August 2019

Dubai – Mubasher: Emaar Properties, a leading global property developer based in the UAE, on Sunday revealed it has generated a net profit of AED 3.110 billion ($847 million) for the first half of 2019.

The real estate giant has also recorded a revenue of AED 11.569 billion ($3.150 billion) for H1-19, according to a press release.

The positive results were mainly driven by Emaar’s robust UAE build-to-sell property development business, as well as its healthy malls and hospitality businesses during the period.

Emaar’s total sales backlog stood at AED 49.188 billion ($13.392 billion) as of 30 June 2019, including international operations.

Moreover, the company has registered sales in Dubai of AED 9.443 billion ($2.571 billion) during the six-month period ended 30 June 3019, up 52% from AED 6.229 billion ($1.696 billion) in H1-18.

Mohamed Alabbar, chairman of Emaar Properties, commented: “The driving force of Emaar’s strong, consistent performance this year is the enhanced reputation of Dubai as the first choice among the leading global destinations for property investment.”

“Our successful expansion to malls and hospitality, which complements the tourism sector of Dubai, too generates significant revenue. As a catalyst of the economy, and with our commitment to creating value, we will continue to strengthen our three core business, especially by leveraging the power of digital connectivity and engagement,” he added.

Furthermore, the property developer noted that its hospitality and leisure, entertainment, and commercial leasing business have contributed AED 2.415 billion ($658 million) to the total revenue.

The company’s international operations made up nearly 15% of the total revenue at AED 1.743 billion ($475 million) during H1-19.

It is worth noting that Emaar Malls, the shopping malls and retail business majority-owned by Emaar Properties, reported a 3% year-on-year increase in net profits for H1-19, recording AED 1.130 billion, compared to AED 1.102 billion.

Emaar Malls’ revenue reached AED 2.227 billion ($606 million) in H1-19, up 6% from AED 2.103 billion ($573 million) in the prior-year period.

Dubai – Mubasher: Emaar Development, a subsidiary of Emaar Properties, has achieved a net profit of AED 1.382 billion ($376 million) for the first half of 2019.

Moreover, the real estate firm has generated revenue of AED 6.237 billion ($1.698 billion) for the six-month period ended 30 June 2019, Emaar Properties said in a press release on Sunday.

In H1-19, Emaar Development has launched 16 new projects in Dubai at a total value of AED 8.850 billion ($2.409 billion), the leading property developer revealed.

During the first quarter of 2019, Emaar Development posted a 51% hike in sales, recording AED 5.902 billion, compared to AED 3.90 billion in Q1-18.

The property development unit of Emaar Properties reported a net profit of AED 751 million in Q1-19, as well as revenue of AED 3.34 billion.

By: Mahmoud Gamal

The Sharjah-based Arad Real Estate Investment and Development Company (ARAD) currently considers a number of investment opportunities in Saudi Arabia, the company’s chairman Sultan bin Ahmed Al Qasimi said.

The company hopes to launch its first project in the kingdom in the near future, Al Qasimi told Mubasher in an interview.

He stressed that Saudi Arabia is a great option for the company to invest in due to the kingdom’s steady economy.

Al Qasimi indicated that the company also considers entering the Egyptian market soon.

He also added that ARAD had made its debut in the Saudi market by taking part in Cityscape Jeddah, as well as opening its first office outside the UAE in Riyadh.

The company’s office located in the Saudi Arabian capital is expected to open officially in September, he said.

Egypt

ARAD plans to launch one of its projects in Egypt in the future after considering possible opportunities in the market, Al Qasimi noted.

He also highlighted the strength of the Egyptian real estate sector amid the major projects currently being developed in the country.

The UAE

The company plans to extend its presence in Dubai and aims to launch a new project in the emirates by the end of this year, Al Qasimi said.

He indicated that ARAD will open a new office and sales centre in Abu Dhabi in the third quarter of 2019.

Exceptional financial results

ARAD’s chairman said that the company has recorded exceptional financial results from two projects in Sharjah; Nasma Residences and Aljada.

The company has already begun handing over the units in Nasma Residences, while the construction work at Aljada is on track, he added.

ARADA seeks to launch new units and communities at Aljada, the largest mixed-use real estate project in Sharjah, in the second half of 2019, Al Qasimi revealed.

