Nakheel posts 53% net profit rise in first half of 2015

Dubai developer Nakheel has reported a 53 per cent rise in net profit during the first half of the year to reach Dhs 2.83bn, compared to Dhs 1.85bn in H1 2014.

The company credited the increase in profit to a strong performance by its development business, with ongoing handovers of properties to customers.

The company’s retail, leasing and leisure businesses also contributed to the overall financial results for H1 2015, it said in a statement.

Nakheel chairman Ali Rashid Lootah said: “We will build on these results during the second half of this year and remain committed to playing a key role in contributing positively and effectively to Dubai’s real estate sector.

“Our strategy of continuing to create more cash-generating assets will further boost our business and financial results in the coming years.”

Nakheel said it will continue to focus on completing various development projects currently under construction, as well as expanding its retail, hospitality and residential leasing projects.

The developer has been reporting strong results in the last few quarters boosted by Dubai’s maturing property market.

In an interview with Gulf Business in April, Lootah confirmed that Nakheel expected to continue posting a steady annual profit growth of 40 per cent in 2015 and 2016.

The company is focussing on growing its retail portfolio, which currently includes 10 new large-scale developments such as Nakheel Mall, The Pointe and Golden Mile in Palm Jumeirah, and Deira Mall and Night Souk in Deira Islands, and other smaller-scale community retail centres.

In total, the company has over 11 million square feet of leasable retail space in the pipeline, in addition to the 2.5 million already in operation at its Dragon Mart and Ibn Battuta Mall developments.

Nakheel also forayed into hospitality in 2014 and plans to open 10 hotels and resorts across its master developments – Palm Jumeirah, Ibn Battuta Mall and International City by 2020.

In April, the developer confirmed that it is planning to undertake 23 million sq ft of new residential and leisure projects worth Dhs14 billion over the next three years.