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Dubai developer Nakheel posts 3.8% drop in H1 net profit

Dubai developer Nakheel posts 3.8% drop in H1 net profit

Annual revenues from the company’s non-development businesses are continuing to grow

Dubai developer Nakheel reported a 3.8 per cent drop in net profit for the first half of 2018 to reach Dhs2.51bn, compared to Dhs2.61bn during the same period last year.

The results come even as Dubai’s property market continues to remain stagnant, with prices expected to drop further, according to market reports.

Also read: Dubai property transactions drop in the first half of 2018

Dubai real estate slump to continue for another two years – S&P

However, Nakheel said annual revenues from the company’s non-development businesses – retail, leasing, hospitality and asset management – grew strongly during the period to reach Dhs2.6bn – three times as much as in 2010. These sectors currently account for 38 per cent of the company’s total revenue.

“Revenue from these sectors will continue to grow with the completion of retail and hospitality projects such as The Pointe, due to open this year, and The Night Market, Warsan Souk, The Palm Tower and Nakheel Mall, which are due to come on line in 2019,” Nakheel added.

Nakheel also handed over 451 units to customers in the first six months of the year, it said in the statement.

During the first six months of the year, the company also signed construction contracts worth more than Dhs6bn including Dhs4.2bn for Deira Mall, Dhs600m for Nad Al Sheba Mall, Dhs447m for a bridge between Deira Islands and mainland Dubai, and Dhs385m for the 800-room RIU resort at Deira Islands.

In H1 2018, the company also signed a joint venture with Al Nasr Sports and Cultural Club for a Dhs300m retail centre; announced a planned partnership with Austria’s Vienna House hotels for a new resort at Deira Islands; and revealed its first project outside of Dubai – a Dhs75m retail centre in partnership with the Sharjah Investment and Development Authority.

Earlier this month, it also announced that is investing Dhs15m to increase boat mooring capacity on its Palm Jumeirah development.

Read more: Nakheel invests Dhs15m in new marinas at Dubai’s Palm Jumeirah

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