Dubai's Emaar to Focus Abroad

Dubai's Emaar to Focus Abroad

Emaar Properties will pay a 10 percent cash dividend for 2011 and said on Monday it would look to its overseas business for a revenue boost next year. Shareholders also approved a new board with seven new members.

April 24, 2012 9:00 by kippreport

Chairman Mohammed Alabbar said Emaar had no plans to tap debt markets in 2012. The firm raised a $1 billion loan in December, backed by the mammoth Dubai Mall. When asked whether Emaar would raise any debt in 2012, he said: “No, I don’t think so; I don’t think we need it but if there’s a project then we’ll look at it,” said Alabbar, referring to sukuk, or Islamic bonds. Asked how the developer would raise money for future projects, he said: “We have to manage our balance sheet and our cash flow.”

When asked about plans for a merger, Alabbar said they “have no intention”. He added that Emaar, which is about 30 percent owned by Dubai’s sovereign investment vehicle, would focus on boosting revenues from its global operations next year and enhancing profit from recurring revenues.

The developer has been gradually shifting its focus away from Dubai realty in favor of its retail, hospitality and leisure business. It owns the Dubai Mall, billed as the world’s largest, and operates the Armani-branded hotels.

Emaar is expected to report its first-quarter earnings this week.

(Reporting by Praveen Menon; Editing by Amran Abocar and Firouz Sedarat)