Emaar Properties' profits were strengthened by residential property sales of $1.69bn by Emaar Development
Emaar Properties’ net profit rose 18 percent to AED 3.344 billion ($910 million) in the first half of 2018, bolstered by strong growth in its development and malls businesses, it was announced on Tuesday.
According to the results, Emaar’s net profit for H1 2018 after considering the impact of the IPO of Emaar Development is AED 2.981 billion ($812 million), 5 percent more than the same time period the previous year.
The company’s revenue for the first six months of 2018 was AED 11.474 billion ($3.124 billion), 46 percent higher than H1 2017’s AED 7.866 billion ($2.142 billion).
Emaar’s profits were strengthened by residential property sales of AED 6.229 billion ($1.696 billion) by Emaar Development between January and June. According to Emaar Development, it now has a total sales backlog of AED 38.502 billion ($10.482 billion).
In Q2, Emaar’s malls, hospitality, leisure and entertainment businesses posted net profits of AED 1.679 ($457 million), a 16 percent year-on-year increase. After considering the Emaar Development IPO, net profit was AED 1.480 billion ($403 million), 2 percent higher than the AED 1.453 billion ($396 million) recorded in Q2 2017.
“The strong financial performance of the company during the half-year highlights the strength of Dubai’s economy and its appeal to international investors and tourists,” Emaar Properties chairman Mohamed Alabbar.
“While our property business recorded positive growth with several new residential destinations launched in Dubai, our malls, hospitality, leisure and entertainment business benefited from the increase in tourist arrivals and boost in domestic spending.”
In its property business, Emaar launched a number of residential projects in H1, including in Dubai Creek Harbour, Dubai Hills Estate, Downtown Dubai and Emaar South, and unveiled Emaar Beachfront, a private island destination.
Emaar Malls – which reported a 29 percent increase in H1 2018 revenue to AED 2.103 billion ($573 million) – is expanding its malls business with the launch of Dubai Square, with work progressing on Dubai Hills Mall.
According to company statistics, more than 67 million people visited Emaar malls in H1 2017, 3 percent more than in 2017.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.