Dubai's Union Properties said on Sunday it expects to make a profit in the first quarter of 2009 mainly on gains from rental properties and expects 2009 profit to exceed that of last year.

Chief Executive Simon Azzam also said that a planned Formula One theme park in Dubai would not go ahead unless the developer received financial support from the government or was able to go ahead with a planned bond issue.

Last week, Union Properties said it was suspending construction of the theme park.

Azzam said full-year net profit would rise as the developer hands over properties sold in previous years and books remaining revenues from those sales.

'2009 will be stronger than 2008 in terms of net profit,' Azzam told Reuters in a telephone interview.

'In 2009, we will hand over the majority of our properties. That is when we will start recognizing the profit.'

The developer made a fourth-quarter loss of 37.6 million dirham ($10.24 million) after booking a 500 million dirham provision related 'primarily' due to its largest contracting unit, Thermo, he said.

Source: Trade Arabia News