Emaar Properties profits drop
Emaar Properties is the leading property development company in the UAE. This Dubai-based company built the world’s tallest tower, the Burj Khalifa in Dubai, however share prices have declined 1.4% to 3.44 dirhams on Dubai’s stock market.
The DFM listed company reported a 45% decline in first quarter profits as it handed over fewer units in Burj Khalifa.
In an emailed statement, the company states that their net income has dropped to 421 million dirhams, or 7 fils a share, from 761 million dirhams.
Emaar Propertiess grew with its malls, hotels and handover of 270 apartments in Burj-Khalifa and Boulevard Plaza. However, this was majorly affected by a drop in Dubai property prices, and since 2008 banks tightened lending. This decline urged Emaar to look for foreign operations in in order to increase profits, which analysts say was risky. According to Alembic HC securities analyst Majed Azzam, ‘prices in foreign projects are lower and margins are tighter’.
Emaar’s global projects in Egypt, Saudi Arabia, Jordan, Turkey and Pakistan are expected to contribute its revenue. So far Jeddah Gate, Egypt’s Uptown Cairo and Al Khobar Lakes are some of the fast progressing projects and will be accomplished in a few months. ‘Despite the fact revenue is coming down, the company continues to have high overhead’, says Azzam.
Emaar Properties is the leading property development company in the UAE. This Dubai-based company built the world’s tallest tower, the Burj Khalifa in Dubai, however share prices have declined 1.4% to 3.44 dirhams on Dubai’s stock market. The DFM listed company reported a 45% decline in first quarter profits as it handed over fewer units in Burj Khalifa. In an emailed statement, the company states that their net income has dropped to 421 million dirhams, or 7 fils a share, from 761 million dirhams. Emaar Propertiess grew with its malls, hotels and handover of 270 apartments in Burj-Khalifa and Boulevard...
Emaar Properties is the leading property development company in the UAE. This Dubai-based company built the world’s tallest tower, the Burj Khalifa in Dubai, however share prices have declined 1.4% to 3.44 dirhams on Dubai’s stock market.
The DFM listed company reported a 45% decline in first quarter profits as it handed over fewer units in Burj Khalifa.
In an emailed statement, the company states that their net income has dropped to 421 million dirhams, or 7 fils a share, from 761 million dirhams.
Emaar Propertiess grew with its malls, hotels and handover of 270 apartments in Burj-Khalifa and Boulevard Plaza. However, this was majorly affected by a drop in Dubai property prices, and since 2008 banks tightened lending. This decline urged Emaar to look for foreign operations in in order to increase profits, which analysts say was risky. According to Alembic HC securities analyst Majed Azzam, ‘prices in foreign projects are lower and margins are tighter’.
Emaar’s global projects in Egypt, Saudi Arabia, Jordan, Turkey and Pakistan are expected to contribute its revenue. So far Jeddah Gate, Egypt’s Uptown Cairo and Al Khobar Lakes are some of the fast progressing projects and will be accomplished in a few months. ‘Despite the fact revenue is coming down, the company continues to have high overhead’, says Azzam.
