Emaar expects profit to quadruple by 2018
Chairman says expectations realistic and even a bit conservative
Dubai’s largest listed real estate developer, Emaar Properties, has predicted that its profits willmore than quadruple by 2018 as the Emirate’s economy booms and the company’s overseas business expands.
Emaar chairman Mohamed Alabbar told the company’s annual general meeting that he expected net profit to hit $837mn (AED3.97bn) this year, according to Reuters.
The figure would mark an increase of 19% over last year’s (AED2.57bn).
Alabbar predicted a continued rise to $1.6bn (AED5.82bn) in 2016 and $2.97bn (AED10.93bn) in 2018.
"These are realistic expectations and even a bit conservative," he said, adding that the company only booked profits upon completing projects.
Much of Emaar's growth is expected to come from projects worth billions of dollars within Dubai; over the last 18 months, the company has announced plans for huge residential and commercial developments in the Emirate.
Last month the company said it would sell up to 25% of its shopping mall unit in coming months through a public offer expected to raise between $2.1bn (AED8bn) and $2.5bn (AED9bn), one of the region's largest equity offers since 2008. Shares in the unit may be listed in London and Dubai.
Emaar is also involved in projects across much of the Middle East, including Saudi Arabia, Egypt and Turkey, and countries as far afield as Pakistan and Indonesia.
"We don't guarantee the economic and political situations in the countries we operate. In Egypt for example the company halted operations for around six months during the revolution of 2011,” Alabbar said.