The newly structured company, while focusing on its core competency of property development, will facilitate Emaar’s diversification into six new business segments – retail, education, healthcare, finance, industry and hospitality & leisure. Emaar’s international markets and business segments will henceforth operate as stand-alone profit centres converging into this central entity.
The ninth AGM, conducted in the presence of Emaar’s Board of Directors, senior executives and shareholders, approved the company’s annual results for the year ended December 31, 2006; the declaration of transfers to reserve and the appointment of auditors for the year 2007. The AGM was also to ratify the Board’s proposal on the dividend for the year 2006.
Powered by the strategic acquisitions/ expansion and supported by robust sales within the region, Emaar recorded an impressive growth of 35 per cent in annual profits for the year ended December 31, 2006 over year 2005. The company posted net profits of AED 6.371 billion (US$1.735 billion) and annual revenue of AED 14.006 billion (US$3.813 billion) – an increase over 2005 by 68 per cent.
Emaar announced cash commitments of AED 10.661 billion (US$2.903 billion) for the year 2007 to drive developments in education, retail, hospitality and healthcare in the UAE; and master-planned projects and strategic businesses in new markets such as Canada, France and Lebanon, and established markets including Saudi Arabia, Morocco, Libya, Syria, India, Pakistan, USA and others. Emaar also highlighted its achievements internationally with its current land bank of 450 million sq m in key emerging markets.
‘The UAE Vice President and Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed Bin Rashid Al Maktoum is truly a source of strength, wisdom and inspiration for Emaar,’ said Mr Mohamed Ali Alabbar, Chairman, Emaar Properties. ‘He led Dubai to its transformation as a shining beacon of economic success and enlightened progress. He imparted to us an invaluable lesson on the imperative for clear, decisive and dynamic leadership.’
‘Today, leading other organisations in the region, Emaar is en route to becoming a one-stop provider of quality lifestyle options from property to retail, hospitality & leisure, education, healthcare, finance and industry. We defined our international markets and business segments in 2006 in line with our Vision 2010 to become one of the most valuable companies in the world,’ he said.
‘To optimize capital utilization, these businesses have to be managed as stand-alone units with independent profitability and cost structures. By equity restructuring for Emaar PJSC, we are preparing our businesses to be ready of independent listings within the next three years,’ said Mr Alabbar. ‘Equity structure, management structure and the execution of strategy are pivotal to the unlocking of an organisation’s optimal value.’
Mr Alabbar highlighted Emaar’s commitment to enhancing value for the company’s shareholders. ‘Our shareholders are ultimately our employers. We formulated Vision 2010 to generate continual and unprecedented shareholders’ value.’
He said that execution is the pillar of Emaar’s management philosophy. ‘For the better part of 2006, we created the infrastructure, land bank and strategic alliances to propel Emaar’s growth and expansion. Now is the time to deliver for which speed is paramount. With the right execution, Emaar will ride the crest of strong consumer demand to greater growth and achievements.’
Emaar had a landmark year in 2006 with several key international acquisitions and tie-ups, the launch of its international operations and the successful launch of the Emaar, The Economic City initial public offering in Saudi Arabia. The company also completed the construction of seven offices, six sales centres and two ‘Street of Dreams’ in its international markets including Saudi Arabia, Pakistan and India.
‘The productivity of our strategic acquisitions and joint ventures of 2006 – John Laing Homes, Hamptons International and Turner International Middle East – will be optimized from 2007 onwards,’ said Mr Alabbar. ‘We are also optimistic that Emaar MGF, our joint venture in India, will complete its IPO in 2007, which is in line with our goal of taking at least one business public every year.’
To meet the challenges of the future and accelerate growth momentum, Emaar will expressly focus on customer commitment and employee satisfaction. ‘We will make concerted efforts to quantify and measure our commitment to our customers by engaging external consultants to monitor and upgrade customer satisfaction. We also propose to assess, monitor and improve the level of employee satisfaction through third-party consultation as we believe that satisfied employees make for satisfied customers.’