Abu Dhabi-based developer Aldar has reported a 57% increase in net profit to Dh3.3 billion in the first half of 2024. The company attributes this growth to backlog realization and the strong performance of its investment portfolio, with revenue reaching Dh10.9 billion, up 73% year-on-year. Earnings before interest, taxes, depreciation, and amortization (Ebitda) also saw a significant increase of 61% year-on-year to Dh3.9 billion.
The UAE real estate market continues to show strong fundamentals, driven by high end-user demand and increasing global investor interest, according to Mohamed Khalifa Al Mubarak, chairman of Aldar. He emphasized the country’s appeal to international corporations, entrepreneurs, and capital due to pro-growth policies and a business-friendly environment. Aldar plays a key role in the country’s development by providing lifestyle destinations and the necessary infrastructure to support growing demand.
Aldar’s group CEO, Talal Al Dhiyebi, highlighted the company’s effective and diversified business model, strong brand, and favorable operating environment in the UAE. With 79% of residential sales coming from overseas and expat buyers, Aldar is expanding its customer base and benefiting from the country’s attractiveness to international investors. The company’s investment portfolio is also thriving, driven by strategic acquisitions in recent years.
Development sales in the first half of 2024 reached Dh14 billion, a 21% increase year-on-year, with strong demand for new launches and existing inventory contributing to the growth. Overseas and resident expat buyers accounted for 79% of UAE sales during this period. The development backlog stands at Dh39 billion, with Dh33.2 billion in the UAE, ensuring revenue recognition over the next two to three years for Aldar.
Aldar is planning to continue realizing its backlog and launch new projects, supported by strategic land bank replenishment. The company is also making a strategic entry into Dubai’s commercial segment with a commitment of Dh1.8 billion, including an office tower on Sheikh Zayed Road and the acquisition of ‘6 Falak’ in Dubai Internet City. Additionally, a partnership with DP World will see the development of a logistics park in Dubai as part of a Dh1 billion investment commitment towards logistics assets.
In conclusion, Aldar’s strong financial and operational performance in the first half of 2024 is a testament to the company’s commitment to sustainable growth and capitalizing on market opportunities in the UAE. With a focus on realizing its backlog, launching new projects, and expanding into new segments, Aldar is set to enter an exciting period of activity and growth in the coming years.
