Nakheel profit up 36% as Dubai property recovers

Dubai real estate developer Nakheel on Monday posted a first half net profit of $208.8 million, up 36.5 percent compared with the same period of 2011, saying it reflected a recovery in the sector. Net profit came in at 767 million dirhams ($208.8 million dollars, 170.3 million euros) for the six months to June 30 compared with 562 million dirhams in 2011, Nakheel said in a statement. Revenues were 31 billion dirhams in the first half thanks to the sale of many real estate units, amounting to an annual rise of 112 percent, according to the statement. Nakheel underwent a restructuring programme after Dubai's property bubble burst in 2009, concluding the process in August last year. Before the crisis struck, it had borrowed heavily to finance its projects, including iconic palm-shaped man-made islands off the coast of the Gulf emirate. "The financial performance is reflective of the continuous support and commitment made by the government of Dubai and the board of directors of Nakheel to implement a sustainable business strategy for the medium to long term and largely due to better cost and cash management," it said. "The positive results... following from the robust financial results achieved in the year 2011 are reflective of the strong growth in the real estate market in Dubai where Nakheel is a dominant player and will continue to strengthen its position with the passage of time."