Emaar's profit drops 69 per cent

26 July 2011

Poor performance from UAE developer in second quarter

Dubai-based property developer Emaar Properties has announced a net profit of AD250m ($68.1m) for the second quarter of this year, a 69 per cent decrease from last year’s profit of AD801.9 in the second quarter. Revenue fell by 23 per cent to AD2bn.

Half-year net profit fell by 49 per cent to AD843m. Revenues reached AD4bn for the same period.

While the company managed to hand over 612 units in the second quarter of 2010, it only managed to hand over some 244 units the same period this year.

The developer is pursuing with the King Abdullah Economic City in Saudi Arabia, the largest economic city in the region. Saudi Arabia’s Finance Ministry signed a loan agreement with Emaar for $1.33bn to complete the second phase of the project.

It was also awarded a contract in Egypt worth $36.8m to build 170 villas to the UAE’s Arabtec on the northern coast of the country.

Emaar Properties has written off its AD172m investment in Dubai Bank, after the government decided to take over the lender in May.

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