EMAAR announces record half yearly profits of AED 280 million

After accounting for pre-operating expenses of newly set-up fully owned subsidiaries such as Dubai Bank, EMRILL, and a technology services company along with other expense provisions, the net half-yearly profit will be AED 240 million.

The Company's strong showing marks a growth in profit of about 50 per cent over the similar accounting period last year. This interim result is all the more significant because interest earned from fixed deposits with banks has reduced very substantially during the same period, to about a third of what it was in the previous comparable accounting period.

EMAAR Properties, which blazed a new trail in Public Joint Stock Company culture when it launched in 1997 with a record Initial Public Offering (IPO) of AED 1 billion, has already generated over AED 1.2 billion in profits, adding substantial value for its 42,000 UAE national shareholders, and playing a lead role in re-energizing the real-estate sector in the region. In 1999 the Company posted distributable profits of AED 200 million, followed by AED 348 million and AED 449 million in 2000 and 2001 respectively.

In the first half of 2002, the Company announced the launch of Dubai Bank, its most recent subsidiary, which is expected to set new standards in the region's banking sector. The new institution, which is chaired by His Highness Sheikh Hamdan bin Mohammed Al Maktoum, is scheduled to commence full-scale operations next month.

EMAAR also launched EMRILL, a joint venture with the UK-based Carillion plc, providing property and facilities management services. Additionally, the fully owned subsidiary of EMAAR, Amlak Finance, which is the UAE's first and only mortgage finance company, registered a much-improved performance in the first half of 2002.

A new technology services company has also commenced operations, and will be formally launched shortly.

Mr. Mohamed Ali Alabbar, Chairman, EMAAR Properties said: "The real-estate market in Dubai is on a high-growth curve, driven by huge customer demand. During the first half of 2002 we launched two new residential projects; Meadows (formerly known as PA 2) villa development at Emirates Hills and The Greens apartment project overlooking Emirates Golf Club, both of which have received a huge response from UAE national and expatriate investors."

The first five phases of Meadows, comprising over 800 villas, were quickly sold out when bookings opened in July this year. Similarly, The Greens apartment project, which marks EMAAR's entry into the affordable housing segment, also met with tremendous investor response with over 600 one, two, three and four bedroom units snapped up in a matter of days.

In addition, following the complete sell-out of the first phase of the Company's prestigious Dubai Marina development, Marina 1, which comprises of six towers housing over 1,500 residential units, the company has already begun bookings for the next phase of the project, Marina 4, a dynamic five building complex located on the eastern side of Dubai Marina.

The Company also recently announced the launch of the first phase of construction comprising of 8,888 new residential units across its various world-class projects in Dubai. In addition EMAAR also commenced bookings for new residential units priced upwards of AED 188,888, from August 11, 2002.

Mr. Alabbar added that, "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 practice in all its real-estate projects, while continuously adapting to the demands of its valued customers and stakeholders".

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

The Company, which is comprised of more than 42,000 shareholders, has contributed significantly in shaping the future of Dubai by invigorating the real estate sector and opening new ways of energising and diversifying the economy of Dubai.