Aldar Q1 profit surges 88% on strong property sales

Aldar/X

Aldar Properties, the largest developer in Abu Dhabi, said net profit surged 88 percent to AED1.6 billion ($435.6 million) in the first quarter of 2024, compared to AED836 million a year ago, due to strong property sales.

Revenue rose 83 percent year on year to AED5.6 billion as development sales rose 39 percent annually to AED6.3 billion, following the launch of three projects in the three-month period ended March 2024.

“We have achieved a strong balance between recurring income and development sales and continue to recycle capital effectively into new growth opportunities,” Mohamed Khalifa Al Mubarak, the company’s chairman, said.

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“Aldar’s exceptional first-quarter results reflect the strength of the real estate market in the UAE, particularly in Abu Dhabi, where the emirate’s growing appeal as an international investment destination is our driving growth,” said group CEO Talal Al Dhiyebi.

Total UAE sales increased 46 percent annually to AED6.1 billion amid strong demand for both new and existing developments across Abu Dhabi, Dubai and Ras Al Khaimah.

Sodic, Aldar’s Egyptian subsidiary, generated AED166 million in revenue in Q1 2024, while sales reached AED97 million during the period.

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UK property developer London Square (LSQ), which was acquired in December 2023, contributed AED223 million in revenue during the first quarter. The revenue backlog was at AED1.6 billion as of the end of March. 

LSQ has completed the acquisition of four plots since its acquisition by the Abu Dhabi developer.

Aldar said it re-circulated AED2 billion to the local economy during Q1 through the localisation programme based on new contracts awarded.

Since the launch of the Nafis, a federal job-oriented programme, the developer has hired 748 UAE nationals and remains on track to create 1,000 jobs by 2026.