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Americana IPO and its impact on UAE market

The Arabian Post Network — Thu, 11 Apr 2024 17:39:23 +0000

Americana Group’s Initial Public Offering (IPO) is poised to be a landmark event for the UAE stock market. The company, the largest quick-service restaurant operator in the Middle East, boasts a brand portfolio that includes regional favorites like KFC and Pizza Hut. This offering is expected to inject a significant amount of capital into the market, raising $1.8 billion according to reports. This influx will likely increase liquidity and trading activity, attracting a wider range of investors to the UAE exchange.

For Mohammed Alabbar, the billionaire who acquired Americana earlier, the IPO presents a golden exit strategy. Having overseen the company’s transformation, he can leverage the strong investor demand – the offering was reportedly oversubscribed by 58 times – to reap substantial financial rewards. Americana’s successful listing is likely to further solidify Alabbar’s reputation as a shrewd businessman and could potentially free up capital for his other ventures.

The combined effect – a revitalized stock market and a windfall for a prominent investor – could have a ripple effect across the UAE’s business landscape. The IPO’s success could inspire other regional companies to consider the UAE exchange for their own listings, fostering a more dynamic and competitive market. Additionally, Alabbar’s newfound resources could be channeled into new investments, potentially creating further economic opportunities.

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Noon Saudi roll out before year-end, says Alabbar

The Arabian Post Network — Tue, 24 Oct 2017 22:30:01 +0000

|By Arabian Post Staff|Emaar Chairman Mohamed Alabbar said that the new digital marketplace Noon, founded by him, will be rollled out in Saudi Arabia before the end of this year. He was addressing a media briefing with Faraz Khalid, Chief Executive Officer of Noon, on the sidelines of the Future Investment Initiative in Riyadh.

Headquartered in Riyadh, Noon is a joint venture with the Public Investment Fund and a group of prominent Gulf investors, with an initial capital outlay of $1 billion.

Alabbar said that Noon is a customer-focused Arabic-first digital marketplace ‘born in Saudi Arabia,’ for the region, by the region and in the region. “We are excited to launch operations in Saudi Arabia shortly. Noon delivers on the goals of Saudi Vision 2030 with an innovative digital enterprise that is underpinned by strong public-private sector partnerships and a focus on creating high quality jobs and business opportunities for young Saudis. It also supports the development of the Saudi small and medium enterprises, another objective of the national transformation plan announced by His Royal Highness Crown Prince Mohammed bin Salman.”

Faraz Khalid said that Noon brings two exceptional strengths to the Kingdom. “We share our data insights with Saudi retailers to help them expand their market reach and enhance the customer experience. Noon is investing in delivery infrastructure and technology to bring a world-class shopping experience to customers in Saudi Arabia.”

Noon will have a large assortment of products covering fashion, beauty, fitness, sports, technology, games and household, among other offerings. For millennials, Noon is showcasing an exciting collection of modern gadgets and electronic goods. Noon will also cater to the needs of book lovers, adventurers and new parents.

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High school fees ‘necessary to attract best teachers’

The Arabian Post Network — Fri, 05 May 2017 01:23:00 +0000

DUBAI// One of the country’s major education providers defended the high cost of school fees as necessary if schools are to attract the best teachers.

Clive Pierrepont, director of communications for education provider Taaleem, said schools had to strike a balance between paying for the highest quality teaching staff available and keeping fees affordable for parents.

“It is an absolute truth that the quality of a school never exceeds the quality of its teachers,” Mr Pierrepont said.

Schools in the UAE, he said, faced stiff competition from educational institutions around the world during a global shortage of talented teachers.

“We compete in a global market to recruit and retain the very best of them, with the right experience, a proven track record and specific skills,” he said.

“To employ the very top teaching talent we have to offer highly competitive rates of pay, plus benefits. About 70 per cent of our schools’ costs are usually allocated to staffing.

“There are only two realistic ways of cutting costs, firstly employing cheaper, less qualified and experienced teachers and secondly, increasing the number of students in each class.”

Mr Pierrepont’s comments came after Mohammed Alabbar, founder and chairman of Emaar, said on Wednesday that most parents could not afford the increasingly high school fees.

“Paying such high fees to private schools is sucking the life out of parents,” he said during a panel discussion on the Arab Youth Survey. “I don’t know if education should be private because some of the fees are so high.”

On average, costs increase by between 5 per cent and 10 per cent a year and although Taaleem schools try to absorb costs through efficiency and cost reviews, it is not always possible. Despite this, fees at its schools will not increase next year.

“Whilst being eligible to raise fees for next academic year, we [Taaleem] listen to our parents, many of whom have shared with us that they have recently found it difficult to make ends meet,” Mr Pierrepont said.

“As a direct result of their comments, and considering the current economic climate, we took the decision to announce back in November 2016, that we would not increase school fees next year.”

He said that parents at Taaleem schools had introduced the freeze as well as sibling discounts and a scholarship programme.

Fee increases are monitored by the Abu Dhabi Educational Council and the Knowledge and Human Development Authority in Dubai.

Schools rated as weak are not allowed to increase fees, while there is a gradual scale for those rated better.

Mr Pierrepont said it is important that parents have a choice of schools, at different price points, that give great value for money.

“The KHDA has done an excellent job of bringing new offerings to the market that provide a choice of location, curriculum and a variety of fee structures.”

In April members of the Federal National Council raised concerns that fee increases needed to be addressed more seriously.

“Parents should be made aware of which schools are rated weak and which are rated strong, so they will know they are receiving their money’s worth,” said Dubai member Azza bin Suleiman.

Education authorities at the time said they would examine the issue more closely.

nhanif@thenational.ae

The National

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Emaar Malls approves 10% cash dividend, equivalent to $354m

The Arabian Post Network — Wed, 19 Apr 2017 13:58:26 +0000

Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, on Tuesday approved a proposal to distribute 10 percent of it share capital, equivalent to AED1.301 billion ($354 million), as a cash dividend to shareholders.

Addressing shareholders, Mohamed Alabbar, chairman of Emaar Malls and Emaar Properties, said the success of Emaar Malls is led by the UAE’s robust growth and the vision of Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, to establish the nation as a smart hub for trade and commerce.

“We are driving our growth with our focus on delivering enhanced retail experiences for our customers. We are investing in new and advanced technologies that will create all-encompassing experiences for our customers and contributing to sustained value for our shareholders.”

He added: “We will strengthen our malls assets with the expansion of The Dubai Mall and the development of retail districts in Dubai Hills Estate and Dubai Creek Harbour, which are designed for the new generation of tech-savvy, trend-conscious customers.”

Emaar Malls recorded a net profit of AED1.874 billion and revenue of AED3.227 billion in 2016.

Its shopping malls – The Dubai Mall, Dubai Marina Mall, Souk Al Bahar, Gold & Diamond Park and the community shopping centres – welcomed 125 million visitors during the year, with gross leasable area (GLA) occupancy levels averaging at 96 percent.

With a GLA of about 6 million sq ft in Dubai, Emaar Malls is expanding The Dubai Mall’s Fashion Avenue by another 1 million sq ft built-up area.

