Dh1.8b from Naming, Funding Rights

Total proceeds raised from the bidding of the first batch of Dubai Metro Stations Naming Rights almost hit Dh1.804 billion, of which Dh886.7 million are proceeds from the Metro Stations Naming Rights category.

The remaining Dh917 million came from companies and organisations to the fund construction of the Metro stations. The naming rights are being given for 10 years and priority will be given to the same companies to extend their contracts after the expiry of the 10-year deal, a top official of RTA told Khaleej Times. “We cannot change the name of the station every year as people will get confused, so the minimum contract is for 10 years.”

Some of the payments have already been received from the companies, Abdul Mohsin Ibrahim A. Younis, CEO, RTA, Strategy & Corporate Governance said. Mohsin said the Metro project will be completed on schedule as the first Red Line will start in September 2009 and the Green in March 2010. He said the value of naming the rights of one station to another differs, depending on location and other factors. The terminals have higher values.

“There are certain guidelines to choose the company as we see brand and name, its financial position and technical criteria as well.”

In response to a question regarding delay of RTA projects, Al Tayer said, “The RTA has so many sources of income and infrastructure is very important so we cannot stop these projects.”

The chairman said revenues raised from branding stations will be invested in sustaining the development of Dubai Metro network in an accelerated manner, providing a better service to the public. At the top of the brands that met the selection criteria of Metro Naming rights and partnership with the RTA are Majid Al-Futtaim Group (Mall of the Emirates Station) and (Deira City Centre Station).

The list also includes Emirates Telecommunication Corporation (Etisalat Station), Gulf General Investment Company (GIGCO Station), Sharaf DG Station, First Gulf Bank Station and Nakheel which has 3 stations namely: (Nakheel Station, The Palm Deira Station and Nakheel Harbour & Tower Station) and the Dubai Airport Free Zone Station, said Al Tayer.

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