Dubai’s Nakheel sees dip in nine-month profit

Dubai government developer Nakheel reported a 3.5 per cent dip in its nine-month profit on Wednesday after a similar decline for the first half.

The company’s profit until the end of September stood at Dhs3.86bn ($1.05bn) from Dhs4bn ($1.088bn) in the same period last year.

Read: Dubai developer Nakheel posts 3.8% drop in H1 net profit

Nakheel did not disclose third quarter figures but profit was up Dhs1.35bn from the second half, compared to Dhs1.36bn in the same period of 2017.

The company, which is best known for the Palm Jumeirah, said it handed over 588 units in the first nine months of the year, up 137 on the 451 announced in the first half.

It did not disclose overall revenue figures but said revenue from hospitality, retail and leasing now accounted for 40 per cent of the total.

The firm broke ground on the Dhs713m ($194m) Dragon Towers project last month and said it would construct 147 new villas at its Jumeirah Park community from early next year.

Read: Dubai’s Nakheel breaks ground on Dhs713m Dragon Towers project

The company has announced contracts worth Dhs7bn so far this year including Dhs4.2bn ($1.14bn) for the upcoming Deira Islands Mall, described as the Middle East’s largest.

Read: Dubai’s Nakheel awards $1.14bn contract for ‘Middle East’s largest mall’

Other Dubai developers including Emaar Properties also reported profit declines on Wednesday as a slump in the emirate’s real estate market continued.

Read: Dubai’s Emaar Properties sees Q3 profit fall 29%

Residential prices in Dubai have fallen by more than 15 per cent since 2014 linked to limited demand and new supply.