Emaar Properties

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Emaar Properties
Type Public joint-stock company (PJSC)
Traded as DFMEMAAR
Industry Real estate
Founded 1997
Headquarters Dubai, United Arab Emirates
Key people Mohamed Alabbar, chairman
Services Commercial and residential property development
Revenue Increase $3.307 billion (2010)[1]
Employees 10,000[2]
Subsidiaries Emaar Properties, Emaar International, Emaar Hospitality, Emaar Malls, Emaar Hotels & Resorts, Emaar Retail, Burj Khalifa, Emaar Community Management, Emaar Technologies, Emaar Industries and Investments, Amlak Finance, Emaar Investment Holdings
Website www.emaar.com/en/index.aspx

Emaar Properties is a real estate development company located in the United Arab Emirates (UAE).[2] It is a public joint-stock company and is listed on the Dubai Financial Market as DFMEMAAR.[3] The company operates internationally providing property development and management services.[3] Emaar Properties is one of the largest real estate developers in the UAE and is known for various large-scale projects such as developing Burj Khalifa, the tallest building in the world.[2][4][5]

UAE projects[edit]

The Dubai Mall, developed by Emaar Properties, is the world's largest shopping mall.[6] It marked its soft opening in November 2008 and it was inaugurated in May 2009. The Dubai Mall has over 1,200 stores and 200 restaurants.[7] It is also home to Dubai Aquarium and Underwater Zoo, KidZania, Dubai Ice Rink and the largest cinema complex in the region, Reel Cinemas.[8][9][10][11]

Another large development project commissioned by Emaar Properties of the Downtown Dubai area is the Dubai Fountain. The Dubai Fountain is the tallest performing fountain in the world that began operating in the spring of 2009.[12] The length of the fountain spreads out to be twice the length of a football field (275 meters).[12]

Emaar also developed the world's tallest building, Burj Khalifa, which opened in 2010.[13][14] The building is 2,716.5 feet tall with 160 storeys that are primarily for residential purposes.[14] It is named after the Abu Dhabi ruler Sheikh Khalifa bin Zayed Al Nahyan.[14]

The Springs community

Emaar Properties has also developed a collection of neighborhoods throughout Dubai including Arabian Ranches, Dubai Marina, The Greens, The Meadows, The Lakes, and The Springs.[15] In 2013, Emaar launched several other projects including The Address Residence Fountain Views I, II, and III, The Address Residence Sky View, Burj Vista, Boulevard Point and Vida Residence--all in Downtown Dubai.[16]

A new addition to Downtown Dubai from Emaar is The Opera District. Key features include the Dubai Opera, the country's first dedicated opera house as well as an array of design studios and other lifestyle amenities.[17]

In other strategic partnerships, Emaar and Meraas Holding will develop Dubai Hills Estate, the first phase of MBR City. The first residential apartment complex in Dubai Hills Estate, Mulberry at Park Heights, has been launched for sale.[15]

International projects[edit]

Emaar Properties began expanding its retail business internationally in 2005 when it announced its plans to develop 100 shopping malls across the Middle East.[18] The project involved investing approximately $4 billion over a period of five years to launch shopping malls in India, Saudi Arabia, Egypt, Algeria, Pakistan, and other regions.[18] Through various subsidiaries, Emaar has established property developments and projects in India, Jordan, Egypt, Lebanon, Morocco, the United States, Pakistan, Saudi Arabia, Syria, and Turkey.[19]

Egypt[edit]

In 2002, Emaar Misr, an Egyptian subsidiary of Emaar Properties, completed the redevelopment of the Bibliotheca Alexandrina on the eastern harbor of Alexandria.[20] The new library facility stands almost exactly where the ancient Library of Alexandria existed.[21]

Emaar Misr began working on a $4 billion development project in 2005 initially called Cairo Heights that was later renamed Uptown Cairo.[22] The project included building up an area as a residential, commercial, and recreational community that was completed in 2012.[23][24]

In 2008, Emaar Misr began working on a tourist resort called Marassi in Sidi Abdel Rahman, located along the Mediterranean coast, that includes a hotel with 3,000 rooms, a marina, and a golf course.[25]

India[edit]

Emaar MGF has a portfolio of projects in several destinations in India, covering residential, commercial, and hospitality. It is the joint venture of Emaar Properties PJSC with MGF Developments Limited of India.[26] [27]

