Emaar Malls, a unit of Dubai’s biggest listed developer, Emaar Properties, reported a 69 per cent drop in its first-half net profit as revenue fell and expenses rose during the Covid-19 pandemic.
Net profit for the six months ending June 30 slipped to Dh345 million, the company said in a statement to the Dubai Financial Market, where its shares trade. Revenue dropped 26 per cent to Dh1.6 billion, while sales and general administrative costs rose 16 per cent to Dh306m.
“Emaar Malls' results showed strength and resilience in the face of the challenges presented to us by the pandemic,” Mohamed Alabbar, chairman of Emaar and board member of Emaar Malls, said. “Our continuous innovation, diversification of our portfolio and investment in digital to bring our destinations to life in new channels added further strength to our results.”
Namshi, the regional e-commerce platform that was fully acquired by Emaar Malls in 2019, recorded half-year revenue of Dh664m, up 57 per cent on the same period last year. The company attributed the growth to the “higher rate of online shopping, coupled with exponential growth in the Saudi market”.
Occupancy levels within Emaar Malls’ assets such as The Dubai Mall, Dubai Marina Mall, the Gold & Diamond Park, Souk Al Bahar and its community retail centres were consistent at 92 per cent, the company said.
Emaar Malls also implemented a flexible rent relief policy during the reporting period. Relief measures included a "tiered base rent waiver" for tenants, the company said.
Emaar Malls is continuing to redevelop some of its community malls, with work on the Meadows Village mall set to complete later this year. This will add a further 95,000 square foot of space to the centre.
"We are continuing to provide our visitors with the safest mall destination experiences in the world, and by also reducing our operational costs and supporting our tenants, we are positive about future market conditions and look forward to continued progress as tourism is welcomed to the UAE once again", Mr Alabbar added.
Dubai's economy has faced headwinds in the past few months after the government restricted the movement of people to curb the spread of Covid-19.
The emirate, however, has launched several measures to help businesses recover from the slowdown caused by the pandemic, providing Dh6.3bn worth of support measures so far.
The emirate is now witnessing "green shoots" of revival in its tourism and hospitality industry after reopening its doors to international visitors last month, the Department of Tourism and Commerce Marketing (DTCM) said on Monday.
