Nakheel reports 57% first-half profit hike

Dubai developer says 1,400 properties delivered in six months

NEWS, Business

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The developer of Dubai's Palm Jumeirah and The World Islands, Nakheel, has reported a 57% jump in first half profits to $326.7m (AED: 1.2bn).

The company said that revenues also climbed by 36% to $1.15bn (AED: 4.23bn).

In a statement, Nakheel said the six-month period had been a "hive of activity", where it handed over 1,300 new homes in residential developers at Palm Jumeirah, Al Furjan, International City, Jumeirah Village, Jumeirah Park and Jumeirah Heights. It added that it remains on course to deliver a total of 3,000 units by the end of the year.

The company said that handovers were the main contributor to its improved revenues and argued that it had a "strong pipeline" of projects under development with a view to increasing its pool of cash-generating assets.

New projects include the Nakheel Mall and Hotel and The Pointe development on Palm Jumeirah, the extension of the Dragon Mart and Ibn Battuta Shopping Malls and the building of new units across a series of existing residential communities.

It is also "evaluating a number of additional projects that will add value to existing communities and result in a more sustainable and viable business post-restructuring".

The company said that it was also continuing to pay down debt, and has now repaid over $350m (AED: 1.3bn) in loan interest and over $3bn (AED: 11.3bn) to trade creditors and contractors since its restructuring terms were concluded in August 2011



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