Emaar displays top performance, records net profit of Dhs6.200b

Inayat-ur-Rahman

Emaar Properties exhibited a resilient performance in FY 2019 by recording net profit of Dhs6.200 billion as compared to net profit of Dhs6.139 billion in FY 2018.

Emaar recorded revenue of Dhs24.586 billion ($ 6.694 billion) for 2019.

Emaar maintained its positive performance in 2019 recording property sales in Dubai of Dhs14.949 billion (US$ 4.070 billion). This performance is a result of Emaar’s ongoing investment in customer-centric innovation across its businesses and continued interest from foreign investors in both residential and commercial developments as well as new, first time home buyers entering the UAE property market.

Mohamed Alabbar, Chairman of Emaar Properties and Emaar Development, said “Emaar’s performance in 2019 was resilient, maintaining growth within a challenging market. Emaar’s sales achievements in 2019 are a testament to the products and people behind these innovations. Each year we set the bar higher, raising expectations across the business to ensure Emaar maintains the level of excellence the brand is synonymous with. Optimizing resources, improving efficiency and maximizing our productivity has directly contributed to enhancing our performance and positively impacted our results”.

He added: “Our main focus is to bring the best talent to achieve our goals consistently. Our resources are focused on enhancing our customer happiness while providing superior results to our shareholders. We are also implementing new digital initiatives which will significantly enhance the value of our properties and assets to our customers whilst enabling us to innovate through new products and services.”

To date, Emaar has handed over more than 63,000 residential units in Dubai and other international markets. More than 30,000 residences are under development in the UAE and over 14,000 units in global markets. Emaar now has a total sales backlog of Dhs 45.795 billion (US$ 12.468 billion) of which Dhs 33.736 billion (US$ 9.185 billion) is in UAE, to be recognized as revenue in the coming years.

In 2019, Emaar Development  recorded a net profit of Dhs 2.700 billion (US$ 735 million) and revenue of Dhs 12.746 billion (US$ 3.470 billion).

During 2019, Emaar Development has launched 22 new projects across various master plans in Dubai and has sold 70 per cent of its units launched in 2019, indicating a stronger connection of customers with Emaar’s strong brand value. Emaar Development has also introduced 3 new master-planned communities in 2019, Arabian Ranches III, Mina Rashid and The Valley, with a sell-out response, demonstrating the demand for expansive communities and family homes.

The notable launches of 2019 include: The Palace, Bay Shore and Creek Edge in Dubai Creek Harbour, Sun, Joy and Spring in Arabian Ranches III, Grand Bleu and South Beach Holiday Homes in Emaar Beachfront, Green View and Parkside in Emaar South. Other than this we have also launched couple of projects in Dubai Hills Estate, Mina Rashid and The Valley master-planned developments.

Emaar’s international property development operations recorded 43 per cent increase in revenue to Dhs 4.399 billion (US$ 1,198 million) in 2019 as compared to Dhs 3.081 billion (US$ 839 million) in 2018. This was primarily led by Emaar’s operation in Egypt and India. Emaar International represents 18 per cent to the total Group revenue.

In 2019, Emaar’s subsidiary in Egypt has received an allocation of 500 acres of land plot in Sheikh Zayed City for a mixed-use masterplan development, this will increase Emaar’s real estate portfolio and expand in West Cairo.

Emaar Malls  recorded 5 per cent increase in revenue to Dhs 4.673 billion (US$ 1.272 billion) in 2019, compared to Dhs 4.446 billion (US$ 1.210 billion) in 2018. Overall net profit in 2019 amounted to Dhs 2.286 billion (US$ 622 million) as compared to net profit of Dhs 2.230 billion (US$ 607 million) in 2018.

Occupancy levels within Emaar Malls assets – The Dubai Mall, Dubai Marina Mall, Gold & Diamond Park, Souq Al Bahar and the Community Retail Centres – remained strong at 92 per cent. In 2019, the malls and retail centers of Emaar Mall welcomed approximately 136 million visitors collectively with The Dubai Mall maintaining its exceptional performance welcoming 84 million visitors in 2019.

Namshi, the regional e-commerce fashion and lifestyle platform was fully acquired by Emaar Malls in 2019. The online retailer recorded a revenue of AED 1.028 billion (US$ 280 million), increasing by 21 per cent compared to the previous year. Namshi’s consistent success is attributed to its popular ‘Black November’ campaign and considerable growth in the Saudi market.

Emaar’s recurring revenue generating businesses, hospitality & leisure, entertainment, commercial leasing business along with Emaar Malls, reported a revenue of AED 7.293 billion (US$ 1.986 billion), representing 30 per cent of the total Group revenue. The hotels under Emaar Hospitality Group (including managed hotels) in Dubai reported an average occupancy of 80 per cent, higher than the industry average.

Emaar continued to win accolades across the industry with recognition as the top developer in the UAE as per 2019 Brand Advocacy rankings by YouGov after being ranked #1 Real Estate Companies and #20 among all industries in the Forbes World’s best-regarded companies rankings earlier in the year.