UAE Real Estate
United Arab Emirates Financials : Real Estate 20 November 2013 Initiation of Coverage Stocks featured: recommendations Rec Last Tgt Upside UAE Real Estate price price CU Emaar Properties PJSC Hold 6.00 6.70 12% Dubai a premise; Abu Dhabi a promise (EMAAR UH; AED) Aldar Properties PJSC Hold 2.48 2.40 -3% (ALDAR UH; AED) United Arab Emirates comprises seven emirates, out of which the two economically stronger are Dubai and Abu Dhabi. While Abu Dhabi is resource rich (c 6% of global oil reserves, 2.9% of natural gas, reserve Stocks featured: stock data life of c 80 years), Dubai has positioned itself as a gateway to Asia and M C AP, EV, USD # shares, Free beyond as a logistics hub and tourism destination. An unparalleled USD mn mn mn float, % state of economic, political and social governance has placed Dubai as Emaar 9,950 14,459 6,091 20% Properties PJSC a safe haven and the best place to do business in a four-hour flying Aldar Properties 5,309 9,147 7,863 67% radius. Abu Dhabi is attempting something similar, but lags Dubai. PJSC Emaar (Hold, TP AED 6.7, 12% upside) is structurally better positioned than Aldar (HOLD, TP AED 2.4, 3% downside): The key structural Stocks featured: recent performance differentiators for Emaar vs. Aldar are 1./ Macroeconomic environment – 1M 3M 12M ADTV, 3M, Emaar & Aldar are respective plays on Dubai and Abu Dhabi real estate USD mn sectors. 2./ Non-resident exposure – Emaar derives both an outward Emaar Properties PJSC 0.5% -3% 66% 20.4 Aldar Properties PJSC -5.3% -11% 92% 33.4 investment via an international footprint and an inbound investment from non- residents due to Dubai’s safe haven status.
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