Dubai's Damac sees net profit soar in H1

Dubai developer Damac Properties said on Tuesday that net profit for the first half of 2014 rose by 39% to US $462.9 million, boosted by a big increase in sales of its new projects.

The company said revenues rose 57% to more than $991 million in the first six months of the year, with booked sales reaching US $1682.6 million from US $960 million in the same period last year.

Damac added that total booked sales in its Akoya mega project stood at US $1,443.6 million as of June 30.

Damac also said it delivered a total of 1,634 units in H1 across five projects. Among the key projects delivered by Damac in H1 was Constella, its first officially certified Sharia-compliant hotel apartments, in Jumeirah Village, Dubai

Total assets stood at US $4,288.8 million, representing growth of 41% compared to the end of 2013, the developer said in a statement.

Net profit for the second quarter rose 18% increase in second-quarter profit to US $253 million while revenue rose 37% to US $556 million.

Hussain Sajwani, executive chairman and CEO of Damac, said: "The first half of the year has seen the company deliver another period of growth, building on the strong results we announced for the full year 2013 and reflecting the continued strengthening of the markets in which we operate.

"In our key market of Dubai, in particular, demand for luxury property remains robust, underlining the emirate's position as the region's primary business and tourist destination."

He added: "Our focus on efficiency and cost management during the entire development cycle has once again resulted in the company maintaining a market leading gross profit margin, which stood at 57.4% for the period."

Damac added that construction across its portfolio "remains on target" with its Trump branded golf course at Akoya set to be grassed by early 2015.

Looking ahead, Damac said it expects Dubai's strong economic fundamentals, regional safe-haven status and improving business sentiment to contribute to ongoing growth.

"Customer demand for our luxury product remains high, and we strongly believe that the current real estate market in Dubai remains sustainable, supported by a structural and ongoing supply/demand imbalance for high end property. We have a strong brand across the Middle East and we believe this to be a true differentiator from our competitors," the company statement added.