Emaar Properties records 19% growth in net profit

RetailME Bureau

Global property developer Emaar Properties recorded 19% growth in net profit to AED3.6 billion ($986 million) during the first nine months (January to September) of 2016 compared to a net profit of AED3.05 billion ($830 million) during the same period in 2015.

Revenue for the first nine months of 2016 was AED11.103 billion ($3.02 billion). This is an increase of 13% over the revenue of AED9.85 billion ($2.68 billion) during the same period last year.

The combined revenue from the shopping malls and retail and hospitality and leisure businesses during the first nine months of 2016 stood at AED4.28 billion ($1.17 billion), similar to same period in 2015 despite the ongoing development at The Address Downtown Dubai hotel this year. Today, these two business segments account for 39% of the total revenue of Emaar.

Emaar’s international operations recorded revenue of AED1.70 billion ($462 million) during the first nine months of 2016, accounting for 15% of the total revenue.

With total sales of AED14.69 billion ($4 billion) during the first nine months of 2016, which is 28% higher than the sales of AED11.44 billion ($3.12 billion) during the same period last year, Emaar now has a backlog of AED47.576 billion ($12.95 billion) to be recognised in the next few years.

Positive growth in the third quarter of 2016

During the third quarter (July to September) 2016, Emaar recorded a net profit of AED1.15 billion ($312 million), which is 36% higher than the Q3 2015 net profit of AED843 million ($230 million).

Revenue for Q3 2016 was AED3.85 billion ($1.05 billion), 16% higher than the Q3 2015 revenue of AED3.33 billion ($906 million).

“Our focus for 2016 has been to maximise operational efficiency and drive profitability, while strengthening our revenue stream through new developments in prime real estate assets, malls and hotels in Dubai,” states Mohamed Alabbar, chairman of Emaar Properties.

“The vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE vice president and prime minister and ruler of Dubai, is to create a smart city of the future. This has always been our inspiration to push our boundaries and be more innovative. Dubai Creek Harbour, Dubai Hills Estate and the ongoing expansion of Downtown Dubai are examples of our commitment to create city hubs with digital lifestyle features that meet the aspirations of the future generation,” he adds.

According to Alabbar, Emaar is drawing on the potential of digital technologies to enhance efficiency and customer service. “Across all our operations – from project design to development and after-sales service, we are being even more customer-oriented. With technology changing modern lifestyles, we aim to be more agile, responsive and relevant to ensure that we create long-term value for our stakeholders,” he says.