Publicly-listed construction and property developers in the UAE saw a dramatic drop in share values amid the financial crisis of 2008 – 2009.
But as the UAE economy demonstrates signs of recovery, a clutch of local property firms have witnessed a rebound.
The financial results of the majority of the UAE’s top builders, listed on either Dubai’s or Abu Dhabi’s stock markets, during the first quarter of the year were positive.
Dubai-based Arabtec Holding, the UAE’s largest construction firm by market value, more than tripled its first-quarter net profit to Dhs84.1 million ($22.9 million), up from Dhs26.6 million during the same period last year.
The builder, in which Abu Dhabi investment fund Aabar has a 20.76 per cent stake, said that revenue for the quarter rose slightly to Dhs1.3 billion from Dhs1.2 billion in the previous year.
Abu Dhabi’s Aldar Properties posted a net profit of Dhs478.2 million ($130.2 million) during the first quarter of the year, almost 153 per cent higher than Dhs189.1 million in the same period in 2011.
Revenues reached Dhs3.58 billion during the quarter, up from Dhs784.7 million in the same quarter last year, the company said. They were mainly boosted by sale contracts worth Dhs2.2 billion signed with the Abu Dhabi government and other related entities.
Dubai’s Emaar Properties reported that its first quarter net profit rose 44 per cent rise to Dhs606 million ($165 million), compared to Dhs421 million during the same period last year.
The firm raised revenues of Dhs1.8 billion during the period, with malls and retail businesses contributing Dhs651 million and hospitality adding Dhs403 million.
Abu Dhabi’s Sorouh Real Estate, which is currently studying a state-backed merger with Aldar, posted a 30 per cent rise in quarterly net profit.
The company made a first-quarter net profit of Dhs83.6 million ($22.76 million) compared with Dhs64.3 million during the same period last year.
Revenues during the period doubled to Dhs967.2 million, with income from national housing projects generating Dhs62 million in gross profit for the quarter.
5. RAK Properties
RAK Properties, listed on the Abu Dhabi Securities Exchange, announced that its net profit increased 29.6 per cent to Dhs46.09 million in Q1 2012, compared to Dhs35.56 million in Q1 last year.
The company’s revenues rose dramatically, from Dhs7.56 million in Q1 2011 to Dhs195.33 million this year.