It’s almost exactly 20 years since chairman Mohamed Alabbar rolled out the first $3 billion Emaar Properties initial public offering (IPO), and I remember that landmark press conference very well.
Something remarkable was clearly in the wind. The Dubai stock market then did not even have a trading floor. Foreigners were not actually able to own property. I asked Mr Alabbar what it was all about.
‘We are going to make a huge amount of money for everybody involved,’ he cheerfully told me. ‘This is the future for Dubai, real estate.’
And so it has proved. Still around 30 per cent government owned, Emaar has been a fantastic success story as Dubai’s leading real estate developer. It’s also still having IPOs.
Stakes in Emaar Malls and Emaar Misr have been sold in IPOs. This Wednesday, the IPO for a 20 per cent stake in the Emaar Development division, the builder and developer based in Dubai, will close.
Of this $1.5 billion share issue, some 90 per cent has already been covered by institutional buyers leaving just 10 per cent for the public to buy.
I think the main problem for public buyers will be getting an allocation of stock. Oversubscription looks highly likely and so applications will be diluted. But the price of those shares you do get will likely perform well, if only due to all that excess demand.
For the mothership Emaar Properties, this IPO is all about reinforcing its balance sheet by obtaining a better valuation for its Emaar Development operation. Much of the money raised will be given back to shareholders in dividends in compensation for the asset being sold.
However, I doubt whether the result for the new IPO shareholders will be anything like as spectacular as it was in 1997.
Then you doubled your money in a week and if you could hold on for another 18 months your Dh1 share was worth Dh16, a better performance than bitcoin over the past year.
It was a rollercoaster ride back in those days for Emaar stockholders. When the oil price crashed in late 1999 those same shares slumped to under Dh2.
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They did not really take off again until late 2004. Then there was another huge price run up to Dh31 until another crash in 2006.
Newly minted Emaar Development shares will probably be a more volatile than its holding company Emaar Properties simply because it will not have the same balance of income from shopping malls, hotels and overseas projects.
However, brokers note that Emaar Development has profit margins in excess of 35 per cent and formidable borrowing power in global financial markets akin to Emirates Airline. It is also conservatively managed and has never overborrowed in the past, the usual achilles heel to any property development company.
Emaar Development also has a highly respected global brand, an excellent land bank, a broad spread of projects and outstanding off-plan sales. What is there not to like?
So really this is a pure play investment on the future of Dubai real estate. If you can’t afford a property in Dubai but want to invest now in this sector, this might well be the way to go.
I once bought Emaar shares in 2002 thinking they might take off again and that would eventually repay my mortgage. But I got bored with their non-performance by late 2004.
If only I had been more patient, I would have been able to pay off the whole mortgage just 18 months later as the shares went on to rise fifteen-fold.
Therefore if you do decide to go down this route, try to be a little more resilient than I was back then. Jumping in and out of stocks is not a very good idea. Having the right idea and sticking with it certainly can work, if you let it.
Personally I am quite bullish about the outlook for the Dubai Financial Market over the next few years. The index has never recovered to the highs of 2006 and valuations are less than half the lofty heights seen on Wall Street these days.
And yet the IMF expects GDP growth to triple to 3.4 per cent in the UAE next year and Brent Crude has passed $64 for the first time in two-and-a-half years. Tourism and aviation is also up thanks to the sharply lower US dollar. Dubai World Expo 2020 public spending is just getting going.
Emerging market stocks like those listed on the DFM look rare bargains in a world of over-priced assets, and Emaar Development is nicely positioned to leverage up on the Dubai recovery story.
Its newly appointed chief executive Chris O’Donnell is the man who once built the Palm Jumeirah for rival Nakheel.
Emaar Properties' shares fell 6.1 per cent last week following the Saudi anti-corrruption arrests which might prove an attractive entry point.
Then again global stock markets are overdue for a correction and when that happens even the blue chips like Emaar will be sold to raise cash in an emergency. That might be the better and classic buying opportunity.
Peter Cooper has been writing about finance in the Gulf for more than 20 years
THE SPECS
Jaguar F-Pace SVR
Engine: 5-litre supercharged V8
Transmission: 8-speed automatic
Power: 542bhp
Torque: 680Nm
Price: Dh465,071
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
more from Janine di Giovanni
The biog
Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Three ways to boost your credit score
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
1. Make sure you make your payments on time;
2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;
3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.
