#Dubai #UAE #Emaar Properties #Credit Rating

Emaar Properties' Credit Rating Upgrades

Emaar Properties PJSC, a leading global player in the real estate development industry, has announced a significant boost in its credit ratings from both S&P Global Ratings and Moody's. This marks a notable affirmation of the company's strong financial performance and strategic resilience amidst a dynamic market environment.

The upgrades see S&P raising Emaar's long-term issuer credit rating to BBB+ from BBB, while Moody's moves Emaar's long-term issuer rating up to Baa1 from Baa2, both with stable outlooks. These adjustments reflect the company’s robust financial fundamentals, consistent operational achievements, and solid strategic direction in an increasingly competitive landscape.

Financial Strength and Growth Visibility

As of March 2025, Emaar Properties reported a remarkable revenue backlog of approximately US$ 34.6 billion. This substantial figure not only underscores the company's excellent revenue and cash flow visibility extending through to 2028 but also highlights its diverse portfolio, which continues to evolve dynamically. Emaar's repeated income streams are bolstered by disciplined execution and a commitment to resilient operations, making it well-positioned for sustainable growth.

In addition, Emaar's strong performance is backed by record-high presales in the UAE, amounting to US$ 17.8 billion during 2024. The company also enjoys a commendable net cash position and low leverage, complemented by strong adjusted EBITDA margins. These factors have contributed significantly to the positive rating revisions by both agencies.

Recognition from Credit Rating Agencies

The boost in credit ratings reflects the significant reduction in adjusted debt Emaar has achieved since 2020, alongside a decrease in the debt-to-equity ratio over the same period. Moody's noted this reduction as key to its decision to upgrade the ratings.

Mohamed Alabbar, Emaar's founder, expressed pride in the recognition from S&P and Moody’s, emphasizing how it complements the company's strategic strength, asset quality, and disciplined financial management. He further acknowledged that these upgrades are indicative not just of Emaar's performance, but also of the confidence placed in Dubai's thriving economy and real estate market.

Emaar’s Commitment to Sustainable Growth

Emaar boasts an impressive interest coverage ratio of approximately 24 times for the fiscal year ending March 2025. With US$ 6.9 billion in cash reserves (excluding escrow balances) and access to US$ 2 billion in undrawn credit facilities, the company is well-equipped with liquidity and financial flexibility.

S&P highlighted Emaar's diverse operations in retail, hospitality, and entertainment as critical elements that contributed to the positive rating action. For instance, Dubai Mall, managed by Emaar, witnessed over 111 million visitors in 2024, with an occupancy rate for its overall mall portfolio reaching a remarkable 98.5%.

A Leader in the Global Real Estate Market

These dual upgrades solidify Emaar's reputation in the global real estate sector. With a continued focus on innovation, sustainable growth, and value creation, Emaar is dedicated to enhancing its offerings for shareholders and stakeholders alike. The company's strategic direction is not only focused on maintaining financial strength but also on contributing positively to Dubai's evolving skyline and economic landscape.

As Emaar steps into the future, it remains committed to leveraging its robust financial foundation and strategic insights to navigate the changing tides of the real estate market and deliver sustained value across its operations.