By: Mahmoud Gamal
Dubai – Mubasher: Dubai Investments has continued boosting its revenues from the real estate sector, its main source of income during the first half of 2017.
Financial results showed that the company’s total revenue rose to AED 701.26 million during H1-17 from AED 517.35 million in H1-16.
The company’s property investments focus on developing real estate projects to lease and sell developed residential units. These investments made up 55% of revenues by the end H1-17.
Current property projects
Dubai Investments is currently developing the mixed-used Mirdif Hills project, and is working on completing phase three of the Green Community Dubai project.
The Dubai-listed firm is also taking part in a number of property projects across the UAE, including infrastructure works at the Palisades project within the Dubai Investments Park (DIP).
Dubai Investments expects to launch the 11 million square metre DIP Riyadh project towards the end of Q3-17, after launching an SAR 1.8 billion (AED 1.76 billion) real estate investment fund (REIT) to finance the project and to establish a company to manage it.
Revenues from bonds, manufacturing sector
The company’s financial results indicated strong activity in terms of revenues from investing in bonds during the first six months of 2017 to reach AED 7.77 million against AED 19.2 million in losses in the corresponding period of 2016.
Meanwhile, revenues from manufacturing and contracting dropped 34.2% to AED 574.46 million in H1-17 from AED 873.59 million in the year-ago period.
Data also showed a decline in Dubai Investments’ revenues from manufacturing, logging AED 480 million in H1-17 versus AED 516 million in the year-ago period. The company attributed the decline to a 25% year-on-year drop in revenues from financing to AED 25.5 million during the period.
With the exception of non-recurring profits from Dubai Investments’ divestitures worth AED 186 million in H1-16, the company’s profits would have risen by 45% or by around AED 150 million in H1-17.
Forecasts remain positive
Dubai Investments’ forecasts for the remainder of 2017 are still positive, CEO Khalid bin Kalban recently stated, indicating significant progress in the company’s property projects in the UAE.
It is expected that results for the full-year 2017 will be better than those recorded in 2016.
Revenues from the company’s leasing projects grew 8% year-on-year to AED 459 million in H1-17.
Translated by: Mahmoud Zahwey and Nada Adel Sobhi
