Emaar Malls’ net profit edges up 2.5 per cent

The company is set to open Dubai Hills Mall in the fourth quarter of 2020

DUBAI , UNITED ARAB EMIRATES , MARCH 8 – 2018 :- View of the entrance of new extension of fashion avenue at Dubai Mall in Dubai. ( Pawan Singh / The National ) For News

Emaar Malls, a unit of Dubai’s biggest listed developer, Emaar Properties, saw its net profit edge up 2.5 per cent as revenue climbed 5 per cent, driven by strong performance of its shopping malls and online retail business.

Net profit for the full year ending December 31, 2019 reached almost Dh2.29 billion, compared to Dh2.23bn in 2018, the company said in a statement to Dubai Financial Market, where it shares trade. Revenue during the period reached Dh4.673bn.

“2019 was a great year for Emaar Malls with occupancy and visitor levels growing steadily. This uptick is a result of our continuous innovation as we refresh the customer journey, diversify our portfolio and invest in opportunities to bring our destinations to life,” said Mohamed Alabbar, chairman of Emaar and board member of Emaar Malls.

“Examples of this include the recently-opened Zabeel Extension at The Dubai Mall and the complete acquisition of Namshi, both of which contributed to our achievements in 2019.”

Namshi, the regional e-commerce platform that was fully acquired by Emaar Malls in 2019, reported sales of Dh339 million in the fourth quarter, up 40 per cent compared to the same period during the previous year. For the full-year, sales jumped 21 per cent to Dh1.028bn.

Occupancy levels within Emaar Malls’ assets such as The Dubai Mall, Dubai Marina Mall, Gold & Diamond Park, Souk Al Bahar and its community retail centres were consistent at 92 per cent.

The company said that Emaar Malls received approximately 136 million visitors in 2019, with The Dubai Mall alone welcoming 84 million visitors.

Emaar is also set to open Dubai Hills Mall in Dubai Hills Estate in the fourth quarter of 2020. The 2 million square foot mall features nearly 550 retail and entertainment units including four major family entertainment and leisure centres along with a cineplex, a hypermarket and more than 7,000 parking spaces.

Emaar Malls is also redeveloping Meadows Village to increase its gross leasable area by approximately 95,000 sq ft. The project is scheduled for completion in 2020.

“We expect to see this success continue through 2020, as we focus on loyalty programs to drive repeat visits and open new destinations to welcome inbound tourism driven by Expo 2020,” said Mr Alabbar.

Emaar Malls said that its fourth quarter revenue in 2019 grew 4 per cent year-on-year to Dh1.26bn.