Emaar strides into China

Mr Mohamed Ali Alabbar, Chairman, Emaar Properties, who returned from China on Friday, said the office in the Jiushi office building in Shanghai will open end-July. The office will steer Emaar's ambitious investment plans for the world's second largest economy.

Emaar's multi-pronged approach to tap into the Chinese economy, which gained a 9.9 per cent growth in 2005, will flag off with the development of modern, community-centric lifestyle developments in Beijing and Shanghai. These residential projects will feature the entire spectrum of amenities including fitness centers, retail malls, schools as well as hotels.

"Emaar's entry into China completes a strategic leg of our international expansion programme that focused on three booming markets - the Middle East, the India Subcontinent and now China," said Mr Alabbar. "Following its entry into the World Trade Organization in 2001 and market reforms gaining pace, the Chinese economy has been growing at an impressive rate. Its contribution to the global GDP growth is more than that of America as well as that of the three next-largest emerging economies - India, Brazil and Russia. Underpinning this growth momentum is the property sector."

Beijing and Shanghai are two focal points for Emaar's entry into this mega market. In particular, Beijing will be the venue for the 2008 Olympics and Shanghai will host the 2010 World Expo. Apart from Beijing and Shanghai, Emaar is also looking at other growing cities in the country for more real estate development projects. The company will also look at strategic investments in healthcare and education.

World-over, experts are focusing on China as one of the most attractive economies for foreign investment. Over the years, China has attracted the lion's share of foreign direct investment (FDI) in the Asia-Pacific region; 2005 saw the highest level of FDI inflow of AED 264 billion (US$72 billion). The world's largest holder of foreign exchange reserves, China's economy is expected to grow by 10 per cent in the second quarter and full year 2006.

"China's growth prospects are not for the short-term," said Mr Alabbar. "The growth is backed by strong fundamentals and a high pool of skilled workforce. Emaar's expansion into China follows extensive market research and is in line with our Vision 2010 of becoming one of the most valuable companies in the world in the next four years."

The Organization for Economic Co-operation and Development (OECD) report for China observes that "government policies have moved markedly towards allowing market forces to influence economic activity. The policy changes have allowed a much increased role for the private sector and substantial foreign investment."

Emaar has already made rapid strides internationally with the acquisition of America's "best builder" John Laing Homes for AED 3.856 billion (US$1.050 billion), a strategic move that has firmly perched Emaar in the international spotlight. This complements a string of development projects in Saudi Arabia, India, Pakistan, Turkey, Egypt, Syria, Morocco and Tunisia.
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Note to Editors

About Emaar Properties PJSC:
Emaar Properties, the Dubai-based Public Joint Stock Company and one of the world's largest real estate companies, is listed on the Dubai Financial Market and is part of the Dow Jones Arabia Titans Index. The company recently announced that its net profits for the first quarter ended 31 March 2006 reached AED 1.517 billion (US$413.1 million) - a significant rise on the AED 1.325 billion (US$361.0 million) for the equivalent period from the prior year. Emaar's net profits for the year ended 31 December, 2005 climbed 180 per cent, to a record AED 4.731 billion (US$1.288 billion). The figures represent a substantial increase on the AED 1.691 billion (US$460 million) for the year 2004, and reflect the significant growth the company has undergone since its inception in 1997.

With more than 14,000 homes handed over to satisfied customers, Emaar has several major real estate projects under various stages of development in Dubai including Arabian Ranches, Dubai Marina, Emirates Hills, The Views, The Meadows, The Springs, The Lakes and The Greens. The company also owns and manages the Gold and Diamond Park.

Emaar has started construction on its most ambitious project to date, the AED 73 billion (US$20 billion) Burj Dubai Downtown development, which comprises the Burj Dubai - the tallest tower in the world when completed in 2008, The Dubai Mall, Burj Dubai Business Hub, The Lofts, The Old Town, The Old Town Island, Burj Dubai Boulevard, The Residences, Burj Views, man-made lakes, landscaped parks and gardens.

The company has joint ventures and projects across the region covering India, Egypt, Turkey, Morocco, Bahrain, Syria, Jordan, Pakistan, Lebanon, Tunisia and Saudi Arabia. Major international projects include: Cairo Heights and Smart Village, both in Egypt; Boulder Hills, a world-class leisure and residential community in Hyderabad, India; multiple resort projects in Morocco, including Amelkis II & III and Bahia Bay, luxury residential golfing communities; Eighth Gate project in Damascus, the city's first master planned community; and Lakeside in Istanbul, a landmark development for Turkey's cultural and commercial hub. In Saudi Arabia, Emaar is embarking on the creation of the AED 98 billion (US$26.6 billion) King Abdullah Economic City, a mixed use development covering 55 million square metres of greenfield land with a 35 km shoreline close to the port city of Jeddah.

Last year the property developer announced plans to aggressively expand the retail sector with investments of over AED 15 billion (US$4 billion) to develop approximately 150 malls in the larger emerging markets of the Middle East, North Africa (MENA) and the Indian subcontinent.

While continuing to actively pursue expansion in its core business of innovative, high quality real estate development, Emaar has diversified into related business lines to further build value for its 59,000 shareholders, which includes the Government of Dubai. Emaar owns and manages EMRILL, a joint venture with the UK-based Carillion which provides innovative property and facilities management services. Emaar also holds 30 per cent equity in Dubai Bank, focused on retail and commercial banking and is the majority shareholder in Amlak Finance, UAE's leading Islamic home financing company.