Staff Report
Dubai, UAE: Emaar Properties PJSC reported a 33 percent jump in profit before tax of Dh7.8 billion (US$2.1 billion) on Dh14.4 billion sales revenue that grew 17 percent in the first half of 2024 compared to the same period last year, according to a press statement.
Emaar outperformed its first quarter 2024 group property sales in the second quarter of 2024 resulting in achieving record group property sales in of Dh31.5 billion (US$8.6 billion), a 56 percent growth compared to the first half of 2023. This robust momentum in property sales further expanded Emaar’s revenue backlog from property sales, which reached Dh90.1 billion (US$24.5 billion) as at the end of June 2024, up 43 percent from June 2023 and 15 percent from March 2024. This backlog represents future revenue from property sales that will be recognised over the next 4-5 years, indicating sustained profitability.
“The improved performance was driven by sustained investors’ confidence and robust demand in Dubai’s real estate market, strong project execution capability, as well as continued growth in tourism and retail sales. Emaar’s strategy to improve profit margins and optimise operational efficiencies resulted in Emaar achieving a 24 percent growth in Earnings Before Interest, Tax, Debt and Amortisation (EBITDA), which rose to Dh8 billion (US$2.2 billion) in the first half of 2024,” Emaar Properties said in a statement.
Mohamed Alabbar, Chairman of Emaar Properties, said: “Emaar delivered remarkable results in the first half of the year, reflecting our commitment to long-term success and customer satisfaction. Our strategic investments in key locations and other major assets have yielded impressive returns. With a clear vision and pragmatic approach, we maximise value for our stakeholders. We are confident in executing our business strategies and proud of our significant contribution to Dubai’s economic landscape and reinforcing its global leading position.”
Emaar Development PJSC, a majority-owned subsidiary, successfully launched 25 projects across various masterplans and achieved the highest-ever property sales of Dh29.7 billion (US$8.1 billion) during the first half of 2024, reflecting a growth of 56 percent growth over the corresponding period the previous year.
Emaar Development continue to demonstrate its strong financial performance in Q2 2024 which resulted in revenues reaching Dh7.3 billion (US$2 billion) and recorded EBITDA of Dh3.4 billion (US$925 million) in the first half of 2024, showcasing remarkable growth of 65 percent and 47 percent respectively over the first half of 2023. The consolidated revenue of Emaar Properties from its property development business in the UAE during the first half of 2024 reached Dh9 billion (US$2.5 billion), including Dubai Creek Harbour.
In the first half of 2024, Emaar unveiled two expansive luxury living masterplans: The Heights Country Club & Wellness and Grand Polo Club & Resort. Together, these projects span over 140 million square feet and have a combined value of Dh96 billion (US$26 billion). The developments align with Dubai’s vision to enhance quality of life and promote well-being across the emirate. Additionally, they are expected to elevate Emaar’s sales and profitability in the coming years by offering more diverse options for luxury living.
With a continued uptrend in real estate sales, the backlog of Emaar from property sales in the UAE has reached Dh82.3 billion (US$22.4 billion), 33 percent higher than December 2023, which will be recognised as revenue in the coming years.
Malls and commercial leasing operations of Emaar reported revenue of Dh2.8 billion (US$760 million) and achieved an EBITDA of Dh2.3 billion (US$626 million) in the first half of 2024. During the first half of 2024, retail sales performance of our tenants has also witnessed growth of over 7 percent compared to the same period last year. Emaar Malls prime assets boast occupancy of nearly 99 percent as of 30 June 2024.
In June 2024, Emaar Malls announced Dh1.5 billion (US$408 million) investment to expand 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. Additionally, Dubai Mall, in collaboration with Salik, has introduced a paid parking system designed to enhance the guest experience.
Dubai Mall achieved a milestone in 2023, becoming the most visited place on Earth with 105 million visitors and recording very strong retail sales. The momentum continued into the first half of 2024, with the mall receiving a record 57 million visitors, marking an 8 percent increase from the same period last year.
Emaar International
During the first half of 2024, Emaar’s international real estate operations reported property sales of Dh1.8 billion (US$490 million), which grew by 50 percent compared to the first half of 2023. Driven by operations in Egypt and India, international real estate operations recorded a revenue of Dh800 million (US$220 million), which represents 6 percent of Emaar’s total revenue.
In the first half of 2024, Emaar’s hospitality, leisure, and entertainment divisions generated Dh1.8 billion (US$490 million) in revenue, marking a 9 percent increase from the first half of 2023. The performance was driven by the steady growth in the tourism industry and strong domestic spending. Emaar’s UAE hotels, including those under management, reported an average occupancy of 78 per cent in the first half of 2024. During the period, Emaar also expanded its hotel portfolio by adding 4 new hotels featuring around 500 keys.
Emaar’s recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively generated revenue Dh4.6 billion (US$1.3 billion) during the first half of 2024. This revenue represents 32 percent of Emaar’s total revenue.
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Also Read: Emaar Development sees 65% Y-O-Y revenue growth in H1 2024
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