Nakheel has announced a net profit of Dh2.51 billion for the first six months of 2018. The profit for the same period in 2017 was Dh2.61 billion.
Nakheel handed over 451 units to customers in the first six months of the year. The company's non-development businesses - retail, leasing, hospitality and asset management - performed strongly. Annual revenues from these sectors is now Dh2.6 billion - three times as much as in 2010 - and currently accounts for 38 per cent of the company's total revenue.
Revenue from these sectors will continue to grow with the completion of retail and hospitality projects such as The Pointe, due to open this year, and The Night Market, Warsan Souk, The Palm Tower and Nakheel Mall, which are due to come on line in 2019.
In 2017, Nakheel recorded a 14 per cent surge in net profit to Dh5.67 billion and handed over 1,439 land and built-form units during the year, which raised its number of handovers since 2010 to 12,700.
Nakheel officially signed construction contracts worth more than Dh6 billion between January and June this year. Among them: contracts for Dh4.2 billion for Deira Mall; Dh600 million for Nad Al Sheba Mall; Dh447 million for a bridge between Deira Islands and mainland Dubai; and Dh385 million for the 800-room RIU resort at Deira Islands.
In H1 2018, the company also signed a joint venture with Al Nasr Sports & Cultural Club for a Dh300 million retail centre, announced a planned partnership with Austria's Vienna House hotels for a new resort at Deira Islands and declared its first project outside of Dubai - a Dh75 million retail centre in partnership with the Sharjah Investment and Development Authority.
According to a report from the Dubai Land Department, Dubai's real estate sector slowed in the first half of this year with deals transacted falling 16 per cent in value year on year.
The total value of real estate transactions dropped to Dh111 billion in the first half of 2018, compared to realty transactions worth Dh132 billion recorded in the first six months of 2017.
Analysts believe that strategic government decisions announced this year, including granting investors residency visa for up to 10 years, 100 per cent foreign ownership of businesses outside as well as inside the free zone and reducing government fees, would soon be having a positive impact on sustainable growth and on strengthening the competitiveness of the national economy.
Source: Khaleej Times
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