Real Estate

Emaar shares rise after upgrade by rating agencies

By Pramod Kumar

June 12, 2025, 8:51 AM

Dubai creek harbour apartments. A double credit rating upgrade from S&P and Moody's highlighted Dubai’s Emaar Properties' exceptional performance and robust outlook

Dubai economy confidence
Emaar stock jumps
Robust financials cited

Shares of Emaar Properties, Dubai’s largest listed real estate developer, rose on Wednesday after two global rating agencies upgraded its credit ratings.

The stock was trading 1.5 percent higher at AED13.45 at close of trading on the Dubai Financial Market. More than 14.3 million shares had been traded.

The stock has jumped nearly 5 percent year to date and 79 percent over the last 12 months.

S&P Global Ratings raised its long-term issuer credit rating to “BBB+” from “BBB”, while Moody’s upgraded its long-term issuer rating to “Baa1” from “Baa2”. Both gave a stable outlook, the developer said in a statement.

The upgrades reflect strong financials, steady performance, and a clear growth plan.

S&P’s decision was based on Emaar’s backlog of nearly AED110 billion ($29.9 billion) as of December 2024 and AED65.4 billion in UAE presales in 2024.

Moody’s highlighted the significant reduction in adjusted debt from 2020 to March 2025 and a drop in debt-to-equity ratio over the same period.

“These upgrades reflect not only our performance, but also the confidence in Dubai’s economy and real estate market,” Mohamed Alabbar, founder of Emaar, said in a statement.

As of March 2025, Emaar, which is 30 percent owned by the Dubai government, reported a revenue backlog of AED127 billion, providing cashflow visibility through 2028.

Emaar holds AED25.4 billion in cash, excluding escrow balances, along with AED7.4 billion in undrawn committed credit lines, ensuring high liquidity.

The stable outlook reflects the developer’s strong financial position and continued operational growth.

In May, the developer reported that revenue reached AED10 billion in the first quarter of 2025, compared to AED6.7 billion in the same quarter a year ago, following the implementation of cost-effective measures.

Net profit rose 27 percent to AED3.9 billion in the quarter ended March 31, 2025, from AED2.9 billion a year earlier.

The strong performance comes on the back of record-breaking growth for the wider Dubai property sector, with prices increasing by 75 percent since 2021.