Profit at Damac fell by more than a third in the second quarter of 2016 as the Dubai developer blamed a slow Ramadan for a fall in property sales.
The glitzy developer, known for offering buyers luxury cars and boats as inducements to purchase flats, said that profit for the three months to the end of June 2016 fell to Dh886 million, down 37 per cent compared with the Dh1.4 billion it made during the same period a year earlier.
Revenues for the third quarter fell by a quarter to Dh1.7bn from Dh2.3bn during the same period a year earlier as the company delivered 494 completed homes in the first half of the year in Dubai and Beirut.
Dubai-listed Damac said that it booked property sales worth Dh3.63bn during the period – “marginally below the previous three quarters run rate, due primarily to the full impact of Ramadan in this quarter”.
Profit for the first six months of 2016 was down 36 per cent to Dh1.9bn from the Dh2.6bn the company made a year earlier, while revenue for the half-year was down 42 per cent to Dh3.3bn from Dh4.7bn.
House prices in Dubai have been falling for the past two years as the emirate’s economy has been hit by the falling price of oil and a strong dirham, making it more expensive for some overseas buyers to purchase property.
Last month property broker JLL revised its forecast for a recovery in the Dubai market back by six months to the start of 2017 owing to an anticipated negative impact on the market by Britain’s decision to leave the European Union. Nonetheless, Damac said that it expected to achieve full-year sales of more than Dh7bn as it plans to deliver 2,700 to 3,000 new homes.
“With the first half of 2016 behind us, we are more optimistic today about the business and expect to end 2016 in a more positive position,” said the Damac chairman Hussain Sajwani.
Damac’s second-quarter contrasts with the performance of Dubai’s largest listed developer Emaar Properties which, despite Ramadan taking place during the period reported second-quarter net profit of Dh1.2bn, an 8 per cent increase on a year earlier, while sales of Dubai properties for the half-year were 45 per cent higher than in 2015 at Dh8.85bn.
Damac shares closed down 0.42 per cent at Dh2.38.
lbarnard@thenational.ae
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The Facility’s Versatility
Between the start of the 2020 IPL on September 20, and the end of the Pakistan Super League this coming Thursday, the Zayed Cricket Stadium has had an unprecedented amount of traffic.
Never before has a ground in this country – or perhaps anywhere in the world – had such a volume of major-match cricket.
And yet scoring has remained high, and Abu Dhabi has seen some classic encounters in every format of the game.
October 18, IPL, Kolkata Knight Riders tied with Sunrisers Hyderabad
The two playoff-chasing sides put on 163 apiece, before Kolkata went on to win the Super Over
January 8, ODI, UAE beat Ireland by six wickets
A century by CP Rizwan underpinned one of UAE’s greatest ever wins, as they chased 270 to win with an over to spare
February 6, T10, Northern Warriors beat Delhi Bulls by eight wickets
The final of the T10 was chiefly memorable for a ferocious over of fast bowling from Fidel Edwards to Nicholas Pooran
March 14, Test, Afghanistan beat Zimbabwe by six wickets
Eleven wickets for Rashid Khan, 1,305 runs scored in five days, and a last session finish
June 17, PSL, Islamabad United beat Peshawar Zalmi by 15 runs
Usman Khawaja scored a hundred as Islamabad posted the highest score ever by a Pakistan team in T20 cricket
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
The biog
Hobby: Playing piano and drawing patterns
Best book: Awaken the Giant Within by Tony Robbins
Food of choice: Sushi
Favourite colour: Orange
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Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
Three ways to get a gratitude glow
By committing to at least one of these daily, you can bring more gratitude into your life, says Ong.
- During your morning skincare routine, name five things you are thankful for about yourself.
- As you finish your skincare routine, look yourself in the eye and speak an affirmation, such as: “I am grateful for every part of me, including my ability to take care of my skin.”
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Scoreline:
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Joker: Folie a Deux
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Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
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How will Gen Alpha invest?
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
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- Number of children under five will fall from 681 million in 2017 to 401m in 2100
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A little about CVRL
Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.
One of its main goals is to provide permanent treatment solutions for veterinary related diseases.
The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery.
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Getting there
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Engine: Direct injection 4-cylinder 1.4-litre
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