UAE developers Aldar, Sorouh eye state-backed merger

DUBAI: Struggling Abu Dhabi developer Aldar Properties may merge with local rival Sorouh Real Estate in a possible government-back tie-up, the firms said in a joint statement on Sunday.

Aldar, which is majority-owned by Abu Dhabi and built the Yas Marina Formula One circuit, has been bailed out twice by the government over the past 18 months with rescue packages totalling some $10 billion.

The two are the No. 1 and 2 developers in the emirate, with the smaller Sorouh faring better than its bigger rival amid a property slump dating back to 2008.

Shares in both companies ended up 8 percent on the Abu Dhabi exchange on Sunday. The statement came after markets closed.