DUBAI: Emaar Properties, developer of the world's tallest tower in Dubai, plans to build a new hotel in the city's high-end Downtown area, its first major hotel project since the emirate's property crisis erupted in 2009.
Emaar, which had skirted clear of its home market in the aftermath of the debt crisis, said the construction of the five-star hotel will be financed mainly through pre-sales of serviced apartments.
"The hotel we're launching today represents an opportunity to capture the interest we're seeing from Dubai, (the Gulf), Middle East, Indian subcontinent, China and Europe," Arif Amiri, chief executive of Emaar Retail, told reporters at the launch.
Amiri did not give a value or costs for the project. The hotel will have 200 rooms and 542 serviced apartments. Apartment sales will begin Sept. 22.
"I truly believe that the real estate market in Dubai is on the path of robust growth," he added.
Dubai's property market is slowly stabilizing after home prices slumped by over 60 percent from their peak in 2008.
The hotel marks Emaar's third project this year after it launched the “Panorama at the Views” high-rise development, consisting of over 200 luxury apartments, and Alma 2 in the Arabian Ranches residential complex.
"Our sales in the first half of this year were five times more than the same period last year," he said.
Emaar reported in July that its second-quarter profits had more than doubled. Revenue from apartment sales for the six months ending June 30 was 975.5 million dirhams compared to 640.5 million dirhams a year-ago.
Emaar to build five-star Dubai hotel
Emaar to build five-star Dubai hotel
What changed in Saudi stocks on 1st day of foreign entry
RIYADH: Saudi Arabia’s stock market saw foreign non-strategic investors reduce their ownership in nearly half of the companies listed on the main Tadawul All Share Index, or TASI, on the first day of implementing the decision to open the market to all categories of foreign investors, according to Tadawul data reflecting ownership positions as of Feb. 1
According to the Financial Analysis Unit at Al-Eqtisadiah, foreign ownership declined in 120 companies, increased in 97 others, and remained unchanged in the rest, with no variation in the number of shares held by foreign investors.
Foreign investors favor growth stocks
Looking at the changes purely through valuation multiples — without factoring in operational or sectoral considerations — foreign investors appear to be reallocating ownership toward growth stocks at the expense of value stocks, with higher multiples used as an approximate indicator of growth.
Ownership declines were concentrated in companies with lower valuation multiples, where the median price-to-earnings ratio stood at about 17.1 times and the median price-to-book ratio was around 2 times.
Conversely, ownership rose in companies with higher multiples, with a median price-to-earnings ratio of 23.3 times and a median price-to-book ratio of 2.6 times.
Mid- and small-cap firms see biggest changes
Raoom, Entaj, and Obeikan Glass saw the largest declines in foreign ownership, dropping between 10 percent and 16 percent. In contrast, Tamkeen, SACO, and Abo Moati led gains, with foreign stakes rising 10 to 20 percent.
In terms of overall foreign ownership, Al-Babtain, Rasan, and Etihad Etisalat topped the list at roughly 34 percent, 29 percent, and 24 percent, respectively.
Gradual foreign inflow and delayed impact
The initial changes remain insufficient to reflect a major impact of the full foreign access decision, especially as the first day coincided with the weekend. Additionally, entry is expected to be gradual until financial institutions are fully ready to open accounts, particularly for individuals.
Mohammed Al-Shammasi, CEO of Derayah Financial, has told Asharq that the firm received around 500 individual investor applications on the first day of full foreign access.
Meanwhile, foreign institutions managing under $500 million can now invest directly in the market with easier access, joining more than 4,000 qualified foreign investors who already hold assets worth SR377 billion ($100.5 billion)
