Dubai – “ASWAQ”
Dubai’s Emaar Properties, the developer of the world’s tallest building in which Dubai’s government owns a minority stake, reported an 8 percent increase in its second-quarter net profit at Dh1.27 billion (US$345.8 million), as compared to Dh1.18 billion in the same period last year. This is in line with SICO Bahrain’s forecast that Emaar would make a quarterly profit of Dh1.06 billion.
Emaar recorded quarterly revenue of Dh3.73 billion, up from Dh3.50 billion a year earlier, attributed by the company’s achievement of new milestones (details not revealed) that contributed to higher revenue. Net profit in the first half of 2016 was Dh2.48 billion, 12 percent higher than the corresponding period last year.
Emaar’s shopping malls and hospitality businesses generated revenue of Dh1.36 billion in Q2,2016, with its international operations generating Dh533 million. Although no comparative figures or context were provided for the same quarter of 2015, it said in the statement that revenue from the retail business in the first half of 2016 was flat to the corresponding period of last year, with the absence of revenue from ‘The Address Downtown Dubai’.
The luxury hotel and residential tower, situated opposite the Burj Khalifa, was destroyed by a huge fire on New Year’s Eve which was caused by an electrical short circuit. The hotel is unlikely to reopen in 2016, Emaar said in April this year.
Emaar registered total property sales at Dh10.44 billion in the first half of the year, up 23 percent over the corresponding period last year, while sales in Dubai jumped 45 percent to Dh8.85 billion. The Dubai real estate sector has softened since late 2014 after a three-year boom contributed by cash inflows from politically unstable Arab nations.
Expressing concerns on the unstable market conditions in 2016, Mohamed Alabbar, the Chairman of Emaar Properties admitted that the firm had undertaken severe cost cutting measures to help meet the challenges.