Developers in Dubai, Abu Dhabi report profit decline in Q2-19

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

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