New retail and leisure opportunities are also being created for retailers and customers with the Boulevard, Fountain Views and Zabeel expansions of The Dubai Mall.

Emaar Malls is also developing dedicated retail precincts in Dubai Creek Harbour and Dubai Hills Estate. Several community mall projects are also being planned to serve Emaar’s integrated lifestyle developments.

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Dubai's Emaar says to reopen fire-hit Address hotel by year-end

The Arabian Post Network — Wed, 15 Feb 2017 06:33:10 +0000

Dubai’s Emaar Properties intends to reopen its landmark Address Downtown hotel by the end of the year, some two years after the skyscraper was gutted by fire following an electrical fault, its chairman told Al-Arabiya TV on Tuesday.

Mohammed Alabbar was speaking after the developer reported a 56 percent rise in fourth-quarter net profits, boosted by higher revenue from property developments as well as the performance of its malls and hospitality businesses.

The developer, in which Dubai’s government owns a minority stake, made a net profit of AED1.61 billion ($438.4 million) in the three months to December 31, it said in a statement.

For the full-year 2016, net profit totalled AED5.233 billion, 28 percent higher than 2015, on revenue of AED15.540 billion, up 14 percent.

The company said recurring revenues from its shopping malls, hospitality, entertainment and leisure businesses for 2016 was AED5.976 billion, similar to 2015, despite the ongoing redevelopment at The Address Downtown Dubai, which was damaged in a fire on New Year’s Eve 2015.

Emaar added that international operations recorded revenue of AED2.665 billion, accounting for 17 percent of the total group revenue.

The developer handed over around 41,500 residential units, 33,947 of them in Dubai and has a land bank of 190 million sq m globally including 25 million sq m in the UAE, it said in the statement.

It added that investments in premium real estate contributed to robust property sales in Dubai during 2016 at AED14.4 billion, 41 percent higher than in 2015.

Mohamed Alabbar, chairman of Emaar Properties, said: “Emaar’s growth reflects the dynamism of the UAE, which has evolved as a global hub for business and leisure. As the nation sets new milestones in futuristic developments, Emaar will continue to invest in next-generation technology to deliver modern lifestyles that meet the lifestyle aspirations of our youth and future generations.”

* With Reuters

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The race is on for Careem in the Middle East

The Arabian Post Network — Fri, 27 Jan 2017 11:48:25 +0000

The landscape of public transport is changing across the world. Not long ago, the only option for people who did not have their own car was to queue for a paper ticket and squeeze into a sardine-can bus or train.

Today, the new normal is to download a ‘smart’ app and book a point-to-point ride for an ever-diminishing cost.

Ride-hailing apps such as Uber and Careem are increasingly forming partnerships with state taxi companies to expand their market share and provide more options for customers.

They claim their biggest source of competition lies not in public transport networks — such infrastructure is sparse anyway in Middle Eastern countries, the UAE is an anomaly — but in private car ownership and, of course, each other.

As technology advances, the race is on to see who can grow the fastest to attract the most passengers and the most investment to its platform. One of the frontrunners is Careem.

“There is a bit of a race because, in this type of industry, the scale you have in a particular city makes a difference,” admits co-founder Magnus Olsson in an exclusive interview with Arabian Business.

“Say I had 10,000 cars in Riyadh and someone else had 5,000, I would be able to provide a better ETA [estimated time of arrival] for the customer so they may prefer me.

“Because of the faster timing, the driver will be used more effectively, he’ll spend more of his time making money, and because of that I can reduce prices because the driver’s still making good money because he’s engaged on more trips. So yes, scale matters and we’re running fast.”

Careem says its mission is to make people’s lives simpler by providing convenient transport solutions.

The last statement is certainly true. Careem, which launched in Dubai in 2012 as a corporate chauffeur booking service without an app, claims to have grown its users by 1,000 times over the past three years, and says it is seeing monthly revenue growth of 25-30 percent.

Olsson claims the average cost per trip has reduced since Careem launched, as its fleet of drivers — or ‘captains’ — grows. Detailed financials are not publicly available as the company is private.

At present it claims to have 6 million users, 150,000 captains, and services in 52 cities across 11 countries in the Middle East, North Africa, Pakistan and Turkey. It is targeting a presence in between 70 and 80 cities in total by the end of 2017, and in December closed the first tranche of a $500m fundraising round to enable it to do so, with backing from Japanese e-commerce giant Rakuten and state-owned Saudi Telecom Co (STC). The latter bought a 10 percent stake for $100m, pushing Careem’s estimated valuation to $1bn at the end of 2016, and prompting speculation that Careem would head towards an initial public offering (IPO) in the short-to-medium term. This objective is confirmed by Olsson and co-founder, Mudassir Sheikha.

“We have a lot of investors that have joined us along the way and at some point they need to be able to get some returns from their investment. So the natural end game is to go public,” says Olsson.

For now, though, the company is in the “building” phase. “We ended last year having achieved the big milestone of becoming a ‘uni-camel’ [Olsson’s tongue-in-cheek phrase to describe a Gulf-based start-up unicorn] and we are basically saying now, where do we go from here and how can this funding help us grow?

“We have three main priorities. First, to expand into more countries and cities than we already are. Second, to create a truly awesome organisation that inspires people, and, in doing so, create 1 million jobs in the region by 2018.

“The third goal is to innovate more in our products and technology. We have committed $100m to research and development (R&D), operations particularly in Dubai, Pakistan and our technology centre in Berlin.”

Careem’s recent funding round will be used to help it expand its operations.

The ultimate aim is to become the region’s “biggest mover of people and things”, Olsson says, but there are no plans to expand into Europe, the US or elsewhere beyond the company’s defined boundaries of Morocco in the west, Pakistan in the east and Turkey in the north (Careem launched in Istanbul in December). “We feel our home is in the broader Middle East and we believe there’s still a lot of potential there,” he states.

“We are still in the building phase, working towards profitability by 2018, and there’s a lot of growth to be had,” adds Sheikha in a separate interview.

The founders — both ex-McKinsey and Co executives — have had a busy six months, not just with funding announcements but also the launch of Careem’s female-only service Ameera, plans to double Careem Kids, and a new deal with Dubai’s Roads and Transport Authority (RTA) under which passengers can book Dubai Taxi Corporation services via the Careem app. The company already has a similar agreement with Saudi Arabia’s transport regulator and claims that 60 percent of all of its captains are Saudi.

“The very cool thing that happened in Saudi is that alongside our partnership with the government, they implemented these new rules that allow any citizen with a spotless driving licence and their own car to work with Careem, even if it’s a second job,” says Olsson.

“This is super-fascinating because a year ago, we had almost no Saudi captains and today 60 percent of them are Saudi. Many are students or work in low-paid jobs and want to make more money, particularly in the current economic climate. Careem is actually enabling a whole new industry and creating jobs for local populations.”

The company says its sensitivity towards the nuances of Middle Eastern markets is a major factor in its growth and popularity. Says Olsson: “You don’t always have street names or proper addresses here; captains often don’t speak the passenger’s language; and credit card penetration is low compared to other regions, meaning we have to be able to process cash payments, which is harder than it sounds.”

