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By: Enas Bahgat

The profits of the UAE-listed real estate companies declined by 25% year-on-year during the second quarter of 2019.

The reasons for that decline include the increase in the cost of finance and operational costs.

According to data compiled by Mubasher, total profits reported by developers listed on the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) went down to AED 3.05 billion ($830 million) in Q2-19, compared to AED 4.09 billion ($1.11 billion) the year before.

Real estate companies listed on the DFM posted AED 2.56 billion profits in Q2-19, against AED 3.63 billion in Q2-18.

Meanwhile, ADX-listed developers reported a 5.86% year-on-year hike in their profits during the three-month period ended 30 June, recording AED 485.91 million.

Emaar Properties and Aldar Properties topped profitable real estate companies in both Dubai and Abu Dhabi markets.

Emaar’s profits levelled down by 14.82% to AED 1.3 billion in the second quarter of 2019, in comparison with AED 1.6 billion in the year-ago period.

The major company’s revenue sank to AED 1.81 billion from April to the end of June, from AED 2.24 billion in Q2-18.

Meanwhile, Aldar Properties posted a 5.34% year-on-year profit increase in Q2-19, registering AED 470.4 million.

Aldar's revenue rose to AED 1.67 billion in the three-month period ended 30 June, versus AED 1.51 billion a year earlier.

Translated by: Muhammad Abdul-Wakeel

Construction work at Wasl Tower in Dubai, being developed by Wasl Asset Management Group, has progressed, Albayan Newspaper reported.

The 63-storey tower is set to become the  World’s tallest ceramic façade, according to the local newspaper.

Located in the direct opposite of the Burj Khalifa, Wasl Tower will be 300 metres tall.

The mixed-use project, which was previously awarded to Arabtec Holding, is scheduled to be completed in November 2020.

In May 2017, Arabtec Holding announced it had been awarded a $398 million contract for the construction of Wasl Tower on Sheikh Zayed Road.

UAE - Mubasher: Nakheel, a leading property developer in the UAE, announced the launch of an exclusive collection of ready-to-occupy family villas for sale at its new luxurious community Nad Al Sheba in Dubai.

The new development, located off Sheikh Mohammed Bin Zayed Road, now has nearly four- and five-bedroom homes that are available for sale to UAE and GCC nationals, according to a press release.

Prices of the villas start at AED 3.2 million, with the company offering special payment plans.

Nad Al Sheba district, one of Dubai's most popular areas for Emiratis to live, now has 1,572 Mediterranean and Moroccan style villas.

The new gated community, where Nakheel also offers homes for lease, will feature amenities, including five-kilometre cycling and jogging tracks that are currently under construction, as well as a community clubhouse, restaurant, pool, gym, and sports courts.

Nad Al Sheba Mall, which will have around 200 shops, restaurants, and services, including a supermarket, medical centre, multi-screen cinema, and fitness facilities, is also under construction.

In July, Nakheel revealed it had launched the first phase of its high-end villas at Nad Al Sheba community for lease.

Cairo – Mubasher: Emaar Misr for Development, an Egyptian unit of the Dubai-based real estate firm Emaar Properties, announced signing a contract valued at EGP 1.844 billion with UAE’s Arabtec Construction for the establishment of two urban projects at Uptown Cairo in Mokattam.

Construction in the two projects, which feature 449 residential units, will start immediately, the real estate developer said in a statement to the Egyptian Exchange (EGX) on Sunday.

It is noteworthy that Arabtec Construction is a subsiairy of Arabtec Holding. 

In July, Emaar Misr for Development inked a preliminary agreement with El Nasr Housing and Development to end a dispute regarding Uptown Cairo land. 

El Nasr Housing and Development agreed to drop its lawsuit that demanded Emaar Misr to pay a compensation of EGP 1 billion and return 3 million square metres of land in Mokattam as it claims that Emaar Misr failed to develop the land. 

During the first half of 2019, Emaar Misr for Development’s net profits declined to EGP 94.29 million, compared to EGP 1.10 billion in the year-ago period, including minority shareholders’ rights.

The property developer’s sales slid to EGP 1.45 billion in the January-June period of 2019 from EGP 1.75 billion in the corresponding period a year earlier.

As for standalone business, the company posted a profit of EGP 94.29 million in H1-19, compared to EGP 1.1 billion in H1-18.

