By David Ingham
The UAE-based real estate developer proposes an annual share dividend of 10% and predicts robust growth in 2003.
Emaar Properties PJSC, best known for its real estate activities, posted net profits of Dhs517 million for the year ended December 31, 2002, well up on Dhs342 million for 2001. The company’s board has proposed a 10% dividend of Dhs1 per share, which will be put to the vote at a shareholders’ meeting on February 24.“The company’s strong showing marks remarkable growth during 2002 over the similar accounting period last year, with the annual revenue growing 63% to reach Dhs1.334 billion,” said Mohamed Ali Alabbar, chairman of Emaar. “Net profits recorded 51% growth.”The Government of Dubai is the largest shareholder in Emaar, which has made its name by offering real estate for sale to expatriates. The company now has a total of 41,000 shareholders, a majority of whom are UAE nationals, and is listed on the Dubai Financial Market.The company has eight real estate projects currently under development and is pursuing a diversification strategy that has seen it launch subsidiaries such as Dubai Bank; Amlak Finance, a mortgage finance company; Sahm Technologies, an IT services company; and EMRILL, a facilities management joint venture with UK-based Carillion.According what the company calls ‘valuations by independent authorities’, the market value of land donated to EMAAR is Dhs14.545 billion and the total value of the assets of the company is Dhs21.183 billion.Al Abbar predicted net profit growth of around 25% in 2003. “The real estate market in Dubai is on a high growth curve, driven by huge customer demand. During 2002 we launched several high profile residential developments, including The Meadows and The Springs, two luxurious villa developments beside the Emirates Hills and The Greens apartment project overlooking Emirates Golf Club,” he said.“At the end of the year, the company also launched the exclusive Arabian Ranches residential villa development. All of these new projects have met with an overwhelming response from UAE national and expatriate investors.”