Emaar says ‘no material impact’ on company after The Address fire

The company has issued a statement to the Dubai Financial Market following the New Year's Eve blaze.

Emaar shares, listed in the Dubai Financial Market, were down during the first trading day of the year. Victor Besa for The National

Emaar Properties said there would be ‘no material impact’ on the company following the fire at The Address Downtown in Dubai.

The blaze, which happened on New Year’s Eve just before the city’s firework display, engulfed the 63-storey luxury hotel and residential tower. The flames were extinguished on Saturday.

In a statement to the Dubai Financial Market this morning, Ayman Hamdy, Emaar’s general counsel, confirmed that the building was covered by insurance.

“The fire has been contained and the cause is being investigated by the company and the relevant authorities.

“The building and risk of fire are covered by insurance so there should be no material impact on the company as a result of this incident.”

Shares in Emaar, the Dubai Financial Market’s heaviest stock at 18.8 per cent, closed down 1.5 per cent at Dh5.60 per share as UAE markets opened for the first time in 2016.

The company’s chairman, Mohamed Alabbar, said yesterday that it intends to restore the building “to all its glory and even surpass the splendid architectural standards. Further timelines and plans will be shared as they are finalised.”

“We develop our projects to the highest standards of quality and as per international best practices,” he added.

• UPDATE: Emaar said it had hired Dubai-based Dutco Group as contractor to clear and restore the hotel.

The developer said in a statement released on Sunday afternoon that a team of international consultants has already been mobilised by Dutco Group, who are on site and working “round-the-clock”.

It added that cleaning work has started with the mechanical, electrical and structural assessment of the building and restoration also underway.

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