SHUAA Capital said that EMAAR's main concerns going forward will be exposure to the spiraling cost of construction in Dubai and the region, as well as the substantial burden of acquiring prime properties in regional and international markets.
In a brief on the real estate giant, it said H1 05 consolidated results showed a 94% rise in revenues over the comparable period a year earlier. Gross profits growth peaked at 242%, arriving at AED 2.63 bn from AED 771m in H1 04, while net profits registered more than a 385% growth over H1 04 results to AED 2.53 bn. In all, H1 05 displayed the largest rise in earnings of any six-month period during the company's history.
SHUAA Capital's five-year projections return CAGRs of 26.1% and 40.5% in revenues and net profits over the period. SHUAA estimates EBITDA and net profits growth of 190% and 205% in FY 05, reaching AED 4.77 bn and AED 5.14 bn respectively.
