EMAAR announces record 31 per cent increase in net profits to AED676 million for 2003

The 31 per cent increase over the previous year's figure of AED517 million significantly exceeds the 25 per cent increase projected for the year. Similarly, the company has witnessed a record 179 per cent increase in revenues to reach AED3.721 billion from AED 1.335 billion in 2002.

Striking a buoyant note on the company's performance, Mr Mohamed Ali Alabbar, Chairman, EMAAR Properties, said: "EMAAR has cemented its reputation for innovation and quality by taking an idea from the drawing board and turning it into world class, master planned communities. In 1999, we were selling homes in bundles of tens. Two years ago, we were selling them in the hundreds. Now we are selling them by the thousands. Accommodating the sheer levels of growth of the company, which has taken place at speed never witnessed in the region, has been a true challenge but one that we have risen to and that our financials clearly reflect."

Alabbar noted that with more development projects coming on stream and ambitious plans for the year ahead, the company expects to record similar, if not better, growth in 2004. "As we continue on our mission - 'Shaping the Future. Today' - we expect to maintain and enhance not only the quality of our service offering and delivery but also the financial strength of the company. Significantly, the Earnings Per Share ratio for the year ended 2003 stands at AED2.71 compared to AED2.03 for 2002," he said.

During the course of 2003, EMAAR concluded the placement of treasury stock amounting to 5.7 per cent of equity, valued at AED375 million. The move forms part of the company's overall plans to eventually broaden its shareholder base internationally as it considers the merits of a secondary listing on an international stock exchange.

The financial results include all of EMAAR's subsidiaries - Dubai Bank, EMRILL and Sahm Technologies - in addition to AMLAK Finance, which will complete a highly successful AED412.5 million Initial Public Offering (IPO) today. "The excellent response to the AMLAK offering reflects the overall confidence in the UAE real estate sector and specifically in the EMAAR group," said Alabbar. "With AMLAK's capital standing considerably enhanced, they are ideally positioned to drive further growth in the real estate finance industry."

Providing highlights of the developments launched during the year, Mr. Alabbar said: "The real-estate market in Dubai experienced fantastic growth in 2003 with EMAAR at the forefront of the industry's contribution. We launched several high profile projects including The Burj Dubai, The Dubai Mall, EMAAR Towers, Gazelle at Arabian Ranches and Hattan. All of these have met with an overwhelming response from UAE national and expatriate investors and are having a very positive impact on the domestic economy."

Alabbar pointed out that the company has "handed over the keys to hundreds of homeowners at Dubai Marina, The Meadows and The Greens residential developments. I am delighted to report that these projects were delivered in line with the commitments we made at the outset when they were first unveiled."

EMAAR has also ensured a special focus on the company's customers in 2003 with the formation of a dedicated Customer Care Team and a new Retail Team to handle enquiries from prospective retailers.

EMAAR is currently developing thirteen major real estate projects. These include the region's largest waterfront development Dubai Marina and the Dubai Marina villas, Arabian Ranches the prestigious golfing and equestrian themed community and Emirates Hills, the company's flagship golf community.

There are also apartment communities at The Greens at Emirates Golf Club and gated communities at The Meadows, The Springs, The Lakes and Hattan. EMAAR Towers, the company's downtown development and Burj Dubai, which will feature the world's tallest tower and The Dubai Mall, the world's largest shopping mall, are also part of EMAAR's ambitious and impressive portfolio.