Dubai’s Nakheel sees 22 percent drop in profit

A photo shows a partial aerial view of the man-made Palm Jumeirah island built by Nakheel property giant off the coast of the Gulf emirate of Dubai on December 17, 2009. (AFP)
Updated 27 July 2017
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Dubai’s Nakheel sees 22 percent drop in profit

LONDON: Dubai developer Nakheel reported on Wednesday a 22 percent decline in second quarter net profit, according to Reuters calculations.
The real estate company behind Dubai mega projects such as the Palm Islands, made a profit of Dh1.16 billion ($315.8 million) in the three months to June 30, compared to Dh1.48 billion a year ago, Reuters calculations showed. The company did not provide a quarterly breakdown.
Net profit for the first six months of 2017 was Dh2.64 billion, down from the Dh2.95 billion recorded in the corresponding period of last year, the statement said.
The Dubai government-owned company said it handed over 870 land-form and built-form units to customers in the first half of the year.
In a statement released on Wednesday, Nakheel declined to reveal its total revenues but cited increased revenue from ‘non-development businesses’ — including retail, leasing, hospitality and asset management services.
Annual revenues from these segments trebled from Dh800 million ($218 million) in 2010 to Dh2.5 billion ($680 million) in 2017, the company said.
Amid a subdued Dubai real estate market, Nakheel also said it will continue its strategy of developing its cash-generating assets.
It announced a slew of major projects in the first six months of 2017. These include Deira Mall at Deira Islands, The Palm Gateway at Palm Jumeirah and its first joint hospitality venture, the 800-room RUI resort at Deira Islands.


Potential SABIC deal would affect Saudi Aramco IPO time frame, says CEO Nasser

Updated 20 July 2018
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Potential SABIC deal would affect Saudi Aramco IPO time frame, says CEO Nasser

JEDDAH: A potential deal to buy a stake in petrochemical maker SABIC would affect the time frame of Saudi Aramco's initial public offering (IPO), the oil firm's president and CEO Amin H. Nasser said Friday. 

The IPO of around 5 percent of Aramco, which was initially to take place this year but is now more likely to happen later, would be the world's biggest listing, raising up to $100 billion.

Nasser said that buying a stake in a chemical company like SABIC would positively affect Aramco's revenue, Al Arabiya reported.

“We are still in the very early stages of the discussion to buy a stake in SABIC,” the Aramco CEO said.

“Aramco is ready for the initial offer and the timing remains subject to the state's decision.”

Saudi Aramco said on Thursday it is looking at the possibility of buying a stake in SABIC, a move that could boost the state oil giant’s market valuation ahead of the planned IPO.
Aramco said in a statement that it was in “very early-stage discussions” with the Kingdom’s Public Investment Fund (PIF) to acquire the stake in SABIC via a private transaction. It has no plans to acquire any publicly held shares, it said.
In a separate statement, PIF also said talks about a sale were in early stages. “There is a possibility that no agreement will be reached in relation to this potential transaction,” it said.