CORRECTED - UPDATE 2-UAE's Emaar says to take over Egyptian developer

(Corrects figure in 9th paragraph to $5.74 billion from $574 billion) (Updates with details, background)

DUBAI, March 13 (Reuters) - Dubai-based Emaar Properties EMAR.DU, the largest Arab developer by market value, said on Tuesday it had agreed to take over an Egyptian developer, in which it owns a 40 percent stake.

Emaar, which is developing projects worth almost $6 billion in Egypt, would buy the stakes of its Egyptian partners in a transaction that should close on March 27, it said in a statement.

An Emaar spokesperson contacted by Reuters declined to disclose the value of the deal.

Emaar is expanding outside of Dubai, the commercial hub of the world's largest energy-exporting region, with $60 billion of developments in 14 countries, including Syria, Pakistan and India.

"Egypt is a key market for Emaar ... we will announce major projects in Egypt shortly," Emaar Chairman Mohamed Alabbar said in the statement.

ARTOC Group for Investment and Development was one Egyptian partner in Emaar Misr for Development Co., set up in 2005 to develop residential, commercial and tourist projects in Cairo and on the Mediterranean coast, the spokesperson said.

United Arab Emirates firms have been key to boosting flows of foreign direct investment (FDI) into Egypt, which expects FDI to rise to about $8 billion in the year to June 30 from $6.1 billion a year earlier, Egypt's investment minister has said.

UAE's Emirates Telecommunications Corp. (ETEL.AD) (Etisalat) led a consortium that won Egypt's third mobile phone licence in a $2.9 billion deal last summer.

Emaar Egypt, which said in October it had decided in principle to float some of its shares on the Egyptian stock exchange and would decide on the details this year, is developing two projects in Egypt worth $5.74 billion.

The biggest project is Uptown Cairo, a $4 billion scheme to build more than 1,000 houses, 4,000 apartments and two hotels, as well as a golf course, on the edge of the capital, according to Emaar's Web site.

Future projects would also involve retail, education, healthcare, finance and industry, Emaar said. Emaar has allocated $2.9 billion for its projects in the UAE and abroad in 2007, the company's chairman said this week.

Emaar's 45-percent-owned Islamic mortgage lender Amlak Finance AMLK.DU said this month it would introduce home loans to Egyptian customers this year.

Emaar Egypt has a share capital of 400 million pounds ($70.15 million) and an authorised capital of 2 billion pounds.