ECONOMY

Dubai’s DAMAC posts 78 percent drop in third quarter profit

Burj Khalifa and luxury Burj al-Arab Hotel (to the left) are seen in a general view of Dubai, UAE. The UAE property sector has taken a hit in recent years. (File photo: Reuters)

DAMAC Properties, owner of the only Trump-branded golf club in the Middle East, reported on Wednesday a 78 percent drop in third quarter profit amid an extended slowdown in Dubai’s property sector.

A supply glut has slowed the market for most of the decade, apart from a brief pickup more than five years ago, sending residential property prices down by at least a quarter since 2014.

DAMAC made 50.9 million dirhams ($13.9 million) in the three months to September 30, compared to 230.8 million dirhams a year earlier.

Revenue fell 42 percent to 895.4 million dirhams.

DAMAC Chairman Hussain Sajwani said last month that developers should refrain from launching new projects for up to two years to spur a market recovery.

DAMAC shares have fallen by around 45 percent this year with profits falling in the first three quarters, according to Refinitiv data.

Dubai announced in September the establishment of a planning committee tasked with regulating the sector.

Dubai’s largest listed developer Emaar Properties reported on Sunday a 20 percent rise in third quarter profit.

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Last Update: Wednesday, 13 November 2019 KSA 12:01 - GMT 09:01
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