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First Dubai Quarterly Net Profit Surges 100 Per Cent

DUBAI - First Dubai Real Estate Development on Tuesday announced over 100 per cent jump in its first quarter net profit for 2009 over 2008.

The company earned Dh88.67 million as profits for 2009 first-quarter, with earnings per share of 8.88 fils, compared to Dh44.48 million for the previous period with earnings per share of 20.15 fils.

“These results were achieved due to the efforts made by First Dubai’s parent company, Al Mazaya Holding, in sustaining profits despite the current economic downturn that has affected many companies in the property market,” First Dubai Vice-chairman Eng.Khalid Esbaitah said.

He added that Al Mazaya had kept in mind the difficulties being experienced by the markets, and that a lot of assets are required to keep up with the current economic situation.

Esbaitah said that First Dubai’s capital amounted to Dh1.26 billion in 2008, which pushed First Dubai to achieve substantial profits for its shareholders. Esbaitah noted that his company did not stop looking for profitable opportunities despite the economic turmoil.

By the end of Q1 2009, First Dubai’s total assets reached Dh1.78 billion, compared to Dh981 million for the same period in 2008, while total liabilities reached Dh594 million compared to Dh647 million for the comparative period in 2008.

Total shareholders’ equity amounted to Dh1.18 billion in Q1 2009, against Dh334 million during the same period last year. In addition, a portion of the profits, about Dh75.5 million, was carried over to allocations as a precautionary measure due to the current economic situation. Esbaitah said that First Dubai and Al Mazaya Holding are currently studying plans for a merger between the two companies, and that Al Shall Consulting has been assigned to do a feasibility study on the merger.

abdulbasit@khaleejtimes.com