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Markets News

Dubai's DAMAC loses $148.3 mln in third quarter

DUBAI, Nov 12 (Reuters) - Dubai developer DAMAC Properties on Thursday reported a 544.6 million dirham ($148.3 million) third-quarter loss, warning a recovery from the coronavirus crisis was possibly still some time away.

The pandemic is adding pressure to Dubai’s already weakened property market that for years has seen supply outstrip demand for new houses and apartments.

While revenue climbed 43% to 1.3 billion dirhams in the July-September period, the owner of the only Trump-branded golf course in the Middle East swung to a quarterly loss from a 60 million dirham profit in the same period a year ago.

It was the company’s fourth consecutive quarterly loss, according to Refinitiv data.

“While many analysts are forecasting a U-shaped recovery, we believe it may be some time before we see an upward recovery,” Chairman Hussain Sajwani said in a bourse statement.

He said DAMAC was optimistic Dubai’s hosting of the postponed Expo 2020, a major a business and cultural event, next year would lead to an increase in real estate sales and transactions, offsetting the impact of the current crisis.

Sajwani had previously warned of tough market conditions for up to the next two years due to the pandemic.

DAMAC has reported losses of 931.3 million dirhams ($253.57 million) for the first nine months of the year. ($1 = 3.6728 UAE dirham) (Writing by Alexander Cornwell; Editing by Ramakrishnan M.)

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