موقع إخباري يهتم بفضائح و انتهاكات دولة الامارات

Collapse in real estate in Dubai and its major companies

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The collapse of the real estate sector in the Emirate of Dubai causes major financial losses to the international companies.

In this regard, Arabtec Holding Company, listed on the Dubai Stock Exchange, announced that it suffered a net loss of 774.5 million dirhams (about 211 million dollars) in 2019, compared to profits of 256.3 million dirhams in 2018.

And on the impact of these losses, Arabtec fell 1.6% in trading on Sunday, knowing that it has fallen by 45% since the beginning of this year.

Arabtec, which participated in the construction of the Louvre Museum in Abu Dhabi, recorded its first annual loss since 2016, according to Refinitiv data.

The company attributed the loss to the basic construction work, noting the slowdown in the real estate sector as it launched a limited number of new projects.

Dubai has suffered from a real estate slowdown for most of the past decade, with the exception of a brief recovery more than six years ago. Also, the development of non-real estate projects in the Emirates has slowed or stopped.

Arabtec cited weak real estate liquidity, settlement and settlement of claims, and losses from investment in an unnamed company, adding that other activities – including industrial and engineering – are still making profits.

The company said in data to the stock exchange that revenue fell 21% to 7.78 billion dirhams, noting the resignation of Chief Financial Officer Adel Al-Wahidi.

She said in a statement that she is currently working with major lenders to align its debt with the needs of her business, while working to rationalize costs by reducing employment.

Official data released by the Dubai Land and Property Department show that real estate deals in the emirate fell 41% on a monthly basis in January.

The total value of Dubai real estate purchase and mortgage deals was 16.7 billion dirhams ($4.55 billion) in January, compared to 28.3 billion dirhams (7.7 billion dollars) in December.

International institutions are unlikely to see the real estate market in Dubai grow soon, despite hosting the World Expo 2020 in October, which organizers expect to see about 11 million visitors.

Standard & Poor’s, a global credit rating agency, said in a report last November that the fair was unlikely to improve the “harsh” conditions in the emirate’s real estate market.