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Nakheel’s profit dips 22.75% to Dh4.38 billion in 2018

Nakheel’s profit dips 22.75% to Dh4.38 billion in 2018

Dubai, UAE


Dubai-based master property developer Nakheel’s net profit declined 22.75 percent to Dh4.38 billion in 2018, compared to Dh5.67 billion reported in 2017.


The company’s total equity has more than doubled in the last seven years, standing at Dh49 billion in December 2018, compared to Dh24 billion at the end of 2011.


Under its core business, residential development, Nakheel handed over 657 land and built form units in 2018, taking the total number of handovers since 2010 to 13,357.


The company also launched new residential projects, including the twin-building Dragon Towers apartment complex at Dragon City, and a collection of new homes at Jumeirah Park in 2018, with more planned as the market dictates.


Nakheel continues to focus on growing its retail, hospitality and leasing businesses, which all performed strongly in 2018, generating revenues of Dh2.5 billion from an increasing portfolio of projects.


Nakheel is targeting a substantial increase in annual recurring revenue in the next five years as part of its sustainable growth strategy, with a range of new projects coming on line in the next 18 months to two years that will contribute to the projected increase once fully operational.  Among them: Nakheel Mall and The Palm Tower (St. Regis hotel) on Palm Jumeirah; The Night Market at Deira Islands; a Premier Inn hotel and showroom complex at Dragon City; an Avani Hotel at Ibn Battuta Mall; Warsan Souk at Warsan Village; the 1,500-villa Nad Al Sheba community and two resorts (RIU and Centara) at Deira Islands.


Nakheel Chairman, Ali Rashid Lootah, said: “Our focus is on sustainable, long term growth by continuing to expand within the retail, hospitality and leasing sectors in line with our own goals and Dubai’s vision.  We remain ever thankful to – and inspired by – our leader, HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, who has placed his trust in Nakheel to play its part in delivering that vision.  We also thank all of our other stakeholders and customers for their continued loyalty to our company.”


Nakheel’s current and future non-development portfolio includes 19 retail developments with 17 million square feet of leasable space; 18 hotels, resorts and serviced apartment complexes with 6,600 keys between them; and 24 clubs and restaurants across Dubai. 


The company’s operational retail space grew to more than five million square feet in 2018, with the opening of The Pointe, the new waterfront dining and leisure destination at Palm Jumeirah, revenue from which will be reflected from 2019. Another three million square feet of retail space is expected to come on line this year.


Revenue from Nakheel’s hospitality business also increased in 2018, reflecting the continued robust performance of its first two hotels – which opened in 2016 at Ibn Battuta Mall and Dragon City and have now completed two full years of operation – and a range of new community clubs and food and beverage concepts. Construction of more hotels and resorts is in full swing under Nakheel’s strategy of bringing new and diverse tourist offerings to Dubai as a part of the government’s tourism vision.


Nakheel’s residential leasing business is also expanding.  One of the largest players in the sector, Nakheel has a current stock of 17,000 units, with more on the way at Nad Al Sheba, Palm Jumeirah and Warsan Village.


Dubai-based Nakheel is a world-leading master developer whose innovative, landmark projects form an iconic portfolio of master communities and residential, retail, hospitality and leisure developments that are pivotal to realising Dubai’s vision. Nakheel’s waterfront projects, including the world-famous, award-winning Palm Jumeirah, have added more than 300 kilometres to Dubai’s original, 70km coastline, paving the way for the development of hundreds of seafront homes, resorts, hotels and attractions.


Nakheel’s current master developments span 15,000 hectares, accommodate nearly 300,000 people and provide a growing range of destinations, attractions and facilities for Dubai’s residents and tourists. They include Palm Jumeirah, The World, Jumeirah Park, Jumeirah Village, Al Furjan, The Gardens, Discovery Gardens, Jebel Ali Village, Dragon City, International City and the upcoming Deira Islands – a new destination for tourism, living and leisure at Dubai’s oldest, most traditional trading hub.


Nakheel Malls, Nakheel’s retail arm, has 17 million sq ft of leasable space across 19 projects, including large-scale malls and souks, leisure destinations and community shopping centres. Operational assets, with five million sq of leasable space between them, include Ibn Battuta Mall and Dragon Mart, both of which are undergoing further expansion, and Golden Mile Galleria, The Pointe and Club Vista Mare on Palm Jumeirah. Upcoming malls due to open in 2019 include Nakheel Mall on Palm Jumeirah, The Night Market at Deira Islands and Warsan Souk at Warsan Village. Other projects include Deira Mall at Deira Islands, Al Khail Avenue at Jumeirah Village and Nad Al Sheba Mall.


Nakheel Hospitality’s project portfolio currently comprises 18 resorts, hotels and serviced apartment complexes, ranging from five star, luxury establishments to modest accommodation, with over 6,600 rooms and hotel apartments between them. Two are operational, with the rest at various stages of development. Working with international, reputable hospitality brands, Nakheel is bringing new concepts to Dubai in line with the government’s tourism vision. Joint venture partners currently include Spain’s RIU Hotels & Resorts and Thailand’s Centara Hotels & Resorts, with management agreements with Accor Hotels (Raffles), Marriott Hotels & Resorts (St. Regis), Minor Hotels (Avani) and Hilton (DoubleTree) also in place. Nakheel’s hospitality project collection also includes 24 community clubs, restaurants and lounges.


Nakheel’s residential leasing portfolio currently comprises 17,000 villas and apartments at The Gardens, Discovery Gardens, Jebel Ali Village, Palm Jumeirah, Badrah, Veneto and International City, with more on the way at Nad Al Sheba, Warsan Village and other areas across Dubai.