The merger announced in June between Dubai's two largest master property developers, Emaar Properties and Dubai Holding Commercial Operations Group (DHCG), will change the shape of the industry in Dubai, says the ratings agency Moody's Investors Service. In its latest Dubai property report, Moody's says the consolidation of Emaar and DHCG would create a dominant entity in thelocal market. Once the merger is concluded, most likely before the end of this year, the new company would have strengthened bargaining power with contractors and benefit from economies of scale, the report said. The merged company would also have access to a substantial land bank.
"Several drivers - such as the opening of Dubai's Metro (public transportation system), the inauguration of Burj Dubai (the world's tallest skyscraper) and the end of the school year, and the beginning of the summer period - will shape Dubai's residential property market in the near term and lead to greater differentiation within Dubai's residential areas, from which Emaar and Dubai Holding's real estate divisions may benefit," the report said.
On June 30, Moody's placed both Emaar's and Dubai Holding's long-term issuer ratings on review for possible downgrade. "Our review will assess asset valuation, government ownership, dividend policies, the new capital structure and strengths of the combined cash flows, as well as the liquidity profile of the new entity," the agency said. ngillet@thenational.ae
The biog
Title: General Practitioner with a speciality in cardiology
Previous jobs: Worked in well-known hospitals Jaslok and Breach Candy in Mumbai, India
Education: Medical degree from the Government Medical College in Nagpur
How it all began: opened his first clinic in Ajman in 1993
Family: a 90-year-old mother, wife and two daughters
Remembers a time when medicines from India were purchased per kilo
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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4.35pm: Tilal Al Khalediah
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