Dubai’s Nakheel reports 10.5% drop in first half net profit

Nakheel handed over almost 870 land form and built form units to customers between January 1 and June 30

July 26, 2017

Dubai developer Nakheel announced a net profit of Dhs2.64bn for the first six months of 2017, down around 10.5 per cent compared to Dhs2.95bn in H1 2016.

In a brief statement, the company said that revenues from non-development businesses – including retail, leasing, hospitality and asset management services – registered a “significant increase”.

It did not specify the reason for the drop in profit or its overall revenue figures.

Nakheel confirmed that it handed over almost 870 land form and built form units to customers between January 1 and June 30.

It has also announced construction contracts worth more than Dhs11bn in the first six months of 2017, including an Dhs4.2bn contract for Deira Mall and a Dhs1.5bn contract for The Palm Gateway.

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Since April 2017, Nakheel has released a construction tender for its first hospitality joint venture – the Dhs670m, 800-room RUI resort at Deira Islands.

The company has also broken ground on new hotels at Dragon City and Ibn Battuta Mall which have a combined project value of Dhs416m.

In the statement, Nakheel asserted that it is “confident of achieving its forecast 2017 result, which will reflect an overall growth in profits for the year”.

Nakheel is currently focussed on developing its retail, leasing, hospitality and asset management services, with annual revenues from these segments growing from Dhs800m in 2010 to an estimated Dhs2.5bn in 2017.

“The surge in non-development revenues has also resulted in a significant increase in the asset values of the company,” Nakheel added.

Nakheel’s current and future retail project portfolio covers nearly 17 million square feet of leasable space. Major developments include Ibn Battuta Mall, Dragon Mart 1 and 2, Golden Mile Galleria, Nakheel Mall, The Pointe, Deira Mall, Deira Islands Night Souk, Warsan Souk, Al Khail Avenue, The Circle Mall and Nad Al Sheba Mall.

Its hospitality project portfolio includes 18 hotels and serviced apartment developments with more than 5,800 rooms between them located in Palm Jumeirah, Deira Islands, Ibn Battuta Mall, Jumeirah Village and Dragon City.

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