Deyaar’s first-quarter profit in five-fold jump as revenue rises

Deyaar Development said its first-quarter net profit jumped more than five-fold as revenue increased on project deliveries.

Net income for three months to the end of March was Dh15.1 million ($4.14m), up from Dh2.6m a year ago, the listed developer said in a filing to the Dubai Financial Market, where its shares trade.

Quarterly revenue rose to Dh149.2m, up from Dh98.8m a year ago.

The company, which is majority owned by Dubai Islamic Bank, was able to deliver a strong performance “due to our continuous efforts and commitment to deliver our projects on time”, said chief executive Saeed Al Qatami.

There has been high demand for Deyaar’s ready and off-plan residential property portfolio and “we expect this demand to grow even more with the economic recovery in the emirate and the effort that the government [is making] towards executing the Dubai Urban Master Plan 2040”, he said.

The UAE property market softened after a three-year oil price slump that began in 2014 and the coronavirus-induced slowdown, which tipped the world economy into its worst recession since the 1930s.

However, economic support measures and government initiatives – such as visas for retirees and the expansion of the 10-year golden visa programme to encourage foreign professionals to settle in the UAE – have helped to improve sentiment.

The Expo 2020 Dubai event and the emirate’s new remote-working visa are also expected to drive property demand.

The Dubai 2040 Urban Master Plan, which aims to make the city the world’s best to live in, will further boost its property sector.

Established in 2002, Deyaar has developed projects in the Business Bay, Dubai Marina,

Jumeirah Lakes Towers and Al Barsha districts of Dubai.

Early this year, it handed over the 478-residential unit Bella Rose project in Dubai Science Park.

Construction of the third and fourth phases of its Midtown residential project, which will add 11 more buildings, is also progressing according to plan.

Last year, Deyaar shareholders approved a capital-restructuring plan to boost its finances and write off accumulated losses.

The developer secured the approval of the Securities and Commodities Authority to reduce its capital from Dh5.78bn to Dh4.55 billion.