As the foremost publicly traded developer in Dubai, Emaar Properties has unveiled a remarkable 70% year-over-year increase in net profit for the fiscal year 2023.
The eminent real estate giant experienced a 7% and 70% growth, respectively, in 2023 compared to the corresponding period in the previous year. This resulted in revenues of Dh26.7 billion ($7.3 billion) and a net profit of Dh11.6 billion ($3.2 billion).
In a statement released on Thursday, Emaar attributed this performance to the growth in tourism, a sustained upward trend in retail sales, and a consistent rise in real estate demand.
The sales of real estate witnessed a substantial 15% increase, reaching a pinnacle value of Dh40.3 billion ($11 billion). Additionally, Emaar significantly elevated its EBITDA by 63% from 2022 to 2023, reaching Dh16 billion ($4.4 billion).
Mohamed Alabbar, the Founder of Emaar, expressed, “Following a prosperous 2023, our achievements are indeed gratifying. The strategic initiatives undertaken in the past two years and enhancements in consumer confidence and overall business dynamics, especially in the real estate and retail sector, have significantly influenced our company’s operations throughout the previous year.”
Alabbar added, “With these results, we look forward to a positive performance in our shopping centers, hotels, and property sales in 2024. We remain committed to unveiling innovative projects and unparalleled offerings across all our business divisions.”
The company reported that as of December 31, 2023, the group’s revenue backlog from property sales, which increased due to 2023 sales, amounted to Dh71.8 billion ($19.5 billion).
Furthermore, Emaar Development reported Dh11.9 billion ($3.2 billion) in revenue and Dh8 billion (US$ 2.2 billion) in EBITDA in 2023—an 89% increase over 2022. As of December 31, 2023, the revenue backlog from property sales in the United Arab Emirates stood at Dh62.1 billion ($16.9 billion), indicating a growth of approximately 50% year over year.
Breakdown of earnings
Shopping mall, retail, and commercial leasing
In 2023, Emaar’s commercial leasing, retail, and shopping mall businesses generated Dh5.8 billion ($1.6 billion). Except for a Dh700 million ($191 million) gain from the sale of Namshi in Q1 2023, the portfolio’s EBITDA during that time was Dh5 billion ($1.4 billion), a 54% increase over 2022.
Emaar International
In 2023, Emaar’s global real estate division reported Dh2.9 billion ($0.8 billion) in property sales and Dh3.1 billion ($0.9 billion) in revenue. Egypt and India were the primary drivers of international operations’ performance in 2023, with property sales at Emaar’s India operation increasing 4X over the previous year due to new launches.
Hospitality, leisure, and entertainment
The hospitality, leisure, and entertainment sectors of Emaar witnessed a substantial 20% increase in revenue in 2023 compared to 2022, amounting to Dh3.4 billion ($0.9 billion). The main drivers of this growth were strong domestic spending and a steady recovery in the tourism sector.
Publish Feb 09, 2024
Source: https://www.propertynews.ae/uae/emaar-properties-reports-an-increase-in-property-sales-of-15-to-11-billion/
Connect with our Business Setup Experts to know more: [email protected]
+971 529604444 / +971 43614555