Damac chairman says 2016 profit in line with last year

Hussain Sajwani, the chairman of the Dubai developer Damac, said the company’s profit for this year was likely to be in line with the Dh4.5 billion it achieved last year. In an interview with the Arabic newspaper Al Khaleej, Mr Sajwani also said that the company had achieved about Dh7.88bn of sales to date at […]

Hussain Sajwani, the chairman of the Dubai developer Damac, said the company’s profit for this year was likely to be in line with the Dh4.5 billion it achieved last year.

In an interview with the Arabic newspaper Al Khaleej, Mr Sajwani also said that the company had achieved about Dh7.88bn of sales to date at its 55-million-square foot master planned community Akoya Oxygen off Al Qudra Road in Dubai, which contains a Trump International Golf Club and a Tiger Woods-designed course.

He also warned that the lengthy payment plans being offered by many of Damac’s competitors in the city could lead to the type of speculation that had previously led to asset price bubbles in the Dubai market

A spokesman for Damac told The National that there were some organisations that have extended payment plans for 10 to 12 years.

“Our view is that is not necessarily the right thing for the industry,” he said, as it allows people to sign up for new homes without having to put down much up front.

He said its typical payment plans run from 12 months to five years, which was a more sustainable business model.

Damac declared a profit of Dh1.9bn for the first half of this year earlier this month, and the spokesman said that the company expected its full-year pro­fit to be “there or thereabouts” the Dh4.5bn figure achieved last year. He said that second-half profit was likely to be higher because the first six months contained the quieter Ramadan period, and that it has historically experienced stronger sales during the latter part of the year.

mfahy@thenational.ae

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Source: Business

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