Dubai developer picks India for public share offer

Emaar Properties, the developer building the world's tallest skyscraper in Dubai, plans an initial share offering in India "in a few weeks", according to chairman Mohammed Alabbar.

"India has done extremely well for us, and that's why we are going public in India, probably in a few weeks," he said at the World Economic Forum in Dubai, where the company is based.

"The banking system is solid and India is still a conservative environment that suits us well."

New Delhi-based Emaar MGF Land plans to raise 38.5 billion rupees ($1.14 million). The unit, which scrapped a US$1.64 billion ($2.26 billion) initial public offering in February last year, had 29 residential and commercial projects under way at the end of August.

"I would really lean towards India because it's a huge economy," Alabbar said. "It's growing at a reasonable rate and it's not crazy like China so it's good for us and we can grow reasonably well."

Emaar, the United Arab Emirates' biggest developer, is in talks to combine with three units of state-controlled Dubai Holding. A merger with Dubai Properties, Sama Dubai and Tatweer could generate "exceptional" cost savings amid a glut of homes that drove down prices.

"It would be a great opportunity because we are going to put our hands on a very valuable land bank," Alabbar said.

Alabbar, who heads a Government committee on the credit crisis in Dubai, said the sheikhdom would grow by 5 per cent in 2009.

Dubai set up a US$20 billon fund to help state-related companies through the credit crisis. The fund borrowed the first US$10 billion by selling bonds to the United Arab Emirates' central bank in February. Dubai earlier borrowed more than US$80 billion to transform the economy into a tourist and financial services hub.

Alabbar said he was confident that investors would buy a "reasonable chunk" of a second US$10 billion bond issue.

- BLOOMBERG