• Nakheel records 53 per cent increase in first half profits
  • Increase attributed to development revenue

Local developer Nakheel has reported net profits of AED2.83bn ($770m) for the first half of this year, which is a 53 per cent increase compared with AED1.85bn ($503m) from the same period last year.

The increase in profits have been attributed to handovers of completed projects as well as the company’s growing retail and leasing business, according to a statement released by Nakheel on 27 July. The company says revenues remain on track.

Nakheel is currently developing a number of projects across Dubai that it expects to continue to generate development revenue when they are complete and units are handed over.

The firm has also launched several projects in the retail, hospitality and residential leasing sectors, including a vast new community at Deira Islands and huge extensions to Dragon Mart and Ibn Battuta Mall.

When operational, these schemes will generate cash revenue for Nakheel and further strengthen the developer’s overall financial position.

Nakheel is aiming to generate revenues of AED7.5bn a year from these assets.

Earlier this month the developer received bids for the contract to build the Gateway towers project at the base of Dubai’s Palm Jumeirah. And in June Nakheel awarded Van Oord of the Netherlands a two-year AED387m ($105m) contract to deliver 23.5 kilometres of coastline and breakwaters at its Deira Islands project.