Hyderabad International Convention Centre was developed by Emaar Properties and completed in December 2005.[28] The convention center was built to manage a seating capacity of 4,000 with the ability to extend its capacity to 6,500 seats.[28] It was built by Cyberabad Convention Centre Private Limited (CCCPL), a joint venture between the Dubai-based Emaar Properties and the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).[29]

Emaar MGF owns approximately 11,000 acres of land in India and will continue to expand its current hospitality business in the country along with develop properties for residential living over the next four to five years.[27]

Saudi Arabia[edit]

The King Abdullah Economic City (KAEC), developed by Emaar, The Economic City (Emaar E.C.) is listed on Tadawul, the Saudi stock exchange, and is the largest private investment ever in Saudi Arabia.[30] The project includes the development of a special economic zone along the Red Sea coast 60 miles north of Jeddah.[31][32] Emaar E.C. also heads the development of the KAEC port. The port is the first privately-owned port for Saudi Arabia and was first opened in January 2014, but plans to further expand have been set in place after the generation of new financing.[31] The KAEC development is projected to be about the same size as Washington, D.C. when completed and the zone is estimated to house approximately 2 million people and assist in aiding the Saudi Arabian economy in expanding beyond oil to light and shipping industry.[31]

Syria[edit]

Emaar Properties first announced its plans for a large scale development project in Syria in 2006.[33] The development, known as The Eighth Gate, includes three zones: a commercial center, waterfront and residential zone, and tourist area.[34] The project is a joint venture between Emaar Properties and IGO, an offshore investment and property development company.[34] The design for the project is based on the ancient history of Damascus in its architectural style influenced by traditional Islamic design and the development includes a signature gate marking the access to the area's main plaza.[34]

Turkey[edit]

The Tuscan Valley development was Emaar's first project in Turkey.[35] Emaar completed the first phase of the Tuscan Valley venture by 2007 which included the development of luxury villas and commercial space just outside of Istanbul.[30] In 2012, Emaar began developing an Emaar Square project.[35] The project plans include building Turkey's largest shopping mall and five-star hotels.[35]

Emaar in Headlines[edit]

Labor Issues[edit]

The UAE has a large population of expatriate construction workers, mainly from India, Pakistan, and the Philippines. With trade unions outlawed, the poor conditions and low wages have brought the UAE some unwelcome headlines.[36][37] In Dubai, the Government has done much to guarantee limited rights to such workers, particularly with regard to ensuring that they are paid on time. However, from time to time, labor disputes, strikes and protests do still occur. With laborers often on a daily wage of around US$8, and the land that Emaar builds its developments on being essentially free, the price of Dubai property seems to be somewhat disconnected from the fundamentals.[38][39][40][41]

In July 2010 American businessman Lionel Lombard filed a $61 million lawsuit against Emaar and its Chairman Mohamed Alabbar in a California federal court alleging he had been falsely imprisoned for 2 years and tortured in UAE prisons because he had spoken up on behalf of Emaar foreign workers and alleged Apartheid was being practiced by Emaar.[42] [43]

Boulder Hills Controversy[edit]

Located in Hyderabad, Emaar’s Boulder Hills Hyderabad development is a leisure and residential community featuring an 18-hole championship golf course, villas, apartments, and a five star resort style hotel.

This property is in dispute for land acquisition, survey nos in the dispute are 27/3, 28/3 and more, with the case pending in Indian courts. WP is filed in AP high court and the ownership of the land has been not adjudicated.[44] APIIC has been embroiled in a controversy over land acquisition for the Boulder Hills project and the eventual dilution of public stake from 26% to 4%, by drastically undervaluing the land in the project (see Andhra Pradesh Industrial Infrastructure Corporation, 'EMAAR-MGF Controversy').[45][46] There are also allegations that government officials were allocated parcels of the property at deeply discounted prices compared to the prevailing market price.[47]

Commonwealth Games Village[edit]

The controversial 2010 Commonwealth Games Village was built by Emaar-MGF. Post-Commonwealth Games anti-corruption drive by confiscating the Rs.183-crore bank guarantee from Emaar-MGF, builders of the Games Village. Emaar-MGF, however, denied that the bank guarantee was confiscated. Action against Emaar-MGF came a day after the Delhi Development Authority (DDA) came out with findings of irregularities by the builder in the construction of the Village.[48]

John Laing Homes[edit]

On Thursday, February 19, 2009 US homebuilder John Laing Homes, a subsidiary of Emaar Properties, sought Chapter 11 bankruptcy protection in the US Court for the District of Delaware, due to a sharp decline in home sales. The company listed assets of more than $1 billion (Dh3.678 billion) and debt of $500 million to $1 billion in Chapter 11 documents filed in the Bankruptcy Court in Delaware. Emaar Properties had acquired John Laing Homes, the second largest privately held homebuilder in the U.S., creating one of the world’s largest real estate developers in residential homebuilding. The AED 3.856 billion (US$1.050 billion) cash transaction has been unanimously approved by the boards of directors of both companies and closed on June 1, 2006.

