Dubai-based property developer Nakheel made a net profit of AED5.67bn ($1.54bn) in 2017, up 14 per cent on 2016.

It generated a net profit of AED1.67bn in the fourth quarter of the year, an increase of 58 per cent on the same period in 2016.

The company says the results highlight the stability and maturity of Dubai’s real estate sector. Nakheel chairman Ali Rashid Lootah said: “2017 was another good year for Nakheel. The company met its business and financial targets for the year and continued to support the local economy by awarding construction contracts worth almost AED8bn in 2017.”

Revenues were driven by the handover of more than 1,439 land and built-form units in 2017. The total number of handovers since 2010 is 12,700.

Nakheel continues to work on its strategy of diversifying its business and building revenue-generating assets, such as residential properties that are leased, retail centres and hotels.

At the end of 2017, it says it had 4.6 million square feet of retail space in operation that led to increased annual revenue from the retail business.  The hospitality business also registered increased revenues in 2017 thanks to two hotel properties that were fully operational in 2017.

Nakheel is building more assets. This year, together with joint venture partner Spain’s RIU Hotels & Resorts, Nakheel awarded Saudi Binladin Group a AED385m contract for the construction of an 800-room beachfront resort and water park at Deira Islands.