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Aldar’s H1 profit jumps 57% to Dh3.3b

The company achieved a revenue of Dh10.9 billion

Published: Mon 29 Jul 2024, 8:14 PM

Updated: Mon 29 Jul 2024, 8:15 PM

By
Issac John

The Aldar headquarters in Abu Dhabi. — File photo

Abu Dhabi-based developer Aldar said on Monday its net profit surged 57 per cent to Dh3.3 billion year-on-year (YoY) in H1 2024, “driven by significant backlog realisation and robust performance of its investment portfolio.”

The company achieved a revenue of Dh10.9 billion, up 73 per cent YoY, and earnings before interest, taxes, depreciation and amortisation (Ebitda) of Dh3.9 billion, a 61 per cent increase YoY, Aldar said in a statement.

Mohamed Khalifa Al Mubarak, chairman of Aldar, said the UAE real estate market continues to display solid fundamentals driven by strong end-user demand and increasing global investor interest, reflecting in Aldar’s strong financial and operational performance in the first six months of 2024. “Underpinning this strength is the dynamism of the UAE economy. The UAE has become a premier destination for international corporations, entrepreneurs and capital through pro-growth policies and a business-friendly environment.”

Al Mubarak noted that Aldar is integral to the country’s development, providing exceptional lifestyle destinations and building the commercial and logistics infrastructure needed to cater to the growing demand. Leveraging its financial strength and technical expertise, Aldar is committed to remaining at the forefront of the UAE’s sustainable economic transformation and capitalising on the attractive market opportunities to drive long-term sustainable growth for our shareholders and stakeholders.”

Talal Al Dhiyebi, group CEO of Aldar, said Aldar’s exceptional performance in the first half of 2024 highlights its effective and diversified business model, strong brand, and a positive operating environment in the UAE.

“With 79 per cent of our UAE residential sales coming from overseas and expats buyers, we are experiencing a significant expansion of our customer base and benefiting from the country’s appeal to international investors. At the same time, our investment portfolio is thriving amid favourable economic conditions and driven by strategic acquisitions over the last couple of years,” said Al Dhiyebi.

We are entering into one of the most exciting periods of activity and growth in Aldar’s history.”

Development sales in H1 2024 reached Dh14 billion, a 21 per cent YoY increase, driven by strong demand for new launches and existing inventory as overseas and resident expat buyers contributed Dh10.2 billion, or 79 per cent, of UAE sales in H1. Development backlog hit Dh39 billion, with Dh33.2 billion in the UAE, ensuring revenue recognition over the next two to three years, the developer said.

Aldar plans to continue backlog realisation and launch new projects, supported by strategic land bank replenishment. The developer plans to make 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.

It will strategically partner with DP World to develop a logistics park in Dubai. This forms part of the Dh1 billion investment commitment towards logistics assets