Dhs 4.7 billion profit for two giant Dubai corporations

Dubai skyline

Dubai skyline

source: http://www.khaleejtimes.com

DUBAI — Two flagship corporates of Dubai — Emaar Properties and Emirates NBD — recorded a strong surge in profits, accentuating the remarkable rebound of the real estate and banking sectors, the key engines powering the emirate’s economic growth.

As Emaar, the global property developer of iconic assets, recorded full-year 2012 net profits of Dh2.119 billion, up 18 per cent on 2011, ENBD, the UAE’s largest lender by assets, more then trebled its fourth quarter profits to post an annual net profit of Dh2.56 billion.

The performances of both corporates surpassed even the most optimistic forecasts of analysts.

Emaar’s revenues hit Dh8.240 billion, reflecting the success of the company’s focus on strengthening its recurring revenue streams.

Emaar said its shopping malls & retail and hospitality & leisure businesses contributed Dh4.096 billion to the full-year revenue, representing 50 per cent of the total.

The builder of the world’s tallest structure — Burj Khalifa — recorded fourth quarter revenues of Dh2.680 billion as net profit reached Dh512 million. The contribution of Emaar’s international operations to the total revenue was Dh1.264 billion, representing 15 per cent of the total revenue. “International revenues were reinforced by the handover of homes and offices in Turkey, Lebanon, Saudi Arabia, Egypt and Pakistan, among other markets,” the master developer said.

Another proud achievement was that Downtown Dubai, Emaar’s prestigious township, became the world’s most-visited destination with over 60 million visitors in 2012.

“Last year was one of transformation, for Emaar Properties, Dubai and a number of the international markets that we serve. With Dubai restating its credentials as a global business and tourism hub, Emaar capitalised on the city’s resurgence by investing in creating prime real estate assets and strengthening our shopping malls and hospitality businesses,” said Mohamed Alabbar, Chairman of Emaar.

“Our inspiration has been and continues to be the vision of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, which emphasises the continued expansion of the core sectors of tourism, retail and hospitality,” Alabbar said in a statement.

Alabbar said the company’s growth outlook for 2013 integrates with its ongoing commitment to support the socioeconomic growth of the countries it operates in, by developing integrated communities that help energise the local economy.

“We have made several significant additions to our property portfolio including the Dubai Modern Art Museum & Opera House District in Downtown Dubai, the one million sq ft expansion to The Dubai Mall, the extension to Arabian Ranches, new properties in our Address hotels portfolio, and our partnership with Mohammed Bin Rashid City. Our focus on adding value for our stakeholders and creating self-sustaining business entities that contribute to the recurring revenue streams of the company will remain a constant.”

In 2012, Emaar’s shopping malls and retail business contributed Dh2.719 billion to annual revenues, 27 per cent higher than the 2011 malls & retail revenues of Dh2.14 billion. This was led by the strong growth in visitor footfall at The Dubai Mall, Emaar’s flagship development.

issacjohn@khaleejtimes.com

 

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