By Andy Sambidge www.arabianbusiness.com
Emaar Properties said on Saturday it had set up a new team of senior managers and consultants to develop a five-year action plan.
The Dubai-based developer of the Burj Khalifa, the world’s tallest tower, said the team would “develop and roll-out a five-year corporate strategic action plan for long-term value creation”.
The team, under the leadership of chairman Mohamed Alabbar, will build a new strategy based on “current market realities, evolution of new markets, potential growth opportunities”, the company said in a statement.
Last month, Emaar posted a 45 percent drop in profits in the first quarter to $115m, with revenues falling by 31 percent to $540m.
The company said that it had handed over only 270 units in the quarter, compared to 1,300 in the same quarter last year, and 1,000 in the final quarter of 2010.
But the state-backed firm also reported a 54 percent rise in profits over the final quarter of last year, when it booked $113.5m in impairments.
Alabbar said: “As an organisation committed to long-term value creation for our stakeholders, it is extremely important that we review our corporate growth strategy in line with the prevailing global market trends and the socio-political landscape.”
Alabbar said the new management team would focus on four key areas including strengthening the resilience of the organisation in the wake of recent social, political and economic changes.
It would also look at establishing a “sustainable business model for the future”, the company said.
The team will also examine the operations of its hospitality and leisure and shopping malls and retail businesses, which now contributes 25 percent of the company’s revenues, expected to grow to 30 percent in the short-term.
Alabbar added: “Emaar’s five-year corporate strategy is aimed at creating a robust model of growth that will enable the company to push beyond its current markets and businesses, develop new and recurring revenue streams and ensure long-term value creation for our stakeholders including the government of Dubai.”