Emaar Properties, a leading property developer in the United Arab Emirates, has recorded a growth of 15 pc in its net profit for the first half of 2023 driven by the growth in tourism, retail sales, and sustained real estate demand in its home base, Dubai.

According to a press statement, Emaar’s recorded half-year 2023 revenues of AED 12.3 billion (USD 3.3 billion) with net profit of AED 4.9 billion (USD 1.3 billion). The company says that its focus on improving profit margins and operational efficiencies resulted in achieving higher EBITDA, which grew by 5 pc to AED 6.4 billion compared to H1 2022.

Emaar says it achieved H1 2023 group property sales of AED 20.2 billion, a 14 pc growth over the corresponding period last year. It adds that supported by incremental property sales, the company’s revenue backlog from property sales reached AED 62.8 billion as of June 30, 2023. This backlog represents future revenue from property sales to be recognised over the next few years.

During the period, Emaar has received credit rating upgrades from major rating agencies S&P (BBB), Moody’s (Baa2) and Fitch (BBB), all with a stable outlook. These upgrades reflect Emaar’s financial performance and improved financial position. Overall, these positive indicators point to a better outlook for Emaar’s future.

Mohamed Alabbar

‘‘Emaar’s recent performance reflects our ongoing commitment to sustained profitable growth and in our focus on meeting the needs of our loyal and new customers. Our investments have resulted in strong returns, driving our growth and improving our operations. We are confident in our ability to continue executing our business strategy and meeting customer demand as we move forward in the year,’’ says Mohamed Alabbar, founder and chairman of Emaar Properties.

Detailing its performance across various verticals, Emaar Properties says that Emaar Development, a majority-owned subsidiary, achieved property sales of AED 19 billion during the first half of 2023, reflecting a growth of 25 pc over H1 2022. It adds that the UAE build-to-sell operation reported H1 2023 revenue of AED 6.3 billion and successfully launched 16 new projects in the UAE. In June 2023, Emaar Development also unveiled yet another master-planned development, “The Oasis”, a luxury lifestyle destination.

Robust growth in shopping mall, Retail and Commercial Leasing

In H1 2023, Emaar’s shopping mall, retail, and commercial leasing operations reported an 8 pc growth in revenue compared to the previous year, reaching AED 3.1 billion. Emaar owns shopping malls, notably the Dubai Mall, located in Downtown Dubai district, which is at the heart of several Emaar developments.

The company says during the same period, the portfolio yielded an EBITDA of AED 3.2 billion, a sharp rise of 77 pc over H1 2022. This success is credited to robust tenant sales, which rose by approximately 30 pc compared to H1 2022. The company says that Emaar Malls Management’s prime mall assets achieved an impressive occupancy rate of approximately 96 pc.

In hospitality, leisure and entertainment divisions, led by Emaar hotels, the company saw revenues AED 1.6 billion in revenue, marking an 18 pc increase from H1 2022. The growth was driven by the steady recovery in the tourism industry and strong domestic spending.

Emaar’s UAE hotels, including those under management, reported an average occupancy rate of 70 pc in the first half of 2023. During the period, Emaar also announced the opening of its newest hotel, Address Jabal Omar Makkah, featuring around 1,500 keys and conveniently located at the heart of the holy city in Saudi Arabia.

In other businesses, Emaar’s international real estate operations reported property sales of AED 1.2 billion and revenues totalling AED 1.3 billion during the first half of 2023. Primarily driven by operations in Egypt and India, revenues from international real estate operations represent 11 pc of Emaar’s total revenue.

Emaar says its first half shows 11 pc rise in recurring revenue compared to H1 2022. The company’s recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively generated AED 4.7 billion during H1 2023. This revenue represents 38 pc of Emaar’s total revenue from these businesses, it adds.