A strong recovery in the Dubai real estate market has seen the country’s leading developer report profits in excess of AED2.5 billion for 2013.
- Dubai property developer Emaar reports AED2.5 billion profits
- Fourth quarter profits jump by 48%
- Annual sales increase by 25% sees strong residential and commercial property returns
Quarterly profits at Dubai developer Emaar Properties have jumped by 48%, pushing overall net income beyond the AED2.56 billion mark.
It results from strong performances across the developer’s malls, property and hotel units, with the Dubai-based company recording profits of AED756 million in the fourth quarter.
The company is Dubai’s largest property developer and said annual sales had risen by 25% to AED10.3 billion, driven by a 33% increase in revenues from the company’s property division in the last year.
A revival in the Dubai property market saw residential sales for 2013 total AED12 billion, almost three times the total for 2012.
Retail and hospitality businesses also pushed up revenues by 17%, as the Dubai Mall attracted 75 million visitors – 15% more than the previous year.
Ratings agency Moody’s has chosen to raise Emaar’s rating two levels – from Ba1 to Ba3 – in light of the results, meaning the company is now rated with the highest non-investment grade.
Moody’s said the company was a “clear beneficiary” of the recovery in Dubai’s real estate market.
It added that “recurring cash flows from its investment portfolio coupled with the success of its new project launches and reduced gross debt levels has significantly strengthened the credit profile of the company”.