The largest publicly traded developer in Dubai, Emaar Properties, announced a 70% year-over-year increase in net profit for the fiscal year 2023.
The real estate giant saw growth of 7% and 70%, respectively, in 2023 from the same period the previous year, with revenues of Dh26.7 billion ($7.3 billion) and net profit of Dh11.6 billion ($3.2 billion).
“This performance was supported by growth in tourism, a continued upward trend in retail sales, and a consistent increase in real estate demand,” Emaar said in a statement on Thursday.
Sales of real estate rose by 15%, reaching peak values of Dh40.3 billion ($11 billion). Additionally, Emaar increased its EBITDA by 63% from 2022 to 2023, reaching Dh16 billion ($4.4 billion).
Mohamed Alabbar, Founder of Emaar, said, “Following a prosperous 2023, our achievements are indeed gratifying. The strategic initiatives undertaken in the past two years and 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 said, “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.”
The company stated that as of December 31, 2023, the group’s revenue backlog from property sales, which was increased by sales during 2023, amounted to Dh71.8 billion ($19.5 billion).
Furthermore, Emaar Development reported Dh11.9 billion ($3.2 billion) in revenue and Dh8 billion (US$ 2.2 billion) in EBITDA in 2023—an 89% increase over 2022. As of December 31, 2023, the revenue backlog from property sales in the United Arab Emirates stood at Dh62.1 billion ($16.9 billion), indicating a growth of approximately 50% year over year.
Breakdown of earnings
Shopping mall, retail, and commercial leasing
In 2023, Emaar’s commercial leasing, retail, and shopping mall businesses brought in Dh5.8 billion ($1.6 billion). Except for a Dh700 million ($191 million) gain from the sale of Namshi in Q1 2023, the portfolio’s EBITDA during that time was Dh5 billion ($1.4 billion), a 54% increase over 2022.
Emaar International
In 2023, Emaar’s global real estate division reported Dh2.9 billion ($0.8 billion) in property sales and Dh3.1 billion ($0.9 billion) in revenue. Egypt and India were the main drivers of international operations’ performance in 2023. Property sales at Emaar’s India operation increased 4X over the previous year due to new launches.
Hospitality, leisure, and entertainment
The hospitality, leisure, and entertainment sectors of Emaar saw a 20 percent increase in revenue in 2023 over 2022, coming in at Dh3.4 billion ($ 0.9 billion). Strong domestic spending and a steady recovery in the tourism sector were the main drivers of this growth.