DUBAI // Deyaar Development says its net profits climbed 56 per cent in the third quarter, to Dh311.9 million (US$85m), compared with the same period last year, marking the second straight quarter of profits following a management shake-up in April. The Dubai-based property developer, which has under its portfolio projects in Dubai Marina, Business Bay and Jumeirah Lakes Towers, said the quarterly performance exceeded expectations and underlined the progress made on its Dubai property projects.
Projects currently under development would be completed by 2010, the company said, adding that it was also looking to create additional joint ventures in foreign markets. "These positive results reflect the company's solid growth strategy," said Nasser Bin Hassan al Sheikh, who is the chairman of Deyaar and also the chairman of Amlak Finance, which yesterday announced it was entering merger talks with Tamweel, another Dubai-based mortgage provider.
Third-quarter revenues for Deyaar were Dh1.01 billion, an increase of 23 per cent from the previous quarter, at Dh823.3m, and a jump of 371 per cent from the third quarter of last year. In April, Deyaar replaced two board members in a reorganisation of its senior management after the former chief executive, Zack Shahin, was detained by police and put under investigation by Dubai authorities. Mr Shahin, a citizen of the US, is being investigated by the Dubai Public Prosecution office for financial improprieties, according to Dubai authorities.
He was replaced by Markus Giebel as the new chief executive of Deyaar. Announcing the quarterly results, Mr Giebel said: "Deyaar's strategic move to develop larger, mixed-use communities will provide the company with the required scale to maintain its growth. Deyaar is now sharply focused on delivering the majority of its projects currently under development by 2010. We are also in discussions with some leading developers to establish local partnerships and joint ventures in key international markets, to facilitate our entry into fast-growing real estate markets, within the region and beyond."
These potential partnerships would be included in an international portfolio that already includes three projects in Lebanon. Deyaar has singled out the emerging markets of Saudi Arabia, India, Qatar and Kazakhstan as potential sites for future projects. It also has affiliate companies in the Cayman Islands, Netherlands, Turkey and the UK, while in Sharjah, Deyaar is the developer behind the Dana Towers project.
Before the week-long Eid al Fitr holiday, shares in Deyaar traded at Dh1.61, or 46 per cent off its 52-week high of Dh2.99 a share. Like many property firms, its shares have slumped on concerns the global credit crisis might slow growth in the UAE property sector. igale@thenational.ae