Sat Jul 07, 2007

Zabeel acquires strategic stake in EADS

Dubai-based investment company joins DIC in expanding investment outside the region.

Zabeel, the Dubai-based diversified investment company has taken a strategic stake in the European Aeronautic Defence and Space Company (EADS), as part of the company`s tactical strategy to invest outside of the region.

Zabeel` Executive Chairman, His Excellency, Mohammed Ali Al Hashimi, stated: "We are currently looking at a number of international investment opportunities covering a number of industry sectors; however this equity stake in EADS is our first investment outside the region. EADS has a diversified product portfolio, which provides a strong investment opportunity, further solidifying the UAE`s continued expansion in the aviation sector. With some of the world`s most profitable and sustainable airlines, such as Emirates and Etihad, it makes sense for UAE companies to invest in this area."

From a regional perspective, the UAE dominates in terms of traffic, aircraft orders and airline expansions, and has been investing heavily in aviation infrastructure for some time, particularly Dubai and Abu Dhabi. The news comes after Dubai International Airport was listed by Airports Council International at 10th place in terms of international traffic, having handled 16.2 million passengers in the first six months of 2007, an 18 percent increase over the same period in 2006.

EADS is a global leader in the aerospace and defence fields, and includes in its portfolio Airbus and Eurocopter; it is also the leader in space programmes such as Ariane and Galileo. 2006 saw the company generate revenues in the area of €39.4 billion. The announcement comes immediately after Global Securities Equities Fund (GSEF) published news of its 3.12 percent stake in the European aerospace company. The GSEF is part of DICAM, the asset management subsidiary of Dubai International Capital (DIC).

Al Hashimi continued: "Zabeel shares DIC`s vision of expanding business opportunities beyond our physical borders, and we will continue to look for opportunities where Dubai companies can come together on strategic ventures, such as this."

Earlier this year, Zabeel and Dubai International Capital were linked when the former took a stake in DICAM`s US$2 billion Global Strategic Equities Fund (GSEF) which had its US$1 billion first closing in February. DICAM is the asset management subsidiary of DIC. Zabeel` acquisition and development plans will continue to gain impetus in 2007, with a number of projects in the pipeline.

The Company has embarked on a host of projects in recent months, with the most recent being a strategic 12 per cent equity stake in Emaar Industries & Investments (EII), a private joint stock company established to capitalize on the growth prospects of Middle Eastern, North African and South Asian manufacturing sectors. In January the company announced it had taken a stake in regional private equity leader Abraaj Capital, as well as stakes in Depa United Group and the Madaares initiative, a private joint stock company from National Bonds launched to raise educational standards in the UAE.

Located at Dubai International Financial Centre (DIFC), 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 Tatweer`s AED 200 billion Bawadi entertainment themed development.