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Wed 6 Mar 2019 02:02 PM

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Dubai's Nakheel sees 2018 net profit fall to $1.19bn

Construction giant says it handed over 657 homes in 2018, while it added 5 million sq ft of retail space

Dubai's Nakheel sees 2018 net profit fall to $1.19bn
Nakheel is developing two resorts at Deira Islands in Dubai.

Nakheel on Wednesday announced a net profit of AED4.38 billion ($1.19 billion) for 2018, down from AED5.67 billion in 2017.

The Dubai-based company said its total equity has more than doubled in the last seven years, standing at AED49 billion in December 2018, compared to AED24 billion at the end of 2011.

Under its core business, residential development, Nakheel handed over 657 land and built form units in 2018, taking the total number of handovers since 2010 to 13,357.

Nakheel chairman, Ali Rashid Lootah, said: “Our focus is on sustainable, long term growth by continuing to expand within the retail, hospitality and leasing sectors in line with our own goals and Dubai’s vision.”

Nakheel said it continues to focus on growing its retail, hospitality and leasing businesses, which all performed strongly in 2018, generating revenues of AED2.5 billion from an increasing portfolio of projects.

Nakheel added that it is targeting a substantial increase in annual recurring revenue in the next five years as part of its sustainable growth strategy, with a range of new projects coming on line in the next 18 months to two years.

Among them will be the Nakheel Mall and The Palm Tower on Palm Jumeirah, The Night Market at Deira Islands, a Premier Inn hotel and showroom complex at Dragon City, an Avani Hotel at Ibn Battuta Mall, Warsan Souk at Warsan Village, the 1,500-villa Nad Al Sheba community and two resorts at Deira Islands.

Nakheel’s current and future non-development portfolio includes 19 retail developments with 17 million sq ft of leasable space, 18 hotels, resorts and serviced apartment complexes with 6,600 keys between them, and 24 clubs and restaurants across Dubai.

The company’s operational retail space grew to more than five million sq ft in 2018 while another three million sq ft of retail space is expected to come on line this year.

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