November 13, 2019 / 8:15 AM / a month ago

DAMAC's third quarter profit plunges 78%

The corporate logo of DAMAC, written in English and Arabic, is seen in Dubai, United Arab Emirates, December 31, 2018. Picture taken December 31, 2018. REUTERS/ Hamad I Mohammed/File Photo

DUBAI (Reuters) - DAMAC Properties, owner of the only Trump-branded golf club in the Middle East, reported on Wednesday a 78% drop in third quarter profit amid an extended slowdown in Dubai’s property sector.

A supply glut has slowed the market for most of the decade, apart from a brief pickup more than five years ago, sending residential property prices down by at least a quarter since 2014.

DAMAC made 50.9 million dirhams ($13.9 million) in the three months to Sept 30, compared to 230.8 million dirhams a year earlier.

Revenue fell 42% to 895.4 million dirhams.

DAMAC Chairman Hussain Sajwani told Reuters last month that developers should refrain from launching new projects for up to two years to spur a market recovery.

DAMAC shares have fallen by around 45% this year with profits falling in the first three quarters, according to Refinitiv data.

Dubai announced in September the establishment of a planning committee tasked with regulating the sector.

Dubai’s largest listed developer Emaar Properties reported on Sunday a 20% rise in third quarter profit.

($1 = 3.6728 UAE dirham)

Reporting by Alexander Cornwell; Editing by Susan Fenton

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