Emaar Malls reports 66% decrease in net profit for January-September 2020

Emaar Malls, the shopping malls and retail division of Emaar Properties, has reported revenues of Dhs2.493bn for the first nine months of 2020 from January-September, a decrease of nearly 27 per cent compared to Dhs3.412bn it reported for the corresponding period last year.

It also reported a net profit of Dhs586m for January-September 2020, which was down over 66 per cent compared to the Dhs1.732bn net profits it witnessed in the first nine months of 2019.

With the Covid-19 pandemic, malls were temporarily closed earlier this year across the country and footfalls increased only gradually once they reopened.

“We remain optimistic about the immediate future of the retail industry in Dubai during the remainder of 2020 and look forward to seeing tourists and visitors slowly return to the high numbers we’re accustomed to. In the long-term, we are confident that 2021 will see us grow our business once again,” said Mohamed Alabbar, founder of Emaar Properties and Emaar Malls.

“The results reflect Emaar Malls’ ability to thrive during these testing times. We have worked with retailers to make sure the shopping experience is safe and enjoyable, which includes abiding by the measures set out by the Dubai Government. The result is that we see visitors returning to the malls in higher numbers. We have also extended our Rent Relief Policy for all our tenants until the end of the year,” added Alabbar.

Emaar reported 91 per cent occupancy levels across Emaar Malls’ assets including The Dubai Mall, Dubai Marina Mall, Gold & Diamond Park, Souk Al Bahar and the Community Retail Centres.

Dubai reopened to tourists in July this year, after nearly four months during which tourists were not permitted to enter, and airports across the country were closed for regular commercial operations.

Read: Dubai reopens to international tourists

E-commerce has received a boost during the pandemic as people have resorted to digital channels for several of their purchases.

Regional e-commerce fashion and lifestyle platform Namshi, which was fully acquired by Emaar Malls in 2019, recorded nine-month revenues of Dhs933m, 35 per cent higher year-on-year. Emaar said that Namshi’s growth was also due to “exponential growth in the Saudi market”.

In a statement, Emaar Malls outlined some of recent projects including the redeveloped the Meadows Village Mall where the gross leasable area was increased by approximately 95,000 sq ft and which opened on October 29, 2020. It will also open Dubai South Village Mall in Q4 2020.

Read: Emaar Malls appoints Rajiv Suri as new CEO