Two of Dubai’s biggest property developers, Emaar Properties and Nakheel, recorded sharp profit declines today.
Emaar, the company behind Burj Dubai, posted a 74% decline in first-quarter profit as the global economic turmoil hit sales. Net operating profit stood at Dh237 million (US$64.5m) compared with Dh896m in the same period last year. Total revenue for the quarter fell to Dh1.55 billion from Dh2.52bn, a decrease of 39%.
Nakheel, which built The Palm Jumeirah, said full-year profit dropped 90% as the company made 'impairment charges' of Dh4.8bn. Revenue rose to Dh16.4bn from Dh13.8bn. The company was unavailable for further comment last night.