Emaar Properties delivered a defining first half of 2025, marking a watershed period as the group reported a substantial rise in property sales, a robust backlog that points to strong future revenue, and broad-based growth across its diversified portfolio. The half-year performance underscored sustained demand across master-planned communities and lifestyle offerings, while the group’s retail, hospitality, and international operations contributed to a broad revenue expansion. With a significant increase in the revenue backlog and solid profitability metrics, Emaar’s trajectory signals a continued cycle of demand, execution, and disciplined capital management as markets navigate a dynamic global environment. The upgrade of Emaar’s credit rating by two major agencies in the second quarter—Moody’s to Baa1 with a stable outlook and S&P Global to BBB+ with a stable outlook—further reinforces investor confidence and supports the company’s capacity to fund ongoing development and expansion. In commenting on the results, Emaar’s founder Mohamed Alabbar emphasized that the numbers tell only part of the story, underscoring a culture focused on intent, continuous improvement, and making everyday life more meaningful for people through thoughtfully designed projects and communities. The first half of 2025, in his view, reflects that mindset in action, as teams across the organization push to elevate performance while delivering long-term value to stakeholders.
Strong half-year performance and financial fundamentals
The first half of 2025 established a new benchmark for Emaar’s scale and financial resilience, with the group recording a substantial uplift in sales activity and a broad improvement in earnings metrics. The reported property sales for H1 2025 reached AED 46 billion (approximately USD 12.5 billion), representing a 46 percent year-on-year increase. This surge was driven by sustained demand across Emaar’s master-planned communities and lifestyle offerings, with buyers showing persistent appetite for both residential and integrated lifestyle projects. The results highlighted the breadth of the company’s platforms—from development to retail and hospitality—and the way in which all segments contributed to a stronger top line.
A key element of the growth profile was the sharp expansion in the revenue backlog, which rose to AED 146.3 billion (about USD 39.8 billion) as of June 30, up 62 percent year-on-year. The backlog provides robust visibility into future revenues and underscores the company’s ongoing order book strength as it advances its development pipeline across multiple markets and product lines. This backlog growth aligns with Emaar’s strategy of building long-term value through high-quality projects and diversified revenue streams that extend beyond immediate sales, including recurring income from malls, hotels, and leasable spaces.
Consolidated revenue for the period climbed to AED 19.8 billion (roughly USD 5.4 billion), representing a 38 percent increase from H1 2024. This revenue expansion reflects a combination of higher property sales, improved performance in the company’s retail and leasing assets, and contributions from its hospitality and international operations. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached AED 10.4 billion (about USD 2.8 billion), up 30 percent year-on-year, with EBITDA margins exceeding 52 percent—an indicator of the company’s efficient cost structure and strong operating leverage across its diversified activities.
Net profit before tax rose to AED 10.4 billion (approximately USD 2.8 billion), marking a 34 percent increase compared to the same period last year. This level of profitability demonstrates not only higher sales but also effective management of operating costs and a favorable mix of earnings from recurring revenue streams. The performance suggests that Emaar’s business model—balancing high-volume development activity with stable recurring income—continues to deliver durable earnings resilience even as the market environment evolves.
The credit rating upgrades in Q2 added a further positive dimension to the financial narrative. Moody’s upgraded Emaar’s credit rating to Baa1 with a stable outlook, following S&P Global’s upgrade to BBB+ with a stable outlook earlier in the year. These upgrades reflect strengthening credit fundamentals, improved liquidity profiles, and the company’s ability to manage balance sheet dynamics in a way that supports ongoing growth and investment. The market interpretation of these upgrades is notably favorable, as they tend to lower funding costs, broaden investor demand, and enable more flexible capital allocation in pursuit of expansion, acquisitions, and portfolio optimization.
Mohamed Alabbar’s commentary reinforced the broader interpretation of the results. He emphasized that “numbers tell only part of the story.” He described a culture in which every sale, every project, and every community is underpinned by intent and continuous improvement. He spoke of a team relentlessly asking how to do better and how to make people’s daily lives more meaningful, suggesting that the first half of 2025 reflects a deliberate mindset aligned with long-term value creation. The emphasis on purpose-driven execution ties into the company’s growth engine, with development momentum supported by a thriving retail, hospitality, and international footprint, as well as a growing recurring revenue base.
