Dubai developer Deyaar posted a notable decline of 49% in net profit, shrinking from Dhs140.1m in 2018 to Dhs71.5m in 2019.
The developer, impacted by the slump in Dubai’s property market, posted revenues of Dhs603.7m in 2019, recording a decline of 6.2 per cent, compared to Dhs643.7m in 2018.
The company’s board recommended capital reduction to offset accumulated losses of Dhs1.53bn after obtaining necessary approvals, a statement said.
“2019 saw several strong achievements in our portfolio – not least of which is the completion and handover of Afnan, the first district in our Midtown master development, with handover of Dania district currently in progress,” said Saeed Al Qatami, CEO, Deyaar.
“We also began the operation of our three hospitality projects with a total of 1,000 keys. In 2020, we are planning to move forward with the development of Midtown project and launch new districts with the handover of Bella Rose project by the end of the year.”
Deyaar’s first master development, Midtown comprises of six districts, which accounts for 26 buildings across a built-up area of almost five million square feet, offering a wide range of amenities and family entertainment options.
The developer’s Afnan and Dania districts stand completed, with new districts expected to be announced in 2020.
The developer, listed on the Dubai Financial Market (DFM), is majority-owned by Dubai Islamic Bank (DIB), the statement said.