LONDON: Dubai developer Damac Properties recorded a 25 percent drop in profit last year amid a regional real estate slump.
The real-estate company behind the Trump International Golf Club in Dubai suffered from the rising cost of sales and a decline in margin for international projects following a tricky period for the sector.
In a statement published on the Dubai Financial Market website, the company said full-year net profit fell from 3.69 billion dirhams ($1 billion) in 2016 to 2.76 billion dirhams last year. However revenues rose by 4 percent during the same period, from7.16 billion dirhams to 7.45 billion dirhams.
The report follows a turbulent year for the Dubai property market, with a drop in demand dampening prices amid increased supply as a series of new developments came onto the market.
But the developer remains upbeat, reporting a rise in booked sales, which stood at 7.5 billion dirhams at the end of December compared to 7 billion dirhams in the previous year.
“Dubai’s property market continues to show growth as increasing demand returns to the market, and this is reflected in our booked sales. Our medium to long-term outlook remains positive, with continued local demand as well and stronger interest by international investors,” said Hussain Sajwani, chairman of Damac Properties.
He added that the emirate’s property sector was “feeling the positive effects of the emirate’s appeal and growing sophistication on the world stage. This is evident from the growing real estate sales transactions at Dubai Land Department and we are confident of the growth prospects for the sector going forward.”
So far this year, Damac has delivered 2,304 units, taking its total to 20,236 units to date. Recent completions include new units in Damac Hills, a luxury residential community in Dubai built around the Trump International Golf Club.
Construction is underway on more than 6,500 units at AKOYA Oxygen, a tree-filled community living space designed to promote living in harmony with nature. The development includes The Rainforest at AKOYA Oxygen.
The company also delivered units at new developments abroad, including its two-tower project in Saudi Arabia Damac Esclusiva and The Heights in Jordan.
Damac continued to expand its interests locally and overseas in 2017, activating 226 new brokers and conducting 524 roadshows across 42 countries.
“Our major projects in Dubai including DAMAC Hills, AKOYA Oxygen and AYKON City continue to appeal to expats and international investors alike, while our diverse product portfolio continues to attract a wide variety of buyers for our off-plan and ready properties,” Sajwani said.
Damac profits take a tumble in 2017 as cost of sales rises
Damac profits take a tumble in 2017 as cost of sales rises
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
