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Emaar says “no material impact” on company after Dubai hotel fire

The 63-story five-star Address Downtown went up in flames on New Year's Eve

Emaar Properties, owner of the hotel in Dubai that was engulfed by fire on the eve of the New Year, says there would be no financial bearing on the company following the incident.

In a statement to the Dubai Financial Market on January 3, the developer said that The Address Downtown “building and risk of fire are covered by insurance, so there should be no material impact on the company as a result of this incident.”

“The fire has been contained and the cause is being investigated by the company and the relevant authorities,” said Ayman Hamdy, Emaar’s general counsel.

Meanwhile, shares in Emaar fell sharply in heavy, early trade on Sunday when Dubai’s stock market resumed trading after weekend holidays.

The shares, which saw an oddly heavy sell-off, were down 2.1 per cent at AED5.57.

The bourse’s general index was 0.8 per cent down and most of the heavily traded stocks tumbled.

A massive fire broke out at the five-star luxury hotel on Thursday (December 31) near the location where several hundreds of thousands of people had gathered for the spectacular New Year’s Eve fireworks show.

The Dubai Media Office said the blaze that hit the 63-story hotel and residential building had left 14 people with minor injuries. There were no casualties.

The building, which was completed in 2008, is the 19th tallest building in Dubai and has 626 residential apartments and 196 rooms, including 25 suites.

Mohamed Alabbar, the company’s chairman, said yesterday that the developer is determined to restore the building “to all its glory and even surpass the splendid architectural standards. Further timelines and plans will be shared as they are finalised.”

He added that the company develops its projects to the highest standards of quality and as per international best practices.