Abyaar Real Estate Development has today been listed on the Kuwait Stock Exchange. Mr Hesham Al Obeid Chairman of Abyaar and Vice Chairman and Managing Director Mr Marzooq Al Rashdan announced in a press conference yesterday that official trading is to start on the 29th of October at 10am.
Mr Al Obeid said Abyaar has firmly established itself in the regional property and real estate market and, by maintaining solid growth and ongoing increasing profit margins; it has gained the trust of investors.
He said the stock market listing will give Abyaar greater access to capital markets and ease the borrowing processes. As well as improving liquidity, it will simplify access for potential investors and should generate a premium on shares for current investors.
“This is another major milestone for the company, which has invested more than US$2 billion into Dubai real estate since 2005 and we have plans to lift this to $US4.4 billion by 2008.
“We are working on a new strategy for the company which will be ready by Dec 2007, and new markets have been put on the focus such as KSA and Qatar.”
There were no immediate plans to increase the number of shares available until the planning was completed and future capital requirements were known.
The Kuwait Stock Exchange listing is likely to be followed by a similar move in Dubai next year.
Mr. Marzooq Al Rashdan said the stock exchange listing was a logical step that follows the successful IPO in 2005, which gave the company the momentum it needed to become a major player in the Dubai property market. At that time 500 shareholders contributed KD 35 million which has funded an aggressive development programme.
He said that Abyaar managed to make its mark in the region’s property market in a short period of time due to careful planning, strategic investments and long term vision.
The company has recently announced an exceptional first six months for 2007, achieving 50 per cent growth in turnover in comparison to the same period last year with a net profit of USD 32,100,000 (KD 8,989,092) with an increase in share profit of 24.8 fils. Al Rashdan mentioned that the company is aiming at increasing that to 40 fils annual profit share by the end of this year.
He added by saying Abyaar is working towards increasing its annual average growth rate to 30% in the upcoming years. Abyaar has just handed over the first of two Venti Quattro five star serviced apartment buildings at Dubai Marina, and is well underway with Acacia Avenues, the only freehold development in Jumeirah valued at $1.1 billion.
A second five star Venti Quattro development at the Dubai Marina is on track for handover late next year, as is the case with The Business Centre, a six-storey commercial development at Dubai Investments Park.
© 2007 Al Bawaba (www.albawaba.com)
