Business | Markets
Aldar pondering share buyback
Aldar Properties is considering a share buy-back to cash in on current prices, a top official said.
- By Saifur Rahman, Business Editor
- Published: 00:13 October 9, 2008
Dubai: Aldar Properties is considering a share buy-back to cash in on current prices, a top official said.
"It's something we have been considering for some time as the current share price is quite lucrative," Ronald Stephen Barrott, Aldar chief executive, told Gulf News on Wednesday.
"Although resources [at our disposal] from diverse sources of funding, including project sales, are for undertaking projects, the share prices are lucrative enough to buy."
Borrowing costs in the UAE have increased in recent months as international institutional investors have reportedly siphoned out billions of dollars from local markets to fix their problems elsewhere, putting pressure on the local project finance market.
The current tight situation could force some real estate companies to merge, Barrott said. "Yes, the costs of funds have gone up and this might have some effect on the development market and could force some real estate companies to merge," he said.
"Although the current global financial situation and the credit position in the UAE will impact the market, we will not delay or reschedule any of our projects. These will go on as planned," he said as Aldar's share price declined 9.7 per cent to Dh5.48 on Wednesday.
Share this article
More from Markets
More from Business
Popular in Business
-
General
Precious jump
Gold prices at new high as India's central bank buys $6.7b worth of gold
Business Editor's choice
-
UAE companies in full force at WTM
Seventy-eight participants are from Dubai and 50 from Abu Dhabi
-
DIFC committed to high standards
Ensures an efficient process to serve the business community
-
Sweet life in the Middle East
A sweet look at the confectionary industry in the UAE and Middle East
