Dubai’s Emaar Properties intends to reopen its landmark Address Downtown hotel by the end of the year, some two years after the skyscraper was gutted by fire following an electrical fault, its chairman told Al-Arabiya TV on Tuesday.
Mohammed Alabbar was speaking after the developer reported a 56 per cent rise in fourth-quarter net profits, boosted by higher revenue from property developments as well as the performance of its malls and hospitality businesses.
In a statement detailing its earnings, the company didn’t mention the impact on its results of the Dhs1.22bn ($332m) it was due to receive from an insurance claim for the Address Downtown fire.
The firm said on Feb. 6 the insurance payout would result in a writeback of the Dhs301m provision it made in its 2015 results against the costs of the fire and would be recorded as income in the quarter ending Dec. 31 2016.
On Tuesday the company, in which Dubai’s government owns a minority stake, reported a net profit of Dhs1.61bn ($438.4m) for the quarter, up from Dhs1.03bn in the same period of 2015, while revenues were up 16 per cent at Dhs4.44bn.
SICO Bahrain forecast Emaar would make a quarterly profit of Dhs1.32bn while EFG Hermes had forecast Dhs1.64bn.
Last year the developer started construction work on The Tower at Dubai Creek Harbour, which when complete in 2020 is set to be the world’s tallest tower. The project is a joint venture between Emaar and Dubai Holding, the investment vehicle of the emirate’s ruler, Sheikh Mohammed bin Rashid al-Maktoum.