Emaar to double its capital to Dh5.6b
DUBAI — Emaar Properties, Dubai's leading real estate developer, announced a 1:1 rights issue to increase the capital of the company to AED 5.6 billion, from AED 2.8 billion, following a board meeting yesterday.
At the same time it opted to more than double to 49 per cent from 20 per cent the stake in the company open to foreign ownership.
With the support of Shaikh Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Defence Minister, the board of directors approved the increase in the company's share capital. The move has ensured that Emaar will become the No1 real estate company in the world in terms of market capitalisation.
"The issue reflects the company's determination to expand locally and internationally. The increase in capital will allow it to aggressively pursue its expansion plans and enhance returns to shareholders," said Mohamed Ali Alabbar, Chairman of Emaar.
The decision to increase the share of the company open to foreign ownership will take Emaar to a new level among the ranks of global corporations.
The board recommended that the measures should be approved by an extraordinary general meeting of shareholders and should thereafter take the necessary steps and procedures to obtain Government statutory approvals from the relevant authorities.
Emaar Properties is a Public Joint Stock Company listed on the Dubai Financial Market with an asset base of US$7.7 billion including the land bank. In 2004 Emaar was included in the Dow Jones Dubai International Financial Centre Arabia Titans Index. The company has witnessed tremendous growth since its inception in 1997 and boasts a rapidly growing tenant base. Currently, it has several major real estate projects under various stages of development in Dubai including Arabian Ranches, Dubai Marina, Emirates Hills, The Views, The Meadows, The Springs, The Lakes, The Greens and Emaar Towers. The company also owns and manages the Gold and Diamond Park. Emaar has started construction on its most ambitious project to date, the Burj Dubai Development, which comprises The Burj Dubai, The Dubai Mall, The Boulevard, The Old Town, The Residences, man-made lakes and landscaped parks and gardens.
The company also has joint ventures and projects across the region covering Saudi Arabia, Egypt, Jordan, Libya, Morocco, India and Pakistan.While continuing to actively pursue expansion in its core business of innovative, high quality real estate development, Emaar has diversified into related business lines to further build value for its 41,000 shareholders, which includes the Government of Dubai. Emaar owns and manages two subsidiaries - Dubai Bank, focused on retail and commercial banking and EMRILL, a joint venture with the UK-based Carillion, which provides innovative property and facilities management services. Emaar is also the majority shareholder in Amlak Finance, UAE's first mortgage finance company.
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