Emaar Malls Q1 profit inches 2%

By

Benjamin Fitzgerald

Published
May 8, 2017

Emirates-based Emaar Malls said net profit for the first three months of 2017 reached Dh539 million (US$146.75 million), an increase of 2% on last year, as rents remained flat in some of Dubai’s most popular shopping locations.

​The owner of Dubai’s biggest shopping centre, the Dubai Mall, Emaar Malls said that total rental revenues for the period came in at Dh836 million, approximately the same amount for the first quarter last year.

The group, which also operates the Dubai Marina Mall, Souk Al Bahar, Gold & Diamond Park as well as several community shopping centres, said that more than 34 million shoppers had visited Emaar Malls shopping centres in the first three months of the year, up 10% on the same period in 2016.

"We are committed to driving the growth of the malls and retail sector through our assets, and to provide customer-centric experiences by leveraging digital technologies," said Mohamed Alabbar, the chairman of Emaar Malls and Emaar Properties.

"Through our ongoing expansion of our malls and by developing new retail precincts, we are focused on creating long-term value for our stakeholders as well as offering memorable retail and leisure experiences for residents and visitors to the UAE."

Occupancy levels across all Emaar Malls’ locations averaged 96% during the first three months of the year, it said.

The news comes as Chairman Mohammed Alabbar looks to be increasingly focused on e-commerce. Alabbar successfully raised $1 billion to set up regional e-commerce company Noon and also bought into regional logistics firm Aramex. The businessman also purchased a 4% stake in online retailer Yoox Net-a-Porter for 100 million euros in April 2016.

In late March this year, Emaar Malls made an $800 million offer for Middle Eastern online retailer Souq.com, setting up a bidding war with Amazon.com Inc. However, the Dubai mall firm lost out to the American e-commerce giant, who purchased Souq.com for an undisclosed sum.