Dubai state-owned developer Nakheel’s fourth-quarter net profit fell 69 per cent, according to Reuters calculations, as a drop in property prices has forced construction and engineering firms to cut jobs and halt expansion plans.
Nakheel made a profit of Dhs520m ($141.6m) in the October-December period, Reuters calculated, down from Dhs1.67bn a year ago.
The developer behind Dubai’s palm-shaped islands reported on Wednesday a 2018 annual profit of Dhs4.38bn, down from Dhs5.67bn in 2017. It did not report revenue.
Middle East publication Zawya earlier on Wednesday reported Nakheel recently laid off 300 employees.
“We continue to enhance efficiencies by implementing policies, such as outsourcing non-essential positions, that are in the best long term interests of our stakeholders,” a Nakheel spokeswoman told Reuters.
Nakheel has said in recent years it aims to increase recurring revenue from its hospitality and retail units, which include shopping centres in Dubai.
Damac Properties last month reported a 87 per cent drop in fourth quarter profit, while Emaar Properties, Dubai’s largest listed developer, reported a 27 per cent increase in quarterly profit.