By Anil Bhoyrul
Chairman of property giant says he may invest in Zimbabwe through mining venture
Mohamed Alabbar, the chairman of Dubai real estate developer Emaar, plans to create a mining company that could be worth $10bn in three years.
In an interview to be published on Sunday in Arabian Business magazine, Alabbar said he is now spending 20 percent of his time focusing on the new venture, a private operation separate from Emaar.
“I am telling you if I don’t take this six, seven times up easily it’s a waste of time. I would say give me three years to create a $10bn company,” he said. “I’m very determined about that…..We can go much higher.
"We work seven days a week day and night, that’s the only way we do business. Because that’s the only way to create anything. That’s me. I’m passionate about what I do and I go all the way.”
The company, African Middle East Resources (AMER), is a 50:50 joint venture between Alabbar and Malaysian businessman Tan Sri Syed Mokhtar Al-Bukhary.
The pair also teamed up to launch Gulf International Investment Group, which last week signed a $1.6bn deal to develop an aluminium smelting plant in Sarawak, Malaysia.
AMER has begun operations in Guinea-Conakry, Madagascar, Uganda, Niger, Gabon, Ghana, Congo and Equatorial Guinea. The company is carrying out exploration work for a number of commodities, including coal, copper, oil and gas, and gold.
Alabbar also revealed he is considering investing in Zimbabwe, despite the country’s ongoing political turmoil.
“I might invest (in Zimbabwe) under the current conditions, I might. You can wait till everything is fine and then be behind the queue. I don’t want to do that,” he said.
The Emirati businessman said he began focusing on the mining industry immediately after the launch of Emaar’s flagship project, the Burj Khalifa, in Dubai last year.
“The Burj was over. I was thinking where to go, what to do next? Yes we got there, but we’re human beings, so when we get there we say ‘So what are we going to do after this? Are you going to crawl back in a little hole?’ I can tell you this; that’s not me,” he said.For all the latest industry news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
way to go!
Alabbar is an inspiration
I am sure this is good news for Mohamed Alabbar, but it sounds like he sees no great future for Emaar and therefore for the shareholders.
interesting point .. , just a comments any joint venture is still emaar; i think you mean the initial Biz of real estate which we all know is sleeping for a couple of years at least.
Maybe on 6/27/2005 when the price was 41.43. Today at 3.24, I wouldn't use that word.
If it is a profitable venture, then no IPO will ever see the light of day.
Mining in Africa is high-risk high-return venture. Most of the companies operating in Africa are making money due to lack of transparent sale of resources and lack of stringent transfer pricing regulations. All the mining companies are exploiting the loopholes of the systems. In addition companies operating in Africa are known to be least bothered about Environment regulations and human labour. Hope Mohamed Alabbarâ€™s venture AMER sets records straight while building a fortune for the company.
Naveen, with all due respect i do not agree to your assertions about Africa. Writing such a blanket comment about the whole continent is not fair to Africa to say the least, as the adage goes...''those who live in glass houses should not throw stones'' - i cant tell where you are from, my guess is what you accuse Africa of could be happening in your backyard!!
Bravo to Alabbar - he moves with the times, real estate is dead, time to hunt minerals.
Ramez, the mining business he is talking about is nothing to do with Emaar and therefore for the benefit of Emaar shareholders. The funding is coming from another source, his private capital I guess.