Emaar net profit surges 33% to Dh7.8b on continuing Dubai property boom
Revenues from UAE operations alone totals Dh7.1b as new launches drive sales
Dubai: Sustained demand from its home market continues to drive Emaar group’s numbers, with H1-2024 revenues shooting up 17 per cent to Dh14.4 billion and resulting in a net profit before tax of Dh7.8 billion. That represents a stellar 33 per cent spike from a year ago.
Emaar had been hitting the Dubai market with regular launches, doubling down on community themed projects and which are finding favour with a new set of UAE based and overseas buyers. "Our strategic investments in key locations and other major assets have yielded impressive returns," said Mohammed Alabbar, founder.
The group-wide revenue backlog from property sales reached Dh90.1 billion as at end June, up 43 per cent from last year and 15 per cent from March 2024. This backlog represents 'future revenue that will be recognised over the next 4-5 years' and 'indicating sustained profitability'.
Dubai operations
The UAE-focused Emaar Development, meanwhile, achieved a 56 per cent increase in property sales to Dh29.7 billion for the first-half of 2024. The back-to-back launches 'created a strong revenue pipeline for the future'.
Emaar recently acquired a land plot of 60 million square feet near its 'The Oasis' masterplan, with a development value of Dh41 billion. This gives value addition to the 81 million square feet area purchased in December 2023 in the same vicinity.
Emaar launched two signature developments there - The Heights Country Club & Wellness and Grand Polo Club & Resort, spanning 141 million square feet, with a combined development value of Dh96 billion.
In H1-2024, Emaar Development had revenues of Dh7.3 billion and an EBITDA of Dh3.4 billion, 65- and 47 per cent higher than first half of 2023, respectively.
The sales backlog in the UAE totals Dh82.3 billion, 33 per cent higher than in December 2023.
Malls weigh in
Emaar's malls and commercial leasing helped with revenues of Dh2.8 billion and an EBITDA of Dh2.3 billion in H1 2024. The 'retail sales performance of our tenants witnessed growth of over 7 per cent compared to last year," said a statement. It 'prime assets', which include The Dubai Mall, have occupancy of nearly 99 per cent.
In June, Emaar Malls announced a Dh1.5 billion investment to expand The Dubai Mall, introducing 240 new shops. "The expansion is expected to attract more visitors and will feature a variety of new international and local luxury retail and F&B options," said a statement. (Dubai Mall now has a paid parking system done in tandem with Salik.)