Emaar Properties, Dubai’s largest and best-known real estate developer, disclosed an impressive 15% increase in its first-half profit. The net profit for the six months ending June 2023 reached Dh4.9 billion or $1.3 billion, as stated in Thursday’s announcement.
Mohamed Alabbar, the founder of Emaar, emphasized, “Emaar’s recent performance reflects our continuing commitment to sustained profitable growth and our focus on meeting the needs of our loyal and new customers.” He added, “We are confident in our ability to continue executing our business strategy and meeting customer demand as we move forward in the year.”
Emaar achieved over Dh20 billion in group property sales during the first half, marking a 14% annual growth. However, revenue for the same period dropped by 10% to Dh12.2 billion, while other income swelled by 89% to Dh919 million.
The company’s revenue backlog from property sales reached around Dh63 billion by June 30. A spokesman for Emaar explained this represented “future revenue from property sales to be recognized over the next few years”
Emaar Development, a majority-owned subsidiary, achieved property sales of Dh19 billion during the first half of the year. This represents a growth of 25% compared to the first half of the previous year. The UAE’s build-to-sell operation reported first-half revenue of Dh6.3 billion and introduced a total of 16 new projects within the UAE.
Emaar’s shopping mall, retail, and commercial leasing operations noted an 8% annual rise in revenue to Dh3.1 billion.
Meanwhile, Emaar’s international real estate operations achieved Dh1.2 billion in property sales, generating an impressive Dh1.3 billion in revenue during the first half. These operations were predominantly driven by the company’s activities in Egypt and India. The revenues from international real estate operations contribute 11% to Emaar’s total revenue.
Emaar’s hospitality, leisure, and entertainment divisions recorded Dh1.6 billion in revenue, an 18% increase over the previous year. This growth is attributed to the strong recovery in the tourism industry along with strong domestic spending.
Emaar’s recurring revenue from malls, hospitality, leisure, entertainment, and commercial leasing experienced an 11% annual increase to Dh4.7 billion during the first half.
About The Author
