DUBAI, 25 January 2007 — UAE-based Emaar Industries and Investments (EII), a member of the Emaar group, and Damas, a regional retail jewelry major, yesterday announced plans to set up a $272-million jewelry manufacturing facility in Dubai.

Emirates Jewelry Manufacturing Company (EJMC) will start manufacturing this month from its 110,000-square feet facility in Dubai Multi Commodities Center, and is expected to churn profits in the first year itself. EII will be the major shareholder with 52 percent share, while Damas will hold the remaining 48 percent.

“Though we have been leaders in the retail side, manufacturing hasn’t been our core business for years,” Damas Managing Director Tawhid Abdullah said.

“And for expanding, we do see the necessity of getting into manufacturing sector and with EII, we did get the right partner,” the managing director further said.

The new facility will manufacture around 1.5 ton of gold jewelry every month, he said, adding that “in the first year, we expect a turnover of AED300 million, which will subsequently touch AED1 billion in the next five years,” he elaborated. Fifty percent of output from the new facility will remain within its retail outlets in the UAE, while the remaining 50 percent will go to its international outlets, Abdullah said.

EJMC will be employing around 400 workers and has no plans to compete with global giants.

“What we are trying to provide is value addition. We do not plan to compete with our neighbors in China or India,” he emphasized.

“Our expectations are high for both the gold industry and this venture. This partnership, which will capitalize our manufacturing know-how and the strength of our partner’s retail brand, will help the industry realize its potential and provide a significant boost for the ‘Made in UAE’ label,” EII Chief Executive Dr. Ahmad Khayyat said.

“We invest in manufacturing businesses that have growth potential, regionally-based, sustainable, clean, offer exceptional value to our stakeholders and partners, and are of benefit to our community,” EJMC Chairman and EII Vice-Chairman Mohammad Ali Al-Hashemi said.

He explained further that “this partnership meets these requirements on every count.”