Dubai's DAMAC loses $84.5mln in Q2, warns of difficult years ahead

DAMAC is focused on selling completed and near-completed developments and is not planning any new launches, Sajwani said

  
DAMAC Properties is a property development company, based in Dubai. One of the largest real estate companies in the Middle East and the Arab world.

DAMAC Properties is a property development company, based in Dubai. One of the largest real estate companies in the Middle East and the Arab world.

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DUBAI  - Dubai developer DAMAC Properties on Thursday warned it saw a difficult market for up to the next two years due to the COVID-19 pandemic, as it reported a second-quarter loss of 280 million dirhams ($76.2 million).

While revenue increased 18% to 1.1 billion dirhams, the owner of the only Trump-branded golf club in the Middle East swung to a quarterly loss from a 50.5 million dirham profit in the same period a year ago.

It was the company's third consecutive quarterly loss, according to Refinitiv data.

Chairman Hussies Sajwani said the pandemic has negatively impacted sales and business activity and that the company saw difficult conditions over the next 18-24 months, though it was optimistic next year's Dubai EXPO would generate some demand.

The pandemic has exacerbated a real estate slowdown in the Middle East business hub. 

DAMAC is focused on selling completed and near-completed developments and is not planning any new launches, Sajwani said.

($1 = 3.6728 UAE dirham)

(Reporting by Alexander Cornwell; editing by Jan Harvey) ((Alexander.Cornwell@thomsonreuters.com;))

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