Aldar reports record 40% net profit on sales surge

Image credit: Getty Images

Aldar Properties has reported a record surge in net profit for 2023, driven by new development sales and an expanded investment portfolio.

In a statement released on February 9, Aldar announced a 40 per cent increase in net profit to Dhs4.4bn for 2023 compared to the previous year.

Talal AL Dhiyebi, group CEO, added, “Aldar is transforming into a world-class industry heavyweight, operating at a significantly elevated scale.”

“Over the past five years, our business has grown significantly. Development sales in 2023 surged tenfold compared to 2018, the gross asset value of our investment property portfolio grew by more than fifty percent, and net profit more than doubled, reaching Dhs4.4bn,” he added.

The company attributed this growth to its highest-ever quarterly development sales of Dhs8.5bn in Q4, with full-year sales reaching a record Dhs27.9bn.

Furthermore, Aldar’s development revenue backlog doubled to Dhs36.8bn, providing strong income visibility for the next 2-3 years.

Aldar’s upcoming developments

The company launched 14 new projects during the year, successfully entering the Dubai and Ras Al Khaimah markets alongside its dominant position in Abu Dhabi.

Aldar also noted strong demand from end-users and investors, with overseas and resident expat buyers accounting for 66 per cent (Dhs16bn) of UAE sales.

Additionally, Aldar recorded a 40 per cent revenue growth, driven by recent acquisitions, active asset management, and strong operational performance across the business.

Mohamed Khalifa Al Mubarak, chairman of Aldar, highlighted the conducive conditions provided by the UAE’s thriving economy for the real estate market.

Al Mubarak said, “The strength of the UAE economy, driven by a thriving business-friendly environment, continues to provide conducive conditions for the real estate market.”

“Leveraging its unique platform, Aldar accelerated its transformative growth trajectory in 2023 to deliver remarkable earnings growth, with an intensive programme of new development launches and the enhanced performance of its recurring income portfolio.”

“By further capitalising on secular trends and the transition to a net-zero economy, we look forward to continuing to play a central role in the UAE’s dynamic socio-economic development and the growth of its real estate sector in the coming years,” he added.