Emaar Properties records 22 percent growth

Emaar Properties PJSC recorded a 15 percent growth in net profit to reach AED2.837 billion (US$772 million) during the first six months of 2017 (H1), compared to AED2.475 billion ($674 million) during the same period last year.

The H1 2017 revenue reached AED7.866 billion ($2.142 billion) an increase of 8 percent over H1 2016 revenue of AED7.257 billion ($1.976 billion).

Recurring revenue from Emaar’s shopping malls and retail, hospitality and leisure, commercial leasing and entertainment businesses in H1 2017 is AED3.016 billion ($821 million), which represents 38 percent of the total revenue.

Emaar’s revenue from its international development recorded a growth of 64 percent in H1 2017 to AED1.697 billion ($462 million), compared to the H1 2016 international revenue of AED1.032 billion ($281 million). This was underpinned by significant progress in projects achieved in key markets including Egypt, Turkey, India and Saudi Arabia, among others. Emaar’s international development now contributes 22 percent to the total Group revenue.

In the second quarter (April to June) of 2017 (Q2), Emaar recorded a net profit of AED1.453 billion ($396 million) an increase of 14 percent over Q2 2016 net profit of AED1.270 billion ($346 million).

Mohamed Alabbar, Chairman of Emaar Properties, said the positive performance builds on Emaar’s ongoing focus on project delivery and customer-centric service.

Commenting on the results, he added, "Organisation-wide, we are making a transformational change to strengthen project management and service excellence led by digital technology. At every stage of development, we place emphasis on being more efficient and responsive to the aspirations of our customers, and to create long-term value for our stakeholders.

"This complements the transition of the nation into a smart economy led by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. As a year-round tourism and retail destination, and with a focus on infrastructure development, the UAE has evolved as a global business and leisure hub, and through our projects, we are contributing to the nation in driving sustained economic growth."

Emaar’s commitment to value creation for shareholders was highlighted by the company distributing a cash dividend of 15 percent of the share capital, equivalent to AED1.074 billion ($292 million).

During the first six months of 2017, Emaar recorded property sales in Dubai of AED10.814 billion ($2.944 billion) 22 percent higher than AED8.9 billion ($2.42 billion) during the same period in 2016 underlining the significant customer interest in Emaar’s projects.

As part of its digital transformation initiatives, Emaar Malls acquired a 51 percent stake in Namshi, the leading online fashion retailer in the Middle East. This complements its focus on multi-channel retailing and creating long-term value for its stakeholders. At its second Annual General Meeting in April, Emaar Malls distributed 10 percent of the share capital, equivalent to AED1.301 billion ($354 million) as cash dividend to the shareholders.

Source: Wam