Gulf corporations spark a new trend through involvement in the sporting arena - IFN

Gulf corporations spark a new trend through involvement in the sporting arena

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GLOBAL: Dubai-based land and real estate developer, Emaar Properties which issued a US$500 million Sukuk Ijarah last year, has contracted a sponsorship deal with the Lotus F1 team. The two-year partnership agreement commences onthe 6th September 2013 in conjunction with the Italian Grand Prix in Monza. Having previously sponsored the Dubai World Cup horse race and the Dubai Desert Classic golf tournament, Emaar is further expanding its horizons into the motorsports arena with its latest venture. The deal is part of the Emaar’s strategy in increasing its international brand imprint. Commenting on the arrangement, Mohamed Alabbar, chairman of Emaar Properties said: “As they race at the Formula 1 Championship circuits across the world, we are truly honoured to extend our support to the Lotus F1 Team, while also engaging with our international clientele and further defining the global identity of our brand.” Gulf conglomerates such as GFH Capital, Emirates Airline, Bank AlJazira, Mubadala, Etihad Airways and United Arab Bank which have tapped into the Islamic markets, have also diversified their investments into sports-related activities. Perhaps the most headline-grabbing deal from last year is the acquisition of UK’s Leeds United Football Club by GFH Capital in November. GFH Capital is a subsidiary of Bahrain’s Shariah compliant investment firm, Gulf Finance House. Emirates Airline which recently announced a Sukuk proposal for the financing of its aircraft fleet, also has a vast portfolio of involvement in sporting activities such as FIFA, Arsenal Football Club, as well as numerous Formula One races. Earlier in 2007, sovereign wealth fund and investment arm of the UAE government, Mubadala Development Company sponsored the Ferrari F1 Team for a period of three years. The trend of sponsoring global sporting events is likely to become a trend as Gulf-based corporations look to position themselves on a global scale.