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Wed 27 Nov 2013 01:35 PM

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Dubai developer eyes tripling of profit in 2013

Union Properties chief also says company may pay its first dividence in five years next year

Dubai developer eyes tripling of profit in 2013
Union Properties chairman Khalid bin Kalban.

Dubai's Union Properties is on track to triple its full-year profit this year and may pay its first dividend in five years in 2014, it was reported on Wednesday.

Chairman Khalid bin Kalban said in an interview with Bloomberg that fourth-quarter profit is expected to reach AED300m ($81m), the most since the second quarter of 2008.

He told the newswire that the developer may also report full-year profit of more than AED600m, more than triple last year’s total.

Union Properties returned to profit last year after posting net losses totalling AED3.6bn in the three years through 2011 after Dubai’s property market crashed in 2008.

In September, Kalban said the company was planning to launch six new projects worth AED1.5bn.

He said in a statement that the company will start with the implementation of three projects in the next few months.

These will include phases one and two to expand the Green Community in Motor City, in addition to The Ribbon, a retail development.

The Ribbon will contain a wide variety of shops of international brands and a string of restaurants and recreational facilities, he added.

Union Properties also said it is to seek board approval to increase the percentage of shares which foreign investors are allowed to hold in the company.

The move is part of a wider trend by companies in the United Arab Emirates and Qatar to review their often-low foreign ownership caps ahead of their admittance into the MSCI Emerging Markets Index in May.

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