Dubai’s Emaar Properties reports 16% rise in profits
Boost comes on back of higher international sales, growth of malls and hospitality business
The Dubai-listed developer Emaar Properties reported a net profit of $321 million during the second quarter, a 16% rise on the same period last year.
Revenue for the first six months of the year stood at $1.769 billion, marking a 13% growth over the first half of 2014, Emaar said in a statement to the Dubai Financial Market.
Drivers of the growth included Emaar’s international real-estate sales, which increased by 36% in the first half, and recurring revenue from its shopping malls, retail and hospitality business, up by 10% to $790 million. The latter business now makes up about 45 per cent of the company’s total revenue, Emaar said.
“Our credentials in quality project execution and timely delivery have been our strong-points, especially with the maturing of our home market in Dubai driving end-user demand towards Emaar projects as the most trustworthy in the market,” said Mohamed Alabbar, chairman of Emaar Properties, in a statement.
Emaar has reported rising profits for nine quarters in a row, according to Reuters data, despite a slowdown in the property market in Dubai. Property prices in the emirate are set to fall by a further 10% to 20% by early 2016 as the market correction continues, the global ratings agency Standard & Poor’s said in June.
