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Tue 11 Aug 2020 05:03 PM

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Emaar Malls reveals 69% drop in profits for H1 2020

Revenue for ecommerce outfit Namshi increased by 57% to $181m over the first six months

Emaar Malls reveals 69% drop in profits for H1 2020

Emaar Malls offered a flexible rent relief policy for tenants during lockdown.

Dubai-based Emaar Malls, the retail unit majority-owned by Emaar Properties, has reported a net profit of $94 million for the first six months of the year – down 69 percent on the same period last year ($308m), as the company battled against the economic impacts of the global Covid-19 pandemic.

Revenue also slipped 30 percent to $451m for first half of 2020 compared to $606m in the corresponding period last year.

Emaar’s Mohamed Alabbar said: “I firmly believe that Emaar Malls’ results showed strength and resilience in the face of the challenges presented to us by the pandemic. Our continuous innovation, diversification of our portfolio and investment in digital to bring our destinations to life in new channels added further strength to our results.”

Brick-and-mortar shopping malls suffered particularly as they closed down for almost three months as part of the government’s restrictions to contain the spread of coronavirus – last month, Alabbar revealed that the company’s flagship Dubai Mall was welcoming around 100,000 visitors daily - the pre-Covid number was in the region of a-quarter-of-a-million daily visitors.

However, occupancy rates across all Emaar Malls’ assets, including The Dubai Mall, as well as Dubai Marina Mall, Gold & Diamond Park, Souk Al Bahar and the community retail centres – is currently sitting at 92 percent.

E-commerce growth

E-commerce platforms also gained in popularity over the period of movement restrictions during the current coronavirus crisis.

Namshi, the regional e-commerce fashion and lifestyle platform which was taken over by Emaar Malls in 2019, recorded half yearly revenue of $181m, 57 percent higher than the same period last year. The success was also attributed to growth in the Saudi market.

The company has also offered a flexible rent relief policy for tenants, which ran during lockdown (March 25 – April 27) and post-lockdown (April 28 – August 31).

In terms of the future, a statement from the company revealed that Emaar Malls is continuing to redevelop the Meadows Village community retail centre to increase its GLA by around 95,000 sq. ft., which is scheduled to complete in 2020.

While Emaar’s partnership with the Time Out Group will see the opening of the Time Out Market in Souk Al Bahar by Q1 2021, where approximately 670 people can enjoy food from 16 of Dubai’s top chefs.

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