Dubai
Aldar and Emaar will use their combined resources to create the “next era” of mixed-use destinations to “shape the UAE’s ever-evolving skyline.” The joint venture has targetted Dh30 billion worth of projects in the UAE as well as in international markets.
“We have great ambitions and we are confident our national firms have the capabilities to achieve them,” said His Highness Shaikh Mohammad bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in a statement. “We want our companies to collaborate with each other to explore creative ideas for strengthening the UAE’s leadership, and enhancing the happiness and quality of life of our people.”
The initial focus falls on two projects – one apiece in Dubai and Abu Dhabi. The “partnership aims to create new opportunities for investment growth”, said His Highness Shaikh Mohammad bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. In fact, its was Shaikh Mohammad Bin Zayed’s Tuesday afternoon tweet that first revealed the coming together and potential scope of the developers’ alliance.
The joint venture was signed by Mohammad Khalifa Al Mubarak, Chairman of Aldar Properties, and Mohamed Alabbar, Chairman of Emaar Properties.
Aldar and Emaar currently own or operate an extensive land bank in their respective territories. If the Dubai developer has the 6 square kilometre Dubai Creek Harbour and the recently launched Emaar Beachfront, Aldar’s building up massive scale at the Yas Island. More recently, it has also been building its commercial real estate portfolio through acquisitions, while also operating the Yas Mall.
Property market sources say that apart from their individual cash reserves, the alliance will help them generate potential cost savings through combining their sales and marketing operations as well as on the project side.
The coming together could also drive a wave of consolidation - either full-scale mergers or joint ventures - through the rest of the market.
