Emaar Properties signs MoU with Shanghai
China-News Enterprise Development Ltd
• Agreement signed in the presence of
His Highness Sheikh Mohammed
• Strategic partnership to explore project development in China
• Mr Alabbar and Mr Chen sign deal in Shanghai
In one of the first high-level Sino-UAE public-private partnerships, Emaar Properties PJSC, the Dubai-based property developer, has signed a Memorandum of Understanding with the Shanghai China-News Enterprise Development Limited, a Chinese government entity and subsidiary of the People’s Daily Shanghai branch, to explore mixed-use property and infrastructure development projects in key Chinese cities.
The agreement was signed in the presence of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, by Mr Mohamed Ali Alabbar, Chairman, Emaar Properties, and Mr Chen Ming Ren, Legal Representative and General Manager of Shanghai China-News Enterprise Development Limited. His Highness Sheikh Mohammed is currently on a state-visit to China.
The strategic partnership between Emaar and Shanghai China-News Enterprise Development Limited marks one of the first public-private partnerships between the Chinese government and Dubai’s leading property developers, highlighting the increasing global role played by Dubai companies. It also reiterates Emaar’s expansion plans to China. Emaar had earlier marked a milestone in its expansion plans by being the first Middle East developer to open a full-fledged office in China in 2006.
An investment arm of People’s Daily, Shanghai China-News Enterprise Development Limited has its primary focus on real estate business as well as interests in conventions, tourism and publishing. People’s Daily is one of the world’s top 10 newspapers and one of China’s most influential sources for local and international news. Details of the partnership will be announced shortly.
Mr Alabbar said: “The high-level visit of His Highness Sheikh Mohammed has catalysed trade partnerships between Chinese and UAE companies. China’s booming economy is a magnet for investment in a number of high-growth sectors including property.”
He added: “China’s impressive economic growth has also propelled demand for property to meet the requirements of an estimated 400 million urban population. Emaar’s partnership with Shanghai China-News Enterprise Development Limited – a prime driver of inward investments to China – will explore opportunities for mixed-use projects as well as investments in education, healthcare, shopping malls and hospitality & leisure.”
Mr Chen of Shanghai China-News Enterprise Development Limited, said: “The strategic partnership signed between Emaar and Shanghai China-News Enterprise Development Limited comes at an opportune time, when Chinese companies are exploring investment options from the Middle East. Emaar has proven competencies in property development which can be utilised to create integrated lifestyle communities in China.”
He added: “Shanghai’s booming growth has been attracting huge foreign investment in the property sector, with the first three quarters of 2007 alone witnessing investments in real estate worth US$1.96 billion. The government is however streamlining investments to ensure that only trusted developers operate and excessive speculation is curbed. Emaar’s credentials fit our vision for real estate development.”
China is one of Dubai’s largest trading partners with non-oil trade increasing by 47 per cent to AED 71.2 billion last year, according to recent estimates. China is the Emirate’s 12-th biggest export destination with exports valued at AED 661.2 million. The booming growth of the economy at over 11.4 per cent has also witnessed increasing investment in property, which increased 31.4 per cent in 2007.
Emaar’s expansion to China will consolidate the company’s presence in pan-Asia. The company already has significant investments in India, Pakistan, Indonesia and Singapore. Emaar’s geographic expansion is in line with its Vision 2010 to become one of the most valuable companies in the world. Emaar has also built competencies in education, healthcare, shopping malls, hospitality & leisure and financial services.
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