Careem has sought to address such issues by setting up call centres to aid communication between drivers and passengers, a ‘bridge’ call system to ensure privacy for customers who do not wish to share their phone numbers, and a special location database to help drivers find their way. The company has also formed tie-ups with major regional businesses such as Emirates, Etisalat, Vodafone and STC, which enable customers to redeem surplus air miles and phone credit for travel with Careem.

“When we first launched we didn’t have an app, we were just an on-demand car service and we found the main thing people cared about was having a car show up, even if it’s at 4am, even it it’s in Dubai’s Jumeirah Village Circle — otherwise known as the ‘Bermuda Triangle’ [as it is notoriously difficult to navigate]; we know that if we could solve that problem we’d have a great product. So we keep focussing on those things.”

Careem has services in 29 cities in Saudi Arabia, its biggest market.

However, Careem faces competition from the world’s first ride-hailing app, Uber. While the US-based technology company has not been operating in the Middle East for as long as Careem, it has been quick to catch up when it comes to tapping into cultural differences and other local nuances. It has already launched a female-only service, cashless payment system and obtained operating licences from the RTA and other transport regulators in the Gulf.

Yet both Olsson and Sheikha insist rivalry with Uber or any other emerging player is a necessity for creating a stronger business. Says Sheikha: “Competition is a great thing. Careem would not be here if competition had not arrived in the Middle East when it did. Competition forces everyone to step up their game and be stronger.

“We believe our advantage is in being super-local in each of the markets in which we operate. We are more integrated into the ecosystem and overall believe Careem is a lot closer to the people of the region and the lives they live — look at the partners we have, and we are also working with the Saudi ministries of labour and health to create jobs and provide vaccination services to citizens.

“The challenge for us is to continue keeping up that lead because players like Uber are also becoming familiar with the market. But our understanding is much deeper and we are able to prioritise things faster than larger companies.”

Sheikha concedes there are niches Careem is not addressing that could provide a new player with a “decent sized business”, such as, school transport and inter-city transport — servicing commuters from Sharjah to Dubai, for example. “There are specific requirements for that use case, vis-à-vis price points and affordability, for which we are not providing a compelling proposition. Is it a huge opportunity, compared to what we are doing? Probably not.”

However, he reveals Careem plans to launch customised private hire services to “lock in regular customers and build loyalty”, and start to experiment with moving “goods and things” later this year. This service has yet to be defined, says Sheikha, who admits transporting food is a crowded space at present with UberEats and other initiatives, but that delivering parcels, keys and groceries are options the company will trial.

“Anything that moves, we could put it on the platform,” Olsson says, although he adds Careem has no plans to launch specialised services like Uber’s helicopter booking service, UberChopper. “There are no choppers on the horizon for us,” Olsson jokes.

Both founders agree the region is vastly “under-mobilised” and there is pent-up demand among people to move. This is evident in the collaborative approach being taken by the region’s public transport authorities. State-owned taxi companies are seeing the value in working with, not against, technology-based transport providers.

Dubai’s Roads and Traffic Authority (RTA) is said to be imposing a tax on ride-hailing apps. Careem said last week that it was adding a AED3 ($0.80) surcharge on each journey, with the tax to be passed onto the RTA. But the regulator moved to distance itself from the news.

The RTA said it was working with Uber on an exclusive, three-month study to devise a more economic pricing model, Uber told Arabian Business last week.

Careem says it conducts about 100 million trips everyday.

Meanwhile, in Qatar, the state-owned taxi company Mowasalat has boldly launched its own ride-hailing app, Karwa, despite both Uber and Careem already operating in the country. Chairman and CEO Jassim Saif Ahmed Al Sulaiti tells Arabian Business the app is growing on a monthly basis and plans to double the number of cars it puts on the roads by 2018. He says he sees no problematic rivalry with other apps, noting that public taxis are still cheaper in most instances than Uber or Careem. Meanwhile, Mowasalat is in discussions with advisors about a public listing on the Qatar Stock Exchange, Al Sulaiti adds, declining to provide further information.

Careem’s Olsson claims there is plenty of room for growth with or without competition from taxi firms or other rivals. “We estimate that all the apps together are serving less than 1 percent of trips happening in the region in some sort of motorised vehicle. We are barely scratching the surface.”

Careem’s main competitors are car owners, it argues. In Saudi Arabia, claims Olsson, more than 80 percent of customers did not use a taxi before Careem; they drove their own cars. “When you think about it, it’s completely insane. Why would you want to? The car is parked 95 percent of the time; you end up paying for maintenance, insurance, services, parking. It’s not as if we have multiple highways for every person — it’s a sharing infrastructure.

That is why, if you asked me two years ago what Careem is, I would have said a ride-hailing company. If you ask me today, I’d say we’re crowdsourcing public transport infrastructure.”

This facilitator model is a growing trend as companies seek to meet the needs of ownership-sceptical millennials. US-based private jet firm JetSmarter owns no planes and uses an app to sell its services, and Airbnb has given the hospitality industry a run for its money by enabling homeowners to rent out properties to holidaymakers. However, start-ups like Careem do not always have to ‘disrupt’ an established sector to succeed, says Olsson.

“Here in the Middle East, there is so much white space that it is about enabling something that wasn’t there before, not disrupting an existing service.”

With $250m of financing in the bank and “multiple” prospective investors expected to commit the second tranche before July, it seems the road is clear ahead for Careem.

Sheikha will not be drawn on who the likely investors are. What about Mohammed Alabbar — the Emaar chief leading the creation of what would be the region’s biggest e-commerce venture, Noon? Do the founders see any future for Careem within the stables of that sort of enterprise? Sheikha says: “We consider ourselves part of the e-commerce ecosystem in the region and we have a lot of respect for Alabbar and what he’s building. It’s a great addition, and we are open to collaborating [with him] in whatever shape or form it makes sense.”

So have specific talks with Alabbar been held? “I can’t really comment, but everyone is always talking to everyone. It’s a small ecosystem,” he says.

There are sure to be other companies circling Careem in due course. But it is early in its journey and must ensure continued growth and impeccable customer service to stay in the fast lane.

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Amazon backs out of Souq deal

The Arabian Post Network — Wed, 18 Jan 2017 17:48:42 +0000

| By Arabian Post Staff| Amazon.com Inc. and India’s Flipkart Online Services Pvt have walked away from talks to acquire Dubai-based Souq.com after disagreeing over price, Bloomberg reported quoting sources.

Souq is now seeking other potential investors and is negotiating with mall-operator Majid Al Futtaim, it further said.

Amazon reportedly entered talks with Souq.com last year in a deal that would have been worth about $1 billion. Souq.com was reportedly to have appointed Goldman Sachs Group Inc. to find buyers for a stake.

Souq.com became the highest valued Internet company in the Middle East after a $275 million founding round in February 2016, according to Standard Chartered Plc, which has invested in the ecommerce player. According to Bloomberg, the company sells more than 1.5 million products online to customers in countries including the United Arab Emirates, Egypt and Saudi Arabia.

