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Damac reports Dh1.03 billion net loss in 2021

March 31, 2021

Dubai, UAE

Damac Properties, one of the largest private sector real estate developers in the UAE, recorded Dh1.03 billion loss in 2020, a massive jump from Dh37 million net loss recorded in 2019, despite collecting Dh4.7 billion revenue last year compared to Dh4.4 billion in 2019.

Booked sales for the period also nosedived to Dh2.3 billion compared to Dh3.1 billion in 2019. Total assets shrunk to Dh21.1 billion as at December 31, 2020, compared to Dh23.8 billion as of 31 December 2019.

As of 31 December 2020, gross debt stood at Dh3.2 billion and cash and bank balances stood at Dh4.2 billion. Shareholders’ equity stood at Dh13 billion as of 31 December 2020.

“The lasting effects of Covid-19, which has devastated economies across the globe, has understandably impacted the profit margin at Damac. With global lockdowns, travel restrictions and the dip in global travel, Dubai’s property market has been adversely affected,” the developer said in a statement.

Damac delivered around 3,000 units in 2020 in Akoya and Business Bay developments. During the year, Damac also reached the milestone of crossing around 32,000-unit deliveries since inception during 2020.

Hussain Sajwani, Chairman of Damac Properties, said, “[The year] 2020 was indeed a challenging year for the global economy, with the travel and tourism industries particularly hit due to the Covid-19 pandemic. With the smart leadership of the UAE, we are in a far better position for economic recovery, although I still believe it will take 12-24 months for the real estate industry to fully recover.

“I truly thank our leaders for all the support they have given the UAE business community during these trying times and I also want to thank our stakeholders who have help us achieve great things over the years, including our employees, partners, contractors, suppliers and, of course, our customers who have contributed to the success of Damac.”

ENDS