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Sat 20 Aug 2016 10:15 AM

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UAE developer Manazel sees 30% H1 net profit slump

Company posts small rise in revenues, boosted by the launch of its Al Reef 2 project

UAE developer Manazel sees 30% H1 net profit slump

UAE-based developer Manazel Real Estate has posted a 30 percent drop in net profit in the first six months of 2016 compared to the year-earlier period.

Manazel said in a statement that it delivered steady revenues underpinned by the restructuring of the company.

It said revenues for the period were AED267.4 million, compared to AED262.8 million for H1 2015 with the launch of Al Reef 2 contributing to the increase in total sales during the first half of this year.

The company added that net profit for the period ended June 30 was AED31 million, down from AED44.9 million in H1 2015.

Manazel's chairman Mohamed M Al Qubaisi said: "Over the year, Manazel Real Estate has made significant progress both in terms of restructuring its business and focusing on the significant growth opportunities that exist in new and dynamic market sectors, which capitalise on our expertise within the residential and commercial real estate sectors."

Manazel said it has achieved significant success with the sales and construction of Al Reef 2, located in the Al Samha area in Abu Dhabi which is scheduled to be delivered from the end of 2017.

The company said it has managed to sell 90 percent of its Al Reef 2 project.

Yaqoob Al Doseri, CEO of Manazel, added: "Manazel has demonstrated a notable performance during the first half of the year, which demonstrates the core strength of our business. Additionally we have commenced a cost management, profit optimization and human capital investment program which coincides new project launches, which we are targeting for H2 2016.  We expect both these initiatives to have a positive impact on our results in the years ahead."

In April, UAE-based developer Manazel Real Estate launched a mixed-used development, Manazel Amman, located close to Queen Alia International Airport.

Manazel Amman is the company's first development outside of the UAE, and is part of its strategy to provide quality homes for the middle-income segment within a gated community.

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