Business | Property
Emaar will not pay dividend for 2008
Dubai-based property developer will retain profit for reserves
- Agencies
- Published: 22:53 February 18, 2009
Dubai: Dubai's Emaar Properties will not pay a dividend for 2008, according to a resolution adopted by its board of directors, after posting a Dh1.77 billion ($481.9 million) quarterly loss due to US writedowns.
The company will retain its 2008 profit for reserves, according to a statement released by the company late on Tuesday.
The company paid a 20 per cent dividend for 2007.
Last Thursday, Emaar posted a fourth quarter loss of Dh1.77 billion and said it would put new projects on hold in its weakening home market. The largest listed Arab real estate developer listed a 2008 net profit of Dh3 billion compared to Dh6.58 billion in 2007.
The company's share price dropped to a two-week low on investor concern the Dubai-based developer may not pay a dividend for 2008 after reporting a fourth-quarter loss.
"Investors are worried the company may decide not to pay a dividend," said Mohammad Dwaikat, senior broker at Al Fajer Securities in Abu Dhabi.
Investors believed the company's Chairman Mohammad Ali Al Abbar "may say Emaar needs the cash."
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