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Wed 12 Feb 2020 04:53 PM

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Foreign investors, first time buyers boost Emaar's $1.7bn net profit

Emaar chairman Mohamed Alabbar says 2019 performance was 'resilient', maintaining growth within a challenging market

Foreign investors, first time buyers boost Emaar's $1.7bn net profit

Emaar recorded revenue of AED24.6 billion and property sales in Dubai of AED14.9 billion in 2019.

Emaar Properties on Wednesday reported net profit of AED6.2 billion ($1.7 billion) for 2019, up marginally from AED6.1 billion on the previous year.

The Dubai-based developer also recorded revenue of AED24.6 billion and property sales in Dubai of AED14.9 billion.

The company cited continued interest from foreign investors in both residential and commercial developments as well as new, first time home buyers entering the UAE property market as driving forces behind the performance.

Mohamed Alabbar, chairman of Emaar Properties, said: “Emaar’s performance in 2019 was resilient, maintaining growth within a challenging market. Emaar’s sales achievements in 2019 are a testament to the products and people behind these innovations. Each year we set the bar higher, raising expectations across the business to ensure Emaar maintains the level of excellence the brand is synonymous with.

"Optimizing resources, improving efficiency and maximizing our productivity has directly contributed to enhancing our performance and positively impacted our results."

He added: “Our main focus is to bring the best talent to achieve our goals consistently. Our resources are focused on enhancing our customer happiness while providing superior results to our shareholders. We are also implementing new digital initiatives which will significantly enhance the value of our properties and assets to our customers whilst enabling us to innovate through new products and services.”

Emaar said it has handed over more than 63,000 residential units in Dubai and other international markets while over 30,000 residences are under development in the UAE and over 14,000 units in global markets.

Emaar now has a total sales backlog of AED45.8 billion of which AED33.7 billion is in UAE, a statement said.

In 2019, Emaar Development recorded a net profit of AED2.7 billion and revenue of AED12.7 billion and launched 22 new projects across various master plans in Dubai, selling 70 percent of its units launched.

Emaar Malls recorded 5 percent increase in revenue to AED4.7 billion in 2019, while net profit amounted to AED2.3 billion as occupancy levels within The Dubai Mall, Dubai Marina Mall, Gold & Diamond Park, Souq Al Bahar and the Community Retail Centres remained strong at 92 percent.

Hotels under Emaar Hospitality Group in Dubai reported an average occupancy of 80 percent last year, higher than the industry average.

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