In one of the first high-level Sino-UAE public-private partnerships, Emaar Properties PJSC, the Dubai-based property developer, has signed a Memorandum of Understanding with the Shanghai China-News Enterprise Development Limited, a Chinese government entity and subsidiary of the People’s Daily Shanghai branch, to explore mixed-use property and infrastructure development projects in key Chinese cities.
The agreement was signed in the presence of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, by Mr Mohamed Ali Alabbar, Chairman, Emaar Properties, and Mr Chen Ming Ren, Legal Representative and General Manager of Shanghai China-News Enterprise Development Limited. His Highness Sheikh Mohammed is currently on a state-visit to China.
The strategic partnership between Emaar and Shanghai China-News Enterprise Development Limited marks one of the first public-private partnerships between the Chinese government and Dubai’s leading property developers, highlighting the increasing global role played by Dubai companies. It also reiterates Emaar’s expansion plans to China. Emaar had earlier marked a milestone in its expansion plans by being the first Middle East developer to open a full-fledged office in China in 2006.
An investment arm of People’s Daily, Shanghai China-News Enterprise Development Limited has its primary focus on real estate business as well as interests in conventions, tourism and publishing. People’s Daily is one of the world’s top 10 newspapers and one of China’s most influential sources for local and international news. Details of the partnership will be announced shortly.
Mr Alabbar said: “The high-level visit of His Highness Sheikh Mohammed has catalysed trade partnerships between Chinese and UAE companies. China’s booming economy is a magnet for investment in a number of high-growth sectors including property.”
He added: “China’s impressive economic growth has also propelled demand for property to meet the requirements of an estimated 400 million urban population. Emaar’s partnership with Shanghai China-News Enterprise Development Limited – a prime driver of inward investments to China – will explore opportunities for mixed-use projects as well as investments in education, healthcare, shopping malls and hospitality & leisure.”
Mr Chen of Shanghai China-News Enterprise Development Limited, said: “The strategic partnership signed between Emaar and Shanghai China-News Enterprise Development Limited comes at an opportune time, when Chinese companies are exploring investment options from the Middle East. Emaar has proven competencies in property development which can be utilised to create integrated lifestyle communities in China.”
He added: “Shanghai’s booming growth has been attracting huge foreign investment in the property sector, with the first three quarters of 2007 alone witnessing investments in real estate worth US$1.96 billion. The government is however streamlining investments to ensure that only trusted developers operate and excessive speculation is curbed. Emaar’s credentials fit our vision for real estate development.”
China is one of Dubai’s largest trading partners with non-oil trade increasing by 47 per cent to AED 71.2 billion last year, according to recent estimates. China is the Emirate’s 12-th biggest export destination with exports valued at AED 661.2 million. The booming growth of the economy at over 11.4 per cent has also witnessed increasing investment in property, which increased 31.4 per cent in 2007.
Emaar’s expansion to China will consolidate the company’s presence in pan-Asia. The company already has significant investments in India, Pakistan, Indonesia and Singapore. Emaar’s geographic expansion is in line with its Vision 2010 to become one of the most valuable companies in the world. Emaar has also built competencies in education, healthcare, shopping malls, hospitality & leisure and financial services.
About Emaar Properties PJSC:
Emaar Properties PJSC is one of the world's largest real estate companies and is rapidly evolving to become a global provider of premier lifestyles. Powered by its Vision 2010 to become one of the most valuable companies in the world, Emaar is charting a new course of growth with a two-pronged strategy of geographical expansion and business segmentation.
Emaar has highlighted its remarkable global growth by debuting on the Financial Times Global 500 ranking, which provides an annual snapshot of the world's largest companies. Emaar has been assigned A- and A3 ratings with stable outlook by Standard & Poor's and Moody's Investor Services, respectively.
Replicating its successful business model in Dubai, Emaar is extending its expertise in creating master-planned communities to international markets. Emaar is also developing new competencies in malls, hospitality & leisure, education, healthcare and finance, which have evolved from its integrated approach to customer service and property development.
Listed on the Dubai Financial Market, part of the Dow Jones Arabia Titans Index and certified to ISO9001:2000 for quality standards, Emaar is developing Burj Dubai, the world's tallest building and free-standing structure, and The Dubai Mall, one of the world's largest shopping and entertainment destinations. In Saudi Arabia, Emaar is developing the US$26.6 billion King Abdullah Economic City, the region's largest private sector-led project. Emaar's portfolio currently covers the following countries: the UAE, Saudi Arabia, Jordan, Syria, Lebanon, Morocco, Egypt, Turkey, Libya, Algeria, India, Pakistan, Indonesia, the US, the UK, France and Canada.
An award-winning developer, Emaar has strengthened its product sale competencies, market reach and best practices through strategic acquisitions and joint ventures. Emaar acquired John Laing Homes, America's second largest privately held home builder; Hamptons International, UK's premier realtor; and formed a joint venture with US-based Turner International to strengthen execution capabilities.
Emaar has joined hands with Giorgio Armani and Accor Hotels to strengthen its presence in hospitality, and will launch ten luxury Armani Hotels & Resorts world-wide and 100 Formule 1 budget hotels in India. The company is opening educational institutions and healthcare centres in South Asia, Middle East and North Africa and the Subcontinent. Emaar acquired Singapore-based leading education provider, Raffles Campus, to extend expertise to its educational institutions.
Emaar holds 30 per cent equity in Dubai Bank, focused on retail and commercial banking. Emaar is also the largest shareholder in Amlak Finance, UAE's leading Islamic home financing company. For more information, visit www.emaar.com.
