Emaar UAE
Dubai, Emaar’s base and our home, has provided the foundation for our rapid growth and achievements since 1997. in Vision 2010, Emaar UAE is our first growth engine. Emaar UAE has propelled us to greater success that we had ever envisioned, to the rank of the undisputed leader and innovative pioneer of the UAE property market. Dubai’s success story is Emaar’s success story. We have grown in tandem with our Emirate. Even as we shaped our city’s skyline, we have shaped our own future.
With several ongoing master-planned developments that have yet to be brought to fruiting, Emaar UAE will continue to play a pivotal role in the Emaar Group’s future growth. Led by its iconic project, the Burj Dubai property development, Emaar UAE will contribute to the Group’s profitable performance for years to come. Emaar UAE will focus on the development of a strong design database as well as processes and systems, providing a perfected business model that can be replicated beyond Dubai by Emaar’s other growth engines.
Emaar International
Dubai sits at the heart of a largely untapped mega-market, surrounded by nations forming a collective market of more than 2 billion potential consumers. With the striking absence of a business model like Emaar in any of these neighboring countries, it is imperative that Emaar capitalize on these opportunities and leverage on its strong brand-name to enter these different, unchartered territories. Categorized under Emaar International, our Group’s second growth engine, each market can be managed as a distinct economic block. In our bid for global expansion, two countries are emerging as the crown jewels of our international business: Saudi Arabia and India.
Saudi Arabia
Saudi Arabia’s economy is the proverbial “sleeping giant”. Expanding rapidly at an estimated 6.4 percent in 2005, Saudi Arabia’s oil dominated economy is the largest in the Arab world. Utilizing oil revenues to finance infrastructure development and modernization programs, Saudi Arabia aims to diversify its economic base and bring an increase number of nationals into the work force. Its recent accession to WTO membership will also kick-start Saudi Arabia’s growth in global trade beyond petrochemicals, driving FDI and economic growth. Real estate is in its infancy with the indigenous market supplies largely by small-scale Saudi-based developers. Master-planned communities do not exist as yet and foreign buyers currently do not have a market presence here. However, with its forward-looking leadership, Saudi Arabia is entering a renaissance as a property market. Growing in tandem with its fast-growing and largely youthful population is a new professional class, whose property-related products in the industrial, commercial, residential, retail and financial sectors.
Against this scenario, Emaar is proud to make real-estate history with the “King Abdullah Economic City”, a landmark AED 110.1 billion (USD 30 billion), master-planned development. Located on 5.451 hectares of coastal land by the Red Sea, the “King Abdullah Economic City” incorporates seven distinct zones, including a Port Zone. Tthe “King Abdullah Economic City” will create new job opportunities, encourage private investment, support Saudi Arabia’s economic growth and diversification, boost higher education and create a high quality destination for living, working and leisure.
India
One of the fastest-growing large economies in the world, India is experiencing dramatic and unprecedented change. The country is endowed with vast natural and human resources, which comprise a population of around one billion people who are predominantly English-speaking. India has powered its rapid growth through its dominance in the IT industry with a combination of abundant talent and low cost structures. The country represents a massive economic opportunity, both as a global base as well as a domestic market. After decades of economic isolationism, India is implementing a reform process which is bringing the economy into the global arena. India’s Prime Minister Manmohan Singh said in a recent interview with The McKinsey Quarterly, “If I have any message, it is that it is our ambition to integrate our country into the evolving global economy. We accept the logic of globalization.”
The Indian economy has expanded by over 5 percent over the last five years and is expected to grow by almost 7 percent in 2005 and 2006. India is expected to be one of the world’s largest economies by mid-century. This growth will be driven by improvements in infrastructure and increased private consumption. Its billion-person population base, approximately half of which us under the age of 30, booming economy and burgeoning consumer demand will fuel a huge appetite for homes, shopping malls and other lifestyle property developments. Indeed, for Emaar, India beckons with rich prospects that will be instrumental tour organization’s future growth for decades to come.
Emaar Malls
The Dubai Mall, conceived as the world’s largest shopping mall and the anchor of our Burj Dubai development, marked out first foray into world-class retailing. Emaar Malls is a logical extension of our successful endeavor with The Dubai Mall. Incorporated as a wholly-owned subsidiary, Emaar Malls will build more than 150 shopping malls within the next five years across a vast territory, including the Middle East, North Africa and the Indian subcontinent. This region’s huge and youthful population, spurred by dreams and growing aspirations, armed by rising incomes, is perhaps one of the best-kept secrets in the global marketplace. Emaar Malls seek to satisfy this huge demand for lifestyle choices leveraging on the strategic alliances that we have already forged through Emaar International to accelerate the market entry process. Revenue would be derived from real-estate development as well as asset management. Our strategy for Emaar Malls will be to procure land at competitive prices and unlock their potentials by developing them into retails properties of enhanced real-estate value. We will be working with retails strategic partners to exponentially scale up the concept of Emaar Malls.
Emaar Hospitality and Leisure
Our landmark agreement with Giorgio Armani Spa to develop an international collection of Armani resorts in key cities across the globe was a defining moment for Emaar. Further to this joint venture, we established a new growth pillar, Emaar Hospitality and Leisure, with a mission to develop and manage the finest branded resorts that will allow Emaar to leapfrog onto the global stage.
With this new business line, we also tap the huge potential of the region’s leisure market. Emaar is committed to a holistic approach to property development, going beyond homes to provide a comprehensive range of world-class lifestyle and leisure facilities for our customers. With the Dubai marina Yacht Club, the championship Montgomerie, Arabian Ranches Golf Club and the Dubai Polo Club, Emaar is en route to establishing the Group as the foremost name in leisure today and tomorrow. And as we expand across the region, Emaar will plant its flag in countries such as Morocco, India and Saudi Arabia with premier country clubs and golf courses.
Emaar Finance and Services
Strategic diversification is crucial to our goal of long-term growth. We took the decision to leverage on our business knowledge, market reputation and Emaar’s brand equity to provide an excellent value proposition to the finance sector. Our finance and service operations have strong potential as a growth engine, not only in Dubai but regionally. Islamic banking and finance, in particular, stands out with its great potential in this part of the world. In 2005, we added Emaar Industries and Emaar Financial Services to our present stable of finance businesses, namely, Dubai Bank and Amlak Finance. Emaar Industries serves to capitalize on the growing opportunities in the manufacturing sector by investing in existing businesses services, investment research as well as analysis to the region’s business community.
