Dubai: Damac Properties, the Dubai-listed developer, said on Wednesday that it will not be distributing dividends to its shareholders at the end of this year amid challenges in the property market.

In a statement to the Dubai bourse, Damac said it is facing “low profitability” and a “weak market,” and thus, will not be giving out dividends. The developer did not distribute dividends at the end of 2018 either. It said, however, that the decision for this year’s dividends may be changed as the time of distributing dividends approaches.

“The management will look at the circumstances at that time, and make a recommendation to the board of directors, and the latter will make a recommendation to shareholders,” Damac said.

The statement comes just a week after the chairman of Damac, Hussain Sajwani, discussed supply and demand issues in Dubai. In an op-ed in Gulf News, he said that developers in the emirate must be open to the idea of change when it comes to supply in the real estate market.

Damac earlier reported a 90 per cent plunge in its profits for the first six months of 2019, reaching Dh81.6 million compared to Dh862 million in the same period last year. Profits for the second quarter alone also dove by 87 per cent to Dh50.6 million.

The decline in earnings comes as Dubai’s property market continues to face weakened demand due to slower economic growth, and supply continues to grow. The imbalance has been driving sales and rental prices lower, reports show, and hurting developers and construction companies in the country.