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Six-month net profit dip for Dubai developer Nakheel

The Dubai-based development heavyweight reported a 3.8% drop in net profit in the first six months of 2018 compared to H1 2017

The developer handed over 451 units to its customers in the first half of 2018 [representational image].
The developer handed over 451 units to its customers in the first half of 2018 [representational image].

Dubai development giant Nakheel has reported a 4% dip in profitability in the first six months of the year, compared to same period in 2017.

According to the group’s first-half 2018 financial results, its net profit stood at $683.3m (AED2.51bn), a slight 3.8% drop on H1 2017’s $711m (AED2.61bn) net profit figure.

Handing over 451 units to its customers in the first half of the year, Nakheel said its non-development businesses – including retail, leasing, hospitality, and asset management – “all performed strongly”, Dubai Media Office reported.

Annual revenues from these sectors combined stood at $707.8m (AED2.6bn), three times higher than in 2010, and accounting for 38% of the firm’s total revenue.

READ: Dubai's Nakheel to issue Palm 360 construction tender in Q3 2018

The company said it expects this figure to increase “with the completion of retail and hospitality projects such as The Pointe, due to open within the year, as well as The Night Market, Warsan Souk, The Palm Tower and Nakheel Mall – all due to go on-line in 2019”.

This year saw the developer, which is responsible for some of Dubai’s most iconic developments including the Palm Jumeirah, officially sign construction contracts worth more than $1.6bn (AED6bn).

READ: Nakheel's $46m Dragon City expansion racing ahead in Dubai

These included a $1.1bn (AED4.2bn) contact for Deira Mall, another deal for Nad Al Sheba Mall valued at $163.3m (AED600m), as well as a $121.7m (AED447m) agreement for a bridge between Deira Islands and mainland Dubai.

Two months ago the firm said it was reviewing 11 construction proposals for its Dragon Towers project in Dubai, located in Nakheel’s China-style Dragon City – a mixed-use development spanning 1 1km².

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Construction Week - Issue 746
Jul 20, 2019