Emaar Properties recently received approval from the United Arab Emirates (UAE) Central Bank to set up a commercial bank in Dubai. The Dubai-based real estate company has not yet confirmed the bank’s capital but expects it to become fully operational by June 2002, reported Al-Hayat.
Emaar sources declared that the company will gradually expand its branch network throughout the UAE. "The decision to expand the group's business to include a presence in the UAE banking sector was taken after our successful experience two years ago with the establishment of Amlak, which undertakes real-estate financing, with results here having proved positive," a company official told Reuters.
The blue-chip firm plans to enter the banking sector next year as part of its diversification plans. The new full-service bank is expected to be a main tributary of income and profits for Emaar at a time when the company is pursuing the expansion of its core business of real estate development. The firm recently completed a number of projects with work in progress on the Dubai Marina Towers.
Emaar, traded on the Dubai Financial Market (DFM), posted a first-half 2001 net profit of 169 million UAE Dirhams ($46 million) compared with Dh 304 million ($82 million) for the whole of 2000. With a capital of Dh 2.7 billion ($735 million) last year, Emaar became the first Emirate firm to allow foreigners to trade in its shares. The Dubai government owns a 32 percent stake in the company with the rest held by UAE investors. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
