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Fri 18 May 2018 12:25 AM

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Work set to start on new $410m Dubai skyscraper

Shuaa Capital says construction of mixed-used Dubawi project to begin soon

Work set to start on new $410m Dubai skyscraper

Construction work on a new $410 million skyscraper located in the heart of Dubai on Sheikh Zayed Road will start soon, Shuaa Capital has announced.

Designed as a mixed-use hotel and residential tower to address demand in the UAE’s residential, tourism and hospitality sectors, Dubawi will feature 500 hotel rooms and serviced apartments sharing amenities with the hotel, as well as over 500 apartment units and penthouses.

The development scheme will be managed by Shuaa’s specialised real estate asset management division, which currently manages assets in excess of AED3 billion, including real estate projects spread across both the UAE and Saudi markets.

The news comes as Shuaa Capital today reported that total revenues increased by 4 percent to AED33.2 million in the first quarter of 2018 but profits retreated to the AED11.7 million mark, less than half of the AED24.8 million seen a year earlier.

The company said this was primarily as a result of lower interest income from its lending arm, as a result of aggressive de-leveraging in bank debt in Shuaa’s lending subsidiary Gulf Finance Corporation.

Its real estate arm responsible for Badawi made AED8.9 million in revenues in Q1, an increase of 56 percent, with the division’s profits up 204 percent to reach AED4.1 million.

The unit said it is in the process of completing construction of a third project in Saudi Arabia in the city of Dammam while construction works on a new mixed-use residential compound in Riyadh known as Wadi Al Hada has also started.

Fawad Tariq-Khan, chief executive of Shuaa Capital, said: “The last 12 months has seen aggressive de-leveraging of our business with AED159 million bank term debt repaid from internally generated cash flows.

"Our core operations are welding well under the long-term strategy set last year and we are seeing positive results by expanding our portfolio of service offerings including our recent launch in Egypt for securities brokerage where Shuaa is now a top 15 broker.”

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