By Joanne Bladd
UAE’s biggest developer had 30% stake in Islamic lender, worth around AED172m
Emaar, the UAE’s biggest developer by market value will write off its investment in Dubai Bank in the second quarter after Dubai’s government said it will take over the Islamic lender.
Emaar held a 30 percent stake in the bank with a value of approximately AED172m, or 0.3 percent of Emaar’s total assets, the developer said in a statement to the Dubai bourse Thursday.
Dubai Bank is wholly-owned by Dubai Banking Group which itself is 70 percent-owned by Dubai Holding.
“The value of this investment will be written off during second quarter 2011,” the company said.
Dubai's government took control of troubled Islamic lender Dubai Bank on Monday to prevent a collapse undermining the Gulf Arab state's banking sector.
Dubai, which is struggling to emerge from a debt crisis, said it will inject an unspecified amount of capital into the bank and its takeover would protect depositors' interests.
The builder of the world’s tallest tower said last week that revenue from apartment sales declined 81 percent in the first quarter and from villa sales 50 percent amid weak property demand.