The Middle East ecommerce scene received a big boost when Emaar Chairman Mohammed Alabbar announced the launch of Noon with an initial investment of US$1 billion. Alabbar, who is leading the venture with prominent GCC investors, described Noon as ‘nothing less. (with Bloomberg)

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Tough domestic market prompts Emaar to look overseas for growth

The Arabian Post Network — Wed, 07 Dec 2016 17:29:15 +0000

|By Arabian Post Staff| Continuing tough conditions in the Dubai real-estate market is prompting leading Dubai developer Emaar to look overseas for growth, chairman Mohammed Alabbar disclosed.

Despite the correction in the domestic market, the company is expecting to grow next year Alabbar said at the Bloomberg Markets Most Influential summit in Abu Dhabi. The growth markets are expected to be India and Egypt, which remains a good market for Emaar, he said.

The Emaar chairman pointed out that the next year will see a “rebalancing” between supply and demand.

Property consultant Cluttons has forecast continued decline in property values next year after dropping 7.4 percent on an annual basis at the end of the third quarter.

Alabbar said the company is “tightening its belt” next year. “It’s good to be realistic and get ready for a challenging year while pushing hard,” he said.

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Saudis add $27b to wealth fund

The Arabian Post Network — Thu, 01 Dec 2016 08:23:45 +0000

Saudi Arabia is boosting the firepower of its sovereign wealth fund to accelerate deal-making and lessen the country’s dependence on oil.

The Public Investment Fund is receiving a 100 billion-riyal ($27 billion) transfer from official reserves, according to a statement Wednesday on the SPA official news agency, increasing its existing assets by about 17 percent. The injection will help the fund diversify investments and revenues, it said.

The fund’s dealmaking has quickened this year as it seeks to increase the proportion of foreign investments to 50 percent by 2020 from 5 percent. It acquired a $3.5 billion stake in taxi-hailing app Uber Technologies Inc. in June and plans to put as much as $45 billion into a $100 billion global technology fund formed by Japan’s SoftBank Group Corp. Eventually, the kingdom wants the PIF, as it’s known, to become the world’s largest sovereign wealth fund.

“The government is aggressively pursuing its investment diversification plan,” John Sfakianakis, director of economic research at the Gulf Research Center, said by phone. “It also sends a powerful message that the local economy is seen as a tremendous opportunity and will boost private sector confidence after a series of government spending cuts.”

During the coming period, the PIF will focus on both domestic and international deals, including “expected high yield opportunities in the local market that support private sector investments and promote economic growth and local contents,” according to the statement.

The PIF, which is led by ex-Saudi Fransi Capital banker Yasir Alrumayyan and has assets of about 600 billion riyals, most recently said that it’s taking a 50 percent stake in Dubai-based businessman Mohamed Alabbar’s investment vehicle Adeptio. It’s also contributing $500 million to Alabbar’s plan to create e-commerce firm Noon.

Saudi Arabia’s plans also include transferring to the sovereign wealth fund the ownership of oil giant Saudi Arabian Oil Co. and proceeds from that company’s initial public offering. Once it takes ownership of the government’s stake in Saudi Aramco the PIF will become the world’s biggest sovereign fund with assets of over $2 trillion, according to Deputy Crown Prince Mohammed bin Salman. The fund currently holds about $100 billion of shares in listed local companies, including Saudi Basic Industries Corp. and Saudi Telecom Co.

In March last year, the PIF was transferred under a committee controlled by Prince Mohammed. In his role as head of of Economic and Development Affairs Council, the Prince chairs the board of the fund. It had previously been managed by the Ministry of Finance.

The prospect of the PIF becoming more acquisitive, coupled with the planned privatization of Saudi Aramco and other state-owned companies, is attracting global investment banks to the kingdom. Fees paid to banks in Saudi Arabia jumped by almost a third to about $100 million in the first five months, according to New York-based research firm Freeman & Co.

JPMorgan Chase & Co. advised the PIF on its investment in Uber and was a global coordinator on the kingdom’s $17.5 billion bond sale in October along with HSBC Holdings and Citigroup Inc. The sale was the largest ever such emerging markets offering.

PIF doesn’t receive any funding through the government budget and received more than 20 billion riyals in dividends in 2015, mostly from its holdings of Saudi Arabian equities, according to the prospectus for the October bond sale.

Saudi Arabia, hurt by low oil prices, has drawn down foreign reserves and cut spending while it funds a budget deficit that reached about 15 percent of gross domestic product last year. Foreign reserves held by the central bank have fallen $200 billion since August last year, to $536 billion at the end of October, according to the Saudi Arabian Monetary Agency.

The movement of funds to the PIF from SAMA, as the central bank is known, indicates that the role of the central bank could be gradually shifting, Mohamad Al Hajj, Dubai-based equity strategist for the Middle East and North Africa at EFG-Hermes U.A.E. Ltd said today by e-mail. SAMA’s role may be moving away from managing the country’s foreign reserves to focusing on currency liquidity and regulation, he said.-Bloomberg

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Alabbar launches JV for online luxury retailing

The Arabian Post Network — Mon, 28 Nov 2016 18:24:30 +0000

|By Arabian Post Staff| Emaar chairman and leading Dubai businessman Mohammed Alabbar followed up the launch of his $1 billion online retailing venture Noon with a joint venture for online luxury sales.

Alabbar announced at a press conference in Dubai that the firm Symphony Investments, owned by him, was taking 40 percent stake in the joint venture with Milan-based online retailer Yoox Net-a-Porter to profit from luxury spending in the Middle East.

The Italian retailer may start selling products into the Middle East in the next 12 months, he said.

Bloomberg adds: Alabbar is leading a $1 billion technology investment company formed with other regional investors, and also raised $1 billion from investors including Saudi Arabia’s sovereign wealth fund to create e-commerce firm Noon. He plans to start a social app similar to WhatsApp early next year. Alabbar bought a stake in regional logistics firm Aramex PJSC in July and 4 percent of Yoox Net-a-Porter for 100 million euros in April.

“E-commerce in the Middle East is still fresh and new, it’s 1.5 percent of total retail, it’s a baby,” Alabbar said. “We built Emaar into a sizable real estate company from nothing, and we need to build the next Emaar in e-commerce.”

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Amazon bid for souq.com shows Noon’s entry begins to bite

The Arabian Post Network — Thu, 24 Nov 2016 16:01:58 +0000

|ARABIAN POST SPECIAL|By K Raveendran|

As predicted, Emaar chairman Mohammed Alabbar’s foray into e-commerce has already started creating waves in the regional and global online retailing market. In an apparent move to retain its clout, global e-commerce leader Amazon.com is reportedly in talks to acquire Dubai-based online retailer Souq.com.

Amazon is reportedly considering a bid for all of souq.com, which had initially planned to sell a minority stake. Bloomberg, which reported the Amazon bid, said however that final agreements have not been reached and negotiations could still falter.

Souq.com appointed Goldman Sachs Group Inc. to find buyers for 30 percent stake in the company. The company’s existing investors were also weighing selling their holdings, it was reported.

In February this year, Souq.com secured a funding of more than AED 1 billion ($ 275 million), the largest financing of an e-commerce business in the Middle East.

Investors in the latest round included New York-based Tiger Global Management and South Africa’s Naspers Ltd., both of which had invested in Souq.com in earlier funding rounds.

