By Gavin Gibbon
Financial results reveal revenues fell six percent in 2019 compared to previous year
Dubai-based developer Deyaar has announced an AED71.5 million ($19.5m) net profit for 2019.
Listed on the Dubai Financial Market and majority-owned by Dubai Islamic Bank (DIB), the company reported revenues of AED603.7m ($164m) for 2019, a drop from AED643.7m ($175m) in the previous year.
The company also revealed accumulated losses, largely incurred as a result of the 2008-2010 financial crisis, which at that time had reached around AED2.869 billion, had fallen to AED1.530bn by the end of December 2019.
At its first meeting earlier this month, the company’s board of directors discussed capital restructuring and recommended a reduction of the capital to offset the accumulated losses.
Saeed Al Qatami, CEO of Deyaar, remained upbeat about the future. He said: “2019 saw several strong achievements in our portfolio – not least of which is the completion and handover of Afnan, the first district in our Midtown master development, with handover of Dania district currently in progress.
“We also began the operation of our three hospitality projects with a total of 1,000 keys. In 2020, we are planning to move forward with the development of Midtown project and launch new districts with the handover of Bella Rose project by the end of the year.”
Deyaar’s first master development, Midtown comprises six districts, composed of 26 buildings across a built-up area of almost five million square feet. Afnan and Dania districts are now completed, with new districts to be announced in 2020.