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.”


Russian and Chinese investors in talks about Saudi Aramco IPO involvement

Updated 25 min 59 sec ago

Russian and Chinese investors in talks about Saudi Aramco IPO involvement

  • The initial public offering of the world’s biggest oil company is reaching a critical phase

RIYADH: Russian and Chinese investors are keen to get involved in the international element of the forthcoming initial public offering of Saudi Aramco, according to Kirill Dmitriev, the chief executive of the Russian Direct Investment Fund (RDIF).

Dmitriev told Arab News: “I would say that some Russian investors are interested. For the sovereign wealth fund (RDIF) to get invest in the Aramco IPO is still under discussion. We also have our Russia-China Investment Fund, and we have interest from Chinese investors to get involved in the Aramco IPO. We are still in discussion with our Chinese partners, and with our Russian investors.

“We are thinking what would be the different opportunities, given the interests of China and given the interest of some of the Russian investors. We will have to see how some of the details go, and nothing has been finalized, but there is definitely interest from some Russian and Chinese investors,” Dmitriev added.

The IPO of the world’s biggest oil company is reaching a critical phase, with some observers expecting the formal announcement of a listing on Tadawul just days away. Having a foreign sovereign investor, as well as a listing on a foreign stock exchange, could be a part of the later strategy to sell around 5 per cent of the state-owned company to private investors.

Dmitriev was speaking on the sidelines of the Saudi Russia CEO Forum in Riyadh, a meeting of top businessmen for both countries to coincide with the visit of President Putin.