The Dubai Financial Market-listed Deyaar Development Company lost about 216.92 million dirhams (about $ 59 million) in 2020, compared to a net profit of 71.54 million dirhams (about 19.5) Million dollars) in 2019.
According to Arabiya Net, the company said in a statement that the group's revenues amounted to about 413 million dirhams in the fiscal year ending on December 31, 2020, compared to 604 million dirhams in the previous year. .
The company stated, in a separate statement, that its accumulated losses amounted to 1.748 billion dirhams by the end of 2020, equivalent to 30.26% of the capital.
Deyaar Development explained that the main reasons that led to the accumulated losses being attained were the value of allocations for depreciation of assets as a result of the real estate market situation in Dubai, which was registered in 2010. < / p>
and she explained that, in 2018, the company applied International Accounting Standard No. 9, which resulted in allocations for some assets worth 661 million dirhams, and recorded in the opening balance of losses Accumulated as on January 1, 2018.
and the company stated that during 2020, it took allocations and recorded a decrease in the fair value of its real estate assets in addition to its assets in the hospitality sector as a result of the effects of the Corona pandemic on this sector, which affected Directly and indirectly, on all sectors, but most notably the tourism and hospitality sectors.
In a related context, the company said that its board of directors decided to recommend to shareholders at the next general assembly meeting, if necessary, not to proceed with the procedures for reducing the capital, and that after Review and approve the financial statements and losses resulting from the depreciation of assets, mainly due to the Corona pandemic and the current economic situation.
