UAE Focus

Update

September 2016

Nakheel posts $803m H1 profit

Dubai-based Nakheel made a net profit of Dh2.95 billion ($803 million) for the first six months of 2016, a four per cent increase on the net profit of Dh2.83 billion ($770 million) in the same period in 2015.

Nakheel handed over 1,177 units during the first six months of the year, with its retail, residential leasing and hospitality businesses all performing strongly.

 

RAK Ceramics revenue slips

RaK Ceramics posted a revenue of Dh757 million ($206 million) for the second quarter (Q2) of 2016, decreasing by 5.9 per cent year-on-year, mainly due to a decline in non-core revenues. Net profit decreased by 24.1 per cent year-on-year to Dh65.3 million ($17.2 million) but normalised net profit decreased by 12.6 per cent at Dh83.5 million ($22.7 million) where provisions and impact of strategic decisions were excluded.

 

Arabtec still in the red

Dubai’S Arabtec made a net loss attributable to equity holders in the parent of Dh186.4 million ($50.8 million) in the second quarter of 2016 compared with a loss of Dh718.4 million ($196 million) in the corresponding period of 2015. It was the contractor’s seventh straight quarterly loss.

The company has been struggling with a difficult industry environment as Gulf economies slow and governments restrain spending because of low oil prices.

In June, shareholders agreed to use Dh1 billion ($272 million) of the company’s reserves to wipe out some of its accumulated losses.

 

Aldar Q2 profit rises to $179m

Aldar Properties reported a 9.7 per cent rise in second-quarter net profit as the builder of Abu Dhabi’s Formula One circuit shook off concerns about a softening market by posting higher revenue.

The net profit of Dh657.4 million ($179 million) in the three months to June 30 was the eighth successive quarter of rising earnings. Aldar Properties made Dh599.2 million ($163 million) in the year-earlier period.

 

Damac Properties profit drops

Dubai’s Damac Properties made a second-quarter net profit of Dh886.8 million ($241.4 million), down 37.4 per cent from Dh1.42 billion ($390 million) a year earlier.

Net profit for the first six months stood at Dh1.94 billion ($530 million), a drop of 27 per cent compared to H1 2015. 

Hussain Sajwani, chairman of Damac Properties, said: “The Dubai market remains solid. The levels of interest in our new product launches and existing portfolio are healthy.”

 

Azizi plans new serviced apartments

Dubai-based Azizi Developments plans to build a serviced apartment project in Al Furjan near Jebel Ali.

The Dh350-million ($95.26 million) Roy Mediterranean will have 272 units comprising fully furnished studios and one-bedroom serviced residences. 

The project will have a gym, spa, kids’ play area, garden, swimming pool, cafe and retail outlets,
the developer said.

 

Sharjah opens new road

The Sharjah Roads and Transport Authority (SRTA) has opened a 3-km road built to ease traffic congestion in Industrial Areas 15 and 17, located next to National Paints Bridge.

The dual-lane road, built at a cost of Dh49 million ($13.33 million), is 7.3 m wide. The road opens a new route for commuters heading to Dubai.

The SRTA said the road takes motorists from the area behind the Sharjah English School, located opposite Sharjah University City, and continues up until the Oud Rakan Bridge on Maliha Road. Motorists will then have access to Mohammad Bin Zayed Road.

 

Summertown refurbishes academy

Summertown Interiors has completed a high-specification refurbishment of Etihad Airways’ Training Academy in Abu Dhabi in just 14 weeks.

Key tasks included transforming ‘The Pilot’s Lounge’ to improve the appearance and functionality of the space, as well as modifying and upgrading the training classrooms, administration offices, pilot briefing rooms, the main reception and bathroom areas.

Much detail was given to the auxiliary video system including the integration of custom-built lecterns with projection, audio and lighting control. Additionally, new digital signage was programmed to give live updates for staff and visitors.

Careful planning also went into the 250-sq-m extension of the mezzanine floor to provide additional space for simulator and training equipment. The extension required the erection of a steel structure from the ground floor to the second floor, along with cast in-situ concrete to create the extended floor space.

 

Project activity ‘to recover’

Project activity in the UAE is forecast to recover in 2017 after a difficult 2016.

Meed’s UAE Outlook Report for 2016 says that a recovery in oil prices combined with growing public and private sector activity boosted by intensifying investment ahead of Expo 2020 in Dubai  will see real GDP (gross domestic product) growth rise to between four to five per cent a year from 2017-2020, compared with about 3.1 per cent growth in 2016.  

 

Dubai joins UN energy initiative

Dubai’s Supreme Council of Energy has joined the Building Efficiency Accelerator (BEA) partnership launched by the United Nations (UN), to double the rate of energy efficiency by 2030.

Building efficiency policies can result in 25 to 50 per cent reduction in energy demand from both new and existing buildings, saving money and reducing pollution.

Saeed Mohammed Al Tayer, vice chairman of the Dubai Supreme Council of Energy, said that through the Dubai Clean Energy Strategy 2050, the government was working to diversify Dubai’s energy mix and increase use of clean energy sources with the goal of transforming Dubai into the city with the lowest carbon footprint on Earth.

Dubai is one of 12 new cities to join the BEA programme, making a total of 23 cities. By joining the BEA, Dubai now has access to a global network of 30 businesses, government organisations, and technical experts who specialise in improving building energy efficiency. 

Meanwhile, the Emirates Green Building Council (EmiratesGBC) has also joined hands with the Dubai Supreme Council of Energy for the new initiative, following a new partnership between the World Green Building Council (WorldGBC) and the BEA to work together on energy efficiency.

