UAE developer Nakheel posts $718m H1 net profit

Leading UAE developer Nakheel has announced a net profit of Dh2.64 billion ($718.6 million) for the first six months of 2017 compared to Dh2.95 billion ($803 million) for the same period last year. Announcing the results, the Emirati group said it was confident of achieving its forecast 2017 result, which will reflect an overall growth in profits for the year. Nakheel pointed out that in line with the company's strategy, revenue from non-development businesses – including retail, leasing, hospitality and asset management services – had registered a significant increase. Annual revenues from these segments have more than trebled from Dh800 million ($218 million) in 2010 to Dh2.5 billion ($680 million) in 2017. The surge in non-development revenues has also resulted in a significant increase in the asset values of the company, it stated. The company said it will continue the strategy of developing its cash-generating assets. Accoding to Nakheel, it has handed over almost 870 land form and built form units to customers between January 1 and June 30. The leading master developer of key projects including Palm Jumeirah, The World, Deira Islands, Jumeirah Islands and Nad Al Sheba, Nakheel has more than 21,000 residential units under construction or in the pipeline. On its first half performance, Nakheel said it had announced construction contracts worth more than Dh11 billion during the period. These include an Dh4.2 billion contract for Deira Mall at Deira Islands and a contract for Dh1.5 billion for The Palm Gateway at Palm Jumeirah, it stated. Since April 2017, Nakheel has released a construction tender for its first hospitality joint venture – the Dh670 million, 800-room RUI resort at Deira Islands, said the Dubai developer.