Emaar gets credit ratings upgrade as it goes for major Dubai land deal

Dubai: The Dubai master-developer Emaar Properties' credit rating has won an upgrade from both S&P Global and Moody's.

The developer is currently in the midst of adding to its land bank in Dubai through a potential multi-billion dirham deal. Last month, Emaar confirmed it is working on closing a Dh2.98 billion deal for land in Ras Al Khor from Amlak Property Investment.

The Ras Al Khor land deal will likely proceed on or before June 30. The expected closing date is July 31.

The ratings upgrade from S&P and Moody's puts 'Emaar’s position as a financially resilient and strategically agile market leader'.

"These upgrades reflect not only our performance, but also the confidence in Dubai’s economy and real estate market," said Mohamed Ali Alabbar, founder of Emaar.

S&P upgraded Emaar's long-term issuer credit rating to BBB+ from BBB, with a stable outlook.

As for Moody’s, the upgrade to the long-term issuer rating was to Baa1 from Baa2, also with a stable outlook.

"These upgrades reflect Emaar’s robust financial fundamentals, consistent performance, and sound strategic direction," said the developer. (The new ratings upgrade also applies to Emaar’s senior unsecured debt.)

As of end March 2025, Emaar had a revenue backlog of about Dh127 billion ($34.6 billion), providing for 'strong revenue and cash flow visibility through 2028'.

"The company’s recurring income portfolio continues to expand," the statement added.

The S&P upgrade was based around by Emaar’s 'record-high backlog' of Dh110 billion ($29.9 billion) as of December 2024, and 'healthy' presales in the UAE of Dh65.4 billion.

Moody’s highlighted the 'significant reduction' in adjusted debt of Emaar from 2020 to March 2025 and the drop in debt-to-equity ratio over the same period.