The Dubai developer Deyaar slipped into a net loss of Dh216.9 million for 2020 after taking impairment charges as well as revaluation of its assets.
Dubai , Dubai
17 February 2021, 12:00 AM
28 February 2021, 12:00 AM
Dubai-listed developer Deyaar swung to a loss in 2020 owing to higher impairments and fair value adjustments it had to factor in due to the coronavirus pandemic.
Without these add-ons, Deyaar was profitable at Dh24.5 million, brought on from revenues totaling Dh412.9 million.
These represent a sharp drop from 2019’s net profit of Dh71.5 million and revenues of Dh603.7 million.
Saeed Al Qatami, chief executive of Deyaar, said, "The year 2020 has witnessed big challenges as a result of the pandemic and its impacts on all sectors without exception".
The company's construction on projects continued, according to the scheduled timeline, he said. The company's Bella Rose project in Dubai Science Park was completed ahead of schedule and the handover of the units is underway.
“The biggest challenge we faced was in the hospitality sector; however we trust that the hospitality business pick up and will return to grow again, especially with the efforts made by the government in taking all the precautionary measures while making great progress in the vaccination programme,” he said.
Deyaar joins other Dubai developers to have seen numbers drop as market conditions remain exceptionally tight. Those with hotel-related assets were particularly affected by what COVID-19 brought in its wake.