Local property sales in the first six months of 2008 have boosted Emaar Properties’ profits, despite market challenges of rising costs and reduced consumer spending. “Globally, the first-half of 2008 was marked by recessionary trends and mounting inflation,” said Mohammed Ali Alabbar, chairman of Emaar Properties.
“For a property developer of Emaar’s geographic outreach, this period also meant greater exposure to the market challenges of rising prices and reduced consumer spending,” Mr Alabbar said. “However, Emaar’s results for the six months prove the robustness of our long-term strategic Vision 2010 to focus our growth efforts in the emerging markets of the region and Asia.”
Profits strengthened off the back of sales of commercial and residential projects launched in the UAE in the last six months. New projects include Burj Dubai, Stand Point, Burj Place and The Mansion – all at Emaar’s Downtown Burj Dubai development – and Asmaran, a mixed-used project at Bawadi in Dubailand.
The company’s projects abroad have also yielded strong domestic sales as well as attracted international investors, said Mr Alabbar. Last month, Emaar said that it expected between 60 and 70 per cent of its revenues to be generated from overseas projects by 2010. The company is ploughing Dh367 billion into international property ventures, with its largest target markets being India, Saudi Arabia, Morocco, Turkey and Syria, where projects were launched for sale in the first half of this year.
Earlier this year, Emaar also ventured into China with the signing of a memorandum of understanding with Shanghai China-News Enterprise Development, a company owned by the Chinese government, with the aim of working together on development projects in key cities in the country. Emaar also opened an office in Indonesia and signed a joint venture with Bali Tourism Development Corporation for the Lombok Island project.
“Emaar has consolidated its reputation in all its key markets of bringing in a new lifestyle choice for residents,” said Mr Alabbar.“However, more importantly, we have proved ourselves as a partner in the progress of the 36 active markets where we are based, by creating job opportunities, strengthening the growth of ancillary industries and bringing in a new dynamic to the property sector. This will continue to be our legacy,” he added.
Angela Giuffrida, The National (UAE) July 17, 2008