The company expects to record 25 per cent growth in net profits in 2003, said the Emaar Chairman. “In keeping with our pioneering mission—Shaping the Future. Today—and the demanding pace that we have set ourselves, Emaar continuously strives to incorporate international best standards in all its real estate projects, while continuously adapting to the demands of its valued customers and shareholders.
The company, which has more than 41,000 shareholders, most of them UAE nationals, has contributed significantly to invigorating the real estate sector and is energising and diversifying the economy of Dubai. Launched with an IPO for AED1 billion in 1997, Emaar Properties now has a capital of AED2.65 billion, and has already generated over AED1.64 billion in distributable profits, adding substantial value for its shareholders and re-energizing capital markets in the region Conveyancing Methodology.
Announcing changes in the accounting policy introduced by the company in 2002 over treatment of land donated by the Government of Dubai, Mr. Alabbar said: “During 2002, Emaar implemented International Accounting Standards followed by real estate companies in Europe, the Far East and USA. In these countries, it is common practice for governments to donate free land to public or private entities to spur growth and development.
Emaar will conform to practices followed in these countries in the valuation of assets related to donated land. “Emaar has reinstated treatment of land provided free by the Government of Dubai as no cost to the company. The company will henceforth adopt the practice of stating the actual cost of land at the time of sale rather than the fair market value at the time of donation.
Based on current valuations by independent auditors, the market value of donated land to Emaar as of December 31, 2002 is AED14.55 billion and the total value of the company, including the value of donated land, equity and liabilities, is AED21.18 billion. Touching on new real estate developments launched during the year, Mr. Alabbar said: “Huge consumer demand is driving the real estate market in Dubai.
During 2002, we launched several high-profile residential developments including The Meadows and The Springs, two luxury villa developments beside the Emirates Hills, and The Greens apartment project overlooking Emirates Golf Club. At the end of the year the company also launched the exclusive Arabian Ranches villa development.