Revenue trajectory and margin dynamics
A detailed look at the revenue trajectory reveals a multi-layered growth pattern across segments, with strong performance in both the core development business and the company’s diversified asset portfolio. The rise in property sales in H1 2025 was a primary driver of top-line expansion, but the gains were reinforced by higher revenue from the shopping malls and leasing assets, as well as contributions from international and hospitality operations. The combination of these factors produced a more favorable revenue mix, helping sustain elevated EBITDA margins.
Operating margins benefited from a combination of scale, efficiency gains, and favorable occupancy trends in key assets. The portfolio-level EBITDA margin of more than 52 percent indicates productive utilization of assets and disciplined cost management within both development and recurring-revenue streams. The recurring revenue framework—encompassing malls, hotels, leisure, entertainment, and commercial leasing—continued to underpin earnings resilience, with the portfolio generating a meaningful portion of EBITDA even as development investments remained active.
The pace of backlog accumulation, coupled with a high-quality project mix, supports earnings visibility well beyond the current reporting period. This is particularly important for a company with substantial development activity and a large, long-dated portfolio of projects in various stages of completion. The stability of these streams—balanced with a strong pipeline for future growth—helps position Emaar to weather potential market fluctuations and pursue strategic opportunities with greater confidence.
Leadership commentary and strategic signals
Beyond the numbers, the leadership commentary underscored a strategic narrative. The combination of backlog expansion, renewed credit rating confidence, and a continued commitment to talent development and ESG progress signals a holistic approach to value creation. The company’s emphasis on Emirati talent development, including the launch of a Youth Council, mentorship programs, and ongoing CFA sponsorship, aligns with broader national objectives and supports succession planning and capability building within the organization. This focus is not just about social responsibility; it also serves to strengthen the company’s human capital, enhance execution capabilities, and improve long-term competitive differentiation in a challenging market environment.
ESG progress remained a component of the narrative, with continued improvements in energy efficiency and responsible sourcing. The upgraded MSCI ESG rating reflected external validation of the company’s environmental, social, and governance practices, reinforcing the notion that Emaar’s development and operations are being pursued with more sustainable and responsible methodologies. This broader ESG alignment complements the financial strength and operational momentum, presenting a cohesive picture of a company balancing growth with sustainability and stakeholder considerations.
Operational and market implications
The overall performance in H1 2025 suggests several operational and market implications. First, the strong backlog provides a clear path for revenue realization, potentially supporting planned capital expenditure, project accelerations, and strategic acquisitions or joint ventures if pursued. Second, the improved profitability metrics and robust occupancy in key segments, including malls with near-full occupancy, indicate a favorable operating environment for recurring income streams and asset valuations. Third, the credit rating upgrades reduce funding costs and improve access to capital markets, enabling continued investment in development and international expansion. Finally, the leadership emphasis on people and ESG underscores a governance framework designed to sustain long-term value creation, resilience, and stakeholder trust.
As the company moves forward, the interplay between demand in master-planned communities, the vitality of retail and leisure assets, and the expansion of international and hospitality activities will be closely watched. The H1 results position Emaar to sustain momentum into the second half of 2025 and beyond, provided macroeconomic conditions remain supportive and demand remains robust across the key markets the group operates in.
Development momentum: Emaar Development’s UAE-led growth and beyond
Emaar Development delivered a standout first half in 2025, with property sales totaling AED 40.6 billion (approximately USD 11.1 billion), up 37 percent year-on-year. This performance was supported by a pipeline of 25 new project launches, underscoring a sustained development cadence and a broadening project slate that caters to a diverse buyer base. The combination of strong sales and a steady stream of new launches indicates a healthy appetite for both mid-market and premium development segments, reflecting consumer demand for integrated living environments that combine residential, retail, and lifestyle amenities.
Across the UAE, development operations generated revenue of AED 10 billion (about USD 2.7 billion), reflecting a 35 percent year-on-year increase. Net profit before tax (PBT) rose by 50 percent to AED 5.5 billion (about USD 1.5 billion), highlighting the company’s ability to translate a higher sales pace into meaningful profitability gains within its development arm. These numbers align with a broader strategy that prioritizes scalable, high-quality development activity in markets with robust demand fundamentals and favorable growth prospects.
In aggregate terms, total UAE development revenue for Emaar reached AED 13.5 billion (roughly USD 3.7 billion), representing a 50 percent increase from the prior year. The backlog on UAE projects climbed to AED 128.6 billion (approximately USD 35 billion), up 50 percent from H1 2024. This backlog growth not only demonstrates ongoing execution momentum but also serves as a solid financial buffer, underpinning revenue predictability for the near to medium term as projects progress through construction and delivery phases.
