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Nakheel posts net profit of Dh4.38 billion in 2015

Dubai - While development remains Nakheel’s core business activity, the developer is increasingly diversifying income streams by focusing on retail and residential leasing.

Revenues from development and diversified businesses helped Nakheel register a net profit of Dh4.38 billion for the financial year 2015, a 19 per cent increase compared to its net profit of Dh3.68 billion for 2014.
While development remains Nakheel’s core business activity, the developer is increasingly diversifying income streams by focusing on retail and residential leasing.
Nakheel has delivered around 9,700 units between 2010 and 2015.
Its first hospitality asset – the ibis Styles hotel at Dragon Mart, operated by Accor – commenced operations earlier this week. This is the first of 10 hotels and resorts Nakheel is scheduled to complete in Dubai as part of its hospitality expansion.
The developer also awarded the construction contract for its three-tower residential and retail leasing complex at the entrance of the Palm Jumeirah — The Palm Gateway — on Tuesday.
In 2015, Nakheel handed over 847 units in the Palm Jumeirah, Al Furjan, International City, Jumeirah Village, Jumeirah Park and Jumeirah Heights.
Nakheel chairman Ali Rashid Lootah said: “Nakheel’s profits have steadily improved from Dh0.96 billion in 2010 to Dh4.38 billion in 2015.”
Nakheel completed Dragon Mart 2, the first phase of expansion at Dragon City in 2015.
In 2015, Nakheel awarded new contracts worth Dh8 billion for various projects currently under development, including The Palm Tower, Deira Islands Night Souk, Warsan Souk and the Circle Mall.
“Our strategy to have a more diversified business is taking shape. Our first hotel has opened, Dragon Mart 2 is now operational and we expect to complete and start operations at the first phase our Ibn Battuta Mall expansion in 2016. These projects will contribute to our recurring revenue which is expected to grow in subsequent years as more projects are completed, making Nakheel a key player in the Dubai’s retail, leasing and hospitality businesses,” Lootah added.
Nakheel’s trade creditor sukuk is due to mature in August 2016. “We are well placed to honour this financial commitment from our internal resources,” the chairman said.
business@khaleejtimes.com