- Emaar Properties saw a 7% revenue increase to Dhs 26.7 billion ($7.3 billion) and a staggering 70% surge in net profit to Dhs 11.6 billion ($3.2 billion) in fiscal year 2023.
- Revenue from malls, hospitality, leisure, and entertainment segments grew by 26%, reaching Dhs9.2 billion ($2.5 billion), comprising over 34% of total revenue.
- Emaar expanded internationally, with significant growth in property sales in India and contributions from Egypt, diversifying its revenue streams and strengthening its global presence.
Emaar Properties, a top developer in Dubai, concluded an outstanding year. The company saw strong sales growth and significantly increased profitability across its various business segments.
In fiscal year 2023, revenues rose by 7%, reaching Dhs 26.7 billion ($7.3 billion). Net profit surged by an impressive 70% to Dhs 11.6 billion ($3.2 billion) compared to the previous year.
Four Key Drivers of Growth for Emaar
- Property Sales Surge: Emaar’s success is underlined by its achievement of group property sales totalling Dhs 40.3 billion ($11 billion), marking a notable 15% year-over-year growth. This impressive performance was fueled by the launch of 27 new projects across the UAE, solidifying the company’s position as a frontrunner in the industry.
- Profitability Soars: EBITDA witnessed a remarkable surge of 63%, amounting to Dhs 16 billion ($4.4 billion), reflecting enhanced operational efficiency and improved margins.
- Diverse Revenue Growth: Revenue from malls, hospitality, leisure, and entertainment segments grew by 26%, reaching Dhs 9.2 billion ($2.5 billion), showcasing the resilience and potential of these diversified sectors. This now constitutes over 34% of Emaar’s total revenue.
- Global Expansion: While operations in the UAE remain dominant, Emaar made significant strides internationally, with India experiencing a fourfold increase in property sales and Egypt contributing significantly to the company’s global footprint.
Highlights by Division
Thriving UAE Build-to-Sell Division: In 2023, Emaar Development propelled its growth trajectory by successfully launching 27 new projects across all master plans in the UAE, resulting in property sales totalling Dhs 37.4 billion ($10.2 billion), marking a robust 21% increase over 2022.
The division reported impressive financial results, with revenue reaching Dhs 11.9 billion ($3.2 billion) and EBITDA achieving Dhs8 billion ($2.2 billion), showcasing an outstanding 89% growth compared to the previous year. Emaar Properties, inclusive of Dubai Creek Harbour, generated a total revenue of Dhs4.4 billion ($3.9 billion) from its property development business in the UAE.
Moreover, the company witnessed a significant surge in revenue backlog from property sales in the UAE, soaring to Dhs 62.1 billion ($16.9 billion) as of December 31, 2023, reflecting a remarkable year-on-year growth of around 50%.
Vibrant Shopping Malls and Retail Sector: The segment reported robust tenant sales growth of 21% and maintained an impressive 97% average occupancy across its portfolio. Revenue climbed to Dhs 5.8 billion ($1.6 billion), while EBITDA reached Dhs 5 billion ($1.4 billion), marking a 54% increase.
Dynamic Hospitality and Leisure Segment: Driven by tourism recovery and strong domestic spending, revenue from these divisions increased by 20% to Dhs 3.4 billion ($0.9 billion). Emaar expanded its international hotel footprint with new openings in Dubai and Makkah.
With a substantial revenue backlog of Dhs 71.8 billion ($19.5 billion) and ongoing momentum across various segments, Emaar is well-positioned for continued growth in 2024.
Words from the Founder
Mohamed Alabbar, the founder of Emaar, expressed his satisfaction with the company’s achievements, stating, “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.”
Alabbar also expressed optimism for the future, saying, “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.”
Emaar’s stellar performance in FY2023 underscores its resilience and adaptability in a dynamic market environment, setting a solid foundation for sustained growth and innovation in the years to come.
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