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Aldar Properties on Sunday reported a net profit of Dh1.93 billion for 2020. Image Credit: Shutterstock

Dubai: Aldar Properties on Sunday reported a 17 per cent rise in revenue for the full-year 2020, boosted by the management of government infrastructure contracts.

Abu Dhabi’s largest real-estate developer posted a revenue of Dh8.39 billion in 2020, compared to Dh7.15 billion a year earlier. Net profit grew marginally to Dh1.93 billion during the same period.

“Abu Dhabi has successfully navigated the considerable challenges of the global pandemic and is now moving into recovery,” said Mohamed Al Mubarak, Chairman of Aldar Properties.

“During this critical period, Aldar has reinforced its position as the trusted partner for public-private collaboration on strategic real estate and infrastructure investment,” he added.

Sales at Aldar Development, which includes three of the company’s businesses, fell 8 per cent year-over-year to Dh3.63 billion. However, revenue surged over 60 per cent to nearly Dh5 billion.

Revenue at Aldar Investment – the company’s core asset management business - dropped 15 per cent year-over-year to Dh3.43 billion. The business’ total net operating income fell 7 per cent to Dh1.58 billion.

“We have adopted a new operating model to propel the company to the next level in terms of scale and breadth of activity and to meet our ambitious sustainability targets,” said Talal Al Dhiyebi, Group CEO of Aldar Properties.

“This will involve a major programme to accelerate the recycling of capital and to invest in expansion,” he added.

Good quarter

Aldar’s revenue surged 19 per cent year-over-year to Dh2.53 billion in the fourth quarter. Meanwhile, the company’s net profit jumped 28 per cent year-over-year to Dh729 million during the same period.

Government projects

Last month, the Abu Dhabi Executive Council approved a framework between Abu Dhabi Government and Aldar Properties for the development of capital projects in the emirate.

The framework includes Aldar taking on the management of Dh30 billion worth of major projects such as Riyadh City, Baniyas North and developments in the Al Ain and Al Dhafra regions. Together the projects will deliver approximately 25,000 homes for UAE Nationals as well as associated infrastructure over the next five years.

In addition, Aldar will provide management oversight of Dh10 billion worth of Musanada’s projects in education, healthcare, infrastructure, social services, and facilities management.