Emaar denies tallest tower deal with Kingdom Holding

DEAL DENIED: Dubai developer Emaar denies it has sealed a deal with Saudi's Kingdom Holding to develop major project in Saudi, including the building of the world's tallest tower. (Getty Images)

Dubai developer Emaar Properties denied on Sunday that it was in a deal with Saudi Arabia's Kingdom Holding to supervise and develop a large project that will feature the world's tallest tower.

Emaar shares surged 7.18 percent a day after Kingdom Holding said it had appointed Emaar for the project, with a total investment of at least 100 billion riyals ($26.7 billion).

"Emaar ... will not invest in any projects of this sort," it said in a statement emailed to Reuters.

Emaar said it has signed a deal with a firm it identified in the Arabic-language statement as Jeddah Economic Company, adding that according to the agreement it "would only offer management services for a real estate project against a fee".

An Emaar spokeswoman did not have any immediate comment.

Kingdom Holding, owned by billionaire Prince Alwaleed bin Talal, said on Saturday in an emailed statement that Emaar would be in charge of developing and supervising the construction of the Kingdom Tower.

Emaar is currently constructing the world's tallest tower, Burj Dubai, in the emirate. (Reuters)

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READERS' COMMENTS

CORRECTION
Posted by anonymous on Monday 15 June 2009 at 01:01 UAE time


The way Reuters interpreted the statement, Emaar WILL develop and supervise construction of the project by Kingdom Holding. Emaar is simply clarifying that they are not investing in the project (as would be the case in Emaar projects in Dubai, which they own as landlords), but are developing for a fee, as a service provider. Check Reuters and correct this article before the stock market reacts to this mistake.

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