Nakheel in Q1 2018: $0.42bn of profit and $1.36bn in new contracts signed

Middle Eastern construction giant Nakheel has posted results for the first quarter of 2018, recording a 5% growth in profits to $0.42bn (AED 1.55bn).

The firm also signed new deals amounting to $1.36bn (AED 5bn), largely made up of a massive contract for Deira Mall at Deira Islands, worth $1.14bn (AED 4.2bn).

In terms of project delivery, Nakheel handed over 200 land and built form units to customers, while its retail, hospitality and residential leasing businesses all continued to perform robustly.

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Nakheel Chairman Ali Rashid Lootah said: “It has been an impressive start to 2018, with our Q1 results reflecting our ongoing delivery and diversification as per our business plan, and our key role in enhancing Dubai’s real estate sector – through a growing range of residential, retail and hospitality projects – in line with government goals.

“As ever, we thank our leaders for their continued trust, support and belief in our company.”

Q1 2018 also saw significant construction progress at several Nakheel projects, including The Palm Tower, Nakheel Mall and The Palm Gateway on Palm Jumeirah; Deira Islands Night Souk, Deira Mall and the RIU and Centara resorts at Deira Islands; and Warsan Souk at Warsan Village.

In an exclusive Q&A with Construction Global earlier this year, Lootah revealed that Nakheel had $14bn of projects under way and was awarded construction contracts worth over $2bn in 2017.

Speaking of Dubai specifically, he said: “Dubai has always taken the initiative of leading a change in the region and, in particular the GCC. The smart city initiative is a game changer for Dubai as it will showcase its ability to adapt to new technology and be extremely beneficial for the people of Dubai.

“A number of projects are already underway and most government services are now based on use of technology, reducing the human interface and contributing to increased productivity and efficiency in governance.”