Dubai's Nakheel says half-year net profit falls to $720m

Master developer says still confident it will see overall growth in profit for the year
(KARIM SAHIB/AFP/Getty Images)
By Staff writer
Wed 26 Jul 2017 01:12 PM

Dubai master developer Nakheel on Wednesday announced a net profit of AED2.64 billion ($720 million) for the first six months of 2017, down from AED2.95 billion in the year-earlier period.

The company said in a statement that it is confident of achieving its forecast 2017 result, which will reflect an overall growth in profits for the year.

Nakheel added that it handed over almost 870 units to customers between in the first half of 2017.  

Revenue from non-development businesses – including retail, leasing, hospitality and asset management services – registered a significant increase, it said.

Annual revenues from these segments have more than trebled from AED800 million in 2010 to AED2.5 billion in 2017.

Nakheel is continuing its strategy of developing its cash-generating assets, and announced construction contracts worth more than AED11 billion in the first six months of 2017.

These include an AED4.2 billion contract for Deira Mall at Deira Islands and a contract for AED1.5 billion for The Palm Gateway at Palm Jumeirah.

Since April, Nakheel has released a construction tender for its first hospitality joint venture – the AED670 million, 800-room RUI resort at Deira Islands. The company has also broken ground on new hotels at Dragon City and Ibn Battuta Mall which have a combined project value of AED 416 million.

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