6.42 PM Friday, 29 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:56 06:10 12:26 15:53 18:37 19:52
29 March 2024

Emaar proposes 10% dividend

Published
By Parag Deulgaonkar

Emaar Properties, the developer of the world's tallest tower Burj Khalifa, has proposed a 10 per cent cash dividend for year 2011.

The company, owned 31 percent by Dubai’s government, had paid 10 per cent cash dividend, worth Dh600 million, to shareholders for 2010 though initially it had not announced any plans.

No dividends were declared for 2008 and 2009, citing reinvestment for "long-term growth". The developer, however, paid 20 per cent dividend for 2007.

According to the company statement posted on the Dubai Financial Market, shareholders will meet on April 23 to discuss the proposal.

Last month, Emaar said profit for the fourth quarter jumped 161 per cent to Dh716 million as against Dh274 million for the same quarter in 2010 as provisions and impairments dropped substantially. However, net profit for 2011 dropped 27 per cent to Dh1.794 billion as compared to Dh2.448 billion for the previous year on lower revenues.

On Monday, the company said it will expand its board to 11 members from eight while replace four directors.

Four of the current board’s eight members have been nominated by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and chairman of the Executive Council of the emirate. They include Chairman Mohamed Ali Alabbar; chief executive of Noor Islamic Bank Hussain Al Qemzi; Ahmad Jamal Jawa and Ahmad Thani Al Matrooshi.

The new members would be DP World’s vice chairman, Jamal Majid bin Thaniah; DP World’s senior vice president, Arif Al Dehail. Dubai Holding’s chairman of operations, Fadel Al Ali, Abdul Rahman Hareb Rashed Al Hareb, Marwan Iqbal Mohammed Abdullah Abdeen, Abdullah Saeed Balyoahah and Abdullah Mohammed Al Marri were also nominated to the board.

Four current board members who are listed on the company’s website – Drake & Scull International’s chairman, Majid Saif Al Ghurair; Saeed Al Tayer; Lowai Mohamed Belhoul; and Khalifa Hassan Aldaboos – were not included in the announcement. The term of the current board will end in April.

Emaar shares closed 0.3 per cent lower at Dh3.05 on Monday. The shares have recovered 19 per cent this year against a 23 per cent advance for the DFM general index.