The shopping malls and leasing assets segment within the UAE also contributed meaningfully to the group’s performance. Revenue from these assets rose 14 percent to AED 3.2 billion (about USD 871 million), while EBITDA increased 18 percent to AED 2.8 billion (roughly USD 762 million). The occupancy level across malls averaged 98 percent as of June 30, underscoring strong demand for retail space and the effectiveness of property management strategies in attracting and retaining tenants. The high occupancy rate supports stable cash flows and reinforces the value proposition of Emaar’s retail portfolio as a core component of recurring income and EBITDA stability.
UAE development pipeline and asset performance
The UAE development pipeline was a key driver of the expansion in both revenue and backlog, with the 25 new launches enriching the project mix and enabling a broader customer reach. The emphasis on new launches likely reflects a strategic reaction to market demand dynamics, including shifts in buyer preferences, mortgage conditions, and urban development trends. A larger launch cadence not only expands the potential for sales but also sustains the momentum of construction activity, helping to keep the development calendar productive and aligned with market demand.
The performance of malls and leasing assets within the UAE is noteworthy for its implications on recurring revenue. The near-100 percent occupancy rate signals resilience in consumer demand for shopping and lifestyle experiences, even in a changing retail landscape. High occupancy reduces vacancy risk, supports stable rent collections, and helps protect margins in a highly asset-intensive portfolio. These assets serve as a stabilizing force within the broader Emaar revenue mix, contributing to EBITDA and enabling the group to balance higher exposure to development with secure, recurring cash flows.
Operationally, the UAE’s contribution to the overall Emaar Development segment remains central to the group’s value proposition. As domestic real estate markets continue to evolve, the UAE’s regulatory environment, ongoing urban development initiatives, and consumer demand patterns will continue to shape the pace and profitability of development activities. Emaar’s execution capabilities, project management excellence, and collaboration with government and private sector partners position it well to translate this momentum into sustained growth over the medium term.
Backlog, profitability, and forward visibility
The backlog expansion within the UAE projects, rising by half versus the prior year, provides substantial forward visibility for revenue realization. This is particularly important in a market where project cycles can span several years from launch to handover, and because a robust backlog often signals favorable production scheduling, supply chain alignment, and cost containment strategies. The elevated backlog, combined with strong topline growth and improving PBT, enhances confidence that Emaar Development can convert planned projects into revenue streams with predictable timing and solid margins.
From an investor perspective, the UAE development performance highlights a well-balanced mix of high-value projects, careful risk management, and disciplined capital allocation. The growth in revenue from UAE development and the parallel expansion of the backlog create a virtuous cycle: higher sales enable larger development activity, which reinforces throughput, supports further launches, and sustains cash flow to fund ongoing and upcoming projects. The company’s ability to sustain a healthy EBITDA trajectory despite the scale of development work indicates effective cost control and efficient execution across projects, supply chains, and on-site operations.
International expansion and hospitality: broadening the global footprint
International and hospitality segments contributed to Emaar’s diverse revenue mix and underlined the company’s strategy of geographic diversification. International property sales more than tripled year-on-year to AED 5.3 billion (approximately USD 1.4 billion), with total revenue from international activities rising 26 percent to AED 1 billion (roughly USD 272 million). The growth was primarily driven by activity in key markets such as India and Egypt, reflecting the company’s selective approach to international development where growth opportunities align with market fundamentals and capacity to deliver high-quality projects.
International operations accounted for roughly 5 percent of total H1 2025 revenue, underscoring the continued importance of a diversified geographic footprint as a means to spread risk and capture opportunities across different macro environments. The expansion in international sales highlights Emaar’s ability to adapt its development model to multiple regulatory regimes and consumer preferences while maintaining high standards of project execution and customer experience.
The hospitality, leisure, and entertainment segment posted AED 2.1 billion (about USD 572 million) in revenue, supported by an 80 percent average occupancy rate across UAE hotels—an improvement from the prior year that signals resilience in demand for hospitality assets within the group’s portfolio. The addition of two hotels with more than 600 keys during H1 2025 marked a meaningful expansion of Emaar’s hospitality footprint, providing additional capacity to accommodate demand from tourists, business travelers, and event-driven activities in the UAE and potentially beyond.
