Dubai Investments' Net Profit Up 26% In Q114


News: UAE-based Dubai Investments' net profit rose 26% year-on-year to AED265mn (USD72.14mn) in Q114, up from AED211mn (USD57.44mn) in the same period of the previous year. The company's consolidated total income reached AED738mn (USD201mn), compared with AED649mn (USD176.67mn) in the same period in 2013, while the total assets amounted to AED13.2bn (USD3.60bn), compared with AED12.5bn (USD3.4bn) in Q113. Net worth grew to AED9.3bn (USD2.53bn) from AED8.7bn (USD2.37bn) in Q113. The annualised return on equity reported for Q114 increased to 11.4% compared with 9.7% in the same period in 2013.

BMI View: Sentiment towards the real estate market across the UAE has been improving significantly over recent quarters, with the consensus being that 2014 will continue to witness a turnaround in a sector previously blighted by oversupply, instability and the hangover of a burst property bubble. Economic activity across the UAE is likely to remain relatively robust, as consumption and investment patterns continue their growth from 2013. This economic growth will strengthen both property fundamentals and capital markets in the UAE, resulting in a more favourable outlook for tenant retentions, rental growth, development activity, financing and asset values.

This article is tagged to:
Related sectors of this article: Real Estate
Geography: United Arab Emirates