Dubai’s Damac reports first loss in nearly a decade

Dubai’s largest private real estate developer, Damac Properties, on Tuesday announced its first annual loss in nearly a decade as a property downturn grips the Gulf city state.

The emirate, renowned for its skyscrapers like the world’s tallest building Burj Khalifa, has the most diverse economy in the Gulf, but its property sector has been sliding for several years.

The last time Damac, which built the Trump International Golf Club in Dubai, previously posted a loss was in 2010 due to the impact of the global financial crisis.

The company reported a loss of $10 million for 2019 compared with a net profit of $313 million in the previous year, as revenues dropped by 28.2 percent to $1.2 billion, a statement said.

Dubai key real estate sector has been on the decline since 2014 as a result of weaker oil prices and oversupply.

“Cash and liquidity management remains of paramount importance for Damac given the cyclical nature of the industry we operate in,” Hussein Sajwani, the billionaire owner of the company, said.