Nakheel profits dip in first half of 2017

26 July 2017

Profits are down about 10 per cent when compared to the same period last year

Local developer Nakheel says it made a net profit of AED2.64bn ($719m) for the first six months of 2017. The profit for the same period in 2016 was AED2.95bn.

The company says it is confident of achieving its forecast 2017 result, which will reflect an overall growth in profits for the year. Nakheel’s full year profits for 2016 were a record AED4.96bn.

During the first half of this year Nakheel handed over almost 870 land form and built form units.

The company is also developing recurring revenues from non-development businesses including retail, leasing, hospitality and asset management services. Annual revenues from these segments have more than trebled from AED800m in 2010 to AED2.5bn in 2017. The rise has also resulted in a significant increase in the asset values of the company.

More revenue generating assets are being developed, and Nakheel has signed construction contracts worth more than AED11bn during the first half of this year.

The largest is a AED4.2bn contract for the construction of Deira Mall on the Deira Islands development. Another major award was a AED1.5bn contract for The Palm Gateway on the mainland next to the Palm Jumeirah.

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