Souq.com also added new strategic investors to diversify its investor base, including Standard Chartered Private Equity, IFC (a member of the World Bank Group), Baillie Gifford, and many regional and tech-focused financial institutions.

The company, which claims to sell more than 1.5 million products online to customers in the United Arab Emirates, Egypt and Saudi Arabia, said the investment would support the company’s future growth, strengthen e-commerce in the region and empower more businesses to grow online through Souq.com’s platform.

When Mohammed Alabbar announced the launch of his new e-commerce venture Noon with an investment of $1 billion two weeks ago, it was forecast that the new company would be a game changer in the region’s online shopping experience. That the prophecy has come true is clear by the move by Amazon, which is seen as a bid to protect and expand its Middle East footprint.

While announcing the launch, Alabbar had claimed that his new company would be ‘nothing less than a quantum leap in retail in the region and the world.’ The new company was aiming to grow online sales in the region from 2 per cent of the total market (US$3 billion), to 15 per cent (US$70 billion) within a decade, he said.

Noon promised several firsts for the region, including the biggest selection of 20 million products covering fashion, books, home & garden, electronics, sports & outdoor, health & beauty, personal care, toys, kids and baby products.

It also promised same-day delivery through Noon Transportation, an in-house express delivery service; and NoonPay, a secure and innovative payment gateway.

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Dubai Mall gets 80m visitors in one year

The Arabian Post Network — Tue, 19 Apr 2016 07:34:15 +0000

|By Arabian Post Staff| Dubai Mall recorded 80 million visitor arrivals in 2015. Various Emaar malls together received more than 124 million visitors, registering an increase of 9 per cent compared to 2014.

“The shopping malls business will gain further traction with the launch of a dedicated Retail District in Dubai Creek Harbour and the expansion of The Dubai Mall by another 1 million sq ft built-up area, while our hospitality business will see the ambitious launch of several new hotels and serviced residences in Dubai and other international markets under our three hotel brands including the newly launched value lifestyle Rove Hotels,” Chairman Mohammed Alabbar said at the company’s annual general meeting.

The shopping malls & retail and hospitality & leisure businesses recorded recurring revenues of AED 5.788 billion (US$ 1.576 billion), 42 per cent of the total revenue. The hospitality & leisure business outperformed the broader hospitality market with the average annual occupancy at The Address Hotels + Resorts at 86 per cent.

Emaar announced its annual general meeting that revenue from international operations increased by 46 per cent to AED 2.620 billion (US$ 713 million), accounting for 19 per cent of the total revenue.

With assets valued at over AED 165 billion (US$ 45 billion) and a land bank of 196 million sq m in the UAE and international markets, Emaar recorded full-year 2015 net operating profit of AED 4.383 billion (US$ 1.193 billion), 18 per cent higher than the FY2014, and revenue of AED 13.661 billion (US$ 3.719 billion), 33 per cent higher than the previous year.

In the UAE, total sales in 2015 were over AED 10.23 billion (US$ 2.79 billion) while sales across various international markets in 2015 were valued at AED 5.05 billion (US$ 1.37 billion). Emaar listed its country-subsidiary, Emaar Misr on the Egyptian Exchange, which recorded an increase in in-country revenue of 74 per cent in 2015.

The AGM approved a cash dividend of 15 per cent of the share capital, equivalent to AED 1.074 billion (US$ 292 million), for distribution to the shareholders.

Mohamed Alabbar said that 2016 will be a significant growth year for Emaar having recorded robust results led by the positive growth of the Dubai economy.

“With all core sectors of the economy performing exceptionally well, and with the preparations for the Expo 2020 Dubai progressing in full swing, the coming years will witness healthy growth trends in Dubai that support all the three core businesses of Emaar – property development, shopping malls & retail and hospitality & leisure.”

“We are setting new benchmarks this year, particularly with the opening of Dubai Opera, a multi-format events venue in Downtown Dubai. Emaar has also rolled out the magnificent tower that will form the vibrant heart of Dubai Creek Harbour, a one-of-a-kind masterplannned community that will further energise the city by welcoming visitors from around the world,” he added.

Alabbar said that Emaar’s strategy of developing prime real estate assets that meet the real demand for world-class residences in central locations is further highlighted by the progress in Dubai Hills Estate and the launches of high-end homes in Downtown Dubai and Arabian Ranches. Emaar is also expanding its development portfolio in high-growth international markets including Saudi Arabia, Egypt, India and Turkey, among others, where the company has unveiled several world-class master-planned communities.

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Alabbar gets funding pledge for Americana bid

The Arabian Post Network — Thu, 31 Mar 2016 20:48:29 +0000

|By Arabian Post Staff| Emaar Chairman and leading Dubai businessman Mohammed Alabbar’s investment consortium Adeptio is learnt to have secured commitments worth $1.5 billion to fund its pursuit of regional KFC operator Americana.

The banks lending money for the acquisition reportedly include Citigroup, Standard Chartered , Credit Suisse Group AG, National Bank of Abu Dhabi, Emirates NBD, First Gulf Bank and Bahrain-based Ahli United Bank.

Earlier this year, Adeptio had announced the conclusion of an initial deal to buy a 69 percent stake in Americana from Al Khair National, owned by the Al Kharafi family. Apart from KFC, Americana is also the franchise operator of TGI Friday and Pizza Hut.

For the past two years, the owners have been scouting for a buyer for the Americana group set up in 1964. The prospective buyers were said to include Saudi’s Kingdom Holdings Company, Singapore’s Temasek Holdings and Saudi’s Savola Group. Alabbar’s Adeptio was a later entrant.

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Dubai shows its true spirit

K Raveendran — Sat, 02 Jan 2016 19:48:52 +0000

|By K Raveendran| Given Dubai’s fame as one of the most happening cities of the world, the international media attention to the New Year-eve fire at the Address Hotel was quite natural. At the same time, it did not escape the attention of the discerning that some sections of the media lost no opportunity to use the unfortunate incident to show things in a rather poor light.

But overall the Dubai Establishment has won admiration from all around for the manner in which such a major fire and its potential dangers were handled. The less than two dozen injuries reported amount to virtually nothing considering the gravity of the situation, with a huge crowd milling around the property in expectation of the New Year spectacle that Downtown Dubai and Burj Khalifa have by now become famous for.

The takeaway from the whole episode is that Dubai has once again demonstrated its inherent strength and positivity with the swift, professional, calm and caring response, as Emaar Chairman Mohammed Alabbar pointed out in a statement issued a day after the incident. The immediate priority was to ensure the safety of guests and the hundreds of thousands of visitors to Downtown Dubai, who were evacuated in record time in a most orderly fashion.

Within minutes of the incident, Dubai Civil Defence, Dubai Police, Dubai Ambulance Services, the RTA, Dubai Heath Authority and the all governmental authorities concerned, coordinated and responded with maximum efficiency—a true testament to how Dubai operates as one team.

Various hotels in Dubai contributed their part in relocating the guests who were staying at the Address. The authorities and staff at the General Directorate of Residency and Foreign Affairs, Dubai International Airport, Emirates Airline and other airline companies quickly extended support in ensuring the wellbeing of the guests.

