Emaar net profits for 2006 up by 35 per cent to reach AED 6.371 billion

Emaar posted a record annual net profit of AED 6.371 billion (US$ 1.735 billion) compared to AED 4.731 billion (US$ 1.288 billion) in year 2005. Annual revenue increased by 68 per cent from AED 8.361 billion (US$ 2.276 billion) to AED 14.006 billion (US$ 3.813 billion). Earnings per share (EPS) for the year 2006 was AED 1.06 (US$ 0.29) compared to AED 0.85 (US$ 0.23) during 2005.

Emaar recorded fourth-quarter revenue and net profits of AED 5.548 billion (US$ 1.510 billion) and AED 1.713 billion (US$ 0.466 billion) respectively. This was 64 per cent more than the third-quarter revenue of AED 3.379 billion (US$ 0.920 billion) and 7 per cent more than the net profit of AED 1.605 billion (US$ 0.437 billion) for the period ended September 30, 2006.

The fourth-quarter figures represent a growth of 246 per cent in revenue and 65 per cent in net profit respectively over the fourth-quarter 2005 revenue and profit of AED 1.604 billion (US$ 0.437 billion) and AED 1.041 billion (US$ 0.283 billion), respectively.

Mr Mohamed Ali Alabbar, Chairman, Emaar Properties said:

'2006 has been another defining year for Emaar with our international expansion and diversification strategies coming to fruition. We aligned our fundamentals to achieve our Vision 2010 of becoming one of the most valuable companies in the world.'

Mr Alabbar said that Emaar derived growth-impetus from the robust economic climate of Dubai, which was adjudged as the 17th most competitive economy in the world out of 61 top global economies. 'The visionary leadership of UAE Vice President and Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed Bin Rashid Al Maktoum catalyzed the growth of the local economy. Sheikh Mohammed energized the property sector of the Emirate by issuing the Dubai Property Law and confirming the freehold areas in Dubai. He has taken confidence-boosting decisions to strengthen the real estate sector, which will have far-reaching beneficial impact for both the individual investors and the sector as a whole.'

'Property hand-over will continue to gain momentum within communities in Downtown Burj Dubai, Dubai Marina, Arabian Ranches and the Emirates Living,' said Mr Alabbar. 'The construction of The Dubai Mall in Downtown Burj Dubai, the world's largest shopping and entertainment destination, is also progressing well, and is slated for opening in 2008.'

Emaar scaled a significant milestone as Burj Dubai - the iconic super-tower billed to be the tallest in the world - crossed 100 levels and continues to add a new floor every three days. The company also unveiled residential projects in Dubai Marina and Downtown Burj Dubai. The sale of Emaar's premium properties in Dubai fetched overwhelming investor response. In the UAE, Emaar is also on-schedule with the AED 12 billion (US$ 3.3 billion) Umm Al Quwain Marina project.

Emaar's international project portfolio reached an all-time high in terms of development value in 2006. Sales of homes and commercial property across a majority of the countries in which the company currently operates will gather momentum in 2007. Emaar currently has its international projects in Kingdom of Saudi Arabia, India, Pakistan, Jordan, Syria, Turkey, Egypt and Morocco with total development value exceeding AED 220 billion (US$ 60 billion).

Mr Alabbar added:

'Emaar's expansion and diversification plans reiterate our commitment to shareholders. The company's new projects and ventures, spread over 14 countries, further enhance investor confidence in us and enable us to out-perform ourselves in the coming years.'

Highlighting a significant regional accomplishment, Emaar the Economic City (Emaar.E.C) received an overwhelming response to its initial public offering (IPO). Over 10 million Saudis, approximately half the Kingdom's national population, invested in the IPO. Oversubscribed by 2.82 times, the SR 2.55 billion (US$ 0.68 billion) IPO received 2.8 million applications with the total amount subscribed at SR 7.18 billion (US$ 1.91 billion). Net proceeds from the IPO are used for the development of King Abdullah Economic City (KAEC), the largest private sector project in the Kingdom, sprawling over 168 million sq m. Emaar.E.C is now listed on the Tadawul stock exchange.

Taking confident strides internationally, Emaar acquired John Laing Homes, America's second largest privately held homebuilder for AED 3.967 billion (US$ 1.080 billion), and scaled up its product sales competencies by acquiring Hamptons International, a UK-based premier realtor in an AED 562.45 million (US$ 153.05 million) deal. Emaar also joined hands with international building services provider Turner Corporation to form Turner International Middle East Ltd, to jointly tap growth opportunities.

Emaar launched sales in India, Pakistan and Egypt and received overwhelming investor response.

In India, Emaar's joint venture company Emaar MGF joined hands with international hotel management company Accor to open 100 budget hotels in the country over the next 10 years, with planned investments of AED 1,102 million (US$ 300 million).

The company also delivered on its promise by completing the Novotel Hyderabad hotel. This was in time for the Annual Meeting of the Board of Governors of the Asian Development Bank in India held at the Hyderabad International Convention Centre (HICC), adjacent to the hotel. HICC was also developed by Cyberabad Convention Centre Private Limited, a joint venture between Emaar and the Andhra Pradesh Industrial Infrastructure Corporation Limited.

In 2006, Emaar announced its diversification into healthcare with planned investments of AED 18.35 billion (US$ 5 billion) in the next 10 years. Emaar Healthcare envisages developing world-class hospitals, clinics and medical centres in the Middle East and North Africa (MENA) region, the Indian Subcontinent and South Asia.

Strengthening its expansion into education, Emaar acquired Singapore-based premier educational provider Raffles Campus. It will lend educational expertise to all the schools that Emaar Education has planned in the emerging markets of the MENA region, Indian Subcontinent and South Asia. Emaar will open its first international school in Singapore followed by seven educational institutions in Dubai later this year.

Emaar unveiled several initiatives that reiterate its corporate social responsibility. This included the launch of Earth Watch, a recycling project, in Emaar's residential neighbourhoods in Dubai, and the launch of a community portal.

Winning several awards including laurels for being 'Best Developer of the Year' in 2006 by Euromoney, Arabian Business and Construction Week, Emaar also won the ISO 9001:2000 certification for quality last year. 'Emaar is poised for sustained growth in 2007. We are on-schedule with our projects in all the markets. Emaar's communities in the UAE are flourishing and we are unveiling our educational institutions this year - in Singapore and Dubai. This will further strengthen our bonding with our customers, whose constant support has encouraged the company to further strengthen its customer focus,' said Mr Alabbar.