Emaar plans to list its UAE Real Estate development business with an up to 30% equity offering. Their commitment to value creation for shareholders was highlighted by the company distributing a cash dividend of 15 per cent of the share capital, equivalent to AED 1.074 billion (US$ 292 million). "As Emaar's other businesses have grown and expanded, we wanted to ensure that investors who value the UAE Real Estate Development business the most, the foundation of Emaar’s success, can do so directly," Emaar's Chairman Mohamed Alabbar said in a statement published on Bourse Dubai's (the holding company for Dubai Financial Market) website. "This will ensure that the value of this business is properly recognized." 

This will be the DFM's first new listing in two and a half years. The last IPO on the DFM was by DXB Entertainments DXBE.DU, which began trading in December 2014. The company floated Emaar Malls in 2014, valuing the business at 37.7 billion dirhams ($10.27 billion). 

Profits increase in 2017

• Emaar Malls, H1 2017 net profit of AED 1.021 billion (US$ 278 million), 3 per cent higher than H1 2016 net profit of AED 987 million (US$ 269 million
• Emaar hospitality & leisure, commercial leasing and entertainment businesses 2017 revenue of AED 1.392 billion (US$ 388 million,) 7 per cent higher than the H1 2016 revenue of AED 1.298 billion (US$ 353 million)

Emaar’s key projects include:

• Dubai Creek Harbour, Downtown Dubai
• Dubai Hills Estate
• Emaar South
• Emaar Malls
• Address Boulevard in Downtown Dubai
• Rove Healthcare City
• Rove Trade Centre
• 51% stake in Namshi

Alabbar said the positive performance builds on Emaar’s ongoing focus on project delivery and being a customer-centric organisation. “Organisation-wide, we are marking a transformational change to strengthen project management and service excellence led by digital technology. At every stage of development, we place emphasis on being more efficient and responsive to the aspirations of our customers, and to create long-term value for our stakeholders.”

“This complements the transition of the nation into a smart economy led by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai. As a year-round tourism and retail destination, and with a focus on infrastructure development, the UAE has evolved as a global business and leisure hub, and through our projects, we are contributing to the nation in driving sustained economic growth.”

This growth was led by residential launches in Emaar’s flagship projects including Dubai Creek Harbour, Downtown Dubai, Dubai Hills Estate and Emaar South – the smart city hubs of the future. The new residential project launches in the first six months of the year included: Downtown Views II and Vida Dubai Mall in Downtown Dubai, Vida Residences in Dubai Marina, Creek Gate, Harbour Gate and Creek Rise in Dubai Creek Harbour, Park Heights I & II and Maple 3 in Dubai Hills Estate and Golf Views apartments and Urbana III stacked townhouses in Emaar South.

A highlight of Emaar’s property development portfolio was the completion of foundation work for the Dubai Creek Harbour Tower.

Emaar transformation focus:

• Stronger Project Management
• Improved efficiency
• Excellent digital service

Steady growth in recurring revenue Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, reported H1 2017 net profit of AED 1.021 billion (US$ 278 million), 3 per cent higher than H1 2016 net profit of AED 987 million (US$ 269 million). Emaar Malls revenue in H1 2017 is AED 1.624 billion (US$ 442 million), similar to H1 2016 revenue of AED 1.618 billion (US$ 441 million).

As part of the digital transformation initiatives, Emaar Malls acquired a 51 per cent stake in Namshi, the leading online fashion retailer in the Middle East. This complements its focus on multi-channel retailing, and creating long-term value for its stakeholders. At its second Annual General Meeting in April, Emaar Malls distributed 10 per cent of the share capital, equivalent to AED 1.301 billion (US$ 354 million) as cash dividend to the shareholders.

The shopping mall assets of Emaar Malls welcomed over 65 million visitors in the first half of 2017, an increase of 7 per cent over H1 2016.

The hospitality & leisure, commercial leasing and entertainment businesses of Emaar recorded H1 2017 revenue of AED 1.392 billion (US$ 388 million), which is 7 per cent higher than the H1 2016 revenue of AED 1.298 billion (US$ 353 million).

Emaar further strengthened its hospitality portfolio in the first half of the year with the opening of three properties – Address Boulevard in Downtown Dubai, Rove Healthcare City and Rove Trade Centre. Occupancy levels at Address Hotel + Resorts were 82 per cent, higher than industry average. ­­Today, the Group has over 27 upcoming projects in the pipeline in the UAE and in international markets.

One of the world’s largest real estate companies, Emaar has a land bank of about 188 million sq m in the UAE and key international markets. With a proven track-record in delivery, Emaar has delivered over 43,200 residential units in Dubai and other global markets since 2001.

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