Abu Dhabi's Aldar Weighs Opportunities in Saudi Arabia and Egypt

(Bloomberg) -- Aldar Properties PJSC is considering expanding its development and asset management businesses into Saudi Arabia and Egypt.

Aldar sees “interesting opportunities” in Saudi Arabia “with the expansion and investment plans there,” Chief Executive Officer Talal Al Dhiyebi said in an interview with Bloomberg TV on Thursday. “The Egyptian real estate market is another very attractive market that we are also always looking into.”

Abu Dhabi’s largest developer earlier Thursday posted a 7% rise in second-quarter profit to 476 million dirhams ($130 million) as revenue climbed 10% to 1.66 billion dirhams. Profit was 1.2% lower than the average analyst estimate, according to data compiled by Bloomberg.

Al Dhiyebi also said:

• Supply-demand conditions in Abu Dhabi’s property market are “much more balanced” than in other markets because 80% is offplan sales
• Aldar has seen an upswing in demand, especially in the affordable segment
• Retail is going through a “very interesting time” where consumer habits are changing. People are spending less on fashion, more on food and beverage, entertainment
• Landlords are re-positioning a lot of assets. Aldar has about 88%-89% occupancy at Yas Mall and looking at making changes over next the 18 months based on consumer demand
• In hospitality, Aldar has seen about 200% increase in net operating income in past quarter compare with a year earlier

--With assistance from Tracy Alloway.

To contact the reporters on this story: Manus Cranny in London at mcranny@bloomberg.net;Arif Sharif in Dubai at asharif2@bloomberg.net

To contact the editors responsible for this story: Dana El Baltaji at delbaltaji@bloomberg.net, Stefania Bianchi

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