UAE’s Aldar Properties plans $750m spend in 2019

An investor monitors a screen displaying stock information at the Abu Dhabi Securities Exchange. Aldar Properties said its profits dropped in the first quarter of 2019. (File/Reuters)
Updated 15 May 2019
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UAE’s Aldar Properties plans $750m spend in 2019

ABU DHABI: Aldar Properties, the largest property developer in Abu Dhabi, plans to spend 2.75 billion dirhams ($749 million) in 2019, its chief financial officer said after the company reported a 17.3 percent drop in first-quarter profit.
The state-linked builder of Abu Dhabi’s Formula One circuit made a net profit attributable to owners of 553 million dirhams in the three months to March 31, it said on Tuesday. That compared with a net profit attributable to owners of 669.5 million dirhams in the same period a year earlier.

 

SICO estimated a first-quarter profit of 546.61 million dirhams for Aldar, while EFG Hermes’ estimate was for 600 million dirhams. The lower net profit was partly dented by impairments and writedowns that almost doubled. Revenue totalled 1.77 billion dirhams in first quarter compared with 1.5 billion dirhams a year earlier. 
Aldar’s spending in 2019 is earmarked for residential and some commercial projects, said Chief Financial Officer Greg Fewer on a media call. The company has spent approximately 550 million dirhams in the first quarter, he said. 
Despite a weak property market in Abu Dhabi, Aldar expects full-year sales of 4 billion dirhams, with first-quarter actual sales totalling 1 billion dirhams. 
“We are keeping our 4 billion dirhams guidance ... reflecting our pipeline of projects, our customers and land bank,” he said. 
The bullish view is also due to the recent freehold law passed by Abu Dhabi allowing foreigners to own land. “It opens a multitude of new buyers and will have a positive impact on sales,” Fewer said.

FASTFACTS

17.3%

Drop in Aldar’s first-quarter profit.


UK core pay growth strongest in nearly 11 years, but jobs growth slows

Data showed the unemployment rate remained at 3.8 percent as expected. (Shutterstock)
Updated 16 July 2019
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UK core pay growth strongest in nearly 11 years, but jobs growth slows

  • Core earnings have increased by 3.6 percent annually, beating the median forecast of 3.5 percent
  • The unemployment rate fell by 51,000 to just under 1.3 million

LONDON: British wages, excluding bonuses, rose at their fastest pace in more than a decade in the three months to May, official data showed, but there were some signs that the labor market might be weakening. Core earnings rose by an annual 3.6 percent, beating the median forecast of 3.5 percent in a Reuters poll of economists. Including bonuses, pay growth also picked up to 3.4 percent from 3.2 percent, stronger than the 3.1 percent forecast in the poll. Britain’s labor market has been a silver lining for the economy since the Brexit vote in June 2016, something many economists attribute to employers preferring to hire workers that they can later lay off over making longer-term commitments to investment. The pick-up in pay has been noted by the Bank of England which says it might need to raise interest rates in response, assuming Britain can avoid a no-deal Brexit. Tuesday’s data showed the unemployment rate remained at 3.8 percent as expected, its joint-lowest since the three months to January 1975. The number of people out of work fell by 51,000 to just under 1.3 million. But the growth in employment slowed to 28,000, the weakest increase since the three months to August last year and vacancies fell to their lowest level in more than a year. Some recent surveys of companies have suggested employers are turning more cautious about hiring as Britain approaches its new Brexit deadline of Oct. 31. Both the contenders to be prime minister say they would leave the EU without a transition deal if necessary. A survey published last week showed that companies were more worried about Brexit than at any time since the decision to leave the European Union and they planned to reduce investment and hiring. “The labor market continues to be strong,” ONS statistician Matt Hughes said. “Regular pay is growing at its fastest rate for nearly 11 years in cash terms and its quickest for over three years after taking account of inflation.” The BoE said in May it expected wage growth of 3 percent at the end of this year.