Emaar Malls founder Mohamed Alabbar said on Tuesday he remains upbeat about the retail industry in Dubai despite the company registering a huge drop in net profit for the first nine months of the year as coronavirus continues to hit hard.
The developer behind premium shopping malls and retail assets, including The Dubai Mall, revealed a net profit of AED586 million ($160m) for the period through to September 30, compared to AED1.732 billion ($472m) for the corresponding time last year.
Revenues for the company, which is majority-owned by Emaar Properties, stood at AED2.493bn ($679m) for the first nine months of this year, with the industry hit massively by coronavirus lockdowns and curfews, followed by stringent social distancing guidelines during a gradual re-opening by the government aimed at curbing the spread of Covid-19.
This compared to revenues of $929 million (AED 3.14bn) for the same period in 2019.
Alabbar (pictured below), founder of Emaar Properties and Emaar Malls, welcomed the numbers returning to the company’s various venues, with occupancy levels at The Dubai Mall, Dubai Marina Mall, Gold & Diamond Park, Souk Al Bahar and the community retail centres, currently standing at around 91 percent.
He said: “The results reflect Emaar Malls’ ability to thrive during these testing times. We have worked with retailers to make sure the shopping experience is safe and enjoyable, which includes abiding by the measures set out by the Dubai Government. The result is that we see visitors returning to the malls in higher numbers. We have also extended our Rent Relief Policy for all our tenants until the end of the year.
“We remain optimistic about the immediate future of the retail industry in Dubai during the remainder of 2020 and look forward to seeing tourists and visitors slowly return to the high numbers we’re accustomed to. In the long-term, we are confident that 2021 will see us grow our business once again.”
Financials from the company reveal regional e-commerce fashion and lifestyle platform Namshi, which was fully acquired by Emaar Malls in 2019, recorded nine-month revenue at AED933m ($254m), a 35 percent year-on-year increase.
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