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| Dubai Holdings and Emaar in merger talks | |
| Press Trust of India / Dubai June 27, 2009, 10:39 IST | |
Dubai Holdings, an investment arm of the government, is in merger talks with the Gulf's leading developer Emaar Properties, which, if materialise, would create a conglomerate worth $500 billion.
The proposed move would consolidate Emaar Properties with Dubai Properties, Sama Dubai and Tatweer, firms owned by Dubai Holdings.
Emaar — the company behind the world's tallest tower Burj Dubai –- is 32.5 per cent owned by Dubai Government. It is listed on the Dubai Financial Market.
The merger would also create the biggest developer in the Middle-East, North Africa and Asia.
Confirming merger talks, Mohammed Al-Gergawi, Chairman of Dubai Holdings, said: "Consolidating these three companies with Emaar is a natural progression in the evolution of the Dubai real estate landscape, providing benefits to all stakeholders. By joining forces, we will give the larger combined entity an unparalleled platform to optimise opportunities in its domestic and international markets."
Gergawi said that the combined entity has a clear and concise strategy, better positioning Dubai as the world's leading hub in real estate development and management.
A statement issued by Dubai Government said these entities have begun talks to combine their strengths to create a larger entity that is aimed at "rising up to the current challenges" as well as "to transform Dubai into a global city."
Mohammed Ali Al Abbar, Chairman of Emaar, said the move was driven by a shared vision and the creation of a world-class group which would be ideally positioned to dynamically help shape and support the ongoing development of Dubai as a world-leading hub.
"We look forward to working with Dubai Holdings with a view to completing these discussions soon and ensuring value accretion to our existing shareholders," he said.
The news came a day after after Nakheel, another Dubai master developer, announced that it was given the operational management of Istithmar, Dubai Maritime City and Dubai Multi-Commodities Centre (DMCC).
Sama Dubai owns projects worth more than 44 billion dirhams in Morocco and a further 91 billion dirhams in Tunisia.
Emaar, on the other hand, has more than 400 billion dirhams worth of projects under various phases of development in Saudi Arabia, Syria, Jordan, Lebanon, Egypt, Morocco, Algeria, Libya, India, Pakistan, Turkey, Indonesia, USA, Canada and the UK.
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