Dubai Parks and Resorts, the themed leisure venture, will bolster the proceeds of its forthcoming initial public offering with a Dh4.2 billion loan arranged by the US investment bank Goldman Sachs.
The company, which is planning a Dh10.4bn theme park complex in the emirate by 2016, has confirmed that it will seek some Dh2.5bn by way of an offering of shares on the Dubai Financial Market later this month.
A 40 per cent chunk of the company will be offered for sale by Meraas Holding, the government-owned developer, giving the parks unit a market valuation of Dh6.3bn.
Formal documents accompanying the planned IPO listing revealed that Goldman Sachs has structured and led a Dh4.2bn syndicated facility for the company, underwritten by Abu Dhabi Commercial Bank, Commercial Bank International, Emirates NBD and Noor Bank.
The total cost of the project, which includes Hollywood and Bollywood-style theme parks, a Legoland attraction and a four-star hotel on a 16 million square feet site, is estimated to be Dh10.4bn, of which Dh8.7bn is construction costs. “The company believes these amounts should be sufficient to meet its budgeted development costs but it cannot be sure that this will be the case,” the document says.
In addition, Meraas has guaranteed any potential cost overruns with interest-free loans. Meraas has already put Dh3.8bn of equity into the project, including land with a value of Dh896 million.
“With Dubai’s status as a leading global tourist destination continuing to grow, there exists an exciting opportunity to enhance the emirate’s leisure, entertainment and retail offering,” said Raed Al Nuaimi, chief executive of Dubai Parks.
Dubai is planning to attract 20 million tourist visitors by 2020, double its current level, with the Dubai Parks project forecast to attract 6.7 million visitors in its first full year of operations.
Shares in the IPO will be priced at Dh1 each, as UAE regulators specify. Of the 40 per cent of the company shares up for sale, 10 per cent will be reserved for retail investors, with 25 per cent for institutional investors and high net worth individuals.
Another 5 per cent of the offer is reserved for Emirates Investment Authority, the federal investing body which has a right to subscribe to new issues in the UAE.
Mr Al Nuaimi said that he would welcome foreign shareholders. “Dubai Parks is a proxy for Dubai tourism, and that will be attractive for international shareholders,” he said.
Meraas has already put Dh3.8bn of equity into the project, in the form of initial capital injection, costs and land. “The project is fully funded,” Mr Nuaimi said.
“With Dubai’s status as a leading global tourist destination continuing to grow, there exists an exciting opportunity to enhance the emirate’s leisure, entertainment and retail offering.
“The project will benefit from a prime and easily accessible location, partnerships with world-renowned brands, industry leading operators and a wide range of attractions catering to visitors of all ages, both from the Middle East and beyond.
“With the early stages of development already under way, we are aiming to provide investors with access to a high growth, high return, family entertainment business which will become one of the cornerstones of the Dubai entertainment landscape,” he added.
Mr Al Nuaimi estimated that 45 per cent of the infrastructure for the parks was in place, and more than half the contracts had been placed.
Dubai Parks has partnered with international operators who have extensive experience in theme park operations. Parques Reunidos of Spain, the second largest operator in Europe, will operate Motiongate and Bollywood Parks; Merlin Entertainments, another European operator, will operate Legoland Dubai. Hotel Lapita will be managed by Luxury Hotels International Lodging, a Marriott company.
Meraas expects interest in the IPO to be heightened by Dubai’s rapid expansion in tourism. It was recently rated the fifth most visited city in the world, with 11.95 million overnight visitors, ahead of New York, Hong Kong and Milan, according to the credit card operator MasterCard.
Approximately 3 billion people live within a four-hour flight of Dubai, according to the accounting firm PwC.
Goldman Sachs, Emirates Financial Services and HSBC are joint global coordinators and bookrunners for the IPO. EFG Hermes and Shuaa Caapital are also working on it.
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Bookshops: A Reader's History by Jorge Carrión (translated from the Spanish by Peter Bush),
Biblioasis
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
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The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
More from Neighbourhood Watch:
RESULT
Liverpool 4 Southampton 0
Jota (2', 32')
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Man of the match: Diogo Jota (Liverpool)
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi
Yadoo’s House Restaurant & Cafe
For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.
Golden Dallah
For the cappuccino, luqaimat and aseeda.
Al Mrzab Restaurant
For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.
Al Derwaza
For the fish hubul, regag bread, biryani and special seafood soup.
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
UAE currency: the story behind the money in your pockets
The team
Photographer: Mateusz Stefanowski at Art Factory
Videographer: Jear Valasquez
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory
Model: Randa at Art Factory Videographer’s assistant: Zanong Magat
Photographer’s assistant: Sophia Shlykova
With thanks to Jubail Mangrove Park, Jubail Island, Abu Dhabi
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
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%3Cp%3EVara%20will%20cater%20to%20three%20categories%20of%20companies%20in%20Dubai%20(except%20the%20DIFC)%3A%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20A%3A%3C%2Fstrong%3E%20Minimum%20viable%20product%20(MVP)%20applicants%20that%20are%20currently%20in%20the%20process%20of%20securing%20an%20MVP%20licence%3A%20This%20is%20a%20three-stage%20process%20starting%20with%20%5B1%5D%20a%20provisional%20permit%2C%20graduating%20to%20%5B2%5D%20preparatory%20licence%20and%20concluding%20with%20%5B3%5D%20operational%20licence.%20Applicants%20that%20are%20already%20in%20the%20MVP%20process%20will%20be%20advised%20by%20Vara%20to%20either%20continue%20within%20the%20MVP%20framework%20or%20be%20transitioned%20to%20the%20full%20market%20product%20licensing%20process.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20B%3A%3C%2Fstrong%3E%20Existing%20legacy%20virtual%20asset%20service%20providers%20prior%20to%20February%207%2C%202023%2C%20which%20are%20required%20to%20come%20under%20Vara%20supervision.%20All%20operating%20service%20proviers%20in%20Dubai%20(excluding%20the%20DIFC)%20fall%20under%20Vara%E2%80%99s%20supervision.%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECategory%20C%3A%3C%2Fstrong%3E%20New%20applicants%20seeking%20a%20Vara%20licence%20or%20existing%20applicants%20adding%20new%20activities.%20All%20applicants%20that%20do%20not%20fall%20under%20Category%20A%20or%20B%20can%20begin%20the%20application%20process%20through%20their%20current%20or%20prospective%20commercial%20licensor%20%E2%80%94%20the%20DET%20or%20Free%20Zone%20Authority%20%E2%80%94%20or%20directly%20through%20Vara%20in%20the%20instance%20that%20they%20have%20yet%20to%20determine%20the%20commercial%20operating%20zone%20in%20Dubai.%C2%A0%3C%2Fp%3E%0A
More coverage from the Future Forum
Squad
Ali Kasheif, Salim Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdulrahman, Mohammed Al Attas, Abdullah Ramadan, Zayed Al Ameri (Al Jazira), Mohammed Al Shamsi, Hamdan Al Kamali, Mohammed Barghash, Khalil Al Hammadi (Al Wahda), Khalid Essa, Mohammed Shaker, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Al Hassan Saleh, Majid Suroor (Sharjah) Walid Abbas, Ahmed Khalil (Shabab Al Ahli), Tariq Ahmed, Jasim Yaqoub (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Muharami (Baniyas)
Sholto Byrnes on Myanmar politics
Mohammed bin Zayed Majlis
UAE currency: the story behind the money in your pockets
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
KILLING OF QASSEM SULEIMANI
The Kingfisher Secret
Anonymous, Penguin Books
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
