UAE developer reveals fourth-quarter profit fall

UAE real estate developer RAK Properties has revealed a fourth-quarter profit drop of almost 74 per cent.

The company, which is based in Ras Al Khaimah, revealed a profit of 50.9 million AED (9.65 million GBP) for the final three months of 2008, compared to 194 million AED during the same quarter in 2007.

Full-year profit for the firm fell 23.5 per cent to 379.46 million AED, the company announced, with it also booking a provision for impairment of 58.86 million AED for the year.

It is the latest in a number of UAE property developers to report faltering financial results as the economic downturn begins to have an effect on real estate in the Middle East.

Emaar Properrties, Aldar Properties and Sorouh Real Estate have all reported losses for the fourth quarter of last year.

Last year RAK Properties announced the launch of the Julfar Residence, a 500 million AED, 24-storey tower located on Abu Dhabi's Al Reem island.