Emaar Properties, the largest listed developer in Dubai, has announced a significant surge of 43% in its first-quarter profit, driven by real estate sales and efficient operations across its business units.
According to a statement released by the company, net profit for the three-month period ending in March rose to Dh3.2 billion ($871 million), up from Dh2.24 billion recorded in the previous year.
Although revenue for the quarter reached Dh6.3 billion ($1.71 billion), experiencing a 5% decline compared to the previous year’s figure of Dh6.64 billion, Emaar’s property sales backlog reached Dh55.7 billion, which the company expects to recognize as revenue in the coming years.
Furthermore, Emaar reported a 26% increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter, reaching Dh4 billion, as the company’s commitment to innovation, talent, and operational excellence contributed to sustained growth.
Emaar Properties, renowned for constructing Burj Khalifa, the world’s tallest building, saw its shares settle flat at Dh5.96 at the close of trading on the Dubai Financial Market.
Dubai’s real estate market has been steadily recovering from the impact of the Covid-19 pandemic, with renewed interest from investors and buyers. In 2022, the industry achieved a record-breaking year with 90,881 transactions, surpassing the previous high of 81,182 in 2009, according to a report by property consultancy CBRE.
Emaar Properties, with its diverse portfolio in tourism, retail, and hospitality industries, is well-positioned to benefit from the projected growth in these sectors in 2023, aligning with Dubai’s long-term growth objectives.
The company has been actively implementing strategies to boost its position in the market. Emaar Hospitality Group, a subsidiary, recently announced plans to open eight new hotels in the UAE, Saudi Arabia, and Egypt, with most slated to open in the second half of this year or in 2024.
Emaar Development, the company’s property development business focused on build-to-sell projects, recorded a modest 1% increase in profit during the first quarter of 2023, reaching Dh1.06 billion. The division showcased improvements in operational efficiencies, contributing to its positive performance.
Emaar’s hospitality division, which oversees hotels in the UAE, reported an average occupancy rate of 75% during the first quarter.
As Dubai continues to thrive as a hub for various industries, including trade, financial services, logistics, travel, and hospitality, Emaar Properties remains optimistic about the future. The company anticipates sustained growth and value for its shareholders, driven by the city’s emerging sectors such as technology, renewable energy, healthcare, and education.