Dubai property, hospitality and retail giant Emaar saw its earnings jump by 15 percent in the first quarter of the year as property sales took off.
Net profit for the three months to the end of March was AED 1.384bn ($377mn) while revenue for the period was AED 4.072bn, also an increase of 15 percent over Q1 2016 revenue.
Property sales in Dubai amounted to AED 6.049bn during Q1 2017, 44 percent higher than the first three months of 2016 and 115 percent higher than the figures for the final quarter of last year. The group now has a backlog of AED 46.245bn to be recognised as revenue in the next few years.
Shareholders have approved distribution of a cash dividend of AED 1.074bn ($292mn), equivalent to 15 per cent of the share capital, Emaar said in a statement.
Mohamed Alabbar, Chairman of Emaar Properties, said: Along with our core business of creating premium real estate in Dubai and other international markets, our malls, hospitality and leisure businesses have also recorded growth. This is driven by our new customer-oriented digital strategy that helps optimise our resource use and enhance efficiency.
He added: We have seen an increase in property sales in Dubai, and we are on track with our construction milestones. Emaars performance underpins the positive economic environment of Dubai led by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai.
The property business in Dubai was highlighted by new residential launches in Downtown Dubai, Dubai Marina and joint venture projects under Dubai Hills Estate, Dubai Creek Harbour and Emaar South.
Emaar accomplished a key milestone with the completion of the pile foundations for the new global icon The Tower, designed by Santiago Calatrava, in Dubai Creek Harbour. Emaar has also achieved significant construction progress on the projects in Dubai Hills Estate.
New property launches in Q1 include Downtown Views II, located in the Zabeel area of Downtown Dubai, Vida Residences in Dubai Marina, Creek Gate and Harbour Gate in Dubai Creek Harbour and Golf Views apartments and Urbana III stacked townhouses in Emaar South.
Emaar Malls recorded revenue of AED 836mn, similar to Q1 2016 revenue of AED 833mn. Net profit from the malls business during Q1 2017 was AED 539mn, similar to Q1 2016 net profit of AED 529mn and 19 percent higher than Q4 2016 net profit of AED 452mn.
Emaars hospitality, commercial leasing and entertainment businesses reported revenues of AED 756mn during Q1 2017, an increase of 5 percent over the same period last year at AED 722mn.
Two new hotels were launched in Q1 including The Address Boulevard and Rove Healthcare City. A contemporary midscale brand, Rove Hotels are being developed as a joint venture with Meraas Holding with plans to roll out 10 hotels in Dubai by 2020.
Emaar is in the course of expanding its hospitality business with 26 upcoming projects in the UAE, Turkey, Egypt, Saudi Arabia and Bahrain.