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Wed 14 Nov 2018 03:47 PM

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Dubai's Nakheel posts nine-month net profit of $1bn

Developer Nakheel says non-residential revenue now accounts for 40% of its total and continues to grow

Dubai's Nakheel posts nine-month net profit of $1bn
Nakheel is the builder of the world famous Palm Jumeirah in Dubai.

Nakheel on Wednesday announced a net profit of AED3.86 billion ($1.05 billion) for the first nine months of 2018, down from AED4 billion in the same period last year.

Year-to-date property handovers totalled 588 units, the company said in a statement, adding that while residential development remains its core business, the focus on expanding its hospitality, retail and leasing divisions continues.

Annual revenue from these sectors is now AED2.6 billion – almost 40 percent of the total – and continues to grow as new projects are delivered, the developer said.

Last month, Nakheel announced two new residential projects – Dragon Towers and Jumeirah Park Homes – for sale, adding a significant number of units to its development pipeline, which will be reflected in future profit figures as the projects are delivered.

The AED713 million Dragon Towers broke ground last month and is due for completion in 2021, while construction of 147 four-bedroom homes with private pools at the high-end Jumeirah Park community is due to begin in early 2019.

So far this year, Nakheel said it has announced contracts worth AED7 billion for a range of infrastructure, residential, retail and hospitality projects, including Deira Mall, Nad Al Sheba Mall, the main bridge connecting Deira Islands and mainland Dubai, the RIU and Centara joint venture resorts at Deira Islands, PALM360, and the newly launched Dragon Towers.

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