imagesKuwait-based Abyaar Real Estate Development Company (Abyaar), which develops and manages properties in the UAE and in Dubai in particular, recently announced a net profit for the first nine months of 2009 of KD5 million ($17.5 million) and an EPS of 6.90 fils (a subdivision of currency used in many Arab countries, where KD1 roughly equals 1000 fils).  Per its chairman, Hesham Abdul Wahab Al Obeid, the firm reduced financing debt during the period by 30%, down to KD 77 million, compared to KD108 million during the same period of 2008.  Owners’ equity also increased, up to KD146 million.

The strong showing begs the question how quickly Abyaar will return to the debt markets; in October 2008 it postponed a proposed sale of Islamic bonds worth up to $1 billion in order to finance its expansion plans.  Rashed Al-Rashdan, its managing director, said in the summer of 2008 for instance that the developer was looking to expand “aggressively” into other “high growth” markets in the region, including Saudi Arabia and Qatar.  At least the market seems convinced of its future operating and financing revenue stream–earlier in the year the company successfully increased its  capital base from KD 53 million in 2008 to KD 106 million in 2009 through a new share subscription.