Dubai developer Damac posts US$10m annual lossBusiness | 11 Feb 2020 5:04 pm
One of Dubai's largest privately-owned developers, Damac Properties, reported today a US$10 million in net loss in 2019, a year after net earnings had reached US$313 million.
Revenue was down by 28 percent from US$1.7 billion in 2018 to just under US$1.2 billion last year.
Damac is known in Dubai for a number of glitzy projects, including its partnership with the Trump Organization to manage and run two golf courses surrounded by upscale villas and apartments.
The business was started by Donald Trump, who earned millions licensing his name to projects well before his election as U.S. president.
Damac's loss comes amid concerns of an oversupply of new properties on the market, which prompted Dubai's leadership last year to announce a new committee to review real estate projects before they come into the pipeline.
The government is seeking to curb the pace of new construction projects as property prices fall and the sheer scale of developments threatens to outstrip demand.
"We have selectively launched fewer projects in softer market conditions to avoid adding new commitments and focus on selling completed and near completion inventory,'' said Chairman of Damac Properties Hussain Sajwani, who is majority owner of the company.
He's repeatedly called for a moratorium on all new home construction for up to two years to stabilize market prices and renew confidence in Dubai's property market.
Dubai's real estate sector is a bellwether for its economy, which is facing a slowdown in growth. Multiple market reports have noted steep job losses over the past year, with companies forced to lower their prices, fire employees and curb new hiring.-AP