Emaar move prompts investor unease

When Emaar Properties announced its merger talks with three government- related developers, it described the move as marking the start of a “new chapter in the annals of real estate globally”.

Yet the initial reaction of investors in the Middle East’s largest developer was less favourable. Emaar’s shares tumbled almost 10 per cent on Sunday, the day of the statement, and a further 2.1 per cent yesterday.

Their concerns are that their holdings might be diluted and about the benefits of an alliance with the three smaller developers – Dubai Properties, Sama Dubai and Tatweer – that have less of a record than Emaar, analysts say.