Dubai’s Emaar sees 80% net profit rise to Dhs6.8bn, supported by record property sales

Dubai’s Emaar Properties has announced that the revenue it earned in 2022 amounted to Dhs24.9bn ($6.8bn).

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) and net profit for 2022 increased by 18 per cent and 80 per cent, respectively, to Dhs9.8bn ($2.7bn) and Dhs6.8bn ($1.9bn) compared to 2021, as a result of sustained revenue, improved margins, and continued control over costs.

Emaar’s group property sales in 2022 reached Dhs35.1bn ($9.5bn), primarily driven by new project launches.

The company’s backlog of property sales has reached Dhs53.2bn ($14.5bn), which will be recognised as revenue in the coming years.

In 2022, it completed the acquisition of Dubai Creek Harbour for an overall consideration of Dhs7.5bn ($2bn).

Mohamed Alabbar, the company’s founder, said: “After a successful 2022, we are very pleased with our accomplishments. Improvements in consumer confidence and overall business activity, especially in the real estate market, have benefited all the company’s operations over the past year, thanks to the strategic measures taken over the past two years. Given these remarkable outcomes, we expect to see strong performance by our shopping centers, hotels, and property sales in 2023, as we continue to deliver cutting-edge projects and unparalleled offerings across all of our business units.”

Emaar Group highlights

Emaar Development maintained strong property sales momentum in Dubai in 2022, recording Dhs30.7bn ($8.4bn) in property sales, a 12 per cent increase over 2021. The team reported Dhs11.5bn ($3.1bn) in revenue and Dhs4.2bn ($1.2bn) in EBITDA.

Read: Emaar Development records property sales worth $8.36bn in 2022, a YoY increase of 12%

In 2022, Emaar’s international real estate operations recorded Dhs4.3bn ($1.2bn) in property sales and Dhs4.2bn ($1.1bn) in revenue, representing 17 per cent of Emaar’s total revenue. The performance of international operations was led by successful operations in Egypt and India.

Emaar Malls Management, the company’s wholly owned shopping malls and retail division, saw an 8 per cent increase in revenue in 2022 compared to the previous year, reaching AED 5.4 billion (US$ 1.5 billion). Emaar Malls Management achieved an EBITDA of Dhs3.1bn ($836m) in 2022, an increase of 21 per cent from 2021, with tenant sales surpassing pre-Covid 19 levels.

The occupancy rate of Dubai Mall, its prime asset, stood at 97 per cent.

The Dubai Hills Mall, which was unveiled last year on February 17. As of the end of 2022, 91 per cent of the mall was leased.

The company’s hospitality, leisure, entertainment, and commercial leasing businesses generated Dhs3.4bn ($929m) in revenue in 2022, an increase of 57 per cent compared to 2021.

In 2022, the company’s hotels in the UAE achieved strong performance led by significant growth in ADRs and achieving average occupancy rates of 69 per cent, driven by a rebound in global tourism and supported by global events such as Expo 2020 and FIFA World Cup.

Emaar’s recurring revenue-generating businesses of malls, hospitality, leisure, entertainment, and commercial leasing collectively generated Dhs8.8bn ($2.4bn) in revenue in 2022, a 23 per cent increase over the previous year.

These businesses represent 36 per cent of its total revenue.