Dubai property developer Deyaar reported a more than fourfold jump in its third-quarter profit on higher revenue as the UAE’s property market continues to rebound from the coronavirus-induced slowdown.
Net profit for the three-month period ending September 30 climbed to Dh36.34 million ($9.89m), from Dh8.1m in the same period in 2021, the company said on Thursday in a filing to the Dubai Financial Market, where its shares are traded.
Revenue in the third quarter surged 72 per cent annually to Dh207.7m, from Dh120.7m in the same period in 2021.
“Deyaar continues to demonstrate a strong financial performance in 2022.... boosted by the positive trends recorded by the UAE’s real estate sector," said Saeed Al Qatami, chief executive of Deyaar.
The UAE’s property market continues to recover from the pandemic on the back of government initiatives such as residency permits for retirees and remote workers, as well as the expansion of the 10-year Golden Visa programme and the economic boost generated by Expo 2020 Dubai.
In Dubai, average residential prices in the third quarter grew 9 per cent annually while average rental rates rose by 25 per cent, with both sales and rentals bolstered by more robust demand and increased buyer activity, according to a recent report from consultancy JLL.
In Abu Dhabi, sale prices during the three months period climbed 4 per cent while average rents increased by 2 per cent annually, the report said.
Off-plan and secondary property sales in Dubai reached a 12-year high in the third quarter, both in terms of volume and value, according to a report by Property Finder.
A total of 25,456 sales transactions worth Dh69.72 billion were recorded in the third quarter, marking an increase of about 62 per cent in terms of volume and more than 65 per cent in terms of value, compared with the third quarter of 2021.
Deyaar’s nine-month profit jumped more than threefold to Dh103.2m as compared to Dh30.8m during the same period last year as revenue during the period climbed 38 per cent to Dh577.1m, according to the financial statement.
The company's total assets grew 6 per cent to Dh6.1bn by the end of September compared with Dh5.79bn at the end of December last year. Total liabilities grew 17 per cent to Dh1.67bn during the same period.
In a separate filing, Deyaar also said the company's board has recommended to approve a Dh500m cash settlement offer made by Dubai-based developer Limitless.
The offer includes paying Dh200m immediately upon signing the agreement and completing the payment of Dh300m within a period not exceeding 18 months from the signing of the agreement between the two companies.
The board also suggested holding a general assembly meeting on November 21 to present the settlement offer to the company's shareholders for approval after obtaining the necessary permissions from the Securities and Commodities Authority, the company said.
In 2019, a UAE court ordered Limitless to pay Dh411.9m to Deyaar in a dispute related to the purchase of land. The court also ordered Limitless to pay fees and compensation of Dh61.1m to Deyaar.
"With Midtown’s Mesk and Noor districts on track for handover, alongside the successes achieved by the Regalia and Tria projects in attracting more investors with a sales record of more than Dh1.5bn and the proposed Limitless settlement, we are confident in our ability to achieve even more positive results during the next quarter," Mr Al Qatami said.
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
First Person
Richard Flanagan
Chatto & Windus
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UAE currency: the story behind the money in your pockets
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
