Dubai property firm Damac sees Q4 profit dip 47%

Dubai’s Damac Properties, the owner and operator of the only Trump-branded golf club in the Middle East, posted a nearly 47 per cent drop in fourth-quarter profit, while full year profit dropped by 25 per cent.

The results came as Dubai, its core property market, saw lower property prices last year due to modest demand and rising supply as new developments hit the market.

Damac’s 2017 net profit was Dhs2.76bn ($751.4m), down from Dhs3.69bn year earlier, it said in a statement.

Read: Damac chairman could sell part of stake to boost trading

Its fourth-quarter profit slipped to Dhs455m versus Dhs851m for the same quarter in 2016, according to Reuters calculations.

The company said gross profit was down 9 per cent in 2017, hurt by decline in margin for international projects.

Damac said its booked sales stood at Dhs7.5bn as of December 31, compared to Dhs7bn in 2016.

Damac said it was optimistic about the future.

“Our medium to long term outlook remains positive, with continued local demand as well and stronger interest by international investors,” it said.