By Staff writer
Property giant's AGM approves $292m dividend to shareholders; approves plan to reduce number of board members
developer Emaar Properties has re-elected Mohamed Alabbar as chairman, despite
claims from unnamed investors that his business activities at other developers
outside the UAE constitute a conflict of interest.
At an annual general meeting on Wednesday, shareholders also approved a plan to reduce the number of board members from 11 to 10 and to pay a cash dividend of 15 percent, equivalent to more than AED1.074bn ($292m).
There had been suggestion some board members were unhappy with Alabbar’s increasing commitments outside the company, suggesting they were a distraction.
In an interview with Arabian Business last week, Alabbar denied his outside work harmed Emaar and argued the issue only had been raised because his other projects, such as in Serbia and Egypt, were now more high profile.
“But there is nothing wrong or unusual for a chairman to have other non-executive roles in other companies. Everything I have ever done has always been cleared by the board and within the law,” he told Arabian Business.
Shareholders also re-elected board members Ahmad Al Matrooshi, Hussain Ahmad Dhaen Alqemzi, Ahmed Jamal Hassan Jawa, Abdul Rahman Hareb Rashed Al Hareb, Marwan Iqbal Mohammad Abdullah Abedin, Jamal Hamed Thani Butti AlMarri, Jamal Majed Bin Thaniyeh, Arif Obaid Saeed Aldehail and Abdulla Saeed Balyoahah.
Following the annual general meeting, Alabbar said the company’s 2014 profit of AED3.293bn ($897m) surpassed estimates of AED3.067bn. It also was higher than the AED2.57bn recorded in 2013.
Emaar was focused on two joint venture mega-developments in Dubai, together valued at more than AED200bn, he said.
“Developing real estate assets in Dubai and other international markets will continue to be our core strategy,” Alabbar said.
“With over 235 million sqm of land bank and extremely strong financial fundamentals, we have the resources to build for decades to come.”
Alabbar added that Emaar will develop path-breaking projects in Dubai that reflect real market needs.
“The property market is balancing out and we have a brand-new demand profile from end-user home-owners. We will develop quality projects for the new generation of entrepreneurs and professionals, and support it with timely deliver and efficient after-sales service,” he said.
Separately, Emaar Properties has forecast a 2015 net profit of AEd3.695bn ($1.01bn), according to a presentation at the AGM.
This is higher than the AED3.366bn average forecast for net profit this year by eight analysts, according to Thomson Reuters Eikon.
Congratulation Mr. Mohamed Alabbar! Despite considerable criticism due to your manifold obligations around the globe, you always maintained the general overview for the benefit of your stakeholders . Emaar shows the way forward.