Emaar Properties (Emaar) has released its financial results for the first half of 2023, showcasing consistent performance and operational efficiency across its various businesses.

Emaar’s recorded half-year 2023 revenues of Dhs12.3 billion ($3.3 billion) with net profit growing by 15% compared to same period last year, reaching to Dhs4.9 billion ($1.3 billion). The consistent performance was driven by the growth in tourism, retail sales, and sustained real estate demand in Dubai.

Emaar’s focus on improving profit margins and operational efficiencies resulted in achieving higher EBITDA, which grew by 5% to Dhs6.4 billion ($1.7 billion) compared to H1 2022.

Emaar achieved H1 2023 group property sales of Dhs20.2 billion ($5.5 billion), a 14% YoY growth.

Supported by incremental property sales, the company’s revenue backlog from property sales reached Dhs62.8 billion ($17.1 billion) as of 30th June 2023. This backlog represents future revenue from property sales to be recognised over the next few years.

During the period, Emaar has received credit rating upgrades from major rating agencies S&P (BBB), Moody’s (Baa2) and Fitch (BBB), all with a stable outlook. These upgrades reflect Emaar’s financial performance and improved financial position. Overall, these positive indicators point to a better outlook for Emaar’s future.

Mohamed Alabbar, Founder of Emaar, said: “Emaar’s recent performance reflects our ongoing commitment to sustained profitable growth and in our focus on meeting the needs of our loyal and new customers. Our investments have resulted in strong returns, driving our growth and improving our operations. We are confident in our ability to continue executing our business strategy and meeting customer demand as we move forward in the year.”

Rise in sale: Emaar Development, a majority-owned subsidiary, achieved property sales of Dhs19 billion ($5.2 billion) during the first half of 2023, reflecting a growth of 25% over H1 2022.

UAE build-to-sell operation reported H1 2023 revenue of Dhs6.3 billion ($1.7 billion) and successfully launched 16 new projects in the UAE. In June 2023, Emaar Development also unveiled yet another master-planned development, “The Oasis”, a luxury lifestyle destination.

In H1 2023, Emaar’s shopping mall, retail, and commercial leasing operations reported an 8% growth in revenue compared to the previous year, reaching Dhs3.1 billion ($ 844 million). During the same period, the portfolio yielded an EBITDA of Dhs3.2 billion ($871 million), a 77% increase over H1 2022. This success is credited to robust tenant sales, which rose by approximately 30% compared to H1 2022. Emaar Malls Management’s prime mall assets achieved an impressive occupancy rate of approximately 96%.

Emaar’s international real estate operations reported property sales of Dhs 1.2 billion ($327 million) and revenues totalling Dhs1.3 billion ($354 million) during the first half of 2023. Primarily driven by operations in Egypt and India, revenues from international real estate operations represent 11% of Emaar’s total revenue.

In the first half of 2023, Emaar’s hospitality, leisure, and entertainment divisions generated Dhs1.6 billion ($436 million) in revenue, marking an 18% increase from H1 2022. The growth was driven by the steady recovery in the tourism industry and strong domestic spending. Emaar’s UAE hotels, including those under management, reported an average occupancy rate of 70% in the first half of 2023.

During the period, Emaar also announced the opening of its newest hotel, Address Jabal Omar Makkah, featuring around 1,500 keys and conveniently located at the heart of the holy city.

Emaar’s H1 2023 financial results show an 11% increase in recurring revenue compared to H1 2022.

The company’s recurring revenue-generating portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, collectively generated Dhs4.7 billion ($ 1.3 billion) during H1 2023. This revenue represents 38% of Emaar’s total revenue from these businesses.

Separately, Dubai’s real estate market recorded 551 sales transactions worth Dhs1.8 billion on Thursday, in addition to 92 mortgage deals totalling Dhs384.85 million, and 19 gift deals amounting to Dhs111.2 million, data released by Dubai’s Land Department (DLD) showed.

The sales included 506 villas and apartments worth Dhs1.4 billion, and 45 land plots worth Dhs391.15 million.

The mortgages included 86 villas and apartments worth Dhs325.53 million and 6 land plots valued at Dhs59.32 million, bringing the total realty transactions of today to over Dhs2.2 billion.