Dubai Parks reports Dh29m Q2 loss

Dubai - "In a little over 12 months, we will deliver a world-class attraction for residents and tourists in the UAE."

Dubai Parks and Resorts on Wednesday reported a loss of Dh29 million for the second quarter of 2015 and expects to generate Dh2.4 billion revenues in the first year of operations following the opening of the parks to the public by October 2016.
"Our second quarter 2015 financial results are in line with our plans. Our total assets stood at Dh7 billion as at the end of second quarter. The cumulative project expenditure including land acquired amounted to Dh3.8 billion, an increase from Dh3 billion as at the end of the previous quarter," the company said in a statement.
Raed Al Nuami, chief executive officer, Dubai Parks and Resorts, said, "In a little over 12 months, we will deliver a world-class attraction for residents and tourists in the UAE."
"We are confident in our ability to open the doors of Dubai Parks and Resorts to its first visitors in October 2016 to support Dubai's Tourism Vision of attracting 20 million visitors a year by 2020," Al Nuami said. Project infrastructure is 57 per cent complete as at the end of second quarter, up from 43 per cent in the first quarter, ride engineering and manufacturing is progressing as planned with 52 per cent complete and 80 per cent of our procurement has been completed, according to the company. "Projected revenue in the first full year of operation is estimated at Dh2.4 billion with over 5,000 jobs generated across the sector. There were no operating revenues and the loss was Dh29 million for the period ended 30 June 2015. The first revenues are expected towards the end of 2016 following the opening of the parks to the public," Al Nuami said. The construction of the park infrastructure is progressing quickly with the substation and district cooling elements on track for completion before the end of 2015. Also this quarter, we commenced the first phase of transporting 1.2 million shrubs, 9,500 trees and 6,600 palms to our on-site nursery, which will envelop our 100 rides and attractions in a green oasis.
Dubai's Roads & Transport Authority recently awarded an Dh244 million contract to the China State Construction Engineering Corporation Middle East who, over the next 14 months, will build the dedicated access roads from Sheikh Zayed Road to the park.
"We continued to invest in our team this quarter and have completed the hire of the senior management teams of the individual parks. We now have over 160 employees in our corporate head office and over 9,000 workers on site to oversee the realisation of bringing the best entertainment from around the world to Dubai," he said.
- abdulbasit@khaleejtimes.com

• Dubai