Emaar says it will not pay 2009 dividend

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Emaar Properties said its board has approved a proposal not to pay a dividend for 2009, according to a statement on the Dubai bourse.

The company will transfer last year's profit to its reserves and will seek the shareholders approval in a meeting on April 29, the statement said.

In a separate statement sent to Construction Week late last night Emaar said: “[It] emerged as a strong and profitable company in such a challenging environment. This is due to resilience the Company has towards such difficult times and its conservative financial policies that the Company adheres to. The decision in respect of the dividend for the year 2009 is in line with such financial policies and due consideration given by the Board of the current financial markets.

"Emaar has embarked on the strategy to take the Company to its next stage of growth and development and for this it is essential that due consideration is given to all its stake holders interests including the financial institutions, customers and contractors, who have fully assisted the Company in previous years. For this purpose, it is essential for the company to maintain its liquid resources and balance sheet strength.”