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Emaar Properties said on Wednesday its net profit for 2015 rose 11 per cent driven by revenues even as the company expects to build on growth in 2016.
Net profit for 2015 rose to Dh4.08 billion from Dh3.66 billion, and revenues rose to Dh13.66 billion from Dh10.3 billion. For the fourth quarter, net profit was almost flat at Dh1.03 billion.
Mohammad Al Abbar, Chairman of Emaar Properties, said in a statement that the positive growth is underpinned by Emaar’s strategy of creating long-term value for its stakeholders by developing premium real estate assets and strengthening its shopping malls & hospitality businesses which provide a recurring revenue stream that supports the company’s sustainable growth plan.
“Our businesses benefited from the positive performance of Dubai’s economy with the core sectors of retail, hospitality, tourism and aviation setting impressive milestones in 2015,” Al Abbar said.
The shopping malls and retail and hospitality & leisure businesses recorded recurring revenues of Dh5.788 billion, accounting for 42 per cent of the total revenue. This is 8 per cent higher than the FY2014 revenue from the two businesses at Dh5.367 billion.
Revenue from international operations of Emaar, which has an impressive footprint across the Middle East, North Africa, South Asia and USA, increased by 46 per cent to Dh2.620 billion compared to Dh1.791 billion. Emaar’s international operations now account for 19 per cent of the total revenue.
Strong property sales
During 2015, demand for residential property in Dubai has been strong with total sales at Dh10.23 billion. Sales across various international markets during the same period were valued at Dh5.05 billion.
To date, Emaar has handed over more than 40,000 residential units in Dubai and other international markets. Of these, to date, over 33,600 units were handed over in Dubai.
“Through resource use optimisation and by focusing on maximising efficiency across all our operations, we will continue to build on our growth during 2016,” chairman Al Abbar said.
The expansion of the company’s flagship Downtown Dubai, which will see the opening of Dubai Opera this year, and our joint venture mega-developments such as Dubai Creek Harbour and Dubai Hills Estate, will further contribute to the smart and sustainable urban infrastructure of the city.”
“Our diversified development approach and the emphasis we place on world-class project management enable us to address market challenges efficiently. Through resource use optimisation and by focusing on maximising efficiency across all our operations, we will continue to build on our growth during 2016,” Al Abbar added.
Source: Staff Report, gulfnews.com