The%20specs
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Napoleon
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Day 2, Dubai Test: At a glance
Moment of the day Pakistan’s effort in the field had hints of shambles about it. The wheels were officially off when Wahab Riaz lost his run up and aborted the delivery four times in a row. He re-measured his run, jogged in for two practice goes. Then, when he was finally ready to go, he bailed out again. It was a total cringefest.
Stat of the day – 139.5 Yasir Shah has bowled 139.5 overs in three innings so far in this Test series. Judged by his returns, the workload has not withered him. He has 14 wickets so far, and became history’s first spinner to take five-wickets in an innings in five consecutive Tests. Not bad for someone whose fitness was in question before the series.
The verdict Stranger things have happened, but it is going to take something extraordinary for Pakistan to keep their undefeated record in Test series in the UAE in tact from this position. At least Shan Masood and Sami Aslam have made a positive start to the salvage effort.
UAE currency: the story behind the money in your pockets
Walls
Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
PROFILE OF INVYGO
Started: 2018
Founders: Eslam Hussein and Pulkit Ganjoo
Based: Dubai
Sector: Transport
Size: 9 employees
Investment: $1,275,000
Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri
Emirates Cricket Board Women’s T10
ECB Hawks v ECB Falcons
Monday, April 6, 7.30pm, Sharjah Cricket Stadium
The match will be broadcast live on the My Sports Eye Facebook page
Hawks
Coach: Chaitrali Kalgutkar
Squad: Chaya Mughal (captain), Archara Supriya, Chamani Senevirathne, Chathurika Anand, Geethika Jyothis, Indhuja Nandakumar, Kashish Loungani, Khushi Sharma, Khushi Tanwar, Rinitha Rajith, Siddhi Pagarani, Siya Gokhale, Subha Srinivasan, Suraksha Kotte, Theertha Satish
Falcons
Coach: Najeeb Amar
Squad: Kavisha Kumari (captain), Almaseera Jahangir, Annika Shivpuri, Archisha Mukherjee, Judit Cleetus, Ishani Senavirathne, Lavanya Keny, Mahika Gaur, Malavika Unnithan, Rishitha Rajith, Rithika Rajith, Samaira Dharnidharka, Shashini Kaluarachchi, Udeni Kuruppuarachchi, Vaishnave Mahesh
Abu Dhabi Sustainability Week
BRIEF SCORES
England 353 and 313-8 dec
(B Stokes 112, A Cook 88; M Morkel 3-70, K Rabada 3-85)
(J Bairstow 63, T Westley 59, J Root 50; K Maharaj 3-50)
South Africa 175 and 252
(T Bavuma 52; T Roland-Jones 5-57, J Anderson 3-25)
(D Elgar 136; M Ali 4-45, T Roland-Jones 3-72)
Result: England won by 239 runs
England lead four-match series 2-1
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
COMPANY PROFILE
Company name: Blah
Started: 2018
Founder: Aliyah Al Abbar and Hend Al Marri
Based: Dubai
Industry: Technology and talent management
Initial investment: Dh20,000
Investors: Self-funded
Total customers: 40
More coverage from the Future Forum
SPECS
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Ads on social media can 'normalise' drugs
A UK report on youth social media habits commissioned by advocacy group Volteface found a quarter of young people were exposed to illegal drug dealers on social media.
The poll of 2,006 people aged 16-24 assessed their exposure to drug dealers online in a nationally representative survey.
Of those admitting to seeing drugs for sale online, 56 per cent saw them advertised on Snapchat, 55 per cent on Instagram and 47 per cent on Facebook.
Cannabis was the drug most pushed by online dealers, with 63 per cent of survey respondents claiming to have seen adverts on social media for the drug, followed by cocaine (26 per cent) and MDMA/ecstasy, with 24 per cent of people.
UAE SQUAD FOR ASIAN JIU-JITSU CHAMPIONSHIP
Men’s squad: Faisal Al Ketbi, Omar Al Fadhli, Zayed Al Kathiri, Thiab Al Nuaimi, Khaled Al Shehhi, Mohamed Ali Al Suwaidi, Farraj Khaled Al Awlaqi, Muhammad Al Ameri, Mahdi Al Awlaqi, Saeed Al Qubaisi, Abdullah Al Qubaisi and Hazaa Farhan
Women's squad: Hamda Al Shekheili, Shouq Al Dhanhani, Balqis Abdullah, Sharifa Al Namani, Asma Al Hosani, Maitha Sultan, Bashayer Al Matrooshi, Maha Al Hanaei, Shamma Al Kalbani, Haya Al Jahuri, Mahra Mahfouz, Marwa Al Hosani, Tasneem Al Jahoori and Maryam Al Amri
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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COMPANY%20PROFILE
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