Dubai: Real estate company Al Mazaya Holding on Sunday announced it has bought back six per cent of its shares from the market in a bid to benefit its revenues.
Due to correctional movements in the financial markets, senior officials at Al Mazaya believe that by buying back shares it can boost the market value of the company's equities.
This decision follows the recent introduction of a law allowing companies to buy back a maximum of 10 per cent of their total shares.
"Al Mazaya will target the full 10 per cent and this will be among the coming days since it has now reached 6 per cent (directly and indirectly)," Khalid Esbaitah, chief executive officer of Al Mazaya Holding told Gulf News.
The total value of this already purchased six per cent of shares equals around Dh254 million, Esbaitah said. Esbaitah also said there was a "strategic plan to release these shares (back) in the market at the right time".
Al Mazaya's projects and investments have been rolled out over a five year plan. DIFC-based Sky Gardens residential project has contributed "significantly" to the firm's success, having been sold to Amlak at a profit of Dh999 million. Around Dh653 million went straight to Al Mazaya.
The company intends to include Dh361 million of this amount to this year's budget, while the remaining Dh291 million will be allocated to next year's budget, Esbaitah said.
Al Mazaya also has projects underway, including Queue Point at Al Liwan, Business Avenue Towers and Icon Towers in Jumeirah, a commercial tower on Shaikh Zayed Road and another project in Downtown Jebel Ali. Also on the card, are several projects in Kuwait.
Officials at Al Mazaya believe that by buying back the shares, it can boost the market value of the company's shares. This decision follows the recent introduction of a law allowing companies to buy back a maximum of 10 per cent of their total shares.[Gulf News]