Nakheel records 14% profit rise for 2017

LONDON: Dubai developer Nakheel announced a net profit of 5.67 billion dirhams ($1.54 billion) for 2017 on Wednesday, up 14 percent on 2016.
The results showed a net profit of 1.67 billion dirhams in the final quarter of 2017, marking a 58 percent increase on the same period in 2016.
The government-owned company, which is behind some of Dubai’s major landmarks, including the Palm Islands, said the results reflect 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 and continued to support the local economy by awarding construction contracts worth almost 8 billion dirhams in 2017.” The findings come ahead of what analysts predict will be a year of change in 2018 following the introduction of VAT in the UAE.
Business advisory firm Deloitte released a report on Wednesday outlining new challenges confronting the market.
“The theme for Dubai’s real-estate market in 2018 is change. Developers, operators and investors will need to navigate their way through increasing geopolitical uncertainty, the adoption of disruptive technologies and the introduction of VAT. How well they do so will determine their performance in 2018 and beyond,” said Martin Cooper, head of development strategy and investment in Deloitte’s real estate and construction team.
One of the largest players in the residential leasing sector, Nakheel is diversifying its portfolio and expanding its hospitality business by bringing in new hotel concepts and international partners.
It is also ramping up its footprint in the shopping sector with 4.6 million square feet of retail space in operation and plans to increase its revenue-generating assets in the sector.
Last year Nakheel announced a series of new projects, including Deira Mall at Deira Islands and The Palm Gateway at Palm Jumeirah.
“Nakheel has an impressive portfolio of projects under development which will further reinforce our position as an established, world-leading developer,” Lootah said.
In the first months of 2018, the company awarded the construction contract for a new hotel in its first joint hospitality venture — the 800-room RIU resort at Deira Islands — in addition to signing an agreement with AccorHotels to manage a new hotel at Jumeirah Village and starting work on a community club at its new Warsan Village Community in Dubai.
Nakheel, which built Dubai’s Palm Jumeirah island, said it awarded construction contracts worth almost $2.8 billion last year. (Nakheel)