Dubai’s biggest listed developer, Emaar Properties, reported a 70 per cent increase year-on-year in its net profit for the 2023 financial year.
The real estate behemoth recorded revenues of Dh26.7 billion ($7.3 billion) and net profit of Dh11.6 billion ($ 3.2 billion) in 2023, achieving growth of 7 per cent and 70 per cent, respectively, compared to the same period last year.
“This performance was supported by growth in tourism, a continued upward trend in retail sales, and a consistent increase in real estate demand,” Emaar said in a statement on Thursday.
Property sales increased by 15 per cent, hitting highs of Dh40.3 billion ($11 billion). Emaar also achieved a 63 per cent growth in EBITDA, reaching Dh16 billion ($4.4 billion) during 2023 as compared to 2022.
Mohamed Alabbar, Founder of Emaar, said, “Following a prosperous 2023, our achievements are indeed gratifying. The strategic initiatives undertaken in the past two years and enhancements in consumer confidence and overall business dynamics, especially in the real estate and retail sector, have significantly influenced our company’s operations throughout the previous year.”
Alabbar said, “With these results, we look forward to a positive performance in our shopping centres, hotels, and property sales in 2024. We remain committed to unveiling innovative projects and unparalleled offerings across all our business divisions.”
Enhanced by property sales during 2023, the group's revenue backlog from property sales reached Dh71.8 billion ($19.5 billion) as of December 31, 2023, added the company.
Moreover, in 2023, Emaar Development reported revenue of Dh11.9 billion ($ 3.2 billion) and achieved EBITDA of Dh8 billion (US$ 2.2 billion), marking an 89 per cent growth compared to 2022. Revenue backlog from property sales in the UAE increased to Dh62.1 billion ($16.9 billion) as of December 31 2023, representing a Y-o-Y growth of around 50 per cent.
Breakdown of earnings
Shopping mall, retail, and commercial leasing
Emaar’s shopping malls, retail, and commercial leasing operations recorded revenue of Dh5.8 billion ($ 1.6 billion) in 2023. During the same period, the portfolio achieved an EBITDA of Dh5 billion ($ 1.4 billion), marking an increase of 54 per cent over 2022, excluding Dh700 million ($191 million) gain on sale of Namshi in Q1 2023.
Emaar International
Emaar's international real estate operations recorded property sales of Dh2.9 billion ($ 0.8 billion) in 2023 and recognised revenues totaling Dh3.1 billion ($ 0.9 billion). The performance of international operations in 2023 was primarily driven by Egypt and India. Emaar’s India operation saw an increase of 4X in the property sales compared to last year driven by new launches.
Hospitality, leisure, and entertainment
In 2023, Emaar's hospitality, leisure, and entertainment divisions recorded a growth in revenues of around 20 per cent compared to 2022, reaching Dh3.4 billion ($ 0.9 billion). This growth was driven by a consistent recovery in the tourism industry, coupled with strong domestic spending.
