Diverse businesses drive up Nakheel profits in 2017

dubai - Retail, hospitality and residential leasing add to company's development revenue

Nakheel has announced a net profit of Dh5.67 billion for 2017, up 14 per cent on 2016. This came on the back of its diversified business model in the sectors of retail, hospitality and residential leasing.

The developer of the Palm Jumeirah generated a net profit of Dh1.67 billion in Q4 of 2017, an increase of 58 per cent on the same period in 2016. It handed over 1,439 land and built form units in 2017.

Nakheel chairman Ali Rashid Lootah said: "2017 was another good year for Nakheel. The company met its business and financial targets for the year and continued to support the local economy by awarding construction contracts worth almost Dh8 billion in 2017."

Nakheel has made considerable progress in diversifying its business by creating revenue-generating assets. At the end of 2017, Nakheel had 4.6 million square feet of retail space in operation that led to increased annual revenue from the retail business.

Nakheel's hospitality business also registered an increase in revenue over 2016. Nakheel is further expanding its footprint in this sector, bringing new hotel concepts and new international partners to Dubai.

Nakheel residential leasing business too performed well in 2017. The company plans to increase its number of units for lease in subsequent years.

- deepthi@khaleejtimes.com