Dubai’s Damac Properties is “cautiously optimistic” about the coming year, after posting AED 3 billion ($816.8 million) in revenues for 2021. The property developer’s net loss narrowed to AED 531 million ($144.6 million) compared to AED 646 million ($176 million) in 2020.

Its assets grew by three percent to 22.3 billion in 2021. 

Damac Properties booked sales of AED 7.8 billion in 2021 and delivered 7,000 units last year, taking the total to 39,000 since the company’s inception. 

“The UAE remains one of the safest places in the world and the country’s leaders have invested heavily in ensuring that it is in the best position to succeed economically. Therefore, the company remains cautiously optimistic on its performance in 2022 and will continue to maintain a responsible approach regarding property launches,” Damac said in a statement to Dubai Financial Market.

According to the developer, profit margins were impacted due to the uncertainty caused by COVID-19 and new variants that continued to have ripple effects on the property market.

“DAMAC continues to focus on liquidity and cash management which resulted in gross debt reduction during the year by AED0.5 billion and supported new land acquisitions to build future project pipeline,” the statement said.

The company said the launch of Cavalli Tower, a 70-storey skyscraper close to Dubai’s Media City and Palm Jumeirah, and master community development, DAMAC Lagoons in Dubai, were among its 2021 highlights.

As of 31 December 2021, Damac’s gross debt stood at AED 2.7 billion, compared with AED 3.2 billion in 2020, while cash and bank balances were at AED 4.1 billion as of 31 December 2021.

Shareholders’ equity stood at AED 13.1 billion as of December 2021, the statement concluded.

It was announced last year that Damac chairman and founder Hussain Sajwani was considering taking the company private. Sajwani, who subsequently resigned in order to launch the takeover, expects to complete the buyout by the end of March, Reuters reported.

(Reporting by Imogen Lillywhite; editing by Daniel Luiz)

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