DUBAI – Dubai's Emaar Properties said on Sunday's sales and net profit increased by 20 percent compared to the same period last year, despite an economic slowdown that led to a decline in the property market.
The group said sales in the first nine months of this year amounted to 12,624 billion dirhams ($ 3.437 billion) in Dubai, an increase of 25 percent compared to the first nine months of 2018.
Emaar reported a net profit of AED 1,331 billion ($ 362 million), an increase of 20 percent compared to $ 302.4 million a year earlier.
The results contradict the situation in the real estate market, which has fallen in Dubai since 2014, with a sharp fall in oil prices, where property and rental prices have lost almost a third of their value in five years.
It is estimated that the market, which contributes about 7 percent of GDP, may fall further due to the large supply and low oil prices.
Last September, the Emirates authorities intervened to try to stop the downturn in the market.
Dubai's ruler, Sheikh Mohammed bin Rashid Al Maktoum, announced the establishment of a real estate planning committee to balance supply and demand in the property market and ensure that "real estate projects are not duplicated and that large developers do not compete with small private investors."
According to Emaar, the increase in sales and profits is "thanks to the flexible performance in real estate, shopping malls and hospitality".
"In the changing market environment, maintaining high performance is a testament to our outstanding team and their ongoing efforts to increase efficiency, deliver quality products and achieve good financial results," said Mohammed Alabbar, President of Emaar.
Emaar, which has built Burj Dubai, the world's tallest building, has delivered more than 59,000 units in Dubai and international markets since 2002. The company has more than 880,000 square feet of revenue-generating assets and 22 hotels and resorts with 4,965 rooms.