Emaar Leaves Its Stakeholders Awestruck By Granting 100% Ownership

The emirate of scorching summers, glittering skies, royal sands, compelling thrills, captivating water fun, and adrenaline-pumping activities share several characteristics. Due to the distinctive qualities that each of the UAE’s imaginatively built emirates possesses, Emaar has made Dubai a significant economic and cultural powerhouse. The city, seen as a representation of affluence and compassion, takes pride in maintaining its uniqueness and leading the way in progressive expansion and growth.

From being based primarily on oil-reserves?to the one fuelled?by trade, tourism and innovation, the ideology has helped Dubai grow into a regional centre for the banking, airline, retail, and logistics.?Dubai’s development has further risen to the fore of reality to maintain its leadership in the ongoing race of economic expansion. It is anticipated that the real estate industry will expand significantly this and many years to come. And besides demand,?Dubai property prices are also expected to continue rising in 2023.

Many developers have come forward with numerous projects and offers to grab bigger chunk of potential investors in the market. However, with the increasing interest, the general public is curious as to how Emaar’s next significant announcement would impact the economy, society and Dubai?real estate sector.

Emaar Properties – Under the lens

Emaar Properties is one of the most admired and lucrative real estate development companies in the world. It creates new lifestyles with an emphasis on design excellence, build quality, and timely delivery. The company has demonstrated expertise in?properties for sale in Dubai, shopping malls & retail, and hospitality & leisure.

Emaar said last month that it had reached an agreement with Dubai Holdings to fully acquire Dubai Creek Harbour for $2.04 billion, supporting its assertion that it was “sharpening its strategy to become one of the world’s most valuable, most innovative, and most admired corporations.” The top real estate developer claims this will be compensated equally in cash and Emaar shares. Moreover, the company left its stakeholders awestruck by making 100% foreign ownership effective, which will ultimately positively impactproperties for sale in Dubai.

Emaar’s 100% foreign ownership is effective!

The globally recognised real estate developer has crafted its reputation by delivering state-of-the-art?properties for sale in Dubai. So far, it has left no stone unturned in doing the best for Dubai real estate sector. The largest listed developer in Dubai, Emaar Properties, has now permitted 100 percent foreign ownership in response to this significant statement. Following approvals from shareholders, the Securities and Commodities Authority, and the Dubai Economy and Tourism Department, the company changed the percentage of foreign ownership of the real estate company’s shares from 49% to 100%, it announced to the Dubai Financial Market, where its shares are traded.

According to Emaar, there is no minimum shareholding requirement for the nationals or GCC nationals in the corporation, and there is no shareholding restriction for non-UAE nationals. All of the company’s shares are nominal.?The business initially disclosed the adjustments following its general assembly on September 21.

The company Emaar, best known for constructing Dubai’s Burj Khalifa, reported a profit in the second quarter attributable to owners of the company that increased by more than 100% to AED2.06 billion ($561.3 million), while revenue increased by 8% year over year to AED6.94 billion. Additionally, the company’s acquisition of Dubai Creek Harbour from Dubai Holding was approved by shareholders last month. Emaar agreed to pay AED7.5 billion to Dubai Holding in exchange for acquiring Dubai Creek Harbour.

Behind the curtains – Who set the wheels in motion for this big step?

For approval, Emaar planned a shareholder meeting for September 21. It was anticipated that the new capital would be AED8.83 with the issuance of 659.05 million shares at AED1 each.

Shareholders were asked to approve a “special resolution” to remove the requirement that UAE and GCC citizens own a minimum proportion of the company’s shares. “There was no minimum shareholding requirement for UAE nationals and GCC nationals in the enterprise,” the special resolution stated. Additionally, non-UAE nationals had no shareholding restrictions. It was permitted for all of the company’s shares to be nominal.

Shareholders of Emaar appeared to be fully behind the developer’s most recent decisions. Within the first few minutes of DFM opening, the stock increased 4.18 percent, surpassing Dh6. Additionally, a month earlier, the stock had a 12.37 million volume and was trading at Dh6.21. 40% of Emaar’s investors were foreign investors at the time.

Another big announcement

Emaar Properties made progress toward finalising the purchase of Dubai Creek Harbour from Dubai Holding. The leading UAE real estate company also completed the sale of Namshi to Noon, its online retail platform. The two transactions’ final steps were taken after the company’s shareholders approved the management’s choices. According to a business representative, the general assembly meeting marked the last stage in the conclusion of two significant deals for Emaar.

It represents the company’s continuous objective to maximise the core business while continuing to provide exceptional value for our shareholders. Emaar disclosed last month that it had reached an agreement with Dubai Holdings to purchase Dubai Creek Harbour in its whole for AED7.5 billion ($2.04 billion), to be paid equally in cash and Emaar shares.

According to the business, the motion to buy assets from Dubai Holding and to issue Dubai Holding a mandatory convertible bond with a total face value of AED3.75 billion was approved by the company’s shareholders. This is the equity component of the acquisition agreement, which will cost AED7.5 billion. Due to the purchase, Dubai Holding will become Emaar’s second-largest shareholder, significantly contributing to the diversification of Dubai’s economy.

Hurdeles in Dubai Creek Harbour Project

Emaar Properties’ share capital will increase to AED8.83 billion due to the obligatory convertible bond being converted into 659 million additional company shares. The Dubai Stream Harbour project, which offers breathtaking views of the Burj Khalifa and the Downtown area from above the creek, recently encountered a significant issue. Even after concerns about the project’s progress arose,?property agents?continued to utilise photographs of it in web advertisements.

The Ras Al Khor wildlife refuge is only five minutes away, and Dubai International Airport is about ten minutes away by car. According to the company, Emaar’s shareholders approved the sale of Namshi to Noon for a total cash consideration of AED1.231 billion ($335.2 million). This represents a premium of AED127 million over the total investment. Emaar Malls Management, a fully-owned subsidiary of Emaar Properties, is the owner of Namshi.

According to a majority of?estate agents in Dubai,?the transaction is an example of Emaar’s strategy to sell assets that are not of its main business and reinvest the proceeds into the real estate development industry to strengthen its foundation and provide long-term value for shareholders.?You can also take a look at?new Emaar projects for sale till 2025?and plan your investment accordingly.

Subject to several requirements being satisfied, including, among other things, receiving final regulatory clearances, the transaction is anticipated to close in the upcoming months. A specific resolution to abolish the required minimum investment in the company for GCC and UAE citizens was also passed by shareholders. This would imply that non-UAE nationals would not be subject to shareholding restrictions.