 

ADFG wins real estate award

Abu Dhabi Financial Group (ADFG) has been named ‘Emerging Markets Real Estate Manager of the Year’ at the Global Investor/ISF Awards 2016 held in London, UK. 

With a portfolio of more than $4 billion in real estate projects, ADFG manages developments across Eastern Europe, the Middle East and the UK. 

ADFG chief executive officer  Jassim Alseddiqi said: “To win such a respected international award, that attracts entries from peers across the world, is a momentous achievement for ADFG. Our portfolio of intercontinental developments is at the core of ADFG’s assets under management and underpins the firm’s continuing growth.”

 

Perkins+Will appoints design director

Global architecture and design firm Perkins+Will has appointed Firas Hnoosh as a design director for its office in Dubai.

In his new role, Hnoosh will oversee all architecture work originating from the Dubai practice, helping to grow its multidisciplinary design portfolio.

Hnoosh has over 17 years of professional design experience, and has held design director roles for the Abu Dhabi practices of two large international architectural firms.

 

Arkan Building records $11m profit

UAE-based Arkan Building Materials has posted revenues of Dh411 million ($111.9 million) and net profit of Dh40 million ($10.9 million) for the first half (H1) of the year, compared with Dh444 million ($120.9 million) and Dh58 million ($15.8 million) respectively for H1 2015.

The company’s operating margin was maintained at 25 per cent despite the seasonality effect. Arkan plans launch a sales office in Dubai shortly, which is expected to have a further impact on its bottom line in the fourth quarter of the year.

 

Warehouses achieve Leed Gold

Emirates Central Cooling Systems Corporation (Empower) has achieved Leadership in Energy and Environmental Design (Leed) Gold certification from the US Green Building Council (USGBC) for its warehouses located in Al Qouz, Dubai, as part of its commitment to enhance sustainability activities.

The warehouses achieved the Leed certification under the ‘Leed for New Construction Rating System’. According to the USGBC, “this certification identifies Empower warehouses as a showcase example in sustainable design and demonstrates the company’s leadership in transforming the building industry.”

 Empower currently provides environmentally responsible district cooling services to large-scale real estate developments across Dubai.

 

Imdaad wins waste contract

Imdaad has signed a two-year contract to manage the waste of Union Coop, Dubai’s consumer cooperative. The deal will deploy Imdaad’s sustainable waste management services across Union Coop’s 12 branches, in addition to staff accommodation.

Union Coop’s outlets are spread over communities in Dubai such as Satwa, Rashidiya, Hamriya, Towar, Mankhool, Jumeirah, Aweer, Wasl, and Umm Suqeim, in addition to branches in Mirdif’s Etihad Mall and Al Barsha’s Barsha Mall. 

 

UAE to build facilities near dams

The UAE plans to build recreational facilities near dams across the country, Infrastructure Development Minister Dr Abdullah bin Mohammed Belhaif Al Nuaimi has said.

The facilities will include green areas and man-made lakes, a Wam report said.

The news came as undersecretary at the Ministry of Infrastructure Development Zahra Al Abboudi and other officials last month inspected the first ‘resting’ facility built at Shawka dam in Ras Al Khaimah.

The facility, which was built in less than a year, is now being thronged by tourists and residents, Wam said.

 

Emaar Properties profit rises

Dubai’s Emaar Properties has reported an eight per cent rise in second-quarter net profit for 2016.

The developer  made a net profit of Dh1.27 billion ($345.8 million) in the three months to June 30. That compares with a profit of Dh1.18 billion ($321.2 million) in the year-earlier period.

Emaar’s quarterly revenue was Dh3.73 billion ($1 billion), up from Dh3.50 billion ($952.7 million) a year earlier.

 

Al Ain Convention Centre expands

Abu Dhabi National Exhibitions Company (Adnec) has commenced the second phase expansion of its Al Ain Convention Centre (AACC).

The Phase Two expansion is in line with Adnec’s strategy to promote and strengthen the high-potential business tourism industry in Al Ain.

The current phase of expansion will see AACC increase in area by eight per cent to 14,000 sq m in total.

The construction, development and refurbishment of all facilities are expected to take an estimated 150 days and the expansion is scheduled to be completed by early 2017.

The expansion will deliver dedicated new facilities for conferences including new meeting halls and seminar rooms. These facilities are set to be inaugurated in February 2017, and will be managed by a qualified team of Emirati national employees.

 

RTA eyes tram line extension

Dubai’s Road and Transport Authority (RTA) is planning to expand the tram service in the city to cover popular tourist destinations in the city, a report said.

The RTA is seeking consultants to undertake a feasibility study for launching new phases of Dubai Tram, the Emirates 24|7 report said quoting sources.

The expansion will take place in two phases. Phase Two will cover destinations such as Burj Al Arab, Madinat Jumeirah and Mall of the Emirates and Phase Three will extend along Jumeirah Beach Road to 2nd December Street.

 

UAE leads GCC in smart buildings

The UAE is leading the GCC initiatives in smart building solutions with more than two-thirds of the 1,236 Leadership in Energy and Environmental Design (Leed)-certified projects, according to a study by technology firm Honeywell International.

‘’It is also the frontrunner in the region in implementing unified building codes for new buildings. Since 2014, the Abu Dhabi International Building Code (ADIBC) standards have become compulsory for all projects in the emirate,’’ the study was quoted as saying by Wam news agency.




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