Mohamed Alabbar, Chairman of Emaar Properties with members of the management team who met to discuss the company's action plan
Emaar Properties, the global property developer of iconic projects, has established a core management team comprising senior managers and external consultants, to develop and roll-out a five-year corporate strategic action plan for long-term value creation.
The team, under the leadership of Mohamed Alabbar, Chairman of Emaar Properties, will focus on a value creation strategy that takes into account the current market realities, evolution of new markets, potential growth opportunities and create a strategic plan for translating strategic growth initiatives into tangible value creation propositions.
Mr Alabbar said: “Emaar Properties, since inception 14 years ago, has set benchmarks in the property sector of Dubai by pioneering master-planned communities, and went on to develop iconic projects that established our global credentials in world-class real estate asset creation. During the course of the company’s evolution, Emaar also expanded into new geographic markets and strengthened its business model by diversifying into business streams such as hospitality & leisure and shopping malls & retail that contribute to our recurring revenues.”
He added: “Emaar successfully met the challenges of the global financial crisis, posting net operating profits of AED 3.034 billion (US$826 million) in 2010 and AED 2.324 billion (US$633 million) in 2009, despite challenging market conditions. As an organisation committed to long-term value creation for our stakeholders, it is extremely important that we review our corporate growth strategy in line with the prevailing global market trends and the socio-political landscape.”
Mr Alabbar explained that the core management team will focus on four key areas: strengthening the resilience of the organisation in the wake of recent social, political and economic changes in its regional and global markets; establishing a sustainable business model for the future; identifying and capitalising on the growth opportunities; and creating a robust organizational and corporate governance framework that resonates with new market realities.
The approach of the new team will be led by a thorough evaluation of the property market of Emaar in key geographies and the company’s future models of development. The team will also examine the operations of its hospitality & leisure and shopping malls & retail businesses, which now contributes 25 per cent of the company’s revenues, expected to grow to 30 per cent shortly.
Mr Alabbar said: “Emaar’s five-year corporate strategy is aimed at creating a robust model of growth that will enable the company to push beyond its current markets and businesses, develop new and recurring revenue streams and ensure long-term value creation for our stakeholders including the government of Dubai.
“We are grateful to His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai for his continued support and visionary guidance, which has helped us to establish Emaar as one of the most successful Dubai brands with a global footprint.”
Emaar’s core management team will work with international external consultants for this review and evaluation, and a full-fledged corporate strategy will be unveiled in due course.