DUBAI, United Arab Emirates — Dubai’s largest, thoroughly non-public actual estate developer posted on Sunday its initially yearly loss given that turning into a publicly traded enterprise, a worrying sign for the sheikhdom’s now-reeling essential house current market that’s been hit with the fallout from the coronavirus pandemic.
DAMAC Properties, which has small business ties to U.S. President Donald Trump and hosts the Mideast’s only Trump-branded golf course, claimed a loss of 36.8 million dirhams ($10 million) in 2019 off revenues of just about 4.4 billion dirhams ($1.19 billion).
That is as opposed to a 1.15 billion dirham ($313 million) earnings in 2018 off revenues of 6.13 billion dirhams ($1.16 billion). The company turned publicly traded in 2013.
In a assertion posted to the Dubai Financial Industry inventory trade, DAMAC chairman Hussain Sajwani praised Emirati leaders for functioning towards stabilizing the economy.
“Thanks to the reform-oriented management of this country, the market is poised for a prolonged-time period upswing,” Sajwani mentioned.
That optimism might be belied by the economic repercussions of the new pandemic, which has halted world wide travel. Dubai Global Airport, the world’s busiest for international journey, largely has shut down, alongside with several personal organizations.
DAMAC’s 2019 effects did not display the affect of the coronavirus outbreak which commenced in January, even though a note at the close of its 56-webpage money results pointed out it as a “subsequent occasion.” It explained DAMAC “will take vital measures to safeguard” the interests of shareholders, without the need of elaborating.
Dubai has noticed a increase-and-bust genuine estate marketplace since enabling foreigners to invest in residence in 2002. Values have dropped by a third considering that 2014, when Dubai introduced it would host Expo 2020, or world’s good, beginning this October.
Now, apartments, villas and business office areas stand empty, and more properties are due to appear on to the marketplace in the coming years. Dubai’s federal government established up a fee to appear up with approaches of heading off the problem even right before the pandemic struck.
Late Saturday, international ratings agency S&P announced it lowered its score for Damac from B+ to B above the outbreak and the COVID-19 illness it results in. It also decreased its rankings for the Dubai real estate juggernaut Emaar Homes, of which the sheikhdom’s sovereign wealth fund owns about a third.
The scores agency explained it anticipated the drop in residential selling prices in Dubai will be steeper than beforehand expected, with “adverse trends” stretching into 2021.
“The outbreak of COVID-19 is adding to the pressure on Dubai’s currently weak authentic estate market,” S&P mentioned.
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Jon Gambrell, The Associated Press