International portfolio dynamics and risk considerations
Diversifying into international markets brings opportunities to capitalize on growth in regions with expanding middle classes, favorable regulatory environments, and strong tourism or investment flows. India and Egypt, identified as key contributors, illustrate how Emaar leverages its development capabilities and brand strength to enter markets with high growth potential. However, international expansion also introduces exposure to currency fluctuations, geopolitical dynamics, and regulatory changes. The company’s performance in this segment will depend on its ability to execute efficiently in foreign markets, maintain brand standards, manage cross-border supply chains, and navigate local financing conditions.
From a risk-management perspective, Emaar’s international footprint complements its UAE-based strengths by offering potential hedges against local market cycles. The company’s experience in large-scale mixed-use projects, coupled with its expertise in retail and hospitality, could enable it to adapt to evolving consumer preferences and to identify opportunities where demand is anchored by urban growth, infrastructure development, and tourism trends. The balance between conventional development activity and the expansion of hospitality and international projects will require careful capital planning, prudent risk assessment, and continuous optimization of project portfolios.
Strategic implications of international and hospitality growth
The growth in international property sales and hospitality revenue aligns with a broader strategy designed to diversify revenue streams and enhance long-term resilience. By increasing exposure to high-growth markets, Emaar reduces reliance on a single region and creates opportunities for cross-border synergies, such as leveraging the group’s brand, project management capabilities, and retail ecosystems across markets. The two new hotels add scale to a hospitality portfolio that already benefits from high occupancy and strong brand recognition, supporting recurring revenue generation and potential upsell opportunities through events, conferences, and premium services.
The hospitality and international growth also complement the core development activities by widening the company’s ecosystem of lifestyle offerings, where integrated living experiences blend residential products with retail, leisure, and hospitality services. This ecosystem approach is intended to appeal to buyers and tenants seeking comprehensive, high-quality environments that deliver durable value and enhanced living experiences.
Recurring revenue base, asset-light efficiency, and ESG leadership
Recurring revenue, anchored in malls, hotels, leisure, entertainment, and commercial leasing, demonstrated continued strength in the first half of 2025. This portfolio generated AED 5.3 billion (about USD 1.4 billion) in revenue during H1, up 15 percent year-on-year, underscoring the resilience and growth potential of Emaar’s non-development income streams. EBITDA from the recurring revenue portfolio rose 16 percent to AED 4.1 billion (roughly USD 1.1 billion), accounting for 40 percent of the group’s total EBITDA—a substantial share that anchors overall profitability and provides a steady cash flow backbone as development activity remains elevated.
The recurring revenue base acts as a stabilizing force in the group’s financials, helping to cushion the volatility that can accompany large-scale development cycles and international diversification. With malls, hotels, leisure and entertainment assets contributing a meaningful portion of EBITDA, Emaar benefits from predictable revenue streams that can be reinvested into ongoing projects, debt reduction, or strategic acquisitions. The strength of these assets is further reinforced by high occupancy rates, strong lease performance, and favorable market dynamics for prime commercial real estate and hospitality offerings.
In addition to financial performance, Emaar’s ongoing investments in human capital and talent development reflect a holistic approach to growth. The company’s Youth Council and mentorship programs signal a commitment to cultivating local talent and building a pipeline of skilled professionals who can support long-term growth. The continued sponsorship of professional certifications, including the CFA program, underscores a strategic emphasis on elevating financial and managerial capabilities within the organization, which can translate into more rigorous investment decisions, enhanced governance, and stronger stakeholder value.
ESG progress remained a notable aspect of the company’s narrative. Emaar reported continued progress on energy efficiency and responsible sourcing, building on its upgraded MSCI ESG rating. These ESG developments align with global investor expectations for sustainable and responsible business practices, particularly within a property developer and operator whose assets include large-scale real estate portfolios, malls, and hospitality properties. The ESG trajectory complements the company’s growth story by improving its attractiveness to ESG-focused investors and aligning with broader sustainability goals in the real estate sector.
Recurring revenue as a strategic pillar
The recurring revenue portfolio has grown to become a strategic pillar that supports the group’s long-term business model. The performance of this portfolio demonstrates the value of a diversified asset base that balances development-driven growth with stable cash flows from existing assets. The combination of stable income generation and high-quality backlog provides a robust platform for capital allocation, including the potential for funded expansion, optimization of the asset mix, and continued investment in energy efficiency and sustainable operations.
Future strategy around recurring revenue is likely to focus on enhancing asset productivity, optimizing occupancy, refreshing tenant mixes, and further leveraging the hospitality and leisure components to maximize guest experiences and spending. The integration of digital platforms, data analytics, and consumer insights can improve leasing performance, occupancy management, and revenue optimization across malls and hotels. These efforts can help sustain cash flow resilience, support capex plans for development, and improve overall shareholder value.
