Dubai property giant Emaar reports 20% bump in profits

A logo of Dubai's Emaar Properties is seen on a building in Dubai, United Arab Emirates January 12, 2018. (Reuters)
Updated 10 November 2019

Dubai property giant Emaar reports 20% bump in profits

  • Emaar reported that over the first nine months of the year net profits rose just 2.3 percent to $1.2 billion

DUBAI: Dubai construction and hospitality giant Emaar Properties on Sunday reported a rise in interim profit results, posting higher sales despite an economic downturn that has depressed the property industry.
The company, which owns the world’s tallest tower, Burj Khalifa, said it posted $362 million in net profit in the third quarter, up 20 percent from $302.4 million in the same period last year.
Dubai is defined by its beachfront skyscrapers and man-made islands, but it is stuck in a five-year property downturn with analysts saying there will be no relief in the near term.
The government in 2018 introduced a raft of rescue measures including easy visa terms for expatriate buyers and permanent residency permits for big investors. And in September, a top-level committee was established to rebalance the market.
Emaar, the largest property firm in the Middle East, reported that over the first nine months of the year net profits rose just 2.3 percent to $1.2 billion, from $1.18 billion in the corresponding period of 2018.
Sales in the first three quarters of 2019 hit $3.44 billion, a surge of 25 percent on the same period last year.
The growth was attributed to the “resilient performance of the property, malls and hospitality business,” the company said in a statement posted on the Dubai Financial Market website.
Since 2002, Emaar has delivered some 59,000 residential units in Dubai and other global markets.
Besides real estate, Emaar has a number of malls, including Dubai Mall, the world’s most visited shopping center, and several hotels.


NMC Health removes CEO amid investigation of UAE firm’s finances

Updated 27 February 2020

NMC Health removes CEO amid investigation of UAE firm’s finances

  • Chief Executive Prasanth Manghat was dismissed with immediate effect
  • Chief Operating Officer Michael Davis was appointed as interim CEO

NMC Health has removed Chief Executive Prasanth Manghat with immediate effect and granted its finance chief extended sick leave, as more details emerge from an investigation into the UAE health care firm’s finances.
Abu-Dhabi based NMC said after Wednesday’s market close that it had appointed Chief Operating Officer Michael Davis as interim CEO to succeed Manghat and said Chief Financial Officer Prashanth Shenoy had been placed on longer leave.
Manghat had been with NMC for about 10 years in various roles, including deputy CEO and CFO, and had seen the company through its 2012 listing on the London Stock Exchange.
The moves are the latest blow for the firm whose shares have lost about two thirds of their value since US-based short-seller Muddy Waters late last year questioned its financial statements.
NMC had said at the time that the report was “false and misleading,” but had opened its own investigation into company finances. The review is being led by Louis Freeh, who was director of the Federal Bureau of Investigation in the United States from 1993 to mid-2001.
NMC on Wednesday said the investigation committee had identified supply chain financing arrangements that were entered into by the company and “which are understood to have been used” by entities controlled by founder BR Shetty and former vice-chair Khaleefa Butti Omair Yousif Ahmed Al Muhairi.
Reuters was unable to reach Manghat, Shetty and Muhairi for comment outside business hours on NMC’s latest statement.
The company, which operates clinics and hospitals, specialized maternity and fertility clinics, and long-term care homes in 19 countries, said the committee was reviewing a drawdown of its facilities that had not been disclosed or approved by the board.
Its shares closed 6.6% higher before Wednesday’s statement.
NMC also said it had suspended a member of its treasury team over possible discrepancies in its bank statements and ledger entries, and said it would be unable to publish its annual results till at least the end of April.
Indian billionaire Shetty resigned as NMC’s co-chairman this month, after British regulators said they were looking into NMC following a disclosure that he had misstated the size of his stake.
Shetty had said this month that his NMC shareholdings were under a legal review looking into a large portion of his shares signed to two of NMC’s top investors in 2017, while some of his other stock had been pledged as security against loans.