Developer Emaar Properties reported on Sunday a nearly 58 per cent drop in net profit to Dh2.6 billion in 2020 as against a profit of Dh6.2 billion in 2019, and said it saw “a world of opportunities” in 2021.
The developer of Burj Khalifa, the world’s tallest structure, said in a statement that its revenues plunged 20 per cent in 2020 to Dh19.71 billion from Dh24.59 billion a year earlier.
Emaar’s overall property sales during 2020 stood at Dh10.9 billion, of which Dh6.3 billion was recorded in the UAE. “The performance shows sustained interest from investors, both domestic and foreign,” it said.
The master developer’s sales backlog stood at Dh36.7 billion, of which Dh24.7 billion comprises of the backlog in the UAE, which would be recognised as revenue in the coming years.
Mohamed Alabbar, the founder of Emaar, said the performance in 2020 was a direct result of the company’s ability to move quickly, adapt to new business conditions and utilise its existing resources to access new opportunities. “We continue to embrace technology to help grow our business, while at the same time closely adhere to the cost discipline that helps us achieve better results in each quarter.”
“Looking ahead to 2021, we see a world of opportunities — both traditional and tech-driven — that will help us grow in ways and in markets that didn’t exist five or ten years ago,” Alabbar said.
Emaar Development, Emaar’s build-to-sell real estate business in the UAE, reported a net profit of Dh1.7 billion as revenue stood at Dh9.8 billion.
The developer said its delivery track record as of December 2020 includes more than 47,000 residential units in Dubai and, including other international markets. Emaar has delivered over 72,100 residential units. Meanwhile, over 26,000 residences are currently being developed in the UAE, alongside 12,000 units across international markets.
“Despite the challenges of the pandemic, we remained focused on progressing at great speed with all of our projects during 2020. The progress underlines Emaar Development’s commitment to delivering the hi,” said Alabbar.
“Our proven agility allowed us to achieve robust results in the second half of the year. We expect this vigorous trend to continue in the year ahead, supported by our best-in-class projects,” he added.
On the other hand, the group’s international property development arm recorded a 10 per cent increase in revenue to Dh4.8 billion for 2020 compared to 2019.
The international development business contributed 24 per cent to Emaar’s total revenue and results were strengthened by continued successful operations in Egypt and Pakistan.