Dubai-based real estate developer, Nakheel, announced its profit numbers for the first half of 2017, showing that the company earned a profit of AED2.64bn.
This is a slightly reduced figure comparative to the profits earned in the same period in 2016, which was AED2.95bn.
Despite what appears to be a cut in profit earnings, the company is extremely confident of achieving their end-of-year financial result for 2017.
Nakheel has chosen not to give their attention solely to development revenues and strive to increase non-development revenues in 2017, said a company statement. Between January 1 and June 30, 2017, Nakheel sold off approximately 870 land form and built form units to customers and revenue from non-development business such as retail, hospitality, leasing, and asset management services experienced a boost.
Annual revenues from these segments have more than trebled from AED800mn in 2010 to AED2.5bn in 2017. The surge in non-development revenues has also resulted in a significant increase in the asset values of the company, a recent report showed.
The report also said: Since April 2017, Nakheel has released a construction tender for its first hospitality joint venture the AED670mn, 800-room RUI resort at Deira Islands. The company has also broken ground on new hotels at Dragon City and Ibn Battuta Mall which have a combined project value of AED416mn. Nakheel is continuing its strategy of developing its cash-generating assets, and announced construction contracts worth more than AED11bn in the first six months of 2017. These include an AED4.2bn contract for Deira Mall at Deira Islands and a contract for AED1.5bn for The Palm Gateway at Palm Jumeirah.