The Abu Dhabi government is set to bail out local developer Aldar Properties after it reported a loss of AED1.5bn ($408.4m) for the first nine months of 2010.
Aldar released its financial results for the first nine months of the year on 8 November, which showed the AED1.5bn loss for the period. This is in stark contrast to the net profit of AED1.4bn recorded for the first nine months of 2009.
The results showed total revenue of AED469m for the period, compared to AED1.7bn for the same period in 2009. The developer said that it is in final discussions with the Abu Dhabi government regarding capital requirements, and expects a conclusion before the end of the year.
The developer also announced on 8 November that it is appointing Sami Asad as the new chief executive officer (CEO) of the company. Asad succeeds the current CEO, John Bullough, following his retirement from the Aldar.
Aldar still currently has AED5.9bn investment in projects currently under construction. These include the Central Market project and the Al-Falah real estate development on the outskirts of Abu Dhabi.