“The teams across Dubai government entities are the true heroes. Their noble work gives Dubai’s people and the business community the sense of security, comfort and confidence,” Alabbar said in his statement.

“We are extremely thankful to the leadership and guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, for keeping our morale high, and for his prompt directives that enabled us to deal with a challenging situation with utmost professionalism,” he said.

The Emaar Chairman also thanked Dubai Police, Dubai Civil Defence and all the Dubai government entities who demonstrated their superb commitment and dedication. He specially thanked the Dubai Civil Defence officials for their exceptional bravery and hard work.

Alabbar also praised the people of Dubai for their response to the challenging situation. “We extend our heartfelt appreciation and debt of gratitude to the people of Dubai, especially the visitors to Downtown Dubai, for their patience and trust in us. Their orderly conduct demonstrated their confidence in Dubai’s officials to meeting any challenge calmly,” he said.

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Alabbar in shareholder dissent row

The Arabian Post Network — Fri, 03 Apr 2015 21:03:35 +0000

As chairman of Emaar Properties, Mohamed Alabbar has shaped much of Dubai’s skyline, but rapid growth in his outside real estate interests is raising the possibility of a rarity in the Gulf – open shareholder dissent.

Speculation persists that Alabbar and Emaar, the company he founded in 1997, could soon part ways despite a categorical denial from the firm last month.

His involvement in other firms’ projects, such as a planned $45 billion nd developments from west Africa to the Balkans, has raised eyebrows.

“This is something that is a concern for us,” said one Emaar shareholder,” who declined to be named. “There is a conflict of interest. The chairman owns a company in the same field.”

A spokeswoman representing Alabbar did not immediately respond to a Reuters request for comment on the shareholder’s remarks. Emaar directors are not currently barred from involvement with other property groups.

Emaar has also lost a string of senior executives to rivals, including one that is handling some of Alabbar’s extramural projects, raising further concerns that industry sources say may come up at the group’s annual shareholders’ meeting on April 15.

The fortunes of Alabbar and Emaar – which developed Burj Khalifa, the world’s tallest building – are intertwined. “We’re in a region where who is running the show is as important as a proper strategy, if not more,” said Fathi Ben Grira, chief executive of Abu Dhabi-based investment firm MENACORP.

Emaar’s shares have recovered to around 7 dirhams from 6.25 immediately before the denial on March 19 that Alabbar was leaving, but remain well below levels above 10 last September.

Born in 1956, Alabbar rose up through the state ranks by working at the United Arab Emirates’ central bank and the Dubai government office in Singapore, before returning to the emirate with a job at the Department of Economic Development.

In this period he became close to Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, before founding Emaar.

Emaar, in which the state Investment Corporation of Dubai holds a 29 percent stake, has experienced shareholder unrest before – notably in 2011 over its failure to pay dividends after the global financial crisis and subsequent property crash in Dubai. It yielded to the investors’ demands and paid up.

Nevertheless, any open questioning of Alabbar’s position would be unusual for the Gulf, where business disputes are normally settled beyond public view.

Speculation about Alabbar has grown since last month when he signed an agreement to develop the Egyptian mega city on behalf of Capital City Partners (CCP), of which he is a founding partner. He is also a board member at Abu Dhabi’s Eagle Hills, which plans developments in Serbia, Nigeria and Bahrain.

Emaar has developed some of the best sites in Dubai and beyond, but now has to compete with start up firms. The fact that some have links to Alabbar perplexes investors in Emaar.

“Why wasn’t the Egypt project given to Emaar Egypt, if you think it’s a good buy?” asked the shareholder.

“We see Emaar is not a priority for Dubai. There is no new land being allocated, it’s going to other companies,” the shareholder added. “It is clear that Emaar is not in a growth mode, it is on autopilot.”

Emaar’s brain drain is another worry. Former chief executive Low Ping now holds the same position at Eagle Hills. Salman Sajid, previously chief financial officer of several Emaar units, is Eagle Hills’ CFO.

In an earlier email exchange with Reuters, the spokeswoman explained Alabbar’s relationship with the companies. “Mr. Alabbar provides advice and counsel to CCP and Eagle Hills in his official capacity,” she said, without elaborating.

Emaar directors are allowed to sit on the boards of competing firms by a resolution that must be approved annually at the shareholders’ meeting. So far, this has been a formality, but a Dubai broker said this might not happen this time. “These kinds of activities – high-level executives involved with (other) big real estate companies (that) demand more of their time – it definitely becomes a question mark,” the broker said.

Nshama, a Dubai developer launched in September, has also recruited heavily from Emaar.

Its chief executive, Fred Durie, was CEO of Emaar International until November 2014 while chief operations officer Abubakr Sidahmed was Emaar’s senior director for projects until September 2014. About this time, Nshama’s CFO Raghuraj Balakrishna also quit as Emaar’s finance head.

Alabbar’s spokeswoman said Nshama, along with CCP and Eagle Hills, was not linked to Emaar. “All three are independent companies and have no relationship with Emaar,” she said. “Each company hires talent from the real estate sector in the UAE and across the globe.”

Under Alabbar, Emaar made ill-fated expansions into the United States and India, but it remains Dubai’s property market leader and operated in 10 other countries. It was the first property group to pay dividends after the crash from 2009, when prices slumped about 50 percent.

Emaar paid a $2.45 billion special dividend in November after spinning off its shopping malls businesses and similar payouts are expected this year. However, Dubai’s housing market is softening again after rebounding in 2012-2014.

Emaar and Dubai have joined the MSCI Emerging Markets index and international investors, who hold 21 percent of the group, and local institutions expect higher governance standards.

“It raises a lot of questions over corporate governance, not just for Emaar but for Dubai too,” said one senior official at a foreign institution that holds no stake in Emaar. “It all depends on how quickly they can sort it out and if minority shareholders suffer.”-Reuters

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Emaar plans hotels IPO

The Arabian Post Network — Wed, 25 Feb 2015 19:20:14 +0000

Burj Khalifa, the world’s tallest tower owned by Emaar

Emaar Properties PJSC, Dubai’s largest publicly-traded real estate developer, plans to sell shares in its hotels unit in the second half and hired Rothschild as an adviser, three people with knowledge of the matter said.

The offering is planned for later in the year because of conditions on the Dubai Financial Market, two of the people said, asking not to be identified as the information is private. Chairman Mohammed Alabbar told Sky News in October that the company was considering the sale in the first half.

The United Arab Emirates’ market regulator advised “many” companies to delay initial public offerings this year because of market volatility, chief executive officer Abdullah Al Turaifi told reporters in Abu Dhabi earlier this month. Shares in the last company to list on the DFM, Dubai Parks & Resorts PJSC, dropped 9 percent on the first trading day.

Emaar’s hotels business includes two Armani hotels in Milan and Dubai. In total the hospitality unit has 12 properties with more than 1,900 rooms in the United Arab Emirates, Egypt, India and Italy, according to a Nov. 18 company presentation.-Bloomberg

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IMF happy with Dubai property price moderation

The Arabian Post Network — Mon, 27 Oct 2014 20:11:09 +0000

|By TAP Staff| International Monetary Fund is pleased to note the moderation in the prices of Dubai’s properties, a senior IMF official said.

