Dubai property developer Deyaar reported a 184 per cent annual surge in its 2022 net profit as its revenue was boosted by the UAE’s property market recovery.
Net profit for the full year climbed to Dh144.2 million ($39.26 million), the company said in a regulatory filing on Tuesday to the Dubai Financial Market, where its shares are traded.
Revenue for the 12-month period rose about 62 per cent annually to Dh803.4 million, while total assets grew nearly 7 per cent year-on-year to Dh6.17 billion.
The UAE's property market rebounded strongly from the Covid-19 induced slowdown, driven by government initiatives and higher oil prices.
Expo 2020 Dubai, held for six months from October 2021 to March 2022, also had a positive impact on the property sector.
The performance of the Dubai property market last year was described as “exceptional” by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, as the value of deals reached a record high of Dh528 billion.
The value of transactions was up 76.5 per cent annually in 2022, while the number of transactions, at 122,658, was up 44.7 per cent on the year, a Dubai Media Office statement said last week.
The sector's “exceptional performance” will help achieve Dubai's vision to be “one of the world’s top three cities”, said Sheikh Hamdan.
“The results also support the goal of the Dubai Economic Agenda D33 … to double the size of Dubai's economy by 2033. The sector is a pillar of Dubai's strategy for sustainable development and a vital driver of its 2040 Urban Master Plan.”
Deyaar is majority owned by Dubai Islamic Bank, the UAE’s biggest Sharia-compliant lender.
It developed the Midtown project in Dubai Production City, with an investment of Dh2.6 billion.
Deyaar successfully completed a capital restructuring programme in June by writing off accumulated losses worth Dh1.7 billion from previous years, it said in the bourse statement.
The company also received a payment of Dh200 million after it signed the final settlement agreement in its land dispute with master developer Limitless, it said last month.
In 2019, a UAE court ordered Limitless to pay Dh411.9 million to Deyaar in a dispute related to the purchase of land. The court also ordered Limitless to pay Deyaar's fees, as well as Dh61.1 million in compensation.
In December, Deyaar said it planned to launch three new projects worth Dh300 million as it focuses on expanding its real estate portfolio amid higher demand from buyers.
The projects, comprising about 400 residential units and hotel apartments, will be launched in the Al Furjan area of Dubai, it said.
