Emaar Properties records 2013 net profit of US$699 million

18th Feb 2014
Emaar Properties records 2013 net profit of US$699 million

Led by Dubai’s robust economic growth and surging investor confidence, Emaar Properties has recorded a full-year 2013 net profit of US$699 million.

This is 21 per cent higher than the 2012 net profit of US$577 million.

Annual revenue for 2013 reached US$ 2.812 billion, 25 per cent increase on 2012 revenues of US$2.243 billion.

This strong performance was underlined by recurring revenues from the company’s shopping malls and retail and hospitality and leisure business units, which together contributed US$1.307 billion in 2013 revenue, or 46 per cent of the total.

This is an increase of 17 per cent in from the revenues from the two businesses during 2012, which accounted for US$1.115 billion.

Emaar’s property business generated total revenue at US$1.505 billion.

Revenues from the company’s global operations in 2013 were US$318 million, representing 11 per cent of the total revenue.

Mohamed Alabbar, chairman, Emaar Properties , said: “One of the defining aspects of Emaar ‘s strong financial performance in 2013 is the positive contribution of our developments to the local economy.

“Downtown Dubai, our flagship mega-development, has energised the property, retail, tourism and hospitality sectors, in addition to creating over 50,000 jobs since its launch.

“Emaar ‘s fundamental financial strength is underscored by our diversified growth model, with the shopping malls and hospitality business contributing significantly to the total revenue.

“With the economy gaining further traction following the successful bid by the UAE to host the World Expo 2020 in Dubai, the city is entering a new phase of dynamic growth.”

Consistent growth in recurring revenues

Emaar ‘s leasing and retail business recorded a total revenue of US$894 million in 2013.

This is 21 per cent higher than the 2012 shopping malls and retail revenue of US$ 740 million.

Driving this growth, The Dubai Mall, Emaar ‘s flagship mall, welcomed over 75 million visitors, a growth of 15 per cent over 2012.

The mall’s 1,200 plus retail outlets recorded a 26 per cent rise in sales during 2013 compared to the previous year.

According to market estimates, more than 50 per cent of all luxury goods sold in Dubai are purchased at the mall.

With a portfolio of 12 hotels and resorts consisting of over 1,900 rooms, Emaar ‘s hospitality and leisure business recorded revenues of US$412 million in 2013.

This is ten per cent higher than the 2012 revenue of US$375 million.

The Address Hotels + Resorts maintained an average occupancy of 84 per cent during 2013, similar to that in 2012.

In 2013, Emaar announced the launch of a diverse portfolio of serviced residences to be managed by its flagship hotel brand, The Address Hotels + Resorts.

Emaar also launched the Vida Hotels and Resorts, its new hospitality concept targeting a new generation of business executives, entrepreneurs and leisure travellers.

Highlighting Emaar ‘s commitment to excellence, Emaar Hospitality Group won the ‘Middle East’s Leading Hospitality Company’ honour and Armani Hotel Dubai clinched the title of ‘Dubai’s Leading Lifestyle Hotel’ at the 2013 2013 World Travel Awards.


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