Dubai’s Emaar Properties posts 58% slump in net profit for 2020

Dubai developer Emaar Properties reported a net profit of Dhs2.617bn, against Dhs6.2bn achieved in 2019, slipping 57.8 per cent.

Meanwhile, its revenue of Dhs19.710bn, also dipped 19.8 per cent, against Dhs24.58bn in 2019. Emaar recorded overall property sales of Dhs10.902bn of which Dhs6.321bn was achieved in the UAE.

Emaar now has a total sales backlog of Dhs36.677bn of which Dhs24.738bn is in the UAE, to be recognised as revenue in the coming years.

Mohamed Alabbar, founder of Emaar, said: “Our performance in 2020 is a direct result of our ability to move quickly, adapt to new business conditions and utilise our existing resources to access new opportunities. We continue to embrace technology to help grow our business, while at the same time closely adhere to the cost discipline that helps us achieve better results in each quarter.

“Looking ahead to 2021, we see a world of opportunities – both traditional and technology-driven – that will help us grow in ways and in markets that didn’t exist five or ten years ago. This growth and prosperity would not have been possible without the UAE’s wise leadership, who continue to provide us with business conditions where we can achieve our full potential.”

Emaar Development
Emaar Development, Emaar’s build-to-sell real estate business in the UAE, reported revenue of Dhs9.758bn with a net profit of Dhs1.657bn.

As of December 2020, Emaar’s delivery track record includes more than 47,000 residential units in Dubai and, including other international markets, Emaar has delivered over 72,100 residential units. Over 26,000 residences are currently being developed in the UAE, alongside 12,000 units across international markets.

Emaar Malls and other businesses
Emaar Malls, majority-owned by Emaar Properties, reported revenue of Dhs3.508bn in 2020, with a net profit of Dhs704m, despite a significant disruption due to Covid-19. As part of its continued support for tenants, Emaar Malls also extended its flexible Rent Relief Policy until March 31, 2021, including a tiered base rent waiver for its tenants.

Online fashion and beauty destination platform Namshi, which was fully acquired by Emaar in 2019, recorded overall revenue of Dhs1.316bn in 2020. Meanwhile, Emaar’s hospitality and leisure, entertainment and commercial leasing business contributed Dhs1.618bn to the group’s total revenue.

Emaar International

Emaar’s international property development recorded revenue of Dhs4.826bn for 2020, a 10 per cent increase in revenue compared to last year. International development business contributed 24 per cent to Emaar’s total revenue. Emaar’s international operations delivered property sales of Dhs4.581bn during 2020, a growth of 7 per cent compared to 2019.

In December, Emaar Properties named Jamal Bin Theniyah as the chairman of the board of directors.

Read more: Emaar appoints new chairman as Mohamed Alabbar takes on role of MD