Abu Dhabi developer's second quarter profit drops to 1.14bn dirhams

Aldar Properties’ profit fell 80% in the second quarter of this year compared to the same period last year. The giant Abu Dhabi developer made a net profit of 1.14bn dirhams during the first half of 2009, against 2.6bn dirhams a year earlier, according to its half year results announcement today.

Aldar’s developments under construction increased by 44.8% to 33bn dirhams worth during the six month period but the developer made no land sales during the first half of 2009. It said in a statement today that it was in negotiations regarding sales, “but the challenging market conditions have extended the negotiation period." However, Aldar maintains its long term view regarding the Abu Dhabi real estate sector, which is clearly demonstrated by not rushing to complete any sale that undervalues its assets.”

Ahmed Ali Al Sayegh, chairman of the board of directors of Aldar, said: “I would like to applaud the huge effort that has gone into the first half of the year. It will be rewarded in the second half when a number of major milestones will be reached. This will include the completion of the Yas Marina Circuit for the first Formula 1 Etihad Abu Dhabi.”

In May, Aldar Properties put its flagship £13bn Al Raha Beach scheme under review. It admitted it was reviewing several schemes inside the beach development, including the Al Seef waterfront community scheme.