Aldar, the massive developer, produced yet another spectacular first half, with net profit rising 57% to Dh3.3 billion. The ADX-listed company saw a 73% increase in revenue to Dh10.9 billion. In recent weeks, the company has also increased its visibility in Dubai real estate. (Of this, the top-line received Dh5.3 billion from April through June’s end.)
Recently, a Grade A office tower with a net leasable area of 88,000 square meters was launched in Dubai on Shaikh Zayed Road. Furthermore, Aldar, an Abu Dhabi-based company, increased its real estate investments in the logistics sector, partnering with DP World to establish a logistics park.
With a total commitment of Dh1.8 billion, the company is making a strategic entry into the Dubai commercial market. It will develop an iconic office tower on Sheikh Zayed Road with a net leasable area of 88,000 square meters, and it will acquire “6 Falak,” a recently constructed Grade A office building in Dubai Internet City.
“We are entering into one of the most exciting periods of activity and growth in Aldar’s history.” – Talal Al Dhiyebi, CEO of Aldar
Aldar’s “effective tax rate” on its corporate tax liabilities for the first half of 2024 was 4.1%. In H1-2024, the pre-tax net profit increased by 63% to Dh3.5 billion, and in Q2-2024, it increased by 42% to Dh1.8 billion.
“With 79 per cent of our UAE residential sales coming from overseas and expats buyers, we are experiencing a significant expansion of our customer base and benefiting from the country’s appeal to international investors,” said Talal Al Dhiyebi, CEO of Aldar.
“At the same time, our investment portfolio is thriving amid favourable economic conditions and driven by strategic acquisitions over the last couple of years.”
A Dh7.7b intake
Property sales in Q2-2024 reached Dh7.7 billion, a 10% increase, aided by significant increases in the number of foreign buyers purchasing properties in the UAE. Aldar’s foreign subsidiaries, Sodic located in Egypt and London Square in the UK, are anticipated to increase their contributions in the upcoming times as they “continue to pursue scale.”
What’s coming
At the end of H1-2024, Aldar’s revenue backlog hit its highest point to date, totaling Dh39 billion. For the next two to three years, this offers “strong visibility on revenue” for both international and UAE operations. Aldar is building projects worth Dh32.9 billion, including several projects in Abu Dhabi and Ras Al Khaimah in addition to two residential communities in Dubai.
“The UAE real estate market continues to display solid fundamentals driven by strong end-user demand and increasing global investor interest,” said Mohamed Khalifa Al Mubarak, Chairman, in a statement. “This is reflected in Aldar’s strong financial and operational performance in the first six months of 2024,” he added.