Market positioning, strategy, and forward-looking outlook
With a compelling H1 2025 performance, Emaar is positioned to build on its momentum across its diversified portfolio. The strong backlog, improved profitability, and enhanced credit outlook collectively support a constructive narrative for the company’s strategic roadmap. The group’s strategy appears to balance aggressive development activity with strong recurring revenue streams and prudent risk management, all underpinned by a focus on talent development and ESG leadership.
The ratings upgrades by Moody’s and S&P Global signal improved investor confidence and a favorable debt market environment, which in turn could lower funding costs and broaden access to capital markets. This funding flexibility supports continued capital expenditure to accelerate development projects, pursue selective international opportunities, and reinforce the quality and scale of the company’s asset base. It also provides room to invest in digital and sustainability initiatives that can further enhance the value proposition of Emaar’s residential, retail, and hospitality offerings.
From a strategic lens, the company’s continued emphasis on master-planned communities and lifestyle experiences remains central to its growth narrative. The appeal of integrated living environments—where residential components are complemented by retail, leisure, and hospitality—continues to resonate with buyers seeking high-quality, well-planned neighborhoods. The expansion of international markets, particularly in India and Egypt, diversifies risk and broadens the company’s geographic footprint, aligning with global demand trends and the opportunity to replicate Emaar’s development model in new settings.
Talent development and ESG leadership are integrated into the strategic framework as well. By investing in youth initiatives, mentorship, and professional certifications, Emaar strengthens its human capital foundation and positions itself for sustained execution excellence. ESG progress—particularly in energy efficiency and responsible sourcing—not only aligns with broader sustainability objectives but also supports risk mitigation by addressing environmental and governance considerations that increasingly matter to stakeholders.
Outlook and strategic implications
Looking ahead, Emaar’s backlog and revenue mix suggest a favorable trajectory for the second half of 2025 and beyond, contingent on macroeconomic stability and continued demand for well-designed, high-quality real estate and lifestyle assets. The company’s diversified portfolio—spanning development, malls and leasing, international projects, and hospitality—provides a well-rounded exposure to growth across multiple channels. The combination of strong execution, a large backlog, and a stable financing backdrop positions Emaar to sustain its expansion plans while continuing to deliver value to shareholders.
The market environment for real estate and property development remains dynamic, with potential opportunities and risks on the horizon. A favorable interest rate environment could support housing demand and project financing, while any significant shifts in macroeconomic conditions or regulatory changes could necessitate an adaptive approach to pricing, project timing, and capital allocation. Emaar’s experience in managing large-scale, multi-market projects, along with its track record of delivering premium assets and experiences, provides a solid foundation for navigating these uncertainties and pursuing strategic opportunities as they arise.
Concluding reflections on strategic execution
In summary, the first half of 2025 showcases Emaar’s capacity to drive growth across a diversified portfolio while maintaining strong profitability and balance-sheet discipline. The company’s ability to convert a higher sales pace into tangible earnings, the resilience and scale of recurring revenue streams, and the strategic expansion into international markets all contribute to a compelling narrative for ongoing value creation. Leadership emphasis on talent development and ESG leadership further strengthens the company’s long-term position, signaling a comprehensive approach to sustainable growth that integrates financial performance, people-centric initiatives, and responsible governance.
Conclusion
Emaar Properties’ H1 2025 results confirm a robust, multi-faceted growth trajectory anchored in a powerful development engine, resilient recurring revenue streams, and expanding international and hospitality exposures. With property sales rising decisively, a substantial backlog providing revenue visibility, and a broad-based recovery in profitability, the company has built a strong platform for continued expansion. The upgrades to both Moody’s and S&P Global ratings—reflecting improved credit quality and a stable outlook—add further validation to the company’s strategy and execution. The leadership’s emphasis on purposeful growth, talent development, and ESG progress complements the financial story, signaling a balanced approach to value creation that aligns with stakeholder expectations and market opportunities. As Emaar moves forward, the focus will be on sustaining delivery across the UAE and international markets, optimizing the asset base to maximize recurring income, and leveraging a disciplined capital strategy to fund ongoing development and diversification. The results point to a resilient, adaptable business poised to capitalize on opportunities across its integrated ecosystem of residential, retail, hospitality, and mixed-use developments, while continuing to prioritize sustainable practices, governance excellence, and the cultivation of Emirati talent as core strategic imperatives.