The IMF has previously warned that rapid rises in Dubai real estate prices, which earlier this year were in some cases a third higher than they were 12 months previously, could lead to another bubble and then a crash in the emirate.

But Masood Ahmed, head of the IMF’s Middle East and Central Asia Department, told a news conference on Monday that risks seemed to have decreased, partly because Dubai authorities had taken steps to limit speculative buying.

However, he said there were still areas that needed to be watched, and that real estate projects needed to be sequenced and carefully managed to avoid encouraging excessive risk-taking by government-related enterprises.

A report by property consultants JLL last month found residential rents and sales prices rose 2 percent and 1 percent respectively in the third quarter compared to the previous quarter, slower than 3 percent and 6 percent increases in the second quarter.

Similarly, Emaar Properties chairman Mohammed Alabbar welcomed talk of a slowdown in the emirate’s property market and vowed to keep supplying new homes to help hold prices at “a reasonable level”.

“We will continue to supply the market – supply in the market is good for our customers because it keeps prices at a reasonable level,” Emaar chairman Mohamed Alabbar told reporters on Monday.

“In 2013, things went crazy because supply was limited. For me as a long-term developer, this spike scares me, so I’m glad people are saying, ‘Oh, the market is cooling down.’ I think that is healthy.”

Alabbar was speaking at the launch of the first phase of a huge new high-end residential development called Dubai Creek Harbour, a joint project between Emaar and Dubai Holding, the personal investment vehicle of Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum.

The entire project is slated eventually to cover nearly 1,500 acres and include two towers that the developer says will be the tallest twin towers in the world.

Earlier in the day a senior official of the International Monetary Fund said rises in Dubai property prices had moderated, and were now less of a concern to the IMF. Previously, the IMF had warned that rapid price rises could lead to another bubble and crash in the sector.

A September report by property consultants JLL found Dubai’s residential rents and sales prices rose 2 percent and 1 percent respectively in the third quarter of 2014 compared to the previous quarter. That was slower than 3 percent and 6 percent increases in the second quarter.

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Emaar shareholders get AED9b bounty

The Arabian Post Network — Sun, 12 Oct 2014 05:10:23 +0000

|By TAP Staff| The Board of Directors of Emaar Properties has approved a Special Cash Dividend of AED 9 billion (US$ 2.45 billion) to be distributed to the company’s shareholders taking the total value of dividends distributed this year to over AED 17.12 billion (US$ 4.66 billion) – one of the largest announced by any listed company in the UAE. The total value of the dividends is about 250 per cent of the par value of Emaar’s shares, highlighting the strong value creation by the company.

The newly announced cash dividend follows overwhelming investor response from regional and international investors to the initial public offering of Emaar Malls Group, which recorded total orders of over AED 172 billion (US$ 46.8 billion). Emaar Properties will conduct an Ordinary General Meeting to seek the approval of its shareholders in distributing the special dividend.

One of the most actively traded shares on DFM, Emaar’s stock value has increased by about 108 per cent in the past 52 weeks, with year-to-date increase in value by over 62 per cent. As of October 11, 2014, Emaar has a market capitalization of over AED 81.98 billion (US$ 22.32 billion).

Mohamed Alabbar, Chairman of Emaar Properties, said: “With over AED 17.12 billion (US$ 4.66 billion) in dividend, including AED 10 billion (US$2.72 billion) in cash, declared this year, Emaar has set a milestone in enhancing value for our shareholders. Earlier this year, we had announced the additional cash dividend from the listing of Emaar Malls, and we are now delivering on our promise to them.

“We are thankful to all our stakeholders for their continued trust and confidence in us. We will continue to focus on creating long-term value by further strengthening our core businesses in prime real estate assets, shopping malls & retail and hospitality. Highlighting the success of our strategy to add continuous value to our shareholders, Emaar’s stock has increased over 62 per cent in value year-to-date.

He added: “The highly successful IPO of Emaar Malls and the overwhelming investor response highlight the global investor confidence in our company’s financial strength and vision, which is led by the positive growth of Dubai.

“His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, has set a strong roadmap for growth that will continue to energise the core sectors of the economy in which we have proved our competencies. We will continue to focus our energies to achieving newer milestones and creating value for all stakeholders.”

In April, Emaar declared dividend of AED 8 billion (US$ 2.18 billion), including 15 per cent cash dividend, equivalent to about AED 975 million (US$ 265.5 million), and 10 per cent bonus shares, or 650 million shares, valued at about AED 7.12 billion (US$ 1.94 billion) at AED 10.95 per share, as of April 23, 2014.

The leading owner and operator of shopping malls in Dubai, Emaar Malls has a total GLA of approximately 5.9 million sq ft. (as at 30 June 2014) and a GLA occupancy rate of 95 per cent in the six months ended 30 June 2014, operating through four divisions. Its flagship asset, The Dubai Mall is the world’s most visited retail and lifestyle destination.

With assets of AED 64.93 billion (US$ 17.68 billion) as of 2013 end and an impressive land bank of over 226 million sq m in high-growth international markets, Emaar also owns 12 hotels and resorts, with over 1,900 rooms. This year, Emaar has launched several new major projects, which received strong investor response.

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Emaar success triggers huge IPO pipeline

The Arabian Post Network — Tue, 30 Sep 2014 20:46:28 +0000

|By TAP Staff| Following the huge success of Emaar’s malls IPO, Chairman Mohammed Alabbar indicated the possibility of floating the group’s hotel business, which includes the signature Armani Hotel.

Meraas Holding, a Dubai government-controlled developer, has picked banks to manage the IPO of its theme park unit, three people with knowledge of the matter said earlier this month. The company’s IPO is planned for the fourth quarter, the people said, asking not to be identified as the information is private.

Amanat Holdings, a healthcare and education venture, announced plans today for a share sale next month. Many had plans under discussion even before Emaar got at least $43 billion in orders for 15.4 percent of its retail unit, raising $1.6 billion.

Amanat plans to raise 1.375 billion dirhams ($374 million) from an IPO on the Dubai Financial Market starting in the second half of next month, it said in an e-mailed statement

“This will open the door to a surge in IPOs,” Shailesh Dash, chief executive officer of Dubai-based Al Masah Capital Ltd., which manages $545 million, told Bloomberg on phone. “It sends a clear message to people with successful businesses to go to the market.”

Axiom Ltd., the Dubai-based mobile-phone retailer that abandoned a sale four years ago, said in July it may revive those plans.

Meanwhile Egyptian Billionaire Nassef Sawiris is considering selling shares in his construction business in Dubai to take advantage of improved liquidity, three people with knowledge of the matter said last week. The offering could raise more than $200 million, two of the people said, asking not to be identified as the information is private. A spokesman for the company declined to comment last week.

“We are working on several opportunities across the region and expect a number of companies to seek listings over the next 12 months,” Patrick Delivanis, who worked on the Emaar Malls offering and is head of investment banking for the Middle East and North Africa at Morgan Stanley, said.