During the second quarter of 2019, the company incurred losses of EGP 324.3 million, versus a profit of 598.49 million in Q2-18, the company’s consolidated financial results showed.

MAG Property Development (MAG PD), the property development arm of MAG Group Holding, said it has appointed China National Chemical Engineering Group Co. Ltd. (CNCEC) for the construction of the first phase of its mega project MAG City.

The contract, worth $500 million, was awarded during a signing ceremony held at CNCEC’s headquarters in Bejing, China that was attended by chairman of CNCEC Dai Hegen and chairman and founder of MAG Group Holding and MAGLD Moafaq Al Gaddah, according to a press release.

Additionally, a letter of intent was also signed for the construction of the remaining phases of the project for AED 1.38 billion, the release noted.

Located in Mohammed Bin Rashid Al Maktoum City Meydan District 7, MAG City features 5,100 units comprising studios, one and two-bedroom apartments, as well as units comprising two- three- and four-bedroom townhouses.

The new development is located in close proximity to Dubai International Airport, Downtown Dubai, Dubai International Financial Centre (DIFC), and Dubai Creek Harbour.

Talal Moafaq Al Gaddah commented: “We are pleased with the appointment of CNCE to commence construction works at MAG City. The company was appointed after careful consideration due to their capacity to deliver on time and deliver the quality which we promise our clients.

“MAG City is a unique project from a design perspective, and we already won several international awards as best mixed-use property for. MAG LD emphasises resident satisfaction with every project, appointing the best contractors and working with premium partners to deliver upon our promise of a customer-centric approach that urges residents to expect more,” he added.

For his part, Dai Hegen said: “CNCEC is working on various projects across the UAE, Saudi Arabia, Oman, and Iraq, with a total worth of USD 3.2 billion, and we have a staff of nearly 20,000 people who work in housing, infrastructure, petrochemical, and chemical industries. We are confident that we will build MAG City with the highest quality standards and are pleased to be working with such a prominent developer in the UAE.”

It is worth noting that residents of MAG City will enjoy access to a sports club, ladies lounge area, coffee shop, swimming pool, a dedicated children’s pool, and an indoor play area.

“MAG City also features 48,000 square metres of public facilities, including a private clinic, nursery, and mosque; around 8,000 square metres of retail space; and 84,211 square metres of public parks and green areas complete with a jogging and bicycle track,” the release highlighted.

Dubai - Mubasher: Arabtec Holding, a Dubai-based contractor for social and economic infrastructure, on Tuesday announced that its wholly-owned subsidiary Arabtec Construction has been awarded AED 408 million contracts by Emaar Misr for Development, an Egyptian unit of Dubai-based Emaar Properties.

The first contract, worth AED 110 million (EGP 498 million), will see the construction of phase 1 of the Fourteen Golf Residences comprising 270 residential apartments in its Uptown Cairo development in Egypt, according to a press release.

Works at the Fourteen Golf Residences will commence immediately for a 27-months period, Arabtec said.

The seven-building development has a total built-up area (BUA) of 53,690 square metres and features luxurious residential apartments with spacious terraces that overlook the city lights.

Boyd Merrett, CEO of Arabtec Construction, commented: “We are delighted to be awarded another package in the Uptown Cairo development by Emaar in Egypt, which is presenting a strong pipeline of opportunities underpinned by population growth and a stable economy. We look forward to building on our solid track record with Emaar and to delivering another successful village in the Uptown Cairo Master Development”

As for the second contract worth AED 298 million (EGP 1.346 billion), Arabtec has been awarded the construction of Phases 2 and 3 of Celesta Hills comprising 179 units and external works, the company revealed in another press release.

Under this contract, works will start in August 2019 for 38 months, the leading contractor remarked.

Located in close proximity to the Golf Clubhouse, Celesta Hills has a total BUA of 86,664 square metres consisting of two phases.

“The recent contract awards from Emaar Misr are consistent with our strategy to selectively build our presence regionally with long-standing, quality clients,” Arabtec Holding’s group CEO Peter Pollard said.

Uptown Cairo, located in the heart of the capital of Egypt, is an integrated development that will provide its residents with easy access to east and west Cairo through a well-developed road network.

Last Sunday, Emaar Misr announced it had signed an EGP 1.844 billion contract Arabtec Construction for the construction of two urban projects at Uptown Cairo in Mokattam.