EMAAR announces record net profits of AED 517 million in 2002

The Board of Directors of the Company has proposed a total dividend of 10 per cent for the year amounting to AED 1 per share, to be approved by the company's shareholders at the annual general meeting to be held on February 24, 2003.

Speaking to a select group of media persons, capital market analysts and brokers at briefings held at the Dubai Financial Market, EMAAR Chairman Mohamed Ali Alabbar said: "The Company's strong showing marks a remarkable growth during 2002 over the similar accounting period last year with the annual revenue growing 63% to reach AED 1.334 billion. Profits from the operation were up 163% and net profits recorded a 51% growth.

"The annual results are all the more significant because interest earned from fixed deposits with banks has reduced by 63% compared to the same period in the previous comparable accounting period. Interest earned from fixed deposits in 2001 amounted to AED 156 million compared with AED 58 million in 2002. This is a very positive sign as our results reflect growth in our core business of premium real estate development."

The EMAAR Group, which comprises fully owned subsidiaries Dubai Bank, Amlak Finance, Sahm Technologies and a joint venture Emrill, sounded a buoyant note on its outlook for 2003 and beyond. "The Company expects to record a 25% growth in net profits in 2003," said the EMAAR Chairman.

Commenting on the record performance, Mr. Alabbar said: "In keeping with our pioneering mission - Shaping the Future - and the demanding pace that we have set ourselves, EMAAR continuously strives to incorporate international best standards in all its real-estate projects, while continuously adapting to the demands of its valued customers and shareholders. Significantly, the Earnings Per Share for the year 2002 is AED 2.03 compared to AED 1.29 during 2001."

EMAAR, which has the Government of Dubai as its largest shareholder, enjoys the continuous support and leadership of His Highness General Sheikh Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and UAE Defence Minister.

EMAAR Properties currently has eight major real estate projects under development including the Arabian Ranches, Dubai Marina, Emirates Hills, The Lakes, The Meadows, The Springs, The Greens and EMAAR Towers. These projects reflect the Company's core focus to spur growth in the local real estate sector and the development of New Dubai in the growth corridor of Jumeirah in accordance with the company's vision of shaping the future of the Emirate.

The financial results of EMAAR include the results of all its subsidiaries notably, the recently launched Dubai Bank, Amlak Finance, EMRILL and Sahm Technologies. During 2002, the Company launched Dubai Bank, its most recent subsidiary, with a mission to set new standards in the region's banking sector. The Bank is chaired by His Highness Sheikh Hamdan bin Mohammed Al Maktoum.

EMAAR also launched EMRILL, a joint venture with the UK-based Carillion plc, which provides property and facilities management services. Additionally, Amlak Finance, UAE's first and only mortgage finance company, registered a high growth in disbursement of home loans during 2002. Sahm Technologies has also commenced operations and is focused on the provision of IT and communications services.