Dubai developer Emaar reports profit rise as sales soar

Emaar Properties built the world’s tallest building, the Burj Khalifa, in Dubai. (Reuters)
Updated 05 May 2019

Dubai developer Emaar reports profit rise as sales soar

  • Emaar Properties made 1.742 billion dirhams in the first quarter, compared with 1.625 billion dirhams a year earlier, marking a 7.2 percent rise
  • The results come despite a tough real-estate market in Dubai, where residential prices have been in decline since hitting a high in 2014

LONDON: Emaar Properties, the developer of the world’s tallest tower, on Sunday reported a rise in profits as sales grew by more than 50 percent despite a tough real estate market.

The Dubai-listed company said it made 1.742 billion dirhams ($474 million) in the first quarter, compared with 1.625 billion dirhams a year earlier, marking a 7.2 percent rise.

Revenue rose to 5.894 billion dirhams, compared to 5.59 billion for the first quarter of 2018, while property sales jumped 53 percent to 5.98 billion.

Emaar said sales during the quarter were at “one of the highest” levels in its history. Sales to international customers more than doubled to 2.645 billion dirhams, which Emaar said showed “the significant interest of international investors in Dubai real estate.”

The results come despite a tough real-estate market in Dubai, where residential prices have been in decline since hitting a high in 2014.

“The surge in sale of Emaar’s real estate developments in Dubai to international investors not only highlights Dubai’s position as the region’s leading business center and hub city, but as the one of the most dynamic and growing market economies,” said Mohamed Alabbar, chairman of Emaar Properties.

The Emaar Development arm of the business recorded first-quarter revenue of 3.341 billion dirhams compared to 3.265 billion the year before. The company’s malls division reported a growth of 4 percent in revenue. Emaar Malls earlier this year fully acquired Namshi, a regional fashion e-commerce retailer.


Huawei given 90 days to buy from US suppliers

Trader Tommy Kalikas works on the floor of the New York Stock Exchange, Monday, Aug. 19, 2019. (AP)
Updated 20 August 2019

Huawei given 90 days to buy from US suppliers

  • Shortly after blacklisting the company in May, the Commerce Department initially allowed Huawei to purchase some American-made goods in a move aimed at minimizing disruption for its customers

WASHINGTON: US Commerce Secretary Wilbur Ross said Monday the US government will extend a reprieve given to Huawei Technologies that permits the Chinese firm to buy supplies from US companies so that it can service existing customers, even as nearly 50 of its units were being added to a US economic blacklist.
The “temporary general license,” due to expire on Monday, will be extended for Huawei for 90 days, he told Fox Business Network Monday, confirming an expected decision first reported Friday by Reuters. He also said he was adding 46 Huawei affiliates to the Entity List, raising the total number to more than 100 Huawei entities that are covered by the restrictions.
Ross said the extension was to aid US customers, many of which operate networks in rural America.
“We’re giving them a little more time to wean themselves off,” Ross said.
Shortly after blacklisting the company in May, the Commerce Department initially allowed Huawei to purchase some American-made goods in a move aimed at minimizing disruption for its customers.
The extension, through Nov. 19, renews an agreement continuing the Chinese company’s ability to maintain existing telecommunications networks and provide software updates to Huawei handsets.
Asked what will happen in November to US companies, Ross said: “Everybody has had plenty of notice of it, there have been plenty of discussions with the president.”
When the Commerce Department blocked Huawei from buying US goods earlier this year, it was seen as a major escalation in the Sino-US trade war.
The US government blacklisted Huawei, alleging the Chinese company is involved in activities contrary to national security or foreign policy interests.

BACKGROUND

The US blacklisted Huawei, alleging the Chinese company was involved in activities contrary to national security or foreign policy interests.

As an example, the blacklisting order cited a pending federal criminal case concerning allegations Huawei violated US sanctions against Iran. Huawei has pleaded not guilty in the case.

The order noted that the indictment also accused Huawei of “deceptive and obstructive acts.”
At the same time the US says Huawei’s smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied.
Huawei, the world’s largest telecommunications equipment maker, is still prohibited from buying American parts and components to manufacture new products without additional special licenses.
Many Huawei suppliers have requested the special licenses to sell to the firm. Ross told reporters late last month he had received more than 50 applications, and that he expected to receive more. He said on Monday that there were no “specific licenses being granted for anything.”