Moreover, the company has recruited an excellent team of over 200 employees to develop further major projects outside the emirate of Sharjah at the right time, he remarked.

Translated by: Mai Ezz El-Din

Dubai – Mubasher: Union Properties, listed on the Dubai Financial Market (DFM), has reported its interim consolidated financial results for the first half of 2019.

Loss for H1-19 attributable to shareholders amounted to AED 82.32 million, against a profit of AED 207.42 million in H1-18, according to the company’s financial results statement.

Loss per share (EPS) stood at AED 0.0192 in the six-month period ended 30 June 2019, versus AED 0.0484 in the prior-year period.

Revenue from contracts with consumers fell to AED 207.60 million in H1-19, versus AED 239.66 million in the year-ago period.

In the second quarter of 2019, the company has incurred a loss of AED 84.071 million, against achieving a profit of AED 24.70 million.

Total assets amounted to AED 6.17 billion at the end of June 2019, versus AED 6.27 billion as of 31 December 2018.

In May, Union Properties reported its unaudited financial results for Q1-19, with a profit for attributable to shareholders of AED 1.75 million, compared to AED 182.7 million in Q1-18.

Abu Dhabi - Mubasher: Aldar Properties, a leading property developer in the UAE, reported a 7% year-on-year increase its net profit for the second quarter of 2019.

Net profit reached AED 476 million in Q2-19, versus AED 445 million in the same quarter of 2018, according to a press release on Thursday.

Revenue hiked by 10% during the three-month period ended 30 June 2019 to AED 1.66 billion from AED 1.51 billion in Q2-18, Aldar Properties revealed.

The company’s gross profit hit AED 669 million in Q2-19, up 3% from AED 649 million in the year-ago period.

Development management registered a growth of 17% in revenue to AED 692 million in Q2-19 on the back of activity on key developments under construction and higher third-party development management fees.

Moreover, off-plan development sales jumped by 129% year-on-year to AED 853 million during the April-June period of 2019, supported by the launch of Lea Yas Island and Alreeman II.

In the first half of 2019, the company recorded a robust net profit of AED 969 million, down 13% year-on-year, backed by healthy performance of core business operations.

Revenue for H1-19 grew by 15% to AED 3.42 billion from AED 2.98 billion in the corresponding period of 2018.

Gross profit reached AED 1.39 billion during the six-month period ended 30 June 2019, up 2% from AED 1.36 billion in H1-18

Aldar’s balance sheet remains strong with cash plus available and undrawn liquidity lines of AED 7.3 billion as at 30 June 2019.

As for asset management, net operating income (NOI) increased by 7% year-on-year to AED 827 million in H1-19.

Talal Al Dhiyebi, CEO of Aldar Properties, commented: “There is an upswing in sentiment towards Abu Dhabi‘s real estate market with the recent announcement of our AED 9 billion worth of development projects since the start of 2019. Those, coupled with government initiatives to spur economic growth, are having a positive multiplier effect on the wider Abu Dhabi economy and stirring confidence.”

“This is reflected in our strong performance for the period, underpinned by near AED 2 billion in off-plan sales. Also, we are investing wisely, extracting more value from our investment portfolio, which is contributing to our growth. The wheels of change are in motion and Aldar is well-positioned and well-funded to capitalise on emerging opportunities,” he added.

In Q1-19, Aldar Properties, listed on the Abu Dhabi Securities Exchange (ADX), reported a 26% year-on-year decrease in its net profit, recording AED 493 million.

The company’s revenue rose by 20% in Q1-19 to AED 1.76 billion from AED 1.47 billion in Q1-18.

Concerns arise amid investors in Dubai’s real estate market over the increase in the number of offered units ahead of demand, in addition to the decline in prices.

However, developers are exerting efforts to ensure the fast delivery of new projects, according to a report Property Finder Trends report for the first six months of 2019.

In the first half of 2019, a total of 20,978 residential units were completed, including 14,999 apartments, 1,084 serviced apartments, and 4,895 villas and townhomes.

Moreover, 38,426 residential units have undergone great progress since July, which were planned to be completed by year-end.

“With a record number of units expected for the second half of the year, we can expect prices to decline further as the market continues to absorb these units,” director of data and research at Property Finder, Lynnette Abad, said.

As per Property Finder’s data, overall residential stock in Dubai is expected to hit 637,000 units by the end of next year.