Deyaar, a 100% subsidiary of Dubai Islamic Bank and the region’s fastest growing real estate company, today announced exceptional financial results for 2006 with net profit rising 192% to AED 412 million as compared to AED 142 million in the previous year.
The rise in net profit was led by a phenomenal growth in sales which stood at AED 3.2 billion in 2006, from AED 1.7 billion last year. During 2006, Deyaar’s asset base increased to AED 3 billion from AED 1 billion in the previous year. Its year-on-year Return on Capital rose to 41% in 2006 from 28% in 2005.
The year also marked the highest number of projects launched by Deyaar and a significant expansion in its international operations. The record performance in 2006 was supplemented by a slew of strategic initiatives aimed at accelerating Deyaar’s growth both at home and in key overseas markets. As a result, Deyaar today is the single largest real estate developer in Dubai’s prime Business Bay area.
Commenting on the stunning performance, Dr. Mohammed Khalfan Bin Kharbash, Chairman of Deyaar, and UAE Minister of State for Finance and Industry, said, “Deyaar, today stands at the dawn of an exciting future. The past three years have seen consistent growth, driven by Deyaar’s distintive approach, both in strategic and tactical terms. As a result, profits rose from AED 5 million in 2003 to AED 412 million in 2006 and assets grew from AED 243 million to AED 3 billion. Today, Deyaar has the single largest portfolio under property management in the country.”
“The 2006 financial performance has set the pace for Deyaar’s fast track growth, shaping it into a formidable force to reckon with in the regional real estate landscape. Deyaar’s active international foray will not only energize this growth but also mirror the stunning success of Dubai in global markets,” Dr. Kharbash added.
Dr. Kharbash said that Deyaar has scaled up its land bank substantially with acquisitions worth AED 1.7 billion in 2006 in the UAE, the balance being acquired in overseas markets. Acquisitions in the UAE include land in Jebel Ali Downtown, Silicon Oasis Valley and Business Bay.
Elaborating on Deyaar’s performance, Zack Shahin, Chief Executive Officer, Deyaar, said, “The 2006 results illustrate Deyaar’s organizational and financial management capabilities which have yielded superior returns for investors. Over the years, Deyaar’s cost to income ratio has remained consistently lower than the industry average, while its Return on Equity is among the highest in the real estate sector.”
“In 2007, Deyaar will strengthen its well-balanced and diversified portfolio by entering lucrative international markets. We have identified Saudi Arabia, India, Turkey and Kazakhstan as potential markets for investment. In fact, Deyaar is the first GCC company to invest in Kazakhstan. In Saudi Arabia and India, our investment plans are in an advanced stage,” Shahin added.
“To date, Deyaar has launched 17 towers, the premium projects among these were announced in 2006. The superb growth in 2006 profits was led by higher sales of properties and a significant increase in its maketing network. Deyaar has recently opened an office in London, which will enable it to offer greater service to existing clientele as also enhance its customer base. As `a one-stop real estate solutions’ provider, Deyaar is poised to expand its presence significantly across every sphere of the real estate business in 2007, “ stated Zack Shahin.
Deyaar’s high-value, premium projects launched in 2006 include the Citadel tower, Churchill – Executive & Residency and Burlington, all located on Business Bay. The company is also developing projects in Sharjah, Lebanon and Turkey.
In Lebanon, Deyaar has developed Nacim Baabdet, 16 exclusive villas built to European standards and Saifi Village II, comprising luxury apartments. In Turkey, Deyaar is developing 110 exquisite villas in the heart of Istanbul. These will be delivered in April 2007.
Deyaar’s net profit has steadily risen from AED 5 million in 2003 to AED 75 million in 2004, AED 142 million in 2005 and AED 412 million in 2006.
