Dubai property giant Emaar sees 17% profit rise in Q1

Sunday 01/05/2016
Property sales in Dubai have gained momentum

DUBAI - Dubai property giant Emaar said Sunday its net profit increased by 17 percent to $328 million in the first quarter of 2016, led by "significant progress" in construction.

Revenues of the group, which built the world's tallest tower Burj Khalifa, also increased by 17 percent to 3.529 billion dirhams ($961 million), it said in a statement.

Recurring revenues from malls and hospitality businesses amounted to 44 percent of total revenues, while income from international operations grew by 44 percent, accounting for 14 percent of total revenues, it said.

"Property sales in Dubai and other key international markets have gained momentum," said Mohamed Alabbar, chairman of Emaar Properties.

The company's net profit dropped in the last quarter of 2015 by one percent to $281.7 million, but its full year profit inched up 11 percent to $1.11 billion.

The company said in February it had written off 301 million dirhams ($82 million), the value of the Address Downtown hotel which was damaged in a New Year's Eve fire. The hotel is fully insured and the insurance claim process is ongoing.

Emaar announced last month plans to build a viewing tower that will be "a notch" taller than Burj Khalifa and cost around $1 billion.

Burj Khalifa, which opened in January 2010, is 828 metres (2,700 feet) high and cost $1.5 billion to build.