Emaar Properties, Dubai’s largest listed developer, reported on Wednesday a net profit of Dh6.2 billion in 2019, up one per cent compared to 2018’s net profit of Dh6.139 billion.
The developer of the iconic Burj Khalifa, the world’s tallest tower, posted a net profit of Dh1.76 billion in the October-December period, compared to Dh1.79 billion in the same 2018 quarter as annual revenue for 2019 hit Dh24.6 billion.
The developer’s total property sales in 2019 reached Dh19.233 billion as sales in the UAE touched Dh14.949 billion.
“Emaar’s performance in 2019 was resilient, maintaining growth within a challenging market,” chairman Mohamed Alabbar said in a statement.
Emaar has 30,000 residencies under development in the UAE and over 14,000 units globally, with a total sales backlog of Dh45.8 billion, of which Dh33.736 billion is in the UAE, to be recognised as revenue in the coming years, it said.
Dubai is expected this year to see the biggest number of new homes completed in more than a decade, adding to pressure on a once-booming but now struggling property sector already weakened by excess supply, according to a Knight Frank report.
Emaar said its positive performance in 2019 was a result of its ongoing investment in customer-centric innovation across its businesses and continued interest from foreign investors in both residential and commercial developments as well as new, first time home buyers entering the UAE property market.
“Emaar’s sales achievements in 2019 are a testament to the products and people behind these innovations. Each year we set the bar higher, raising expectations across the business to ensure Emaar maintains the level of excellence the brand is synonymous with. Optimising resources, improving efficiency and maximizing our productivity has directly contributed to enhancing our performance and positively impacted our results,” said Alabbar.
He said the company’s main focus is to bring the best talent to achieve its goals consistently. “Our resources are focused on enhancing our customer happiness while providing superior results to our shareholders. We are also implementing new digital initiatives which will significantly enhance the value of our properties and assets to our customers whilst enabling us to innovate through new products and services.”
In 2019, Emaar Development recorded a net profit of Dh2.7 billion and revenue of Dh12.746 billion.
During 2019, Emaar Development has launched 22 new projects across various master plans in Dubai and has sold 70 per cent of its units launched in 2019, indicating a stronger connection of customers with Emaar’s strong brand value. Emaar Development has also introduced 3 new master-planned communities in 2019, Arabian Ranches III, Mina Rashid and The Valley, with a sell-out response, demonstrating the demand for expansive communities and family homes.
Emaar’s international property development operations recorded 43 per cent increase in revenue to Dh4.399 billion in 2019 as compared to Dh3.081 billion in 2018.
“This was primarily led by Emaar’s operation in Egypt and India. Emaar International represents 18 per cent to the total Group revenue,” the statement said.
Emaar Malls recorded 5 per cent increase in revenue to Dh4.673 billion in 2019, compared to Dh4.446 billion in 2018. Overall net profit in 2019 amounted to Dh2.286 billion as compared to net profit of Dh2.230 billion in 2018.
Occupancy levels within Emaar Malls assets – The Dubai Mall, Dubai Marina Mall, Gold & Diamond Park, Souq Al Bahar and the Community Retail Centres – remained strong at 92 per cent. In 2019, the malls and retail centers of Emaar Mall welcomed approximately 136 million visitors collectively with The Dubai Mall maintaining its exceptional performance welcoming 84 million visitors in 2019, the developer said.