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07 December 2023

Al Mazaya's Dubai projects moving as per plan

An Al Mazaya property. The company is falling back on its own funds to finance projects in the UAE, Kuwait and Saudi Arabia. (EB FILE)

By Staff Writer

Kuwait's Al Mazaya Holding is revisiting its plans to acquire the remaining stake in First Dubai Real Estate Development, Khalid Esbaitah, the company's CEO told Emirates Business.

"The board has allowed us to revisit our strategy and we are looking to acquire the remaining stake as we believe it will benefit both the companies," Esbaitah said. He did not disclose any time span for the acquisition.

In June 2009, the developer put on hold plans to acquire the remaining 33 per cent stake saying benefit of buying the stake was "marginal and does not justify the costs of the acquisition."

Al Mazaya currently owns 67 per cent of First Dubai. It had appointed Al Shall Consulting in May 2009 as an advisor to help it decide on a fair price for the deal. First Dubai was set up in 2003 with a capital of KD100 million (Dh1.27 billion).

Esbaitah said Al Mazaya's financial situation was "solid" as it will commence operational process on its "profitable" projects in Kuwait, Saudi Arabia and Dubai. This will provide it with financial support from 2010, which will see the completion and handover of five projects." Al Mazaya has projects worth $10bn (Dh36.7bn) in Kuwait, Saudi Arabia and the UAE.

Esbaitah said projects in Dubai were progressing as per schedule and were between 40 and 90 per cent complete. The company has already delivered the Icon Towers project at Jumeirah Lake Towers and has made progress on its Business Avenue project. The Villa project and Liwan project in Dubailand are 85 per cent and 30 per cent completed.

"Dubai's recent setbacks are temporary ones that any emerging market could face but the effect was more apparent in the case of the Dubai market due to its size and the policies of transparency adopted by the government and companies when dealing with investors and the public.

"Dubai follows well-placed strategies, solid infrastructure and legislation which have made the emirate a central real estate, economic and commercial hub in the region, bringing huge advantages for investors and companies working in the emirate. The slowdown of 2009 is the aftermath of the global financial crisis.

"We continued to develop our projects even during the apex of the financial crisis without asking for funding, due to the fact that these projects are largely sold and funded through our own cash flow," he added.

Esbaitah said Al Mazaya was focusing on the Saudi market given the high demand for residential units.


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