Building new projects our participation in Dubai's growth: Alabbar

The chairman of Emaar Properties, Dubai’s largest developer, has ruled out any adverse impact of new mega development on Downtown Dubai, which houses Burj Khalifa, the world’s tallest tower and Dubai Mall, one of the largest malls in the world.

“Cities grow… we have done Downtown Dubai and now we will participate in its growth. (We will) make sure that we look after Downtown Dubai and do something special as the city grows,” Emaar Properties Chairman Mohamed Alabbar told ‘Emirates24|7’ ruling out the possibility of any adverse impact on tourism and business in its Downtown Dubai district.

“It is such a privilege. The city of London is still the city of London… it’s growing. People develop bigger and better (projects) so I am happy that we are part of it,” he emphasized.

Emaar Properties, listed on Dubai Financial Market, is currently involved in building master developments through various joint ventures on Dubai Creek, near the Expo 2020 site and around Al Mamzar Lake.

In October, Alabbar said property prices in Dubai were cooling down but ‘price spikes did scare him’.

“In 2013, things went crazy because supply was limited. As a long-term developer, this spike scares me. I am glad that people are saying that 'the market is cooling down', and that is healthy,” Alabbar had said.

Last week, Emaar approved the distribution of Dh17.12 billion in dividends to shareholders this year, which is about 250 per cent of the par value of its shares.

Read: Emaar approves cash dividend of Dh9bn

UK-based property consultancy firm Knight Frank has said price increase in Dubai was slowing down, but compared to 53 other global cities they were still increasing at the fastest pace in the world.

Dubai saw annual price growth of 24 per cent though it slipped from 27.7 per cent in the year to March 2014, the consultancy said.

As per the recent report by Ventures Middle East, a consultancy company, the total value of construction contracts awarded in the Gulf Cooperation Council (GCC) countries will increase to $195.7 billion in 2014, up from $159.87bn in 2013.

Among the GCC nations, Saudi Arabia and UAE have the largest market share in projects due for completion this year, with construction projects worth $33.82bn and $21.28bn respectively. Qatar, Bahrain, Oman and Kuwait collectively account for projects worth $16.92bn.

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