20% cash dividend approved at Emaar AGM

The assembly approved a cash dividend of 20% of the nominal value of shares, which will be entitled to all shareholders registered on the tenth day following the date of the AGM.

One of the world's leading property developers, Emaar's current land bank stands at 519 million square metres - over twelve times more than in 2005. The fair value of this land increased by 74% from Dhs68bn in 2006 to Dhs118bn ($32bn) as at end of 2007.

Presenting the company's financial results for 2007 and outlining its future growth strategy, Mr Mohamed Ali Alabbar, Chairman, Emaar Properties, said that despite the prevailing volatility in international capital markets, the company maintains its dominant global role. "Our strategy of creating significant value for our shareholders is progressing well. The net asset value of the Group, including the fair value of the land, real estate properties and market value of listed associates increased 46% from Dhs11.6 per share in 2006 to Dhs16.9 per share as at end of 2007."

Emaar's partnership with Bawadi LLC to develop 70 million square feet of land increased the company's land bank in Dubai by 76% to 162 million square feet. "This transaction is fully in line with the Dubai Strategic Plan outlined by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, and demonstrates how the emirate can continue to enjoy a leadership position by leveraging its existing strengths," said Mr Alabbar.

He added: "By aiming higher, we hope to achieve even greater things. Emaar is well on its way to becoming one of the most valuable companies in the world by 2010, and we are grateful to our shareholders for their trust in our strategy of geographic expansion and business segmentation, aimed at generating even more long-term value for them."

Highlighting the gains by Emaar's business subsidiaries, Mr Alabbar said that Emaar Hospitality will build assets with a total value of Dhs3.5bn ($950m) through a portfolio of seven hotels by next year. Emaar Malls Group, the shopping malls subsidiary, will open The Dubai Mall and Dubai Marina Mall towards the end of 2008 with a combined asset value of Dhs9bn ($2.45bn) and gross leasable area of over 3.9 million square feet.

Mr Alabbar pointed out that the Armani Residences at Burj Dubai, which last year achieved the iconic status of being the world's tallest building, also commands some of the world's highest prices, with the Armani Residences achieving prices of up to Dhs12,888 ($3,509) per square ft.

"Emaar's focus is on execution, with the clear objective of ensuring the timely delivery of our domestic and international projects," he said. "2007 marked the first year that we launched projects in the international arena, and the response to our sales launches was extremely encouraging. Last year, Emaar launched 3,891 units and sold 2,456 units in international pilot projects, excluding the United States. Of these total units launched, 67%were in last quarter of 2007."

In 2007, Emaar recorded annual net profits of Dhs6.575bn ($1.790bn), an increase of three per cent compared to Dhs6.371bn ($1.735bn) in 2006. During the same period, annual revenue increased by 25% to Dhs17.566bn ($4.782bn) compared to Dhs14bn ($3.813bn) in 2006. Earnings per share (EPS) for the year 2007 stood at Dhs1.08 ($0.29) compared to Dhs1.05 ($0.29) in 2006.

During the AGM, the assembly approved the Director's Report, Auditor's Report and the appointment of auditors for 2008.