On February 22, 2009 Emaar issued the following statement about John Laing Homes filing for bankruptcy:

John Laing Homes, one of the largest privately held homebuilders in the United States, has announced that it, along with certain of its affiliates, have elected to file Chapter 11 petitions in the US Court for the District of Delaware. John Laing Homes anticipates that the Chapter 11 process will allow it to significantly reduce debt from its balance sheet while facilitating a strategic reorganization of the company, which will place it in the strongest possible position to sustain its momentum despite extremely challenging market conditions.[49]

Emaar MGF[edit]

This entity has been caught in various controversies in India and is being investigated by the Enforcement Directorate for foreign exchange violations and by the Central Bureau of Investigation for corruption allegations.[50][51][52][53][54]

References[edit]

  1. ^ "2010 Annual Report - Emaar Financials Final 10 March 2011". Emaar.com.
  2. ^ a b c "Emaar Properties PJSC | Company profile from Hoover's | +971-4-367-3333". Hoovers.com. 2010-10-21. Retrieved 2011-11-14. 
  3. ^ a b "Emaar Properties Profile and Executives". Bloomberg. Retrieved 15 September 2014. 
  4. ^ Bob Cramer (01 July 2014). "Emaar Properties PJSC Is Down Over Last Month But Can Rebound". Bidness ETC. Retrieved 15 September 2014. 
  5. ^ Madhurima Nandy (30 March 2011). "Emaar Takes Stock of Indian Assets". Wall Street Journal. Retrieved 15 September 2014. 
  6. ^ Archana Narayanan (11 June 2014). "UPDATE 2-Dubai's Emaar Malls attracts strong demand for debut sukuk". Reuters. Retrieved 15 September 2014. 
  7. ^ JOHN ARLIDGE (05 July 2014). "Dubai Mall is the most popular place on the planet. Why?". Australian Magazine. Retrieved 15 September 2014. 
  8. ^ "Dubai Mall unveils giant octopus attraction". Arabian Business. 24 July 2014. Retrieved 15 September 2014. 
  9. ^ "Dubai Mall to open UAE’s largest Cineplex". Gulf News. 26 May 2009. Retrieved 15 September 2014. 
  10. ^ "Dubai Ice Rink". The Dubai Mall. Retrieved 15 September 2014. 
  11. ^ "KidZania". The Dubai Mall. Retrieved 15 September 2014. 
  12. ^ a b Sharmila Dhal (01 September 2011). "Dubai Fountain: A splash of notes". Gulf News. Retrieved 15 September 2014. 
  13. ^ Bianchi, Stefania; Critchlow, Andrew (05 January 2010). "World's Tallest Skyscraper Opens in Dubai". Wall Street Journal. Retrieved 15 September 2014. 
  14. ^ a b c Tom Petruno (04 January 2010). "Monument to excess? Dubai opens world's tallest building". Los Angeles Times. Retrieved 15 September 2014. 
  15. ^ a b Andy Sambidge (10 June 2013). "Emaar launches new Dubai residential project". Arabian Business. Retrieved 15 September 2014. 
  16. ^ Aarti Nagraj (16 September 2013). "Emaar Launches Sale Of The Address Residence In Dubai". Gulf Business. Retrieved 15 September 2014. 
  17. ^ Aarti Nagraj (18 March 2014). "Emaar Reveals Details About 2,000-Seat Opera House In Dubai". Gulf Business. Retrieved 15 September 2014. 
  18. ^ a b "Dubai developer targets India". Indian Express. 22 September 2005. Retrieved 18 September 2014. 
  19. ^ "Emaar Properties-Premier Developer of Integrated Lifestyle Communities". Emaar Properties. Retrieved 18 September 2014. 
  20. ^ Sean Cronin (27 May 2006). "Emaar books Egypt library job". ConstructionWeek. Retrieved 18 September 2014. 
  21. ^ "Emaar subsidiary signs pact for project in Egypt". UAE Interact. 22 May 2006. Retrieved 18 September 2014. 
  22. ^ "Emaar Misr signs MoU with Egypt’s Bibliotheca Alexandrina for waterfront redevelopment project". Albawaba Business. 22 May 2006. Retrieved 18 September 2014. 
