Sun May 20, 2007

Zabeel acquires strategic equity stake in Emaar Industries & Investments

12 percent stake makes Zabeel second largest shareholder

Zabeel, the Dubai-based multi-diversified investment company, has taken a strategic 12 per cent equity stake in Emaar Industries & Investments (EII), the private joint stock company established to capitalize on the growth prospects of Middle Eastern, North African and South Asian manufacturing sector.

Having recently purchased Amlak Finance`s 10 percent stake in EII, plus an additional two percent, this acquisition now makes Zabeel the second largest shareholder after Emaar Properties, which retains a 40 per cent stake in Emaar Industries & Investments. Formal transfer of the shares in EII will take place at the end of August 2007, upon EII`s completion of two years as a private joint stock company.

Zabeel` Executive Chairman, H.E. Mohammed Ali Al Hashimi, said: "In line with the Dubai Strategic Plan unveiled by HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, Zabeel` 12 per cent stake in EII is part of the drive to strengthen the economy and focus on non-oil based growth sectors, such as industrial and manufacturing industries. Manufacturing contributed AED 73.4 billion to the UAE economy last year, accounting for 19.5 per cent of the GDP, leading the non-oil sector."

This synergistic approach to joint business interests demonstrates the shared vision of the two institutions to provide a common platform for manufacturing investment in the UAE as well as taking equity stakes in viable international interests in North Africa and South Asia.

The announcement follows last year`s formation of a three-way consortium between Zabeel, EII and Prime Investments to create Advanced Industries Group (AIG), based in Sharjah`s Hamriyah Free Zone. AIG specialises in the manufacture of furniture and interiors fit outs; production of metal furniture and architecture metal fit outs and Fibre Reinforced Polymer (FRP) Infrastructural piping systems.

Dr. Ahmad Khayyat, CEO of EII said: "There is significant progress in strengthening the industrial and manufacturing capabilities of the region, and this is where our collective future lies. In the last few months, we have ventured into new sectors as part of our long-term plan to diversify our portfolio. Moving forward in 2007, we will take a new direction for the implementation of a three-year strategy to ensure the sustainable growth of the regional manufacturing industry and further increase our portfolio of companies by four folds by 2009. We look forward to sharing the growth opportunities with Zabeel."

"Our focus for 2007 is increasing our equity in other areas. We focused on building our property portfolio in our first year of operations, and while this area will continue to grow, our motivation will be towards further development of the UAE`s manufacturing and light industry sector," Al Hashimi said.

Located at Dubai International Financial Centre, Zabeel is focused on the areas of commercial real estate development and management, private equity and asset management. The company also has interests in hospitality, finance, media and education. Its development projects include the AED 2.1 billion Tiara Residence on Palm Jumeirah, the AED 1.75 million Tiara United Towers on Sheikh Zayed Road and America Hotels & Resorts in the AED 200 billion Bawadi development.

EII, a member of Emaar Properties PJSC, is a private joint stock company established as a global investor that capitalises on growth prospects in the manufacturing sector by investing in existing businesses and establishing joint ventures with leading establishments. Since inception, the company has succeeded in creating an impressive brand that inspires confidence in investors.