Damac rules out projects outside of Dubai

08 September 2016

Developer says other markets are not of interest at the moment

Dubai developer Damac Properties is not looking at projects outside of Dubai, according to the company’s managing director Ziad el-Chaar.

Speaking on the sidelines of this year’s Cityscape Global 2016 exhibition in Dubai, El-Chaar told MEED that Damac is “absolutely focused on Dubai and other markets are not of interest at the moment. Although the GCC would be our preferred area outside of Dubai, right now we are fully focused on just Dubai”.

Earlier this year, Damac launched a mixed-use development in London called Aykon London One. “This project is a one-off for Damac and not an illustration of the company’s plans. This project was developed for our customers who wanted a Damac product in London,” said El-Chaar.

El-Chaar added that the company is not interested in Egypt or Saudi Arabia as it continues to focus on its Aykon City and Akoya by Damac masterplanned communities in Dubai.

In August, the developer reported a 37.4 per cent decline in its second-quarter profits.

Damac reported a net profit of AED886.8m ($241.4m) for the three months to 30 June, according to a statement posted on the Dubai Financial Market (DFM), where the company’s shares are traded.

This is down from AED1.4bn for the same period in 2015.

For the first half of the year, Damac’s net profit was AED1.94bn, down 27 per cent from the same period last year.

The firm also recently announced it awarded 25 construction contracts valued at a combined AED3bn in the first six months of 2016.

The contracts include the main packages for more than 2,678 villas at the Akoya Oxygen master-development, as well as the main package for the Golf apartment buildings at Carson – The Drive at Akoya, according to a statement.

In February this year, Damac launched a six-tower project called Aykon City on Sheikh Zayed Road, overlooking the under-construction Dubai Canal.

The 371,612-square-metre project, located on the eastern and western sides of Dubai’s main artery, is being developed in collaboration with the local Meraas.

Aykon City will comprise the 80-storey Aykon Hotel and Residences, the 63-storey Damac Maison Serviced Hotel Residences, a 60-storey apartment tower, a 65-storey office tower, and two 30-floor luxury residential towers.

El-Chaar also told MEED the local National Piling Company is working on the enabling works of the project, with the main construction tender expected within six months.

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