The Emaar Malls share sale is the biggest in the Middle East since Saudi Arabian Mining Co. (MAADEN) raised $2.5 billion dollars in June 2008, according to data compiled by Bloomberg. It’s also the biggest in the U.A.E. since DP World Ltd. raised $5 billion in 2007. Emaar Malls shares, which were priced at 2.9 dirhams, the top end of the range, will start trading Oct. 2.

Shares in Marka, which completed the first IPO on the Dubai exchange in five years, jumped 59 percent on their first day of trading on Sept. 25. The stock has since pared its gain to 45 percent since it began trading. Marka plans to invest in retail and hospitality in the Gulf Cooperation Council.

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Dubai to double hotel rooms for Expo 2020

The Arabian Post Network — Tue, 18 Mar 2014 17:33:14 +0000

Dubai plans to almost double the number of hotel rooms by 2020 as it expects a surge of visitors to the desert sheikhdom ahead of that year’s World Expo.

The emirate that spent more than $110 billion to transform itself into the Middle East’s commercial and entertainment hub is seeking to attract 20 million tourists annually by the end of the decade, Helal Saeed Almarri, director general of the Dubai Tourism and Commerce Marketing, said in an interview yesterday. To do that, it needs to raise the number of hotel rooms to as many as 160,000, many of them not in the luxury category Dubai is known for, he said.

“None of these rooms are being built specifically for the Expo or any one event,” Almarri said. “They’re being built purely because of the core tourism numbers. Dubai won’t turn into a ghost town after the Expo.”

Dubai, part of the seven-member United Arab Emirates, lured 11 million tourists last year, up 11 percent from 2012, contributing to economic expansion of 4.9 percent, the fastest pace in six years. Tourism accounted for about 20 percent of gross domestic product in 2013, and is forecast to increase between 7 percent and 9 percent through 2020, Almarri said.

While Saudi Arabia and India represented two of the biggest markets for Dubai in 2013, according to DTCM data, the emirate draws tourists from both East and West. Dubai airport passenger traffic grew 14 percent in 2013 after expanding 13 percent a year earlier. It hit a record 6.4 million in January.

“We have a very fragmented source markets, no single market exceeds 10 percent of tourists,” Almarri said, “That is obviously very positive for us, because it allows us to circumvent any anomalies in terms of economies or currencies.”

The emirate’s expanding hospitality industry helped boost mall and retail revenue for Emaar Properties PJSC. (EMAAR) The developer of the Middle East’s biggest shopping center, Dubai Mall, plans to raise as much as $2.45 billion from selling 25 percent of Emaar Malls Group, the company said March 15. It’s seeking to list shares on Nasdaq Dubai and in London before mid-June, Chairman Mohamed Alabbar said in an interview today.

Dubai, whose economy shrank 2.4 percent and was near default in 2009, plans to spend about $8 billion ahead of the Expo. To help fund the promotion of Dubai’s tourism and trade industries, it will impose a tax as high as 20 dirhams ($5.45) per room for each night, depending on the hotel category, starting March 31.

Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum moved in January to speed up hotel projects. The period required for preliminary consent was cut to two months from as many as six, and a one-stop approval center was established. Government land for developers of three- and four-star hotels will be granted on “favorable” terms, the DTCM said in January.

Officials want to boost the supply of more affordable hotels to cater to business travelers and holidaying families. About a third of Dubai’s 85,000 rooms are in luxury hotels. It’s offering to waive fees if landowners change development plans to build cheaper accommodation, and as much as a five-year exemption from a 10 percent fee on revenue.

“In 2020, five-star hotels rooms will still be the majority, but we’d need the three and four-star category” to build a more balanced market, Almarri said.-Bloomberg

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Emaar quietly replaces CEO

The Arabian Post Network — Sat, 25 Jan 2014 07:42:51 +0000

Emaar Properties, Dubai’s top listed company by market value, quietly replaced its Group Chief Executive Low Ping late last year, appointing Abdulla Lahej as her replacement, industry sources aware of the matter said.

Neither Ping’s departure, which sources say happened towards the end of 2013, nor the appointment of Lahej was made public by Emaar, which has built the world’s tallest tower, the Burj Khalifa, and spearheaded a dramatic recovery in the emirate’s property market.

Emaar did not respond to emails seeking comment. The sources spoke on condition of anonymity and did not provide a reason for Ping’s departure.

Reuters could not reach Ping for comment. Emaar’s website now shows Lahej as the group CEO and says he joined the firm in 2000 as an assistant project manager.

Ping, a Singaporean, joined Emaar in 2002 and worked as an executive director for finance at the firm; one of the sources said she was made chief executive a few years later. The source said Ping had now returned to Singapore.

Property prices in Dubai tumbled by more than 50 percent from their 2008 peak during the global economic slowdown. The emirate has recovered strongly over the last year, helped by its safe haven status following the region’s Arab Spring uprisings.

Emaar, whose chairman and founder Mohammed Alabbar is one of the most prominent business figures in the emirate, has been one of the biggest beneficiaries of the recovery; its share price soared 104 percent in 2013. The firm has a current market value of about $13 billion, according to Thomson Reuters data.

“It’s a bit baffling that the biggest listed company in Dubai would replace its CEO and not tell the market about it. Emaar is doing exceedingly well, but you would expect that such matters are communicated to the investors,” a banker in Dubai said, adding that Ping was seen as a close aide of Alabbar.

The developer has announced a series of new projects in Dubai, including state-linked plans for a district that would include over 100 hotels.-Reuters

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Burj Khalifa topper also to be in Dubai

The Arabian Post Network — Sun, 03 Nov 2013 09:33:27 +0000

Dubai is far from ready to relinquish its status as home to the world’s tallest tower.

Emaar Properties Chairman Mohammed Ali Alabbar has once again reiterated that a new tallest skyscraper in the world will be built in Dubai.

“Emaar plans to build the tallest skyscraper in the world in Dubai,” Alabbar was quoted as saying in an interview to CNN, on the sidelines of launching of a $3 billion development in Arbil, the capital of Iraq’s Kurdistan region.

Dubai is currently home to 828-metre-high Burj Khalifa, the tallest tower in the world, nestled in a district rated as one of the costliest in the world. Alabbar, however, refused to disclose the height of the new tower.

Alabbar cited the great ambitions of the emirate as the reason behind Emaar choosing to build the new tallest tower in Dubai.
In May, 2013, the Emaar Chairman had said that Dubai can accommodate a tower taller than Burj Khalifa.

Speaking at a conference in Dubai at the time, Alabbar said he’s considering building a tower which will be taller than the Kingdom Tower, which is currently under construction in Jeddah, Saudi Arabia.

Kingdom Tower, which is currently under construction, is set to overtake Burj Khalifa to become the world’s tallest by 2017-2018.
“Technology has really improved the value of tall buildings which are really important commercially.
“We have learned how to make money out of tall buildings.”

Besides Burj Khalifa, Dubai is home to the tallest residential tower (Princess Tower), the tallest hotel in the world (JW Marriott Marquis) and the tallest building with a 90degree twist (Cayan Tower).

Emporis, a global provider of building information, data reveals Dubai has 909 high-rise buildings, including 448 skyscrapers (comprising 40 floors or more).

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