Dubai-based developer Nakheel made a net profit of AED3.61bn ($984m) for the first nine months of 2015.

The figure is an increase of AED1bn, or 39 per cent, on the AED2.6bn profit made during the same period last year. It is also almost equal to Nakheel’s AED3.68bn of profit for all of 2014.

Nakheel says the increase is mainly due to continued strong performance by the development business, with ongoing handovers of properties to customers. The company’s growing retail, leasing and leisure businesses also contributed to the results.

Nakheel is building a range of new projects that will bolster its portfolio of cash-generating assets. “Nakheel continues to play a key role in the Dubai economy by stepping up construction on a number of projects. We have announced more than AED3.1bn-worth of construction contracts in the last three weeks alone, highlighting our commitment to contributing positively and effectively to Dubai’s real estate sector,” says Ali Rashid Lootah, chairman, Nakheel. “Our strategy of continuing to create more cash-generating assets will further boost our business and financial results in the coming years. As ever, we thank the Government of Dubai for its ongoing support and our investors for their increasing trust and confidence in Nakheel.”

Nakheel has awarded three construction contracts totalling AED2.3bn ($627m) for the construction of retail centres in Dubai in October. The centres are due to be completed in 2018.

The largest deal, valued at AED1.17bn, was awarded to the local United Engineering Construction (UNEC) for the construction of the Deira Islands Night Souq and Boardwalk.

Once completed, the souq will stretch almost 2 kilometres along Deira Islands’ waterfront, and feature 5,300 shops and nearly 100 quayside cafes and restaurants.

The second-largest contract was awarded to the local Ginco General Contracting for the construction of the Warsan Souq.

The AED775m deal involves the construction of a new retail complex between Sheikh Mohammed bin Zayed Road and Manama Road, next to International City. Once completed, it will have 1,170 shops including two department stores, and 30 cafes and restaurants with indoor and outdoor dining.

The final contract, valued at AED353.75m, was awarded to Gulf Technical Construction Company for The Circle Mall at Jumeirah Village Circle. Located between Sheikh Mohammed bin Zayed road, Al-Khail Road and Hessa Street, the mall will have 235 shops, a multi-screen cinema and a health clinic, as well as cafes, restaurants and a food court. 

Also in October, Nakheel awarded a AED819m contract for the construction of The Palm Tower to a local joint venture of Trojan General Contracting and National Projects & Construction (NPC).

The 52-storey, five-star hotel and residential complex will be built on the Palm Jumeirah

The 240-metre tower will have 504 apartments, a 290-room, five-star hotel, and dining and leisure facilities such as a rooftop infinity pool, a restaurant and viewing deck.

The Palm Tower will be connected to Nakheel Mall. In 2014, Nakheel signed a AED1.2bn deal to build the Nakheel Mall on the Palm Jumeirah with UNEC and the local Actco General Contracting Company.

The 418,000-square-metre mall will have five retail levels with more than 100,000 sq m of retail space, three basement parking levels with 4,000 spaces, 300 shops, two anchor department stores, a nine-screen cinema, medical centre and fitness complex. There will also be a roof plaza with food and beverage outlets. The project is expected to be completed in 2016.

The Palm Tower will also offer direct access – via a bridge and walkways – to Palm Jumeirah’s beach clubs, including Nakheel’s Club Vista Mare and Palm Promenade West Beach projects.

The Palm Tower is one of 10 hotels being constructed by Nakheel as part of its expansion into the hospitality sector.  Others are located at Deira Islands, Ibn Battuta Mall and Dragon City.