Emaar Properties announces profits of $471 million in the first half of 2014, a 41 per cent increase from last year, the company reported on Monday.
Having reported that its revenue figures are slightly lower than they were throughout H1 of 2013, the profits surge has been encouraged by a consolidated malls and retail branch of the company. Along with the hospitality and leisure branch, these subsidiaries contributed to $721 million revenues in H1 of 2014, which is just over half of the company’s overall returns.
As such, it is no coincidence that Emaar is planning to capitalise on its booming malls unit, by undergoing an initial public offering (IPO) in the coming weeks. The deal is set to rake $9 billion for the property giant, which will represent the largest offering on any UAE market since the listing of DP World in late 2007.
Moreover, the deal is set to increase the capitalisation of the Dubai Financial Market by 10 per cent and, in many ways, revitalise a market, which has experienced a rollercoaster year prompted by concerns over regulations and the Arabtec saga. Asked whether they would expect a flurry of foreign interest, a spokesperson for Emaar told AMEInfo that they will only disclose the IPO structure once regulatory issues have been approved.
In other divisions, revenue in the company’s global operations, which contribute to more than 15 per cent of the overall capital, has risen by 43 per cent to $204 million. Boosted by undergoing projects, such as the Emaar Square in Jeddah, by its subsidiary, Emaar Middle East, the company will be keen to continue expanding its influence in the region, but also through initiated projects in Serbia, India, Egypt etc.
All in all, the strong performance so far in 2014 will prove crucial in boosting Emaar through a very challenging, yet exciting, second half of the year.
Tuesday, August 5- 2014 @ 17:14 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.