Dubai developer Damac Properties reports 20% fall in third-quarter profit

Damac’s third-quarter revenue was up 31 percent to Dh2.291 billion from Dh1.748 billion last year. (Courtesy Damac)
Updated 18 October 2017

Dubai developer Damac Properties reports 20% fall in third-quarter profit

DUBAI: Dubai developer Damac Properties on Wednesday reported a 20.24 percent fall in third-quarter profit, its third consecutive earnings decline, caused by a steep rise in cost of sales.
Profit for the three-month stretch to September was at Dh719.34 million versus Dh901.96 million during year-ago period, while cost of sales rose a hefty 69.87 percent to Dh1.339 billion from Dh788.56 million, according Damac’s unaudited financial report submitted to the Dubai stock exchange.
Revenue was up 31 percent to Dh2.291 billion from Dh1.748 billion last year.
“Dubai’s property market has been steadily solidifying in 2017, with increasing sales transactions and robust fundamentals, and our medium to long term outlook remains positive. We have a strong value proposition and continue to appeal to a broader spectrum of buyers with a range of products at attractive price points,” Hussain Sajwani, Chairman of Damac Properties, said in a statement.
Damac said it had partnered with the Roberto Cavalli Group for the third-quarter launch of the Just Cavalli project to feature the designer’s signature style in villas at Dubai flagship development AKOYA Oxygen.
The company also reported that it delivered a total of 852 units from its international developments, including the two-tower Damac Esclusiva project in Saudi Arabia and the three-tower The Heights project in Jordan, Damac’s first development in the said country.
“Construction continues on circa 6,300 villas at AKOYA Oxygen, and the 18-hole championship golf course continues to take shape,” Sajwani said.
“The community’s amenities, including wellbeing facilities and retail outlets, in addition to hospitality and food and beverage elements, are in various stages of planning and progress.”


Oman’s sultan says government will work to reduce debt

Updated 23 February 2020

Oman’s sultan says government will work to reduce debt

DUBAI: Oman's Sultan Haitham bin Tariq al-Said said on Sunday the government would work to reduce public debt and restructure public institutions and companies to bolster the economy.
Haitham, in his second public speech since assuming power in January, said the government would create a national framework to tackle unemployment while addressing strained public finances.
"We will direct our financial resources in the best way that will guarantee reducing debt and increasing revenues," he said in the televised speech.
"We will also direct all government departments to adopt efficient governance that leads to a balanced, diversified and sustainable economy."
Rated junk by all three major credit rating agencies, Oman's debt to GDP ratio spiked to nearly 60% last year from around 15% in 2015, and could reach 70% by 2022, according to S&P Global Ratings.
The small oil producing country has relied heavily on debt to offset a widening deficit caused by lower crude prices. Also, the late Sultan Qaboos, who ruled Oman for nearly 50 years, held back on austerity measures.
The country has delayed introducing a 5% value added tax from 2019 to 2021, and economic diversification has been slow, with oil and gas accounting for over 70% of government revenues.
Last week, rating agency Fitch said Oman was budgeting for a higher deficit of 8.7% for 2020 despite its expectation of further asset-sale proceeds and some spending cuts.
"We are willing to take the necessary measures to restructure the state's administrative system and its legislation," Haitham said in his first speech since the mourning period for Qaboos ended, without elaborating.
He said there would be a full review of government companies to improve their business performance and competence.
Oman observers have said that if Haitham moves to decentralise power it would signal willingness to improve decision making. Like Qaboos, he holds the positions of finance minister and central bank chairman as well as premier, defence and foreign minister.