Leading Dubai developer Nakheel has recorded a net profit of Dh4.38 billion ($1.2 billion) for 2018 driven by the solid performance of its retail, hospitality and leasing businesses.
Announcing the results for the full year 2018, Nakheel said its 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 said it 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.
The Dubai developer said it was 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.
These include 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.
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," stated Lootah.
Nakheel’s current and future non-development portfolio includes 19 retail developments with 17 million sq ft 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 sq ft 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 sq ft of retail space is expected to come on line this year.
Lootah said the 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.
According to him, Nakheel’s residential leasing business was 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," he added.
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