Last year, Deyaar Development in Dubai posted full-year profits as revenue surged on the back of new project launches amid a continued recovery in the UAE property market.
Net profit for the 12 months to the end of December reached Dh51 million ($14 million), compared to a net loss of around Dh217 million in 2020, the company said in a statement. declaration in the Dubai Financial Market, where its shares are traded.
Revenue for the reporting period increased 22% year-on-year to MAD 505 million. The company’s operating profit more than doubled to Dh63 million at the end of 2021, from around Dh25 million in 2020.
“The year 2021 has seen remarkable growth across various economic sectors in the country…and our results for the year were in line with this growth,” said Saeed Al Qatami, Managing Director of Deyaar.
The real estate market in the United Arab Emirates, the second largest Arab economy, has recovered strongly from the pandemic-induced slowdown amid trade and social reforms and government stimulus measures to support the economy.
The value of real estate transactions in Dubai more than doubled last year and broke a 12-year record for real estate transactions, boosted by demand in the secondary property market as the UAE economy continued to rebound.
Pent-up demand and improving investor confidence also helped boost property sales. New initiatives, such as visas for retirees and the expansion of the 10-year golden visa program, should further support the real estate market, according to industry experts.
Deyaar, which is expanding its portfolio of hotel and recurring revenue-generating properties, has also benefited from a strong recovery in the emirate’s tourism sector.
“The company’s hotel portfolio has also seen exceptional growth in occupancy rates, driven by the lifting of travel restrictions and the full return of tourism activities to the country,” Mr Al Qatami said.
Data released by Dubai’s Department of Economy and Tourism showed the emirate attracted 7.28 million international visitors last year, a year-on-year growth of 32%. In the fourth quarter alone, it received 3.4 million visitors, about 74% of pre-pandemic levels.
Deyaar, majority-owned by the UAE’s largest Shariah-compliant lender, Dubai Islamic Bank, continued to launch new projects in 2021.
The company last year sold all units in its Regalia project, a luxury residential tower in Business Bay, which helped boost its revenue.
Deyaar plans to launch several projects this year at Jumeirah Village Circle, Al Furjan and its main Midtown development in Dubai Production City, Vice President of Sales Nasser Amer said. The National in November.
Deyaar will finance the new projects through a combination of debt and equity, as well as sales proceeds, Amer said at the time.
Updated: February 11, 2022, 10:13 a.m.