Nakheel reports 39% net profit rise for first nine months of 2015

Dubai developer Nakheel reported a 39 per cent increase in net profit for the first nine months of 2015, it announced on Wednesday.

Nakheel said it made a net profit of Dhs 3.61bn between January to September 2015, up Dhs 1bn – or 39 per cent – compared to Dhs 2.6bn during the same period last year.

The company attributed the increase to strong performance by its development business, with ongoing handovers of properties to customers.

Nakheel’s retail, leasing and leisure businesses also helped boost profit during the year, it said in a statement.

Chairman Ali Rashid Lootah said: “The significant increase in our net profit is a sign of stability in the local real estate market. We will continue to build on these results during the last quarter of the year.

“Nakheel continues to play a key role in the Dubai economy by stepping up construction on a number of projects. We have announced more than Dhs 3.1bn worth of construction contracts in the last three weeks alone [for The Palm Tower, Deira Islands Night Market, Warsan Souk and The Circle Mall].

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

Nakheel, which made a net profit of Dhs 3.68bn last year, has focussed heavily on developing its retail and hospitality portfolios in the last two years.

The firm’s retail portfolio currently includes 10 new large-scale retail developments and a number of smaller community centres close to its residential projects.

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

It is also planning 10 hotels across Dubai, including five at Deira Islands, the five-star Palm Tower on Palm Jumeirah and hotels at Dragon City and Ibn Battuta Mall.

Speaking to Gulf Business last month Nakheel’s chief commercial officer Aqil Kazim confirmed that the majority of the developer’s new projects are intended to be completed within three to five years.