Emaar FY2023 profit rises 70%, property sales reach $11bn

Emaar Properties capped off a stellar 2023 with robust sales growth, a significant jump in profitability, and impressive progress in its recurring revenue segments.

The Dubai-based developer reported a 7 per cent increase in revenues to Dhs26.7bn ($7.3bn) and a staggering 70 per cent surge in net profit to Dhs11.6bn ($3.2bn) compared to 2022.

Four key drivers of growth for Emaar

The property sales boom: Emaar achieved group property sales of Dhs40.3bn ($11bn), reflecting a 15 per cent year-over-year growth. This strong performance was supported by 27 new project launches across the UAE, solidifying their position as a leading developer.

Profitability on the Rise: EBITDA surged 63 per cent to Dhs16bn ($4.4bn), highlighting operational efficiency and improved margins.

Recurring revenue strength: Revenues from malls, hospitality, leisure, and entertainment businesses grew 26 per cent to Dhs9.2bn ($2.5bn), showcasing the resilience and potential of these diversified segments. This now represents over 34 per cent of Emaar’s total revenue.

International expansion: While UAE operations remain dominant, Emaar made notable strides internationally, with India recording an increase of four times in property sales and Egypt contributing significantly to their global footprint.

Highlights by division

UAE build-to-sell: With the successful launch of 27 new projects across all master plans in the UAE, Emaar Development achieved property sales of Dhs37.4bn ($10.2bn), reflecting a growth of over 21 per cent compared to 2022.

In 2023, Emaar Development reported revenue of Dhs11.9bn ($3.2bn) and achieved EBITDA of Dhs8bn ($2.2bn), marking an 89 per cent growth compared to 2022.

Emaar Properties recorded a total revenue of Dhs4.4bn ($3.9bn) from its property development business in UAE (including Dubai Creek Harbour).

Revenue backlog from property sales in the UAE increased to Dhs62.1bn ($16.9bn) as of December 31, 2023, representing a year-on-year growth of around 50 per cent.

Shopping malls and retail: This segment delivered robust tenant sales growth of 21 per cent and maintained an impressive 97 per cent average occupancy across its portfolio.

Revenue climbed to Dhs5.8bn ($1.6bn), while EBITDA reached Dhs5bn ($1.4bn), representing a 54 per cent increase.

Hospitality and leisure: Driven by tourism recovery and strong domestic spending, these divisions saw a 20 per cent revenue increase to Dhs3.4bn ($0.9bn). Emaar expanded its international hotel footprint with new openings in Dubai and Makkah.

With a strong revenue backlog of Dhs71.8bn ($19.5bn) and ongoing momentum across various segments, Emaar is well-positioned for continued growth in 2024, it said.

Mohamed Alabbar, founder of Emaar, stated, “Following a prosperous 2023, our achievements are indeed gratifying. The strategic initiatives undertaken in the past two years, coupled with 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.

“With these results, we look forward to a positive performance in our shopping centres, hotels, and property sales in 2024. We remain committed to unveiling innovative projects and unparalleled offerings across all our business divisions.”