Damac announces Dh500m profit for first nine months

Dubai: Property developer Damac have announced profits of Dh500 million for the first nine months of this year.

Hussain Sajwani, chairman of Damac Holding, said that while their projects that have already been launched are still going ahead, plans to expand to new territories, such as India, Pakistan and Morocco, are on hold.

Sajwani said Damac in Dubai has a total borrowing value of about Dh420 million. In all other areas, "zero has been borrowed".

With the market undergoing major changes, Damac recently announced it had let 20 of its staff go from the sales team. "I think the economy will revive by the end of 2009 and the market in 2010 will be very strong. In Dubai, there is still a shortage of units, both office and residential.

This correction will be healthy because a lot of projects are slowing down and new projects are not coming. If demand continues, it will catch up in a strong way in 2010," Sajwani told local media.

With smaller developers leaving the market and demand still high, the market will recover fast, he added.

Damac are not looking into the possibilities of any mergers or partnerships in the future.

The company has Dh700 million in escrow accounts for all their Dubai projects.

On IPO plans, Sajwani said, "It is not the time for an IPO today. When the market comes back, we'll think of it."

Sajwani also said neither an increase or decrease in rent will be seen in Dubai but if the economic situation improves, the second half of 2009 will be robust, seeing an influx of people into the emirate.