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Thu 10 Apr 2014 11:14 AM

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Nakheel's profit jump may boost Dubai

News may support expectations of significant increases in the quarterly profit of listed firms like Emaar, Deyaar and Union Properties

Nakheel's profit jump may boost Dubai
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A jump in quarterly profit reported by Dubai developer Nakheel on Wednesday may boost local stocks on Thursday, even though the company itself is unlisted.

The government-owned property company made a net profit of AED629m ($171m) in the first three months of the year, up 28 percent from the same period of 2013.

The news may support expectations of significant increases in the quarterly profit of listed property companies such as Emaar Properties, Deyaar and Union Properties. It is also a positive signal for local banks that have exposure to Nakheel, which was hit hard by the 2009 crisis.

Nakheel's chairman Ali Rashid Lootah said on Wednesday that the developer was on course to further reduce its bank borrowings in 2014, after it paid off AED2.35bn of bank debt in February, 18 months ahead of maturity.

Dubai's index climbed 0.9 percent to a multi-year high of 4,786 points on Wednesday. Contractor Arabtec Holding, which is expected to profit from a resurgent construction sector, was the main gainer, adding 3.9 percent.

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Umar Saeed 5 years ago

Yes it will surely boost Dubai as real estate companies and developers of Dubai have played a major role in the market recovery of the city after the downfall of Dubai. Dubai is going to flourish again and its real estate sector will promise that. Thanks