Big-spending shoppers helped Dubai mega-developer Emaar Properties post stronger financial results for 2011, it has been revealed.
The builder of the Burj Khalifa and The Dubai Mall yesterday revealed its shopping malls and retail business contributed 26 per cent of its revenues last year - accounting for Dhs2.14 billion ($583 million) of the Dhs8.1 billion ($2.2 billion).
The revenues of its retail activities were 13 per cent higher than the $517 million recorded in 2010. The news of the increasing importance of the retail sector to the developer's bottom line came just a day after it announced plans to extend The Dubai Mall by one million square feet.
And Mohamed Alabbar, the chairman of Emaar Properties, revealed the firm wants to stick to the same plan this year. He said: "Our strategy for 2012 is to further increase the share of revenues from global operations and enhance the proportion of profit from recurring revenue streams, including shopping malls and retail, and hospitality and leisure."
The company also unveiled a strong finish to last year - saying its profits for the fourth quarter of 2011 were more than double those recorded in the same three months in 2010, soaring to Dhs716 million ($195 million) from Dhs274 million it made a year earlier.
The firm said that its hospitality and leisure business - which includes its Dubai hotels - contributed Dhs1.22 billion ($332 million) to its revenues last year, up 22 per cent on the Dhs1 billion it recorded in 2010. Hospitality accounted for 15 per cent of its revenues last year - meaning that between them the firms hospitality and retail activities now account for 41 per cent of the revenues at a company once primarily thought of as a residential developer.
Emaar's growing international activities have also brought their own reward - the contribution to its revenues from projects in countries including Saudi Arabia, Pakistan, Egypt and Turkey doubling to Dhs1.81 billion ($493 million).
Alabbar said the firm had seen a "robust financial performance" last year. The results came a day after Abu Dhabi developer Aldar reported an improved financial performance of its own, recording profits of Dhs642.5 million.
© 7Days 2012
