REPORT BASED ON PRESS RELEASE: BY EMAAR ON NOV 09, 2023
Emaar’s Record-Breaking Sales and Promising Future Revenue
Emaar Properties PJSC has just released its financial results for the first nine months of 2023, and the numbers are nothing short of impressive. With a focus on operational excellence and sustained growth, Emaar has achieved significant milestones across its diverse portfolio, setting the stage for a prosperous future.
Key Accomplishment Highlights
Emaar reported revenues of AED 18.4 billion (US$ 5.0 billion) and a net profit of AED 8.2 billion (US$ 2.2 billion) for the first nine months of 2023, marking a remarkable 42% increase compared to the same period last year. This exceptional performance is attributed to the surge in tourism, higher retail sales, and increased demand in the real estate sector. The company’s EBITDA also witnessed an impressive 29% growth, reaching AED 10.8 billion (US$ 2.9 billion).
Notably, Emaar’s group property sales for the first nine months of 2023 amounted to AED 31.1 billion (US$ 8.5 billion), with a significant backlog of AED 69.5 billion (US$ 18.9 billion) in property sales revenue, indicating a robust outlook for future revenue recognition.
Mohamed Alabbar, the Founder of Emaar, expressed pride in the company’s achievements, highlighting its dedication to excellence and innovation. He emphasized Emaar’s commitment to delivering value to customers and stakeholders while maintaining a focus on operational efficiencies.
Build-To-Sell Property Development in the UAE
Emaar Development PJSC has maintained strong momentum in property sales in Dubai, particularly with the successful launch of 20 new projects in the UAE. The company achieved sales of AED 28.9 billion (US$ 7.9 billion) in the first nine months of 2023, reflecting a significant 25% growth compared to the previous year.
Driven by sustained property sales, Emaar’s revenue backlog from property sales in the UAE reached AED 59.6 billion (US$ 16.2 billion) as of September 30, 2023, representing a year-over-year growth of over 60%. This backlog is poised to boost future revenues, reaffirming Emaar’s position as a leader in the real estate sector.
Shopping Mall, Retail, and Commercial Leasing
Emaar’s shopping malls, retail, and commercial leasing operations have also witnessed substantial growth, with revenues totaling AED 4.3 billion (US$ 1.2 billion) in the first nine months of 2023. Robust tenant sales, coupled with strategic initiatives such as the launch of Dubai Mall Chinatown, have contributed to this success.
Dubai Mall Chinatown, unveiled in September 2023, offers a unique blend of shopping and cultural experiences, strengthening economic ties between the UAE and China. This new extension reflects Emaar’s commitment to enhancing its retail and leisure offerings, catering to diverse consumer preferences.
Emaar’s International Operations and Recurring Revenue
Emaar’s international real estate operations, particularly in Egypt and India, have contributed to the company’s overall performance. With property sales reaching AED 2.2 billion (US$ 599 million) and revenues totaling AED 2.1 billion (US$ 572 million) in the first nine months of 2023, Emaar continues to expand its global footprint.
Additionally, Emaar’s hospitality, leisure, and entertainment divisions have reported revenues of AED 2.5 billion (US$ 681 million), driven by the recovery in the tourism industry and strong domestic spending.
Recurring revenue from Emaar’s diverse portfolio, including malls, hospitality, leisure, entertainment, and commercial leasing, has witnessed a significant increase of 26% compared to the same period last year. This revenue, totaling AED 6.8 billion (US$ 1.9 billion) during the first nine months of 2023, represents 37% of Emaar’s total revenue.
In conclusion, Emaar’s exceptional financial results underscore its resilience and adaptability in a dynamic market environment. With a strong pipeline of projects and a commitment to delivering value-driven experiences, Emaar is poised for continued success in the years to come.
