SHARJAH, 18 June 2005 — Real estate major Emaar Properties is set for a 1:1 rights issue for doubling its capital to 5.6 billion dirhams, thus pushing itself to the top of the list among the world’s real estate companies in terms of market capitalization.
Emmar board of directors on Wednesday night decided to more than double the foreign ownership limit, raising it to 49 percent from the present 20 percent. The decision will take Emaar to a new level among the ranks of global corporations.
“This move has ensured that Emaar will become the No.1 real estate company in the world in terms of market capitalization,” said Emaar Chairman Mohammed Ali Alabbar.
“The issue reflects the company’s determination to expand locally and internationally. The increase in capital will allow it to aggressively pursue its expansion plans and enhance returns to shareholders,” Alabbar said after the board meeting. The decision to increase the share of the company open to foreign ownership will take Emaar to a new level among the ranks of global corporations.
The Emaar scrip has been on a spiral in the past two month. From a 52-week low of six dirhams (60.25 dirhams before the share split) the high profile stock rose to a historic high of 34 dirhams on Wednesday on the Dubai Financial Market (DFM).