Nakheel profit rises 53 per cent to Dh2.83bn in the first half

The Dubai government-owned developer did not give revenue figures for the period, but attributed the rise in profit to the handover of new units across its various communities.

Nakheel reported a 53 per cent increase in annual net profit for the first six months of the year to Dh2.83 billion.

It had made a profit of Dh1.84bn in the first half of last year.

The Dubai government-owned developer did not give revenue figures for the period, but attributed the rise in profit to the handover of new units across its communities.

Using figures previously provided by the company, profit for the second quarter stood at Dh1.48bn, 21 per cent higher than a year earlier. The chairman Ali Rashid Lootah said the company was "well positioned to pursue a strategy of creating more cash-generating assets and strengthening Nakheel's asset base to further boost our business and financial results in the coming years".

Nakheel recently announced extensions to existing projects such as Dragon Mart and Ibn Battuta Mall, along with the Deira Islands project, that could help it grow recurring revenue over the long term.

It is planning a 6.5 million square feet extension to Dragon Mart, which will bring its total built-up area to 11 million sq ft and involve it being rebranded as Dragon City.

Nakheel has said that it is already the biggest Chinese trading hub outside of China, but the extension adds a new showroom-style arena for events and two new residential towers containing 1,120 one and two-bedroom apartments.

Nakheel is aiming to build a stock of retail, hospitality and residential properties that will generate Dh7.5bn of recurring income per year.

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