Emaar Properties, a prominent property developer based in the United Arab Emirates, has announced a significant milestone in its financial performance, revealing record group property sales for the first half of the fiscal year. This commendable achievement has propelled the company's net profit to rise by an impressive 19% year over year.
The remarkable growth trajectory comes as property sales skyrocketed by 56%, totaling a staggering 31.5 billion Emirati dirhams. This surge has been instrumental in realizing a 17% increase in revenue, which now stands at 14.41 billion dirhams. With additional revenue from other ventures and net finance income, net profit surged to 6.84 billion dirhams, compared to 5.75 billion dirhams from the previous year. Emaar Properties, renowned for its prestigious developments, which include the iconic Burj Khalifa and the highly sought-after Dubai Mall—both of which are significant highlights of the Dubai skyline—reported a substantial backlog of 90.1 billion dirhams as of June 30.
The company expects to convert this backlog into revenue over the next four to five years, indicating a robust pipeline of future projects. Mohamed Alabbar, the founder of Emaar, expressed confidence in the company’s strategic vision, stating, "Our strategic investments in key locations and other major assets have yielded impressive returns.
We are confident in executing our business strategies and proud of our significant contribution to Dubai's economic landscape, reinforcing its global leading position." When analyzed in detail, Emaar’s performance in property development has shown remarkable results. The group’s subsidiary, Emaar Development, recorded a historic high in property sales during the first half, reaching 29.7 billion dirhams.
Furthermore, Emaar International also experienced a substantial growth of 50% in sales. The Hospitality, Leisure, and Entertainment segment, which is another integral arm of the Emaar brand, reported a notable revenue increase of 9%. In addition to these accomplishments, Emaar Malls recently unveiled an ambitious budget of 1.5 billion dirhams earmarked for expanding the Dubai Mall by incorporating an additional 240 retail shops.
This initiative seeks to enhance the shopping experience for the 57 million visitors who flocked to the mall in the first half of 2024, reflecting an 8% yearly increase and significantly contributing to the record-setting tally of 105 million visitors anticipated for the full year of 2023. As the trading session unfolded in Dubai, Emaar Properties emerged as the most active stock by value on the Dubai Financial Market, with Emaar Development trailing closely in fourth place.
Although the shares witnessed a slight dip of nearly 1% during the early afternoon trading hours, the overall market sentiment remains optimistic regarding Emaar’s long-term prospects and continued performance in a thriving real estate environment..