By: Mahmoud Gamal
Dubai – Mubasher: The UAE economy, particularly the real estate sector, is expected to see a fresh era of growth following the strategic partnership between the country’s two major property developers Emaar and Aldar.
On Tuesday, Aldar Properties and Emaar Properties have formed a strategic alliance to develop projects worth AED 30 billion ($8.2 billion).
The UAE position
Commenting on this historic partnership, vice President and Prime Minister Mohammed bin Rashid Al Maktoum said: “We are happy to witness the signing of this partnership, which will contribute to our development journey and help enhance the UAE’s position as a tourism destination of choice”.
Meanwhile, Crown Prince of Abu Dhabi and deputy supreme commander of the UAE Armed Forces Mohamed bin Zayed Al Nahyan, commented: “This partnership will unify efforts, integrate energies, create various opportunities for investment growth and expansion, setting plans and programmes to strengthen the joint venture’s position among competitors on the global level”.
The Emirati real estate sector
The strategic partnership between Emaar and Aldar will reinforce the UAE’s real estate sector locally and internationally and will accelerate the country’s economic growth, analysts told Mubasher.
Given that, Emaar has managed the construction of the mega-tall skyscraper Burj Khalifa in Dubai, while Aldar was responsible for the construction of Formula One motor race’s circuit in Abu Dhabi.
New vision
This historic partnership represents a new vision that encourages competition and integration among Emirati companies, CEO of Al Safwa Mubasher Financial Services Ehab Rashad said.
This partnership is a new instrument to face international competitors by boosting local existence between firms, he highlighted.
This alliance will foray into the world with major investments which will boost the UAE’s economic growth, he indicated, projecting Egypt to be one of the joint venture’s first global destinations.
The new collaboration will push the Dubai-listed Emaar’s stock and the Abu Dhabi-listed Aldar’s stock up, he said.
Making history
The strategic partnership will bolster Emaar’s portfolio in Abu Dhabi, in line with exchanging experience between both firms, which qualify the real estate sector in the UAE capital to witness a new fruitful era, CEO of Mindcraft Consulting Fady El Ghattis.
Upon the signed agreement, both firms will take part in developing Saadiyat Grove in the heart of the cultural district on Abu Dhabi's Saadiyat Island and the private island of Emaar Beachfront project in Dubai located between Jumeirah Beach Residence and Palm Jumeirah.
This alliance will remarkably buttress Emaar’s profits and revenues, El Ghattis indicated, pointing out that this will expand Aldar's business as a property developer.
Global expansion
This partnership will push Emaar and Aldar to expand in the region, senior financial analyst at Menacorp Financial Services Issam Kassabieh said.
It will also enhance Dubai’s position as a centre of tourism, in addition to raising the number of real estate projects in the emirate, he stressed.
This alliance will also impact both firms’ profits by the end of 2018, he noted.
Emaar is the main beneficiary of this agreement, which will support the UAE’s real estate sector, he added.
Translated by: Mai Ezz El-Din
