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Reuters
Published
Apr 20, 2016
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Dubai developer Nakheel's Q1 profit up 8 pct

By
Reuters
Published
Apr 20, 2016

Dubai property developer Nakheel reported an 8 percent rise in its first-quarter profit on Wednesday.


Nakheel Mall - Nakheel


Nakheel made a profit of 1.47 billion dirham ($400.26 million) in the three months to March 31, up from 1.35 billion dirhams a year earlier, it said in a statement.

The company did not state its revenue or reveal other financial details but said the profit rise was mainly due to it handing over 536 completed units and its "retail, residential leasing and hospitality businesses all showing a strong performance".

The Dubai real estate market has softened since late 2014 after a three-year boom fed by an influx of cash from politically unstable Arab nations. Residential prices were down 10 percent in the first three months of 2016 compared with the same period last year, consultants JLL said on Tuesday.

Despite this, Dubai developers are pressing ahead with their construction plans. Nakheel is seeking 5 billion dirhams from banks to fund its projects, in its first attempt to raise sizeable debt since it was forced into a $16 billion debt restructuring at the turn of the decade.

$1 = 3.6726 UAE dirham

 

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