  23. ^ Trevor Lloyd-Jones (18 August 2005). "Emaar unveils blueprint for US$4 billion Cairo Heights". Business Intelligence Middle East. Retrieved 18 September 2014. 
  24. ^ "Emaar Misr Makes Strong Progress on Marassi for on-schedule Completion". Dubai Chronicle. 08 February 2009. Retrieved 18 September 2014. 
  25. ^ Amena Bakr (03 September 2008). "Egypt revels in tourism boom". The National. Retrieved 18 September 2014. 
  26. ^ \ Emaar Mgf
  27. ^ a b "Emaar MGF Plans to Take Affordable Route". HighBeam. 05 December 2013. Retrieved 18 September 2014. 
  28. ^ a b "Emaar mulls more projects in India". Business Standard. 09 January 2006. Retrieved 18 September 2014. 
  29. ^ "Why did the law take forever to catch up with Emaar MGF?". The Business Standard. 7 June 2013. 
  30. ^ a b "The Sand Castle: Export Dubai". PBS. 24 July 2007. Retrieved 18 September 2014. 
  31. ^ a b c "Saudi's Emaar EC says port unit agrees capital hike to fund expansion". Reuters. 06 July 2014. Retrieved 18 September 2014. 
  32. ^ Covell, Jeffrey L. (2014). International Directory of Company Histories. Ed. Jay P. Pederson volume 148. Detroit: St. James Press. 
  33. ^ "$500m mixed-use project to be developed by Emaar in Syria". Albawaba Business. 12 June 2006. Retrieved 18 September 2014. 
  34. ^ a b c "Emaar unveils massive Syrian expansion plan". Khaleej Times. 19 October 2005. Retrieved 18 September 2014. 
  35. ^ a b c Arif Sharif (19 December 2012). "Emaar Obtains $500 Million Financing Facility for Turkey Project". Bloomberg. Retrieved 18 September 2014. 
  36. ^ "Human Rights Watch - Building Towers, Cheating Workers: Exploitation of Migrant Construction Workers in the United Arab Emirates". Hrw.org. 2006-11-11. Retrieved 2011-11-14. 
  37. ^ "Human Rights Watch - Building Towers, Cheating Workers: Exploitation of Migrant Construction Workers in the United Arab Emirates - PDF" (PDF). Retrieved 2011-11-14. 
  38. ^ Deparle, Jason (2007-08-06). "New York Times - Fearful of Restive Foreign Labor, Dubai Eyes Reforms". Dubai;United Arab Emirates: Nytimes.com. Retrieved 2011-11-14. 
  39. ^ "Middle East Times - Strike rages on at world's tallest tower in Dubai". Metimes.com. Retrieved 2011-11-14. 
  40. ^ "Arabtec strike deal raises costs 1%". ArabianBusiness.com. 2007-11-12. Retrieved 2011-11-14. 
  41. ^ "Al Jazeera English Burj Dubai owners say strike over". English.aljazeera.net. Retrieved 2011-11-14. 
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  43. ^ "Dubai's Emaar faces US wrongful imprisonment case, Reuters". Reuters.com. Retrieved 2011-11-14. 
  44. ^ "AP High Court". Hc.ap.nic.in. Retrieved 2011-11-14. 
  45. ^ "APIIC loses prime land in blind deal". The Times of India. 11 August 2010. 
  46. ^ "Acharya's arrest is latest in Emaar's JV hiccups in India". The Business Standard. 1 February 2012. 
  47. ^ Sengupta, Sudipta (13 August 2010). "Babus, politicos got prime Emaar plots?". Times of India. 
  48. ^ "Emaar-MGF distances itself from Commonwealth fiasco". Indian Express. 2010-09-24. Retrieved 2011-11-14. 
  49. ^ "John Laing Homes Statement" (PDF). DFM.ae. Dubai Financial Market. February 22, 2009.
  50. ^ "Why did the law take forever to catch up with Emaar MGF?". The Business Standard. 7 June 2013. 
  51. ^ "ED sends Emaar notice for FEMA violation". The Indian Express. 8 June 2013. 
  52. ^ "India Accuses Emaar MGF of Violating Rules". The Wall Street Journal. 4 June 2013. 
  53. ^ "CBI seeks 25 days to complete probe in Emaar scam". The Hindu. 8 September 2012. 
  54. ^ "CBI digs deep into Emaar MGF, grills MD Shravan Gupta". Moneycontrol.com. 11 November 2011. 

External links[edit]