations. This year, Emaar will open two hotels - The Address, Dubai Mall and The Address, Dubai Marina.

The company is also progressing with the construction of Burj Dubai, the world's tallest building.

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