UAE property giant to build ‘new Bali’
By Simeon Kerr and Roula Khalaf in Dubai
Published: April 23 2007 19:31 | Last updated: April 23 2007 19:31
Emaar Properties, the Dubai real estate giant, is set to launch a multi-billion dollar development in Indonesia to build a “new Bali”.
Mohamed Alabbar chairman of Emaar, said the resort and homes development on Lombok would be the last new international market tapped by the Dubai-backed developer.
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Mr Alabbar, a key adviser to Sheikh Mohamed bin Rashid Al Maktoum, the ruler of Dubai, said Emaar would expand in markets that it had already entered, with the US a key target.
The company will use John Laing Homes, the California company acquired last year, to expand its reach into Arizona, Florida and Washington DC, with a view to quadrupling profits to $1bn from the current $250m (€190m, £125m), he said.
“The time is right for acquisitions in the US,” he said. “With the [real estate] market slowing we might find some value there.”
After driving Dubai’s real estate industry, an aggressive expansion into new markets over the past three years has seen Emaar commit to projects with a development value of more than $60bn across 15 countries, including Saudi Arabia, India, Algeria and Egypt.
“The last country I want to do is Indonesia,” said Mr Alabbar. “We need to consolidate, to concentrate on our current portfolio.”
The Lombok development, expected to be signed next month in Jakarta, is a joint venture with the Indonesian government for a development over 1,500 acres on the island east of Bali.
Mr Alabbar is expected to unveil more domestic projects as Emaar receives new land from March’s land-for-shares swap deal with the government-owned Dubai Holding, another conglomerate in the emirate.
Emaar will transfer 2.4bn new shares, worth about $7.6bn, to the government through a convertible bond over five years starting in 2008, eventually placing 51 per cent of the company in government ownership, up from 32 per cent.
Mr Alabbar said the deal, an idea crafted by Emaar, would enable the company to pay back Dubai Holding in shares as it started to generate returns from the land.
But he played down concerns of frantic expansion in the Dubai real estate market, which analysts say could lead to an alarming oversupply of housing units.
Dubai should continue its rapid building programme, he said, especially in the low-cost housing sector, to damp prices.
Real estate agents estimate average property prices have risen by up to 35 per cent over the past year, continuing to drive up the cost of living.
Mr Alabbar said Dubai banks were not stretched on development and housing loans. “I’m not worried about a bubble. We have a global city under construction,” he said, noting that more international companies were moving in, including Halliburton.
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I WORKED FOR ALABBAR FOR 5 YEARS, and recently resigned as CEO of one of his companies.
I have visited Phoenix with him repeatedly, his private aircraft’s tail number is VP-BEN and its a global express registered in the Bahamas so that he can hide the travel bills from Emaars shareholders. Which he also ripped off, to the tune of $400M in a deal in Egypt.
He’s the most arrogant, worst chip-on-the-shoulder, leader you’ll ever meet. For all the responsibility he has, which he wrongly thinks of as power, to get a decision on anything out of him you have to call a battery of far too beautiful to be functional assistants (although I must say that some of them are super hard working) and it will probably take 6-8 months to get an answer. He the kind of guy who skips board meetings to play golf.
Selling anything to this man is like tying yourself to a snail, he can’t decisions, he’s never available, he great at talking the talk but pathetic at walking the walk. He has no respect for people, people in Dubai no longer respect him thats why he’s in places like phoenix. He actually believes what his PR agents publish about him.
About the super-bowl he has no clue what the game is about, he was invited to my house once to watch a game and he arrived early so I could tell him how it works so that when Mr.know-it-all speaks he know’s it all. A great leader listens, after listening, makes up his mind, makes one killer point, gives direction and leaves people to achieve their full potential. Not this guy, he talks doesn’t listen, his points are often fuzzy and incomprehensible, he gives directions not direction, and if it works he takes credit for it. All this guy has is money in cash, but thats not what america is all about, its about ideas, which are always more valuable than all the money in the world. The idea is the capital, the rest is just money. So what’s the big idea Mr.Alabbar? or is it just money your bring?
His son went to college in san diego, he’s obsessed with the number 8, he spends most of his lime between LA and Vegas these days. Definateley the wrong stuff, always happy to take credit for other people’s work.
I got a seven figure settlement so the name here is not real, everything else is.
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