Practice rakes in more than £27m from Middle East following string of luxury projects
Profit at Zaha Hadid Architects rose by 38% last year with the practice more than doubling its income from the Middle East.
The firm posted turnover of £77.2m in the 12 months to 30 April 2024, 11% more than the £69.4m it reported in the previous year, with its pre-tax profit rising from £658,000 to £907,000.
Its earnings were significantly bolstered by booming workloads in the Middle East, where its revenues increased from just over £12m in 2023 to more than £27m in 2024.
The practice’s major ongoing projects in the region include the USD $1.3bn Al Khuwair masterplan in Muscat, Oman, a 293-home luxury residential scheme in Qatar with a development value of nearly $1bn and a residential scheme called The Alba on Dubai’s Palm Jumeirah.
The Far East remained its biggest market with revenues of £35.6m, although this was down from £42.2m it brought in from the region in 2023.
In the UK, where the practice said it was facing “very challenging” competition for architectural contracts, its revenue remained mostly steady with a slight fall from £1.8m to £1.7m.
Work in Europe, the firm’s third biggest market, also dipped from £11.7m in 2023 to £10.3m in 2024, while in North America it rose from £1.2m to £2.2m.
The practice is still required to pay 6% of its annual net income to a charity set up by its founder Zaha Hadid in order to use the late architect’s name after losing a High Court case seeking to end the licensing agreement.
Since 2018, the agreement has generated £21.4 million for the foundation, which manages Hadid’s estate and legacy.
The practice claimed the royalties imposed an unfair financial burden, limiting its ability to operate competitively, although financial records presented to the court showed its revenues nearly doubled from 2013 to 2023.
The firm is led by Patrik Schumacher and four other directors. It paid no dividends to directors during the year, according to the latest accounts.
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