Aldar, a master developer listed on the ADX, announced a 38% growth in net profit for the first half of 2023, reaching Dh2.1 billion, while sales increased by 18% to Dh6.3 billion.
The company’s record development sales of Dh11.6 billion with the launch of 10 new projects so far this year helped the performance.
Mohamed Khalifa Al Mubarak, Chairman of Aldar Properties, said: “Solid consumer and business confidence is supporting domestic demand, which is translating into strong development sales and high occupancy across the company’s portfolio of prime assets.”
“I am pleased to report that Aldar has produced a strong financial performance in the first half of 2023, driven by effective implementation of its ambitious growth strategy in the context of the UAE’s robust macro-economic fundamentals”– Mohamed Khalifa Al Mubarak, Chairman of Aldar Properties
“This is a direct result of the successful socio-economic reforms enacted by the UAE government, which have positioned the country as a premier lifestyle, investment, and business destination. Aldar continues to build on its formidable track record, capitalizing on significant opportunities to deliver sustainable value to all our stakeholders.”
On a quarterly basis, net profit was Dh1.3 billion in Q2, up 52% from the same quarter a year earlier, while sales were Dh3.2 billion, up 21%.
Aldar Development, one of the group’s subsidiaries, reported H1 revenue of Dh3.9 billion, up 10%, and sales of Dh11.6 billion, up 117% year over year.
Aldar Investment saw its H1 revenue grow to Dh2.5 billion in the first half, a 42 percent increase over the previous year. “We achieved 10 new launches in the first half, more than in full-year 2022, and the investment business has seamlessly integrated new acquisitions, with the total value of Aldar’s owned recurring income asset portfolio increasing by almost a third over the last 12 months,” said Talal Al Dhiyebi, Group CEO of Aldar Properties.
He added, “Our operating model has proven highly effective at delivering accelerated growth. We look forward to launching our development franchise into Dubai and Ras Al Khaimah in the coming months, and deploying further capital to diversify our investment property platform.”
UAE operations
The amazing Dh 6.4 billion in total sales made by Aldar Development in the UAE during Q2 2023, an increase of 156% year over year. According to the developer, this was primarily due to the high demand for Q1 and Q2 launches of AlKaser, Reeman Living 2, and The Source 2 as well as current inventories. UAE sales for the first half of 2023 climbed by 164% year over year to Dh10.6 billion.
Sales from foreign and expat purchasers hit a record Dh3.3 billion in Q2 2023, highlighting Abu Dhabi’s development as a top destination for investments and a high quality of life. In contrast, sales to foreign and ex-pat customers totaled Dh5.2 billion in H1 2023, a fourfold increase from H1 2022.
“The company (Aldar) is operating at a significantly elevated scale than just a couple of years ago.”– Talal Al Dhiyebi, Group CEO of Aldar Properties.
Key transactions
Al Fahid Island acquisitions, as well as joint venture agreements with Dubai Holding and Mubadala, are notable transactions from H1. Balghaiylam, an integrated, sustainable residential community in the North Yas area valued at Dh8 billion, was created in July as a result of a partnership between Aldar and the Abu Dhabi Housing Authority.
By the time it is finished in 2026, the project will have provided 1,743 dwellings for UAE citizens. Additionally, the business set aside Dh500 million to revamp the shopping experiences at Al Jimi Mall and Al Hamra Mall.