Dubai's Nakheel sees revenue growing away from construction sector

Dubai master developer Nakheel announces a small decrease in net profit of $680m for the first six months of 2018
Dubai's Nakheel sees revenue growing away from construction sector
By Sam Bridge
Wed 15 Aug 2018 01:59 PM

Dubai master developer Nakheel on Wednesday announced a small decrease in net profit of AED2.51 billion ($680 million) for the first six months of 2018.

The profit for the same period in 2017 was AED2.61 billion, the company said in a statement, adding that its non-development businesses – retail, leasing, hospitality and asset management – all performed strongly.

Annual revenues from these sectors is now AED2.6 billion – three times as much as in 2010 – and currently accounts for 38 percent of the company’s total revenue.

It said revenue from these sectors will continue to grow with the completion of retail and hospitality projects such as The Pointe, due to open this year, and The Night Market, Warsan Souk, The Palm Tower and Nakheel Mall, which are due to come on line in 2019.

Nakheel said in a statement that it handed over 451 units to customers in the first six months of the year.

Nakheel added that it signed construction contracts worth more than AED6 billion between January and June this year including one for AED4.2 billion for Deira Mall and a AED385 million deal for the 800-room RIU resort at Deira Islands.

In H1, the company also signed a joint venture with Al Nasr Sports & Cultural Club for an AED300 million retail centre, announced a planned partnership with Austria’s Vienna House hotels for a new resort at Deira Islands and revealed its first project outside of Dubai – an AED75 million retail centre in partnership with the Sharjah Investment and Development Authority.

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