First Dubai turns from loss to profitability
First Dubai Company, one of Al Mazaya Holding Company’s affiliates, has announced its financial results for the first nine months of 2013, shortly after a meeting of its Board of Directors – chaired by Abdulaziz Loughani, Chairman of the Board – on Thursday, October 24.
During the meeting, Ibrahim Al Saqabi, the Vice Chairman of the Board of Directors of First Dubai Company for Real Estate Development, said that, by the Grace of Allah, the company was able to shift from loss to profitability by virtue of the strenuous efforts of its management during the past few months. This yielded operating revenues that climbed by more than 124% year-on-year, distributed over revenues resulting from the sale of properties and other rental revenues from income-generating projects.
Commenting on the company’s financial results during the first nine months of 2013, Al Saqabi said that First Dubai managed to generate revenues of Dhs56.9m, up from Dhs25.6m over the first nine months of 2012, while the company’s net profits amounted to Dhs25.8m, compared to a loss of up to Dhs11.6m in the same period last year. The total other comprehensive income of the company during the first nine months of 2013 was Dhs34.9m, compared to a loss of up to Dhs5.1m in the same period last year.
Al Saqabi added that the positive financial results of the company are attributable to its success in the completion, delivery and sale of a large number of the real estate units in Dubai – adding more than Dhs42.7m – as well as high rates in the income-generating projects on the lines of the Sky Gardens draft in the Dubai International Financial Centre – yielding period rental rates up 83%, exceeding Dhs13m.
Al Saqabi also confirmed that the company holds “tremendous” assets of Dhs855.7m, compared to liabilities of Dhs155.1m, after it succeeded in reducing its financing expenses and turned short-term commitments to long-term commitments, as is compatible with Islamic Law. Additionally, the company had succeeded in earlier years to hold considerable allocations exceeding Dhs517m, which had a great impact in ridding the budget of any financial implications.
He said that First Dubai is moving steadily forward in its preparation of a firm work plan to set up new projects and make feasible investments in light of financial stability and real estate recovery. These include the residential and commercial land draft in “Shams Abu Dhabi”, located in Al Reem Island, which the company is studying the possibility of redeveloping with other investors. The company is also currently working on the development of middle-housing residential vouchers in the “Q-point” Project, within the Liwan Residential System in the Emirate of Dubai.
Finally, Al Saqabi said that First Dubai – 91 % owned by Al Mazaya Holding Company – is considered one of the most successful subsidiaries of its parent company. Al Mazaya is keen to ensure First Dubai’s success and establish its position among the leading real estate corporations in the Arab and Gulf regions, especially after it was able to assume a firm status among the few companies that managed to overcome the consequences of the recent global financial crisis.