Abu Dhabi-based developer Aldar announced on Monday that its net profit increased by 57 percent to Dh3.3 billion year-on-year (YoY) in the first half of 2024, attributed to substantial backlog realization and the robust performance of its investment portfolio.
The company reported a revenue of Dh10.9 billion, a 73 percent YoY increase, and earnings before interest, taxes, depreciation, and amortisation (Ebitda) of Dh3.9 billion, marking a 61 percent YoY rise, according to a company statement. Mohamed Khalifa Al Mubarak, chairman of Aldar, highlighted that the UAE real estate market maintains strong fundamentals, driven by robust end-user demand and growing global investor interest, which is reflected in Aldar’s strong financial and operational performance in the first half of 2024.
Al Mubarak emphasized that the dynamism of the UAE economy underpins this strength. The UAE has emerged as a leading destination for international corporations, entrepreneurs, and capital due to pro-growth policies and a conducive business environment. He also noted that Aldar plays a crucial role in the country’s development, offering exceptional lifestyle destinations and constructing the necessary commercial and logistics infrastructure to meet increasing demand.
Leveraging its financial prowess and technical expertise, Aldar is dedicated to leading the UAE’s sustainable economic transformation and capitalizing on market opportunities to drive long-term sustainable growth for its shareholders and stakeholders. Talal Al Dhiyebi, group CEO of Aldar, stated that Aldar’s outstanding performance in the first half of 2024 underscores its effective and diversified business model, strong brand, and a favorable operating environment in the UAE.
With 79 percent of its UAE residential sales originating from overseas and expat buyers, Aldar is witnessing a significant expansion of its customer base and reaping the benefits of the country’s appeal to international investors. Meanwhile, its investment portfolio is flourishing amid favorable economic conditions and strategic acquisitions made in recent years, according to Al Dhiyebi.
Aldar is poised to enter one of the most exciting periods of activity and growth in its history. Development sales in the first half of 2024 reached Dh14 billion, a 21 percent YoY increase, fueled by strong demand for new launches and existing inventory, with overseas and resident expat buyers accounting for Dh10.2 billion, or 79 percent, of UAE sales in the first half.
The development backlog stood at Dh39 billion, with Dh33.2 billion in the UAE, ensuring revenue recognition over the next two to three years. Aldar plans to continue backlog realization and launch new projects, supported by strategic land bank replenishment. The developer intends 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.
Aldar will also strategically partner with DP World to develop a logistics park in Dubai, part of a Dh1 billion investment commitment towards logistics assets.
