Dubai's Emaar Properties Profits Up 122% Year-over-year

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(DUBAI, UAE) -- Everyone watching for the return of Dubai to the financial big leagues where it played until mid 2008 looks at the crown jewels, Emaar, Dubai World especially Nakheel, and Emirates Airlines. Emirates is already setting records for passengers, cargo, and aircraft purchases this year. Nakheel seems well on the way to restructuring its monster debt, and yesterday Emaar announced significant growth in the first six months of 2010, good signs for what has been called Dubai Inc.

Emaar Properties PJSC recorded a half-year 2010 net operating profit of $451 million on revenue of $1.5 billion, an increase of 122 percent over H1 in 2009 when revenue reached $948 million. These results follow a change in Emaar's strategy to focus on master developments in key geographic markets.

Mohamed Alabbar, Chairman, Emaar Properties, said, "Our emphasis now is on strengthening our core competency of developing premium real estate projects, and building on our assets in promising emerging markets. This concerted approach has resulted in further strengthening our financial fundamentals, despite the challenges of the global financial climate."

The highlight of Q2 was the opening of the world's first Armani Hotel in Burj Khalifa, the world's tallest building. Handover of units in Burj Khalifa also started with approximately 24 percent handed over by the end of June.

To concentrate on its core business, Emaar transferred the Hamptons International business in the UK, Europe, and Asia to Countrywide but retained Hamptons agency business in the Middle East and North Africa to support key markets.

Alabbar pointed out that Emaar's revenue model has diversified due to an increasing share from rental and hospitality operations over the past year, a trend reflected in H1 results. "This is in line with our growth strategy, outlined in 2007, to further expand our revenue streams through strategic investments in key international markets as well as new business streams including shopping malls and retail and hospitality," he explained.

From 2009 revenue of $2.3 billion, almost 26 percent was from leasing and hospitality operations and 8 percent from international operations, compared to 90 percent of revenue coming from Dubai property development in 2008.

Outside the UAE, Emaar has handed over homes in its master-planned communities in Turkey and Pakistan and is currently on schedule with the completion and handover of landmark projects in India, Saudi Arabia, Jordan, Egypt, and Syria over next 12 months.

 

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