Nakheel's net profit surges 14pc to $1.5bn

01/02/2018 05:26 AST

Leading UAE developer Nakheel has generated a net profit of Dh5.67 billion ($1.54 billion) in 2017, up 14 per cent over the same period the year before, on the back of its successful retail, hospitality and leasing businesses.

Announcing the results for 2017, Nakheel said it had registered a net profit of Dh1.67 billion in the fourth quarter, an increase of 58 per cent on the same period in 2016.

These results highlight the stability and maturity of Dubai's real estate sector and reflect the robust business and economic approach adopted under the leadership of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, stated the Dubai developer.

Nakheel had handed over 1,439 land and built form units in 2017, taking the total number of its deliveries since 2010 to 12,700, while the retail, hospitality and leasing businesses all continued to perform well, it added.

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 Dh8 billion in 2017."

The 2017 results reflect Nakheel's progress over the past few years in diversifying its business in creating revenue-generating assets, he added.

At the end of the year, the top Dubai developer had 4.6 million sq ft of retail space in operation that led to increased annual revenue from the retail business - a key focus for Nakheel - which is expected to generate significant incremental revenue in subsequent years.

Its hospitality business too registered an impressive increase in revenue over 2016, reflecting the robust performance of the two properties that were fully operational in 2017, said the company statement.

With tourism in Dubai continuing to grow, Nakheel is further expanding its footprint in this sector, bringing new hotel concepts and new international partners to provide a diverse range of offerings for tourists and residents in Dubai, the UAE and Middle East, it added.

Trade Arabia