Dubai’s Nakheel sees 22 percent drop in profit

LONDON: Dubai developer Nakheel reported on Wednesday a 22 percent decline in second quarter net profit, according to Reuters calculations.

The real estate company behind Dubai mega projects such as the Palm Islands, made a profit of AED1.16 billion ($315.8 million) in the three months to June 30, compared to AED1.48 billion a year ago, Reuters calculations showed. The company did not provide a quarterly breakdown.

Net profit for the first six months of 2017 was AED2.64 billion, down from the AED2.95 billion recorded in the corresponding period of last year, the statement said.

The Dubai government-owned company said it handed over 870 land-form and built-form units to customers in the first half of the year.

In a statement released on Wednesday, Nakheel declined to reveal its total revenues but cited increased revenue from ‘non-development businesses’ — including retail, leasing, hospitality and asset management services.

Annual revenues from these segments trebled from AED800 million ($218 million) in 2010 to AED2.5 billion ($680 million) in 2017, the company said.

Amid a subdued Dubai real estate market, Nakheel also said it will continue its strategy of developing its cashgenerating assets.

It announced a slew of major projects in the first six months of 2017. These include Deira Mall at Deira Islands, The Palm Gateway at Palm Jumeirah and its first joint hospitality venture, the 800room RUI resort at Deira Islands.